Future ready
innovating,
growing,
refreshing.
Coca-Cola HBC
Integrated Annual Report 2024
Reporting on a purposeful year
Please click here to view our
Integrated annual report online:
www.coca-colahellenic.com/en/
investor-relations/2024-integrated-
annual-report
Welcome to our 2024 Integrated Annual Report. Here, we share progress
on a year in which we embedded our purpose, Open up moments that
refresh us all, and delivered another year of strong financial results while
continuing to be leaders in sustainability. We are focused on innovating,
growing, refreshing and developing, ready to embrace the opportunities
and challenges that lie ahead.
We have restructured this year’s annual report, to provide a more concise communication of key
performance and strategic highlights. We have also added a new Sustainability Statement on pages 41
to 172 to align with the Corporate Sustainability Reporting Directive (CSRD) requirements. This ensures
greater transparency and compliance regarding our sustainability initiatives and performance.
Volume
2,914.5
million unit cases
2023: 2,835.5 million unit cases
Comparable EBIT1
€1,192.1m
2023: €1,083.8m
Profit before tax
€1,128.0m
2023: €910.3m
Comparable EPS1
€2.275
2023: €2.078
Free cash flow
€712.6m
2023: €711.8m
Net sales revenue
€10,754.4m
2023: €10,184.0m
Comparable EBIT1 margin
11.1%
2023: 10.6%
Net profit2
€820.6m
2023: €636.5m
Primary packaging collected
for recycling (equivalent)3
58%
2023: 56%
Energy-efficient coolers3
60%
2023: 55%
1. For details of APMs, refer to ‘Definitions and reconciliations of alternative performance measures (APMs)’ on
pages 345 to 351
2. Refers to net profit after tax attributable to owners of the parent
3. Excluding Egypt
Strategic Report
2024 highlights
IC
Chair’s letter
1
Business overview
2
Market trends
4
Business model
6
Chief Executive Officer’s letter
8
Stakeholder engagement
10
Chief Operating Officer’s letter
12
Segment operational highlights
13
Growth pillar 1:
Leverage our unique
24/7 portfolio
14
Growth pillar 2:
Win in the marketplace
16
Growth pillar 3:
Fuel growth through
competitiveness
and investment
18
Growth pillar 4:
Cultivate the potential
of our people
20
Growth pillar 5:
Earn our licence to operate
24
Tracking our progress
30
Chief Financial Officer’s letter
35
Double materiality assessment
(DMA)
37
Sustainability Statement
41
EU Taxonomy
75
Task Force on Climate-related
Financial Disclosures (TCFD)
173
Non-Financial Reporting under
Swiss statutory law
174
SASB index
175
Business Resilience
178
Principal risks and
opportunities
181
Viability statement
190
Corporate Governance
Corporate Governance Report
191
Letter from the Chair
of the Board
192
Directors’ remuneration report 222
Statement of Directors’
responsibilities
248
Financial Statements
Independent auditor’s limited
assurance report on Coca-Cola HBC
AG’s Sustainability Statement
249
Independent auditor’s report
to the General Meeting of
Coca-Cola HBC AG
251
Consolidated financial
statements
259
Notes to the consolidated
financial statements
263
Swiss Statutory Reporting
Report on the audit of the consolidated
financial statements
318
Report on the audit of the financial
statements
322
Swiss statutory reporting
324
Report of the statutory auditor to the
General Meeting on the statutory
remuneration report 2024
334
Statutory Remuneration Report 335
Supplementary Information
Alternative performance
measures
345
Independent Auditor’s Limited
Assurance Report
352
Shareholder information
357
Glossary of terms
358
Forward-looking statements
361
2024 highlights
Coca-Cola HBC Integrated Annual Report 2024
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Chair’s letter
Leadership for long‑term success
Another successful year
I’m pleased that 2024 was another successful
year, with Zoran and the Executive Leadership
Team (ELT) delivering continued strong financial
performance as well as making ongoing strategic
progress and maintaining our leadership in
sustainability. Despite a mixed macro-economic
environment across our markets, we remain on
track to meet the medium-term targets we set
out at our Investor Day in 2023. Our Growth
Story continues to drive revenue growth,
margin improvements and sustained strong
cash generation.
I would like to thank our people for their
commitment and dedication in delivering
these results despite sometimes challenging
circumstances. This year was marked by some
increased consumer sensitivity to pricing as well
as continued inflation in some markets. We also
faced flooding in parts of Eastern Europe and
Nigeria. I would like to take this opportunity to
thank the Board for its counsel and guidance
in 2024, and especially for supporting the ELT
and me.
Leading with purpose and responsibility
Our unique culture, heritage and values are a
fundamental part of delivering sustainable value
to all stakeholders. Monitoring and assessing the
Company’s culture, and its ongoing evolution,
continues to be a Board priority. It was wonderful
to see our culture in action at the company’s most
recent Leadership Conference in Prague, with
several inspiring breakout sessions presented
by colleagues.
Our refreshed purpose, which was formally
launched in 2023, continues to be successfully
embedded throughout the organisation. It has
been a privilege to see colleagues thrive and
grow as they have embraced this purpose.
Our considered, sustainable growth
strategy has laid strong foundations
and enabled us to be future ready.
Together, we have faced uncertainties
and made bold, ambitious choices,
opening up moments that refresh
us all – our people, our customers,
our partners, our shareholders and
our wider stakeholders.”
The Board continues to be proactive in
representing the interests of stakeholders on
a diverse range of issues. In 2024, it focused
on overseeing overall strategic execution,
the progress of the sustainability agenda,
the Finlandia Vodka integration and reviewing
key insights on employee engagement.
Protecting our people and communities
We are cognisant of the ongoing situation in
Ukraine. First and foremost, we have focused
on protecting our employees and ensuring,
as far as possible, their health and safety.
The Coca-Cola HBC Foundation is dedicated to
supporting the communities where we operate.
This year, the Foundation approved grants for
flood relief efforts in Nigeria, Greece, Romania,
Poland, Hungary and Bosnia & Herzegovina.
Corporate Governance Report on p.198
Dividend growth and capital returns
For 2024, the Board is proposing a dividend of
€1.03 per share, an 11% increase on the dividend
per share versus the prior year and is continuing
its commitment to a progressive dividend. The
dividend represents a 45% payout ratio, within
our targeted range of 40% to 50% of comparable
earnings per share. Our progressive dividend
is testament to our confidence in the strong
fundamentals of the Company, as well as our
commitment to shareholders.
The Group’s capital allocation framework follows
clear priorities: organic investment in the business
to drive delivery of our medium-term financial
targets; payment of a progressive dividend;
strategic M&A; and additional capital returns.
In 2023, the Board approved a share buyback
programme and by the end of 2024, €226 million
had been returned to shareholders. The share
buyback programme has been a compelling
opportunity to enhance shareholder value,
while continuing to invest in the business.
Looking ahead
We continue to face uncertain markets, but as I
look ahead to 2025 and beyond, I have great
optimism, knowing we have built strong
foundations through thoughtful investment,
an adaptable culture and continued sustainability
leadership. I am confident we are future ready.
We will continue to make courageous choices
and live our purpose: Open up moments that
refresh us all – our people, customers, partners
and wider stakeholders.
Anastassis G. David
Chair of the Board
Section 172
Section 172 of the UK Companies Act 2006
requires directors to promote the success of
their company for the benefit of the members
as a whole, having regard to the interests of
stakeholders in their decision making. Engaging
with stakeholders is an indispensable part of
how Coca-Cola HBC does business. The Board
considers the interests of the our employees
and other stakeholders in its decision making as
a matter of good governance, and understands
the importance, and value, of taking into account
their views, as well as considering the impact
of our activities on the community, environment
and the Group’s reputation. The Board also
considers what is most likely to promote
the success of the Coca-Cola HBC for
its shareholders in the long term. Although
Coca-Cola HBC is Swiss incorporated and,
as such, the UK Companies Act 2006 has no
legal effect, this approach is in accordance with
the UK Corporate Governance Code 2018.
How we ensure business resilience and manage
double materiality
Read more on p.37 and 178
How we engage with key stakeholders
Read more on p.200
Coca-Cola HBC Integrated Annual Report 2024
1
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
We are a growth-focused consumer packaged goods business and strategic
bottling partner of The Coca-Cola Company. Our 24/7 portfolio is one of the
strongest and broadest in the beverage industry, with products that cater
to a growing range of tastes, with a wide choice of healthier options.
Our portfolio addresses both affordability and premiumisation, combined with sustainable packaging,
enabling us to open up moments that refresh our consumers 24/7. Our performance is underpinned
by investment in our bespoke capabilities, delivered by exceptional people.
Share of Coca-Cola HBC
Group FY2024 revenue
Our portfolio includes some of the world’s best-known beverages
We produce and sell an unparalleled portfolio of beverage brands relevant to every customer, consumer
and occasion. Our route to market includes a wide range of consumer channels – from supermarkets,
convenience stores and vending machines to Hotels, Restaurants and Cafés (HoReCa) – and
encompasses more customers than any competitor. Customer centricity is critical for our business,
and we are devoted to helping our customers grow their businesses, which in turn grows ours.
Our 24/7 portfolio has considerable growth potential, driven by our strategic priority categories,
Sparkling, Energy and Coffee, supported by locally relevant portfolios in Stills (Tea, Juices, Hydration),
Premium Spirits and Snacks.
Our journey
Our roots date back to 1951 when A.G. Leventis founded the Nigerian
Bottling Company in Lagos. Since then, the business has expanded,
now covering a wide territory from Armenia to Austria, Egypt to
Estonia, and Serbia to Switzerland, giving us a unique geographic
footprint across Western, Central and Eastern Europe, and Africa.
We now serve 750 million consumers across 29 countries and have
proven routes to market and leading market positions.
A responsible business
Sustainability is embedded in every aspect of our business as we
look to create and share value with all our stakeholders. We make
a strong contribution to developing the communities in which
we operate through employment and our wider supply chain,
as well as through supporting community projects. Our progress
is recognised by the most important ESG benchmarks.
Business overview
The leading 24/7 beverage partner
29
countries
750m
consumers
33,000
employees
Established
markets
Developing
markets
Emerging
markets
33%
of Group revenue
22%
of Group revenue
45%
of Group revenue
11.1%
Comparable
EBIT margin
9.5%
Comparable
EBIT margin
11.8%
Comparable
EBIT margin
Snacks
c. 1%
Premium Spirits
c. 4%
Tea
c. 2%
Juice
c. 8%
Coffee
c. 1%
Sparkling
c. 70%
Energy
c. 8%
Hydration
c. 7%
Coca-Cola HBC Integrated Annual Report 2024
2
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Financial Statements
Corporate Governance
Strategic Report
Read more on p.14 to 34
Business overview continued
We are well positioned for sustainable and profitable growth
Leader in the growing
non-alcoholic
ready-to-drink category
We are a leader in the growing
and dynamic non-alcoholic
ready-to-drink (NARTD) category.
The CAGR of NARTD value
between 2024 and 2028 is
expected to be 4% to 6%1.
We are number one in the
sparkling category in 20 out
of our 21 measured markets. We
also have opportunities in other
high-potential categories, to
continue to drive our growth.
A clear vision,
strategy and targets
The beverage category continues
to expand, and we see strong
growth opportunities within our
evolving brand portfolio and the
markets in which we operate.
Our growth strategy reflects
our vision to be the leading 24/7
beverage partner and deliver
best-in-class financial returns.
It is built on five key pillars
of growth, each of which
is a core strength or
competitive advantage.
We invest to drive growth,
with a relentless focus
on cost and efficiency
We continue to invest
to enable our growth
opportunities, including
in production capacity,
energy-efficient coolers,
ongoing automation in our
supply chain as well as digital
and data solutions.
We have a strong track record
of driving cost efficiencies, and
this remains an important part
of our strategy.
A diverse, balanced
country portfolio
with strong exposure
to attractive
growth markets
Our geographic footprint
creates a diverse balance.
We have exposure to fast-
growing Emerging and
Developing markets as
well as a strong foundation
in Established markets.
We also benefit from the
portfolio effect of exposure
to different economic cycles,
and we are proven operators
in managing risk in a variety
of socio-economic conditions.
The strongest,
broadest portfolio
of brands, anchored
around an exceptional
partnership with The
Coca-Cola Company
We have high-growth
opportunities across
high-value occasions and
categories. Our flexible portfolio
caters to a growing range of
tastes and preferences, with a
wider choice of both affordable
and premium products, and a
wide range of healthier options.
Our portfolio has evolved with
the proliferation of low- and
no-sugar variants, single-serve
packs and broader innovation
in flavours.
+4-6%
NARTD value
CAGR 2024-2028
+16 markets
Monster Energy Green Zero
Sugar launched in 2024
+13.8%
FY2024 organic NSR growth 18.3% ROIC
FY2024
+12.2%
FY2024 organic
EBIT growth
A clear strategy
frames our actions,
with five growth
pillars underpinning
our decision making
and focus.
1. Source: internal system projections excluding Russia and Ukraine
Leverage
our unique
24/7 portfolio
1
Win in the
marketplace
2
Fuel growth
through
competitiveness
and investment
3
Cultivate the
potential of
our people
4
Earn our
licence
to operate
5
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Market trends
Trends
In 2024, our categories grew, driven by both volume and
revenue per unit case. In Europe, category volume improved
compared to 2023, with different dynamics in each market,
while revenue per unit case growth was lower compared to
2023, reflecting a de-escalation of inflation.
The sparkling category grew overall, and Sports drinks saw
good growth as the best performing category within NARTD.
In Africa, category volume continued to be volatile, coupled
with high revenue per unit case growth following inflationary
pressure. The impact of private label in our categories
remained modest.
How we are responding
We sustained our focus on improving our single-serve mix and
continued driving the shift from multi-serve packs to single-
serve packs across all markets, and in both the At-home and
Out-of-home channels.
We continued to invest in our bespoke capabilities, particularly
on embedding digital tools and our data insights & analytics
capability to ensure we provided retail customers with relevant
insights to maximise their value-added. This contributed to an
improved Net Promoter Score, further improvements to pack
mix, and value and volume share gains in key channels and
most major markets.
Growth pillars
1
Leverage our unique 24/7 portfolio
2
Win in the marketplace
+100bps
We improved single-serve mix by 100bps across
the Group in 2024
Trends
Consumer confidence remains low as high living costs pressure
disposable incomes. Consumers have shown sensitivity to
price increases, adopting price-driven shopping, downtrading
and budgeting behaviours.
NARTD and the sparkling category have continued to gain
traction, being perceived as affordable treats. Despite ongoing
budget constraints, opportunities continue to exist for
premiumisation, as shoppers prioritise quality and indulge
in small treats, considering healthy and sustainable options
as worth paying for.
How we are responding
We continued adapting our portfolio to deliver both affordable
offerings as well as premium products presented in appropriate
pack sizes and combinations, as well as promotions, to
capitalise on the summer with music and sport, offering
consumers attractive choice.
To support category growth, we have focused on a wider
range of single-serve offerings and multipacks of single
serves, as well as affordable multi-serve options. This allows
us to compete effectively at attractive price points for the
consumer and to penetrate smaller baskets in a more
effective way.
Growth pillars
1
Leverage our unique 24/7 portfolio
2
Win in the marketplace
+150bps
We gained or maintained share in the majority
of our markets in NARTD, gaining 150bps of value
share in NARTD
Retail
Consumer
While there are significant geopolitical and
economic trends that can influence overall market
growth, we focus on the following five areas: retail,
consumer, digital, sustainability and regulatory.
These areas are where we react dynamically and
create long-term value for our customers,
consumers and shareholders.
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Market trends continued
Trends
The sustainability landscape was impacted by significant
political shifts and regulatory changes in 2024 and we saw
companies retreating on ESG goals. The rise of mandatory
sustainability reporting required considerable resources
and time from companies.
2024 saw extreme weather events and was the warmest1
year on record, which presents a critical need for companies,
governments and individuals alike to take steps on climate,
environmental and societal actions as never before.
How we are responding
We are on track to deliver our 2025 sustainability targets and
making good progress towards our long-term goal of achieving
NetZeroby40. We cannot solve the global challenges alone, but
through collaboration and collective actions, innovation and
investment, we can lead the implementation of much-needed
new business solutions. These new solutions create value for
us, our customers, our suppliers and our communities, opening
up a more sustainable future. We will continue to report our
progress transparently and in line with the best practices and
mandatory regulations.
Growth pillars
1
Leverage our unique 24/7 portfolio
2
Win in the marketplace
3
Fuel growth through competitiveness and investment
4
Cultivate the potential of our people
5
Earn our licence to operate
-18%
We have reduced absolute carbon emissions in all
three scopes by 18% in 2024 compared with 2017
1. Copernicus Climate Change Service/ European Centre for Medium-Range
Weather Forecasts
Trends
Policymakers keep considering measures to protect
public health, address budget deficits and counter inflation.
These include discriminatory taxes, price caps, and marketing
restrictions in specific product categories. The European Union
has adopted the Packaging and Packaging Waste Regulation
(PPWR), followed by discussion on the Green Claims Directive.
Several European countries have already implemented deposit
return schemes (DRS) and others are preparing to start them.
Leading health authorities maintained their focus on nutrition,
with no current proposed changes in safety approvals for
non-sugar sweeteners from food safety authorities.
How we are responding
We remain committed to working with regulators,
governments and industry partners to address emerging
trends. We are supporting the launch of DRS across more
European countries, with experience of this in several of our
markets already. In addition we continue to make progress
towards more sustainable packaging. We are expanding our
low- and no-sugar variants to meet consumer demands,
and we remain dedicated to providing transparent nutrition
information for our products, in line with local regulations,
to help consumers make informed decisions. Our Mission
2025 goals guide us as we actively support new EU Commission
priorities through industry associations.
Growth pillars
1
Leverage our unique 24/7 portfolio
2
Win in the marketplace
3
Fuel growth through competitiveness and investment
5
Earn our licence to operate
9 markets
DRS are now active in 9 of our markets, with two more
expected to launch in 2025
Trends
Consumers have become much more comfortable and familiar
with e-commerce. Convenience and ease-of-use of online
shopping have improved. Companies continue to invest in
digital tools to improve efficiency of operations, customer
service and the effectiveness of their marketing spend.
Artificial Intelligence (AI) has exploded in 2024, with companies
embracing AI tools within their day-to-day operations.
How we are responding
We continue to invest in building and upskilling our
talented in-house teams, as well as working with leading
technology partners.
We remain focused on developing our leading data, insights and
analytics (DIA) capabilities which leverages statistics, machine
learning and AI to turn data into actionable insights and a
customised product and service offering to each outlet.
Growth pillars
1
Leverage our unique 24/7 portfolio
2
Win in the marketplace
3
Fuel growth through competitiveness and investment
11.5%
Customer orders made through our e-business-to-
business platform, Customer Portal, up from 10% in 2023
Sustainability
Regulatory
Digital
Coca-Cola HBC Integrated Annual Report 2024
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Financial Statements
Corporate Governance
Strategic Report
Business model
Delivering value for our stakeholders
1
3
4
2
How we do it
What we do
Partnering with our customers
We grow by supporting our customers’ growth,
leveraging our 24/7 portfolio, focusing on areas of
high-value opportunity and executing with excellence.
Producing
beverages
efficiently and
sustainably
Using concentrate
from The Coca-Cola
Company along with
other ingredients,
we prepare, package
and deliver products
with an optimised
manufacturing
infrastructure and
logistics network.
Serving our
consumers and
communities
Our 24/7 product
portfolio caters to
a range of tastes and
preferences and we
continually innovate
to lead the sector.
Working with suppliers
We work with our suppliers to procure high-quality
ingredients, sustainably sourced raw materials, and
equipment and services required to produce beverages.
Human
Our success is dependent on the passion and
customer focus of our talented people – our secret
ingredient. We empower them to pursue growth
opportunities, both for themselves and our Company.
Natural
To create our products, we use natural resources
including water, agricultural ingredients and paper.
We source these using sustainable practices and
seek to use them efficiently.
Social and relationships
Maintaining the trust of stakeholders is essential to
our business. Our most valuable human connections
and relationships are with The Coca‑Cola Company,
our people and the communities we operate in, and our
customers, suppliers, governments and regulators.
Financial
Our business activities require financial capital, which
we allocate efficiently. This capital is provided by our
equity and debt holders, as well as cash flow earned
from our operations.
Intellectual
Innovation is embedded in our culture. The intellectual
property from innovation includes new packaging
know-how, new products, and improvements in
manufacturing, logistics and sales execution.
Manufacturing
Investing in our plant and logistics assets allows us
to efficiently prepare, package and deliver our products
to meet the needs of customers and consumers.
We are a strategic bottling partner of
The Coca-Cola Company (TCCC)
We have rights from TCCC in the Coca-Cola HBC
markets where the Group produces, sells and distributes
TCCC’s trademarked beverages. We also partner with
other beverage businesses such as Monster Energy,
Brown-Forman and Edrington to sell their products
in our markets.
How our partnership works
TCCC owns and develops its brands while we are
responsible for producing, distributing and selling these
beverages, using concentrate we buy from TCCC under
an incidence-based pricing model. We work together
to ensure we have the right portfolio for our customers
and consumers in each market and to ensure excellent,
efficient execution. We also share marketing costs and
responsibilities: TCCC markets to consumers, while we
take responsibility for trade marketing to our customers.
Our capital resources
Coca-Cola HBC Integrated Annual Report 2024
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Corporate Governance
Strategic Report
Business model continued
• In 2024 we employed 33,018 FTEs, as we operate in
29 countries
• Median basic salary ratio women/men: 1.37
• We increased the frequency of our customer
engagement, providing customers with better support
• In the marketplace, we achieved a total number of 60%1
energy-efficient coolers
• In 2024, we trained 174,902 young people1 through our
#YouthEmpowered programme to boost employability
• We invested €8.4 million in local community initiatives
• We delivered strong financial performance in 2024, with
organic revenue up 13.8% and reported revenue up 5.6%.
In recognition of our business strength and future
opportunities, the Board proposed a dividend of €1.03 per
share, an 11% increase compared with last year
• Our business activities generate revenue for our suppliers
and contractors and their extended value chain
• We provide high-quality beverages and healthy options,
reducing calories per 100ml of sparkling soft drinks by
18% in 2024 compared to our 2015 baseline
• We spent €7.14 billion2 with suppliers and contractors
• We are working with our suppliers to support their
sustainable practices and emissions reduction plans
We believe that the only way
to create long-term value for
all our stakeholders is through
sustainable growth.
We create socio-economic
value for the societies in which
we operate by creating jobs,
training people, building physical
infrastructure, procuring raw
materials, transferring
technology, paying taxes,
expanding access to products
and services, and creating
growth opportunities for
our customers, distributors,
retailers and suppliers.
Measuring and managing
these contributions through
the sustainable growth of our
business is an important part
of our purpose. Since 2010 we
have conducted socioeconomic
impact studies in our markets
to better understand the range
and extent of the value we
create in our ecosystem.
659,000
training hours
for our people
€1,297.4m
total employee
costs
43.5%
women in
managerial
positions
1.8m
customers
served
1 job ->
13 jobs
1 job in our
system supports
13 in the
community
501,982
indirect jobs
across the
value chain
1,119,850
cumulative
2017-2024
number of young
people trained in
our communities
€679.3m
Capex spend
Comparable EPS grew by 9.5%
to €2.28, supported by strong
EBIT delivery
€5.3b
paid in taxes across
our value chain
€14.4b
supported in added
value across our
value chain
750m potential
consumers refreshed
over 14,000
suppliers operating
across our value chain
€7.14b
spent with suppliers,
of which 97.7% were local2
Value created
Our impact
Socio-economic contribution
To read the methodology
behind our socio-economic
impact numbers
Read more on p.360
Our investors
Our consumers
Our suppliers
Our customers
Our people
Our wider stakeholders
Our communities
1. Excluding Egypt
2. EU countries supplies are considered local for CCHBC EU based BUs.
Coca-Cola HBC Integrated Annual Report 2024
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Strategic Report
Chief Executive Officer’s letter
Opening up moments together
Seizing the opportunities ahead
2024 has been another extraordinary year.
The external environment continued to be
challenging across our markets. Along with
others in our industry, we navigated normalised
inflation in Europe and high inflation in Nigeria
and Egypt, as well as geopolitical tensions,
a dynamic macroeconomic backdrop and
some uncertainty in the consumer environment.
In true Hellenic spirit, we reflect and learn from
these challenges so we are prepared and can
take bolder decisions to drive growth and win
in the market… in every challenge we search
for the opportunity.
The consistent strategic choices we have made,
along with our bespoke capabilities, put us in a
strong position to go after many opportunities.
We have solid foundations, ambitious plans and
hardworking, cohesive, resilient teams who are
equipped and ready to adapt as needed. All of this
is underpinned by our vision of being the leading
24/7 beverage partner and by our commitment
to be the first-choice partner for our customers.
The importance of our teams
It has been over a year since we launched our
renewed purpose: to open up moments that
refresh us all, which has been very well embraced
with positivity by our teams across our business
units. Along with our vision and values, our
purpose serves as the anchor for each of us
every day, to continuously grow and succeed.
Our strong employee engagement results this
year are a testament to the strong culture we are
embedding and maintaining across our business.
I would like to thank all our colleagues for their
extraordinary efforts over the past year, as well as
The Coca-Cola Company (TCCC), our customers
and our partners for their valued partnership and
trust, which continues to push us to go the extra
mile. Together, we are creating value for all that
we serve.
Strong partnerships, a 24/7 portfolio
and unrivalled market execution
With our valued partners, including TCCC,
Monster, other brand partners, and our
customers and suppliers, we are developing
impactful promotional activation plans and
best-in-class market execution, with a clear
focus on building the future together.
We continue building and strengthening our
24/7 portfolio, which is suited to offer consumers
a variety of brands and products for all drinking
moments throughout the whole 24 hours.
Sparkling, Energy and Coffee continue to be
our strategic priority categories within our 24/7
portfolio. Sparkling is the most important driver
of our growth. Working closely with TCCC, we
have developed targeted marketing campaigns
and activations for world-leading events including
Euro 2024 and the Olympic Games. Coca-Cola
has continued to drive our volume growth over
the last several years. Adult Sparkling has been
a positive contributor to volume and revenue-per-
case expansion, and we have benefitted from
innovations in Schweppes and Kinley, as well as
the launch of Three Cents into more markets.
Our energy category continued to grow in 2024,
with increases in share and volume. This year was
the ninth consecutive year of strong double-digit
volume growth. During the year, we introduced
Monster Energy Green Zero Sugar to open up
new opportunities for incremental expansion
within the category through a no-sugar option.
Our multi-brand portfolio in Energy provides
a targeted offering to different markets,
demographics and affordability needs.
Our coffee portfolio also delivered strong results.
Caffè Vergnano has expanded across our markets
in premium Hotel, Restaurant and Café (HoReCa)
outlets, while Costa has seen impressive growth
in our focus area of the Out-of-home channel.
Among several other consumer relevant
categories like Tea, Water and Juices I would single
out the very inspiring and growing opportunity
with the sports drink category where we have
been achieving excellent results with Powerade.
Following our acquisition of Finlandia Vodka in
2023, I’m pleased with its smooth integration into
our business and the expansion of distribution into
our markets. I look forward to seeing exciting plans
come to life that will elevate Finlandia in 2025 and
beyond. We continue our strong partnership with
Premium Spirits brand owners, including Brown-
Forman, Edrington and Bacardi.
Investing for growth
In 2024, we made further significant progress
in our digital transformation journey. We continue
to invest in data, insights, analytics and advanced
digital tools so we can better support our
customers in driving joint growth and
identifying new opportunities.
We have also started establishing a new Digital
Hub in Cairo to complement our Digital Hubs in
Sofia and Athens, empowering our teams across
the whole company with more in-house resources
and digital tools to fuel innovation. The new Digital
Hub will create roles in critical areas such as data
engineering, AI engineering and data visualisation
by the end of 2026.
Our industry-leading, comprehensive learning
curriculum supports and upskills our teams to
be best-in-class, and to be able to adapt and thrive
in fast-changing environments. Our prioritised
capabilities differentiate us in the eyes of our
customers across all channels. Our bespoke
programmes, such as the Sales Academy, Data,
Insights & Analytics Academy and Supply Chain
Academy are equipping our teams to be the best
in the industry.
We continue to prioritise a Make It Simple
mindset, with each of us playing a conscious
role in simplifying all that we do. Since 2023,
our efforts have released more than one million
hours of employee time, boosting employee
engagement, proactive collaboration and
customer satisfaction.
In 2024, we achieved another strong
year of growth in a range of market
conditions, while continuing to evolve
our culture across our markets. Our
passionate teams executed with
excellence, further strengthening
relationships with our partners
and creating joint value with our
customers. We look forward to
opening up more opportunities
for growth for all we serve in 2025.”
Coca-Cola HBC Integrated Annual Report 2024
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Chief Executive Officer’s letter continued
Sustainability remains a core focus
This year, we were ranked – for the eighth time –
as the world’s most sustainable beverage company
in the Dow Jones Best-in-Class Indices. Retaining
our leadership position is a real achievement and
comes from our clear and ambitious sustainability
strategy and our consistent approach to
investment, innovation and partnerships.
We feel proud to be leaders in sustainability and
are on target to meet our objective of achieving
net zero by 2040. 2025 will be the final year of our
Mission 2025 goals and we have already reached
9 out of our 18 targets, ahead of the target year.
For the fourth consecutive year, we are reducing
our absolute greenhouse gas emissions (scope 1, 2
and 3) and performing in line with our NetZeroby40
roadmap, while growing our business.
Packaging circularity remains a critical priority.
Our first Coca-Cola System-owned and operated
packaging collection hub in Nigeria which we
Linking our vision, purpose,
growth pillars and targets
We have five strategic growth pillars
1
Leverage our unique
24/7 portfolio
2
Win in the
marketplace
3
Fuel growth through
competitiveness and investment
4
Cultivate the potential
of our people
5
Earn our licence
to operate
Read more about our growth pillars on
p.14 to 29
Our targets and how we measure our
progress (KPIs)
Financial
Our medium-term targets include organic
revenue growth of 6% to 7% per year on
average and 20-40bps of organic comparable
EBIT margin expansion per year on average.
Sustainability
Our sustainability targets include Mission 2025
and NetZeroby40.
Please see Tracking our progress for details.
Tracking our progress p.30 to 34
Our strategy and targets link directly to
executive remuneration.
Please see our Directors’ remuneration report
for details.
Read more on p.222
launched at the beginning of 2025 is a great
example: we see empty bottles as a valuable
resource that can be given another life, help to
decrease our costs, and achieve our collection
targets. Nine of our markets have Deposit Return
Schemes (DRS) with the most recent schemes
launched in Romania, Hungary, Ireland and Austria.
Early results are encouraging – for example, in
Romania, the average return rate reached 77%
of containers sold in the market in the last three
months of 2024.
The communities where we operate have
always been important to us. We exceeded our
#YouthEmpowered target of training one million
young people in 2024 – a year early. The Coca-Cola
HBC Foundation made donations to flood-relief
initiatives: rebuilding houses and community
centres; providing food and emergency supplies;
and replacing damaged medical equipment in
hospitals in Greece, Nigeria, Poland, Romania,
Hungary and Bosnia & Herzegovina.
Strong financial performance
I am proud that we have delivered yet another year
of double-digit growth, with a 13.8% increase in
organic revenues. Growth was high quality, with
volume expansion in each of our segments and
across our three strategic priority categories, and
with continued share gains. This growth is driving
real benefits for our customers. In 2024, we were
once again the number one contributor to retail
customers’ absolute revenue growth within
fast-moving consumer goods (FMCG) in Europe,
according to Nielsen.
The resilience of our business is supported by
the diversity and growth potential of the market
we operate in. In 2024, we navigated a range
of macroeconomic conditions to achieve
an expansion in organic EBIT of 12.2% and
a 9.5% improvement in Comparable EPS.
Throughout the year, we continued to invest in
developing our 24/7 portfolio, our markets and our
capabilities, all in service of our vision to be the leading
24/7 beverage partner. These investments are also
generating strong returns and, in 2024, our ROIC
expanded by 190bps to 18.3%, testament to the
value we are creating for investors.
Looking ahead
We have a culture where the growth mindset of our
people is the driving force of our development and
progress. We have built our resilience and agility to
make sure we are able to overcome challenges and
grow. Our sustainability strategy is central to those
efforts, as we believe that achieving strong results
goes hand in hand with doing that in a good way.
Our valued partnerships, our unrivalled 24/7
portfolio, our bespoke capabilities and, of course,
our passionate and committed team, are key
components in our success. At the same time, we
continue to listen to our customers and consumers,
to understand and respond to their needs and
market trends. I am excited by the abundance
of opportunities that we have in our industry.
Together, as One Team, I look forward to
continuing to shape the future and create shared
value; acting on our purpose to open up moments
that refresh us all.
Zoran Bogdanovic
Chief Executive Officer
Nigeria’s first-ever
Coca-Cola System-owned
and operated packaging
collection hub
Our Purpose
Open up moments that refresh us all
Our Vision
The leading 24/7 beverage partner
Our Values
• Customer first
• We over I
• Make it simple
• Deliver sustainably
Coca-Cola HBC Integrated Annual Report 2024
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Stakeholder engagement
Material issues and topics of interest
• E1 – Climate change mitigation
• E3 – Water consumption
• S3 – Water and sanitation
• E5 – Resource outflows related to products
and services
• S3 – Training and skills development
• S3 – #YouthEmpowered
Growth pillars
3 5
Key challenges
• Climate change
• Waste from our packaging
• Water conservation
• Empowering young people and women
How we engage
• We engage with customers and partners
to understand what skills and training young
adults need in specific markets
• Via our #YouthEmpowered sessions, we
increase the employability of young people
• We participate actively to support the set-
up and implementation of new packaging
collection schemes
• Addressing water challenges in water
priority locations
Outcomes of engagement
• Our support of new collection schemes is
translating into increased collection rates
for packaging waste in many markets
• We have committed to NetZeroby40 across
the entire value chain
• Water stewardship community projects in
water priority locations
Relevant KPIs
• Number of young people trained in our
communities through #YouthEmpowered
• Percentage of absolute emissions reduction
• Number of water stewardship projects in water
priority locations
• Percentage of primary packaging collected
• Number of volunteering hours
• Number of, and investments in,
community projects
Principal risks
• Geopolitical and security environment
• Cost and availability of sustainable packaging
• Managing our carbon footprint
• The impact of climate change on the cost
and availability of water
• Suppliers and sustainable sourcing
Material issues and topics of interest
• E5 – Resource outflows related to products
and services
• S4 – Consumers’ health and safety
• S4 – Responsible marketing practices
Growth pillars
1 5
Key challenges
• Ensuring product safety and supply
• Continuously evolving our products to meet
consumers’ needs for healthy hydration, quality,
taste, innovation and convenience
How we engage
• Together with TCCC, we understand consumers’
needs and preferences through our access to
consumer insights
• Consumers also provide feedback on social
media and via consumer hotlines
Outcomes of engagement
• We continued to evolve our portfolio to address
changing consumer occasions and invested
further in digital and e-commerce to meet
new shopper needs
Relevant KPIs
• Percentage reduction of calories per 100ml
Sparkling Soft Drinks (SSD) vs 2015
• Number of consumer complaints
Principal risks
• Product quality and food safety
• Omni-channel evolution
• Product category acceptability
• Business interruption
Material issues and topics of interest
• E1 – Climate change mitigation
• E5 – Resource outflows related to products and
services
• S3 – Training and skills development
Growth pillars
1 2
Key challenges
• Opportunities for growth and value creation
• Offering a 24/7 beverage portfolio that meets
the changing preferences of consumers
and customers
• Managing supply and delivery challenges
How we engage
• Key account managers engage with our
customers at a strategic level
• Our Business Developers visit outlets with
digital tools and insights to add value
• Partnering to reduce food loss and waste
• Introducing new packaging types and supporting
packaging collection
Outcomes of engagement
• We increased direct engagement via our
customer teams and via customer surveys
• Programmes to reduce food loss and waste
Relevant KPIs
• Volume and organic revenue growth
• Customer feedback from surveys
• Cooler coverage of high-potential outlets
Principal risks
• Omni-channel evolution
• Product quality and food safety
• Business interruption
Material issues and topics of interest
• S1 – Health and safety
• S1 – Secure employment
• S1 – Training and skills development
• S1 – Adequate wages
• S1 – Gender equality and equal pay
for work of equal value
• S1 – Diversity
Growth pillars
4 5
Key challenges
• Building the best teams in the industry
• Engagement as hybrid working continues
• Mental wellbeing
• Protecting our people in a more volatile
security environment
How we engage
• Focused and continuous conversations,
plus regular employee surveys to understand
and act on needs and wellbeing
• Employee Assistance Programme
• Offering personalised experiences
and opportunities for personal and
professional growth
• Ongoing dialogue with employee
representative bodies
Outcomes of engagement
• Maintaining high engagement levels
• Higher levels of engagement were reported
as we focused on simplification, collaboration
and retention
Relevant KPIs
• Employee engagement score
• Percentage of managers who are women
• Lost Time Accident Rate per 100 FTE
Principal risks
• Health and safety
• People attraction and retention
• Geopolitical and security environment
Our people
Our customers
Our consumers
Our communities
1 Leverage our unique
24/7 portfolio
2 Win in the marketplace
3 Fuel growth through
competitiveness and investment
4 Cultivate the potential
of our people
5 Earn our licence to operate
This year we are reporting under the CSRD for the first time, using the European Sustainability Reporting
Standard (ESRS) framework and methodology. Our material issues and topic of interest are now
categorised under the ESRS, for example, ESRS E1, ESRS S1 and ESRS S2 etc. Please see Annex 1 of the
Commission Delegated Regulation (EU) 2023/2772 for the full set of reporting standards.
Coca-Cola HBC Integrated Annual Report 2024
10
Strategic Report
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Stakeholder engagement continued
Material issues and topics of
interest
• E1 – Climate change mitigation
• E3 – Water consumption
• E5 – Resource inflows,
including resources
• E5 – Resource outflows related
to products and services
• S3 – Water and sanitation
• S4 – Consumers’ health and safety
Growth pillars
3 5
Key challenges
• Industry and/or product specific
policies, such as taxes, restrictions
or regulations
• Environmental policies
How we engage
• Much of our engagement with
governments is conducted at an
industry level through trade associations
• We partner with local governments to
tackle waste collection challenges and
water availability
Outcomes of engagement
• In response to regulations and levies
on certain types of plastic packaging,
we have lightweighted packages and
used more sustainable materials
• To address health and nutrition
concerns, we continue to add low-
or no-sugar drink options in every
market and provide transparent
nutritional information
Relevant KPIs
• Percentage of absolute
emissions reduction
• Percentage reduction of calories
per 100ml SSD vs 2015
• Percentage of primary
packaging collected
• Number of water stewardship
projects in water priority locations
Principal risks
• Product-related taxes and
regulatory changes
• Ethics and compliance
• Product quality and food safety
• Marketplace economic conditions
Material issues and topics of
interest
• E1 – Climate change mitigation
• E3 – Water consumption
• E4 – Land-ecosystem use change
• E5 – Resource outflows related
to products and services
• S3 – Water and sanitation
• S3 – Training and skills development
• S3 – #YouthEmpowered
Growth pillars
5
Key challenges
• Climate change mitigation and
adaptation, move towards net zero
emissions and water and energy use
• Packaging waste
• Sustainable sourcing
• Partnerships with communities
and grassroots organisations
• Diversity and human rights
How we engage
• We include NGOs and community
partners in our leadership
development programmes, offering
online training for managing virtual
teams and leading in times of crisis
• We partner with specific NGOs
for targeted environmental and
social projects
• We engage through our annual
Group Stakeholder Forum and our
annual materiality assessment, as
well as through adhoc meetings
Outcomes of engagement
• Percentage of participants from NGOs
in our first-time manager programmes
• Increased number of community
projects for waste reduction, water
stewardship and carbon removal
Relevant KPIs
• Number of, and investments
in, community projects
Principal risks
• Cost and availability of
sustainable packaging
• Managing our carbon footprint
• Suppliers and sustainable sourcing
• The impact of climate change on
the cost and availability of water
• Ethics and compliance
Governments
NGOs
Material issues and topics of
interest
• E1 – Climate change mitigation
• E5 – Resource outflows related
to products and services
• S4 – Consumers’ health and safety
Growth pillars
1 2 3 5
Key challenges
• Increasing focus on ESG reporting,
such as CSRD
• Maintaining focus on long-term
potential of the Group while
navigating short-term volatility
How we engage
• Ongoing dialogue with
analysts and investors, including
communication of our financial
results, as well as during our AGMs
and investor roadshows.
• In 2024 we launched our first bitesize
investor event
Outcomes of engagement
• Consistent two-way dialogue
between the Company and
investors, ensuring both good
understanding of long-term
Company strategy in the markets
and that investor concerns, are
considered in decision making
Relevant KPIs
• Management access for investors
and analysts
• Fair and positive investor
perceptions of company
fundamentals and strategy
Principal risks
• Cost and availability of
sustainable packaging
• The impact of climate change on
the cost and availability of water
• Product-related taxes and
regulatory changes
• Foreign exchange fluctuations
• Managing our carbon footprint
• Geopolitical and security environment
• Suppliers and sustainable sourcing
Material issues and topics of
interest
• S4 – Consumers’ health and safety
• S4 – Responsible marketing practices
• S3 – Training and skills development
• S3 – Water and sanitation
• E5 – Resource inflows,
including resources
Growth pillars
1 2 4 5
Key challenges
• Support for consumers, customers
and communities
• Profitable growth opportunities
• Value share in our markets
• Sustainable sourcing
How we engage
• Day-to-day interaction as business
partners, joint projects, joint
business planning, functional groups
on strategic issues and ‘top-to-top’
senior management forums
Outcomes of engagement
• Our partnership added to the
strength and depth of our 24/7
portfolio
• Ongoing partnership within
sustainability, with a particular
example being the launch of the
first Coca-Cola System-owned and
operated packaging collection hub
in Nigeria
Relevant KPIs
• Revenue
• Value share
Principal risks
• Cost and availability of
sustainable packaging
• Suppliers and sustainable sourcing
• Product-related regulatory changes
and taxes
Material issues and topics of
interest
• E1 – Climate change mitigation
• E2 – Pollution of soil
• E3 – Water withdrawals
• E4 – Land-ecosystem use change
• E5 – Resource inflows,
including resources
• S2 – Training and skills development
• S2 – Secure employment
• S2 – Gender equality and equal pay
for work of equal value
Growth pillars
3 5
Key challenges
• Rising costs of ingredients, labour,
packaging materials, energy and water
• Minimising the environmental
impact of water, energy resources,
and emissions
• Traceability in the whole value chain,
including Tier 2 and 3 suppliers for
human rights risk and biodiversity
How we engage
• Feedback received through our
annual Group Stakeholder Forum
• Regular meetings with suppliers
• Regular, ongoing interaction with
the Coca-Cola System’s central
procurement group and our
technology and commodity suppliers
Outcomes of engagement
• Our long-term work with partners
to reduce our water and energy use
has also brought efficiencies. This
is particularly important given our
NetZeroby40 commitment
• Activities related to sustainable
sourcing and certifications
Relevant KPIs
• Percentage of key agricultural
ingredients sustainably certified
• Percentage of our suppliers adopting
our Supplier Guiding Principles
Principal risks
• Cost and availability of
sustainable packaging
• The impact of climate change on
the cost and availability of water
• Ethics and compliance
• Managing our carbon footprint
• Suppliers and sustainable sourcing
The Coca-Cola
Company
Our investors
Our suppliers
1 Leverage our unique
24/7 portfolio
2 Win in the marketplace
3 Fuel growth through
competitiveness and investment
4 Cultivate the potential
of our people
5 Earn our licence to operate
Coca-Cola HBC Integrated Annual Report 2024
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Strategic Report
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Chief Operating Officer’s letter
Growing across our markets through operational excellence and our bespoke capabilities
Playing to win
2024 has been a year marked by strong growth in
a competitive environment. We have focused on
both the ‘what’ and the ‘how’ to win in the market.
Our intentional choices and strategic initiatives
have positioned us well for continued success,
helping us create our own opportunities.
24/7 portfolio driving growth
Our 24/7 portfolio has continuously delivered
in a range of market conditions, and 2024 was
no exception. Growth was led by our three priority
categories – Sparkling, Energy and Coffee.
Sparkling remains the most important engine of
growth for our company, and we continued to gain
share and strengthen our leadership this year by
focusing on key occasions.
Energy performed well, with strong performances
from Monster, Predator, Fury and our premium
brand, Burn. We also saw growth in Coffee
volumes for Costa Coffee and Caffè Vergnano.
Bespoke capabilities as a key enabler
Our bespoke capabilities remain a differentiating
factor that sets us apart in the eyes of our
customers across all channels. These capabilities
are critical for us to better understand the real and
changing needs of our customers and consumers,
drive profitable revenue growth, and anticipate
or react to new challenges faster and smarter.
By accelerating our bespoke capabilities, we drive
our growth algorithm. It is one of the reasons
that we have delivered strong results, even
in challenging markets.
In 2024, we made significant progress in
revenue growth management (RGM), route
to market (RTM), digital commerce, customer
management, data, insights & analytics (DIA)
and talent development.
RGM continues to drive profitable growth through
smart affordability and premiumisation solutions.
We deployed various RGM initiatives throughout
the year to maximise opportunities, for example
focusing on premium glass bottles in HoReCa.
When it comes to focusing on affordability, we
were agile with promotions and launched relevant
affordable pack propositions across all our
markets. In Nigeria and Egypt, we saw strong
results from our returnable glass bottles (RGBs),
our key affordable pack in these markets.
Our omni-channel RTM further fuels our growth
journey, adapting to customer needs, with physical
and digital touchpoints.
In October, I had the privilege of participating in
our first bitesize investor event, showcasing our
DIA capabilities. This event highlighted how we
turn data into actionable insights, acting as a
connector and accelerator of our key capabilities.
Putting customers first
We are committed to putting our customers
first and our capabilities have allowed us to
serve them even more effectively through
a tailor-made approach.
We are pleased that our efforts have led to
positive Net Promoter Score results, which is
our customer value creation metric. We are
committed to closing the loop, with 24/7 support
available through our sales portal and a promise
to respond to customer queries within 48 hours.
In June, we were proud to hold our largest-ever
Market Impact Team (MIT) activation across the
organisation, where more than 7,000 colleagues
and our brand partners came together to support
more than 50,000 customers before the start of
the busy summer period. The dedication displayed
by teams across our markets was genuinely
remarkable and I am proud of the huge effort
made to create value for our customers.
Looking ahead
With our strong 24/7 portfolio, bespoke
capabilities and opportunities across our diverse
markets, we are positive about our ability to drive
growth with our partners.
As we look ahead to 2025, I would like to thank
our passionate, dedicated and resilient team.
As an organisation, we put our people at the
heart of our success, and our growth is
a testament to their commitment and
can-do attitude.
I am confident that 2025 will be another great year
in which we will continue to play to win together.
Naya Kalogeraki
Chief Operating Officer
At Coca-Cola HBC, we play to win.
This mindset is part of who we are,
and we channel it every single day
— not only in what we do, but in
how we do it, with our customers
at the heart of everything.”
Coca-Cola HBC Integrated Annual Report 2024
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Segment operational highlights
Our three business segments create a unique and diverse balance of markets which allows us to capture
growth opportunities.
2024
2023
% change
reported
Population (million)1
91
913
–
GDP per capita (thousands US$)2
43.8
43.5
0.7%
Bottling plants (number)
15
15
–
Employees (number)
7,135
6,809
4.8%
2024
2023
% change
reported
Population (million)1
77
77
–
GDP per capita (thousands US$)2
19.5
19.0
2.4%
Bottling plants (number)
9
9
–
Employees (number)
4,338
4,227
2.6%
2024
2023
% change
reported
Population (million)1
582
576
1.0%
GDP per capita (thousands US$)2
5.9
5.8
2.3%
Bottling plants (number)
38
38
–
Employees (number)
21,545
21,712
-0.8%
Italy
39%
Greece
Austria
20%
13%
Others
28%
Volume breakdown
per country (%)
Poland
45%
Hungary
Czech Republic
21%
12%
Others
22%
Volume breakdown
per country (%)
Nigeria
24%
Russia
Egypt
22%
17%
Others
37%
Volume breakdown
per country (%)
1. Data source: UN. Population excludes
North Macedonia.
2. Data source: IHS Dec 2024 release.
GDP refers to ‘GDP, real, harmonised’
in US Dollars.
3. Restated number as per data source.
Established markets
We were pleased to see organic
volume and revenue expansion
in 2024 despite a more sensitive
consumer environment in some
markets. Growth was fuelled by
strong execution supported by
our bespoke capabilities. We saw
growth from low- and no-sugar
offerings, particularly Coke Zero,
as well as Adult Sparkling and an
ongoing strong performance
from Energy.
Developing markets
The segment showed ongoing
good momentum with broad-
based volume growth across
most categories and markets.
Sparkling grew well, supported
by growth from Coke Zero
and Sprite, while Energy also
expanded. Revenue per case
expansion benefitted from
continued revenue growth
management actions, and also
the rollout of Finlandia distribution.
Emerging markets
Volume growth was driven by most
categories, with strong double-
digit growth of Energy and Coffee.
Our DIA and RGM capabilities
allowed us to swiftly react to
macroeconomic challenges
and take pricing actions through
the year. Our affordable offers
continue to unlock further
per-capita consumption,
while other premiumisation
initiatives remain.
Net sales revenue (NSR)
€3,501.3 m
NSR growth (organic)
+3.3%
NSR per case growth (organic)
+3.0%
Volume (million unit cases)
631.3
Volume growth (organic)
+0.3%
Net sales revenue (NSR)
€2,385.2 m
NSR growth (organic)
+12.7%
NSR per case growth (organic)
+10.0%
Volume (million unit cases)
482.6
Volume growth (organic)
+2.5%
Net sales revenue (NSR)
€4,867.9 m
NSR growth (organic)
+23.3%
NSR per case growth (organic)
+18.9%
Volume (million unit cases)
1,800.6
Volume growth (organic)
+3.7%
Coca-Cola HBC Integrated Annual Report 2024
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Leverage our unique 24/7 portfolio
Growth pillars
2024 highlights
• Focused delivery of our strategic priority
categories of Sparkling, Energy and Coffee
• Continued close partnership with The Coca-
Cola Company to drive growth across our
unique 24/7 portfolio
• Expanded our low- and no-sugar ranges,
including launching Monster Energy Green
Zero Sugar in 16 markets
• Drove Coffee growth with an increasing focus
on the Out-of-home channel, in line with
our plans
• Integrated Finlandia Vodka into our business and
expanded distribution to a further 19 markets
• Continued to focus on driving mixability
opportunities through Adult Sparkling and
Premium Spirits
KPIs
• Organic revenue growth
• Organic revenue per case growth
• Volume growth
Principal risks and opportunities
• Marketplace economic conditions
• Product-related regulatory changes
and taxes
• Product quality and food safety
Read more on p.181 to 189
Material issues and topics of interest
• E5 – Resource outflows related to products
and services
• S4 – Consumers’ health and safety
• S4 – Responsible marketing practices
Read more on p.83 to 172
Stakeholders
Read more p.10 to 11
1
Innovating in a mixed
consumer environment
Our 24/7 portfolio meets consumer
needs for every occasion throughout the
day. Our advantaged categories, locally
relevant brands, and constant innovation
in collaboration with our partners keeps
us at the forefront of consumer choice
and customer preferences. With our
24/7 portfolio, we operate in a targeted,
locally relevant way, increasing value
for us and our customers.
Organic volume grew by 2.8% in 2024 (2023: 1.7%),
with all of our strategic priority categories of
Sparkling, Energy and Coffee, delivering growth,
Key to our growth is understanding our
consumers, and our partnership with TCCC
focuses on consumer loyalty, innovation and
marketing. We also work closely with our other
brand partners, innovating and expanding
our offerings.
Sparkling is our growth driver
Sparkling is one of our key growth drivers,
comprising c. 70% of our business. In 2024,
organic volume grew 1.5% (2023: 2.5%),
Trademark Coke grew by low-single digits,
while Coke Zero grew by mid-single digits.
Within the flavoured sparkling portfolio, both
Fanta and Sprite declined by low-single digits.
Our partnership with TCCC enables us to build
relevant consumption moments for consumers.
In 2024, we capitalised on the summer with music
and sport, activated across our At-home and
Out-of-home channels, and successfully
executed our Christmas campaign.
Innovation remains critical to attract new
consumers. We have introduced new, improved
formulas of Fanta and Sprite, as well as zero-sugar
versions. We have launched Coke Creations
flavours and Fanta Beetlejuice, and are benefitting
from on-pack Coca-Cola Marvel activations in
targeted markets.
Our low- and no-sugar propositions in Coca-Cola,
Fanta and Sprite are growing in our Established,
Developing and Emerging segments, driven by
consumer demand, innovation and execution.
In 2025 we will continue to create demand
for our sparkling portfolio through consumer
marketing programmes, product innovation
and best-in class shopper activations.
Adult Sparkling continues to grow,
ahead of Sparkling
Adult Sparkling delivered high single-digit
organic volume growth in 2024 and above average
revenue per case. We focused on driving mixability
and premiumisation, innovating with Schweppes
and Kinley, as we leverage our 24/7 portfolio and
expand into premium non-alcoholic sparkling
drinks and alcohol-free cocktails.
Our super-premium categories continue to grow
and we launched Three Cents in 11 new markets,
bringing the total to 19 markets. The brand has great
potential from mixability trends in social occasions.
Our enhanced capabilities in data, insights &
analytics are helping us to target high-end Hotel,
Restaurant and Café (HoReCa) outlets, and we
continue to expect good growth in this category.
Energy continues its growth momentum
Energy is one of our fastest-growing segments
within NARTD, growing 30.2% and contributing
c. 8% of Group revenue in 2024 (2023: c. 7%).
Ongoing innovations include the launch of
Monster Energy Green Zero Sugar, which have
been successful in our Established and Developing
markets. In Emerging, continued strong growth of
our affordable brands, Predator in Nigeria and Fury
in Egypt, was driven by football campaigns and
local influencers.
We have navigated new regulatory measures
in Poland and Romania, which restrict sales
of energy drinks to minors. We are positive
about the mid-term potential of Energy and
are attracting new consumers through disruptive
marketing and a wide range of flavours.
Coffee growth driven
by Out-of-home channel
We saw 23.9% organic volume growth in Coffee in
2024 (2023: 31.5%) and we expanded distribution
across our markets, adding another 4.300 new
outlets in the year.
We are focused on driving growth in the Out-of-
home channel with both Costa Coffee and
Caffè Vergnano, while premium HoReCa customers
remain our priority for Caffè Vergnano.
Our Coffee Academy trained an additional
2,000 colleagues in 2024, enhancing our future
growth capabilities.
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Quality and consumer feedback
We are committed to ensuring the safety and
quality of all the products we manufacture
and distribute. Food loss and waste, and
product quality are both material topics
for our business. In 2024, consumer
complaints were broadly similar to previous
years. There was one product quality incident
in 2024, resulting in a product recall in Austria.
We marked World Food Safety Day
and World Quality Week with targeted
campaigns on our journey from compliance
to performance. Read more about our
approach to food loss and waste and how
we are mitigating agriculture’s social and
economic impacts on our website Policies |
Coca-Cola HBC.
Premium Spirits expand with roll-out
of Finlandia
Premium Spirits delivered organic volume growth
of 31.8% in 2024. A large driver of this was the
expansion of Finlandia Vodka, which we acquired
from Brown-Forman in November 2023. In 2024,
we expanded into 19 new markets where we didn’t
have distribution rights prior to the acquisition.
Finlandia Vodka enhances our premium spirits
credentials and opens up mixability opportunities
with our NARTD portfolio.
Partnerships are key to growth in Premium Spirits.
In 2024, we grew our partnership with Bacardi,
rolling out distribution into an additional nine
markets after starting with the Czech Republic
and Hungary in 2022. Along with Bacardi, we
continued our successful partnership with
Brown-Forman, expanding our portfolio with
super-premium Gin Mare, and with Edrington,
celebrating the 200th anniversary of
The Macallan.
We launched the ready-to-drink Jack Daniel’s &
Coca-Cola can in a further 15 markets, following
Poland, Hungary and the Island of Ireland launches
in 2023.
Still brands powered by summer of sport
Sport drinks remain one of the fastest-growing
categories in NARTD and our leading brand,
Powerade, was launched in three new markets
in 2024 and delivered strong mid-teens volume
growth. Powerade played a prominent role
in major local running events and marathons,
such as the Vienna City Marathon and the Athens
Classic Marathon, as well as other local sporting
events, including tennis and padel tournaments.
Additionally, Powerade was the official sports
drink of the Paris 2024 Olympic Games, creating
opportunities for consumer engagement
activations across our territories. By aligning with
high-profile athletic events, Powerade reinforced
its brand presence and deepened its connection
with active consumers.
Ready-to-drink tea delivered mid-single digit
volume growth in 2024 (2023: low-single digit
growth) despite challenging conditions. We
prioritised profitable revenue growth in Water,
with a focus on profitable packs and brands. Juice
volume declined low-single digits (2023: low-single
digit decline), impacted by market dynamics.
Sustainable packaging
Sustainable packaging
is one of our material
topics, and you can
read more about this
in Earn our licence
to operate.
Priorities in 2025
• Continue to deliver growth across our
unique 24/7 portfolio, led by our strategic
priorities of Sparkling, Energy and Coffee
• Continued strong Sparkling growth,
supported by our partnership with TCCC
• Drive growth and premiumisation with
Adult Sparkling
• Continue to grow in Energy, supported by
the roll-out of Monster Green Energy Zero
Sugar and affordable offers in Africa
• Increased prioritisation of the Out-of-home
channel in Coffee
• Accelerate Stills, particularly focused on
Powerade and FUZETEA
• Drive profitable growth and value share
in close partnership with TCCC through
key occasions
• Increase marketing of low- and
no-sugar drinks
• Ensure product quality, safety and integrity
remain key
UN Sustainable
Development Goals
We serve our consumers with a
broad range of high-quality products.
In doing so, we create value by
contributing to the Sustainable
Development Goals for good health
and wellbeing, innovation, responsible
production and consumption, as well
as partnerships.
Giving consumers choices for their
diet and lifestyle
We are committed to satisfying great taste
and promoting healthy and balanced diets,
supporting recommendations by leading
health authorities and prioritising responsible
marketing, which is one of our material topics.
In line with our business strategy, we are focused
on giving consumers broader choices to meet
current and future preferences. We produce
new innovative low- and no-sugar drinks, offer
small packs for portion control, and promote
low- and no-sugar beverages. Read more
on our approach to nutrition on our website,
Nutrition | Coca-Cola HBC, in our GRI Content
Index and in the Sustainability Statement,
including our commitments, nutritional labelling
and responsible marketing practices.
See our World Food Safety
Day video:
Watch our Finlandia Vodka showcase
video at the Athens Bar Show
Growth pillars continued
Leverage our unique 24/7 portfolio continued
1
Read more on p.24 to 29
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Revenue growth
management
RGM enables us to drive
premiumisation and smart
affordability solutions
Data, insights
& analytics
Data driven insights, allow
micro-segmentation of
our customers
Route to market
Cost optimised, value creating
outlet coverage, that is both
physical and digital.
Talent
development
Investing in our
people and their
development remains
our ‘lighthouse’ capability
Customer management
Joint value creation is at the
heart of customer partnership.
Digital commerce
Route-to-customer through
eB2B Route-to-consumer
through e-retail and
delivery apps
Our bespoke capabilities enable us to target execution
excellence for every outlet
Execution
Excellence
for every
outlet
Win in the marketplace
2024 highlights
• Strong revenue expansion and continued
profit growth
• The leading contributor to revenue growth
in FMCG across our retail customers
• Rolled out our next-generation CRM system
to a further five markets, bringing the total to
23 markets
• Used our data, insights & analytics (DIA) tools
to develop leads and opportunities for the
HoReCa channel
KPIs
• Organic revenue growth
• Organic revenue-per-case growth
• Volume growth
Principal risks and opportunities
• Foreign exchange fluctuations
• Marketplace economic conditions
• Business interruption
• Product quality and food safety
• Geopolitical and security environment
• Cost and availability of sustainable packaging
• Suppliers and sustainable sourcing
• Cyber incidents
Read more on p.181 to 189
Material issues and topics of interest
• E1 – Climate change mitigation
• E5 – Resource outflows related to products
and services
• S3 – Training and skills development
Read more on p.83 to 172
Stakeholders
Read more on p.10 to 11
2
Bespoke capabilities with
exceptional people
To win in the marketplace, we develop
and deploy our bespoke capabilities,
which are critical for understanding the
changing needs of both our customers
and consumers. We also rely on our
talented salespeople, or Business
Developers, who develop long-lasting,
winning partnerships with customers.
Our customers range from global supermarket
brands and independent convenience stores
to restaurants and e-retailers. Understanding
their needs and consumer relationships is critical
to our continued success.
In 2024, our winning customer partnerships
resulted in strong revenue-per-case expansion
and profit growth, driving 150bps1 of value share
expansion in NARTD2 in 2024, and a 20bps
improvement in value share expansion
in Sparkling2.
Targeting personalised execution for every
outlet – using our bespoke capabilities
Our goal is personalised execution for every outlet.
This requires continuous development of our
bespoke capabilities, including DIA, revenue growth
management (RGM) and route to market (RTM).
Customer management
In 2024, we were once again the leading
contributor to revenue growth in FMCG
across our retail customers2.
Our approach to joint value creation lies at the
heart of our successful customer partnerships.
In 2024, we rolled out our next-generation CRM
system to five more markets, bringing the total to
23 markets, and we strengthened our customer
management capabilities.
1. Basis points
2. According to market researcher Nielsen
3. Excluding Russia
CustomerGauge ‘voice of customer’ software,
which enables instant feedback from customers,
is now rolled out in all markets and our Net Promoter
Score has increased from 59 to 65, in part a
reflection of increasing the number of resolved
customer cases within 48 hours to 93% (2023: 83%).
Digital commerce
In 2024, we continued investing in digitalising our
route to market, both route to customer and route
to consumer.
We have continued to collaborate with Food
Service Aggregators (FSAs), plus e-retailers
and food delivery platforms, for omnichannel
consumption. Our focus on digital shelf execution
and data-driven shopper activation led to strong
double-digit revenue growth online, together with
online market share expansion. On food delivery
platforms, we aim to sell a drink with a meal, and
this ‘beverage attachment’ rate grew to 27%
from 26%3 in 2023.
Our Customer Portal e-business-to-business
(eB2B) platform has continued to grow and is our
main order-taking channel, representing 11% of
orders made in 2024.
Growth pillars continued
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Watch our highlights video from INNOvember
Watch our DIA capability webinar
Refreshing more consumers and customers than ever before
through our physical and digital routes to market
2024 in numbers4
12,200
Business Developers
1.8 million
Customers
70%
of stores visited directly
1.3 million
Cooler doors
>90%
Cold drink equipment
(CDE) coverage in
high-potential outlets
Meanwhile, we have scaled our business-to-
business digital marketing capabilities, launching
automated customer engagement journeys, and
piloting generative AI marketing campaigns, with
promising first results on customer engagement.
Sirvis, our 24/7 multi-category, eB2B aggregator
ordering platform, was rolled out in three new
countries in 2024. The platform connects
Out-of-home outlets to wholesale suppliers
of goods and services providers, and provides
an additional growing revenue stream for us.
Data, insights & analytics – translating
data into actionable insights
DIA is vital in understanding our customers and
consumers so we can serve them better and
achieve personalised execution in every outlet.
In October we hosted our first bitesize investor
event: a deep dive into our DIA capability, sharing
how we turn data into actionable insights, leveraging
statistics, machine learning and AI. We discussed
how we use AI algorithms to scan external sources
and prioritise outlets, pinpointing leads and
opportunities, to expand our 24/7 portfolio.
We also shared powerful case studies. For example,
in Egypt we have used data to prioritise investment
in Cairo and Giza, to drive higher visibility of our
brands, improving execution and driving sales.
We identified 11,000 kiosks and grocery stores to
activate and place our coolers in, resulting in a 33%
increase in sales compared with benchmark outlets
that were not activated in this way. We are looking
to scale this approach to more outlets in 2025.
We have focused on using more data, for example,
image recognition, cooler door openings and DIA
insights, to continue to improve our in-store
execution. We have upgraded our physical RTM
to adapt to our digital transformation and we now
have around 200,000 active digital customers
through all our B2B platforms.
Talent development is our
lighthouse capability
We are building capabilities by offering world-class
training for colleagues in our Sales Academy, and
our recently launched DIA and Digital Commerce
Academies. We are on track to upskill more than
6,000 Business Developers by the end of 2025.
Our learning culture is embedded throughout our
Company as we make learning accessible through
technology-enabled solutions. One example of
this in practice was in November, when we held a
month-long celebration of learning and innovation,
INNOvember, inspiring colleagues to embrace
technology in their everyday work, in particular AI.
You can read more about talent development in
Cultivate the potential of our people on p.20 to 23.
4 Data excluding Russia
Priorities in 2025
• Strive towards personalised execution for every
outlet, leveraging our bespoke capabilities
• Accelerate digital commerce with Customer
Portal and Sirvis, our eB2B aggregator
ordering platform
• Build analytics for Customer Portal,
with intelligent and personalised digital
marketing, and improve our current
algorithms with generative AI solutions
• Continue to enhance our competitive
advantage from segmented execution
insights, particularly in our HoReCa channel,
and leverage insights from promotion analytics
• Upskill more than 6,000 Business Developers
in DIA and digital commerce by the end of 2025
UN Sustainable
Development Goals
As we build our business by helping our
customers to grow and thrive, we contribute
to achieving Sustainable Development
Goals related to ending poverty, decent
work, sustainable communities, responsible
production and partnership.
In 2025, we will also focus on building analytics
for our Customer Portal with intelligent and
personalised digital marketing, and using
generative AI to improve our current algorithms.
We will increase the variety of external data sets
we use in the model, such as using outlet images,
customer reviews, comments and feedback
to further increase the intelligence of the model
and improve our targeting ability.
The bitesize DIA investor event was hosted by our
COO, Naya Kalogeraki, and led by our Head of DIA,
Ruchika Sachdeva. Follow the link from the QR
code to watch it.
Revenue growth management
We are using our RGM framework to meet
consumer demand for affordability and
premiumisation. We benefit from the breadth
of our 24/7 portfolio, with different price points,
as well as our ability to adapt package formats
for different occasions and affordability needs.
Using our RGM capabilities, we implemented
price increases where required in 2024, as well
as drove mix increases, balancing premiumisation
and affordability to meet local needs.
Our affordably priced, returnable glass bottles
(RGB) in Nigeria and Egypt continued to deliver
a strong performance, and we increased sales
of premium small glass bottles in HoReCa in
our Established segment through the summer.
Route to market
Each day, our Business Developers serve
almost two million customers across our markets.
In 2024, we deployed our dynamic routing tool
in 18 countries with an estimated 15% reduction
in travel time for our Business Developers,
freeing up more time for them to meet face
to face with customers.
We also added 57,000 more cooler doors, which
helps to drive single-serve mix and revenue
growth. We now have over 90% coverage of
coolers in high-potential outlets.
Growth pillars continued
Win in the marketplace continued
2
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Growth pillars continued
Sustainability investment – a consistent
focus across all our investments
Our approach to sustainability is doing what
is right, while creating value for the business
and strengthening resilience. Sustainability
investment cuts across all our investment
categories and underpins every investment
decision we make. In 2024, we achieved
the following:
Energy-efficiency
• Increased the number of new energy- efficient
coolers in customers’ premises, bringing the
total to 60%1 (2023: 55%), supporting our
revenue growth management strategy and
sustainability goals.
• Installed a further 1MW of solar generation
in Nigeria, increasing the total of on-site
renewable capacity to 13MW, improving
the security of supply and reducing
carbon emissions.
• Increased on-site photovoltaic (PV) capacity
in Europe by 1MW, completing installation
in the Czech Republic and Greece,
bringing total installed PV
capacity across all
our countries
to 24MW.
Fuel growth through competitiveness and investment
2024 highlights
• Added a new Monster canning line in Italy
• Ramped up our €11 million rPET unit in
Romania to full production
• Reached 60%1 energy-efficient, connected
coolers across our markets
• Rolled out ‘Digital Twin’ in three
additional plants
• Integrated Finlandia Vodka into our supply
chain, driving growth in Premium Spirits
KPIs
• Organic EBIT growth
• Comparable EBIT
• Comparable EBIT margin
• Capex as % of NSR
• ROIC
Principal risks and opportunities
• Marketplace economic conditions
• Product quality and food safety
• Suppliers and sustainable sourcing
• Cyber incidents
• Cost and availability of sustainable packaging
• The impact of climate change on the cost and
availability of water
• Managing our carbon footprint
Read more p.181 to 189
Material issues and topics of interest
• E1 – Climate change mitigation
• E3 – Water consumption
• E5 – Resource inflows, including resources
• E5 – Resource outflows related to products
and services
• S3 – Water and sanitation
Read more p.83 to 172
Stakeholders
Read more p.10 to 11
3
Investing to refresh and
grow, sustainably
We continue to invest to support
our growth ambitions and have a
broad footprint of 62 production
plants, including five mega-plants,
across 29 countries.
Our investment falls into four broad
categories, all of which integrates
sustainability investment.
Investing in renewal and refreshment
of European capacity
We are investing in renewing capacity in Europe,
replacing older lines and implementing new
technologies. Every new line:
• enables innovation of the product and
package for consumer attractiveness;
• improves our environmental footprint
(water and energy); and
• improves productivity and reduces our
cost-per-unit case of production.
Investing in growth
We invest to enable our growth ambitions
and targets.
In our Emerging segment, we are seizing the
growth opportunities from both a young and
fast-growing population, and the opportunity
to increase per-capita consumption of
NARTD beverages.
For example, in Egypt, we installed an additional
PET line in 2024 to meet increasing demand. This
line has also allowed us to expand our production
of Energy drinks, a category that we launched in the
market in 2023 and which has seen rapid growth.
We are also investing in growth in our Established
segment. For example, in January 2024, we
commissioned a Monster canning line in Italy.
This is now fully operational, bringing our total
number of Monster producing canning lines to
seven across six countries. We continue to invest
in our partnership with Monster Energy, with
Energy being one of the fastest-growing
categories in NARTD beverages.
Investing in digital, data and technology
Fuelling our growth requires investment behind
digital technology and new business models,
blended with our continuous focus on
productivity and efficiency improvement.
In 2024, we continued to focus on embedding digital
ways of working throughout the Group to deliver
prioritised business outcomes. We consider three
critical categories when investing in digital, data and
technology: consumer and customer centricity (read
more in ‘Win in the marketplace’ on pages 16 to 17);
employee experience (read more in ‘Cultivate the
potential of our people’ on pages 20 to 23); and
operational productivity.
We were able to achieve an improvement in
production overheads as a percentage of NSR
in 2024, supported by the ongoing end-to-end
understanding of our manufacturing and logistics
network, enabled by technology and digital
solutions. One example is the roll-out of ‘Digital Twin’
in three markets in 2024. Digital Twin creates a digital
replica of a plant enabling optimised resource use and
efficiency savings, We plan to expand this into two
additional plants in 2025, In 2024 we also finished
the technical roll out of our advanced demand
and supply planning system Blue Yonder, finalising
the replacement of our old systems.
Investing in logistics, including
automated warehouses
Our logistics strategy targets unparalleled service
and being a reliable, trusted and preferred partner
for our customers. In 2024 we started further
improvements and digital investments into our
end-to-end order process and real time tracking
of our delivery services.
We also continue expanding our automated
warehouse capacity which allows us to support
our growth ambitions while continuously
improving productivity.
1. Excluding Egypt
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Growth pillars continued
Sustainable packaging
• Ramped up our €11 million rPET unit in Romania
to full production, enabling the production
of 100% rPET bottles and capitalising on the
new nationwide DRS. This investment brings
all three elements of packaging circularity,
(meaning beverage container collection, rPET
production and 100%rPET bottles), to fruition
in the business unit.
• Reached full production capacity on our new
reusable glass bottle (RGB) line in Austria.
The line is also filling our new ‘universal’
reusable glass bottle. Premium RGB beverage
production continues to increase, reaching
16% of total Austrian volume in 2024, up c.2%
on the prior year, while volumes packaged in
glass increased by 9% overall. Our recovery rate
of RGBs in Austria is >85% and is an important
element of our circular packaging strategy.
• Following the successful transition to tethered
closures across all our EU markets, we continue
to focus on further optimisation opportunities.
We will roll out a new PET bottle neck finish
across all our geographies starting with
Nigeria in 2025. This initiative further reduces
the weight of the PET bottle and closure.
Full roll-out savings are estimated at 12,000
tonnes of plastic material and 13,900 tonnes
of CO2 annually.
• In Italy, we introduced a lightweighted carton
for our 150ml can multipack. This is a further
evolution of our initial step of substituting
plastic shrink film with a more circular-friendly
carton packaging solution. This successful
pilot will be rolled out in other geographies
where applicable.
Our new RGB line in Austria
• In 2024, we have continued to reduce the
amount of material used in our labels across
most of our markets. We expect to complete
this project in all our markets by the end of 2025,
delivering approximately 550 tonnes of plastic
and 1,000 tonnes of CO2 reduction respectively.
Strengthening our supplier partnerships
and supply chain effectiveness
We consider our suppliers as critical partners,
contributing to the ongoing and sustainable
success of our business. Under a unified
procurement framework, we divide our supply
base universe of around 15,000 parent level
supplier organisations into direct and indirect
spend suppliers, and segment according to
their importance.
Click here to read more
Monitoring supply chain effectiveness
Our robust, collaborative approach to monitoring
our supply chain is crucial for reducing our scope 3
emissions and ensuring compliance with our
Supplier Guiding Principles. We monitor the
performance of our key suppliers through annual
internal assessments and third-party compliance
audits, the EcoVadis IQ Plus Tool and EcoVadis Risk
Assessment platform. EcoVadis helps us monitor,
assess and benchmark risks using 21 criteria and is
our common ESG assessment platform across
the Coca-Cola System, where we exchange
information on supplier ESG performance.
We recognise supplier certifications (including
ISO 9001, ISO 14001, ISO 50001, FSSC 22000
and ISO 45001). For agricultural commodities,
we recognise international certifications such
as the Rainforest Alliance, Fairtrade, Bonsucro,
the Sustainable Agriculture Initiative (SAI),
Platform Farm Sustainability Assessment (FSA),
VIVE1 and Global GAP+GRASP2. All long-term
contractors and contracted services on site are
assessed on human rights through workplace
audits every three years.
We are investigating how to extend risk
assessment in our supply base, leveraging AI
and customised alerts, giving our strategic
procurement team faster access to critical events,
and information, affecting our supply chain.
We are also supporting our suppliers in improving
their ESG performance. In 2024, we initiated ESG
performance debrief sessions with specialists
from sustainability intelligence platform EcoVadis
and our vendor teams. We are committed to
our annual capability-building programmes.
These range from training by in-house teams
and partners like EcoVadis, VIVE and Bonsucro,
to running higher-level academy sessions
targeting critical topics such as reducing GHG
emissions in support of our scope 3 targets.
You can read more on this in Earn our licence
to operate on pages 24 to 29.
Fuel growth through competitiveness and investment continued
3
Priorities in 2025
• Enable profitable business growth through
securing product availability, innovation
and cost management
• Continue to improve the environmental
impact of our operations and packaging
• Install additional lines to meet demand and
execute automated warehouse projects
• Achieve unparalleled customer experience
with continued logistics and planning focus
as well as expansion of digital tools
• Roll out Digital Twin to two further plants
UN Sustainable
Development Goals
Our sustained efforts to reduce our
costs and improve our impact have
generated significant results for our
business, our communities, society
and the environment. These results
correspond to contributions to the
Sustainable Development Goals for
clean water and sanitation, clean energy,
economic growth, industry innovation,
sustainable communities, responsible
production, climate action, life below
water and life on land.
1. VIVE is a sustainable supply programme
2. Certification and benchmarking for responsible farming practices
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Transforming the digital
employee experience
In 2024, we continued our digital transformation
journey, helping to shape a future-ready, engaging
and innovative workplace. Our new Helo and
Refresh platforms digitalise processes and foster
an inclusive and productive employee experience.
• Helo, on the Workday platform, streamlines
workforce administration by empowering
employees with self-service tools and equipping
managers with resources to better support their
teams. This frees up time for employees and
simplifies ways of working across the organisation.
• Refresh, on Microsoft Viva and SharePoint,
is our enhanced employee experience and
intranet platform, replacing fragmented
intranet pages across our markets. It centralises
tools and resources, enhancing productivity,
enabling smarter working, strengthening
connections and cultivating a truly global
workplace culture.
We have also introduced a digitalised end-to-end
onboarding journey for external candidates and
internally promoted employees, which covers
pre-onboarding orientation, hiring administration
and a comprehensive learning journey. Our new
approach provides newcomers with 360-degree
support from managers, colleagues and buddies.
Our rewards process is also being digitalised
to improve transparency and provide a better
experience for line managers, employees and
People & Culture teams. In 2024, we started to roll
out the digital merit increase and annual bonus
processes for managers, and have received positive
feedback on the new digitalised experience.
Cultivate the potential of our people
2024 highlights
• Continued to build high-performing sales
teams and strengthened our commercial
talent pipeline with internal successors
• Improved our engagement score to 88%,
staying resilient and connected with our
teams through continuous listening
• Embedded our growth mindset-driven
culture through leadership role-modelling
behaviours, focusing on driving simplicity
and proactive collaboration
• Strengthened workforce diversity by
increasing share of female leaders, while
building an inclusive workplace
KPIs
• Employee engagement
• Percentage of managers who are women
• Lost Time Accident Rate
Principal risks and opportunities
• Geopolitical and security environment
• Health and safety
• Business interruption
• People attraction and retention
Read more on p.181 to 189
Material issues and topics of interest
• S1 – Health & Safety
• S1 – Secure employment
• S1 – Training and skills development
• S1 – Diversity
• S1 – Gender equality and equal pay
Read more on p.83 to 172
Stakeholders
Read more on p.10
4
Strengthening our culture
We believe that it is only with the strength,
competence and engagement of our
people that we will achieve our vision and
ambitious growth plans. Our colleagues
across all our markets have truly
embraced our purpose, Open up moments
that refresh us all. This purpose is our
North Star as we aim to drive impact,
operating with a growth mindset and a
belief in creating a better shared future.
Over the past two years, we’ve embedded
our culture manifesto across Coca-Cola HBC,
including our purpose, vision, leadership model,
values and behaviours. In 2024, we focused on
building understanding, integration and helping
leaders to bring our values to life.
To ensure that we live our behaviours day by day,
they are integrated into employee performance
reviews. Three key behaviours (collaboration with
a customer-centric mindset, growing ourselves
and others, and make it simple) encapsulate our
Growth pillars continued
People & Culture –
Purpose and Vision
Building on global trends and reflecting on the
insights from our employees, line managers and
our Executive Leadership Team, we involved our
People & Culture community to co-create our
People & Culture Purpose and Vision.
Our People & Culture purpose unites us:
Together, we open up the potential of all our
people. At the core of our vision is a dedication
to growing the best teams to deliver our growth
strategy, through nurturing our unique culture,
cultivating the talent of our people, enhancing
our employee experience and driving
continuous growth.
core expectations and we have developed
measures to evaluate them, ensuring maximum
impact on both personal growth and our business.
To bring our culture to life and support teams
across our markets, we have introduced our
Line Managers & Employee Handbook. Our
purpose and values awareness campaign in 2024
showcased what it means for us to live our values
and behaviours. Sharing stories from our diverse
and talented people across our markets continues
to be a platform for recognising our culture
ambassadors and promoting the behaviours
we would like everyone to live at Coca-Cola HBC.
It ensures colleagues feel seen, heard, valued
and connected to each other and to our culture.
Together, we open up the potential
of all our People.
Grow the best Teams to deliver our
Growth strategy
People
Focused
Business
Relevant
Simple &
Sustainable
Manifesting our values
Redtalks – the power of storytelling
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Engagement and collaboration
We believe employee engagement drives
motivation, productivity and organisational success.
We measure engagement through six key metrics:
teamwork, energy, resources, strategy belief, pride
and advocacy. To track focus areas and overall
engagement, we conducted two employee
surveys in 2024, achieving a 90% participation
rate (88% in 2023). Our focus in 2024 included
simplification (+2 percentage points (pp) from 2023),
collaboration (+2pp from 2023), retention (+1pp from
2023) and overall engagement. These efforts led to
an all-time high sustainable engagement index score
of 88% (+2pp from 2023). Our Business Developer
and newcomer engagement scores were also up
3pp compared with last year. Our engagement
score exceeded the Perceptyx Global Top Decile
Norm by 2 pp, reaffirming our performance against
top-tier companies.
88%
sustainable engagement index score
89%
belief in our strategic priorities
93%
feel proud to be part of Coca-Cola HBC
89%
would recommend working at Coca-Cola HBC
Our cross-functional collaboration has also
significantly improved, as measured through
our internal Collaborating for Impact survey.
Our Net Promoter Score from our country
teams landed at 28 (+3pp from 2023). Through
systematic cross-functional action plans, we
aim to elevate both customer and employee
experience, leading to a more collaborative
and customer-centric organisation.
We have updated our feedback loops, including
colleague feedback and upward feedback, to occur
twice a year, aligned with our performance reviews.
We are aiming to increase the number of employees
covered by our feedback cycles and are gaining more
valuable insights, with 70% coverage rate in colleague
feedback (67% in 2023) and 80% in upward feedback
(82% in 2023). We have streamlined performance
reviews, reducing the number of formal steps and
allowing for more meaningful dialogues.
Employee turnover has continued to fall, landing
at 10.5% compared with 11.4% in 2023. Retention
remains a key priority, through attractive
remuneration and benefits, as well as our focus
on employee wellbeing and engagement.
Wellbeing and rewards
We strive to ensure everyone feels valued,
recognised and supported in their pursuit of
professional development and wellbeing through
our policies, comprehensive benefits and innovative
wellbeing initiatives. Our Wellbeing Framework
focuses on physical, mental, financial and
social health.
In 2024, we reinforced our commitment to
employee wellbeing through dedicated sessions
across our regions, highlighting our Employee
Assistance Programme (EAP), which is available to
more than 26,600 employees. As a result of these
sessions, we have increased EAP utilisation and
improved the engagement with the EAP app.
Our Wellbeing Hub features a wealth of resources,
including stress management booklets and other
wellbeing-focused materials. Our commitment to
employee wellbeing earned us high commendation
in the European Wellbeing Excellence category
of the TELUS Health 2024 Wellbeing Awards.
Health and safety
We are committed to driving an occupational
health and safety culture to provide a safe place
of work for all our employees, contractors, visitors
and individuals under our supervision, targeting
zero accidents across all our operations and sites.
We are continually improving our systems and
initiatives, and expanding our behaviour-based
safety (BBS) programme to broaden the reach
of our safety culture.
In 2024, we launched the BBS programme
in the route-to-market (RTM) area in several
countries, including some external distribution
centres. We have continued quarterly compliance
assessments, adhering to TCCC’s Life Saving
Rules in all our facilities1, with an implementation
rate of 86.8%. Each assessment is followed by
dedicated corrective actions to address any
critical gaps.
We are proud to report zero on-site fatalities this
year. However, we regret to report two fatalities
among contractors and employees due to road
accidents (five in 2023). Whilst our Lost Time
Accidents (LTAs) among employees since 2017
have reduced by 2.4 times, unfortunately they
increased last year (100 in 2024; 89 in 2023).
Thankfully no severe injuries were recorded across
the organisation. On a positive note, we report a
reduction in contractors’ LTAs compared with the
previous year, underscoring our relentless efforts
to ensure a safer working environment for
everyone involved.
We launched a new interactive health & safety
e-learning course, which is mandatory for all
employees. Our Sales Academy was also enhanced
with new health & safety-related e-learning courses,
which have already been completed by more than
3,200 learners, ensuring that safety is a priority
across all functions.
In 2024, we introduced monthly Safety
Awareness Days and strengthened our health &
safety culture and engagement through increased
communication from our senior leaders. For the
first time, a dedicated health & safety update was
included in our Leadership Conference as a key
topic, highlighting our commitment to integrating
safety into all aspects of our operations.
Supporting our people
in Ukraine
During the third year of the war in Ukraine,
our people, with the support of the whole
Coca-Cola System, continued to demonstrate
resilience, mutual support and collaboration.
Their safety remains our number one priority,
while adaptation and winning in the new reality
became our motto for 2024. This year, we
continued with stress management and
resilience webinars, and town halls with our
General Manager and the local leadership team.
Based on these discussions, we implemented
several initiatives, including the upgrade of the
basement of our premises into a fully operating
shelter with comfortable working conditions.
We also launched an internship programme,
covering all functions and enriching our
organisation with 15 young talents.
We continue supporting our Diversity, equity
& inclusion (DEI) agenda, having started a
cooperation with the ‘Zhyttelyub’ foundation,
which helps the more senior population of
Ukraine in reskilling and employment. We are
developing our ‘Women in Sales’ community
to support female employees in their
career development. We continue living our
corporate values, driving internal volunteering
and helping the wider community of Ukraine.
Growth pillars continued
Cultivate the potential of our people continued
4
1. Excluding Russia
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We received nine diversity-related awards in
2024 in recognition of our efforts to increase
gender diversity.
In Greece, we received the Gold award for
Accelerating Female Professionals.
In Austria, our four awards include the Seal of
Quality of In-house advancement of Women.
The Women
of CCHBC
International
Women’s Day
Women in
Leadership
Growth pillars continued
Cultivate the potential of our people continued
4
Diversity and inclusion
Diversity, equity & inclusion (DEI) is key for
diversity of thinking and fostering psychological
safety throughout our organisation, so everyone
feels they are respected and belong. During 2024,
we continued to uphold our DEI commitments by
increasing the number of our female leaders.
We are closely monitoring our progress across
recruitment, talent development and retention,
and embedding inclusive leadership in our
leadership development programmes.
43.5%
female leaders
56%
external female managerial hirings
45%
internal female managerial appointments
As we strive to build a gender-balanced
organisation, our focus is on increasing the
representation of women throughout Coca-Cola
HBC. We have improved our gender balance at all
levels, with 43.5% of management positions now
held by women, a 1.7pp increase since last year.
We held Women Network sessions in Austria,
Ireland, Egypt and Nigeria, and virtual talks with
our women in the DTPS and Finance functions
to increase visibility and knowledge sharing.
Over the past year, 69 of our female leaders
participated in our Women in Leadership
programme, which aims to build engaged and
capable female leaders, support their transition
into new roles and challenge cultural factors
that may hold them back. Since the start of the
programme in 2022, 56% of participants who
completed the first programme, and 50% of
participants who completed the second
programme, have been promoted.
We also held female community talks, featuring
our COO, Naya Kalogeraki, and our CPCO, Ebru
Ozgen, who joined our female leaders in a panel
discussion. In Nigeria, we have developed a female
development programme, helping women to build
self-belief and self-confidence.
Further highlights include the following:
• Our CEO continuing to be a judge at the WeQual
awards for female leaders
• Participating in the LEAD conference in
Hungary, as a TCCC partner and beverage
sponsor – the largest diversity and inclusion
event for the European FMCG and retail industry
• Supporting The Boardroom in Greece and
Switzerland to develop women for board roles
To ensure we adhere to all applicable laws and
regulations and demonstrate best practice
around DEI, we regularly review our Human Rights
Policy, our Code of Business Conduct and other
internal standards. Read more on pages 131 to
132 and on our website.
Talent development:
Our lighthouse capability
Our commitment to people development is
supported by our evolving Talent Review Framework,
which enables us to identify successors for senior
leadership roles. In 2024, we identified 64 successors
to country function head roles and 18 have taken
over. We have a broader, gender-balanced pool with
more than 300 future successors and early talents,
and we will tailor their development and accelerate
their growth. To enhance talent visibility across
business units and functional areas, we worked
with 17 cross-country talent pools, enabling more
internal moves across our countries and functions.
This contributed to 84 appointments transitioning
into senior leadership roles, with 77% of the
managerial roles filled internally.
We are focused on bespoke capabilities to identify
where we need to invest in external hires or internal
capability development. More than 300 employees
took part in our acceleration programmes in
2024, which continue to drive our internal
succession plans.
We have evolved our definition of potential, to help
our employees learn and develop in a way that is
fair and transparent. Our starting point is that
everyone has potential, and our talent strategy
aims to release it. We have introduced three
levels of potential that will enable us to have
more holistic conversations, and create more
long-term, strategic talent and development
plans to support our people so they can thrive.
Helping our people realise their potential
As a learning organisation, we actively reinforce
continuous learning and upskilling, while giving
people opportunities for personal growth. By
making learning accessible to all, we delivered over
659,000 hours of learning in 2024. Over 29,000
of our employees participated in some form of
training, of which 25% was in personal skills, 25%
was compliance related and 50% was in functional
skills. Most of our employees learned online,
with 69% of the learning activity self-paced
and self-initiated. In its fifth consecutive year,
our virtual LearnFest drew in more than 8,000
attendees across 10 sessions running throughout
the month of November.
659,000
hours of learning
69%
of learning done online
8,000
participants in LearnFest
We provide access to coaching and mentoring
through technology-enabled solutions. After
a successful campaign to inspire and encourage
internal coaching, in 2024, we incorporated it into
other learning and talent initiatives, and have
continued to grow our pool of internal coaches.
Developing critical sales and supply
chain capabilities
To help our customers and our people adapt to the
changing external environment, we are building high-
performing sales teams with a focus on upskilling
and building critical capabilities. Under the flagship
of the Sales Academy, our suite of academies
supports professional development for new joiners
and existing colleagues, including Sales, Premium
Spirits, Coffee and Digital Commerce.
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Growth pillars continued
We’ve had another year of strong uptake in
professional development in 2024, with more than
1,300 new Business Developers becoming certified
in Licence to Start and Licence to Sell and 89% of
existing Business Developers achieving certification.
In addition, more than 500 commercial employees
embraced learning paths from the Data, Insights
& Analytics Academy.
1,300
new Business Developers certified
89%
of existing Business Developers achieved
certification
Our Supply Chain (SC) Academy covers 115
different groups of roles in manufacturing, logistics,
quality, planning and procurement across Coca-
Cola HBC, and is now also available in Egypt. Our
SC Academy incorporates the latest innovative
technology tools in logistics and planning. In 2024,
83% of our SC workforce has participated in the SC
Academy and, out of those, 42% have already been
fully certified. Under SC Academy alone, our
employees completed over 175,000 hours of
learning, indicating our commitment to growing
capabilities and achieving operational excellence.
83%
of our SC workforce has participated in the
SC Academy
175,000
hours of learning under the SC Academy
Finding and developing our
future leaders
We develop leaders at all levels, with our leadership
programmes for first-time leaders, middle managers
and senior leaders available to everyone who is
promoted to next-level leadership. We believe all
our leaders should develop their people, building
the most capable and most engaged teams.
Our International Leadership Trainee flagship
programme continues to challenge and develop
Gen Z graduates to become our next generation
of leaders. Our first group in 2024 experienced
international assignments, a leadership development
programme with HULT business school in London,
mentoring and reverse mentoring with our senior
leaders. They also participated in global events
around sustainability and other topics.
Our employer branding campaign to attract
future talent, called ‘Bring your own magic’,
achieved more than 16 million views and 14,000
applications. Through an intense recruitment
process, we’ve since welcomed 15 new trainees
across 12 countries, including – for the first time
– four trainees in Africa.
Recognised as an employer
of choice
Our attractiveness as an employer in the
Universum 2024 rankings increased to 7th
place overall and 5th place for Business
Developers, from 12th place in both
categories last year. In Greece, Cyprus,
Ukraine, Armenia, Moldova, Poland & Baltics,
and in our Adria business unit, we are now a
1st FMCG employer. This has been a result
of targeted campaigns, presence on social
media and engagements at local universities.
Additionally, we won 51 external awards
including three Gold awards for Best
Marketing Strategy, as well as the Top
Employer certification for Greece, Bulgaria
and Italy by the Top Employers Institute.
Priorities in 2025
• Elevate our bespoke capabilities and evolve
our learning experiences to accelerate
performance and development
• Stay resilient and connected with our
teams through continuous listening, while
rebooting our rewards strategy to boost
our attractiveness and maximise retention
• Cultivate our growth mindset-
driven culture through simplicity
and proactive collaboration
• Enable our people and teams to drive higher
impact, through gender-balanced teams
and more productive ways of working
UN Sustainable
Development Goals
Efforts to foster an engaging workplace
and an inclusive environment, nurture
and develop the capabilities of our
people, increase gender balance in our
management ranks, and reduce stress
and support employee wellbeing all
contribute toward global goals for
development. The specific Sustainable
Development Goals we support include
good health and wellbeing; gender
equality; decent work and economic
growth; reducing inequalities; and peace,
justice and strong institutions.
Coca-Cola HBC Sales
Academy
Coca-Cola HBC Key
Accounts Sales
Academy
Our International
Leadership Trainee
programme
Inside the Coca-Cola
HBC International
Leadership Trainee
experience
Cultivate the potential of our people continued
4
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Earn our licence to operate
2024 highlights
• Continued our decarbonisation in line
with our NetZeroby40 roadmap
• Updated NetZeroby40 roadmap,
incorporating FLAG emissions and Egypt
• Focused on packaging decarbonisation using
a higher percentage of recycled materials
• Supported roll-out of DRS in EU markets
• Promoted EPR policies and launched new
packaging collection systems
• Expanded our partnerships in water
and waste reduction
• Continued our focus on #YouthEmpowered
• Ongoing support to communities in need.
• Activated the Coca-Cola HBC Foundation
KPIs
• Absolute greenhouse gas emissions in scope 1,2
and 3
• Water usage in water risk areas
• Young people trained through #YouthEmpowered
• % primary packaging collected
Principal risks and opportunities
• Cost and availability of sustainable packaging
• The impact of climate change on the cost and
availability of water
• People attraction and retention
• Health and safety
• Suppliers and sustainable sourcing
• Managing our carbon footprint
• Product quality and food safety
• Complying with international sanctions
Read more on p.181 to 189
Material issues and topics of interest
• E1 – Climate change mitigation, E1 – Energy
• E3 – Water consumption, E3 – Water withdrawal
• E4 – Land-ecosystem use change
• E5 – Resource inflows, including resources,
E5 – Resource outflows related to products
and services
• S2, S3 – Training and skills development
• S3 – Water and sanitation, S3 –
#YouthEmpowered (company-specific)
• S4 – Consumer’s health and safety,
S4 – Responsible marketing practices
Read more on p.83 to 172
Stakeholders
Read more on p. 10 to 11
5
Growth pillars continued
Consistent progress across our markets
• Making progress on circular packaging:
Empty bottles are a valuable resource, and
recycling them can help to decrease our costs
and achieve our collection targets. Nine of our
markets now have Deposit Return Schemes
(DRS). Four successful DRS have been launched
between December 2023 and January 2025
in Romania, Hungary, the Republic of Ireland
and Austria. DRS help to consistently deliver
high packaging collection rates. For example, in
Romania (launched December 2023) results are
encouraging, with an average return rate of 77%
of containers sold in the market in the last three
months of 2024. In 2025, we expect to achieve, on
average, above 60% recycled material in our PET
packaging in all our EU countries and Switzerland.
• Driving progress through innovative business
models: In Nigeria, our innovative approach
to collection and recycling is creating value for
us and local communities. In 2024, we built the
country’s first-ever Coca-Cola System-owned
and operated packaging collection hub, allowing
us to collect plastic bottles for recycling.
• Expanding reusable packaging: We continue
to grow our transactions sold in Returnable Glass
Bottles (RGB) with a 1pp increase compared with
last year, including Africa. We are testing new
business models such as a circular packaging
campus with a leading university in Italy and we
expect to expand this model across our territories.
• Partnering with local stakeholders: We
started to collaborate on a project in Nogara,
Italy, that will add up to 1.5 million m3 of water
every year to the local aquifer near our production
plant. We will help to create a network of canals,
trees and shrubs to revitalise fresh water for
agriculture and community use.
• Investing for sustainable growth: We received
a $130 million loan from the EBRD to finance
capex and working capital requirements in Egypt.
This loan recognises our long-term commitment
to Egypt and allows us to invest in energy-efficient
coolers and sustainable packaging innovation
and continue to fund our #YouthEmpowered
and ‘She Leads’ programmes.
Introduction
We are proud to remain global industry leaders
in sustainability this year, with leading scores
and rankings in ten of the most-recognised
ESG ratings. We were ranked as the world’s most
sustainable beverage company in the 2024 Dow
Jones Best-in-Class Indices for the eighth time.
We believe our success comes from continuously
evolving our business model to deliver growth and
taking a strategic approach to sustainability. This
approach allows us to both grow and make our
business more resilient.
In 2024, we made good progress towards our
ambitious and measurable 2025 sustainability
objectives by focusing on areas where we can have
the greatest impact: climate, packaging and water.
We have reduced emissions for the past four
years, in line with our NetZeroby40 roadmap.
In early 2025, the Science Based Targets initiative
(SBTi) approved our NetZeroby40 target which,
for the first time, includes Egypt. We also published
our first Sustainability Statement as part of the
Corporate Sustainability Reporting Directive
(CSRD) requirements.
Read more on p.41 to 172
Packaging
collection
hub in Nigeria
• Supporting communities: We awarded grants
totalling €1.55 million from the Coca-Cola HBC
Foundation to help rebuild communities in
Europe and Nigeria impacted by severe floods.
We have also collaborated with governments
and NGOs to assist impacted communities,
delivering almost 400,000 litres of beverages
through local charities and municipalities.
• Adding value for our customers: Sustainability
initiatives are increasingly important for our
customers and consumers. Our customers tell
us they value our sustainability expertise and
that joint sustainability initiatives help grow their
business, which, in turn helps make our own
business stronger.
This year, we continued to build our capabilities,
collaborate and learn from our experience to build
a strong and resilient business that is opening up a
more sustainable future.
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4,400
4,991
3,684
3,485
1,637
930
563
391
255
19
2017
2010
2024
2030
2040
2024 Actual: -31% vs 2010
2024 Actual: -18% vs 2017 (SBTi base year)
From 2024 to 2039:
Beyond value chain mitigation2
Neutralisation of residual
emissions as of 2040
#NetZeroby40
goal
2019
5,920¹
4,0751
4,9631
Scope 1+21
Scope 31
Carbon Removal Projects
Scope 1+2+3 emissions
#NetZeroby40 roadmap for scope 1, 2 and 3
Scope 1, 2 and 3 incl. Egypt; FLAG and non-FLAG emissions;
newly established science-based target for scope 3 based
on Well-Below-2-Degrees (WB2D) scenario by 2030 and
then 1.5°C pathway until 2040; changed baseline year from
2017 to 2019.
.
S1+2: -46.2% in 2030 vs 2019
S3: -28% in 2030 vs 2019
Overall
reduction
S1+2+3 in 2040
vs 2019: 88%
1. Scope 1+2+3: all numbers exclude Egypt.
2. As defined based on Science Based Targets initiative.
Updated SBTi roadmap applicable since 2025
Growth pillars continued
Climate
On the pathway to net zero emissions
We were among the first companies to adopt
science-based reduction targets by the Science
Based Targets initiative (SBTi). Our aim is to
achieve net zero emissions across our entire value
chain by 2040. Each year we make steady progress
towards this target.
We have decreased our absolute direct emissions
by 58% and reduced our absolute total value chain
emissions in scope 1, 2 and 3 by a third from 2010
to the end of 2024, despite a global increase
in emissions.
In 2024, we made important changes to our net zero
roadmap after the SBTi validated and approved:
• Renewed climate targets for 2030 and
NetZeroby40, including Egyptian operations
for the first time.
• Targets for Forest, Land and Agriculture (FLAG)
that apply to commodities from forestry, land
and agricultural sectors. These are covered
in our scope 3 emissions, for example,
in packaging, wood and paper pulp, and
ingredients such as sugar and fruit juices.
These changes are now reflected in our climate
transition plan with a clear set of actions on how
to achieve these targets. We will report on these
from 2025:
• In scope 1 and 2 we will follow the 1.5°C pathway
for 2030 and 2040.
• In scope 3, we will split our targets into two
categories: energy and FLAG. Our energy-
related targets will follow the Well-Below-2-
Degrees (WB2D) scenario until 2030 and then
the 1.5°C pathway until 2040, our net zero year.
Scope 1 and 2
In 2024, our core initiatives to reduce carbon
emissions included:
• Manufacturing: we spent €26 million in 2024
on our Top 20 energy savers programme, which
covers technical solutions to reduce energy
consumption and improve energy efficiency. We
have initiatives across our markets, for example, in
Belgrade we have installed a new heat pump that
captures heat from external sources and heats
it up using electricity from renewable sources.
• Removing CO2 from our manufacturing
processes by using sterile air or nitrogen
instead of CO2 for all processes except
carbonating our drinks.
Scope 3: Reducing indirect emissions from our
value chain
Packaging, ingredients and coolers were our main
focus in scope 3, where over 90% of our carbon
emissions come from. So the work we do with
suppliers is vital to our success.
• Evolving our pack mix towards lower carbon
intensive packaging by increasing recycled
content, expanding reuse with sustained
growth in refillable packaging in our portfolio
(+1pp in transactions compared with last year),
leveraging packageless in relevant sub-channels
and eliminating unnecessary packaging. For
more detail, see packaging on page 27.
• Exceeded our Mission 2025 target of 50% energy-
efficient coolers in shops and outlets – now at
60%. This means we reduced CO2 e emissions by
100,829 tonnes compared with our 2017 baseline.
To continue on our emissions reduction journey,
the decarbonisation efforts of our suppliers are
critical. By the end of 2024, it was clear that our
engagement with suppliers had accelerated:
• 187 of our significant suppliers disclose
their emissions through CDP.
• 119 have already set, or have committed to set,
science-based targets.
• These 187 suppliers buy – on average – 19%
of their energy from renewable sources and
generate over 3% from their own renewables.
Earn our licence to operate continued
5
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Going greener:
We’re powering our work in sales and
distribution in Switzerland using electricity.
With over 177 branded electric cars, our
sales fleet is fully electric, and we expect 700
tonnes of CO2 emissions reduction annually.
We are also investing in our infrastructure for
charging stations for cars during the day and
trucks overnight across our facilities. We’ve
launched partnerships with transport suppliers
and the first e-trucks are on the road using
locally produced electricity in Austria and
Switzerland. We expect to save about 95
tonnes of CO2 emissions per e-truck in 2025.
We have introduced alternative fuels, HVO
and BioLNG in Italy, with the goal to expand
the usage of this solution in other BUs.
Absolute scope 1 and 2 CO2e emissions2
(’000 tonnes)
0
100
200
300
400
500
600
2.
Excluding Egypt.
563
538
481
432
426
443
-55%
2030 vs 2017
357
391
255
-4%
-14%
-23%
-24%
-21%
-36%
-55%
2017
2018
2019
2020
2021
2022
2023
2024
2030
goal
-31%
0
1000
2000
3000
4000
5000
Absolute scope 3 CO2e emissions3
(’000 tonnes)
0
1,000
2,000
3,000
4,000
5,000
2017*
2018
2019
4,400
4,359
4,195
2020
3,902
2021
4,046
2022
3,775
2023
2024
-21%
2030 vs 2017
3.
Emissions are recalculated due to conversion factors change and exclude Egypt.
3,684
3,791
2030
goal
3,485
-1%
-5%
-11%
-8%
-14%
-14%
-16%
-21%
Renewable and clean4 electricity in the
European Union and Switzerland (%)
0
20
40
60
80
100
2017
2018
2019
78
87
89
2020
97
2021
99
2022
99
2023
2024
100% in 2025
100
2025
goal
100
4.
Clean source means CHP using natural gas.
100
Growth pillars continued
Decarbonising our value chain
Our 2025 objective is for 50% of our manufacturing
plants to use renewable or clean energy. In 2024,
we achieved 53%1. This is the second year we have
exceeded this Mission 2025 goal, and all our EU
and Swiss manufacturing facilities continued to
use 100% renewable and clean electricity sources.
Significant step forward on our green fleet
In 2024, we reduced our own fleet’s carbon footprint
by 42%, a reduction of about 42,465 tonnes of CO2
compared with our baseline of 2017.
Our green fleet now comprises 47 % of our own
light fleet.
Emissions from our third party logistics providers
have increased by 4,6% (equivalent to 8,002
tonnes) compared with our baseline, while our
volume growth was 24,2 % over the same period.
Earn our licence to operate continued
5
Watch here: Green fleet in Switzerland
1. Excludes Egypt
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Growth pillars continued
Packaging
Towards a circular economy
Our objective is to create packaging for our drinks that
can be recycled or reused, so that it can be collected
and transformed into new recycled packaging, such
as an rPET bottle. This circular packaging approach
reduces our carbon emissions and helps to lower
packaging waste in the environment. We are making
progress towards this by:
• increasing recycled content with a focus on our
primary packaging
• building our in-house rPET production
infrastructure
• expanding reusable formats such as reusable
glass bottles
• supporting effective collection models in our
markets, including Deposit Return Schemes
in Europe and other types of locally relevant
Extended Producer Responsibility schemes.
Collecting and recycling
In 2024, we continued to focus our efforts on
increasing packaging collection rates across
our territories.
• From December 2023 to January 2025, new
DRS went live in Romania, the Republic of
Ireland, Hungary and Austria. DRS help to
consistently deliver high packaging collection
rates. For example, in Romania (launched
December 2023), results are encouraging with
an average return rate of 77% of containers sold
in the market in the last three months of 2024.
• In Nigeria, we built our first Coca-Cola System-
owned and operated packaging collection hub
in 2024. It opened in January 2025, and we
expect the hub to collect and process up to
13,000 metric tonnes of PET bottles once it is
fully operational. We continued to support the
work of the Food and Beverage Recycling
Alliance (FBRA) and other packaging collection
projects in the country.
• Our overall packaging collection rate in 2024
was 58%1. We expect this figure to increase
significantly in 2025 when the full benefit from
recent system launches in several countries
is realised.
rPET
We make our packaging more sustainable by
investing in recycled content and producing our
own recycled PET (rPET). This gives us a high-
quality, steady supply of foodgrade rPET in selected
markets, and reduces supplier and transport costs.
Our Mission 2025 objective is for 35% of the PET
that we use across markets to be rPET. In 2024, we
made significant progress, increasing to 24% rPET
compared with 16% in 2023. We have committed to
achieving 50% rPET in plastic bottles across our
portfolio in EU markets and Switzerland by 2025. In
these markets, the rPET we use increased to 46% by
December 2024. In 2025, we expect to achieve over
60%, which exceeds our target.
Expanding reusable packaging
We keep our focus on delivering programmes that
will increase reusable packaging – both refillable glass
bottles and drinks dispensers, such as fountains or
freestyle machines that use reusable vessels.
• In 2024, across all our territories, 13% of the
drinks sold were in returnable containers and
4% were through dispensers2. This implies an
increase of 1pp in transactions in returnable
containers compared with the previous year,
with Africa leading the growth supporting both
waste reduction and affordability. Dispensers,
which are mostly used in sub-channels such as
quick service restaurants, cinemas and leisure,
are flat overall. This increase is in line with our
Pack Mix of the Future vision where reusable
packaging is expected to play a bigger role.
• We continued to help our customers and
consumers adopt new reuse models. In 2024,
we worked with a leading university in Italy to
deploy the first circular packaging campus.
This allows students to enjoy our products
while minimising the amount of packaging.
We have installed new dispensers to offer
great-tasting ‘packageless’ drinks to be
consumed with reusable vessels. We also
implemented a full bottle-to-bottle process
by offering a wide range of drinks in 100%
rPET bottles that can be collected through
a reverse vending machine. The empties are
then sent for recycling, and the flakes are used
in our rPET production facility. We plan to offer
similar schemes in 2025 across our territories
once the business model is validated.
Eliminating unnecessary packaging
• In 2024, we trialled a water-based adhesive
that secures the layers of pallets together and
eliminates layer pads in Poland, Serbia, Croatia,
Romania and Nigeria. This has saved almost 2,000
tonnes of corrugated cardboard packaging.
• We’ve completed testing a new, high-
performing stretch film in Ireland and Austria
that uses 30% less material and we will include
it in our sparkling range in 2025.
Increasing recycled material in secondary
packaging
• We rolled out 100% post-consumer recycled
shrink film for secondary packaging in Italy,
Poland and Switzerland after a successful pilot.
Water
We use water in every part of our business: it is the
main component of our drinks, is needed to grow
core ingredients such as sugar and fruit, and helps
us to clean, wash and sanitise our production
equipment. We recognise the need to protect
this valuable resource, especially in areas of our
operations where water is scarce or at risk. In
2024, we invested €5.2 million in water saving
and water efficiency programmes.
Customer collaboration
We partnered with Carrefour Italy and
developed a three-year sustainability-driven
strategic roadmap with the objective to increase
the share of beverages sold in rPET bottles
by putting various initiatives in place. ‘Let’s
recycle together’ was the first initiative that
was deployed in co-operation with Marevivo,
a local NGO protecting sea and environment.
Dedicated in-store activations aimed to
educate consumers on how to properly recycle
beverage packaging and demonstrate the role
that our 100% rPET portfolio plays in circular
packaging. This joint initiative generated
incremental sales and showed better results
than previous activations, creating value for
both us and Carrefour.
Supporting DRS in Europe
DRS are fast becoming the system of choice
in Europe.
They consistently deliver high rates of
collection, typically over 90%, with an
exceptional quality of foodgrade feedstock for
recycling. This in turn supports higher recycling
yields for bottle-to-bottle and can-to-can
recycling compared with a co-mingled
collection approach.
Nine of our Coca-Cola HBC markets now have
DRS in place, with two more expected in 2025
and up to 10 more anticipated in 2026-2028.
Earn our licence to operate continued
5
1. Excludes Egypt.
2. Numbers refer to transactions and include Egypt.
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Growth pillars continued
watershed in Bulgaria, and improve land and water
use in the context of supply chain, agricultural
practices and natural water retention in Bulgaria,
Romania and Hungary.
People and communities
We focus on making a positive impact in different
ways in the local communities where we operate,
such as through financial support, volunteering
and training for young people.
Flood support for communities impacted by
devastating flooding
In 2024, the Coca-Cola HBC Foundation donated
€1.55 million to communities impacted by
devastating floods in Europe and Nigeria. These
grants will support projects that target local needs,
for example, rebuilding houses and community
centres, providing food and emergency supplies,
and replacing damaged medical equipment. Founded
in 2023, the Coca-Cola HBC Foundation continues
our tradition of giving back to our communities.
Support for Ukraine
Since the beginning of the conflict in Ukraine, the
Coca-Cola System and The Coca-Cola Foundation
have committed to donating US$40 million. In 2024,
we helped in the following ways:
• Donated €5 million for 60 mobile boilers to
provide heating and support to communities, in
collaboration with the Ukrainian Red Cross Society.
This brought the total number of boilers donated
to 105. In partnership with governmental bodies,
the Ukrainian Red Cross ensures the boilers are
distributed to the most vulnerable communities.
• In 2024, we started rebuilding a kindergarten
that was completely destroyed in Bohdanivka,
in the Kyiv region. This initiative was supported
by the Coca-Cola System. In 2023, The Coca-
Cola Company contributed US$1.2 million, and
Coca-Cola HBC donated US$1.8 million. We
expect construction to be completed in 2025.
• At the end of 2024, we continued the tradition
of spreading joy and supporting Ukrainians during
the winter holidays season, starting with the
donation of 1.5 million specially produced Coca-
Cola bottles to the most vulnerable Ukrainians.
Watch here: The Living Danube Partnership
Training young bartenders
In Greece, we collaborated with top HoReCa
customers and our recognised Brand
Ambassadors to offer free masterclasses
to 570 bartenders and baristas, levelling
up their capabilities on modern mixology,
spirits, and coffee trends and techniques.
This initiative equipped participants with
advanced skills and industry connections,
and offered globally recognised scholarships
in coffee and spirits. In Romania, we have
launched the Barmasters Academy to offer
specialised bartending and barista training
for aspiring HoReCa professionals.
Partnering with HoReCa customers, this
programme offers practical, high-quality
learning experiences for young people.
Watch here: Red Cross support
Water reduction in our operations
Our Mission 2025 objective is to reduce the
water we use in our production plants located
in water-risk areas by 20%, compared with our
2017 baseline1.
In 2024, we took an important step forward and
started to certify our 60 beverage production
plants in all markets with a new water efficiency
management standard ISO 46001. This focuses
on water efficiency and sets targets to improve
water consumption and means all our plants will
be audited and meet the same standard. So far,
42% of our plants have been certified and we
will complete the rest by the end of 2025.
We used new and innovative approaches to
optimise water use in our production processes.
For example, zero-liquid discharge equipment
in Poland recycles water instead of discharging
it into the nearby river. We then use this water
in processes that do not come into contact
with products or packaging.
Working with our suppliers
We measure the water consumption of our
critical suppliers to assess their basin and
operational water risks using the Water Risk
Filter methodology. We then work with suppliers
operating in high-risk areas to develop plans so
they can reduce their water use.
Water stewardship community projects
In 2024, we started new projects in four more water
priority locations and we now report at least one
water stewardship project in 16 out of our 19 water
priority locations. In Italy, we are partnering with the
municipality to restore and maintain Rionero city
fountains. In Bulgaria, we have started a long-term
project to increase the water supply capacity in
two municipalities, which will help add more than
1.0 million m3 of water each year.
Forest Infiltration Area, Italy
In Nogara, Italy, we launched a joint project that will
add up to 1.5 million m3 of water every year to the
local aquifer near our production plant. The Forest
Infiltration Area – a joint project between Coca-Cola
HBC Italy and the Consorzio di Bonifica Veronese –
will be a new network of canals, trees and shrubs that
will revitalise fresh water. Water extracted from the
River Adige will continuously flow into the network of
canals to refresh the groundwater acquifer. From this
aquifer, hundreds of local wells will be used to extract
water for agriculture and community use.
Living Danube Partnership
This year, we joined the Living Danube Partnership
2.0 (LDP), the continuation of LDP 1.0, which
started 10 years ago between WWF-CEE and The
International Commission for the Protection of the
Danube River (ICPDR). Funded by The Coca-Cola
Foundation it helps to restore the vital wetlands and
floodplains along the Danube river.
In addition to the support of The Coca-Cola
Foundation and Coca-Cola Europe, we are
supporting LDP 2.0 to demonstrate and promote
good water stewardship and explore additional
opportunities for collective action on the Iskar
Earn our licence to operate continued
5
#YouthEmpowered
By the end of 2024, we had trained 1,119,850
young people since the programme started in
2017, exceeding our Mission 2025 target one
year early. #YouthEmpowered focuses on young
people who are not in employment, education
or training (NEET) or at risk of becoming NEET.
We offer skills, guidance and support to young
adults between 18 and 30, along with a network
connecting young people to future employment
and development opportunities.
Volunteering
3,793
employees have volunteered
across all our markets
1. We have 19 water priority locations, including Armenia, Bulgaria,
Cyprus, Greece, Italy and Nigeria and excluding Egypt.
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Growth pillars continued
Sustainable sourcing, nutrition
and biodiversity
Sustainable sourcing
This year, we sourced 96% of our key ingredients
from sustainable sources, in line with The
Coca-Cola Company’s Principles for Sustainable
Agriculture. We aim to protect forests, natural
habitats, biodiversity and ecosystems, and
manage soil and agrochemicals in a sustainable
way. Upholding human and workplace rights,
ensuring animal health and welfare, and helping
build thriving communities are key parts of our
principles.
Nutrition
We want to continue delivering great-tasting
soft drinks that support balanced diets. We
do this through:
• Less sugar, more choices: we are committed
to reducing calories per 100ml of sparkling soft
drinks by 25% between 2015 and 2025 across
all our markets and have achieved a reduction
of 18% so far. Zero formulations, such as Fanta
Zero, were introduced in Czech Republic,
Slovakia, Switzerland, Serbia and Bulgaria.
• New and different drinks: we are responding to
changing consumer preferences by innovating
our recipes and pack sizes, offering more
choice. In 2024, we launched Powerade Zero
in Italy, Austria and Greece, Cappy Lemonade
Pineapple Zero in Bulgaria and Serbia, as well as
Coca-Cola K-Wave and Coca-Cola Oreo limited
editions in select markets.
• Informed decisions: we are providing clear and
transparent nutrition information about what’s
inside our drinks, such as the Guideline Daily
Amount and traffic-light labels on our core
sparkling drinks.
• Responsible marketing: we are committed
to not marketing any of our drinks directly to
children under 13, and do not offer any soft
drinks in primary schools.
• Promoting low- and no-sugar choices:
we are encouraging more people to choose
low- and zero-sugar drinks through marketing
campaigns that promote low/no sugar
alternatives and often showcase different
variants.
Read more on p.15
A good day on Romania’s
Via Transilvanica
In 2024, the largest clean-up on Via Transilvanica in Romania
mobilised more than 3,400 volunteers from 84 schools.
They joined educational workshops and a large-scale clean-up
with more than 7,800 kilograms of waste being collected from
nature, covering over 1,000 km. The initiative also included
developing five drinking water sources along the route.
Good Day on Via Transilvanica is one of the largest projects of the
Tășuleasa Social Association in partnership with Coca-Cola HBC
Romania, through our local sustainability platform After Us.
Priorities in 2025
• Continue delivering on our Net Zero
Transition Plan
• Support the roll-out of new DRS and other
packaging collection schemes
• Further drive our packaging circularity,
focusing on the % of recycled content and
reusable packaging formats
• Accelerate joint sustainability programmes
with our customers
• Continue with social initiatives, focusing on
#YouthEmpowered
• Support our communities through the
Coca-Cola HBC Foundation
• Secure compliance with the EU’s
Deforestation Regulation
• Develop a new set of our sustainability
targets beyond 2025
UN Sustainable
Development Goals
Our initiatives in communities help advance
the global objectives of good health and
wellbeing, and sustainable cities and
communities. Our initiatives to empower
youth and women contribute to the
goals for quality education, decent work
and economic growth, sustainable cities
and communities, and partnerships. Our
initiatives regarding water stewardship, CO2
emissions reduction and waste reduction aid
global progress towards the SDGs for clean
water and sanitation, and climate action.
Earn our licence to operate continued
5
Biodiversity
We aim to achieve a net positive impact on
biodiversity in critical areas in our supply chain
by 2040 and eliminate deforestation in our supply
chain by 2025. This is a critical priority as we
develop our sustainability strategy and
business model.
Our main focus is avoiding deforestation from
agricultural commodities, by focusing on how we
source wood for our paper packaging materials.
The Principles for Sustainable Agriculture
(PSA) target eliminating deforestation for our main
ingredients by 2025 and are aligned with
recommendations by the Science Based Target
initiative for companies with Forest, Land and
Agricultural (FLAG) activities.
We are also working cross-functionally to meet
the EU Deforestation Regulation by the end of
2025. We voluntarily report on sites next to legally
protected areas. It has been externally confirmed
that these sites have no negative impact on all
the water sources we use in direct operations.
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-2
-1
0
1
2
3
14
2021
2022
2023
14.0
-1.5
1.7
2024
2.8
0
5
10
15
20
2021
2022
2023
5.8
15.9
2024
10.7
15.0
0
5
10
15
25
20
2021
2022
2023
20.6
14.2
2024
13.8
16.9
Tracking our progress
Key performance indicators
We measure performance against
our strategic objectives using
specific key performance indicators
(KPIs). These KPIs allow us, and our
stakeholders, to track our progress
in delivering on our targets.
How we measure our progress
Volume is measured in unit cases, where
one unit case represents 5.678 litres. We grow
volume as we expand per-capita consumption
of our products and expand into new markets or
categories. Since the start of 2022 we measure
volume growth on an organic basis1.
What happened in the year
Volumes increased by 2.8% on an organic basis,
with all our strategic priority categories driving
growth, Sparkling +1.5%, Energy +30.2% and
Coffee +23.9%.
Link to remuneration
Revenue (weighting 40%) is used to assess
business performance for the purpose of
the annual Management Incentive Plan (MIP)
bonus award, and volume growth drives
revenue performance.
Full description of the MIP p.228
How we measure our progress
We measure revenue per case and revenue
on an organic basis to allow better focus on
the underlying performance of the business.
We grow organic revenue per case through
pricing and improving mix.
What happened in the year
Organic revenue per case grew by 10.7%,
driven by targeted revenue growth management
(RGM) initiatives. Organic revenue grew by
13.8%, driven by focused execution of our
strategic priorities.
Link to remuneration
Revenue is a performance measure used in
the calculation of the annual Management
Incentive Plan (MIP) award as described above.
Full description of the MIP p.228
1. For details of APMs, refer to ‘Definitions and reconciliations of alternative performance measures (APMs)’ on pages 345 to 351.
Growth pillars
1
Leverage our unique
24/7 portfolio
2
Win in the marketplace
Organic1 volume growth (%)
Organic1 revenue per case growth (%)
Organic1 revenue growth (%)
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0
2
6
4
8
12
10
2021
2022
2023
11.6
10.1
2024
11.1
10.6
0
200
600
400
800
1,200
1,000
2021
2022
2023
831.0
929.7
2024
1,192.1
1,083.8
0
1
2
3
5
4
6
8
7
2021
2022
2023
7.5
6.4
2024
6.3
6.6
0
5
10
15
20
2021
2022
2023
14.8
14.1
2024
18.3
16.4
Comparable EBIT1 margin (%)
ROIC1 (%)
Comparable EBIT1 (£m)
Capex1 as a percentage of NSR (%)
Tracking our progress continued
Key performance indicators continued
Growth pillars
3
Fuel growth through
competitiveness
and investment
How we measure our progress
Using comparable EBIT and comparable EBIT
margin allows us to adjust for one-off items that
impact comparability of performance year on
year. We generate positive operational leverage
as we grow revenues on our efficient cost base.
What happened in the year
Comparable EBIT grew by 10.0% on a reported
basis and by 12.2% on an organic basis.
Comparable EBIT margin improved 40 basis
points on a reported basis to 11.1%, down
20 basis points on an organic basis.
Link to remuneration
Comparable EBIT (weighting 40%) is used to
assess business performance for the purpose
of our MIP award.
Full description of the MIP p228
How we measure our progress
We measure capital expenditure (Capex) as
a percentage of net sales revenue (NSR), and
return on invested capital (ROIC), to ensure
prudent capital allocation and efficient working
capital management. Disciplined investment
supports our growth.
What happened in the year
Capex as a percentage of revenue was 6.3%,
slightly below our target range of 6.5% to 7.5%,
impacted by low levels of investment in Russia.
ROIC expanded by 190 basis points to 18.3%,
driven by higher profit and lower capital employed.
Link to remuneration
ROIC is given a 42.5% weighting in the
assessment of performance used to determine
long-term Performance Share Plan (PSP) awards.
Full description of the PSP p.228
1. For details of APMs, refer to ‘Definitions and reconciliations of alternative performance measures (APMs)’ on pages 345 to 351.
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Tracking our progress continued
Key performance indicators continued
0%
20%
60%
40%
80%
100%
Global top
decile norm1
2023
86%
2024
88%
86%
0%
10%
30%
20%
40%
50%
2025
target
2023
50%
2024
43.5%
41.8%
Employee engagement score
Percentage of managers who are women
Growth pillars
4
Cultivate the
potential of
our people
How we measure our progress
We conduct an engagement survey with
an independent third party and measure
our results against the norm for companies
which perform highly on this metric.
What happened in the year
Our employee engagement score increased,
outperforming the global top-decile norm
by two percentage points.
Link to remuneration
Maintaining our high engagement score
is one of the CEO’s individual performance
metrics. These are used along with business
performance measures to determine the
CEO’s annual MIP bonus award.
Full description of the MIP p.228
How we measure our progress
One of our Mission 2025 commitments is to
have at least 50% of management positions
held by women by 2025.
What happened in the year
In 2024 women held 43.5% of management
roles, compared with 41.8% in 2023. Our efforts
to create a more diverse work environment
were recognised externally in 2024 with nine
diversity-related awards.
Read more in Cultivate the potential
of our people p.20
1. Perceptyx Global Top Decile Norm.
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Tracking our progress continued
Key performance indicators continued
Growth pillars
5
Earn our licence
to operate
How we measure our progress
Progress on Mission 2025 as well as progress
towards our NetZeroby40 ambition.
What happened in the year
We made progress against most areas of our
commitments; however, we need to accelerate
our improvement in water reduction and health
and safety.
Link to remuneration
Our efforts and ambitions are long term and
cumulative, therefore greenhouse gas reduction
is used to determine long-term PSP awards.
Greenhouse gas reductions have a 15% weighting
in PSP determinations.
The benefit of this KPI is that it is quantifiable,
and several of our Mission 2025 commitments
feed into its progress.
Read more on p.240 to 241
Mission 2025 – our sustainability commitments
Sustainability is integrated into many aspects
of our business. It is fundamental to our business
strategy, which aims to create and share value
with all of our stakeholders.
Our Mission 2025 approach is based on our
stakeholder materiality matrix and is fully aligned
with the United Nations Sustainable Development
Goals (SDGs) and their targets. Our six key focus
areas reflect our value chain: reducing emissions;
water reduction and stewardship; packaging;
ingredient sourcing; nutrition; and our people
and communities.
The table provides data on the progress
of each of the six sustainability pillars.
Key to performance status
Each of the Mission 2025 commitments is
broken down into a series of annual targets that
need to be met in order to be fully on track with
our 2025 goal. The colour coding below reflects
the current status in relation to the desired
position at this point in time on the trajectory
towards 2025 and our agreed action plans, i.e.:
on track
progress made but acceleration required
no significant progress
Sustainability areas and
material issues and topic of interest
UN’s Sustainable Development Goals (SDGs)
and their targets
2025
commitments1
2024
performance
Status
Climate and
renewable energy
• E1 – Climate change
mitigation
• E1 – Energy
7.2
7.3
9.4
11.6
30%
reduction in carbon ratio in
direct operations
42%
12.2
13.1
50%
increase in energy-efficient coolers
to half of our coolers in the market
60%
50%
of our total energy from renewable
and clean2 sources
53%
100%
total electricity used in the EU
and Switzerland from renewable
and clean2 sources
100%
Water reduction
and stewardship
• E3 – Water consumption
• E3 – Water withdrawal
• E2 – Pollution of water
• S3 – Water and sanitation
6.1
6.4
6.5
6.6
9.4
11.6
20%
water reduction in plants
located in water-risk areas
(water priority locations)
7%
Impact from Russian operations. Further
implementation of successful practices and
innovations for those locations is planned.
12.1
12.2
12.4
15.1
17.17 100%
help secure water availability for all
our communities in water-risk areas
(water priority locations)
84%
Coca-Cola HBC Integrated Annual Report 2024
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Financial Statements
Corporate Governance
Strategic Report
Tracking our progress continued
Key performance indicators continued
Sustainability areas and
material issues and topic of interest
UN’s Sustainable Development Goals (SDGs)
and their targets
2025
commitments1
2024
performance
Status
Packaging and Waste
management
• E5 – Resource inflows,
including resources
• E5 – Resource outflows
related to products
and services
• E2 – Pollution of soil
8.4
9.4
11.6
75%
help collect the equivalent of 75% of our
primary packaging
58%
12.1
12.2
12.5
14.1
17.17 35%
of total PET used from recycled PET
and/or PET from renewable material
24%
Significant progress from 16% last year.
100%
of consumer packaging to be recyclable3 100%
Ingredient sourcing
• E1 – Climate change
mitigation
• E4 – Land-ecosystem use
change
• S2 – Secure employment
• S2 – Adequate wages
• S2 – Training and skills
development
8.3
8.8
13.1
9.4
12.1
12.2
12.4
12.6
12.7
100%
of our key agricultural ingredients
sourced in line with sustainable
agricultural principles
96%
Nutrition
• S4 – Consumer’s
health and safety
• S4 – Responsible
marketing practices
3.4
12.8
25%
reduce calories per 100ml of sparkling
soft drinks (all CCHBC countries)4
18%
Our people and
communities
• S1 – Health & Safety
• S1, S2 – Secure
employment
• S1, S2, S3 – Training
and skills development
• S1 – Diversity
• S1 – Gender equality
and equal pay for work
of equal value
• S3 – #YouthEmpowered
(company-specific)
3.4
3.6
4.3
4.4
5.5
10%
community participants
in first-time managers’
development programmes
10%
8.5
8.6
8.8
10.2
10.4
11.6
1M
train one million young people through
#YouthEmpowered
1,119,850
Cumulative number 2017-2024;
2024-only number is 174,902.
12.2
12.4
16.7
17.16
17.17 20
engage in 20 zero-waste partnerships
(city and/ or coast)
205
10%
of employees take part in volunteering
initiatives
13%
ZERO
target zero fatalities among
our workforce
ZERO
Egypt is excluded from Mission 2025 however
we report one employee fatality there.
50%
reduced lost time accident rate
per 100 FTE
20%
The main causes: falls / slips / trips, road
accidents and contact with machinery and tools.
50%
of managers are women
43.5%
Female retention, capability building, balanced
external hiring, country specific targets and
plans, see page 22.
Note: The 17 SDGs are an urgent call for action by all countries – developed and developing – in a global partnership.
Each of the 17 goals has very specific targets and in the number references above we disclose the SDG targets
relevant for our business, where we contribute positively to the UN SDG agenda, for example, 3. 4, 8.5.
1.
Baseline 2017. Egypt is excluded as it was not foreseen in the baseline year nor in the target year.
2.
Clean source means CHP using natural gas.
3.
Technical recyclability by design.
4.
Baseline 2015.
5.
Supported by The Coca-Cola Foundation
Coca-Cola HBC Integrated Annual Report 2024
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Strategic Report
Chief Financial Officer’s letter
Disciplined execution powers another year of strong growth
I am very proud of our achievements,
not only in delivering another year
of strong financial performance and
disciplined capital allocation, but
also in developing our talent and
capabilities to be truly future ready.”
Strong execution drives continued
profitable growth
As I reflect on my first year as CFO, I am very proud
of the strong financial performance of the business
in 2024, while we continued to navigate through
geopolitical and macro-economic challenges.
In 2024, organic revenue growth was 13.8%
(up 5.6% on a reported basis), and we saw good
organic volume growth of 2.8%. This volume
growth was broad-based, with growth in each
segment, and driven by our strategic priority
categories of Sparkling, Energy and Coffee.
Organic revenue per case increased by 10.7%,
driven by targeted revenue growth management
actions. Pricing remained the most important
driver of revenue per case as we took action to
mitigate ongoing inflation, currency devaluation,
regulation and taxation in specific markets.
Comparable gross profit grew by 8.9%, and
gross profit margin expanded by 110 basis points
to 36.1%. We benefitted from strong top line
growth, combined with the easing rate of inflation
in our key commodities, with Comparable COGS
per unit case up 1.0%. Comparable operating
expenses as a percentage of revenue increased by
70 basis points to 25.1% in 2024, impacted by the
non-cash foreign currency remeasurement of an
intercompany loan in Egypt in the first half of 2024,
as well as continued investment in the business.
Comparable EBIT increased by 10.0% on
a reported basis to €1,192.1 million, driven
by growth across our markets, only partially
offset by negative foreign currency movements.
Our comparable EBIT margin was 11.1%, up 40
basis points on a reported basis, benefitting
from operational leverage. On an organic basis,
comparable EBIT increased by 12.2%, and margins
contracted 20 basis points, mainly due to negative
foreign currency movements.
Comparable basic EPS grew 9.5% in 2024 to
€2.275, supported by strong profit delivery
and effective management of financial costs.
ROIC remains an important KPI and in 2024 ROIC
expanded by 190 basis points to 18.3%, driven
by higher profit and lower capital employed.
Capital allocation discipline
Our priorities for capital allocation remain
unchanged and are set in service of our strategy
and vision to be the leading 24/7 beverage partner.
We continue to invest in the business organically.
Capital expenditure was €679.3 million in 2024,
or 6.3% of revenue, as we invested in growth
initiatives such as production capacity, ongoing
automation in supply chain, digital and data
solutions, and energy-efficient coolers.
The Group has a progressive dividend policy, with
a target payout ratio of 40% to 50%. The Board
of Directors has proposed an ordinary dividend
of €1.03 per share for 2024, an increase of 11%
from €0.93 per share paid in 2023. The dividend
payment will be subject to shareholders’ approval
at our Annual General Meeting.
We also look to make value accretive acquisitions
that further enhance our portfolio or our capabilities.
In 2024 we focused on integrating our most recent
acquisition, Finlandia Vodka, into our business.
Our capital discipline has also allowed us to drive
higher returns to shareholders, while maintaining
a strong balance sheet. We have progressed
well with our share buyback programme, having
returned €226 million to shareholders, since its
launch in November 2023. At the close of the
year net debt to comparable EBITDA was 1.0x.
Overall, I’m really pleased that we’re successfully
achieving a combination of investment in the
business, strong improvements in ROIC and
increased shareholder returns.
Please click here to view our 2024 full year results:
https://www.coca-colahellenic.com/en/investor-relations/results-reports-
presentations
Accelerating digitalisation and
enhancing our strong talent pipeline
We are accelerating the digitalisation of the
finance function with the development of new
tools and capabilities. For example, we are
enhancing our End-to-End planning capabilities by
implementing new systems and tools while
connecting different parts of the organisation in
an integrated streamlined process.
We are also leveraging our digital platforms and
technologies for automation, reporting, insights, and
analytics, that will allow our people to focus on value
creation and growth generative business partnering.
Finally, through our dedicated processes and
programs on talent development we are building
a strong talent pipeline of future ready leaders.
Looking ahead
Overall, we have delivered a strong performance in
2024, in a challenging business environment. In 2025,
we expect the macroeconomic and geopolitical
backdrop to remain challenging, but we have
high confidence in our 24/7 portfolio, bespoke
capabilities, our people and the opportunities
for growth in our diverse markets.
At our FY 2024 results on 13 February 2025, we
shared that we expect to achieve organic revenue
growth in the range of 6% to 8% and to deliver
organic EBIT growth in the range of 7% to 11%
in 2025. We expect to also make continued
progress towards our medium-term growth
targets in 2025 and beyond.
Anastasis Stamoulis
Chief Financial Officer
Coca-Cola HBC Integrated Annual Report 2024
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Strategic Report
Segment financial highlights
Established
Developing
Emerging
Volume breakdown
22%
16%
62%
Net sales revenue
breakdown
Established
33%
Developing
Emerging
22%
45%
Comparable EBIT
breakdown
Established
33%
Developing
Emerging
19%
48%
Total Tax by category
Corporate Income Tax
56.8%
Withholding Tax
Payroll Taxes
3.6%
31.2%
VAT (cost)
3.1%
Other taxes
5.3%
2024 borrowing structure
Bonds
€3,372.3m
Commercial paper
Leases
€215.0m
€254.0m
Other
€139.3m
Chief Financial Officer’s letter continued
Established markets
Net sales revenue (NSR) grew by 3.3% and 4.3% on
an organic and reported basis respectively. Volume
increased by 0.3% on an organic basis. Organic
growth in net sales revenue per case was 3.0%,
benefitting from pricing actions and package mix,
with a 110bps improvement in single-serve mix.
Comparable EBIT increased by 1.8%, broadly
unchanged on an organic basis. Comparable EBIT
margin was 11.1%, down 40bps on an organic basis,
due to a step up in investment to drive growth.
2024
2023
% change
reported
% organic
change
Volume (m unit cases)
631.3
628.7
0.4%
0.3%
Net sales revenue (€ million)
3,501.3 3,358.5
4.3%
3.3%
Operating profit (EBIT) (€ million)
385.8
379.2
1.7%
Comparable EBIT (€ million)
388.0
381.1
1.8%
-0.1%
Comparable EBIT margin (%)
11.1
11.3
-30bps
-40bps
Total taxes (€ million)1
194.1
163.8
18.5%
2024
2023
% change
reported
% organic
change
Volume (million unit cases)
482.6
471.0
2.5%
2.5%
Net sales revenue (€ million)
2,385.2 2,088.6
14.2%
12.7%
Operating profit (EBIT) (€ million)
223.6
152.6
46.5%
Comparable EBIT (€ million)
227.4
153.8
47.9%
39.6%
Comparable EBIT margin (%)
9.5
7.4
220bps
180bps
Total taxes (€ million)1
101.6
73.4
38.3%
2024
2023
% change
reported
% organic
change
Volume (million unit cases)
1,800.6 1,735.8
3.7%
3.7%
Net sales revenue (€ million)
4,867.9 4,736.9
2.8%
23.3%
Operating profit (EBIT) (€ million)
576.0
421.8
36.6%
Comparable EBIT (€ million)
576.7
548.9
5.1%
13.0%
Comparable EBIT margin (%)
11.8
11.6
30bps -110bps
Total taxes (€ million)1
220.0
243.0
-9.5%
Developing markets
NSR grew by 12.7% on an organic basis, or by 14.2%
on a reported basis. Volume grew by 2.5% organically.
Net sales revenue per case grew 10.0% organically,
benefitting from pricing actions, as well as favourable
category mix and the rollout of Finlandia distribution.
Comparable EBIT increased by 39.6% and 47.9% on an
organic and reported basis respectively. Comparable
EBIT margin was 9.5%, up 180bps on an organic basis,
as operational leverage and cost control more than
offset COGS inflation.
Emerging markets
NSR grew by 23.3% on an organic basis, or by 2.8%
on a reported basis, impacted by currency headwinds
from the Nigerian Naira, Egyptian Pound and Russian
Rouble. Volume grew by 3.7% organically. NSR per
case grew 18.9% organically, primarily due to pricing
actions taken to manage the impact of currency
devaluation, regulation and cost inflation. Comparable
EBIT grew by 13.0% on an organic basis and 5.1% on
a reported basis. Comparable EBIT margin was 11.8%,
down 110bps on an organic basis, impacted by foreign
currency remeasurement of balance sheet items in H1.
1. Total taxes include corporate income tax, withholding tax and deferred tax, as well as social
security costs and other taxes that are reflected as operating expenses; as per IFRS accounts.
Taxes we contribute to
our communities
Coca-Cola HBC stands firmly
behind the principle of paying
relevant taxes in the countries
where value is created and
ensuring that we are fully
compliant, not only with the letter
of tax laws and regulations, across
all jurisdictions we operate in, but
with the spirit as well. In addition,
we commit to being open and
transparent with tax authorities
about the Group’s tax affairs and
to disclose relevant information to
enable tax authorities to carry out
their reviews effectively, efficiently
and without unwarranted delays.
Coca-Cola HBC Integrated Annual Report 2024
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Corporate Governance
Strategic Report
DMA process followed in 2024
Coca-Cola HBC has performed rigorous
materiality assessments for many years.
We assess our impacts on people and the
environment as part of our daily activities,
engaging with relevant stakeholders
and experts, and considering emerging
sustainability trends. This approach
allows us to actively identify and
manage our evolving impacts, risks and
opportunities (IROs) as the business
develops. Our robust risk management
process integrates risks and opportunities
(ROs) deriving from sustainability issues.
We conduct our formal materiality analysis
annually. For 2024, we undertook a double
materiality analysis (DMA) as per the European
Sustainability Reporting Standards (ESRS)
requirements, and this is our first year of
reporting on this basis.
We included all main business activities (core
and secondary); main business model inputs
(raw and packaging materials and other supplies);
main business model outputs (main products and
services from all business segments); and main
externalities (i.e. greenhouse gas emissions and
waste). We followed a top-down approach, at Group
level, for IRO identification, assessment and
prioritisation involving our internal Group experts.
In the final assessment of the impact, we took
all our subsidiaries into consideration, using
specific local data for our manufacturing plants
and Tier 1 suppliers.
Impact
materiality
Financial
materiality
Double materiality
• Map the value chain activities
• Identify the affected
stakeholders
• Define the impact universe
• Define the time horizons
• Define the criteria for
impact assessment
• Assess the impact
• On the environment and
on the people
• Positive or negative
• Actual and potential for
three time horizons
• Separated for each part of the
value chain
• Link the impact to ESRS topics
• Define the sources and
methodology for RO identification
• Define the time horizons
• Assess the magnitude of the
financial effect (quantitative
or qualitative)
• Assess the likelihood of RO
occurrence
• Link ROs to ESRS topics
• Define the financial
materiality threshold
• Create a list with the
financially material ROs
• Define the impact materiality
quantitative threshold
• Recognise the material
impacts, based on the
materiality threshold
Create DMA table and
link it to the
ESRS topics
Finalise DMA
methodology
document
Approval by
management and
Board committees
External verification
by a third-party
assurance provider
Publish DMA table
Focusing on the impact
As ESRS topics include both impacts (i.e. pollution
and climate change) and causes of impacts (i.e.
waste and energy), our approach was to keep the
impact analysis on the ‘impact’ level, and then to
link the prioritised impacts to the respective ESRS
topics/sub-topics for reporting purposes.
Environmental impacts
We leveraged the impact drivers of nature change
under the Taskforce on Nature-related Financial
Disclosures (TNFD), to identify a suitable impact
level universe under a commonly established
impact taxonomy.
We developed specific quantitative criteria, based
on scientific tools and reports (such as the WWF
Biodiversity Risk Filter, the WWF Water Risk Filter
and the SBTN Unified Water Availability Dataset),
relevant legislative frameworks, standards and
guidelines, compliance management systems
and various ISO audit reports.
People impacts
For a commonly established impact taxonomy for
social and socio-economic impacts, we leveraged
the United Nations Environment Programme
(UNEP) Impact Radar 1.
We use generic qualitative criteria, including
assessment reports of impacts on people,
information from legal reviews, compliance
management systems, the GRI Content Index,
the UN Global Compact Communication on
Progress and various internal reports.
Identify and assess the
actual and
potential impacts
Set thresholds
and prioritise the
impacts
Identify and assess
the risks and
opportunities
Set thresholds and
prioritise risks and
opportunities
1 . Impacts to the environment under the UNEPFI were not used,
as we used the TNFD categorisation of impact drivers instead.
Double materiality assessment (DMA)
Resulted in topics being material from either an impact perspective or financial perspective or both
Coca-Cola HBC Integrated Annual Report 2024
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Corporate Governance
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Methodology
We assessed the positive and negative impacts
on nature and people, considering 2024 actual and
potential impacts in three different time horizons
(short – 2025, medium term – 2030 and long term
– 2030+). Each part of our value chain (upstream,
direct (own) operations and downstream) was also
assessed separately.
We assessed the severity (negative impact)
and significance (positive impact) of each impact,
and likelihood of occurrence of potential impact.
• Negative impact: scale (how grave the impact
is), scope (how widespread the impact is)
and irremediability (how easy the impact
can be resolved).
• Positive impact: scale (how beneficial the impact is)
and scope (how widespread the impact is).
Quantitative thresholds range from 1 to 5,
where 1 is low severity/significance/likelihood,
while 5 is high severity/significance/likelihood.
After applying a specific formula, this creates
a five-step scale for each impact: critical, major,
moderate, minor and insignificant. The ‘major’
and ‘critical’ impacts are material.
Experts’ view and stakeholder
involvement
In the initial assessment, we considered the
internal experts’ views from different departments.
We then engaged with external subject matter
experts and impacted stakeholders in 26 dedicated
interviews (including investors, shareholders,
customers, suppliers, industry associations,
NGOs and IGOs, community participants and
international institutions), which were performed
by an independent organisation.
This created a solid evidence base to inform the
DMA, including: a) the perspective of affected
stakeholders to understand the level of impact
materiality and manage the total level of disclosure
required; and b) better understanding the nature
of the impacts, to guide any disclosure, in line with
the needs of users of sustainability statements.
The secondary objective was to understand the
strategic implications to guide ongoing development
and execution of our sustainability strategy,
programmes and stakeholder engagement.
The output of the interviews confirmed that
the topics of greatest interest to our external
stakeholders are packaging (in-flow and out-flow),
climate change mitigation, water and consumers’
health concerns.
Financial materiality
For the identification of ROs, linked to either
principal or emerging risk categories, we leveraged
our risk universe and our Business Resilience
Framework, which is described in detail in the
‘Business resilience’ section of this Integrated
Annual Report (IAR). We also identified ROs arising
from negative and positive impacts, as well as
from dependencies across the value chain, using
external tools such as Encore. We then mapped
each RO to the relevant stage of our value chain –
upstream, own operations or downstream – as
well as to the time horizons set in the impact
assessment, indicating when it is most likely to
occur. As a last step of this process, we ensured
a clear link between ROs and the corresponding
ESRS topics and sub-topics.
To assess the ROs, we evaluated both the
likelihood of their occurrence and the magnitude
of their financial effect on CCHBC. The financial
effect was determined either quantitatively or
qualitatively, depending on data availability,
considering effects on the financial position,
financial performance, cash flows, cost of capital
and access to finance. Where possible, we used
the percentage of comparable EBIT as a
quantitative metric to measure magnitude.
Finally, we prioritised ROs based on their inherent
risk level, derived from the combination of financial
magnitude and likelihood. The inherent risk heatmap
used follows a 1 to 5 scale, similar to the one used
for impact materiality. Setting the threshold to
above average, all ‘high’ and ‘critical’ ROs were
deemed material.
Double materiality approval
Having assessed both impact materiality and
financial materiality, we created our materiality
table disclosing each material topic from
either perspective (impact or financial)
or both perspectives.
Our DMA was then approved by CCHBC
management (including the ELT-level members),
endorsed by the Social Responsibility Committee
and the Audit and Risk Committee of the Board
of Directors. Our DMA was assured by a
third-party organisation.
Please see 2024 Materiality table on pages 39 to 40.
More information is available in the Sustainability
Statement on pages 41 to 172.
Stakeholder Forum – hearing from our
stakeholders on what matters most
Stakeholder engagement is essential to grow
our business and fulfil our purpose. Engaging and
collaborating with various stakeholders facilitates
better business decisions and alignment with
commitments. Our key internal and external
stakeholders include investors, employees,
customers, consumers, suppliers, governments
and regulators, The Coca-Cola Company and
local communities. We also engage with other
businesses through trade associations
and universities.
Every year, we hold a Stakeholder Forum, to
discuss our material topics with a group of
experts. In 2024, our theme was ‘Harnessing the
Circular Economy for Packaging – driving change
through innovation and collaboration’, a topic of
significant importance both to us and to many
of our key stakeholders.
During the event, we welcomed 160 participants,
including customers, suppliers, NGO partners,
academics, policymakers, investors and other
interested parties, from more than 30 countries.
Discussions covered four key topics:
• Empowering consumers to adopt circular
packaging solutions
• The future of recycling and the role of
innovation and technology
• Reusable packaging systems and how to
successfully scale these models
• Creating value through strategic partnerships.
The Forum’s central message was the importance
of aligning business growth with sustainability
to ensure long-term resilience and success.
Our stakeholders shared valuable insights
and recommendations, including:
• Sustainability has evolved beyond an
environmental imperative; it is now a social
asset that shapes consumer identity and
brand engagement
• Progress depends on collaboration – partnering
with our suppliers and stakeholders will accelerate
innovation in sustainable packaging, from new
materials to advanced recycling technologies
• Sustainable choices must be made more
attractive, accessible, and convenient
for everyone
• Achieving sustainability goals requires building
networks, sharing ideas and collaborating on
common solutions
• Profit and purpose can,and must,
co-exist effectively.
These insights have been reviewed by the Social
Responsibility Committee and we will work to
implement the Forum’s recommendations.
We will also engage with our stakeholders, sharing
the actions we are taking, throughout the year.
Double materiality assessment (DMA) continued
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Financial Statements
Corporate Governance
Strategic Report
MATERIAL impacts, risks and opportunities (IROs) and the respective value chain segments
Material ESRS topics
IMPACT
Actual
Impact
Potential impact
RISK
Current
financial
effect
Anticipated financial effect
Topic
Sub–Topic
Sub–Sub–
topic
2025
2030
>2030
2025
2030
>2030
E1 – Climate
Change
Climate Change
Mitigation
Energy
–
Negative impact to the state of nature
through contribution to Climate Change
Upstream
Downstream
Across Value
Chain
Across Value
Chain
–
Managing our carbon
footprint
–
–
Own
Operations
Downstream
Own
Operations
Downstream
E2 – Pollution and
E5 – Circular
Economy
Pollution
Resource
Outflows
Pollution
of Soil
Negative impact to the state of nature
through Soil Pollution
Downstream Upstream
Downstream Upstream
–
The cost and availability
of sustainable packaging
(outflows – E5)
–
–
Downstream Downstream
E2 – Pollution
Pollution
Pollution
of Water
Negative impact to the state of nature
through Water Pollution
Downstream Downstream –
–
–
–
–
–
–
Pollution
of Water
Positive impact to the state of nature
through Water Pollution Removal
–
–
Downstream Downstream –
–
–
–
–
E3 – Water and
marine resources
Water and Marine
Resources
Water
consumption
Water
withdrawals
Negative impact to the state of nature
through Water Use
Upstream
Own
Operations
Upstream
Own
Operations
Upstream
Upstream
–
–
–
–
–
Positive impact to the state of nature
through Water Replenishment
Own
Operations
Downstream
Own
Operations
Downstream
Own
Operations
Downstream
Own
Operations
Downstream
–
–
–
–
–
E4 – Biodiversity
and Ecosystems
Biodiversity and
Ecosystems
Land
ecosystem
use change
Negative impact to the state of nature
through Land Ecosystem Use Change
–
–
Upstream
–
–
–
–
–
–
E5 – Circular
Economy
Resource Inflows
–
–
–
–
–
–
The cost and availability
of sustainable packaging
(inflows)
–
–
Upstream
Upstream
Key:
Negative Impact
Positive Impact
Risk
Double materiality assessment (DMA) continued
Coca-Cola HBC Integrated Annual Report 2024
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
MATERIAL impacts, risks and opportunities (IROs) and the respective value chain segments
Material ESRS topics
IMPACT
Actual
Impact
Potential impact
RISK
Current
financial
effect
Anticipated financial effect
Topic
Sub–Topic
Sub–Sub–
topic
2025
2030
>2030
2025
2030
>2030
S1 – Own
Workforce and
S2 – Workers in
the value chain
Equal treatment
and opportunities
for all
Diversity
Contribution to Diversity and Gender
Equality of own workforce
Own
Operations
Own
Operations
–
–
–
–
–
–
–
Gender
equality
and equal
pay for work
of equal value
Training & Skills
development
Improved Access to Education
for own workforce
Own
Operations
Own
Operations
Own
Operations
Own
Operations
–
–
–
–
–
Working
Conditions
Health & safety
Contribution to the Health & Safety
of own workforce and workers of suppliers
Own
Operations
–
–
–
–
–
–
–
–
Negative Impact to Health & Safety
through loss of life, injuries and
occupational diseases
Upstream
Own
Operations
Upstream
Own
Operations
–
–
–
–
–
–
–
Secure
Employment
Contribution to Employment across
the value chain
Across Value
Chain
Across Value
Chain
Across Value
Chain
Across Value
Chain
–
–
–
–
–
Provision of Social Protection and Social
Security for own workforce and workers
of suppliers
–
Upstream
Own
Operations
Upstream
Upstream
–
–
–
–
–
Adequate
wages
Accessibility to a Living Wage for own
workforce and workers of suppliers
Own
Operations
Upstream
Own
Operations
Upstream
Own
Operations
Upstream
Own
Operations
–
–
–
–
–
S3 – Affected
Stakeholders
Communities’
economic, social
and cultural rights
Water &
Sanitation
Availability, Accessibility,
Affordability and Quality of Water
for local communities
Across Value
Chain
Across Value
Chain
Across Value
Chain
Across Value
Chain
–
–
–
–
–
Company-specific IRO
#YouthEmpowered: Access to Education Downstream Downstream Downstream Downstream –
–
–
–
–
Topic of interest of specific stakeholders’ groups
S4 – Consumers
and End Users
Personal safety
of consumers
and/or end-users
Consumers’
health and
safety
Social inclusion
of consumers
and/or end-users
Responsible
marketing
practices
Social inclusion
of consumers
and/or end-users
Access
to (quality)
information
Access to
products
and services
Double materiality assessment (DMA) continued
Key:
Negative Impact
Positive Impact
Risk
Coca-Cola HBC Integrated Annual Report 2024
40
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability
Statement
Sustainability Statement
General Disclosures
Basis for preparation
BP-1 General basis for preparation of
sustainability statement
BP-1_01,02
The Sustainability Statement has been prepared
on a consolidated basis, with the scope of
consolidation being the same with that of the
financial statements, and in addition, including
relevant upstream and downstream elements of
the value chain where applicable. Joint Ventures,
where we have operational control are also
reported as part of our own operations. Mission
2025 sustainability commitments exclude
Egyptian operations, as they were not foreseen in
the baseline year nor in the target year.
BP-1_03
All subsidiaries are included in the consolidated
report.
BP-1_04
The statement covers all our value chain
segments, as it includes information identified
as material in the double materiality assessment
of impacts, risks and opportunities (IROs).
The mapping of our value chain was initially
categorised in three segments (upstream – own
operations – downstream).
For own operations, we mapped out our core and
secondary activities, including a mapping of Group
entities that are linked to each business activity
and each respective product category.
For upstream activities, the analysis of business
relationships was limited to Tier 1 suppliers, and
for downstream, to main business partners and
main customers, including product-use phase
and end of life, and the local communities
where we operate.
Coca-Cola HBC Integrated Annual Report 2024
41
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Value chain
Consumers & Community
Value shared
Packaging materials
Ingredients
Resources
Sales
Distribution
Consumers
Bottling operations
Customers
PET, glass,
aluminium,
carton
Water, CO2,
sweeteners, juice,
concentrate
Water, energy,
fuel
Bottles, cans,
cartons
Coca-Cola HBC
countries
Sales
people
Warehouses and
distribution
centres
Sales cars
and vans
Customers
Consumers
Consumer
marketing with
The Coca-Cola
Company
Recycling and
recovery
Packaging
compliance
schemes
Community programmes
Water stewardship,
#YouthEmpowered,
packaging and waste
management programmes,
disaster relief
Outlets
Drink
equipment
Owned and
leased trucks
Trade marketing
and activation
tools
Product
manufacture
Sparkling
beverages, juice,
water and other
still beverages
Product portfolio
Coca-Cola HBC
Bottling and
Distribution
Value created
Sales & Customer relationships
Value added
Cash distribution
to shareholders
Direct and indirect
employment
Taxes
and fees
Payments to
suppliers
Skills and
knowledge
transfer
Community
investment
programmes
Financial capital
Human capital
Manufacturing
capital
Plants,
warehouses,
distribution
centres
Natural capital
Water, biodiversity,
eco-system health
Intellectual
capital
Brands, standards,
processes,
manufacturing,
reputation
Shared and
relationship
capital
Suppliers,
customers,
government
agencies,
communities
Capital
Community
Coca-Cola HBC Integrated Annual Report 2024
42
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
BP-1_05
We have not used the option to omit any specific
piece of information corresponding to intellectual
property, know-how, or the results of innovation
as per ESRS 1 section 7.7 ‘Classified and sensitive
information and information on intellectual
property, know-how, or results of innovation’.
BP-1_06
For the year 2024, no exemption from disclosure
of impending developments or matters in the
course of negotiation, as provided for in articles
19a(3) and 29a(3) of Directive 2013/34/EU, has
been used.
BP-2 Disclosures in relation to specific
circumstances
Value chain estimation
BP-2_03
Some metrics presented across the statement,
especially for upstream and downstream value
chain segments, have been estimated using
indirect sources. The respective estimations
and Datapoints are:
• E1: The calculation of scope 3 greenhouse
gas (GHG) emissions categories for both
the upstream and downstream value chain
segments, specifically the CO2e factor used
(Datapoints: E1-6_04-05 & 26_27_29).
• E5: Data related to percentage recycled
aluminium and percentage recycled glass
materials is coming from our suppliers where
sometimes industry-average figures are used
(Datapoints E5-4_02, E5-4_03, E5-4_04, E5-
4_05).
BP-2_04
The basis for preparation for the metrics
estimated using indirect sources is as follows:
• E1: For the calculation of scope 3 GHG
emissions’ categories, a range of different
methods were deployed, such as average
dataset method (e.g., average CO2e factor for
paper, PET, aluminium, PE materials; average
factors for ingredients, electricity grid factors
as per the IEA), distance-based method and
spend-based method. In terms of emission
factors used, these were either market-
based or taken from existing datasets, such
as the GHG Protocol, Ecoinvent Database
or calculated for the Coca-Cola System by a
specialised company and provided to bottling
companies. The quantity for each scope 3
category (e.g. quantity of purchased materials,
electricity consumption of drink equipment)
was available as actual primary data, and no
estimation was performed. More details on
the calculation methodology for each scope 3
category can be found in Table 15 of ESRS E1
Climate Change.
• E5: Percentage of recycled aluminium and
percentage of recycled glass materials are
coming from our suppliers where sometimes
industry-average figures are used, however
the quantities of those purchased materials
are primary data with no estimation.
BP-2_05,06
The use of estimates and external data from
credible sources is explained in the section of the
relevant metrics throughout the report,
indicating, for example, whether or not external
data is used. We are planning to start using
supplier-specific emissions factors, where
possible, as a basis for the sustainability report in
the future and therefore data quality and accuracy
is expected to improve over time.
Sources of estimation and outcome
uncertainty
BP-2_07,08,09
As a result of the rigorous reporting process
that has been in place for over a decade, capturing
primary and actual data for environmental and
social KPIs in all value chain steps (upstream,
own operations, downstream), our disclosure of
actual performance has no data where high level
of measurement uncertainty exists.
The monetary amounts disclosed across the
sustainability statement are subject to low/
moderate levels of uncertainty. All current
financial data presented in the statement stems
from our financial statements. Regarding the
monetary amounts that correspond to our
anticipated financial effects, they are subject to
moderate uncertainty because they depend on
the outcomes of future events and regulatory
changes. When quantifying these amounts, it is
assumed that the uncertainty increases across
longer time horizons.
Changes in preparation or presentation of
sustainability information
BP-2_10
Using the clause of paragraph 10.3 of ESRS 1,
we will not disclose any comparative information
required by section. Therefore, no comparative
figure will be presented in the sustainability
statement. Data from any prior year is available in
our GRI Content Index; specifically, 2022 and 2023
data are in the 2024 GRI Content Index, published
on our website.
BP-2_11,12
As for the comparative information and figures for
prior years, no recalculation done in 2024.
Similarly, no differences neither in baseline nor in
2023 have been made.
Disclosures stemming from other
legislation or generally accepted
sustainability reporting pronouncements
BP-2_16
We disclose as per the Task Force on Climate-
related Financial Disclosure (TCFD) requirements.
No other framework or reporting standard was
applied for the sustainability statement.
However, due to stakeholders’ interest, we have
included in the sustainability statement a chapter
related to ‘S4 Consumers and end-users’, even
if it was not deemed as material during the
double materiality analysis. Further information is
available in ESRS S4 – Consumers and end-users.
BP-2_18,19
Furthermore, we rely on European Standards
to recognise our suppliers. The European
Standardisation System we use comprises ISO
9001, ISO 14001, ISO 50001 and ISO 45001. We
maintain ISO/IEC 27001 certification (Information
Security Management Systems), providing us
robustness to mitigate any cyber incident. In 2024,
100% of our manufacturing plants were certified
with ISO 9001, ISO 14001, FSSC 22001 and ISO
45001. Our two main centres for IT function in
Bulgaria and Greece maintain their ISO/IEC 27001
certification.
Incorporation by reference
BP-2_20
Our aim is to provide our stakeholders with a clear
view of our operations, ambitions, goals, impacts,
and achievements. Thus, we have complied with
and provided information according to ESRS
requirements. However, in cases where pieces of
information were mentioned in previous sections
of the IAR, we used the option of incorporation by
reference. The respective Disclosure Points (DP)
and Disclosure Requirements (DR) are:
Coca-Cola HBC Integrated Annual Report 2024
43
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Table 1: Incorporation by reference
Incorporation by Reference
Disclosure Requirements
Datapoints
Respective Reference
GOV-1 The role of the
administrative, management
and supervisory bodies
GOV-1_01,02,05,06,07
‘Governance at a glance’, Corporate
Governance Section
‘The Executive Leadership Team’,
Corporate Governance Section
GOV-1_08
Corporate Governance Section
GOV-1_04
Corporate Governance Section
GOV-1_16
Corporate Governance Section
GOV-2 Information provided to,
and sustainability matters
addressed by CCHBC’s
administrative, management
and supervisory bodies
GOV-2_03
‘Double materiality Assessment’,
Strategic Report
SBM-1 Strategy, business model
and value chain
SBM-1_01
‘Growth pillars’, Strategic Report
SBM-1_02
‘Growth pillars’, Strategic Report
SBM-1_03,04
‘Cultivate the potential of our people’,
Strategic Report
SBM-1_21
‘Earn our Licence to operate’,
Strategic Report
‘Tracking our progress’,
Strategic Report
SBM-1_23
‘Earn our License to operate’,
Strategic Report
‘Cultivate the potential of our people
section’, Strategic Report
SBM-1_25
‘Value Chain’, Strategic Report
SBM-1_26
‘Value Chain’, Strategic Report
SBM-1_27
‘Socio-economic contribution’,
Strategic Report
Incorporation by Reference
Disclosure Requirements
Datapoints
Respective Reference
SBM-2 Interests and views of
stakeholders
SBM-2_02
Strategy Section
SBM-2_03,04
Strategy Section
SBM-2_08,09
‘Market trends’, Strategic Report
‘Chief Executive Officer’s letter’,
Strategic Report
SBM-2_10
‘Chair’s letter’, Strategic Report
‘Chief Executive Officer’s letter’,
Strategic Report
SBM-3 Material impacts, risks
and opportunities and their
interaction with strategy and
business model
SBM-3_01,06,07
‘Double materiality Assessment’,
Strategic Report
SBM-3_03,10
‘Business Resilience’, Strategic Report
SMB-3_08,09,10
‘Principal risks & opportunities’,
Strategic Report
SBM-3_12
‘Double materiality Assessment’,
Strategic Report
IRO-1 Description of the
process to identify and assess
material impacts, risks and
opportunities
IRO-1_01
‘Double materiality Assessment’,
Strategic Report
IRO-1_11
‘Business Resilience’, Strategic Report
E3.IRO-1_02 & E2.
IRO-1_02 & E4.IRO-1_05&
E5.IRO-1_02 & IRO-1_05
‘Stakeholder Forum – hearing from our
stakeholders on what matters most’,
Strategic Report
Topical Standards
E1.MDR-T_08
‘Licence to operate’, Strategic Report
E5.MDR-A_06,07,09,10
Financial Statements
E5.MDR-A_11,12
Financial Statements
S1-2_01,02,04
‘Engaging with our stakeholders’,
Governance section
S1-6_17
‘Note 8’, Financial Statements
S4-2_04
‘Market trends’ , Strategic Report
‘Leverage our unique 24/7 portfolio’,
Strategic Report ‘
Coca-Cola HBC Integrated Annual Report 2024
44
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Governance
GOV-1 The role of the administrative,
management and supervisory bodies
GOV-1_01,02,05,06,07
Board structure and diversity: please refer to
‘Corporate Governance Report’, part ‘Governance
at a glance’ on page 191. ELT information: please
refer to ‘Corporate Governance Report’, part ‘The
Executive Leadership Team’ on pages 207-209.
GOV-1_03
Our administrative, management and
supervisory bodies are in accordance with
regulatory requirements. The representation of
workers in those bodies is based on local law, and
countries adhere to that. For example, in Austria
there is representation of the local works council
in the supervisory board based on local law.
GOV-1_08
Responsible for oversight of impacts, risks
and opportunities are, at Board level, the Social
Responsibility Committee and the Audit and Risk
Committee of the Board of Directors.
The Social Responsibility Committee of the
Board of Directors establishes principles
governing social and environmental management
and oversees the performance management
to achieve our sustainability goals (social and
environmental). It establishes and operates
a council responsible for developing and
implementing policies and strategies to
achieve the Company’s social responsibility and
environmental goals (in all environmental, social
and governance pillars, such as climate change,
water stewardship, packaging and waste,
sustainable sourcing, health and nutrition, our
people and communities, and biodiversity). It
ensures Group-wide capabilities to execute
these policies and strategies, and approves our
sustainability strategy, commitments, targets
and policies.
The function of the Audit and Risk Committee
is to serve as an independent and objective body
with oversight of the Group’s accounting policies,
financial reporting, and disclosure controls and
procedures; the Group’s approach to internal
control and risk management; the quality,
adequacy, and scope of internal and external
audit functions; and the Group’s compliance
with legal, regulatory and financial reporting
requirements. In addition, the external
auditor reports directly to the Committee.
Further information regarding the responsibilities
of the Committees is available in the Governance
section of the report, ‘Social Responsibility
Committee’ and ‘Audit and Risk Committee’ parts.
GOV-1_09
Our CEO and the ELT are ultimately accountable
for performance against our sustainability goals
and for the execution of our sustainability agenda.
The Sustainability Steering Committee
(‘Sustainability SteerCo’), led by the CEO and
including members from various functions such
as Supply Chain, Procurement, Corporate Affairs
& Sustainability, Finance and Commercial, meets
regularly. During these meetings, they discuss
performance, approve new strategic initiatives and
allocate resources. Sustainability SteerCo, through
its respective ELT members, is responsible for:
• setting corporate sustainability targets;
• measuring progress towards environmental
and social corporate targets;
• conducting environmental scenario analysis;
• managing public policy engagement related to
environmental and social issues;
• implementing business strategies related to
sustainability (environmental and social) issues;
• managing acquisitions, mergers and
divestitures related to environmental and
social issues;
• overseeing major capital and/or operational
expenditures related to environmental and
social issues;
• assessing the results of environmental
dependencies, impacts, risks and opportunities;
• providing employee incentives related to
sustainability performance;
• implementing a climate transition plan;
• managing sustainability reporting, audit and
verification processes; and
• measuring progress towards science-based
environmental targets and social targets.
GOV-1_10 ,11
The Sustainability SteerCo receives regular
information and updates on sustainability issues
from various departments, who own the
respective agenda, such as the:
• Corporate Sustainability team, which monitors
and reports on the Company’s Mission 2025
commitments (our environmental and social
targets), sustainability projects, stakeholders’
engagement and external ESG trends;
• Business Resilience team, which facilitates,
in collaboration with various Group and BU
functions, the identification, assessment and
development and monitoring of management
plans for all principal risks and opportunities,
including those relating to climate change;
• Quality, Safety and Environment (QSE) and
Engineering teams, which explore and evaluate
new technologies and partnerships that
can enhance the Company’s environmental
performance and competitiveness;
• People and Culture team, which monitors and
reports on some of the social targets and KPIs,
projects and diversity, equity & inclusion (DEI)
agenda; and
• Procurement team, which monitors sustainable
sourcing and suppliers’ engagement.
At the local/market (business unit) level, our
business unit General Managers (GMs) have
frontline responsibility for: monitoring the local
business unit sustainability performance regularly;
localising sustainability strategy for their market/
business unit; and prioritising the local initiatives.
Together with the local leadership teams, our GMs
are responsible for the execution of sustainability
goals at market/business unit level.
GOV-1_12
The reporting lines for the governance structure
on sustainability extend from the Board level, and
further downwards to the ELT, and the Group level
to the BU and country level. This vertical and
horizontal interaction ensures a robust interface
among committees, teams and leadership,
facilitating the sharing of responsibilities for
various aspects of sustainability.
GOV-1_13,14
We have dedicated controls and procedures
in place to manage our impacts, risks and
opportunities. Each function is responsible
for its respective area, such as:
• QSE, for emissions, energy, water usage ratio,
waste;
• Procurement, for ensuring sustainability at
supplier level and sustainable sourcing;
• People and Culture, for overseeing people-
related KPIs, human rights and employee
engagement;
• Corporate Affairs and Sustainability, for
packaging collection, recycled PET, community
social programmes, volunteering, water
stewardship at community level;
• Business Resilience for overall risk management
and scenario analysis; and
• Legal, for compliance, corporate governance
agenda, Code of Business Conduct.
All functions conduct regular performance
reviews, at least quarterly and often monthly,
where sustainability-related KPIs and
performance are presented and discussed, and
action plans are agreed upon. These reviews start
at local plant, warehouse, country and BU levels on
a monthly basis and continue up to the Group
functions. Group functions, along with their
respective heads and ELT-responsible members,
monitor the targets monthly.
Coca-Cola HBC Integrated Annual Report 2024
45
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
We also develop short- and long-term sustainability
targets (e.g., targets set for 2025 in 2018, as well
as targets for 2030 and 2040) that address the
most material impacts across all three segments
of the value chain.
Every set of sustainability targets is aligned
with the respective responsible function, before
being presented and endorsed by the ELT and
subsequently by the Social Responsibility
Committee of the Board of Directors. This
process has been followed for all Mission 2025
sustainability targets, science-based targets
related to carbon emissions, the NetZeroby40
target, biodiversity and others.
We also apply very rigorous quality, food safety,
health and safety and environmental standards
of The Coca-Cola Company (TCCC), so-called
KORE standards, mandated for each of our
manufacturing sites, warehouse and distribution
centres, where the control is under the local
plant-level management and it is assured via
regular cross-border internal audits, external ISO
audits, external audits by TCCC, and external
Workplace Accountability audits.
GOV-1_04
Our Board and ELT comprises of experienced
individuals from diverse backgrounds, countries
and industries. Their biographies, found on
pages 195 to 197 and 207 to 209 of the ’Corporate
Governance’ section highlight their
extensive experience.
GOV-1_15
We are proud of the diverse skills and experiences
of our Board. 10 out of 13 Board members
possess the appropriate skills and experience
in sustainability matters.
For example, in relation to ESG matters, we have
members who are familiar with environmental
matters, such as climate, water stewardship,
biodiversity and packaging, and with social and
governance, such as Anastasios Leventis,
Evguenia Stoitchkova, Charlotte Boyle and
Zoran Bogdanovic.
GOV-1_16
We ensure that the Board members and each
Committee receives a satisfactory ongoing
training and education programme as necessary
to deliver on the Group’s strategy, including the
sustainability-related trainings. That is a
responsibility of our Nomination Committee.
Further details can be found on page 211 in the
‘Corporate Governance’ section of the report.
GOV-1_17
We ensure our Board’s competency on both
environmental and social issues and impacts, and
on risks and opportunities. Our Board includes
members who hold significant positions (co-
founder, CEOs) and are members of various
organisations and institutions, such as the
European Council of the Nature Conservancy, the
WWF Hellas (Greek branch of WWF), the Overseers
of the Gennadius Library in Athens, the UK for UN
High Commission for Refugees (UNHCR). These
roles provide our Board members with deep
insights into environmental conservation, social
responsibility and risk management, which are
directly relevant to our Company’s material
impacts, risks and opportunities. More
information is available in the ‘Corporate
Governance’ section, paragraph ‘2024 actions
based on 2023 Board evaluation findings and
previous experience’, page 214.
GOV-2 Information provided to,
and sustainability matters addressed
by, CCHBC’s administrative, management
and supervisory bodies
GOV-2_04
The Board reviews and approves strategy,
monitors performance towards strategic
objectives, oversees implementation by the ELT
and approves matters reserved for Board decision
by the Articles of Association. The governance
process of the Board is outlined in our Articles of
Association and the Organisational Regulations.
For further details, please consult our website.
GOV-2_02
In 2024, we developed our Business Resilience
(BR) Framework, which replaces our Enterprise
Risk Management Programme. The BR Framework
maintains all key aspects of effective risk
management but also incorporates other
BR elements – security, business continuity,
insurance and crisis management.
The Board retains overall accountability and
responsibility for the Group’s business resilience,
risk management and internal control systems.
It provides direction to the business on the level
of acceptable risk through the Risk Appetite
Statement and receives regular reports from
the CRO (Chief Risk Officer) on the extent to
which that statement in applied throughout the
business. In 2024, the Board reviewed the Risk
Appetite Statement and that was applied through
the setting of risk tolerance levels for every risk
that business units and Group functions assessed.
The Board also reviews the Principal and
Emerging Risks and key resilience management
plans, including our Group and Local insurance
programmes annually and, through the work of
the Audit and Risk Committee, receives quarterly
updates on the effectiveness of the business
resilience and risk management program. Insights
from our assessment of principal and emerging
risks and opportunities are taken into account
by the Board as part of their continuous review
of the relevance and effectiveness of our
business strategy.
For more information on our Business Resilience
Programme, see section ‘Business Resilience’
in the strategic part of this IAR.
GOV-2_01
Additionally, to ensure the effectiveness of our
policies and actions, the Social Responsibility
Committee reviews Group policies on
environmental issues, human rights and other
topics as they relate to social responsibility.
Further information regarding the responsibilities
of the Social Responsibility Committee can be
found on the pages 215 to 216 of the report, while
for details on our policies, please visit our website.
During 2024, the Social Responsibility
Committee met four times, as noted in the
Governance section, Social Responsibility
Committee, part of the report. In every meeting,
sustainability-related topics, such as climate, water
stewardship, packaging, public policies and others,
are discussed, and the Committee stays informed
about material sustainability matters that
emerged during the reporting year.
Coca-Cola HBC Integrated Annual Report 2024
46
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
GOV-2_03
The results of our materiality assessment were
reviewed and approved by CCHBC management
and endorsed by the Social Responsibility and
Audit and Risk Committees of the Board of
Directors. The lists of the reviewed material topics
are presented in our Table on pages 39-40 in the
‘Double Materiality Assessment’ of the Strategic
Report.
GOV-3 Integration of sustainability-related
performance in incentive schemes
GOV-3_01
In Coca-Cola HBC, we provide both monetary
and non-monetary incentives for achieving
our sustainability goals across all organisational
leadership layers, not only on Group & C-suite
levels, but also on country and plant-management
levels down to production shop floor. We believe
each employee plays an important role in the final
achievement of our sustainability targets and has
these goals embedded into their work culture
and ethics, therefore all employees can receive
recognition for their performance in minimising
our impact on climate and environment and
improving our social performance. Substantiated
violations of our Company’s Code of Business
Conduct result in disciplinary measures, which
include loss of bonus, unpaid suspension,
formal written reprimand and termination.
GOV-3_06
The Remuneration Committee’s role includes
incentivising strong business performance and
appropriately rewarding contributions to the
Company’s long-term success. The Committee
has reviewed the policy-based outcomes under
the performance share plan (PSP).
GOV-3_04
The CEO’s individual performance is measured
in key strategic areas and taken into account for
MIP. Please refer to the Corporate Governance
section, ‘Directors’ remuneration report’, the
content and table under the paragraph ‘2024 MIP
performance outcome’ on pages 223 to 224.
E1.GOV-3_01
Coca-Cola HBC has introduced GHG emission
reduction targets as one of the elements in its
long-term management incentive plan (LTIP) and
also PSP. This was selected to directly align with
and incentivise delivery of the Company’s ESG
objectives, particularly our ambitious goal to achieve
net zero emissions across our entire value chain
by 2040.
GOV-3_02,04 & E1.GOV-3_01,03
Since 2021, the reduction in GHG emissions metric
was selected as part of the LTIP to directly align
with and incentivise delivery of the Company’s ESG
objectives. This includes our ambitious goal to
achieve net zero emissions across our entire value
chain by 2040, covering all scopes of emissions
(scope 1, 2, 3) in all territories where we operate1,
and our approved by the Science Based Targets
initiative (SBTi) targets (2030 target year). The CO2
emissions target in the PSP implicitly captures
reduction in plastics. Also, it indirectly captures
water as linked to climate risk scenarios (both
physical and transition).
E1.GOV-3_03
Since its inclusion in the LTIP in 2021 until 2024,
we have achieved our annual roadmap for absolute
emissions reduction, and we are progressing as
per the net zero transition plan to reach our
science-based absolute emissions reduction
by 2030 and further to net zero by 2040.
Our Mission 2025 sustainability commitments
related to the percentage energy-efficient
coolers are up to 60% in 2024 versus 55% in 2023,
meaning that in both years we exceeded our 2025
target (2025 target is 50%); also, we continue
using 100% renewable and clean electricity in
our operations in EU and Switzerland (2025 target
is 100%) and we overachieved our 2025 target
on total renewable and clean energy in direct
operations reaching 53% (2025 target is 50%).
GOV-3_02
Aligned with science and 1.5-degree Celsius
scenarios and approved by the SBTi, our PSP
has some specific characteristics, as presented
in the ‘Directors’ remuneration report’ section
of the report.
GOV-3_03
The vesting schedule for PSP performance
conditions is a straight line between the threshold
and maximum performance levels. For the first
time the emissions reduction was introduced in
the LTIP in 2021. Additionally, Mission 2025
commitments performance is part of the annual
individual performance metrics measured, and the
achievement of the goals of helping communities
in water risks areas by implementing water
stewardship projects, #YouthEmpowered,
% women in management, % energy-efficient
coolers, progress made towards packaging goals,
and CO2 emissions ratio are included.
E1.GOV-3_02
CO2 emissions are part of the LTIP (15% weight)
and PSP of all people eligible, including all C-suite
and senior management members.
E1.GOV-3_01
LTIP awards are cascaded down to select
members of middle and senior management.
Specifically, for CEO- and Director-level
remuneration arrangements, annual variable
compensation includes sustainability objectives
such as employee engagement and sustainability
commitments from Mission 2025 as disclosed in
the Corporate Governance section, ‘Directors’
remuneration report’ on page 222 to 247.
GOV-3_04
Please refer to the Corporate Governance
section, ‘Directors’ remuneration report’, the
content and table under the paragraph ‘2024 MIP
performance outcome’ on pages 240 to 241.
GOV-3_03
The CEO’s individual performance metrics were
measured versus the following priorities in 2024:
• Business performance
• Employee engagement
• Sustainability commitments
The Remuneration Committee took into account
additional achievements during 2024, among
them: the leading score in beverage industry at
S&P Global Corporate Sustainability Assessment
(DJSI), achieved top scores in S&P Global
Sustainability Yearbook, double A from CDP,
GOV-3_05
The proportion of variable remuneration
dependent on sustainability-related targets
and/or impacts is up to 15%.
1. In the last two years, due to the geopolitical situation and inability to influence some factors outside of our control, Russia and Ukraine are excluded from the GHG emissions data in the LTIP and PSP.
Coca-Cola HBC Integrated Annual Report 2024
47
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
GOV-4 Statement on due diligence
GOV-4_01
Our due diligence work is conducted in accordance with the OECD Guidelines for Multinational Enterprises and implemented by our members from various functions, such as Supply Chain, Procurement,
Corporate Affairs & Sustainability, Finance, Risk and Commercial, and then presented to the Social Responsibility Committee, which reports to the Board of Directors.
Table 2: Elements of due diligence within the sustainability statement
Core elements
of due diligence
Paragraphs in the
sustainability statement
Pages in the sustainability statement
Embedding due diligence
in governance, strategy
and business model
GOV-2 Information provided to and
sustainability matters addressed
CCHBC’s administrative, management
and supervisory bodies
Read more p.46
GOV-3 Integration of sustainability-
related performance in
incentive schemes
Read more p.47
SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model
Read more p.55, 85
Engaging with affected
stakeholders in all key
steps of the due diligence
GOV-2 Information provided to
and sustainability matters addressed by
CCHBC’s administrative, management
and supervisory bodies
Read more p.46
SBM-2 Interests and views of
stakeholders
Read more p.52 to 54
IRO-1 Description of the process to
identify and assess material impacts,
risks and opportunities
Read more p.59, 65
MDR Policies
Read more p.85, 100, 103,
104, 114, 116, 118, 119, 127,
131, 148,156
Topical ESRS
Read more p.116, 135, 157
Core elements
of due diligence
Paragraphs in the
sustainability statement
Pages in the sustainability statement
Identifying and assessing
adverse impacts
IRO Description of the process to
identify and assess material impacts,
risks and opportunities
Read more p.59, 65
SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model
Read more p.55, 85, 130,
146, 155
MDR Policies
Read more p.85, 100, 104, 116,
119, 131, 148, 156
Topical ESRS
Read more p.101, 104, 114, 116
Taking actions to address
those adverse impacts
MDR Actions
Read more p.87, 102, 106, 117,
120, 131, 151
Topical ESRS
Read more p.102, 106, 137, 149
Tracking the
effectiveness of these
efforts and
communicating
MDR Targets
Read more p.91, 103, 112, 118,
125, 141, 158, 160
Topical ESRS
Read more p.114, 118, 125,
126, 142
Coca-Cola HBC Integrated Annual Report 2024
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
GOV-5 Risk management and internal controls
over sustainability reporting
GOV-5_02
Sustainability is embedded as a core element
of our management practices and a key element
of our Business Resilience Framework. We take
the same approach to identifying risks and
opportunities, developing management plans to
reduce negative impact or leverage opportunity,
and reporting of sustainability-related risks as we
do with all risks and opportunities.
Our Risk Management programme is a five-step
process that is linked to our strategies and can
be applied across all business activities (e.g.,
business risk, project risk, new product
development). It involves:
1. Risk identification.
2. Analysing the inherent risk by evaluating
potential impact and likelihood.
3. Assigning current risk ownership, mitigation
activities and internal controls, and analysing
residual risk.
4. Preparing appropriate action plans to manage
the risk and achieve our risk objective.
5. Monitoring, reviewing and auditing and
reporting.
GOV-5_01
Governance of all risks, including sustainability-related
risks, is the responsibility of the Board. During the year,
the Board reviews our principal and emerging risks and
opportunities, including those associated with climate
change, water management and health & safety.
Additionally, the Social Responsibility Committee
of the Board takes a particular interest in risks
associated with climate change.
Reporting of our sustainability-related risks,
including climate-related risks, are integrated
into our Risk Management programme. Prior to
external disclosure, all risk assessments and
management plans, including sustainability-
related risks and opportunities are subject to
rigorous review by the Group Business Resilience
Team, the Group Risk and Compliance
Committee, the ELT, the Audit and Risk
Committee of the Board and the full Board; and
are subject to internal audit.
Our approach to ESG data management
supported by the Finance function continues to
evolve by applying financial reporting principles
to our non-financial data and through the
development of a robust control environment,
alongside policies, to progress our ESG objectives.
We have internal sustainability process guidelines,
which establish the minimum requirements for
environmental management and provide
frameworks, templates and tools to ensure a
unified approach across all CCH markets. All CCH
entities are required to adhere to these guidelines.
This year, we have reviewed the data governance
interaction model we follow. This was undertaken
to clarify roles and responsibilities and to provide
updated documentation and training for Data
Stewards at the business unit level.
We continue to update the process in the business
units for data gathering of formal evidence (e.g.,
photos of water meters, email communication,
reports) for all water usage for the year to ensure
traceability and accuracy. We have put a process
in place to ensure that all strategic goals related
to NetZeroby40 and other sustainability
commitments are clearly set out and
monitored properly.
Our health and safety rules are communicated to
our employees. In addition, we have established
processes and procedures to ensure that regular
training is provided to employees in accordance
with their roles and responsibilities and any
relevant regulatory requirements. Finally, local
health and safety regulations are properly
monitored to ensure continuous compliance.
We have set a process in place to ensure that any
health and safety issues are followed up in a timely
way and remediated through reporting channels.
We comply with the local QSE requirements, and
we monitor closely any legislation changes.
GOV-5_04
Sustainability-related risks are integrated into
our Risk Management Programme, as detailed
in the IAR section ‘Business Resilience: Proactive
management of risks and opportunities’. As part of
our Risk Management programme, sustainability-
related risks and opportunities are discussed,
monitored and prioritised, relative to other risks,
during the principal risk assessment process. The
outcomes of engagement with business units
and cross-functional teams are integrated into a
principal risk report, which is reviewed by the Group
Risk and Compliance Committee (GRCC). The
Committee ensures that principal risks, as detailed
in the IAR section Principal Risks and Opportunities,
are reviewed with a broader, cross-functional
perspective, integrating findings into the principal
risk report submitted to the ELT and quarterly to
the Audit and Risk Committee of the Board.
Once a risk is identified and assessed, risk owners,
accountable managers and risk mitigation plan
owners are assigned for monitoring, developing
and implementing mitigating actions and to
ensure clear accountabilities at all stages of the
process. The outcomes of these assessments
and the monitoring of the effectiveness of the
management plans and internal controls
associated with them are reviewed by the Group
Business Resilience Team in collaboration with
Group risk owners, the Regional Management
Teams, the Group Risk and Compliance
Committee, and are subject to internal audit.
GOV-5_05
Our internal audit department conducts
independent cross-regional sustainability audits,
assessing the processes that support sustainability
reporting and data-collection standardisation
across a sample of business units and Group
functions, aiming to identify opportunities to
enhance the overall effectiveness and efficiency of
processes and controls. The audits are conducted
in conformance with the International Standards
for the Professional Practice of Internal Auditing.
The findings are submitted to the Audit and Risk
Committee. The Board and its Committees
conduct annual reviews of the effectiveness
of our internal controls.
Our local compliance with QSE regulations is
reviewed quarterly, either internally or externally,
within the context of ISO Audits for Quality,
Food Safety, Occupational Health and Safety,
and Environment. On a quarterly basis, the results
of such reviews and inspections are presented
to the Board’s Audit and Risk Committee.
GOV-5_03
Variations in data collection practices present
challenges to a company’s sustainability reporting
process. Some metrics presented across the
statement, especially for upstream and downstream
value chain segments, are estimated using indirect
sources. For example, the calculation of scope 3
greenhouse gas (GHG) emissions and data related to
the percentage of recycled materials. The timing and
availability of data across the value chain are crucial
for effective decision-making and operational
efficiency. Ensuring data synchronization across
different stages of the value chain is essential for
providing appropriate accuracy. While these factors
introduce some risks, they are manageable with
careful planning and attention.
Strategy
SBM-1 Strategy, business model and value chain:
SBM-1_01
Our growth strategy reflects our vision to be
the leading 24/7 beverage company. It is built on
five key pillars of growth, each of which is a core
strength or competitive advantage, while at the
same time, they reflect on different sustainability
aspects. Our five strategic growth pillars include:
• Leverage our unique 24/7 portfolio.
• Win in the marketplace.
• Fuel growth through competitiveness
and investment.
• Cultivate the potential of our people.
• Earn our Licence to operate.
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
For more information, please visit the ‘Strategic
Report – Growth pillars’ section of the IAR.
Our portfolio includes some of the world’s best-
known beverages. We produce and sell an
unparalleled portfolio of beverage brands relevant
to every customer, consumer and occasion. Our
portfolio is one of the strongest, broadest and most
flexible in the beverage industry, offering consumer-
leading brands in the Sparkling, Juice, Water, Sport,
Energy, Ready-to-drink Tea, Coffee, Adult Sparkling,
Snacks and Premium Spirits categories.
We have high-growth opportunities across
high-value occasions and categories. Our flexible
portfolio caters to a growing range of tastes and
preferences, with a wider choice of both affordable
and premium products, and a wide range of
healthier options. Our Sparkling portfolio has
evolved with the proliferation of zero-sugar and
light variants, single-serve packs and broader
innovation in flavours, and it is the most significant
group of products as it represents the main source
of revenue. Our 24/7 portfolio has considerable
growth potential, driven by our strategic priority
categories, Sparkling, Energy and Coffee.
SBM-1_02
We operate in markets with different profiles,
as presented in the ‘Strategic Report – Growth
pillars’. Every market we serve holds significant
importance to us, contributing substantially to
our overall revenue and growth. Our ‘Emerging’
markets contribute to the 45% of our revenues,
followed by the ‘Established’ markets with 33%
and the ‘Developing’ markets with 22%. Further
details are available on pages 2-3.
Our route to market includes a wide range
of consumer channels – from supermarkets,
convenience stores and vending machines,
to ‘Hotels, Restaurants and Cafés’ (HoReCa).
Our roots date back to 1951 when A.G. Leventis
founded the Nigerian Bottling Company in Lagos.
Since then, the business has expanded, now
covering Armenia to Austria, Egypt to Estonia
and Serbia to Switzerland. We serve 750 million
potential consumers across 29 countries and have
proven routes to market and leading market
positions in a unique geographic footprint across
Western, Central and Eastern Europe, and Africa.
SBM-1_03,04
We are approximately 33,000 passionate, diverse
and committed professionals. The geographical
distribution of our employees (FTEs) is as follows:
Table 3: Geographical distribution of
employees
2024
Geographical area
Permanent
Temporary
Region 1
5,914
98
Region 2
7,829
679
Region 3
12,368
2,595
Italy
1,991
20
Corporate Centre
1,508
18
Subtotal
29,609
3,409
Total
33,018
• Region 1 includes the following countries:
Austria, Czech Republic, Slovakia, Hungary,
Republic of Ireland, Northern Ireland, Poland,
Estonia, Lithuania, Latvia and Switzerland.
• Region 2 includes the following countries:
Bosnia and Herzegovina, Slovenia, Croatia,
Bulgaria, Greece, Cyprus, Romania, Serbia
(including the Republic of Kosovo), Montenegro,
Ukraine, Moldova and Armenia.
• Region 3 includes the following countries:
Russia, Nigeria, Egypt and Belarus.
Further information about our employees is
available in the ‘Cultivate the potential of our
people’ section of the IAR.
SBM-1_05,06
None of our products are banned in the markets
where we operate, and we comply with all local
legal requirements for the sale and marketing of
those products. Wherever there is stakeholder
concern expressed relating to beverage industry
ingredients, we address those concerns through
our industry associations and other alliances. As
presented in the Financial Statements, our annual
revenue reached €10,754 million.
SBM-1_21
Sustainability is embedded in every aspect of
our business as we look to create and share value
with all our stakeholders. We make a strong
contribution to developing the societies in which
we operate through employment and our wider
supply chain, as well as through supporting
community projects.
We have established strong targets to embrace
sustainability. Our Mission 2025 commitments
on climate, packaging, water, ingredients, nutrition,
people and communities set measurable targets.
Further details and data related to ‘Our Mission 2025’
sustainability-related goals and the relationships
with stakeholders are available in the Strategic
Report, ‘Earn our Licence to operate’ and ‘Tracking
our progress’ sections of the report.
Our Company announced our commitment to
achieving net zero emissions across its entire
value chain by 2040, and we are firm in our target
to reduce our emissions footprint across scope 1,
2 and 3. This commitment is approved by the SBTi.
Together with the Coca-Cola System, we have
started to actively engage with our significant
suppliers that represent over 70% of our scope 3
emissions, on how to measure GHG and prompt
them to actively disclose in the CDP and develop
their own science-based target commitments.
In 2023, we joined the engagement programme
of the Science Based Targets Network (SBTN),
and we are committed to follow their guidelines
and methodology for setting science-based
targets for nature. Our target is to make a net
positive impact on biodiversity in critical areas
of our operations and supply chain by 2040 and
eliminate deforestation in our supply chain by
2025, and we focus our efforts on the relevant
actions so both nature and business can thrive.
We strive to minimise food loss and food waste in
our operations as this helps us preserve water and
other natural resources, avoid carbon emissions
and mitigate the social and economic impacts of
agriculture. Our target to tackle food waste and
loss across our activities and operations is to
decrease our absolute food losses (in dry matter)
by 30% by 2025 compared to our 2019 baseline,
and further reduce by 40% by 2030 versus 2019.
We also strive to reach 100% recycled waste and
have zero waste to landfill from manufacturing.
SBM-1_22
When setting our sustainability goals, we consider
our main activities and their impact, and the goals
cover all our business units, not only the largest
ones. We require each of our operations to
follow our sustainability standards, with each
sustainability target set first at the overall
Group level, and then we disaggregate for
each of our operations.
The disaggregation leads to an individual country/
business unit annual roadmap, and we conduct
performance reviews based on those annual
roadmaps. In some areas, such as water,
where challenges and risks are very local (e.g.,
watershed-specific challenges and risks), we set
our Group target for those risky areas, but the
individual plant target considers the local issue
and specifics.
For suppliers, our overall ESG requirements apply to
every supplier or partner (e.g., our Supplier Guiding
Principles). However, for some specific goals,
such as sustainable certification of agricultural
ingredients, we consider only the main and most
impactful agricultural ingredients representing
a significant part of our procurement spend.
In our Mission 2025, as set in 2017 and endorsed
in 2018, when the Egyptian operations were not
yet part of CCH, the actual and target data
excludes Egypt. Our updated 2030 emissions
target, and in our long-term commitments, such
as NetZeroby40 and a positive impact on
biodiversity by 2040, Egypt is included.
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
SBM-1_23
Our boldest sustainability commitment,
NetZeroby40, requires significant decarbonisation
of each part of the value chain and decoupling the
emissions from the business growth. In some
cases, for example to reduce emissions from
packaging materials and increase packaging
circularity, we will use more reusable bottles
(returnable glass bottles), which lead to more
water consumption in our manufacturing sites for
cleaning of the bottles and also more kilometres
driven for reverse logistics (transportation of
the empty bottles back to the plants). Using more
natural ingredients and providing more beverages
with no preservatives to respond to the health
and nutrition expectations of our consumers lead
to increased requirements of our suppliers and
higher cost of sourcing the ingredients.
For more information on our actions, please
see the ‘Licence to operate’ and ‘Cultivate the
potential of our people’ sections of this report.
SBM-1_25
Our business model describes the essence
of what we do: how we create value for all our
stakeholders from the resources and relationships
we need to operate the business. Analytical
description of our business model is available
in the Value Chain graphic on page 42.
SBM-1_26
For further details regarding the inputs and our
approaches to gather, develop and secure those
inputs, please see the Value Chain graphic on page
42 and ‘Business model’ section on pages 6-7.
SBM-1_27
We believe that the only way to create long-term
value for all our stakeholders is through sustainable
growth. Our stakeholders and the wider communities
where we operate benefit in multiple ways. Each
stakeholder group has different benefits
depending on their position in the value chain.
For our stakeholders’ benefits, please consult
the ‘Business model’ section on page 7.
We have a strong socio-economic impact. As a
strategic bottling partner of TCCC, we are aware
that our impact on society is significant.
We create value for the societies we operate in by
creating jobs, training workers and as community
participants, building physical infrastructure,
procuring raw materials locally, transferring
technology, paying taxes, expanding access
to products and services, and creating growth
opportunities for our customers, distributors,
retailers and suppliers.
Through the Socio-Economic Impact Study, which
we perform in each of our markets together with
TCCC, we understand how our activities benefit
economies and societies and what our total
contribution is to the domestic economy, local
communities and employment. Further details
regarding the metrics of our socio-economic impact
are available in the Strategic Report, ‘Socio-
economic contribution’ paragraph on page 7.
SBM-1_28
Our upstream value chain segment incorporates
all the activities that supply us with the key
sustainably produced raw materials and resources,
equipment and services to produce our products.
For that purpose, we partner with our suppliers.
We transform these resources into products
through an optimised manufacturing
infrastructure, creating value for our employees,
investors and governments in the countries where
we operate. We are an exclusive partner of TCCC
in 28 markets. TCCC owns, develops and
markets its brands with the end-consumer.
We are responsible for producing, distributing
and selling these beverages. We work together
to ensure that we have the right portfolio
for our markets and to ensure excellent, efficient
execution. We buy concentrate from TCCC
under an incidence-based pricing model. We
also share marketing costs and responsibilities;
TCCC undertakes marketing to consumers
while we take responsibility for trade marketing
to our customers.
In the downstream value chain segment, we
deliver our products through a robust channel
network and partner with our customers for the
products’ delivery to the end-users (consumers).
Data & Insights
Portfolio Strategy
Investments in
Revenue Growth
Capabilities Plans
Talent Exchange
Making Our
Packaging Circular
Brand
Ownership
Portfolio
Development
Consumer
Marketing
Concentrate
Supply
Production
of Beverages
Portfolio Sales &
route to market
Customer Marketing,
Execution & Management
Bottling Capex
Investments
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
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stakeholders
SBM-2 Interests and views of stakeholders
SBM-2_01,03
We partner and we engage with stakeholders that share our commitment to a sustainable future and
have a stake in our business. Engaging with our stakeholders strengthens our relationships and helps
us make better business decisions and deliver on our commitments.
SBM-2_02
Except for our people (employees), our key stakeholders include a) investors (shareholders and
analysts), b) customers, c) consumers, d) suppliers, e) governments and regulatory authorities,
f) NGOs and IGOs, g) communities and h) TCCC. Further information is available in the ‘Stakeholder
engagement’ section on pages 10-11.
SBM-2_03,04
We strive for long-term partnerships with non-governmental organisations, customers, suppliers,
academia and other stakeholders to maximise the impact of community programmes.
We have organised various types of engagement tailored to each stakeholder’s nature, their
relationship with our value chain, and their specific needs.
Our people
• Focused and continuous conversations
• Employee Assistance Programme
• Regular employee surveys to understand and act on needs and wellbeing
• Offering personalised experiences and opportunities for personal and
professional growth
• Ongoing dialogue with employee representative bodies
Our customers
• Key account managers engage with our customers at a strategic level
• Our business developers visit outlets with digital tools and insights to add value
• Partnering to reduce food loss and waste
• Introduce new packaging types and support packaging collection
• We regularly search for feedback, measure and analyse customer engagement
Our consumers
• Together with TCCC, we understand consumers’ needs and preferences
through our access to consumer insights
• Consumers also provide feedback on social media and via consumer hotlines
Our communities • We engage with customers and partners to understand what skills and training
young adults need in specific markets
• Via our #YouthEmpowered sessions, we increase the employability of
young people
• We participate actively to support the set-up and implementation of new
packaging collection schemes
• Addressing water challenges in water priority locations
• We participate in different volunteering initiatives
• We launched the Coca-Cola HBC Foundation to support communities where
we operate
• We provide disaster relief in every business unit where we operate
Governments
• Much of our engagement with governments is conducted at an industry level
through trade associations
• We partner with local governments to tackle waste-collection challenges and
water availability
NGOs
• We include NGOs and community partners in our leadership development
programmes, offering online training for managing virtual teams and leading in
times of crisis
• We partner with specific NGOs for targeted environmental and social projects,
and for disaster relief
• We engage through our Group Annual Stakeholder Forum and our annual
materiality assessment, as well as through ad hoc meetings
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Corporate Governance
Strategic Report
Sustainability Statement continued
Our suppliers
• Feedback received through our Group Annual Stakeholder Forum
• Regular, ongoing interaction with the Coca-Cola System’s central
procurement group and our technology and commodity suppliers
• Sustainability workshops organised with main suppliers
• Specific meetings for sustainability discussions with critical suppliers
• Training opportunities provided via SLoCT, EcoVadis IQ, etc.
The Coca-Cola
Company (TCCC)
• Day-to-day interaction as business partners, joint projects, joint business
planning, functional groups on strategic issues and ‘top-to-top’ senior
management forums
Our investors
• Communication during our Annual General Meetings, investor roadshows,
press releases and results briefings, and ongoing dialogue with analysts
and investors
• Monitoring and implementing the emerging trends and investors’ expectations
via participation in the ESG benchmarks and ESG raters
Further information related to our stakeholder engagement is available in the ‘Stakeholder
engagement’ section of the report, and details about our types of engagement can be found on our
website.
SBM-2_05
Our Annual Stakeholder Forum brings together stakeholders from each stakeholder group to address
their concerns, discuss impacts and risks and propose improvement opportunities.
List of the last six Stakeholder Forums:
1. 2019 Stakeholder Forum: Water efficiency and use, water stewardship in communities,
water education.
2. 2020 Stakeholder Forum: Climate action in the new normal.
3. 2021 Stakeholder Forum: Winning ESG partnerships: When one plus one exceeds two.
4. 2022 Stakeholder Forum: Bridging the social and the economic: How can companies invest to deliver
value both for business and society?
5. 2023 Stakeholder Forum: Water regeneration – partnering to strengthen communities’ resilience
and drive economic growth.
6. 2024 Stakeholder Forum: Harnessing the circular economy for packaging.
SBM-2_07
Besides the annual stakeholder forum, we actively seek out our stakeholders’ opinions and insights by:
• interviewing key internal decision makers and external partners;
• conducting 26 in-depth interviews for our impact materiality with global stakeholders representing
the main stakeholder groups: investors, shareholders, customers, industry associations, NGOs,
local communities, suppliers and international institutions such as the UN Global Compact and
the International Organisation of Employers;
• engaging with external stakeholders on an ongoing basis;
• surveying the local external stakeholders during the materiality surveys for the local business
unit sustainability reports;
• considering the material issues list of TCCC and other bottlers as well as other food and
beverage companies;
• regular Employee Engagement surveys for our own employees;
• reviewing the feedback received via our ‘SpeakUp!’ line, consumer link, social media, company’s
contacts/emails and customers’ surveys;
• joint sustainability events with peer companies and customers at local business unit level;
• interviews for specific topics done by external auditors during the ISO audits, workplace
accountability and suppliers audits; and
• listening to feedback from our Group Risk and Compliance committee and all risk registers of
our markets.
Hearing from our stakeholders on what matters most is essential for us. Every year, we bring together
(in virtual format) a group of diverse stakeholders to formally review our sustainability performance
and to understand their expectations for the future.
SBM-2_05,06
We aim to strengthen our relationships with our stakeholders that would help us make better business
decisions and deliver on our commitments.
When introducing new packages or products, developing strategies or setting targets to manage the
social and environmental impacts of our operations, we consider what is meaningful and valuable to our
stakeholders. This requires understanding our stakeholders’ priorities and expectations. For instance,
to build trust by operating responsibly and sustainably, and addressing issues that are material for our
communities, we engage directly with people in the markets in which we operate, particularly those
living in the areas around our bottling operations, and through third-party partnerships.
We identify and select all types of stakeholders that can have an impact on or are affected by our
business now and in the future. This process is done both at the Group and country levels, and the
overall input is consolidated and used for our materiality surveys. Specifically, for our thematic Annual
Stakeholder Forum, we aim for at least 50% of our invited stakeholders to be directly relevant to the
issues discussed each year, with the other 50% being from all other categories. Stakeholders’ maps
are updated regularly by the countries and Group.
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Sustainability Statement continued
SBM-2_12
We seek our stakeholders’ feedback and
recommendations because they are of paramount
importance. We take their insights seriously.
We also conduct regular customer satisfaction
surveys and consider any feedback from our
customers. Employee engagement surveys
are also performed regularly, ensuring the voice
of our employees is heard and resulting in clear
actions to improve.
The Social Responsibility Committee formally
reviews this feedback, looking forward to
accelerating our sustainability-related impacts.
Results of our annual materiality surveys have been
presented to our ELT and Social Responsibility
Committee of the Board every year.
SBM-2_08,09
Please see the Strategic Report, ‘Market trends’
section and specifically paragraphs ‘How we are
responding’ and in the ‘Chief Executive Officer’s
letter’ section on page 9.
In Q4 2024, we opened a new Digital Hub in Egypt
to complement our existing Digital Hubs in Sofia,
Bulgaria, and Athens, Greece. This initiative is part
of the Digital Technology Platforms’ (DTPs’) new
sourcing strategy, which aims to ensure we remain
competitive, agile and future-ready. By bringing
450 more technology roles in-house and investing
in software and customised development, we are
positioning ourselves to better meet the evolving
needs of our stakeholders.
We have continued to leverage our revenue growth
management (RGM) framework to enhance our
customer offerings. This includes initiatives focused
on affordability and premiumisation, ensuring that
we cater to a broad spectrum of consumer needs.
Our leading data, insights and analytics (DIA)
capabilities are integral to this process, enabling
us to perform micro-segmentation of customers.
This allows us to address specific consumer needs
more effectively and personalise our execution.
By investing in digital capabilities and refining our
customer offerings, we are not only enhancing
our competitive edge but also ensuring that
we remain responsive to the demands and
expectations of our diverse stakeholder base.
SBM-2_10
We are committed to continuing the development
of our 24/7 portfolio, ensuring a consistent range
of choices and strengthening our organisational
capabilities. Our goal is to be recognised as the
best partner by our customers through
distinctiveness and excellence.
Sustainability remains at the top of our
agenda. Building on our strong track record,
we will craft the journey to net zero and continue
raising the bar with packaging, collection and
recycling, water usage, our #YouthEmpowered
programme, gender diversity and other
key sustainability commitments.
Please see the Strategic Report, ‘Chair’s letter’
and ‘Chief Executive Officer’s letter’, paragraphs
‘Looking ahead’.
SBM-2_11
Engaging with stakeholders is a fundamental
aspect of our business operations. We prioritise
the interests of the Group’s employees and other
stakeholders in our decision-making process,
recognising the importance and value of their
perspectives. This includes considering the impact
of the Company’s activities on the community,
the environment and the Group’s reputation.
Overall, these strategic steps are expected
to foster stronger relationships with our
stakeholders, as they align with their interests
and demonstrate our commitment to continuous
improvement and innovation.
S1.SBM-2_01
We have organised various types of engagement
for our employees, which enable us to comprehend
their interests and views, as presented previously.
Respect for human rights remains a cornerstone of
our operations. Our updated Human Right Policy
aligns with current global trends in human rights,
positioning us at the forefront in this vital area across
all aspects of our business. To ensure everyone fully
understands our human rights commitments, we
introduced a Humans Rights Manager Guide and
mandatory training for all employees, which must
be completed every three years.
S2.SBM-2_01
Regarding the value chain workers, we engage with
them through regular audits, and we understand
their concerns via the ‘SpeakUp!’ line which are then
considered in our decision-making processes. We
are dedicated to upholding the human rights of all
value chain workers. Our Supplier Guiding Principles
apply to our suppliers and are aligned with the
expectations and commitments of our Human
Rights Policy. All long-term contractors and
contracted services on site are assessed on human
rights through workplace audits, which have a
three-year cycle.
S3.SBM-2_01
We follow international human rights standards
and ensure our operations respect the rights
of affected communities, considering them
in our decision-making processes. This includes
honouring the rights of indigenous peoples, where
applicable, and recognising their unique cultural,
social and economic contributions.
S4.SBM-2_01
At Coca-Cola HBC, we prioritise the interests,
views and rights of our consumers and end-users
as essential to our strategy and business model.
We continuously assess these impacts and
engage with our consumers through various
mechanisms, including regularly collecting
and analysing feedback from them, to understand
their needs, preferences and concerns.
We are committed to ensuring that our operations
respect the human rights of consumers and
end-users. Our stringent quality control measures
ensure the safety and reliability of our products,
reflecting our dedication to consumer protection.
To effectively address the evolving needs and
expectations of our consumers and end-users,
Coca-Cola HBC adapts its business model and
strategy by developing new products and services,
such as low- and zero-sugar products, products
with natural ingredients, etc. Furthermore, we
maintain open and transparent communication
with consumers about our practices, products
and any potential risks.
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SBM-3 Material impacts, risks and
opportunities and their interaction with
strategy and business model
SBM-3_03,10
Our Business Resilience (BR) programme is
designed to embed the capability, processes and
mindset that enable us to proactively manage
risks – and embrace opportunities – so that we
grow sustainably and meet our short-, medium-
and long-term objectives.
The Group-wide programme includes appropriate
mitigation and response systems that can be
deployed when and where required. Our
integrated and holistic approach has been
particularly important in recent years of
geopolitical, economic and environmental
change. We continue to embed the key principles
of Business Resilience and Risk Management
throughout our business, providing managers
at all levels with the processes and tools they
need to proactively identify and assess risks,
make well-thought-out decisions and take
appropriate and timely actions.
We measure the extent to which the BR principles
and processes are embedded in our business
through key performance indicators, including
the outcomes of our annual resilience maturity
survey involving over 350 senior managers
across all areas, designed to measure our risk
and resilience culture.
For more information, please see the Business
resilience section of the IAR, page 178.
Working in close collaboration with risk-owners
across our business units, Group functions and
the ELT, the CRO is tasked with maintaining a
wide-angled view of all business streams and
identifying emerging risks and opportunities.
Through regular reporting, the CRO ensures
visibility and provides decision support to the
ELT and our Board.
Our process recognises that, the earlier we
identify, assess and manage risk, the higher the
likelihood is of preventing or reducing negative
impacts and taking advantage of opportunities.
For those events that we cannot prevent or that
are unforeseeable, we have well-established
processes to reduce impact on the business.
These include tested contingency plans, a
business continuity programme, our Incident
Management and Crisis Resolution (IMCR)
programme and an insurance programme.
In 2024, we focused on further embedding our
integrated approach across our business units.
This included piloting a new risk management
tool to improve visibility of key risks and enhance
best-practice sharing and analysis. It also involved
optimising assessment of business interruption
risks and embedding the outcomes in our
insurance and business continuity programmes.
Within the double materiality assessment
process, we have reassessed risks and
opportunities facing our business, the
environment and society. One of the most
significant risks to our resilience over the longer
term is climate change. By proactively preparing
for and managing climate risk through our
business strategy and capital investments,
however, we can harness significant
opportunities. Climate risk is fully integrated
into our risk management programme, and
our CRO facilitates more frequent discussions
with a cross-functional team that includes
representatives from Business Resilience,
Finance, QSE, and Corporate Affairs and
Sustainability functions.
SBM-3_02
Following the DMA process, we identified two
material risks across our value chain. The first,
‘Managing our carbon footprint’, refers to our own
operations and to the downstream value chain
and is directly tied to our progress towards
achieving our NetZeroby40 commitment.
The second material risk, ‘Cost and availability of
sustainable packaging’, emerged as material in
both the upstream and downstream segments of
our value chain. In the upstream value chain, this
risk relates to sourcing of sustainable packaging
materials for our products. In the downstream
segment, it relates to reducing packaging waste
and supporting the availability of sustainable
solutions in the post-consumption phase.
SBM-3_08,09,10
The financial effect for 2024 of the material risk
‘Managing our carbon footprint’ is primarily driven
by the €131.1 million of Capex invested on projects
aimed at reducing emissions, mainly related to
energy efficiency, the expansion of our green fleet
programme and energy-efficient coolers. For the
risk related to ‘Cost and availability of sustainable
packaging’, the current financial effect amounts
to €68.6 million Capex, reflecting investments
made during the year, particularly in returnable
containers and packaging-related projects,
and €30 million, reflecting the increased cost
of recycled PET used to bottle our beverages.
For the next reporting period, we do not foresee
significant risk of material adjustment to the
carrying amounts of assets and liabilities
reported in the financial statements as the
result of the material risks identified.
The capital and operating expenditure mentioned
above are reflected in our financial statements,
as part of the overall amounts reported in the
cash flow and income statement respectively.
Our accounting system does not separately
classify sustainability-related investments
or costs, as both are reported in accordance
with the general financial reporting principles.
For Capex, however, we apply an internal process
to identify expenditures associated with growth
initiatives with sustainability benefits and we
are thus able to identify the above-mentioned
amounts. For details on Capital expenditure,
please refer to p.350.
As we move forward with our transition plan,
we anticipate that Capex investments that
support it, will gradually increase to 37% of total
Capex in 2030. After that, we expect to continue
the 2025-2030 trajectory of investments, for both
Capex and Opex/Cogs, to help us meet our
NetZeroby40 commitment.
We are confident that we will be able to fund
the action plan linked to the two material risks
mentioned above. Our sustainable finance
approach underpins the Group’s ability to
align funding strategies with sustainability
commitments while supporting the UN
Sustainable Development Goals and EU
Environmental Objectives. Financing mechanisms
include a diverse range of instruments,
ensuring flexibility in meeting both current and
future financial requirements for action plans.
In 2024, we updated our quantitative assessment
of these two material risks. While their inherent
financial effect is material, we have undertaken
considerable planning to ensure that they will
not have an impact on our business strategy,
therefore reducing their residual effect to our
business. We confirmed the resilience of our
strategy through the assessment of these
risks over the short (2025), medium (2030)
and long term (>2030) and under different
climate scenarios.
For the ‘Managing our carbon footprint’ risk,
we updated our comprehensive quantitative
assessment in line with our continuing refinement
of our NetZeroby40 transition plan and carbon
reduction glidepath. We estimated the future cost
of carbon under multiple climate scenarios,
including RCP1.9 (Paris Ambition) and RCP4.5
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(stated policy) as well as several transition
scenarios, including the NGFS and IEA transition
scenarios. We have identified several initiatives to
reduce our scope 1 and 2 emissions, including a
decrease in our overall use of energy and the
increase in the use of renewable energy. In
addition, 90% of our emissions are scope 3 thus,
we are dependent on our suppliers and customers
to reduce those emissions. As a result, our climate
transition plan ensures that we are able to
maintain and grow our business, through effective
management of the carbon risks.
For scope 1 emissions, we used projected carbon
pricing for the soft drinks industry, and for scope 2
we used projected carbon pricing for utilities. We
used these projections to estimate the impact of
climate change on future annual operating costs
for generating carbon and applied that to our
projected carbon emissions to 2040 as set out
in our NetZeroby40 roadmap.
Based on the Paris Ambition (RCP1.9) scenario,
we have estimated that the additional direct
annual carbon cost, associated with scope 1 and 2,
will peak at €25.5 million by 2030, reducing to
€9.3 million by 2040. Under a Stated Policy
(RCP4.5) scenario, we have estimated that the
additional direct annual carbon cost for scope 1
and 2, will reach €10.8 million by 2030, reducing
to €2.8 million by 2040. We also performed
a preliminary assessment of the carbon cost
associated with scope 3 emissions (excluding
packaging and ingredients that are covered
under separate risks). Due to the indirect nature
of these potential costs and the uncertainty
around the extent of their residual financial
effect to our business, we will continue to
refine our methodology and update our
assessment next year.
The second material risk, ‘Cost and availability of
sustainable packaging’ is closely linked to the
‘Managing our carbon footprint’ risk, as packaging
represents more than 30% of our emissions. Our
Package Mix of the Future strategy, established in
2023, prepares us well to maintain and grow our
business over the longer term through effective
management of the ‘Cost and availability of
sustainable packaging’ risk. Initiatives such as
increasing the use of recycled and refillable
packaging along with advancing decarbonisation
in the packaging industry contribute significantly
to our journey towards NetZeroby40.
Based on the updated quantification assessment
that we performed in 2024, which was based on
the future cost of carbon related to packaging, we
estimate that the annual cost of packaging under
a Paris Ambition (RCP1.9) scenario will increase
by 13.2% by 2030 and by 2.2% by 2040. Under a
Stated Policy (RCP 4.5) scenario, we estimate that
the annual cost of packaging will increase by 4.2%
by 2030 and by 0.4% by 2040.
For the medium and long term, both material risks
are included within our viability statement.
Following a thorough and robust assessment of
the Group’s risks that could threaten our business
model, future performance, solvency or liquidity,
the Board has concluded that the Group is well
positioned to effectively manage its financial,
operational and strategic risks.
For the likelihood assessment of risks linked
to climate change please see IRO-1_09.
For more details on the material risks, please
see section ‘Principal risks and opportunities’
of this IAR.
SBM-3_01,06,07
In addition to these material risks, we have also
identified material impacts across our value chain.
To describe what the material impacts are,
we followed a holistic process as described in
the Strategic Report, ‘Materiality assessment’
section. We identified 16 material positive
and negative impacts, with at least one impact
identified in each value chain segment
(upstream, own operations and downstream).
Material impacts that are associated with own
operations in any of the horizons, correspond to
those arising from our own activities, while those
connected to upstream or downstream segments
correspond to those arising from business
relationships and activities.
In the upstream value chain, we identified
impacts on both the environment and people.
The environmental impacts were negative,
whereas the impacts on people were mostly
positive. The impacts in upstream segment
stem from our suppliers’ agricultural activities,
manufacturing of raw materials, capital goods,
utilities and transportation.
In our own operations we observe negative and
positive impacts on environment and people,
coming from activities related to products’
production and packaging, warehousing,
and own distribution.
In the downstream value chain segment, we
identified both material negative and positive
impacts to environment, while the material
impacts to people were all positive. These impacts
come from our third-party distribution, product
use phase and products’ end-of-life.
We have conducted our evaluation across four
time-horizons. While not all our impacts and risks
are confined to a single time-horizon, there are
instances where an impact or risk is material
across multiple time-horizons.
For further details please refer to Materiality
table in ‘Double Materiality Assessment’
on pages 39 to 40.
SBM-3_04,05
Our assessment highlights the varying nature of
our impacts across different segments. We have
recognised the impact we create to environment
and to people through our business model and
value chain activities, as well as our business
relationships with our stakeholders.
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Table 4: List of impacts
Impact
Impact nature
Impact time
Effect
• Climate change
Negative
Actual/
Potential
GHGs are an externality of our business model and value chain. Therefore, we take targeted actions across the value
chain to reduce them and to contribute to climate change mitigation. Our largest emissions come from packaging
and ingredients suppliers (upstream) and from the electricity used for our drink equipment (downstream). At our
own operations, we strive to minimise scope 1 and 2 emissions, through decarbonisation actions focusing on
composition of energy sources. For scope 3, we work with our suppliers and partners to decarbonise.
• Soil pollution
Negative
Potential
Upstream: We recognise that the excessive use of nitrogen and phosphorus fertilisers in agriculture can pollute
the soil (our Tier 2 and Tier 3 suppliers).
• Soil pollution
• Water pollution
Negative
Actual/
Potential
Downstream: Indirect impact from post-consumer waste, in countries where effective collection programmes
and schemes are lacking, can lead to pollution in soil and water.
• Water pollution removal
Positive
Potential
Downstream: We have also identified indirect positive impact through our packaging initiatives, the execution of
SBTN actions and water/nature replenishing programmes.
• Water use
Negative
Actual/
Potential
Own operations: The food and beverage (F&B) sector can significantly impact water resources through various
activities associated with food and beverage production. These include using water as a fundamental ingredient,
as well as for essential processes such as cleaning equipment, mixing ingredients and washing. We acknowledge
the extent of our influence on water resources, particularly through the abstraction and consumption of
water in water-stressed or high-risk areas, often referred to as priority locations, as part of our production
operations.
Upstream: Water is used by our agricultural suppliers (Tier 2 and Tier 3) for growing the agricultural ingredients. The
agricultural sector requires a steady and safe supply in large amounts of water to ensure the health and wellbeing of
crops, as well as for the processing of these as ingredients in our products. Therefore, our impact is considered to
be material taking into account the current and projected quantity of products.
• Water replenishment
Positive
Actual/
Potential
Own operations and Downstream: We have identified significant positive impact on nature, particularly with our
water stewardship and replenishment projects. We have expanded water stewardship efforts by increasing the
number of community projects in water risk areas from 12 in 2023 to 16 in 2024, as well as by replenishing water
back to communities and nature through various water projects outside the manufacturing plant boundaries,
resulting in a net positive water balance.
• Land-ecosystem
use change
Negative
Potential
Upstream: We have recognised land-use change as a negative impact due to potential deforestation coming
mainly from Tier 2 and 3 suppliers. Agricultural suppliers cannot quickly and sustainably reduce their impact
regardless of our efforts.
• Health and Safety
Negative
Actual/
Potential
Health and safety of our employees are of paramount importance. Employees can be affected by any types of
accidents in any activity (manufacturing, warehousing, administration, marketplace activities by commercial
team, etc.) at own operations. We keep metrics to track our progress, and we have set specific goals. Similarly,
‘Health and safety’ remains critical for our contractors and workers in the value chain performing work at our
premises and in 3PL distribution, as any accidents can cause serious injuries or even death.
• Health and Safety
Positive
Actual
Furthermore, as part of our internal health and safety management system, all employees (100%) receive
mandatory safety training. Health and safety trainings are developed also as Group e-learning programmes.
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Impact
Impact nature
Impact time
Effect
• Contribution to
employment
Positive
Actual/
Potential
Additionally, we provide an Employee Assistance Programme (EAP), health insurance to employees and training
on financial wellbeing. For our suppliers and workers in the value chain, we contribute to their employment, by
offering a living wage, and social security through fair practices and long-term contracts. We have in place the
Principles of Sustainable Agriculture and Suppliers Guiding Principles ensuring that all our suppliers treat their
co-workers and the environment with respect.
• Provision of social
protection and social
security
Positive
Potential
• Gender equality
Positive
Actual/
Potential
Related to gender equality in our operations, we have established special programmes for women, ‘Women
Leaders Network’, to enhance female equality.
• Accessibility of living wage
Positive
Actual/
Potential
Due to our size, we employ hundreds of employees, positively affecting their employment status with a
corresponding wage, offering our employees the financial incentives and stability they deserve.
• Access to education
Positive
Actual/
Potential
Besides training related to health and safety to our employees, we offer numerous training materials and
education to all our employees, enhancing their background to key issues.
Additionally to our employees and workers, we provide training and capacity-building to our communities, under
the umbrella of #YouthEmpowered, through which we are equipping them with the skills, experience and
confidence they need to secure a brighter future. Additionally, 10% of community participants join our internal
management programmes which enable skills and knowledge development to different community members.
• Availability, accessibility,
affordability and quality
of water
Positive
Actual/
Potential
We positively impact our communities, particularly in the availability, accessibility, affordability and quality of water.
We have implemented community WASH programmes in priority locations to strengthen their water, sanitation
and hygiene (WASH) systems. Furthermore, we have provided 7.2 million litres of beverage to Red Cross and other
NGOs for disaster relief and for other community supporting activities. Overall, we have created 501,982
indirect jobs across the value chain, and 1 job in our system corresponds to 13 in the community.
• Access to (quality)
information
• Health and safety
• Access to products
and services
• Responsible marketing
practices
*No impact identified
Disclosed due to stakeholders’ interest
We ensure that our products are compliant with regulatory frameworks for food safety, while we provide the
respective information to consumers regarding the quality and nutritional value of our extended portfolio.
The marketing practices used follow the appropriate legislation, and no misleading content is incorporated.
SBM-3_11
During the previous reporting period, ‘Coca-Cola HBC AG 2023 Integrated Annual Report’ had been prepared in accordance with the Global Reporting Initiative Standards (GRI Universal Standards 2021), where
we have considered impact but also the interest and concerns of our stakeholders, as well as the importance of the topic to the business.
Following the ESRS requirements, we updated our materiality analysis in 2024 to consider impact materiality, risks and opportunities. While no new material areas were identified that had not been previously
considered in our materiality analysis and strategy, we now align our topics with the ESRS standards.
SBM-3_12
All of our impacts and risks are linked to ESRS topics, sub-topics and sub-sub-topics, as presented in our ‘Materiality Table’. We identified positive impact to communities, referred as ‘Access to Education
(#YouthEmpowered)’, which has been covered within ESRS S3 by providing entity-specific metric. The rest of our impacts and risks are covered by the topical ESRS Disclosure Standards.
For further details please refer to Materiality table in ‘Double Materiality Assessment’ on pages 39-40.
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IRO-1 Description of the process to identify
and assess material impacts, risks and
opportunities
IRO-1_01
In 2024, we conducted a double materiality
analysis based on the European Sustainability
Standards (ESRS) requirements. We regularly
assess our impacts on people and the
environment as part of our day-to-day activities,
engaging with relevant stakeholders and experts.
These ongoing steps allow us to actively identify
and manage our impacts, risks and opportunities
as we evolve, and as new ones arise. At the
same time, we have developed a robust risk
management process that integrates risks and
opportunities deriving from sustainability issues
(see also ‘Double Materiality Assessment’ of the
IAR).
We followed a top-down approach at the Group level
for identifying, assessing and prioritising Impacts,
Risks and Opportunities (IROs). Regarding impacts,
we decided to keep the analysis at the ‘impact’ level
to identify impacts on the environment and people.
Specifically, for impacts to the environment, in
order to identify suitable impact level universe to be
utilised for identifying impacts under a commonly
established impact taxonomy, we leveraged the
impact drivers of nature change under the Taskforce
on Nature-related Financial Disclosures (TNFD).
Respectively, to identify impacts on people under
a suitable impact level universe with a commonly
established impact taxonomy (for social and
socio-economic impacts – which are missing from
the ESRS), we leveraged the UNEP Impact Radar
(impacts to the environment under the UNEPFI
were not utilised as the TNFD categorisation of
impact drivers was used).
Yet, it should be clarified that all actions have
been taken to alleviate any possible negative
impact, are not considered positive impact,
but mitigation actions. Therefore, their mapping
is considered supplementary to the negative
impacts’ identification and aims to facilitate
the IROs’ prioritisation, based on the existing
sustainability targets.
In assessing the materiality of both actual and
potential impacts, we categorise the severity
of current impacts into three dimensions: scale,
scope and remediability. For potential impacts,
we assess them in terms of severity and likelihood.
Current impacts are identified by considering the
interface of activities with nature. Potential
impacts are identified using the ENCORE
platform, which provides us with scientifically
rigorous information about the impacts of
pollution of our sector and our value chain.
Furthermore, within the framework of the
Science-Based Targets for Nature (SBTN) to
which we are aligned, we take into account all five
key environmental pressures (Land, water, sea use
change, Resource exploitation, Climate change,
Pollution, Invasive species) in the context of
identifying and assessing impacts to nature.
IRO-1_04
Impacts’ identification and assessment were
conducted across the value chain (upstream, own
operations, downstream). Specifically, for those
identified in our own operation, we assessed them
based on the specific quantitative criteria set.
Quantitative criteria were used for some of the
impacts on nature in upstream activities,
specifically for Tier 1 suppliers.
IRO-1_06
Actual negative impacts on people and the
environment were assessed based on the severity
of the impacts in terms of scale, scope and
irremediability, following the guidelines of ESRS 1.
Actual positive impacts to environment and to
people were assessed based on the significance
of the impacts in terms of scale and scope.
Regarding the potential negative and positive
impacts to environment, we also considered
the likelihood of the impacts. Regarding the
assessment of potential impacts to people,
their severity takes precedence over the
likelihood, as determined by ESRS 11&2.
IRO-1_02
The process encompassed all the segments of our
value chain, including upstream, own operations and
downstream. To enable impact identification and
assessment, both internal and external sources were
utilised to understand the causes generating various
impacts. The impacts were assessed on a scale of 1
to 5 based on quantitative and qualitative criteria and
categorised according to the impact topic they affect.
IRO-1_14
Internal sources (e.g., 2023 IAR, CDP
assessments, GRI Index file, etc.), and external
sources (e.g., Encore database, TCFD, TNFD,
WWF Water Risk Filter, WWF Biodiversity Risk
Filter, external literature review) were used to
identify impacts3. To construct the assessment
criteria, an external scientific literature review was
also conducted.
To facilitate the impacts’ assessment,
existing assessment reports of impacts on the
environment and people, information from legal
reviews, anti-corruption compliance management
systems, occupational health and safety policies,
ISO audit reports, enterprise risk management
systems and performance KPIs already monitored
were also considered.
IRO-1_15
During the previous reporting period, ‘Coca-Cola
HBC AG 2023 IAR’ was prepared in accordance
with the Global Reporting Initiative Standards
(GRI Universal Standards 2021). Currently,
both ESRS Standards and the GRI Universal
Standards are used.
IRO-1_03
The business model aspects under the analysis,
at Group level, included:
a. Main business model activities, including
manufacturing of non-alcoholic, ready-to-drink
beverages, manufacturing of packaging
materials (inhouse rPET), manufacturing of
snacks, distribution of alcoholic (sparkling and
premium) and coffee drinks, as well as
secondary activities as marketing, warehousing,
and transportation and distribution.
b. Main business model inputs (including
raw materials (ingredients, packaging)
and other supplies).
c. Main business model outputs (including
main products and services from all
business segments).
d. Main externalities (i.e., GHG emissions,
waste, etc.).
1. ESRS 1, chapter 3.4, paragraph 45.
2. ESRS 1, Application Requirement AR. 11.
3. ESRS 1, Application Requirement AR. 9(b).
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Sustainability Statement continued
IRO-1_01
Identifying risks and opportunities is crucial for comprehensive sustainability reporting. The process
of identifying the risks and opportunities is aligned with the requirements of the ESRS and ensures a
comprehensive assessment of financial effects. More specifically, Coca-Cola HBC’s risk universe
includes 20 risk categories aligned with the growth pillars.
Table 5: Risk universe – Categories
Leverage 24/7
Beverage
Portfolio
Win in the
Marketplace
Fuel Growth
Through
Competitiveness
& Investment
Cultivate the
Potential of
Our People
Earn our Licence
to Operate
Product Category
Acceptability
Commercial
New Business
Initiatives
Health and Safety
Sustainability
Stakeholder
Relationships
Product Quality
and Food Safety
Financial
Management
People
Environmental
Impact
Competing in the
Digital Marketplace
Cyber – IT
Resilience and
Data Privacy
Tax
Geopolitical
and Security
Environment
Legal and Regulator
Fraud
Macroeconomic
Environment
Business
Transformation
Business
Interruption
In addition to the already identified sustainability-related risks and opportunities, the following sources
are also examined in order to ensure the completeness of the list:
• risks and opportunities arising from negative and positive impacts identified during the impact
materiality; and
• dependencies in the value chain (ENCORE tool).
Each risk category is assessed considering all value chain segments (upstream, own operations and
downstream). The identified risks are categorised as either environmental, social or governance risks
based on their nature.
IRO-1_07
To ensure effective management and
communication of these risks, we have
established regular updates and discussions.
Twice a year, the Business Resilience team hosts
a conference where all risk sponsors, risk and
insurance coordinators, and Business Resilience
Managers are updated on key trends and
emerging risks across the business. The CRO
also facilitates discussion with the regional
management teams twice a year to discuss risk
and resilience issues and trends, and to calibrate
and benchmark risks across the business. At least
every two years, each business unit participates
in an IMCR validation exercise led by a cross-
functional Group team. This includes training
and participation in crisis simulation based on a
relevant business risk.
IRO-1_08,12
We carry out an analysis of the main current and
emerging ESG trends in the beverage industry
by using desktop research, benchmarking with
peer companies, output from different ESG
raters and indices, reports and articles on global
trends and beverage industry trends, regulatory
developments and standards (such as CSRD,
ESRS, ISSB, SASB, ENCORE and the GRI Standards),
and by listening to the concerns of our stakeholders
at both local and Group level.
IRO-1_08
Our materiality assessment is integrated into
our risk management programme, and we
evaluate the risks and opportunities associated
with priority topics.
IRO-1_12
Over the years (including in January 2024), we have
performed annual materiality surveys where we
consulted with more than 500 internal and external
stakeholders, including customers, wider consumers,
employees, suppliers, community representatives,
governments, non-governmental organisations,
investors, trade associations and academics. Their
feedback is considered in our sustainability strategy.
IRO-1_13
Opportunities are identified by using the same
process as risks. Both risks and opportunities are
evaluated by measuring likelihood and consequence.
Potential risks and opportunities are identified and
documented in the Risk Universe, which is reviewed
and updated annually.
IRO-1_10
Within the ESG materiality assessment process we
have assessed a long list of risks and opportunities.
Among these, climate change stands out as one
of the most significant risks to our long-term
resilience. However, by proactively preparing for
and managing climate risk through our business
strategy and capital investments, we can turn
challenges into opportunities. Climate risk is fully
integrated into our BR programme, and our CRO
facilitates frequent discussions with a cross-
functional team that includes representatives
from Business Resilience, Finance, QSE, and
Corporate Affairs and Sustainability.
Another critical sustainability-related risk is
linked to the cost and availability of sustainable
packaging, which aligns with our commitments
to circular economy. This issue represents a key
focus within our broader sustainability strategy.
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Sustainability Statement continued
Sustainability-related risks are included in our Risk
Management programme and are prioritised in
the same way as other risks. The prioritisation of
risks is based first on the assessed level of residual
risk, followed by inherent risk.
IRO-1_11
The Board retains overall accountability and
responsibility for the Group’s risk management
and internal control systems. For more details,
please refer to the ‘Business Resilience’ section.
Our internal audit department conducts an annual
independent audit of the Business Resilience
programme and its implementation, assessing the
Company’s risk management, business continuity
and crisis management processes, and their
application against business best practices and
the International Accounting Standards. The Head
of Corporate Audit makes recommendations to
improve the programme, where required, and
the findings are submitted to the Audit and Risk
Committee. The Board and its Committees
conduct annual reviews of the effectiveness
of our internal controls including sustainability-
related controls.
E1.IRO-1_05
The time horizons that are considered for the
assessment of the risks and opportunities are
aligned with the ESRS requirements and can be
linked to our strategic and financial planning. These
time horizons for the 2024 reporting year are:
• Current: 2024
• Short-term: 2025 (equal to the horizon of
the business planning process and targets)
• Medium-term: 2030 (equal to the horizon
of our long-range plan process)
• Long-term horizon: >2030
IRO-1_09
The magnitude of the financial effect is calculated
either quantitatively or qualitatively for all the risks
and opportunities identified, taking into account
whether and to what extent they affect one or
more of the following financial metrics for
Coca-Cola HBC; financial position, financial
performance, cash flow, cost of capital and access
to finance.
Where possible, the quantitative metric of
percentage of comparable EBIT (cEBIT) is used
to assess the financial effect of each risk and
opportunity, considering a five-step scale.
For those risks and opportunities where the
quantitative metric could not be calculated,
a qualitative magnitude is provided using
the same five-step scale.
For the current (2024) financial effect, their
magnitude is solely used along with a suitable
threshold to address materiality. Specifically, the
materiality threshold is set such that all risks and
opportunities that have a potential impact on the
business assessed as ‘Critical’ or ‘Major’ are
considered material, while those that have a
potential impact assessed as ‘Moderate’, ‘Minor’
or ‘Insignificant’ are deemed non-material.
Regarding the anticipated risks and opportunities,
the likelihood of occurrence needs also to be
clarified for each corresponding time horizon. To
evaluate the likelihood of occurrence for each risk
or opportunity, the scoring considered is: ‘Almost
certain’, ‘Likely’, ‘Possible’, ‘Unlikely’ and ‘Rare’.
Considering the combination of the financial
effect magnitude and the likelihood scoring
as defined above, a scale for the inherent risk
emerges: ‘Critical’, ‘High’, ‘Moderate’, ‘Low’ and
‘Very low’.
For the anticipated (short-, medium- and
long-term) risks and opportunities, the above
scale is used along with a suitable threshold
to address their materiality. Specifically, the
materiality threshold is set such that all risks
and opportunities labelled as ‘Critical’ or ‘High’
are considered material while those categorised
as ‘Moderate’, ‘Low’ or ‘Very low’ are deemed
non-material.
E1.IRO-1_01
Through our annual carbon accounting process,
we calculate the GHG emissions across our entire
value chain, encompassing our own operations
as well as upstream and downstream activities.
The impact on climate change is directly
correlated with the severity of both direct
and indirect GHG emissions.
Our screening process for activities impacting
climate change is closely linked to the significance
level established in our carbon footprint
assessment, which aligns with SBTi criteria.
Accordingly, we estimate and report emissions
that constitute a material portion of our total
carbon footprint, totaling to >95% of our
overall carbon footprint inventory.
To identify potential future sources of GHG
emissions and assure that we report every activity,
entity or emission’s sub-category as per our
materiality threshold, we periodically conduct
a comprehensive carbon footprint assessment
across our entire value chain. This process
includes evaluating prospective investments,
enabling the business to project our carbon
footprint inventory over the coming years in
alignment with our business plan.
Scale is measured by our annual progress
in alignment with our roadmap for achieving
our validated by the SBTi goals. Scope is
predetermined, due to the impact of GHG
emissions, to be global in reach. Remediability
refers to the ability of natural systems to restore
the climate to its prior state, and is set exceeding
30 years, reflecting the extended timeframe
required for significant environmental restoration.
E1.IRO-1_02,03,04,06,07,08,09,10,11,12,13,15,16
Following our assessment, we have identified
three risks that have been linked to ESRS E1 –
Climate Change:
• Managing our carbon footprint
• Impact of extreme weather on our production
and distribution and,
• Impact of climate change on the cost and
availability of key ingredients
Out of the above three risks, only ‘Managing
our carbon footprint’ has been deemed
financially material.
As part of the ‘Managing our carbon footprint’
risk assessment, for scope 1 emissions, we used
projected carbon pricing for the soft drinks
industry, and for scope 2 we used projected
carbon pricing for utilities. For further details
regarding the scenarios and time horizons
used please refer to SBM-3_08,09,10.
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Sustainability Statement continued
Global warming has intensified extreme weather
events, such as droughts and storms, increasing
risk to our operations. In assessing the ‘Impact
of extreme weather on our production and
distribution’ risk, we used different climate
scenarios, including RCP8.5, to assess the
sensitivity of 62 locations to flood risk, likelihood
of wildfires, precipitation and drought. As a result,
we identified 20 plants at higher risk. While all 20
plants have mitigation plans for business
interruption, only five require additional Capex
directly due to climate change. One-off
investments to strengthen resilience are
estimated at €28 million by 2030, of which
€6.9 million are specifically linked to climate
change.
Rising insurance premiums reflect also increased
climate-related risks. The SwissRe Institute
projects rate increases of 40% for fire and 25%
for flood and precipitation. If applied to the higher
risk facilities, we have estimated potential annual
increases in insurance premiums as a direct result
of climate change to be approximately €2.0 million
per annum by 2040.
During 2024, we enhanced our assessment of the
potential for business interruption in our plants,
for any reason, including climate change and
estimate that climate change will only minimally
contribute to the increase of this risk. As a result
of this assessment, we are updating our business
continuity plans to enhance our ability to continue
to supply our customers at acceptable levels and
within our risk tolerance if reasonably foreseeable
disruptive events occur.
Finally, when it comes to the ‘Impact of climate
change on the cost and availability of key
ingredients’ risk, we have considered the physical
risk related to the changing productive capacity of
key agricultural regions supplying our ingredients.
Some of the main sugar producing regions are
projected to face productivity declines under
most scenarios, while other growing regions may
benefit. If alternative sources compensate, our
overall sugar supply risk remains neutral. Most
suppliers are conducting contingency planning,
including diversifying sourcing. While physical risks
to our ingredient supply are a concern, their longer
timeframe allows for proactive measures and
resilience-building.
While all ingredients and materials remain subject
to market dynamics, the application of carbon
pricing mechanisms due to regulatory pressures,
are expected to have the greatest impact on costs
and supply stability. Regulatory measures
targeting agricultural emissions and shifts
in climate-related policies may drive higher
production costs for key ingredients, leading to
increased input cost for us. Emissions-related
costs are expected to drive annual cost rises of
9.2% by 2030 and 1.3% by 2040 under an RCP1.9
scenario and 4.4% by 2030 and 0.5% by 2040
under an RCP4.5 scenario. To mitigate this risk,
we are working closely with our suppliers to
monitor and support potential changes in crop
yields, diversify our supplier base and identify
alternative growing regions where necessary.
It is important to note that we have identified one
material risk ‘Cost and availability of sustainable
packaging’ that is partly driven by transition risk,
as we expect higher cost of sustainable packaging
materials due to the future cost of carbon.
However, this risk has been linked to the E5
‘Circular economy’ standard, for the purposes
of this sustainability statement. For more details,
please see below, section E5.IRO-1_01.
Finally, we recognize the opportunity for our
business in meeting or exceeding stakeholder
expectations in managing our carbon footprint.
As noted in our assessment of the impact of our
sustainability performance on our reputation
(see ‘Emerging Risk: The impact of consumer
perceptions of our environmental performance’
in the ‘Risk’ section of the IAR), an increase in
perceptions of our environmental performance
has a direct link to an increase in consumers’
intent to purchase and therefore sales.
E1.IRO-1_10
Given climate-related risks impact Coca-Cola
bottlers globally in similar ways, we have taken
a Coca-Cola System approach to the
identification of risks. We have identified and
assessed four transition risks: managing our
carbon footprint, the cost and availability of
sustainable packaging, the impact of consumer
perceptions of our environmental performance on
our reputation and the effect of increasing
government regulation on the cost and availability
of water. Of these risks, we have assessed
managing our carbon footprint and the cost and
availability of sustainable packaging as material
and the outcome of the assessment of those risks
is detailed in section SBM-3_08,09,10 of the
Sustainability Statement, and the ‘Principal risks
and opportunities’ section of the IAR.
E1.IRO-1_14
As part of the cross-functional work on our
climate transition plan, we have assessed the
potential of locked-in GHG emissions by 2030
and 2040. This has been incorporated into the
emissions glidepath that we use as the basis for
the calculation of our transition risks. For more
details on the locked-in GHG emissions, please
refer to section E1-1_07 of this document.
E2.IRO-1_01
We employ a robust and systematic process
to identify and assess material impacts, risks
and opportunities related to pollution. To identify
the material impacts, risks and opportunities, we
follow the ‘LEAP’ approach as proposed by ESRS
guidelines. This approach encompasses all value
chain segments and is divided into the following:
• Locate: We apply a screening process to
identify sites with significant environmental
interfaces. Specifically, we focus on locations
where pollution impacts water excluding
GHG emissions. Our assessment criteria
encompass both qualitative and quantitative
indicators, evaluating factors such as pollutant
types, discharge volumes and concentrations,
proximity to vulnerable ecosystems, and
regulatory compliance.
• Evaluate: We assess scale using the WWF
Biodiversity Risk Filter in conjunction with the
received notices of violation, which highlight
the level of significance. Scope is assessed
using the level of geographical occurrence
of facilities with relevant impact, and for
remediability, we estimate the anticipated time
required for natural restoration. The likelihood
of potential impacts is assessed by considering
best practices, the business model and the
mitigation measures we implement.
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Sustainability Statement continued
• Assess: We have assessed the financial
effect of transitional risks due to regulation
and impact on our reputation. We have also
assessed the risk related to disruption in our
production process due to unavailability of key
raw ingredients due to soil pollution, as part of
the upstream value chain. None of these risks
was deemed financially material.
E2.IRO-1_03
To avoid pollution from own operations, we adhere
to the strict environmental standards of TCCC
(KORE standards), which in many cases are more
stringent than the local legislation. We also treat all
of our wastewater to the levels that support aquatic
life. All our manufacturing sites are certified under
the ISO 14001 Environmental Management
System. Upstream pollution may come from soil
pollution at farmers’ level, which are our Tier 2 and
Tier 3 suppliers if they do not follow our Principles
for Sustainable Agriculture (PSA). Downstream
pollution is linked to leakages in soil and water
from improperly collected post-consumer waste
(packaging waste from our beverages), mostly in
emerging countries such as Egypt and Nigeria.
E3.IRO-1_01
We employ a robust and systematic process
to identify and assess material impacts, risks
and opportunities related to water and marine
resources, applying the 4 Phase approach
as indicated in the ESRS. This approach
encompasses all value chain segments
and is divided into the following:
• Locate: We apply a screening process to
identify plants located in areas at water risk,
including areas of high-water stress which
are considered to be priority locations. As
per our rigorous risk assessment, in 2024,
we had 19 plants located in water risk areas,
that interface with surface and groundwater
resources through withdrawal, consumption
and discharge. The risk would include water
stress but also some water quality risk or
WASH risk for communities (lack of clean
water and sanitation). Additionally, Coca-
Cola HBC considers where the interface with
marine resources takes place. Using the S&P
Global definition coming from the biodiversity
criterion of the Corporate Sustainability
Assessment, sites that interface with marine
resources as those located either within or
adjacent to a distance of 0 to 2 kilometres
from marine resources. For the year 2024,
these sites include only the Aeghion plant in
Greece and the Vladivostok plant in Russia.
Additionally, we consider the Heraklion plant in
Greece (situated at 2.5 kilometres from marine
resources) as relevant due to its proximity within
municipalities or geographical areas adjacent to
the seashore.
None of these plants had directly interfaced with
marine resources, for example via abstraction of
seawater and/or discharge of treated wastewater
in marine water bodies. The screening process
is extended to the upstream and downstream
value chain, following the same process as in own
operations, for major suppliers and communities.
The related activities of the whole value chain
that occur in priority locations proceed to the
‘Evaluate’ step.
• Evaluate: Ιn order to assess the severity,
we use the SBTN indicators related to water
availability and consumption to assess how
grave our impact is (scale); we estimate the
scope which assesses the level of geographical
occurrence of facilities with impact to water
resources, and remediability which assesses the
anticipated time required for natural restoration
of water bodies, taking into account the impact
caused. The likelihood of potential impacts
assesses the probability of an impact to occur
considering best practices and based on the
business model and the mitigation measures
that we implement.
• Assess: Risks in own operations identified
are the insufficiency of water to service our
needs (throughout the production process),
which is a physical chronic risk; the increased
water costs, which is a transition market risk;
and the potential damage to our reputation
due to the use of significant amounts of water
from the local watershed that could reduce the
availability of water for local communities, which
is a transition reputational risk. Regarding the
identified water-related opportunities, water
recovery from sewage treatment emerged,
which is a resource efficiency opportunity. None
of these risks and opportunities was deemed
financially material.
Furthermore, on a plant level, a tailored risk
assessment framework exists. Based on this
framework, the most relevant dependency-
related water risks considered are:
• watershed baseline water stress;
• ecological status and qualitative risks
of water resources;
• communities’ access rights to clean water
resources;
• hygiene and sanitation services;
• regulatory framework; and
• biodiversity and important water-related
areas surrounding our manufacturing sites.
For further information related to the water risk
assessment that is carried out on our plants,
please visit Water Stewardship and Water Risk
Management Programmes.
• Methodologies, assumptions and tools
utilised: Coca-Cola HBC applies the WWF
Water Risk Filter, which provides detailed
information regarding water risk on water
availability, quantity, quality and other risks in
different locations worldwide. The indicators
monitored are: water use/water withdrawal per
source, water reused or recycled, clean unused
water and quantity of wastewater discharged.
Moreover, location-based assessments are
carried out in each plant in order to evaluate
the vulnerability of the associated water
resources. In Alliance for Water Stewardship
(AWS) certifications or ISO 46001 certifications,
verified by a third party, the impact of water
withdrawal is assessed on both site level and
watershed scale. This assessment includes
important water-related areas, the value chain,
local communities and indigenous people,
and biodiversity value. The risk assessment
is conducted taking into consideration the
severity of impacts and the frequency for
two separate categories (frequent and
non-frequent physical risks). Also, to identify
potential impacts, the ENCORE platform
is utilised.
Water risk management programmes are
organised in all our bottling operations. They
allow us to implement successive risk assessment
steps, create appropriate mitigation measures
and actively follow-up the results of the mitigation
plan and effectiveness in reducing the water
risk levels. By implementing the water risk
management programme, we aim to do
the following:
• Assess specific location-based water risks and
vulnerabilities relevant to each plant.
• Identify the water priority locations for which
external goals are raised.
• Implement appropriate mitigation measures for
the identified water risks and vulnerabilities.
We evaluate the water risks and vulnerabilities
for each plant based on a common risk scoring
methodology that captures strategic, operational
and reputational risks.
We extend the scope of water risk assessments
from the plant level to the watershed and
communities. Our evaluation comprises several
water risk aspects, such as supply reliability, water
efficiency, compliance, water economics, product
quality and food safety, water sustainability, and
local and social aspects. For all these water risk
aspects, we are considering: 1) the dependencies
of our manufacturing sites to the overall
organisational context, and 2) the impact of
operations to the environment, watershed and
local communities. Most relevant dependency-
related water risks considered in our assessment
are: watershed baseline water stress, ecological
status and qualitative risks of water resources,
communities’ access rights to clean water
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Sustainability Statement continued
resources, hygiene and sanitation services,
regulatory framework, biodiversity and important
water-related areas surrounding our
manufacturing sites. The most significant
impact-related water risks considered in our
assessment are: the impact of our water use on
the naturally renewable water resources, the
impact of our wastewater operations and
discharge to the natural environment, and the
impact of our community projects on the
watersheds health status. During the mid-term
and long-term water risk assessment processes,
we evaluate the future trends that might impact
the current water risks. The starting point for the
climate change impact on water resources is
related to water availability. We use the publicly
available information from recognised platforms
such as Aqueduct (WRI) and Water Risk Filter
(WWF) to evaluate the change in baseline water
stress of the areas in which our plants are located.
We also factor in the current source water
utilisation rate (calculated as water use volume
divided by available water at source). This allows
us to calculate the future source water utilisation
rate. If this value exceeds 100%, it means we need
to optimise and expand our water infrastructure
to ensure future available water volumes for our
production needs. We also quantify the climate
change impact on water resources availability
as financial risk. We specifically quantify the
additional operational and capital expenditure we
need to increase water availability for the climate
scenarios of 2030 and 2040, under two different
climate scenarios. We actively monitor the
regulatory changes that may potentially impact
water resources so we can proactively upgrade
plants’ water supply and water treatment
infrastructures. The reputational issues are
considered in our stakeholders’ engagement
process, and we agree common actions
to address shared, current and future
water challenges.
E4.IRO-1_01,02,03,04
We apply the LEAP approach, specifically the Locate,
Evaluate and Assess steps as indicated in ESRS.
These steps can be further analysed as follows:
• Locate: We develop a list of the locations of our
assets and identify the biomes and ecosystems
our assets interface with. Consequently,
we identify the integrity and importance of
biodiversity in these areas and carry out a
mapping of the biodiversity-sensitive areas.
Finally, we identify our activities as well as those
in our upstream and downstream value chain.
In 2024, 7 plants were in close proximity to
legally protected areas. Out of them, 5 plants
are in proximity from zero to 2 kilometres as
per the definition of the S&P Global Corporate
Sustainability Assessment biodiversity criterion.
• Evaluate: Regarding the identification of current
impacts, we consider the direct impact of the
interface of our activities with the biodiversity
in the material locations. Moreover, we indicate
the size, scale, frequency of occurrence and
timeframe of the impacts on biodiversity and
ecosystems in these areas. We estimate the
percentage of our procurement spent from
major suppliers with facilities located in risk-
prone areas (with threatened species on the
IUCN Red List of Species, the Birds and Habitats
Directive or national list of threatened species,
or in officially recognised Protected Areas,
the Natura 2000 network of protected areas
and Key Biodiversity Areas). Furthermore, we
indicate the size and scale of the dependencies
on biodiversity and ecosystems, including on
raw materials, natural resources and ecosystem
services. Regarding the identification of potential
impacts, we use the ENCORE platform that
provides us with scientific rigorous information
about the impacts on water resources of
the sector and our value chain. After the
identification process, we assess the severity
and likelihood (for potential impacts) of the
positive and negative impacts. Specifically, to
assess the severity of our impact, we assess:
the scale through the WWF Biodiversity Risk
Filter, the scope which assesses the level of
geographical occurrence of facilities with impact
to biodiversity and the remediability which is
determined by the anticipated time required
for natural restoration of ecosystems. Also,
likelihood of potential impacts assesses the
probability of an impact to occur considering
best practices and based on the business model
and the mitigation measures that we implement.
At a site level, we have conducted biodiversity
impact and risk assessment throughout our
value chain which can be found in our 2022
Biodiversity Impact and Risk Assessment.
Additionally, on a five-year basis, we conduct
a Source Vulnerability Assessment, which
includes impact assessment related to
biodiversity within our own operations.
• Assess: Physical and transition risks (including
systemic risks) and dependencies in relation to
nature are considered during the ‘assess’ step.
Based on the assessment process, the risks
for further consideration are three transition
risks. In the upstream value chain, difficulties in
accessing ingredients and/or potential increase
in their cost driven by climate change, and low
quality or quantity of agricultural ingredients
used in our production triggered by invasive
species in our supply chain are assessed as
transition market risks. In the downstream
value chain, the impact on our reputation if we
do not meet our deforestation commitment, is
assessed as a transition reputational risk. None
of these risks was deemed financially material.
E4.IRO-1_06
Please read our Biodiversity Impact and Risk
Assessment for detailed insights regarding our
sites: within our seven manufacturing sites in close
proximity to legally protected areas up to
30 kilometres, there is no site with negative
impact on biodiversity.
E4.IRO-1_07
For calibration of our material impact, we
have approached representatives from the
local communities in Europe and Africa, and we
have captured their feedback. In every Annual
Stakeholder Forum, there are representatives
from local communities who discuss the relevant
sustainability topic and suggest actions
for improvement.
Within the WASH projects, we provide clean water
access and sanitation to communities in need, and
we work together with NGOs, local municipalities
and local representatives. In other water
stewardship projects, e.g., for providing water
for irrigation, we work with affected farmers.
E4.IRO-1_08
Negative impacts on ecosystem services are
avoided by implementing replenishment projects
in our plants in countries we operate. Our negative
impact assessed in direct operations is related
only to water use, however, we address water
across the entire value chain by:
• undertaking Source Vulnerability Assessments
in 100% of our manufacturing sites, which
serves as a basis for our Source Water
Protection Plan;
• actively reducing the amount of water used in
the production of our beverages and treating
wastewater at levels that support aquatic life;
• partnering with suppliers to minimise our water
footprint across the entire value chain;
• investing in community water conservation
projects designed to replenish the water we use
through innovative sustainable technologies;
and
• delivering Alliance for Water Stewardship or ISO
46001 Water efficiency management systems
certification at all our manufacturing sites.
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
E4.IRO-1_14
As of 2024, we have one site overlapping with a
legally protected biodiversity area (Natura 2000,
Category IV-VI) and six sites located near other
legally protected areas up to 30 kilometres.
E4.IRO-1_15
Even though we have activities near legally
protected areas, we do not negatively affect these
areas by any means of deterioration of habitats
and/or species. This is confirmed in our Source
Vulnerability Assessment (SVA), an assessment
done regularly for each manufacturing site by an
external independent expert and documented in
the SVA.
E4.IRO-1_16
We fully comply with all local biodiversity
regulations and, on top, we have voluntarily
certified our sites in ISO 14001 and Water
stewardship certifications (AWS or ISO 46001).
As no negative impact has been identified, our
measures are rather for addressing the positive
impact, such as replenish water.
E5.IRO-1_01
Resource inflows, outflows and mostly waste were
used as drivers of impacts which affect soil and
water bodies. Furthermore, TNFD does not have
a specific impact topic related to circular
economy, so to be compliant with TNFD, we
incorporated them as drivers of impacts to soil
and water pollution. To determine the latter, all
activities of our value chain (upstream, own
operation and downstream) were screened, and
according to their location in the value chain,
different assumptions were made.
The ROs identification process included a thorough
review to capture the full scope of ROs, incorporating
the ERM, Impact Universe, SASB sectoral analyses
and ENCORE dependency assessments.
The identified and evaluated risks were grouped
under the broader risk ‘Cost and availability of
sustainable packaging’, that was deemed financially
material. This risk includes risks related to regulatory
targets on collection, waste management and
specific packaging types, increased cost of
packaging materials due to climate change-related
regulation and Capex costs associated with
changing packaging mix. We have also identified a
few opportunities, such as the opportunity
associated with the launch of innovative packaging
solutions, which were not deemed financially
material. For the risks’ identification and assessment,
please refer to section ‘IRO-1_09’.
E3.IRO-1_02 & E2.IRO-1_02 & E4.IRO-1_05&
E5.IRO-1_02 & IRO-1_05
We conduct consultations with affected
stakeholders, including communities, and we
ensure that their feedback is taken into account.
Every year we carry out an Annual Stakeholder
Forum, the aim of which is to supplement the
process of material IROs identification and
assessment and to take insights regarding our
impacts on both people and nature. The theme
of this forum changes each year as well.
In 2023, we focused on ‘Water Regeneration –
partnering to strengthen communities’
resilience and drive economic growth’. Over
130 representatives, from customers, industry
associations and academia, to NGOs,
policymakers and peer companies – and 25
countries – came together to our Annual Forum.
The theme was covered in the context of climate
resilience, economic growth and the wellbeing of
people. Further information regarding our Annual
Stakeholder Forum is available in our website.
In 2024, we welcomed over 160 (167) stakeholders
to our Annual Stakeholder Forum, themed
‘Harnessing the Circular Economy for Packaging’.
Further insights regarding our 2024 Annual
Stakeholder Forum are available on page 38 of the
Strategic Report, paragraph ‘Stakeholder Forum
– hearing from our stakeholders on what matters
most’.
In addition to our Annual Stakeholder Forum,
we regularly organise supplier sustainability
events (especially with our main sugar and
sweeteners suppliers) and meetings where
we discuss different ESG aspects, including
biodiversity, deforestation and soil practices
that prevent pollution.
During the annual innovation day with suppliers,
we also discuss with packaging suppliers solutions
for alternative packaging, lightweighting and
recyclability to minimise packaging waste and
increase circularity and thus reduce further soil
and water pollution.
Furthermore, in the context of environmental
permitting process and updates regarding the
performance towards the licensing environmental
authorities, we consult various stakeholders such
as NGOs, environmental and subject-matter
(pollution, water and biodiversity-related) experts
and affected communities.
Lastly, we engaged with subject-matter experts
and impacted stakeholders through dedicated
interviews as an additional source for identifying
impacts and understanding how our business
activities, including those across the value chain,
affect the environment and people.
In particular, an independent organisation
conducted 26 interviews with various external
stakeholders and experts, representing a diverse
range of our stakeholders, including investors,
shareholders, customers, suppliers, industry
associations, NGOs, IGOs, community
participants, and international institutions such
as the UNGC and the International Organisation
of Employers. Interviews’ objectives were to hear
the perspective of affected stakeholders to
understand the level of impact materiality, to
support decisions on setting the materiality
thresholds and manage the total level of disclosure
required, as well as to understand the nature of the
impacts, to guide any disclosure, in line with the
needs of users of sustainability statements.
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
IRO-2 Disclosure Requirements in ESRS covered by CCHBC’s sustainability statement
IRO-2_01
Table 6: Datapoints from list of the Disclosure Requirements
Disclosure Requirement
Location in the sustainability
statement (page/paragraph)
BP-1 General basis for preparation of sustainability statements
p.41
BP-2 Disclosures in relation to specific circumstances
p.43
GOV-1 The role of the administrative, management and supervisory bodies
p.45
GOV-2 Information provided to and sustainability matters addressed
by CCHBC’s administrative, management and supervisory bodies
p.46
GOV-3 Integration of sustainability-related performance in incentive schemes
p.47
GOV-4 Statement on due diligence
p.48
GOV-5 Risk management and internal controls over sustainability reporting
p.49
SBM-1 Strategy, business model and value chain
p.50
SBM-2 Interests and views of stakeholders
p.52
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
p.55
IRO-1 Description of the process to identify and assess material impacts,
risks and opportunities
p.59
IRO-2 Disclosure Requirements in ESRS covered by CCHBC’s
sustainability statement
p.66
E1-1 Transition plan for climate change mitigation
p.83
E1.SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
p.84
E1-2 Policies related to climate change mitigation and adaptation
p.85
E1-3 Actions and resources in relation to climate change policies
p.87
E1-4 Targets related to climate change mitigation and adaptation
p.90
E1-5 Energy consumption and mix
p.92
E1-6 Gross scopes 1, 2, 3 and Total GHG emissions
p.93
E1-7 GHG removals and GHG mitigation projects financed through carbon credits
p.98
Disclosure Requirement
Location in the sustainability
statement (page/paragraph)
E1-8 Internal carbon pricing
p.99
E1-9 Anticipated financial effects from material physical and transition risks
and potential climate-related opportunities
-----
Ε2-1 Policies related to pollution
p.100
Ε2-2 Actions and resources related to pollution
p.102
Ε2-3 Targets related to pollution
p.103
Ε2-4 Pollution of air, water and soil
------
Ε2-5 Substances of concern and substances of very high concern
------
Ε2-6 Anticipated financial effects from material pollution-related risks and
opportunities
------
E3-1 Policies related to water and marine resources
p.104
E3-2 Actions and resources related to water and marine resources
p.106
E3-3 Targets related to water and marine resources
p.112
E3-4 Water consumption
p.114
E4.SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
p.115
E4-1 Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
p.115
E4-2 Policies related to biodiversity and ecosystems
p.116
E4-3 Actions and resources related to biodiversity and ecosystems
p.117
E4-4 Targets related to biodiversity and ecosystems
p.118
E4-5 Impact metrics related to biodiversity and ecosystems change
p.118
E4-6 Anticipated financial effects from material biodiversity and
ecosystem-related risks and opportunities
------
E5-1 Policies related to resource use and circular economy
p.119
E5-2 Actions and resources related to resource use and circular economy
p.120
E5-3 Targets related to resource use and circular economy
p.125
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Disclosure Requirement
Location in the sustainability
statement (page/paragraph)
E5-4 Resource inflows
p.127
E5-5 Resource outflows
p.128
E5-6 Anticipated financial effects from material resource use and circular
economy-related risks and opportunities
p.129
S1. SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
p.130
S1-1 Policies related to own workforce
p.131
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
p.135
S1-3 Processes to remediate negative impacts and channels for own
workers to raise concerns
p.136
S1-4 Taking action on material impacts on own workforce, and approaches
to mitigating material risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions
p.137
S1-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
p.141
S1-6 Characteristics of CCHBC’s employees
p.142
S1-7 Characteristics of non-employee workers in CCHBC’s own workforce
p.143
S1-8 Collective bargaining coverage and social dialogue
------
S1-9 Diversity metrics
p.144
S1-10 Adequate wages
p.144
S1-11 Social protection
p.144
S1-12 Persons with disabilities
------
S1-13 Training and skills development metrics
p.144
S1-14 Health and safety metrics
p.144
S1-15 Work-life balance metrics
------
S1-16 Compensation metrics (pay gap and total compensation)
p.145
S1-17 Incidents, complaints, and severe human rights impacts
p.145
Disclosure Requirement
Location in the sustainability
statement (page/paragraph)
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
p.146
S2-1 Policies related to value chain workers
p.148
S2-2 Processes for engaging with value chain workers about impacts
p.150
S2-3 Processes to remediate negative impacts and channels for value chain
workers to raise concerns
p.151
S2-4 Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those actions
p.151
S2-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
p.153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
p.155
S3-1 Policies related to affected communities
p.156
S3-2 Processes for engaging with affected communities about impacts
p.157
S3-3 Processes to remediate negative impacts and channels for affected
communities to raise concerns
p.158
S3-4 Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
p.158
S3-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
p.159
ESRS 2 SBM-3 Impacts, risks and opportunities and their interaction with
strategy and business model
p.161
S4-1 Policies related to consumers and end-users
p.162
S4-2 Processes for engaging with consumers and end-users about impacts
p.165
S4-3 Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns
p.166
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end-users, and effectiveness of those actions
p.167
S4-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
p.172
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
IRO-2_02
Table 7: Datapoints from other EU legislation
Disclosure Requirement
and related datapoint
SFDR ( 23 ) reference
Pillar 3 ( 24 ) reference
Benchmark Regulation
( 25 ) reference
EU
Climate Law
( 26 ) reference
Location in the
sustainability
statement
Materiality of
information
(Group level)
ESRS 2 GOV-1
Board’s gender diversity
paragraph 21 (d)
Indicator number 13 of Table
#1 of Annex 1
Commission Delegated
Regulation (EU) 2020/1816 ( 27 ),
Annex II
p.45
Material for Group
Level
ESRS 2 GOV-1
Percentage of board members who
are independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
p.45
Material for Group
Level
ESRS 2 GOV-4
Statement on due diligence
paragraph 30
Indicator number 10 Table
#3 of Annex 1
p.48
Material for Group
Level
ESRS 2 SBM-1
Involvement in activities related to
fossil fuel activities paragraph 40 (d) i
Indicators number 4 Table
#1 of Annex 1
Article 449a Regulation (EU) No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453 (28)
Table 1: Qualitative information
on Environmental risk and Table 2:
Qualitative information on
Social risk
Delegated Regulation (EU)
2020/1816, Annex II
–
Not Material
ESRS 2 SBM-1
Involvement in activities related to
chemical production paragraph 40 (d) ii
Indicator number 9 Table #2
of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
–
Not Material
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons paragraph 40
(d) iii
Indicator number 14 Table
#1 of Annex 1
Delegated Regulation (EU)
2020/1818 (29) , Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
–
Not Material
ESRS 2 SBM-1
Involvement in activities related to
cultivation and production of tobacco
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
–
Not Material
ESRS E1-1
Transition plan to reach climate
neutrality by 2050 paragraph 14
Regulation (EU) 2021/1119,
Article 2(1)
p.83
Material for Group
Level
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Disclosure Requirement
and related datapoint
SFDR ( 23 ) reference
Pillar 3 ( 24 ) reference
Benchmark Regulation
( 25 ) reference
EU
Climate Law
( 26 ) reference
Location in the
sustainability
statement
Materiality of
information
(Group level)
ESRS E1-1
Exclusion from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013;
Commission Implementing
Regulation (EU) 2022/2453
Template 1: Banking book – Climate
change transition risk: Credit quality
of exposures by sector, emissions
and residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to (g),
and Article 12.2
p.83
Material for Group
Level
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4 Table #2
of Annex 1
Article 449a
Regulation (EU) No 575/2013;
Commission Implementing
Regulation (EU) 2022/2453
Template 3: Banking book –
Climate change transition risk:
Alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
p.91
Material for Group
Level
ESRS E1-5
Energy consumption from fossil
sources disaggregated by sources
(only high climate impact sectors)
paragraph 38
Indicator number 5 Table #1
and Indicator n. 5 Table #2 of
Annex 1
p.92
Material for Group
Level
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5 Table #1
of Annex 1
p.92
Material for Group
Level
ESRS E1-5
Energy intensity associated with
activities in high climate impact
sectors paragraphs 40 to 43
Indicator number 6 Table #1
of Annex 1
p.92
Material for Group
Level
ESRS E1-6
Gross scope 1, 2, 3 and Total GHG
emissions paragraph 44
Indicators number 1 and 2
Table #1 of Annex 1
Article 449a; Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book – Climate change transition
risk: Credit quality of exposures
by sector, emissions and
residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and 8(1)
p.93
Material for Group
Level
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicators number 3 Table
#1 of Annex 1
Article 449a Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transition
risk: Alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
p.98
Material for Group
Level
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Disclosure Requirement
and related datapoint
SFDR ( 23 ) reference
Pillar 3 ( 24 ) reference
Benchmark Regulation
( 25 ) reference
EU
Climate Law
( 26 ) reference
Location in the
sustainability
statement
Materiality of
information
(Group level)
ESRS E1-7
GHG removals and carbon
credits paragraph 56
Regulation (EU) 2021/1119,
Article 2(1)
p.98
Material for Group
Level
ESRS E1-9
Exposure of the benchmark portfolio
to climate-related physical risks
paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816,
Annex II
–
Material for the
Group
(use of phased-in
option)
ESRS E1-9
Disaggregation of monetary amounts
by acute and chronic physical risk
paragraph 66 (a)
Article 449a Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47;
Template 5: Banking book –
Climate change physical risk:
Exposures subject to physical risk.
–
Material for the
Group
(use of phased-in
option)
ESRS E1-9
Location of significant assets at
material physical risk paragraph 66 (c)
–
Material for the
Group
(use of phased-in
option)
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by
energy-efficiency classes paragraph
67 (c)
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraph 34;
Template 2:Banking book –
Climate change transition risk:
Loans collateralised by immovable
property –Energy efficiency of
the collateral
–
Material for the
Group
(use of phased-in
option)
ESRS E1-9
Degree of exposure of the portfolio
to climate-related opportunities
paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
–
Material for the
Group
(use of phased-in
option)
ESRS E2-4
Amount of each pollutant listed in
Annex II of the E-PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air,
water and soil, paragraph 28
Indicator number 8 Table #1
of Annex 1 Indicator number
2 Table #2 of Annex 1
Indicator number 1 Table #2
of Annex 1 Indicator number
3 Table #2 of Annex 1
–
Not Material
ESRS E3-1
Water and marine resources
paragraph 9
Indicator number 7 Table #2
of Annex 1
p.104
Material for Group
Level
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Disclosure Requirement
and related datapoint
SFDR ( 23 ) reference
Pillar 3 ( 24 ) reference
Benchmark Regulation
( 25 ) reference
EU
Climate Law
( 26 ) reference
Location in the
sustainability
statement
Materiality of
information
(Group level)
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8 Table 2
of Annex 1
–
Not Material
ESRS E3-1
Sustainable oceans and seas
paragraph 14
Indicator number 12 Table
#2 of Annex 1
–
Not Material
ESRS E3-4
Total water recycled and reused
paragraph 28 (c)
Indicator number 6.2 Table
#2 of Annex 1
p.114
Material for Group
Level
ESRS E3-4
Total water consumption in m3 per net
revenue on own operations
paragraph 29
Indicator number 6.1 Table
#2 of Annex 1
p.114
Material for Group
Level
ESRS 2- SBM 3 – E4 paragraph 16 (a) i
Indicator number 7 Table #1
of Annex 1
–
Not Material
ESRS 2- SBM 3 – E4 paragraph 16 (b)
Indicator number 10 Table
#2 of Annex 1
–
Not Material
ESRS 2- SBM 3 – E4 paragraph 16 (c)
Indicator number 14 Table
#2 of Annex 1
–
Not Material
ESRS E4-2
Sustainable land / agriculture
practices or policies paragraph 24 (b)
Indicator number 11 Table
#2 of Annex 1
p.116
Material for Group
Level
ESRS E4-2
Sustainable oceans / seas practices
or policies paragraph 24 (c)
Indicator number 12 Table
#2 of Annex 1
–
Not Material
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator number 15 Table
#2 of Annex 1
p.116
Material for Group
Level
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13 Table
#2 of Annex 1
–
Not Material
ESRS E5-5
Hazardous waste and radioactive
waste paragraph 39
Indicator number 9 Table #1
of Annex 1
–
Not Material
ESRS 2- SBM3 – S1
Risk of incidents of forced
labour paragraph 14 (f)
Indicator number 13 Table
#3 of Annex I
–
Not Material
Coca-Cola HBC Integrated Annual Report 2024
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Disclosure Requirement
and related datapoint
SFDR ( 23 ) reference
Pillar 3 ( 24 ) reference
Benchmark Regulation
( 25 ) reference
EU
Climate Law
( 26 ) reference
Location in the
sustainability
statement
Materiality of
information
(Group level)
ESRS 2- SBM3 – S1
Risk of incidents of child
labour paragraph 14 (g)
Indicator number 12 Table
#3 of Annex I
–
Not Material
ESRS S1-1
Human rights policy
commitments paragraph 20
Indicator number 9 Table #3
and Indicator number 11
Table #1 of Annex I
p.134
Material for Group
Level
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labour Organization
Conventions 1 to 8, paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
p.134
Material for Group
Level
ESRS S1-1
processes and measures for
preventing trafficking in human
beings paragraph 22
Indicator number 11 Table
#3 of Annex I
–
Not Material
ESRS S1-1
workplace accident prevention policy
or management system paragraph 23
Indicator number 1 Table #3
of Annex I
p.131
Material for Group
Level
ESRS S1-3
grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5 Table #3
of Annex I
p.136
Material for Group
Level
ESRS S1-14
Number of fatalities and number
and rate of work-related accidents
paragraph 88 (b) and (c)
Indicator number 2 Table #3
of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
p.145
Material for Group
Level
ESRS S1-14
Number of days lost to injuries,
accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3 Table #3
of Annex I
p.145
Material for Group
Level
ESRS S1-16
Unadjusted gender pay gap
paragraph 97 (a)
Indicator number 12 Table
#1 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
p.145
Material for Group
Level
ESRS S1-16
Excessive CEO pay ratio
paragraph 97 (b)
Indicator number 8 Table #3
of Annex I
p.145
Material for Group
Level
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Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
Disclosure Requirement
and related datapoint
SFDR ( 23 ) reference
Pillar 3 ( 24 ) reference
Benchmark Regulation
( 25 ) reference
EU
Climate Law
( 26 ) reference
Location in the
sustainability
statement
Materiality of
information
(Group level)
ESRS S1-17
Incidents of discrimination
paragraph 103 (a)
Indicator number 7 Table #3
of Annex I
p.145
Material for Group
Level
ESRS S1-17 Non-respect of UNGPs
on Business and Human Rights and
OECD Guidelines paragraph 104 (a)
Indicator number 10 Table
#1 and Indicator n. 14 Table
#3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818
Art 12 (1)
p.145
Material for Group
Level
ESRS 2- SBM3 – S2
Significant risk of child labour or
forced labour in the value chain
paragraph 11 (b)
Indicators number 12 and n.
13 Table #3 of Annex I
–
Not Material
ESRS S2-1
Human rights policy
commitments paragraph 17
Indicator number 9 Table #3
and Indicator n. 11 Table #1
of Annex 1
p.149
Material for Group
Level
ESRS S2-1
Policies related to value
chain workers paragraph 18
Indicator number 11 and n. 4
Table #3 of Annex 1
p.148
Material for Group
Level
ESRS S2-1
Non-respect of UNGPs on Business
and Human Rights principles and
OECD guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
p.149
Material for Group
Level
ESRS S2-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
p.149
Material for Group
Level
ESRS S2-4
Human rights issues and incidents
connected to its upstream and
downstream value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
p.149
Material for Group
Level
ESRS S3-1
Human rights policy
commitments paragraph 16
Indicator number 9 Table
#3 of Annex 1 and Indicator
number 11 Table #1 of
Annex 1
p.157
Material for Group
Level
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Sustainability Statement continued
Disclosure Requirement
and related datapoint
SFDR ( 23 ) reference
Pillar 3 ( 24 ) reference
Benchmark Regulation
( 25 ) reference
EU
Climate Law
( 26 ) reference
Location in the
sustainability
statement
Materiality of
information
(Group level)
ESRS S3-1
non-respect of UNGPs on Business
and Human Rights, ILO principles or
OECD guidelines paragraph 17
Indicator number
10 Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
p.157
Material for
Group Level
ESRS S3-4
Human rights issues and
incidents paragraph 36
Indicator number 14
Table #3 of Annex 1
p.157
Material for
Group Level
ESRS S4-1 Policies related to
consumers and end-users
paragraph 16
Indicator number 9
Table #3 and Indicator
number 11 Table #1 of
Annex 1
p.162
Not Material*
(*disclosed due
to stakeholders’
interests)
ESRS S4-1
Non-respect of UNGPs on Business
and Human Rights and OECD
guidelines paragraph 17
Indicator number
10 Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
p.165
Not Material*
(*disclosed due
to stakeholders’
interests)
ESRS S4-4
Human rights issues and
incidents paragraph 35
Indicator number
14 Table #3 of Annex 1
p.165
Not Material*
(*disclosed due
to stakeholders’
interests)
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number
15 Table #3 of Annex 1
–
Not Material
ESRS G1-1
Protection of whistle-blowers
paragraph 10 (d)
Indicator number 6
Table #3 of Annex 1
–
Not Material
ESRS G1-4
Fines for violation of anti-corruption
and anti-bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
–
Not Material
ESRS G1-4
Standards of anti- corruption and
anti- bribery paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
–
Not Material
IRO-2_13
The material information to be disclosed regarding impacts, risks and opportunities is determined based on specific and/or generic criteria established during the double materiality assessment process across
all ESRS topics. Consequently, each general and topical ESRS provides further elaboration on the utilised materiality assessment criteria.
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As part of the EU’s plan to direct investments towards a more sustainable economy aligned with the European Green Deal, the European Commission defined
a classification system of sustainable activities under the Taxonomy Regulation in 2020. The EU Taxonomy Regulation establishes a common definition of
environmentally sustainable economic activities for investors, corporates, policymakers and other stakeholders.
The Climate Delegated Act1 introduced two environmental objectives – climate change mitigation and climate change adaptation – which have applied since 2022. In June 2023,
the Environmental Delegated Act2 brought into effect the remaining four objectives: sustainable use and protection of water and marine resources; transition to a circular economy; pollution
prevention and control; and protection and restoration of biodiversity and ecosystems.
We believe the EU Taxonomy is a valuable tool for guiding our sustainability strategy, including decarbonisation, the circular economy and sustainable product development. However, it is important to recognise
two key factors:
1. According to the EU Taxonomy Delegated Acts, our main economic activity of ‘Food and beverage manufacturing’ is not considered eligible.
2. EU Taxonomy is still evolving and is open to interpretation, potentially leading to adjustments in the future.
Taxonomy eligibility and alignment assessment
An economic activity is considered Taxonomy-eligible if it is described in the relevant Delegated Acts for one of the six environmental objectives, irrespective of whether it meets the technical screening criteria
(TSC).
For an eligible economic activity to be considered aligned with the EU Taxonomy, it must:
a) substantially contribute to at least one environmental objective;
b) meet the TSC defined for each activity;
c) do no significant harm (DNSH) to any of the remaining objectives; and
d) comply with minimum social safeguards.
Substantial contribution
Economic activity makes
substantial contribution to at
least one of the environmental
objectives
Economic activity complies with
the applicable TSC
Economic activity does not
cause significant harm to the
other environmental objectives
Company establishes minimum
safeguarding procedures for
human rights, bribery and
corruption, taxation and
fair competition
Do no significant harm
(DNSH)
Technical screening
criteria (TSC)
Minimum safeguards
Economic
activity is
taxonomy-
aligned
+
+
=
+
1. Commission Delegated Regulation (EU) 2021/2139, Commission Delegated Regulation (EU) 2023/2485
2. Commission Delegated Regulation (EU) 2023/2486
Sustainability Statement continued
EU Taxonomy
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Taxonomy Eligibility Assessment
Since our core economic activity of ‘Food and beverage manufacturing’ does not qualify, we instead focus on investments and operating expenses linked to eligible activities either directly under our control,
such as water treatment initiatives at our facilities, or through the procurement of Taxonomy-eligible assets or services from business partners. Such an example is our investment in our vehicle fleet (see below,
section ‘Transportation-related activities’).Following an assessment of our economic activities across all territories, we have identified the following activities that meet the EU Taxonomy eligibility criteria. The
table below groups these activities according to our business areas, including recycling, energy, transportation, real-estate and water.
Economic activity
Code
Environmental objective
Relevance to Coca-Cola HBC
Recycling-related activities
Manufacture of plastic
packaging goods
1.1
Transition to a circular
economy (CE)
Our Gaglianico plant in Italy produces 100% rPET preforms
Energy-related activities
Production of heat/
cool using waste heat
4.25
Climate change
mitigation (CCM)
Heat sourced from existing processes within our
plant in Serbia, reducing reliance on natural gas
Transportation-related activities
Transport by motorbikes, passenger
cars and light commercial vehicles
6.5
Climate change
mitigation (CCM)
Use of passenger cars, including conventional, hybrid and electric
vehicles, for management and business development teams
Installation, maintenance and repair
of charging stations for electric vehicles
in buildings
7.4
Climate change
mitigation (CCM)
Charging stations to support hybrid plug-in and electric cars
Real estate-related activities
Acquisition and ownership of buildings
7.7
Climate change
mitigation (CCM)
Relevant to non-production buildings (e.g. offices)
leased for Coca-Cola HBC use
Water-related activities
Construction, extension and operation
of water collection, treatment and
supply systems
5.1
Climate change
mitigation (CCM)
Capacity expansion projects related to water supply and treatment, improving
water-use ratio
Renewal of water collection,
treatment and supply systems
5.2
Climate change
mitigation (CCM)
Upgrade projects related to water supply and treatment
Urban waste water treatment
2.2
Sustainable use and protection
of water and marine resources (WTR)
Projects related to wastewater treatment
Sustainability Statement continued
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Taxonomy non-eligible activities
We regularly monitor relevant updates in the EU
Taxonomy regulation across all areas of interest
for the Group. As part of our eligibility assessment
this year, we reviewed several investments with
sustainability benefits that are currently not
considered eligible. For example, our investment
in energy-efficient coolers, which play a crucial
role in reducing our scope 3 emissions. By the end
of 2024, 60% of our coolers in markets outside
Egypt were energy efficient, versus 55% in 2023.
We continue to monitor such investments, to
be better prepared to assess alignment should
relevant activities become eligible in the future.
Taxonomy alignment assessment –
Substantial contribution
To ensure an accurate interpretation of the
EU Taxonomy regulation and its TSC, we have
formed working groups of internal and external
industry and environmental experts and have
adopted a prudent approach for assessing
Taxonomy alignment.
Recycling-related activities
According to EU Taxonomy, the Gaglianico plant
fits the criteria of eligibility under the CE1.1
economic activity, significantly contributing to the
‘transition to a circular economy’ environmental
objective. To enable the transition of our Italian
business to 100% rPET1, we have converted our
Gaglianico plant into an innovative hub, which can
transform up to 30,000 tonnes of post-consumer
PET per year into new 100% recycled PET
preforms, covering our beverage bottling needs
in the country. In addition, the plant’s use of 100%
renewable electricity reduces CO2 emissions per
preform by up to 70%, compared to virgin plastic.
Using circular feedstock as its primary input and
surpassing the minimum required percentage
of recycled post-consumer material, the plant
meets this specific requirement and fully satisfies
the remaining TSC.
Energy-related activities
At our Belgrade facility in Serbia and in line
with economic activity CCM4.25 we have installed
a heat pump that recovers waste heat from existing
processes and repurposes it in subsequent
production processes, fully meeting the TSC.
By reducing our reliance on natural gas, this initiative
lowers our direct scope 1 emissions and supports
our goal of achieving net zero emissions by 2040.
Transportation-related activities
Our continuous investment in our fleet is considered
eligible under the economic activity CCM6.5. This
includes investments in both conventional and
alternative fuel vehicles used by management
and business development teams. In 2024, we
have reduced our own fleet’s carbon footprint by
42%, a reduction of about 42,465 tonnes of CO2
compared to our 2017 baseline2.
As we procure our vehicles from a select
group of leasing companies, our ability to claim
alignment with the EU Taxonomy depends on their
compliance with its criteria. Original Equipment
Manufacturers (OEMs) provide most of the
required information, leading to a significant
part of our fleet meeting the TSC. However, due
to challenges with the DNSH criteria, as described
in the ‘Pollution prevention and control’ section
below, we will claim zero alignment to CCM6.5 in
2024. We will review alignment again in 2025, as
regulatory developments and suppliers’
progress may allow for a reassessment
of compliance with Taxonomy criteria.
To support the expansion of our electric and hybrid
fleet, we are investing in charging infrastructure in
line with economic activity CCM7.4. By engaging
qualified contractors, we are installing charging
points at our offices and facilities, ensuring
convenient access and encouraging further
adoption of low-emission vehicles.
Real estate-related activities
Eligible buildings associated with economic
activity CCM7.7 include non-production-related
properties, such as office premises or standalone
warehouses, which we lease for administrative and
support functions. Due to limited availability of
data per property and challenges related to DNSH
criteria, we will not claim alignment in 2024.
Water-related activities
Climate change affects both water availability and
quality. We are committed to protecting this valuable
resource, particularly in areas facing scarcity or
heightened risk. Our Mission 2025 sets specific
targets for water, including reducing water used per
litre of beverage by 20% compared with our 2017
baseline, in plants located in water risk areas. We also
recycle wastewater from our manufacturing sites,
returning it safely to the environment.
With our growing presence in Egypt, we continue to
improve our water management and wastewater
treatment efforts in the country. At our Alexandria
plant, we are replacing and expanding the water
treatment infrastructure in line with activity
CCM5.1, meeting the relevant TSC. At our Sadat
plant, we are introducing a new wastewater
treatment facility under activity WTR2.2. Due to
the complexity of data collection relevant to this
project, we cannot conclude with the Taxonomy
assessment. For more details on initiatives
concerning Egypt, including the loan awarded
by the European Bank for Reconstruction and
Development and the Global Environment Facility
grant, see ‘E3 Water and Marine Resources’
section of the Sustainability Statement.
In addition, we are undertaking water loss
prevention projects in countries such as Italy and
Nigeria, linked to activity CCM5.2. The TSC require
closing the gap between current leakage levels
and the prior three-year average by at least 20%.
These projects are designed to meet this
requirement, further strengthening our approach
to sustainable water management.
Taxonomy alignment assessment –
Do No Significant Harm
For all economic activities that demonstrate
substantial contribution to at least one EU
Taxonomy environmental objective, we have
conducted an assessment against the DNSH
criteria. Where we have direct oversight – such
as in our own facilities – we have carried out a
detailed evaluation based on available data from
local operations. If the activity falls outside our
direct control, as is the case for our vehicle leasing
under activity CCM6.5, we rely on suppliers to
provide the necessary DNSH-related information.
Climate change mitigation
For activity CE1.1, the process relies entirely
on mechanical recycling, without the use
of chemically recycled or sustainable
bio-waste feedstock.
Climate change adaptation
For economic activities CE1.1, CCM4.25, CCM5.1,
CCM5.2 and CCM7.4, the EU Taxonomy requires a
robust climate risk and vulnerability assessment.
In accordance with the DNSH criteria, we
conducted such analyses at our relevant sites,
assessing potential physical climate-related risk
factors based on material climate risks as defined
in Appendix A3 of the Regulation. We have
considered Intergovernmental Panel on Climate
Change scenarios and multiple time horizons.
Where we identified exposure to physical risks in
certain asset locations, we performed a second-
level assessment to review asset readiness and
local regulations and then analysed potential
adaptation measures as needed.
1. Excluding Water
2. Excluding Egypt
3. Delegated Act (EU) 2021/2178.
Sustainability Statement continued
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Sustainable use and protection of water
and marine resources
For activity CE1.1, which involves producing
preforms, the dry production process does not
materially impact water resources and the plant
operates under a valid environmental permit. For
activities CCM5.1 and CCM5.2, we review source
vulnerability assessments that inform our water
management protection plans, which are
periodically updated.
Transition to a circular economy
For activity CCM4.25, the EU Taxonomy requires
using equipment and components that are
durable, recyclable and easy to dismantle and
refurbish, where feasible. It is confirmed by
our supplier that the equipment used meet
these criteria.
Pollution prevention and control
For pollution prevention and control, the
Taxonomy Regulation emphasises avoiding the
manufacture, placement in the market or use of
restricted and reportable substances as defined
by European legislation on chemicals. In the case
of activity CE1.1, where we produce preforms
for beverage bottles, we follow all applicable
regulations and no harmful substances are used.
For activity CCM4.25, it has been confirmed by
our supplier that the heat pump meets Ecodesign
and Energy Labelling requirements1, aligns with
the top energy class standards2 and represents
the best available technology.
For activity CCM6.5, certain DNSH requirements
remain an industry-wide challenge, such as the
one requiring vehicle tyres to comply with strict
noise and rolling resistance standards. Given the
current limitations in verifying full alignment
across all required criteria, we are following a
prudent approach and will not claim alignment for
activity CCM6.5 in 2024. Despite this, we remain
committed to fleet electrification as part of our
long-term transition strategy.
Protection and restoration of biodiversity
and ecosystems
For activity CE1.1, a biodiversity impact screening
was conducted when granting the environmental
permit for the Gaglianico plant, in line with local
legislation. For activity CCM4.25, environmental
impact assessments are mandatory for facilities
with a capacity of ≥ 50MW. However given our
0.8MW heat pump falls below this threshold,
no studies are required as confirmed by the
relevant environmental authority. In addition,
environmental impact assessments are
available for the key sites relevant to activities
CCM5.1 and CCM5.2.
Taxonomy alignment assessment –
Minimum safeguards
For an economic activity to be considered aligned
with the Taxonomy, Coca-Cola HBC must comply
with the minimum social safeguards defined in
Article 18 of the Regulation3.
Unlike the TSC and DNSH criteria, which apply at
the activity level, compliance with the minimum
safeguards is assessed4 at Group level. The EU
Taxonomy identifies four key pillars of these
safeguards – human and labour rights, anti-bribery
and anti-corruption, fair competition and taxation.
We have reviewed each pillar and have concluded
that we apply the necessary procedures and
policies to meet the EU Taxonomy standards.
Human and labour rights
We are committed to upholding internationally
recognised human rights and labour standards as
outlined in the United Nations Universal
Declaration of Human Rights, the International
Labour Organization’s fundamental conventions,
the United Nations Global Compact and the
United Nations Guiding Principles on Business and
Human Rights and OECD Guidelines. This
commitment is embedded in our Human Rights
Policy and enforced through our Code of Business
Conduct (‘Code’) and Supplier Guiding Principles.
All our employees, managers and Directors, as
well as business partners such as suppliers,
distributors and contractors, are expected to
follow these principles. To prevent potential
issues, we identify and assess adverse impacts
and conduct independent third-party audits of
both our plants and key suppliers of ingredients
and packaging materials. If breaches occur,
employees and third parties can report them
through the Ethics and Compliance helpline –
our whistleblower ‘SpeakUp!’ hotline – that allows
anonymous submissions. We also provide
regular mandatory training on the Code to
ensure ongoing compliance and understanding.
As of 2024, Coca-Cola HBC has not been found
liable for any human rights or labour violations,
nor has it been involved in related litigation.
Anti-bribery and anti-corruption
We maintain a zero-tolerance approach to
bribery and corruption. As part of our Group
risk assessment, we regularly review the risk
of inadvertent non-compliance with anti-bribery
and anti-corruption laws to maintain the
highest standards of ethical business conduct.
Our Anti-bribery Policy applies to all employees,
subsidiaries and joint ventures under our control
worldwide. For joint ventures where we do not
have control, we actively encourage our partners
to adopt similar standards. The Policy also
extends to third parties acting on our behalf, such
as suppliers, distributors, agents, consultants and
contractors, and includes any subcontractors
they engage. These expectations are reinforced
through our Supplier Guiding Principles, which
include a specific section on Anti-bribery
and relevant procedures and align with our
commitment to ethical and transparent business
practices. Our Suppliers Guiding Principles are
regularly communicated to all our suppliers as
part of their selection process, as well as during
physical audits where applicable. We have also
established an anti-bribery due diligence process
on third parties representing us with government
authorities. To support compliance, we conduct
mandatory training for all employees on our Code
and our Anti-bribery Policy every three years.
In addition, for employees in higher-risk roles,
including senior management, the legal
department provides targeted annual training
to address specific regional and functional risks.
We have established grievance mechanisms,
including an independently operated
whistleblower ‘SpeakUp!’ line, available in all
Coca-Cola HBC countries in local languages.
1. Directive 2009/125/EC
2. Regulation (EU) 2017/1369
3. Regulation EU (ΕΕ) 2020/852
4. Assessment based on the ‘Final Report on Minimum Safeguards’ published by the Platform on Sustainable Finance (PSF) in October 2022, in the absence of further guidance from the European Commission
Sustainability Statement continued
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In 2024, we identified four confirmed cases
of corruption involving employees. All were
thoroughly investigated in accordance with
internal guidelines, resulting in appropriate
actions, including the dismissal of four individuals
– one of whom had already left the company
before the violation was discovered. Of the
four incidents, three resulted in employee
dismissal or disciplinary action, while one
involved a supplier, leading to the non-renewal
of their business contract. No public legal
cases were brought against Coca-Cola HBC
during the reporting period.
Fair competition
We are committed to promoting awareness
and ensuring full compliance with applicable
competition laws and regulations across all our
operations. Mandatory annual trainings on
competition law for employees, including senior
management, are implemented across all
countries. In 2024, there were no decisions with
findings of anti-competitive behaviour on the
part of our company.
Taxation
We are committed to complying with both the
spirit and letter of all applicable tax laws, rules and
regulations in every jurisdiction where we operate.
Our Tax Policy outlines governance procedures
and risk management best practices to ensure
robust tax compliance and reporting across the
Group. We publish a Tax Transparency Report that
reflects our commitment to openness and
accountability. Additionally, we closely monitor
developments in the fast-evolving tax reporting
landscape to prepare for upcoming regulatory
changes. In this regard, we collaborate with
trusted tax advisers and statutory auditors to
ensure our approach remains compliant and
aligned with best practices.
Explanation of key performance indicators
In accordance with Annex I to the Delegated Act
under Article 8 of the EU Taxonomy Regulation,
the following KPIs are used to determine the
proportion of eligible and aligned activities. By
relying on our detailed financial statements,
clearly distinguishing activity definitions and
allocating appropriately expenses, we ensure that
double counting is avoided.
Turnover
Turnover corresponds to the net sales figure
presented in the consolidated income statement
under IFRS 15, as detailed in Note 7 to the
consolidated financial statements. No eligible or
aligned turnover is recognised, as the ‘Food and
beverage manufacturing’ economic activity is not
in scope of the EU Taxonomy Regulation.
Capital expenditure (Capex)
Taxonomy-relevant Capex is determined as
follows:
• Capex denominator: This includes the total
additions of property, plant and equipment, and
intangible assets as well as the addition of right-
of-use assets for leases recognised under IFRS
16. These relate to Notes 13, 14 and 16 of the
consolidated financial statements. In 2024, the
Capex additions amounted to €795.2 million.
• Capex numerator: For eligibility, capital
expenditure has been allocated to assets
associated with the Taxonomy-eligible activities
listed above. For alignment, the eligible assets
have been thoroughly assessed against the
respective TSC and DNSH criteria. As a result,
we identified €5.3 million in EU Taxonomy-
aligned investments linked to activities CE1.1,
CCM4.25, CCM5.1, CCM5.2 and CCM7.4.
Operating expenditure (Opex)
• Opex denominator: This refers to direct
non-capitalised costs related to research and
development, building renovation measures,
short-term leases, maintenance and repair
and other direct expenses necessary for
the continued and effective functioning of
property, plant and equipment. The cost of
goods sold is excluded from the definition,
meaning the installation of solar panels through
Power Purchase Agreements and the cost of
sustainable packaging materials, such as rPET,
are considered out of scope. For Coca-Cola
HBC, we considered expenditures related to
repair & maintenance, day-to-day servicing of
assets and short-term leases.
• Opex numerator: This captures Opex
associated with activities deemed eligible and
aligned. In 2024, while activities CE1.1, CCM6.5
and CCM7.7 were all identified as having eligible
Opex, only activity CE1.1 contributed to the
€1.0 million of aligned Opex.
Our operations do not include activities related
to natural gas or nuclear energy, as per the
following table:
Nuclear energy related activities
1. CCHBC carries out, funds or has exposures
to research, development, demonstration
and deployment of innovative electricity
generation facilities that produce energy from
nuclear processes with minimal waste from
the fuel cycle.
No
2. CCHBC carries out, funds or has exposures
to construction and safe operation of new
nuclear installations to produce electricity or
process heat, including for the purposes of
district heating or industrial processes such
as hydrogen production, as well as their safety
upgrades, using best available technologies.
No
3. CCHBC carries out, funds or has exposures to
safe operation of existing nuclear installations
that produce electricity or process heat,
including for the purposes of district heating
or industrial processes such as hydrogen
production from nuclear energy, as well as
their safety upgrades.
No
Fossil gas related activities
4. CCHBC carries out, funds or has exposures
to construction or operation of electricity
generation facilities that produce electricity
using fossil gaseous fuels.
No
5. CCHBC carries out, funds or has exposures to
construction, refurbishment, and operation
of combined heat/cool and power generation
facilities using fossil gaseous fuels.
No
6. CCHBC carries out, funds or has exposures to
construction, refurbishment and operation of
heat generation facilities that produce heat/
cool using fossil gaseous fuels1.
No
1. With most CHP facilities operated by third parties, the most
relevant expenditures fall under Opex, specifically utilities, which
represent insignificant amounts. Moreover, utilities are not
recognized as part of the EU Taxonomy denominator.
Sustainability Statement continued
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Tables of EU Taxonomy KPIs
Turnover
Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic Activities
Code1
Absolute Revenue
Proportion of
Revenue
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular
Economy
Biodiversity and
ecosystems
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Taxonomy
aligned (A.1.) or
eligible (A.2)
proportion of
Revenue (2023)
Enabling3
activities
category
Transitional4
activities
category
€ million
%
Y, N, EL, N/EL2
Y, N, EL, N/EL
Y, N, EL, N/EL
Y, N, EL, N/EL
Y, N, EL, N/EL
Y, N, EL, N/EL
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Turnover from environmentally sustainable activities (Taxonomy-aligned)
Turnover from environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0.0
0.00%
Of which enabling (E)
0.0
0.00%
Of which transitional (T)
0.0
0.00%
A.2 Taxonomy-Eligible Turnover (not Taxonomy-aligned)
Turnover from Taxonomy-
eligible but not
environmentally sustainable
activities (activities that are
not Taxonomy-aligned) (A.2)
0.0
0.00%
A. Turnover from Taxonomy-eligible
activities (A.1+A.2)
0.0
0.00%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover from activities that
are not Taxonomy-eligible
10,754.4
100.00%
Total (A+B)
10,754.4
100.00%
1. The Code abbreviations of the relevant environmental objective to which the economic activity is eligible to make a substantial contribution: CCM = climate change mitigation; CCA = climate change adaptation; WTR = water and marine resources; PPC = pollution, prevention and control;
CE = circular economy; BIO = biodiversity and ecosystems.
2. Meaning of abbreviations: Y = Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N = No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL = Eligible, Taxonomy-eligible activity for the relevant
objective; N/EL = Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective; n/a = Not applicable, the criterion does not apply when assessing the DNSH of the specific activity.
3. Enabling Activities: An economic activity qualifies if it directly supports other activities in achieving a substantial contribution to one or more environmental objectives. To be classified as enabling, the activity must not result in a lock-in of assets that undermine long-term environmental
goals, considering the economic lifetime of those assets and have a substantial positive environmental impact based on life-cycle considerations.
4. Transitional activities: These are activities for which no technologically and economically feasible low-carbon alternatives currently exist but that support the transition to a climate-neutral economy. They must align with a pathway that limits the global temperature increase to 1.5 degrees
Celsius above pre-industrial levels.
Sustainability Statement continued
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Capex
Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic Activities
Code1
Absolute Capex
Proportion of
Capex
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular
Economy
Biodiversity and
ecosystems
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Taxonomy
aligned (A.1.)
or eligible (A.2)
proportion of
Capex (2023)
Enabling3
activities
category
Transitional4
activities
category
€ million
%
Y, N, EL,
N/EL2
Y, N, EL,
N/EL
Y, N, EL,
N/EL
Y, N, EL,
N/EL
Y, N, EL, N/EL
Y, N, EL,
N/EL
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Capex from environmentally sustainable activities (Taxonomy-aligned)
Manufacture of plastic
packaging goods
CE 1.1
0.5
0.06%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
n/a
Y
Y
Production of heat/cool using
waste heat
CCM 4.25
0.8
0.10%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
n/a
Y
Y
Y
Y
Construction, extension and
operation of water collection,
treatment and supply systems
CCM 5.1
1.0
0.12%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
n/a
n/a
Y
Y
Renewal of water collection,
treatment and supply systems
CCM 5.2
2.7
0.34%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
n/a
n/a
Y
Y
Installation, maintenance and repair
of charging stations for electric
vehicles in buildings (and parking
spaces attached to buildings)
CCM 7.4
0.4
0.05%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
n/a
n/a
n/a
n/a
Y
E
Capex from environmentally sustainable
activities (Taxonomy-aligned) (A.1)
5.3
0.67%
0.61%
0.00%
0.00%
0.00%
0.06%
0.00%
Y
Y
Y
Y
Y
Y
Y
Of which enabling (E)
0.4
0.05%
0.05%
0.00%
0.00%
0.00%
0.00%
0.00%
E
Of which transitional (T)
0.0
0.00%
0.00%
T
A.2 Taxonomy-Eligible CapEx (not Taxonomy-aligned)
Urban waste water treatment
WTR 2.2
1.2
0.15%
N/EL
N/EL
EL
N/EL
N/EL
N/EL
Construction, extension and
operation of water collection,
treatment and supply systems
CCM 5.1
0.4
0.06%
EL
N
N/EL
N/EL
N/EL
N/EL
Renewal of water collection,
treatment and supply systems
CCM 5.2
1.7
0.21%
EL
N
N/EL
N/EL
N/EL
N/EL
Transport by motorbikes,
passenger cars and light
commercial vehicles
CCM 6.5
48.7
6.12%
EL
N
N/EL
N/EL
N/EL
N/EL
Installation, maintenance and
repair of charging stations for
electric vehicles in buildings
CCM 7.4
0.4
0.05%
EL
N
N/EL
N/EL
N/EL
N/EL
Acquisition and ownership of
buildings
CCM 7.7
33.9
4.26%
EL
N
N/EL
N/EL
N/EL
N/EL
Capex from Taxonomy-eligible but not
environmentally sustainable activities
(activities that are not Taxonomy-aligned) (A.2)
86.3
10.85%
10.70%
0.00%
0.15%
0.00%
0.00%
0.00%
A. Capex from Taxonomy-eligible
activities (A.1+A.2)
91.6
11.52%
11.30%
0.00%
0.15%
0.00%
0.06%
0.00%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex from activities that are not
Taxonomy-eligible
703.6
88.48%
Total (A+B)
795.2
100.00%
1. The Code abbreviations of the relevant environmental objective to which the economic activity is eligible to make a substantial contribution: CCM = climate change mitigation; CCA = climate change adaptation; WTR = water and marine resources; PPC = pollution, prevention and control;
CE = circular economy; BIO = biodiversity and ecosystems.
2. Meaning of abbreviations: Y = Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N = No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL = Eligible, Taxonomy-eligible activity for the relevant
objective; N/EL = Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective; n/a = Not applicable, the criterion does not apply when assessing the DNSH of the specific activity.
3. Enabling Activities: An economic activity qualifies if it directly supports other activities in achieving a substantial contribution to one or more environmental objectives. To be classified as enabling, the activity must not result in a lock-in of assets that undermine long-term environmental
goals, considering the economic lifetime of those assets and have a substantial positive environmental impact based on life-cycle considerations.
4. Transitional activities: These are activities for which no technologically and economically feasible low-carbon alternatives currently exist but that support the transition to a climate-neutral economy. They must align with a pathway that limits the global temperature increase to 1.5 degrees
Celsius above pre-industrial levels.
Sustainability Statement continued
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Opex
Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic Activities
Code1
Absolute Opex
Proportion of
Opex
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular
Economy
Biodiversity and
ecosystems
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Taxonomy
aligned (A.1.) or
eligible (A.2)
proportion of
Opex (2023)
Enabling3
activities
category
Transitional4
activities
category
€ million
%
Y, N, EL,
N/EL2
Y, N, EL,
N/EL
Y, N, EL,
N/EL
Y, N, EL,
N/EL
Y, N, EL, N/EL
Y, N, EL,
N/EL
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N/n/a
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Opex from environmentally
sustainable activities (Taxonomy-aligned)
Manufacture of plastic
packaging goods
CE 1.1
1.0
0.26%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
n/a
Y
Y
Opex from environmentally sustainable
activities (Taxonomy-aligned) (A.1)
1.0
0.26%
0.00%
0.00%
0.00%
0.00%
0.26%
0.00%
Y
Y
Y
Y
n/a
Y
Y
Of which enabling (E)
0.0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
E
Of which transitional (T)
0.0
0.00%
0.00%
T
A.2 Taxonomy-Eligible Opex (not Taxonomy-aligned)
Transport by motorbikes,
passenger cars and light
commercial vehicles
CCM 6.5
32.8
8.45%
EL
N
N/EL
N/EL
N/EL
N/EL
Acquisition and ownership of
buildings
CCM 7.7
31.0
7.99%
EL
N
N/EL
N/EL
N/EL
N/EL
Opex from Taxonomy-eligible but not
environmentally sustainable activities
(activities that are not Taxonomy-aligned)
(A.2)
63.8
16.45%
16.45%
0.00%
0.00%
0.00%
0.00%
0.00%
A. Opex from Taxonomy-eligible activities
(A.1+A.2)
64.8
16.71%
16.45%
0.00%
0.00%
0.00%
0.26%
0.00%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Opex from activities that are not
Taxonomy-eligible
323.0
83.29%
Total (A+B)
387.8
100.00%
1. The Code abbreviations of the relevant environmental objective to which the economic activity is eligible to make a substantial contribution: CCM = climate change mitigation; CCA = climate change adaptation; WTR = water and marine resources; PPC = pollution, prevention and control;
CE = circular economy; BIO = biodiversity and ecosystems.
2. Meaning of abbreviations: Y = Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N = No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL = Eligible, Taxonomy-eligible activity for the relevant
objective; N/EL = Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective; n/a = Not applicable, the criterion does not apply when assessing the DNSH of the specific activity.
3. Enabling Activities: An economic activity qualifies if it directly supports other activities in achieving a substantial contribution to one or more environmental objectives. To be classified as enabling, the activity must not result in a lock-in of assets that undermine long-term environmental
goals, considering the economic lifetime of those assets and have a substantial positive environmental impact based on life-cycle considerations.
4. Transitional activities: These are activities for which no technologically and economically feasible low-carbon alternatives currently exist but that support the transition to a climate-neutral economy. They must align with a pathway that limits the global temperature increase to 1.5 degrees
Celsius above pre-industrial levels.
Sustainability Statement continued
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Sustainability Statement continued
ESRS E1 – Climate
change
Strategy
E1-1 Transition plan for climate
change mitigation
E1-1_01,02,03,05,06,12,13,14,15,
E1.MDR-A_06,07,09,10,11,12 & E1-3_05,06,
E1-4_23
Our focus on clear targets and robust action plans
around climate change is evident in our climate
transition plan. We have committed to our
NetZeroby40 journey since 2021, and the healthy
liquidity position of the Group ensures proper
funding of relevant initiatives every year.
Our climate transition plan, first developed in
2021, covers the full value chain (scope 1, 2 and 3)
and it is as per the 1.5 degree scenario, approved
by the SBTi.
Developed by a cross-functional team of experts,
the plan was approved by the ELT (through
Sustainability SteerCo) and endorsed by the
Social Responsibility Committee of the BoD.
Coca-Cola HBC considers five main levers and
those are the main actions for each lever:
1. Manufacturing (includes scope 1 fuels used,
scope 1 losses of CO2 used for beverage
carbonation, scope 2 electricity/heat/steam/
hot water purchased)
• Continue implementing and accelerating
the energy-efficient projects in our plants
(deployment of energy saving projects, old
equipment modernization, and installation
of heat pumps & electrification).
• Improving the CO₂ yield in the plants.
• Accelerating usage of renewable and/
or cleaner energy to replace fossil fuel
in scope 1 or electricity/heat/steam/
hot water in scope 2.
2. Transportation (includes scope 1 fuels used
for own transport, both light and heavy,
and scope 3 fuels used for outsourced
logistics and transportation)
• Optimising the routes of light and heavy fleet,
increasing logistics efficiency and increasing
heavy trucks utilization.
• Shifting the existing fleet to innovative
technologies and renewable
or alternative fuels.
• Enhancing the strategic partnerships
with our third-party logistics providers
and joint investments (accelerate shifting
to alternative fuels, route to market evolution,
shifting of more volume to trains and applying
industry innovations).
3. Packaging (includes scope 3 from all primary,
secondary and tertiary packaging used for
our products)
• Implementing our Packaging Mix of the
Future strategy (increasing recycled PET,
moving from non-reusable one-way glass
bottles to reusable glass bottles and
providing more packageless solutions).
• Implementing decarbonisation of our
primary and secondary packaging materials
(aluminium cans, PET bottles, glass bottles,
plastic labels, closures, stretch films etc.).
4. Ingredients (includes scope 3 from all
ingredients used for manufacturing of our
beverages)
• Decarbonisation initiatives with our suppliers
(engagement of farmers through co-
development of farming pilots with suppliers,
using regenerative agricultural practices).
• Continue reformulation of our products and
moving to more lights and zero products in
our beverage portfolio.
5. Drink Equipment (includes scope 3 of electricity
used by our customers for the drink equipment
we provide, scope 1 for refrigerant losses from
cold drink equipment)
• Accelerate the process of providing energy
efficient drink equipment to our customers
and finding innovative solutions for further
energy efficiency of our drink equipment.
• Greening the electricity grid mainly in Europe
and with slower pace in Africa.
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Sustainability Statement continued
For more details on emissions reduction per lever,
please see Table 9: Mitigation actions per
decarbonisation lever.
Coca-Cola HBC is not excluded from the EU
Paris-aligned benchmarks. NetZeroby40 roadmap
is presented in the Strategic Report, section ‘Earn
our Licence to operate’ on page 25.
In 2024, we invested €200 million of capital
expenditure (Capex) on projects supporting the
implementation of our climate transition plan,
representing 29.4% of total Capex. We also
invested €30 million driven by the higher cost of
recycled PET compared to virgin PET, as we
pursue our strategic objective to reach 35% rPET
by 2025, positively influencing both the reduction
of our scope 3 emissions and the transition to a
circular economy.
Our accounting system does not separately
classify sustainability-related investments or
costs, as both are reported in accordance with the
general financial reporting principles. For Capex,
however, we apply an internal process to identify
expenditures fully aligned with the levers of the
transition plan. This allows us to track and
monitor investments that directly support our
commitment to emissions’ reduction but does
not necessarily consider larger investments that
have multiple objectives, even when sustainability
is one of them. The Capex and cost of packaging
materials mentioned above are reflected in
our financial statements, as part of the overall
amounts reported in the cash flow statement
and the income statement, reinforcing our
climate change mitigation actions.
In 2025, we plan to follow a similar approach,
investing 30% of total Capex on projects
supporting the implementation of our climate
transition plan. We also expect that the higher
spend for recycled PET compared to virgin PET
will increase further in 2025 to approximately
€60 million, as we accelerate our performance
against our Mission 2025 target but also due to
the EU requirement for a 25% minimum recycled
content on PET beverage bottles.
In the medium term, for the period 2026-2030,
Capex investments that support our transition
plan will gradually increase to reach 37% of Capex
in 2030. Main drivers are the acceleration of
investments to improve energy efficiency of our
manufacturing plants and using more renewable
fuel alternatives, the switch to coolers with even
better energy profile and the increase in the
contribution of returnable glass bottles to our
package portfolio. As far as investments in Opex/
Cogs are concerned, we expect that they will also
gradually increase, as we will use more packaging
materials with recycled content and purchase
more ingredients that are sustainably sourced.
For the period after 2030, we expect to continue
on the 2025-2030 trajectory of investments,
both Capex and Opex/Cogs to support the
faster reduction of emissions so that we can
meet our NetZeroby40 commitment.
Given the fast-paced nature of our business,
being a consumer goods company, the rapid
technological advancements, and the uncertainty
in the regulatory environment, an attempt to
assign investment amounts per decarbonisation
action could result in misleading information.
Hence, we maintain the approach we have
followed in the past few years and report the
percentage of total Capex that is related to
projects that support the implementation
of our transition plan.
Our sustainable finance approach underpins the
Group’s ability to align funding strategies with
sustainability commitments, while supporting
the UN Sustainable Development Goals and EU
Environmental Objectives. Financing mechanisms
include a diverse range of instruments, ensuring
flexibility in meeting both current and future
financial requirements for action plans.
The Group’s €500 million green bond, issued
in September 2022 under the Green Finance
Framework, was fully allocated to eligible projects
by September 2023, as detailed in our Green
Finance Report. Our sustainability-linked revolving
credit facility of €800 million remains available until
April 2026, although not specifically earmarked for
funding the transition plan.
These initiatives complement the Group’s
broader access to diversified financial resources.
Further details on financial instruments and
resource allocation are available in Note 25, p.306.
E1-1_07
By 2030, the only assets from scope 1 and 2
in manufacturing that could potentially lead
to significant locked-in GHG emissions are the
CHP plants outside Europe and boilers used in
manufacturing facilities, as they will still operate
with fossil fuels (natural gas mainly), and it will be
difficult to switch to alternative or renewable fuels.
We will run an innovation project in two of the
manufacturing sites to use biomass for the boilers
and based on the results we are planning to
implement across all plants by 2040. In logistics,
we will have around 2,000 own trucks (scope 1) by
2030 using fossil fuel. In light fleet, which is leased
and changed every four years, we don’t expect
significant locked-in emissions.
As per our NetZeroby40 commitment, by 2050
we will not have main assets with significant
locked-in emissions: CHP in operations will be
either decommissioned or replaced by renewable
fuel, and boilers’ fuel will be replaced by alternative
systems. By 2050, we don’t expect any of our own
trucks to run on fossil fuel.
Cumulatively, by 2030 those locked-in emissions
would be around 256,000 tonnes of CO2e or 6.9%
of our scope 1, 2, 3 emissions. Those locked-in
emissions are not likely to affect our NetZeroby40
commitment, as they will be effectively managed
and minimised before 2040 as shared above.
As we sell beverages, we don’t expect significant
locked-in emissions in scope 3 category ‘Use
of sold products’, neither by 2030 nor by 2040
or 2050.
ESRS 2 SBM-3 Material impacts, risks and
opportunities and their interaction with
strategy and business model
E1.SBM-3_01,05
Climate change – caused by greenhouse gas
(GHG) emissions, emitted from every business
and activity – is leading to global temperature
increase and extreme weather conditions around
the world. Global warming impacts environment
and society across our entire value chain: from
suppliers, to customers and consumers.
Managing our carbon footprint is our major
transition risk related to climate change in the mid
and long term, as emerged from the 2024 Double
Materiality Assessment. The time horizons
applied in the analysis and their business
scenarios alignment are:
• Short-term horizon: 2025
Annual business planning cycle which
includes consideration of short-term
risks and opportunities that affect
annual performance objectives.
• Medium-term horizon: 2030
Long-range planning that includes
consideration of risks and opportunities that
may affect medium-term objectives, financial
viability assurance and allocation of capital
for medium-term investments.
• Long-term horizon: >2030
Long-term strategic planning including capital
investments, mergers and acquisitions, impact
of climate change, including meeting our
NetZeroby40 commitments.
Further details on the DMA process can be found
in the ‘Materiality’ section of the IAR on pages
37 to 40 and on page 59 of this document.
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Sustainability Statement continued
E1.SBM-3_02
We have a thoroughly designed Business
Resilience programme that enables us to
proactively manage risks – and embrace
opportunities – so that we grow sustainably
and meet our short-, medium- and long-term
objectives. One of the most significant risks
to our resilience over the longer term is climate
change. By proactively preparing for and managing
climate risk through our business strategy and
capital investments, however, we can harness
significant opportunities.
E1.SBM-3_03,04
In our resilience analysis conducted in 2024,
we used a variety of climate scenarios in our
assessment of the potential impact of climate
change on our business, including: RCP1.9, in
order to be consistent with our Science Based
Targets initiative (SBTi) commitment and as
representation of a best-case scenario from
a climate action point of view; RCP4.5, as it
represents the stated policy position and provides
a midpoint scenario, and; RCP8.5, as the ‘worst-
case’ or ‘extreme’ scenario, particularly for
physical risks. This enabled us to consider
a broad range of drivers and their impact.
In considering the cost of carbon emissions,
the more ambitious scenarios assume a greater
amount of government use of regulation, taxes
and levies and hence the higher costs of carbon.
However, we also assumed that government
intervention would not be consistent across all our
markets given our diverse operating territories,
and therefore countries were grouped into
leaders, followers and laggards in evaluating
potential increases in taxes and levies.
As around 90% of our carbon emissions are scope
3, we are dependent on suppliers and customers
reducing their carbon emissions. In estimating the
reduction in overall carbon emissions and our
ability to meet our NetZeroby40 targets, we used
NGFS data to estimate industry decarbonisation
rates which are assumptions built into our internal
plans for meeting our NetZeroby40 target.
Included in our assessment of the impact
of climate change on our production and
distribution, we used external data used by the
insurance industry which we consider to be robust.
However, we note that climate-related data can
project general changes under different climate
scenarios, but cannot predict the timing and
severity of extreme events, which our facilities
are most at risk from. We used assumptions on
projected increases in insurance premiums from
statements made by the insurance industry on
the impact of climate change, however, we note
that the impact that those projections are based
on may not apply to us as they do not take into
account the actions we are taking to adapt to and
mitigate the impact of environmental changes.
We used a number of internal assumptions about
production volume increases to 2040 in order to
estimate carbon emissions and resource usage,
but we recognise that a considerable number of
variables, such as domestic growth rates in each
of our operating countries, changes in consumer
demand and preferences, weather, industry
actions and competition and government
regulations, may affect those estimates.
E1.SBM-3_06
As a result of our resilience analysis, we continued
to improve our assessment of the effects of
climate change, with a focus on clear targets
and robust action plans. This enables us to
deliver on our commitments, mitigate risks
and take advantage of the opportunities
inherent in change.
E1.SBM-3_07
We are keenly aware of the importance of
delivering on our plans and the potential to adjust
our strategy to respond to emerging needs and
priorities. We continue to decarbonise our value
chain, while updating our net zero transition plan
and developing long-term climate scenarios.
We are also working towards our bold
commitment to achieving a net-positive
impact on biodiversity by 2040 in critical areas
of our value chain, implementing the guidelines
of the Science Based Targets Network, and we
shifted our deforestation-free commitment
from 2030 to 2025. We continue to expand
our partnerships and seek new collaborations,
as our ambitious goals and commitments can
only be achieved through collective action.
With prudent financial risk management, the
Group maintains a healthy liquidity position
and access to various funding sources. As of
31 December 2024, the Group had €1.6 billion
available under €5.0 billion Euro medium term
note programme, €0.8 billion available under
€1.0 billion Euro-commercial paper programme,
undrawn revolving credit facility of €0.8 billion and
several bilateral bank loan facilities.
None of the Group’s debt facilities are subject to
financial covenants that could impact liquidity
or access to capital. For further details,
refer to Note 25, p.306.
Strong treasury governance ensures a consistent
supply of committed funding at both central and
operational levels, optimising liquidity and funding
risk management to secure the most efficient
financing solutions.
This diversified funding strategy supports both
operational and strategic needs, enabling the
Group to allocate resources effectively to the net
zero transition plan as necessary.
Impact, risk and opportunity management
E1-2 Policies related to climate change
mitigation and adaptation
E1.MDR-P_01, E1-2_01
Our NetZeroby40 commitment is fully aligned
with our philosophy to support the socio-
economic development of our communities and
to make a more positive environmental impact.
In accordance with the Climate Change Policy
and our overall Environmental Policy, we will:
• strive to reduce all our emissions across
the value chain as much as possible by:
• advancing the reduction of the energy
used in our operations;
• expanding our use of renewable energy
technologies;
• deploying more energy-efficient coolers
in the marketplace;
• accelerating our sustainable packaging
agenda and our green fleet;
• engaging with relevant stakeholders
to combat climate change;
• working with suppliers to reduce their
carbon footprint and to minimise their
climate impacts; and
• setting roadmaps for emissions reduction
for all our operations and the main steps in
the value chain.
• keep CO2 emission reduction targets as one of
the elements of our long-term management
incentive plans;
• work with other partners (industries, academia,
non-governmental organisations (NGOs),
governments, etc.) on climate change
mitigation and climate change adaptation;
• consider all climate risks and opportunities
and integrate them in our business strategy;
• investigate the opportunities for finding
solutions for our residual emissions, such
as biological and/or technological removals;
• monitor, report and audit our GHG emissions,
targets, results and activities, and publish
transparently our progress in our public files.
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Sustainability Statement continued
E1.MDR-P_01,02
More specifically, our climate change
commitments and our climate change policy
cover our entire Company, all scopes 1, 2 and 3,
and all three value chain segments (i.e., upstream,
own operations, downstream). We aim to reach
net zero emissions across the entire value chain
by 2040 as per the 1.5 degree scenario, and our
intermediate emission reduction target by 2030 is
approved by the SBTi. There is no greater threat to
our collective future than climate change, and we
believe that industry has a key role to play in
finding sustainable solutions to today’s climate
challenges. We were one of the first companies
to commit to and deliver science-based carbon
reduction targets (SBTs) back in 2016, immediately
after the UN COP21 in Paris and, after reaching
those first SBTs, we published our NetZeroby40
commitment across the entire value chain.
Moreover, in our Environmental Policy, we also
cover: production operations and business
facilities; products and services; distribution and
logistics; environmental due-diligence in each
step of the value chain, including mergers and
acquisitions, divestments and investments;
management of waste; suppliers, service
providers and contractors; and other key
business partners (including co-packers,
joint ventures, etc.).
The monitoring process for our policies’
objectives – including the assessment of
associated impacts, risks and opportunities –
is dynamic and rigorously conducted through
our Sustainability Committees and the
DMA procedure.
E1.MDR-P_02,05
Our engagement strategy also focuses on gaining
insights from the different types of relevant
stakeholders that influence our policies, which are
indicatively the following:
• We engage with different stakeholders,
such as NGOs, suppliers, peer companies,
regulators, investors, academia, communities,
etc., through our Group Annual Stakeholder
Forums and our annual materiality assessment,
as well as through ad hoc meetings.
• We participate actively to support the set-
up and implementation of new packaging
collection schemes at local business unit-
level by engaging with peer companies,
municipalities, regulators, customers, etc.
• We partner with specific NGOs for targeted
environmental and social projects.
• We have regular calls with investors and
financial institutions.
• We proactively monitor different environmental,
social and governance (ESG) raters/frameworks
in order to understand and adapt to the external
emerging trends and expectations.
• We are part of UNESDA, the Brussels-based
trade association representing the non-
alcoholic beverages sector.
• We engage with academia, suppliers and
start-ups for innovative solutions to tackle
the ESG challenges.
• We engage with our customers through different
value creation activities in sustainability.
• We engage with our employees through regular
meetings, surveys, ‘Tone of the Top’ messages,
awareness campaigns, townhall meetings, etc.
• Our local business units actively engage with
the local stakeholders.
E1.MDR-P_04
Through our Environmental Policy, we are
committed to implement environmental
management systems, such as ISO 14001.
Moreover, through our Climate Change Policy, we
are committed to be aligned with SBTi for our
targets.
E1.MDR-P_03,06
All policies are publicly available at our website
(Policies | Coca-Cola HBC) where affected
stakeholders can easily have access to them.
Moreover, the net zero transition plan is publicly
available on our website.
The CEO is overall responsible for the
implementation of our sustainability policies.
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Sustainability Statement continued
E1-3 Actions and resources in relation to climate change policies
E1.MDR-A_01,02,03
We have in place a number of existing and planned actions in order to deliver our climate change policies and achieve our targets and commitments, as presented in the following table.
Table 8: Key actions (existing and planned) in relation to climate change policies
Time horizon
Scope of Action
List of
actions
Current
Planned
Expected
outcome
Relation to policy objectives/ targets (where
relevant)
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Top 20 energy savers
programme
Yes
Continuous
Scope 1 carbon emissions
reduction and cost savings
In accordance with the Climate
Change Policy and our overall
Environmental Policy, we strive to
reduce all our emissions across
the value chain as much as possible
by advancing the reduction of the
energy used in our operations.
Reduction of energy consumption
by improving efficiency of main
energy consumers such as high-
pressure compressors, boilers,
bottle blowing processes and
introducing heat pumps
Own
operations
All markets
Employees,
Suppliers
Increase of renewable
energy consumption
through the installation
of solar PV
Yes
Continuous
Scope 1 & 2 (market-based)
emissions savings and climate
resilience
Expanding our use of renewable
energy technologies
Current installations of roof-top PVs
owned by Coca-Cola HBC and also
owned by third-party providers
Own
operations
Egypt, Nigeria,
Switzerland, Italy,
Austria, Czech
Republic, Greece,
Romania, Croatia
Employees,
Suppliers
CO2 Yield improvement
Yes
Continuous
Scope 1 carbon emissions
reduction
Advancing the reduction of the
energy used in our operations
CO2 yield improvement by replacing
sterile air and nitrogen
Own
operations
All markets
Employees,
Suppliers
Heat pumps and
electrification
of energy
Yes
Continuous
Scope 1 & 2 carbon emissions
reduction
Advancing the reduction of the
energy used in our operations;
Expanding our use of renewable
energy technologies
Energy recovery from existing
manufacturing processes and
thermal energy electrification
Own
operations
EU countries
Employees,
Suppliers
Alternative and low-carbon
fuels introduction
Continuous
Scope 1 carbon emissions
reduction
Advancing the reduction of the
energy used in our operations;
Expanding our use of renewable
energy technologies
Introduction of biomass, biogas and
other developing solutions
Own
operations
N. Ireland,
Austria, Italy,
Greece
Employees
Modernisation of
manufacturing equipment
Continuous
Scope 1 & 2 carbon emissions
reduction
Advancing the reduction of the
energy used in our operations;
Expanding the use of renewable
energy technologies
Replacement of depreciated own
production lines and installation of
new ones with high energy efficiency
Own
operations
Selective
markets as per
transition plan
Employees,
Suppliers
Green Fleet Programme
Yes
Continuous
Scope 1 carbon emissions
reduction
Accelerating our green fleet
Increase the number of electric and
hybrid fleet (own and leased fleet)
Own
operations
EU countries
Employees,
Suppliers
Low carbon alternative
fleet introduction of
transportation solutions
Yes
Continuous
Scope 3 carbon emissions
reduction
Working with suppliers to reduce
their carbon footprint and to
minimise their climate impacts;
Expanding our use of renewable
energy technologies.
Distribution fleet electrification in
Austria, Switzerland and low carbon
fuel (HVO) in Italy
Upstream
Austria,
Switzerland,
Italy
Third party
logistics
providers,
Customers
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Sustainability Statement continued
Time horizon
Scope of Action
List of
actions
Current
Planned
Expected
outcome
Relation to policy objectives/ targets (where
relevant)
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Increase the number of
energy-efficient coolers
in the marketplace
Yes
Continuous
Scope 3 carbon emissions
reduction
Deploying more energy-efficient
coolers at the marketplace; Engaging
with relevant stakeholders to
combat climate change
Continue purchasing energy
efficient new coolers from
our suppliers and replacing
old coolers with energy-efficient
ones
Downstream All markets
Customers,
Suppliers
For packaging initiatives
contributing to scope 3, please
refer to ESRS E5 on pages
121 to 124
Yes
Continuous
Scope 3 carbon emissions
reduction
Accelerating our packaging
and packaging waste agenda;
Engaging with relevant
stakeholders to combat
climate change
Using more recycled content and
reusable/refillable packaging
solutions, decarbonisation at
supplier level; all initiatives for
packaging collection that increase %
collected and recovered packaging
Downstream All markets
Customers,
Consumers,
Suppliers
Use of ISO standard for
commodities and supplier
specific LCA development for
key direct supplies of raw and
packaging materials
Yes
Continuous
Scope 3 carbon emissions
reduction
Working with suppliers to reduce
their carbon footprint and to
minimise their climate impacts
Using supplier-specific emission
factors,providing guiding suppliers
to work on decarbonisation plans
and renewable energy, providing
supplier Carbon emission
development programme (Supplier
Leadership on Climate – SLoC).
Upstream
Global
Suppliers
E1.MDR-A_04
As per UNESDA statement “Beverage sector acknowledges its responsibility in playing its part in the fight against climate change and we are committed to help the European Union become a climate neutral
continent by 2050 by driving decarbonisation throughout our value chain – from responsible sourcing of our ingredients to production and distribution of the final products. We know our competitiveness and
long-term success depend on the sustainability of our operations and the resilience of our value chain”. We have not identified direct harm to any stakeholders’ group from our actual impact. All actions we take
are towards decarbonisation by following the applicable regulatory, industry and international standards.
E1.MDR-A_05
In 2024, we made progress on our climate-related actions and plans and for the fourth consecutive year we reached our annual roadmap:
• continued our decarbonisation journey in all five levers in alignment with our NetZeroby40 roadmap;
• focused on packaging decarbonisation using a higher percentage of recycled materials and improving percentage packaging collection;
• supported further roll-out of Deposit Return Schemes in our EU markets;
• promoted Extended Producer Responsibility (EPR) policies and the launch of new packaging collection systems in priority markets;
• cooperated with eight other industry players and three organisations to publish CSR Europe Biodiversity Alliance White Paper “How Companies in Europe Address Biodiversity’;
• expanded our partnerships in water and waste reduction.
In 2021, we committed to achieve net zero emissions across the entire value chain by 2040. This is our most ambitious, complex and forward-looking commitment. We were among the first companies to adopt
science-based reduction targets. In our existing net zero roadmap, our starting point is 2017, the baseline for our science-based targets. We have reduced our absolute total value chain emissions in scopes 1, 2
and 3 by 31% (excluding Egypt) from 2010 to the end of 2024, our absolute value chain reduction in 2024 versus 2017 is 18% (excluding Egypt). These results come from our sustained investment and focus, and
highlight our consistent approach to decarbonisation. Reducing carbon emissions is the non-negotiable goal for our business. We continued to work across our value chain to reduce emissions, with a particular
focus on energy efficiency and renewal, packaging, coolers and ingredients. We do this because we will make the biggest progress by delivering sustainable solutions in these parts of our value chain.
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Sustainability Statement continued
In 2024, we updated our net zero roadmap with three important changes. We integrated our Egyptian operations into our 2030 and NetZeroby40 climate targets, we added new Forest, Land and Agriculture
(FLAG) targets, and we updated our mid-term emissions goal to follow the Well-Below-2-Degrees (WB2D) pathway until 2030 and then the 1.5 degrees pathway until 2040. Due to the FLAG targets
requirements, we are moving our baseline year for the mid-term 2030 emissions reduction targets from 2017 to 2019. With all those changes, our NetZeroby40 target was formally validated by the SBTi. As the
validation came in December 2024, in 2025 we will work to update the roadmap with all those changes and communicate transparently on our website.
E1-3_01,03,04
Table 9: Mitigation actions per decarbonisation lever (action, GHG reductions)
The actions per lever consider our updated net zero roadmap as approved by the SBTi in late December 2024. It includes Egypt acquisition, scope 3 accelerated climate scenario (well below 2 degree Celsius),
and a new baseline year of 2019 (instead of 2017) as per the SBTi Net Zero guideline and the SBTi requirements for FLAG emissions, where 2017 cannot be used as a baseline year. We are going to perform
carbon boundary review and recalculation of our emissions to include FLAG factors in 2025 and will update the roadmap accordingly.
GHG emissions reduction
Achieved
(2024 vs. 2019)
tCO2e
Expected
(2030 vs. 2019)
tCO2e
Time horizon for
completing the action
Year
Relevant target
(link to E1-4)
Manufacturing (includes scope 1 fuels used, scope 1 losses of CO2 used for beverage carbonation, scope 2 electricity/heat/steam/hot
water purchased, scope 3 CO2 in product (carbonation) and scope 3 CO2 produced in CHPs):
• continue implementing and accelerating the energy-efficient projects in our plants (deployment of energy-saving projects, old
equipment modernisation, and installation of heat pumps and electrification);
• improving the CO₂ yield in the plants;
• accelerating usage of renewable and/or cleaner energy to replace fossil fuel in scope 1 or electricity/heat/steam/hot water in scope 2.
+1kt
+0.2%
-198kt
-46%
2030 Scope 1 and 2 decrease by
2030 vs. 2019 as per the 1.5
degree climate scenario
(SBT)
Transportation (includes scope 1 fuels used for own transport, both light and heavy, and scope 3 fuels used for outsourced logistics and
transportation):
• optimising the routes of light and heavy fleet, increasing logistics efficiency and increasing heavy trucks utilization;
• shifting the existing fleet to innovative technologies and renewable or alternative fuels;
• enhancing the strategic partnerships with our third-party logistics providers and joint investments (accelerate shifting to alternative
fuels, route to market evolution, shifting of more volume to trains and applying industry innovations).
+6kt
+2%
-8kt
-3%
2030 Scope 1 and 2 decrease by
2030 vs. 2019 as per the 1.5
degree climate scenario (SBT);
Scope 3 decrease by 2030 vs.
2019 as per the well below 2
degree climate scenario
Packaging (includes scope 3 from all primary, secondary and tertiary packaging used for our products):
• implementing our Pack Mix of the Future strategy (increasing recycled PET, moving from non-reusable one-way glass bottles to
reusable glass bottles and providing more packageless solutions);
• implementing decarbonisation of our primary and secondary packaging materials (aluminium cans, PET bottles, glass bottles, plastic
labels, closures, stretch films, etc.).
+271kt
+21%
-309kt
-21%
2030 Scope 3 decrease by 2030
vs. 2019 as per the well below
2 degree climate scenario
Ingredients (includes scope 3 from all ingredients used for manufacturing of our beverages):
• decarbonisation initiatives with our suppliers (engagement of farmers through co-development of farming pilots with suppliers, using
regenerative agricultural practices);
• continue reformulation of our products and moving to more lights and zero products in our beverage portfolio.
+135kt
+10%
-243kt
-17%
2030 Scope 3 decrease by 2030
vs. 2019 as per the well below
2 degree climate scenario
Drink equipment (includes scope 3 of electricity used by our customers for the drink equipment we provide, scope 1 for refrigerants’
losses from cold drink equipment):
• accelerate the process of providing energy-efficient drink equipment to our customers and finding innovative solutions for further
energy efficiency of our drink equipment;
• greening the electricity grid mainly in Europe and with slower pace in Africa.
-500kt
-38%
-929kt
-63%
2030 Scope 3 decrease by 2030
vs. 2019 as per the well below
2 degree climate scenario
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Sustainability Statement continued
E1-3_07,08, E1-1_04,06,08
As detailed in the EU Taxonomy section of this
sustainability statement, our core economic activity
is not yet included in the published Delegated Acts
and is therefore not considered Taxonomy-eligible
at this stage. However, we have assessed secondary
activities that contribute to climate change
mitigation. In 2024, 0.67% of total Capex was
Taxonomy-aligned, also driven by activities
connected to our climate transition plan. Specifically,
CCM4.25 ‘Production of heat/cool using waste heat’ ,
CCM7.4 ‘Installation, maintenance, and repair of
charging stations for electric vehicles in buildings’
and CE1.1 ‘Manufacture of plastic packaging
goods’ contributed to aligned Capex.
We have also assessed CCM6.5 ‘Transport by
motorbikes, passenger cars, and light commercial
vehicles’, which relates to the electrification of our
fleet. Although a significant part of our fleet meets
the TSC, due to challenges with the DNSH criteria,
we will claim zero alignment to EU Taxonomy in 2024.
Looking ahead, we expect to maintain or increase
EU Taxonomy alignment as we continue to
evaluate investment plans and operational
expenditures in areas that could become eligible
with the introduction of regulatory updates.
Metrics and targets
E1-4 Targets related to climate change
mitigation and adaptation
E1.MDR-T_01,02,03,05,06,07, E1-4_01,24
NetZeroby40
Multiple climate scenarios have been taken into
consideration, as outlined in SBM-3_08_09_10,
helping assess external drivers, including policy
developments and market shifts.
In October 2021, we announced our NetZeroby40
transition plan, as part of our commitment to
reach net zero absolute emissions across all
scopes by 2040. This target is fully aligned with
the 1.5 degree pathway, and it was approved
by the SBTi in December 2024 (link to the SBTi
website). NetZeroby40 is a carbon emissions
roadmap including our base-year results,
year-on-year emissions targets, 2030 near-term
and our 2040 net zero targets. The plan’s main
targets are:
Overall net-zero target:
• Coca-Cola HBC AG commits to reach net zero
greenhouse gas emissions across the value
chain by 2040.
Near-term targets:
• Energy & Industry: Coca-Cola HBC AG commits
to reduce absolute scope 1 and 2 GHG emissions
by 46.2% by 2030 from a 2019 base year. Coca-
Cola HBC AG also commits to reduce absolute
scope 3 GHG emissions by 27.5% within the same
timeframe.
• FLAG: Coca-Cola HBC AG commits to reduce
absolute scope 3 FLAG GHG emissions by
33.3% by 2030 from a 2019 base year.* Coca-
Cola HBC AG commits to no deforestation
across its primary deforestation-linked
commodities, with a target date of December
31, 2025.
* The target includes FLAG emissions and removals.
Long-term targets:
• Energy & Industry: Coca-Cola HBC AG commits
to reduce absolute scope 1 and 2 GHG emissions
by 90% by 2040 from a 2019 base year. Coca-
Cola HBC AG also commits to reduce absolute
scope 3 GHG emissions by 90% within the same
timeframe.
• FLAG: Coca-Cola HBC AG commits to reduce
absolute scope 3 FLAG GHG emissions by 72%
by 2040 from a 2019 base year.*
* This target includes FLAG emissions and removals.
Science-based targets: please see above.
Mission 2025
Developed in 2018, Mission 2025 is a set of
sustainability commitments based on our stakeholder
materiality matrix and aligned with the UN Sustainable
Development Goals (SDGs) and their targets. It spans
across six key focus areas to cover our entire value
chain, including emissions reduction, with the
following commitments:
• Reduce direct carbon emissions ratio by 30%
vs 2017.
• 50% of our refrigerators in customer outlets
will be energy efficient.
• 50% of total energy used in our plants will be
from renewable and clean sources.
• 100% of the total electricity used in our plants
in EU and Switzerland will be from renewable
and clean source.
E1.MDR-T_04
Our recently approved by the SBTi targets for
reducing scope 1 and 2 and scope 3 emissions have
organisation-wide coverage. We are covering 100%
of our operational activities.E1.MDR-T_10
As previously mentioned, our climate change
commitments cover our entire Company, all scope
1, 2, 3, and we aim to reach net zero emissions
across the entire value chain by 2040 as per the 1.5
degree scenario, as well as our intermediate
emissions reduction target by 2030 is approved by
the SBTi.
E1.MDR-T_08
The Group’s annual roadmap of net zero target by
2040 is shown in the net zero chart in the strategic
part of the IAR, section ‘License to operate’,
page 25.
Mission 2025 targets related to climate and energy
are disclosed in the Strategic Report, ‘Key
performance indicators’ section on pages 33 to 34.
Those targets don’t have interim targets, but only
annual roadmaps at Group level disaggregated
further down per BU.
E1.MDR-T_09, E1-4_22
At the end of 2020, we set and received approval by
the SBTi of our Science-Based Targets by 2030, as
our previous SBT period-closing was end of 2020.
Those targets are reported in the 2024 IAR (as an
old roadmap): Reduction of absolute scope 1, 2
emissions by 55% by 2030 vs 2017 baseline following
the 1.5 degree global warming scenario and
reduction of scope 3 emissions by 21% by 2030 vs.
2017. So far, we have achieved 31% reduction of
our operational emissions vs 2017 (excluding Egypt).
Those approved by the SBTi targets are without
the integrated new acquisition, Coca-Cola HBC
Egypt operations, as its integration happened in
2022, after targets submission and approval in
2021.For the newest targets, approved by the
SBTi in December 2024, please refer to previous
page (Net Zero targets and FLAG targets). We report
as per the GHG Protocol Corporate Accounting and
Reporting Standard. We are covering 100% of our
operational activities. We account and report all
seven GHG emissions and report those as
equivalent to CO2. Under scope 2 emissions, we are
reporting market-based GHG emissions and
separately the location-based scope 2 emissions.
Our climate targets are also aligned with the UN SDG
Target 13.1, i.e. strengthen resilience and adaptive
capacity to climate-related hazards and natural
disasters in all countries, as well as Targets 7.2 and 7.3
on increased renewable energy and energy
efficiency. We do not use any carbon removal nor
neutralisation or off-setting/insetting
methodologies to achieve our GHG internal
annual roadmap targets as per the SBTi
guidelines.
E1.MDR-T_11
The Group sets measurable, outcome-oriented
and time-bound targets on material sustainability
matters through a structured and inclusive process.
Stakeholder engagement plays a pivotal role in this
process, particularly through our Annual Stakeholder
Forums, where key discussions are taken, and the
insights gathered are integrated into the formulation
of our targets.
Additionally, the Group takes into account the
requirements of ESG raters, including those of our
investors, ensuring that our targets are aligned with
their evolving expectations. The UN SDGs also
form a crucial foundation for the Group’s target-
setting process, guiding our efforts in addressing
global sustainability challenges. Through this
comprehensive approach, the Group ensures that
its targets are relevant, ambitious and responsive
to both stakeholder input and global standards.
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Sustainability Statement continued
E1.MDR-T_12
As per the GHG Protocol, the recalculation policy for base-year emissions and previous years’ emissions is applicable in case of the following changes: 1) significant change in calculation methodology, 2) significant
changeinemissionsconversion factors (LCAs), 3) investment, divestment, mergers and acquisitions with significant impact to business financials and emissions (>3% of the volume), 4) significant change in the
business growth rate or activity, and 5) mistake or calculation gap found which is bigger than 3%.
In 2024, we have not recalculated our emissions. Emission factors are provided to us by the Institute of Energy and Environment (IFEU) assigned by The Coca-Cola Company (TCCC) and used as the emissions factors
data source to TCCC and their bottling system for regular updates (update as of January 2024).
E1.MDR-T_13
In 2024, we reached 18% reduction of our absolute value chain emissions versus 2017 which is the fourth year of meeting our annual roadmap (please see the Mission 2025 performance table in the strategic
part of the IAR: we overachieved our target on percentage energy-efficient coolers, we continued with 100% renewable and clean electricity in our EU and Swiss plants, and we overachieved our percentage
renewable and clean energy across Coca-Cola HBC plants.)
As part of our performance review, each target is monitored regularly (monthly or quarterly). We report the progress in a specific dashboard. There the status versus the target is colour-coded and disclosed as
difference (absolute and in %). Performance review includes setting corrective measures and follow up.
E1-4_01-17
Table 10: GHG emission reduction targets
Scope
Baseline
year
Baseline
GHG
emissions
Current
Reporting Year
Value
Target year
Target
reduction:
% of baseline
GHG emissions
Target
% of scope 1, 2 and 3
Scope 2 location /
market-based
Coverage of GHG
(Year)
(tCO2e)
(tCO2e)
(Year)
(%)
Old SBT target (by 2024):
reduce GHG emissions from direct operations 55% by 2030 vs 2017 (CCH excl. Egypt)
100% scope 1
and 2
Scope 2
market-based
Scope 1 and 2
combined
2017
562,608
390,622
2030
55%
Old SBT target (by 2024):
reduce scope 3 GHG emissions 21% by 2030 vs 2017 (CCH excl. Egypt)
100% scope 3
n/a
Scope 3 only
2017
4,399,075
3,684,002
2030
21%
Revised target (from 2025)
Energy and Industry:
reduce absolute scope 1 and 2 GHG emissions 46.2% by 2030 from a 2019 base year
100% scope 1
and 2
Scope 2
market-based
Scope 1 and 2
combined
(scope 2
market-based)
2019
545,386 (to be
adjusted in 2025
after full carbon
inventory
completion)
Will be
reported in
2025
2030
46.2%
Revised target (from 2025):
reduce absolute scope 3 GHG emissions 27.5% by 2030 from a 2019 base year
100% scope 3
n/a
Scope 3 only
2019
4,622,844 (to be
adjusted in 2025
after full carbon
inventory
completion)
Will be
reported in
2025
2030
27.5%
Revised target (from 2025) FLAG:
reduce absolute scope 3 FLAG GHG emissions 33.3% by 2030 from a 2019 base year
100% FLAG part
of scope 3
n/a
FLAG
scope 3 only
2019
536,389 (to be
adjusted in 2025)
Will be
reported in
2025
2030
33.3%
Our targets refer to all GHG types according to the SBTi methodology (e.g., CO2, CH4, N2O, etc.) and they correspond to gross emissions.
Our old roadmap and targets are based on the approved SBT in 2021 when FLAG targets and Net Zero Guidelines were not available.
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Sustainability Statement continued
Our revised roadmap and targets are based on the
formally approved by the SBTi in December 2024
net zero target by 2040 and SBT including FLAG
by 2030.
E1-4_18
Within our recently approved NetZeroby40
targets, we have included all relevant emissions
from all our entities from our financial reporting,
following the materiality threshold as per the GHG
Protocol Standard. We also report 100% of
emissions from our joint ventures as there we
have operational control. Our NetZeroby40 target
was formally approved by the SBTi in December
2024. In 2024 we report as per the old science-
based target by 2030, also approved by the SBTi
where Egyptian operations are excluded as they
were acquired in 2022, after setting the target.
E1-4_19
We have decreased our absolute direct emissions
by 58% and reduced our absolute total value chain
emissions in scopes 1, 2 and 3 by 31% from 2010
to the end of 2024. All our emissions in those years
have been assured by an external organisation,
and the assurance statement is available in each
of our Integrated Annual Reports published on
the website.
E1-4_20
Our baseline values are with primary data, assured
externally. 2017 was selected as we developed our
Mission 2025 in 2018. Now 2019 is selected as per
the FLAG requirements and considering the most
credible data for our Egyptian operations which
were acquired in 2022. We follow GHGP, and we
have a recalculation policy to recalculate baseline
year as required by the GHG Protocol.
E1-4_21
The only occasion where we have slightly modified
our baseline year was regarding the development
of our FLAG targets. To meet the new SBTi
recommendation for FLAG targets, that baseline
year should not be older than 2018, we had to
change our original 2017 baseline to 2019 for
compliance purposes. Furthermore, there were
no credible emissions data for our Egyptian
operations related to the years prior to 2019.
E1-5 Energy consumption and mix
E1-5_01-15
Table 11: Energy Consumption and mix
Energy consumption and mix
2024
(1) Fuel consumption from coal and coal products (million \MWh)
0
(2) Fuel consumption from crude oil and petroleum products (million MWh)
0.47
(3) Fuel consumption from natural gas (million MWh)
1.11
(4) Fuel consumption from other fossil sources (million MWh)
0
(5) Consumption of purchased or acquired electricity, heat, steam and cooling from
fossil sources (million MWh)
0.36
(6) Total fossil energy consumption (million MWh) (calculated as the sum of lines 1 to 5)
1.94
Share of fossil sources in total energy consumption (%)
76%
(7) Consumption from nuclear sources (million MWh)
0
Share of consumption from nuclear sources in total energy consumption (%)
0
(8) Fuel consumption from renewable sources, including biomass (also comprising
industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.)
(million MWh)
0
(9) Consumption of purchased or acquired electricity, heat, steam and cooling from
renewable sources (million MWh)
0.62
(10) The consumption of self-generated non-fuel renewable energy (million MWh)
0
(11) Total renewable energy consumption (million MWh) (calculated as the sum of lines
8 to 10)
0.62
Share of renewable sources in total energy consumption (%)
24%
Total energy consumption (million MWh) (calculated as the sum of lines 6, 7 and 11)
2.56
Energy intensity per revenue: 0.2379 kWh/€ revenue.
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E1-6 Gross scopes 1, 2, 3 and Total GHG emissions
E1-6_01-07,08,09,10,11,12,13,17,18,19,20,21,22,24,25,28
Table 12: Gross scopes 1, 2, 3 and Total GHG emissions
Gross emissions
2024
Scope 1
Gross scope 1 GHG emissions (in metric tonnes of CO2e)
342,742
% of scope 1 GHG emissions from regulated emission trading schemes
0
Biogenic emissions of CO2 from the combustion or bio-degradation of biomass
(include emissions of other types of GHG (in particular CH4 and N2O))
0
Scope 2
Gross scope 2 GHG location-based emissions (in metric tonnes of CO2e)
342,047
% of gross scope 2 GHG location-based emissions
7.1%
Gross scope 2 GHG market-based emissions (in metric tonnes of CO2e)
111,670
% of gross scope 2 GHG market-based emissions
2.4%
% of contractual instruments used for sale and purchase of energy bundled with
attributes about energy generation in relation to scope 2 GHG emissions
42.8%
% of contractual instruments used for sale and purchase of unbundled energy
attribute claims in relation to scope 2 GHG emissions
57.2%
Biogenic emissions of CO2 carbon from the combustion or biodegradation of
biomass (include emissions of other types of GHG (in particular CH4 and N2O))
0
Scope 3
Gross scope 3 GHG emissions for each significant category (in metric tonnes
of CO2eq)
4,135,467
% of emissions calculated using primary data obtained from suppliers or other
value chain partners
100%
Biogenic emissions of CO2 carbon from the combustion or biodegradation
of biomass that occur in upstream value chain (include emissions of other
types of GHG (in particular CH4 and N2O))
0
Gross emissions
2024
Biogenic emissions of CO2 carbon from the combustion or biodegradation
of biomass that occur in downstream value chain (include emissions of other
types of GHG (in particular CH4 and N2O))
0
Emissions of CO2 that occur in the lifecycle of biomass other than from
combustion or biodegradation (such as GHG emissions from processing or
transporting biomass)
0
Totals
Total GHG emissions with location-based scope 2
4,820,256
Total GHG emissions with market-based scope 2
4,589,879
E1-6_02
Table 13: Gross emissions percentages
Gross emissions percentages
2024
Gross scope 1 emissions from the consolidated accounting group (parent and
subsidiaries)
100%
Gross scope 2 emissions from the consolidated accounting group (parent and
subsidiaries)
100%
Gross scope 1 emissions from investees*
0%
Gross scope 2 emissions from investees*
0%
* Associates, joint ventures or unconsolidated subsidiaries that are not fully consolidated in the financial statements of the consolidated
accounting group, as well as contractual arrangements that are joint arrangements not structured through an entity (i.e., jointly controlled
operations and assets), for which it has operational control.
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E1-6_03
Table 14: Gross emissions absolutes
Emissions category
Gross emissions
(tCO2e)
2024
Greenhouse gas emissions from operations (Total scope 1)
342,742
CO2e from energy used in plants (scope 1)
196,244
CO2e from fuel used in Company vehicles
84,800
Coolant emissions from Cold Drink Equipment (CO2e )
4,352
CO2e for product carbonation (CO2 losses)
50,582
CO2e from remote properties’ fuel consumption
6,764
Energy indirect GHG emissions (scope 2 market-based)
111,670
CO2e from electricity used in plants (scope 2 market-based)
73,258
CO2e from electricity used in plants (scope 2 location-based)
301,897
CO2e from supplied heating and cooling (scope 2)
34,142
CO2e from electricity consumption in remote properties, market-based
4,270
CO2e from electricity consumption in remote properties, location-based
6,007
Total emissions scope 2 market-based
111,670
Total emissions scope 2 location-based
342,047
Total emissions (scope 1 and 2 market-based)
454,413
Total emissions (scope 1 and 2 location-based)
684,789
Emissions category
Gross emissions
(tCO2e)
2024
Other indirect GHG emissions (scope 3)
4,135,467
CO2e from electricity use of cold drink equipment
806,639
CO2e embedded in packaging (Cradle-to-Gate)
1,549,287
CO2e from sugar and Juice concentrates
1,457,043
CO2e from third-party transports
193,241
CO2e from flights
2,595
CO2e from product carbonation
102,799
CO2e from Remote Properties fuel consumption
5,922
CO2e from electricity consumption in rented and outsourced Remote Properties
market-based
6,315
CO2e from CO2 production in CHPs
11,626
GHG emissions absolute and intensity (scope 1, 2 and 3
– scope 2 market-based)
4,589,879
GHG emissions absolute and intensity (scope 1, 2 and 3
– scope 2 location-based)
4,820,256
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E1-6_04,05,26,27,29
Table 15: Scope 3 categories (numbers don’t include any FLAG emissions, as we are planning to introduce their reporting from 2025 onwards).
Significant categories
of scope 3 emissions
Criterion for significance (Magnitude,
financial spend, influence, related
transition risks, stakeholder views, other
Scope 3 emissions
magnitude (tCO2e)
Relevance as per materiality threshold
(Y/N)
(E1-6_26, 27)
Reporting boundaries considered, calculation methods
for estimating GHG emissions, calculation tools applied
(E1-6_29)
1. Purchased goods and
services
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
3,017,955
Y
Average data method.
For emission quantification, we multiply the quantities of purchased
materials by the respective ingredients/packaging GHG emissions
factors. We use Ecoinvent, World Food Database and IFEU LCA
assigned by TCCC among others as the source of emission factors.
In the near future, we expect this category emission accounting to
move from current method to a hybrid data method and use supplier-
specific emissions factor where available and reliable.
In 2024, we used specific emission factor for our own in-house
produced rPET. The factor was developed based on the LCA prepared
by IFEU independent experts.
In addition, for our main primary packaging materials, as PET,
aluminum for cans, glass for returnable and one-way bottles, we are
including in the calculation recycling content of materials used
(recycled content comes from our suppliers).
In 2024 we enhanced our reporting capability by automating the
report of the raw and packaging materials used in production. During
this automation process we improved data accuracy.
We are looking in the future to split category 3.1. Ingredients and
packaging emissions based on respective LCA to three main parts:
materials upstream activity, materials transport to Coca-Cola HBC
facility and materials End-of-Life.
2. Capital goods
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
Not reported in Scope 3 as this category is below materiality
threshold, based on The Coca-Cola Company Materiality Analysis
done in 2023 based on biggest bottlers’ input data (including CCHBC)
3. Fuel-and-energy-related
activities (not included in
scope 1 or 2)
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
Referring to latest Materiality Assessment done by TCCC
4. Upstream transportation
and distribution
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
193,241
Y
Distance-based method.
Under this category, we quantify emissions captured from mileage
driven by third-party fleet, including product Haulage and Distribution,
multiplying by the GHG factor (emissions based on distance from the
calculation tool of WRI-WBCSD GHG Protocol). GHG emission factors
include Tank-To-Wheel emissions.
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Significant categories
of scope 3 emissions
Criterion for significance (Magnitude,
financial spend, influence, related
transition risks, stakeholder views, other
Scope 3 emissions
magnitude (tCO2e)
Relevance as per materiality threshold
(Y/N)
(E1-6_26, 27)
Reporting boundaries considered, calculation methods
for estimating GHG emissions, calculation tools applied
(E1-6_29)
5. Waste generated in
operations
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
Not reported in Scope 3 as this category is below materiality
threshold, based on The Coca-Cola Company Materiality Analysis
done in 2023 based on biggest bottlers’ input data (including CCHBC).
6. Business travel
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
2,595
Y
Distance-based method.
Since 2018, we report GHG emissions from flights related to all
Company employees. We receive emission data from the travel
agencies, they use GHG factors based on the distance travelled and
the travel class (from GHG Protocol). GHG factors used include
Tank-To-Wheel emissions.
7. Employee commuting
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
We have company owned and leased fleet, including management and
functional cars in addition to the company owned and leased heavy
fleet (trucks, vans, etc.) used for the product transportation to
customers and reported under Scope 1 (mobile combustion).
Management and functional cars are used by employees also to
commute between home and office. Fuels and energy used for this
activity is reported as part of Scope 1 (mobile combustion) and that’s
why not included here (to avoid double reporting). Rest of the
employee commuting is below materiality threshold, based on The
Coca-Cola Company Materiality Analysis done in 2023.
8. Upstream leased assets
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
12,237
Y
Average data method.
The emissions captured under this category are emissions from
electricity and fuel used in rented and outsourced Remote Properties.
We use location-based emission factors for electricity used in rented
and outsourced Remote Properties.
9. Downstream transportation
and distribution
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
These emissions are moved to category 3.4 as 3rd party
transportation and distribution services (as they are contracted and
paid by the company).
10. Processing of sold
products
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
We sell Ready-to-Drink products, no processing required by
consumers.
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Significant categories
of scope 3 emissions
Criterion for significance (Magnitude,
financial spend, influence, related
transition risks, stakeholder views, other
Scope 3 emissions
magnitude (tCO2e)
Relevance as per materiality threshold
(Y/N)
(E1-6_26, 27)
Reporting boundaries considered, calculation methods
for estimating GHG emissions, calculation tools applied
(E1-6_29)
11. Use of sold products
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
102,799
Y
Primary data method.
In this category we include carbon dioxide used for our product
carbonation. We quantify carbon dioxide based on the product
formulations and multiply by the GHG factor. In case of carbon dioxide,
the GHG emission factor is equal to 1.
12. End-of-life treatment of
sold products
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
End of life treatment is included in the CO2 emission factor of
packaging materials and therefore reported in category 3.1.
13. Downstream leased
assets
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
806,639
Y
Average data method.
In this category we include emissions from electricity consumption
related to downstream leased assets, which are drink equipment
placed in the customers’ outlets in all our markets. We receive the
information on electricity consumption by type of equipment from
producers. We know number and type of the units in each market and
multiply electricity consumption by the number of units for each type.
Subsequently, the total electricity consumption is multiplied by the
country (location-based) grid factor taken from the IEA database. In
essence, electricity consumption is with primary data and the grid
factor is country average location-based.
14. Franchises
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
We do not operate any franchises.
15. Investments
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
We do not operate with investments
Other upstream
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
No other upstream activities are operated by the company.
Other downstream
Magnitude/ Materiality to
Corporate Carbon emissions
inventory
0
N
No other downstream activities are operated by the company.
In the above table all CCH subsidiaries and parent companies are considered.
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E1-6_06
Scope 1 (Direct emissions in direct operations): 7.5%
Scope 2 (Indirect emissions in direct operations (purchased)): 2.4%
Scope 3 (Indirect emissions up/downstream): 90.1%
E1-6_14
There were no significant changes in the definition of our upstream and downstream value chain
related to emissions reporting.
E1-6_15
The methodologies and significant assumptions for calculation GHG emissions were as follows:
Scope 1: in our GHG emission factors are included: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3. We use
Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. CO2e factors: mobile
stationary combustion: GHGP tool; Refrigerants: IPCC 2021.
Scope 2 includes the activities under our operational control, described in our Environmental
Whitebook. In our GHG emissions factor are included: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3.
Scope 3: in our GHG emissions factors are included: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3. We use
Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. CO2e factors: mobile and
stationary combustion: GHG tool; electricity: from IEA location-based; Ingredients/Pack materials: LCA
studies made by TCCC.
We are working also with the Coca-Cola System team on the Supplier Specific Emission Factors in
collaboration with key commodities suppliers, which will enable us to define value chain emissions
brought to the business in a much more accurate way in the future. This will create clear visibility of the
common interest projects and initiatives with suppliers and partners to decarbonise the business and
reach our long-term climate goal – NetZeroby40.
E1-6_23
Coca-Cola HBC is using a range of contractual instruments for sale and purchase of energy across the
countries in which it operates. Sourcing methods employed include purchasing from an on-site installation
(on-site PPA), and unbundled procurement of energy attribute certificates (EACs), while the main tracking
instruments used are Guarantees of Origins (GOs) or contracts. For more information on the contractual
instruments per country of operation, you may refer to the 2024 CDP Corporate Questionnaire.
E1-6_30,31
Table 16: GHG emissions intensity (total GHG emissions per net revenue)
GHG emissions intensity (total GHG emissions per net revenue)
Scope 1, 2 (Location-based) and Scope 3
Scope 1, 2 (Market-based) and Scope 3
2024
2024
448.2 g CO2e/EUR
426.8 g CO2e/EUR
E1-6_32,35
Table 17: Net revenue amounts for GHG intensity
Net revenue used to calculate GHG intensity
€10,754.4 million
Net revenue (other)
€0.0 million
Total net revenue (in financial statements)
€10,754.4 million
Emissions intensity is calculated in grammes CO2e per litre of produced beverage and in 2024 it is
287.32g/lpb (all 29 countries included).
E1-7 GHG removals and GHG mitigation projects financed through carbon credits
E1-7_01
Coca-Cola HBC is not currently using any carbon removal or neutralisation or off-setting/insetting
methodologies to meet our GHG roadmap targets. As per the SBTi guidelines, carbon removal
measures are not permitted at this stage. We commenced the purchase of a small amount of carbon
removals in 2023 and 2024, we accumulate them but we don’t use them in our carbon inventory as per
the SBTi guidelines. At present, we are still gaining knowledge on carbon removals, and we plan to
develop a comprehensive removal strategy once the formal guidelines on removals are finalised.
E1-7_02
We plan to purchase and cancel carbon credits for neutralisation at the end of our net zero target (2040).
E1-7_20
We intend to neutralise any residual emissions with permanent carbon removals at the end of the target.
E1-7_21
No public claims on GHG neutrality involving use of carbon credits were made in 2024.
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E1-8 Internal carbon pricing
E1-8_01,04,06,08
Table 18: Internal carbon pricing (ICP) schemes
Types of internal
carbon price scheme
Volume
at stake (tCO2e)
% of gross scope emissions
(percentage
of the respective scopes
that are covered by
ICP schemes)
Perimeter description/
Scope of application
Shadow price
applied for risk
assessment
(evolutionary,
updated on
a yearly basis)
Scope 1:
342,742
Scope 2:
111,670
Scope 3:
4,135,467
Scope 1: 100%
Scope 2: 100%
Scope 3: 100%
Applicable across all
geographies and entities,
for the inclusion of climate-
related considerations in risk
assessment of production and
operational activities. Across
scope 1, 2 and 3 emissions.
E1-8_05
We employ an internal price on carbon (ICP) mechanism, to incentivise consideration of climate-related
issues in risk assessment. Specifically, since 2022, we work with an external provider to analyse various
publications and assimilate the results in terms of Euros per tCO₂e extending to the year 2050.
This process involves a top-down assessment of the required global average carbon price per tonne
to encourage the level emissions reduction consistent with the emissions pathways we assessed.
The data was collected from various sources including the International Monetary Fund (IMF), the
International Energy Agency (IEA), the Inevitable Policy Response (IPR), the High-level Commission
on Carbon Pricing (CPLC), and the Network of Central Banks and Supervisors for Greening the
Financial System (NGFS).
Carbon prices were differentiated for scope 1, 2 and 3 emissions based on sector-specific data and
were calculated as a weighted average based on each country’s contribution to total Group emissions.
For scope 1 emissions, we used projected carbon pricing from the soft drinks industry. For scope 2,
we applied projections from the utilities sector. For scope 3, we assigned different rates for ingredients,
packaging and other key drivers.
We assessed different climate scenarios, including Paris Ambition (RCP1.9) and Stated Policies
(RCP4.5). The maximum projected prices used in our analysis were:
• Scope 1: Carbon price is expected to reach €81.8/tCO₂e in 2030 and €155.1/tCO₂e in 2040 under
the Paris Ambition scenario, and €38.4/tCO₂e in 2030 and €53.8/tCO₂e in 2040 under the RCP4.5
scenario.
• Scope 2: Carbon price is expected to reach €93.1/tCO₂e in 2030 and €189.9/tCO₂e in 2040 under
the Paris Ambition scenario, and €35.1/tCO₂e in 2030 and €48.6/tCO₂e in 2040 under the RCP4.5
scenario.
• Scope 3: Carbon price is expected to reach €227.4/tCO₂e in 2030 and €466.3/tCO₂e in 2040 under
the Paris Ambition scenario, and €72.5/tCO₂e in 2030 and €80.3/tCO₂e in 2040 under the RCP4.5
scenario.
Using the ICP for climate risk quantification has allowed us to fully comply with TCFD guidance and has
provided management with valuable information for assessing and managing climate-related risks and
opportunities. Additionally, we have a well-established strategic business planning process that forms
the basis of the Board’s quantitative assessment of the Group’s viability. This plan reflects our current
strategy over a rolling five-year period and includes the impact of climate change under multiple
scenarios. The annual operating costs of scope 1 and 2 carbon emissions, calculated using the ICP
methodology, are integrated into the financial forecasts used for the viability assessment.
E1-8_09
For goodwill and indefinite-lived intangible assets, impairment testing is conducted annually using
forward-looking projections which cover a five-year period, based on current operational and market
conditions. The assumptions used in the impairment test are then reviewed at the Group level to
determine whether an impairment loss should be recorded. This process also takes into consideration
the potential adverse impact to future cash flows arising from climate change risk. Such potential
impacts include the increased capital expenditure required to mitigate climate-related risks and
focus on the impact from disruptions to production and distribution due to extreme weather and the
increased cost of water, as well as managing the Group’s carbon footprint in line with our NetZeroby40
commitments. For more details, please refer to Note 13 of the consolidated financial statements.
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ESRS E2 –
Pollution
Impact, risk and opportunity
management
E2-1 Policies related to pollution
E2.MDR-P_01
We recognise pollution as a material topic in our
upstream and downstream value chain segments.
In this context we have in place the following
policies that address the protection of
environment from pollution from different
business activities:
• Principles for Sustainable Agriculture
• Environment Policy
• Supplier Guiding Principles Policy
• Water Stewardship Policy.
According to ‘Principles for Sustainable Agriculture’,
our approach to agriculture and livestock
production emphasises resilience, environmental
sustainability and minimal environmental impact,
striving to restore and enhance the surrounding
ecosystems. This includes:
• monitoring water quality in irrigated crops; and
• minimising water quality impacts from
wastewater discharges, erosion and nutrient/
agrochemical runoff.
Moreover, according to our Environment Policy,
in order to fulfill our long-term environmental
commitments, we:
• Adhere to all applicable legislative requirements.
• Optimise resource efficiency, prevent pollution
and reduce emissions.
• Conserve watersheds through water
savings, wastewater treatment and water
stewardship initiatives.
Furthermore, we have in place the Supplier
Guiding Principles Policy, which mandates that
our suppliers are expected to:
• embrace pollution prevention and waste
management practices; and
• enhance resource efficiency throughout the
product lifecycle.
According to the Water Stewardship Policy, we
actively invest in educational, volunteer and
community-based initiatives to mitigate
packaging pollution in seas, oceans and rivers.
For the monitoring process, please refer to ESRS
E1.MDR-P_01, as it constitutes a standard
procedure for all policies apart from their topic.
E2.MDR-P_02
The Principles of Sustainable Agriculture (PSA)
Policy and the Supplier Guiding Principles Policy
pertain specifically to the upstream value chain
and possess global applicability, aligning seamlessly
with Coca-Cola HBC’s operational framework.
The PSA Policy predominantly influences suppliers
operating within the agricultural supply chain,
whereas the Supplier Guiding Principles Policy
encompasses the entirety of suppliers engaging
with Coca-Cola HBC.
Finally, the Water Stewardship Policy is
directed downstream as well, focusing on local
communities, and is similarly characterised by
its global applicability.
E2.MDR-P_03
For more information regarding the highest in our
corporate hierarchy responsible for implementing
the relevant policy, please refer to ESRS E1.
MDR-P_03.
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E2.MDR-P_04
For more information regarding the third party
standards and initiatives used in the context of the
relevant policy, please refer to ESRS E1 Climate
change section.
E2.MDR-P_05
Coca-Cola HBC, as an integral part of the
Coca-Cola System, has formally adopted specific
policies aligned with the priorities of TCCC.
As of April 2021, the Principles for Sustainable
Agriculture (PSA) have been recognised as the
prevailing supplier guidance framework. During
2021, the engagement of the supply base was
successfully completed to incorporate the
updated elements introduced in the PSA, which
expand upon the Supplier Guiding Principles
(SGPs) by providing targeted directives to
suppliers of agricultural ingredients. These
principles serve as a cornerstone for articulating
our commitment to sustainable sourcing and are
seamlessly integrated into internal governance
frameworks and procurement processes.
In addition, Annual Stakeholder Engagement
Forums are conducted, providing a platform for
feedback and recommendations that may
influence policy updates. Coca-Cola HBC actively
collaborates with suppliers to enhance overall
performance and foster the development of a
responsible and sustainable supply chain. This
collaboration is further strengthened through
joint value creation initiatives, sustainability
events, participation in industry associations,
workshops on sustainable supply practices, annual
supply chain innovation workshops, materiality
surveys, and the utilisation of a CSR platform for
ethical and sustainable supply chain management.
E2.MDR-P_06
For stakeholder access to the relevant policies,
please refer to ESRS E1 Climate change section.
E2-1_01
According to PSA Policy, Coca-Cola HBC’s
suppliers are committed to adhere to the following:
• Environment and Ecosystems: Agriculture
and livestock production should be resilient,
environmentally sustainable, cause minimal
damage and, where possible, be restorative
to the surrounding environment in all areas
and activities on the farm.
• Soil Management: Maintain and improve
soils and prevent degradation, minimise
GHG emissions, protect soil biodiversity
and enhance soil structure. Implement
a Nutrient Management Plan based on an
integrated Nutrient Management approach
and incorporate the ‘Four Rs of nutrient
stewardship’ to maintain and enhance soil
quality and minimise impacts on air, water
and biodiversity.
• Agrochemical Management: Follow national
and/or local regulations and label requirements
for safe and proper use of all agrochemicals,
in accordance with label directions, to
ensure proper protection of farm personnel
and the environment. Do not use or store
agrochemicals that are banned in the country of
operation or are prohibited under international
treaty. All agrochemicals are managed in a
manner that respects Maximum Residue Limits
(MRLs) of the countries where agricultural
materials are grown and – when possible – of
the countries where they are being used as
ingredients to help prevent negative impacts
on human health. All products used to protect
crops from pest pressures, including, but
not limited to, insects, weeds and diseases,
are clearly documented and are part of an
Integrated Pest Management System.
E2-1_03
We have implemented a comprehensive set of
policies and procedures to proactively prevent,
manage and mitigate the risks of incidents and
emergency situations across our value chain, with
a focus on minimising impacts on both people and
the environment.
In Coca-Cola HBC, we have local emergency
preparedness procedures available and regularly
tested in each site and business unit, e.g., the spill
prevention is tested annually. The Group Business
Resilience team is leading emergency preparedness
assessment of all our operating business units.
This assessment includes response in
emergency situations.
Upstream value chain
• Supplier engagement and risk assessments
Coca-Cola HBC actively collaborates with its
significant suppliers to apply robust standards for
environmental and social responsibility. An annual
risk assessment exercise is conducted to identify
potential vulnerabilities across the entire supply
base, and the depth increases as the exposure and
importance of each supplier starting from Platform
enabled tools on ESG Risk Identification, all the way
to full ESG assessments and physical audits. In this
way Coca-Cola HBC is able to proactively identify
supply disruptions or unsafe practices and
prioritise corrective actions. The Supplier Guiding
Principles mandate compliance with
environmental standards to avoid incidents such
as spills, contamination or resource overuse.
• Incident prevention measures
Suppliers are required to implement and maintain
safety management systems, including
contingency plans for environmental
emergencies. Monitoring tools are in place to
track compliance with sustainable sourcing
policies, especially concerning water stewardship
and raw material procurement.
• Emergency response
In case of upstream incidents, we collaborate with
suppliers to contain and remediate impacts by
means of tracking supplier activities through the
development of corrective actions and following
through to completion.
Downstream value chain
• Distribution and logistics
We incorporate sustainable logistics practices,
including optimised route planning to reduce the
environmental footprint and minimise the risk of
transport-related incidents. Emergency
preparedness protocols, such as proper driver
training, are standard across fleet operations.
• Customer and consumer safety
We ensure that products adhere to the highest
food safety and quality standards, with stringent
testing procedures. Emergency response
mechanisms are in place to address recalls or
product withdrawals.
• Partnerships and collaboration
Collaboration with retailers and distributors
includes training and sharing best practices for
product handling and waste management to avoid
downstream incidents.
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E2-2 Actions and resources related to pollution
E2.MDR-A_01, 02, 03, 05 & E2-2_02
Table 19: List of actions in relation to pollution
Time – reference
Scope of action
Progress of actions/
action plans disclosed
in prior periods
List of actions
Current
Planned
Time horizon of
action completion
Expected outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
PSA certification of
our key agricultural
ingredients
2024
2025
2025
100% Sustainable Agriculture –
PSA compliance
100% by 2025 PSA
compliance
Recruitment of
Suppliers for Sugar
& Juices under PSA
Upstream
Global
Suppliers
96% (excluding
Multon Partners
Juices)
More actions preventing pollution downstream are disclosed in section ESRS E5 Resource use and circular economy, pages 121 to 124.
Pollution is an important environmental matter for us. We implement actions that focus on the prevention of pollution either in soil or water. We have the PSA certification of our key agricultural ingredients
through which we plan to achieve 100% Sustainable Agriculture by 2025. To achieve our goal, we have collaborated with sugar and juice suppliers of the countries from which we are sourcing our ingredients.
E2.MDR-A_04
Coca-Cola HBC has implemented comprehensive mitigation measures and monitoring processes across all facilities to minimise the environmental impact of our operations on water resources. Additionally, a
robust monthly monitoring and tracking system is in place to identify and address any environmental non-compliances, violations, or fines. This data is systematically reviewed and communicated to senior
management on a quarterly basis to ensure continuous oversight and accountability. In 2024, we did not report any significant non-compliance with environmental laws and regulations. We recorded 18
environmental notices of violation, amounting to a total of €254.
For details on operational and capital expenditures required to support our action plan related to pollution, please refer to E5.MDR-A_06.
E2.MDR-A_ 06, 07, 09, 10, 11, 12
As part of our continuous engagement with suppliers, we actively promote responsible environmental practices. The development and implementation of pollution prevention initiatives require though
investments from them. As a result, there is no significant Opex or Capex to disclose related to this standard’s action plan. Nevertheless, our Group’s treasury strategy ensures the availability of financial
resources to support related initiatives, if and when required. By leveraging a diversified range of financing mechanisms, we can effectively address both current and future priorities.
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Metrics and targets
E2-3 Targets related to pollution
E2.MDR-T_01-13 & E2-3_02, 03
Table 20: List of targets’ progress
Targets
Type of target
Target duration
Baseline/
Baseline
number
Target to be achieved
Value chain and
geographical boundaries
2024 status
Alignment with
international initiative
Stakeholders Involvement
Planning to
achieve the
target
Sustainable sourcing of our key
agricultural ingredients
Relative in % 2018-2025
(8 years)
2017/
33%
100% of our key agricultural
ingredients sourced in line with
sustainable agricultural principles
Upstream/ Global
In 2024, we achieved
compliance rate of 96%
(excluding Multon
Partners Juices)
Sustainable
Development Goal
Suppliers
2025
All targets have a designated target year of 2025, with no intermediate milestones. Instead, we adopt a disaggregated approach, setting annual roadmaps that outline the trajectory towards our objectives.
No assumptions were made in the definition of these targets.
The calculations and methodologies employed are meticulously documented in our internal guidebooks, providing a clear and consistent framework. In establishing these targets, we have incorporated
feedback from NGOs, the UN SDGs, industry benchmarks, ISO standards and ESG rating agencies, ensuring alignment with globally recognised standards.
Since their initial establishment, our targets have remained unchanged, reflecting our commitment to consistency and long-term strategic planning. As part of our performance review process, each target
is subject to regular monitoring, conducted either on a monthly or quarterly basis, depending on its nature and criticality.
Progress is systematically reported through a dedicated dashboard, where performance is colour-coded to visually represent the status relative to the target. The dashboard discloses the absolute and
percentage difference between actual performance and the predefined goal, enabling a precise assessment of progress. Corrective measures are promptly identified and implemented when necessary
to ensure alignment with the annual roadmap and overarching objectives.
E2-3_09
The targets we have established in this context are voluntary. In alignment with our Environmental Policy, we ensure that all operations are conducted in full compliance with applicable legislative requirements.
Consequently, if any mandatory targets are introduced within our territories, we adhere to them fully and without exception.
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ESRS E3 – Water
and marine
resources
Impact, risk and opportunity
management
E3-1 Policies related to water and marine
resources
E3.MDR-P_01 & E3-1_01, 02, 06, 11, 12
We firmly believe that environmental protection
is a cornerstone of long-term success, and we are
embedding this principle in our corporate strategy
and policies. Water, as a critical ingredient, central
to our manufacturing processes, and essential
for our agricultural supply chains, is at the core of
these efforts. Ensuring access to safe, clean water
in sufficient quantities and adequate sanitation is
fundamental to sustaining ecosystems, supporting
communities and fostering economic growth.
To this extent, we implement an internal water
stewardship programme across all production
facilities, in order to mitigate business risks related
to water and promote sustainable development.
The main objectives of the programme are to ensure
good quality safe water, in sufficient quantities, as
well as access to clean water and sanitation which
are essential to the health of people and ecosystems
and vital for sustaining communities and supporting
economic growth. Moreover, the Group is
committed to constantly reduce the amount
of water use in priority locations, and after
implementing the conventional water efficiency
practices, the next big opportunity resides in the
circular water use for utilities, ensured by wastewater
recovery. Recognising the importance of local
contexts, we tailor our initiatives to address specific
challenges in water-risk areas. By 2030, climate
change is expected to exacerbate risks to water
availability and quality for our operations and supply
chains, making sustainable water management
a business priority.
Through comprehensive risk assessments,
using globally accredited tools like the WWF
Water Risk Filter, WRI Aqueduct, and TCCC’s
Facility Water Vulnerability Assessment (FAWVA),
we have identified 19 bottling plants in water-risk
regions, including Nigeria, Armenia, Bulgaria,
Cyprus, Greece and Italy. In Nigeria, the focus
is on water access and sanitation (WASH),
while in other locations, efforts centre on water
replenishment, nature-based solutions and water
quality improvements.
To this end, our Principles for Sustainable
Agriculture Policy ensures the long-term
sustainability of water resources at supplier
level by measuring water use in irrigated crop
production, optimising efficiency and minimising
impacts on water quality.
Our Water Stewardship Policy focuses on:
• Reducing water consumption and
improving efficiency.
• Fully treating wastewater to sustain
aquatic ecosystems.
• Educating communities and reducing
packaging pollution in water bodies.
• Assessing water availability and mitigating
related risks.
• Ensuring continued access to fresh drinking
water and improving community water systems.
• Working with suppliers to optimise water use in
agricultural and raw material sourcing.
• Working with suppliers to understand the
water footprint of our agricultural ingredients
and other raw material, as well as promoting
and helping them implement efficient water
management solutions.
• Continuously decreasing the amount of water
use in own operations and assessing the future
availability of water in relevant catchment areas,
to ensure access to fresh drinking water for
local communities.
• Partnering with stakeholders to promote water
conservation awareness.
• Establishing collaborations with organisations
such as the UN, different NGOs and peer
companies.
• Promoting water stewardship practices and
transparency in reporting progress.
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As part of our ISO 14001 certification, which
mandates rigorous monitoring practices and in
line with the strict requirements of TCCC KORE
requirements which are in many cases stricter
than the local requirements, we consistently
conduct comprehensive assessments of all water
parameters, such as raw water quality parameters,
wastewater quality parameters, water withdrawal
quantity, water discharge quantity, etc.
For the monitoring process, please refer to ESRS
E1, as it constitutes the standard procedure
applicable to all relevant topics.
E3.MDR-P_02-05
We engage with a broad range of stakeholder
groups for water resources, including our
communities, governments, NGOs, investors and
suppliers, taking into account their
recommendations in the process of setting water
resources-related policy.
We have linked our material issues to specific
Sustainable Development Goals (SDGs),
established by the UN to achieve long-term
growth and development by 2030 (SDG 6, 14, 15).
The stakeholder groups impacted by our
water-related policies include:
• Our Customers
• Our People
• Our Consumers
• Our Communities
• Governments
• NGOs
• Our Suppliers
• The Coca-Cola Company
• Our Investors
For more information on how we engage with each
group, please refer to E1 section.
E3.MDR-P_03
For further details on the highest level of our
corporate hierarchy responsible for the
implementation and approval of the relevant
policy, please refer to E1 section.
E3.MDR-P_04
We actively participate in and align with various
third-party standards and initiatives that reinforce
our commitment to sustainable practices, such as
the following:
CEO Water Mandate
We adhere to the objectives of this initiative,
furthering our commitment to sustainable water
management as part of our broader
environmental strategy.
Alliance for Water Stewardship (AWS)
or Water Efficiency Management
ISO 46001 certification
In 2024, 25 out of our 60 beverage plants were
certified, while the rest, 35, are under preparation
process and will be certified in the next years
confirming compliance with the global benchmark
for responsible water stewardship.
For more information on the initiatives where we
participate, please refer to E1 section.
E3.MDR-P_06
For the relevant policies’ access path to relevant
stakeholders please refer to E1 section.
E3-1_03, 10
As a beverage producer, we uphold stringent
quality standards to ensure sustainable
water sourcing. Our water treatment process
begins with treating raw water entering our
manufacturing facilities in compliance with
TCCC KORE standards, which often exceed local
regulatory requirements. Additionally, wastewater
discharged from our operations undergoes strict
monitoring to align with TCCC’s high-quality
standards and assure the treated water is
suitable for aquatic life.
To reinforce our commitment to sustainable water
stewardship, we implement comprehensive water
risk management practices, including mandatory
Source Vulnerability Assessments (SVAs) and
source water protection programmes across
all manufacturing plants. These measures
underscore our dedication to environmental
responsibility and sustainable practices.
E3-1_04, 05
We actively contribute to improving water
resources through investments in educational
initiatives, volunteering and community-based
projects aimed at reducing packaging pollution
in seas, oceans and rivers. Additionally, we
collaborate with governments and industries to
develop legal frameworks that promote economic
progress and landfill diversion. This includes
conducting packaging collection modeling studies
to identify the most effective solutions for each
market. We also support and advocate for public
policy interventions and technological innovations
that enable a circular economy for packaging – a
key concept in pollution prevention. In line with our
Packaging Waste Management Policy, we aim to
collect 75% of our primary packaging materials at
marketplace by 2025, which reduces potential
pollution events in soil and water.
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E3-2 Actions and resources related to water and marine resources
E3.MDR-A_01, 02, 03, 05 & E3-2_03
Table 21: List of actions in relation to water management
Time – reference
Scope of action
Progress of actions/
action plans disclosed
in prior periods
List of actions
Current
Planned
Duration until objective is
expected to be reached
Expected outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Source Vulnerability
Assessment (SVA)
2024
2024
(regularly)
All plants have
performed SVA
audits according to
the renewal calendar
(with five-year
frequency), with
reports and
mitigation plans
validated by CCH
and TCCC.
Comprehensive water risks
assessment performed by external
consultant, used to define strategic
priorities in water resource protection
and development, according to
our business needs, and local
environmental and society
water challenges.
Ensure sustainable
water supply for our
bottling operations.
Site audits by
external consultant
Own
operations
Europe, Asia,
Africa
Communities,
other water
users
All plants (100% or
60 bottling plants)
have undergone
the assessment.
The assessment
is repeated
every five years
on average.
Facility Water
Vulnerability
Assessment
(FAWVA)
2024
2024
(regularly)
All plants have
performed the
FAWVA renewal
in 2024.
Internal classification of all plants
according to water risk categories
(Leadership Locations, Advance
Efficiency Locations, Contributing
Locations), for which external
commitments are raised. This is
an internal (TCCC+CCH) water risks
assessment process, with 3-year
frequency. The outcome will be used
for the new external water goals (after
the completion of Mission 2025).
Prioritise plants
by water risks
categories, and
subsequently
define external
commitments for
each risk category.
Internal rigorous
water risk
evaluation, through
own developed
methodology,
including external
sources such as
WRI Aqueduct and
internal assessment
and data.
Own
operations
Europe, Asia,
Africa
Communities,
other water
users
All plants (100% or
60 bottling plants)
have undergone
the assessment.
The assessment is
repeated every 3
years on average.
Water Risk
Register
2024
2024
All plants have
performed the
yearly update of the
Water Risk Register
in 2024.
The Water Risk Register is the central
repository of all active and strategic
risks, to serve for better prioritisation of
the associated mitigation plans. During
the yearly update of the Water Risk
Register, all risks identified in SVA and/
FAWVA are re-evaluated for their current
status, and the risk level is updated.
Enable timely
implementation
of water mitigation
plans.
Internal risk
evaluation process,
targeting the
current and
strategic water
risk, focused on
business priorities.
Own
operations
Europe, Asia,
Africa
Communities,
other water
users
All plants (100% or
60 bottling plants)
have undergone
the assessment.
The assessment
is repeated on a
yearly basis.
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Time – reference
Scope of action
Progress of actions/
action plans disclosed
in prior periods
List of actions
Current
Planned
Duration until objective is
expected to be reached
Expected outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Certification of
plants according to
the AWS (Alliance for
Water Stewardship)
or ISO 46001
standard
2024
2025
The external AWS
certification was
achieved for all
plants (except newly
acquisition Lurisia,
Neresnica and
Egyptian plants) by
2023. In 2024, we
have started the
shift from AWS to
ISO 46001.
External recognition of our water
stewardship programme.
Reduction of water
consumption,
stakeholders
engagement and
improved reputation.
Site audits by an
external
independent body
Own
operations
Europe, Asia,
Africa
Communities,
other water
users
The external AWS
certification was
achieved for all
plants (except newly
acquisition Lurisia,
Neresnica and
Egyptian plants)
by 2023. In 2024
we started the shift
from AWS to
ISO46001. 25
plants certified in
2024, 35 plants
planned in
2025-2026.
True Cost of Water
(TCoW)
2024
2024
All plants are
expected to
calculate and
update yearly
the True Cost
of Water.
Convert the operational aspects of
water use such as water fees, utilities
and discharge costs and inherited
water risks of the local watershed, for
example the local economic value of
water, into the True Cost of Water.
Reduction of water
consumption, by
providing proper value
of water use into the
payback calculations
Calculation
of the TCoW,
based on own
methodology,
updated on
yearly basis
Own
operations
Europe, Asia,
Africa
Communities,
other water
users
Fully implemented.
100% of the plants
(60 bottling plants)
with implemented
true cost of water
and used for
decision making
Water Usage Ratio
(WUR) Targeting
Tool
2024
2024
All plants are
expected to
calculate the WUR
target according
to this tool, based
on the specific
manufacturing
complexity of
each plant.
Forecast the expected WUR for each
plant depending on the water-risk
category of the location and the
manufacturing complexity.
Reduction of water
consumption
Calculation
of the WUR
Targeting Tool,
based on own
methodology,
updated on
yearly basis
Own
operations
Europe, Asia,
Africa
Communities,
other water
users
Fully implemented
(100% or 60
plants).
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Time – reference
Scope of action
Progress of actions/
action plans disclosed
in prior periods
List of actions
Current
Planned
Duration until objective is
expected to be reached
Expected outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Water Maturity
Self-Assessment
Tool
2024
2025
All plants are
expected to perform
the Water Maturity
Self-Assessment,
in order to identify
the improvement
opportunities in terms
of capabilities and
water- efficiency
practices. The tool is
used in conjunction
with the TCoW
and Targeting
Tool, to provide
a comprehensive
system of water
saving opportunities.
Assess water stewardship capabilities
at plant level and the implementation
status of water efficiency practices.
Reduction of water
consumption
Calculation of the
Water Maturity
Self-Assessment,
based on own
methodology,
updated on
yearly basis
Own
operations
Europe, Asia,
Africa
Communities,
other water
users
Updated in 38
plants in 2024. The
rest of plants have
initiated the
update and the
process will be
finalised in 2025
Water use
optimisation for
cooling towers
2024
2025
Implemented in
2024
Reducing the water use for utilities.
Reduction of water
consumption
In-line monitoring
of flowrate and
chemical
parameters
of water use for
cooling towers.
Predictive
maintenance.
Own
operations
Africa
Communities,
other water
users
Fully implemented
in Ikeja plant
(Nigeria). Planned
for deployment in
all five plants in
Egypt in 2025
Commission of a
new water treatment
in the Sadat plant in
Egypt to increase
capacity and
improve water
efficiency
2024
2024
Implemented in
2024
Improved water treatment
conditions, setting the basis for
higher capacity and water reuse.
Reduction of water
consumption
Replacement
of the old water
treatment plant
with a new unit.
Own
operations
Africa
Communities,
other water
users
Project completed
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Time – reference
Scope of action
Progress of actions/
action plans disclosed
in prior periods
List of actions
Current
Planned
Duration until objective is
expected to be reached
Expected outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Integrating new
flowmeters and
updating water
maps for all plants
in Egypt
2024
2024
Implemented in
2024
Improved and accurate
flowrate monitoring.
Reduction of water
consumption
Accurate mapping of
the water
infrastructure.
Installation of
new flowmeters.
Setting up a
monitoring system
with improved
database.
Own
operations
Africa
Communities,
other water
users
Project completed
in all five plants, 67
flowmeters
installed
Water treatment
overhaul in Tanta
plant (Egypt)
2024
2024
Implemented in
2024
Improved reliability of water
treatment processes.
Reduction of water
consumption
Replacement of
sand and activated
carbon filtration
media.
Replacement of
reverse osmosis
membranes.
Own
operations
Africa
Communities,
other water
users
Project
completed.
Replacement of
reverse osmosis
membranes,
decreasing the
reverse osmosis
reject flow and
pressure, replacing
the sand carbon
filtration materials
Water treatment
upgrade in Oricola
plant, Italy
2024
2024
Implemented in
2024
Increased capacity of water treatment. Secure water use for
plant operations
Extended the water
treatment capacity
with additional
equipment
Own
operations
Europe
Communities,
other water
users
Project
completed. Water
treatment
capacity increase
by 50 m3/h
Raw water
treatment upgrade
in Asejire plant,
Nigeria
2024
2024
Implemented in
2024
Improved water treatment conditions,
setting the basis for higher capacity
and water reuse.
Reduction of water
consumption
Replacement of
traditional sand
filtration with
ultrafiltration
membrane system
Own
operations
Africa
Communities,
other water
users
The chemical
coagulation/
floculation plant
replaced by
submerged
membrane
filtration
Wastewater
treatment plant
upgrade in
Knockmore Hill
2024
2024
Implemented in
2024
Improved reliability of wastewater
treatment operations.
Maintain wastewater
compliance
Replacement
of worn-out
equipment
Own
operations
Europe
Communities,
other water
users
Project
completed.
Installation of new
aeration
membranes,
aspirating mixers
and monitoring
instrumentation
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Time – reference
Scope of action
Progress of actions/
action plans disclosed
in prior periods
List of actions
Current
Planned
Duration until objective is
expected to be reached
Expected outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Implementation of
community water
projects to help local
communities
2024
2025
All 19 projects are
expected to be
completed by 2025
as part of Mission
2025 goals
Secure water availability, increase
water resilience
Help secure water
availability in all
areas with water
risk; engaging with
communities and
other stakeholders to
increase the awareness
of water protection
measures; access to
fresh drinking water
for local communities;
establishing water
stewardship
partnerships with
local and international
organisations.
Implemented water
stewardship
projects in Italy,
Bulgaria, Multon
Downstream Europe, Asia,
Africa
Local
Communities,
NGOs,
municipalities
Roadmap 2024
implemented and
16 water
stewardship
projects in
communities
executed. More
projects planned
in 2025
Engagement with
WWF on Living
Danube partnership
2024
2030
2024-2030
Enhanced climate resilience through
improved watershed health in the
Danube River, delivering benefits for
nature and people.
Establishing
water stewardship
partnerships with
local and international
organisations;
engaging with
communities and
other stakeholders
to increase the
awareness of water
protection measures.
River, floodplain and
wetland restoration;
collective actions on
watershed; improved
land and water use
at suppliers/farmers
level; awareness
raising and
communications
Upstream and
downstream
Europe
NGOs,
suppliers, peer
companies,
municipalities,
communities
Kick-off of three
innovative
interventions in
Hungary, Romania
and Bulgaria;
agreed roadmap
for each of them
Perform an update
of the Risk
Assessment for
Group Critical Tier 1
suppliers by using
WWF Water Risk
Filter
2024
2024
Implemented in
2024
Update of the suppliers with sites in
water risk
Engagement in the
value chain
Perform an
update of the Risk
Assessment for
Group Critical Tier 1
suppliers by using
WWF Water Risk
Filter
Upstream
Global
Suppliers
Fully implemented.
100% of the Group
critical suppliers
are with updated
information on
WWF WRF
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E3.MDR-A_04
We have implemented comprehensive mitigation
actions and monitoring processes across all our
plants to minimise potential impacts on water
resources resulting from our operations.
Additionally, a robust monthly monitoring and
tracking system is in place to identify and record
any environmental non-compliances, violations
or fines across all facilities. This information is
systematically reported to senior management
on a quarterly basis. In 2024, we reported four
minor notices of violations related to wastewater
or water (three in Egypt and one in Northern
Ireland), all of those with zero fine (€0).
E3.MDR-A_07
We allocate funds every year to implement our
action plan related to water management, both
Capex and Opex. In 2024, we invested €5.2 million
of Capex for projects related to water optimization
and wastewater treatment upgrades, with the
largest projects in Egypt, Italy and Ireland. We also
allocated around €0.5 million on Opex to cover
the ISO 46001 certification of 20 production sites,
to perform Source Vulnerability Assessments
(SVAs) and to support water stewardship and
water community projects.
While our accounting practices do not separately
classify sustainability-related investments or
costs, we apply an internal process to identify
Capex directly linked to relevant initiatives.
This approach enables us to track investments
in priority areas, such as water efficiency
initiatives, primarily for monitoring and
strategic planning purposes.
The Capex and operating expenditure mentioned
above are reflected in our financial statements, as
part of the overall amounts reported in the cash
flow and income statement respectively.
Moving ahead, we will continue to support our
action plan on water management as required.
To support our actions, financial resources
must be secured through targeted allocation.
Our sustainable finance approach underpins the
Group’s ability to align funding strategies with
sustainability commitments, while supporting the
UN SDGs and the EU Environmental Objectives.
Financing mechanisms include a diverse range
of instruments, ensuring flexibility in meeting
both current and future financial requirements
for action plans.
In particular, Coca-Cola HBC Egypt has been
awarded, in July 2024, a $130 million loan
by the European Bank for Reconstruction
and Development (EBRD) to finance capital
expenditures and working capital requirements.
This loan will also support the Group’s investment
in people development and sustainable business
practices in Egypt. A $0.75 million complementary
grant from the Global Environment Facility (GEF)
has been secured to promote the implementation
of advanced wastewater treatment technologies
and water management systems in Egypt. These
future investments are designed to meet EU and
local discharge standards and further the Group’s
long-term environmental goals.
Further details on financial instruments are
available in Note 25, p.306.
E3. MDR-A_09, 12
Target 1: Achieve a 20% reduction in water
usage in plants located in water-risk areas
by 2025 vs 2017.
Actions: In 2024, water usage reduction plans
were implemented across operations, water
stewardship programmes were deployed in
water-priority locations to mitigate shared water
risks, and source vulnerability assessments were
updated for all plants. Plans were refined, including
the identification of additional capital investments
required for infrastructure enhancement.
Environmental KPIs monitoring and reporting
mechanisms are integrated across all facilities. In
2025, further innovations will be implemented to
reduce water usage, particularly in water-priority
locations, including additional improvements in
Egyptian plants.
• Capital Expenditure: In 2024, €5.2 million were
invested in water sustainability initiatives.
Target 2: Ensure water availability for all
communities in water-risk areas, with a target
completion year of 2025.
• Action: By 2024, we executed 16 water
community projects in our water priority
locations. In 2025, we plan to perform new
projects in Nigeria and Greece, and continue
having community benefits from the
current projects.
Target 3 (rolling target): Constantly assure that
our wastewater meets either the local regulatory
standard or TCCC KORE standards, whatever is
more stringent.
• Action: Constant monitoring of the
parameters, upgrade and expansion of the
wastewater facilities, building a new facility
in Sadat plant in Egypt.
Target 4 (rolling target): Assure water
stewardship/water management certification in
each plant (either Alliance for Water Stewardship
(AWS) or ISO 46001).
• Action: Recertification every three years.
Target 5 (annual target): Decrease water usage
ratio per litre of produced beverage by at least 1%
in 2024 vs 2023.
• Action: Deploying water successful practices,
according to the TCCC Water Maturity Self-
Assessment tool, which is an integral part of
our water stewardship programme, requested
to be fulfilled and updated on a yearly basis by
every bottling plant. The TCCC Water Maturity
Self-Assessment tool contains a list of 48
water-saving practices, with a proper library
of details and implementation tips, which
has to be assessed by every plant. Examples
of recommended water-saving practices
are: reuse of package rinsing water, reuse
of sand filters and carbon filters backwash,
water recovery from in-line instruments, dry
lubrication of conveyor belts, cooling towers
blow-down frequency, etc.
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Metrics and targets
E3-3 Targets related to water and marine resources
E3.MDR-T_01-07, 09, 13 & E3-3_03, 09
For all bottling operations, we have implemented the ISO 14001 Environmental Management System, which encompasses comprehensive risk assessments, well-defined operational procedures, and a
commitment to continuous improvement. One of our core objectives is to maintain ISO 14001 certification across all production facilities, as this serves as a testament to the effective and responsible
environmental management of our operations. In 2024, 100% of production volume is certified against ISO 14001. Further targets related to water can be found in the table below.
Table 22: List of targets’ progress
Targets
Type of target
Target
duration
Baseline
Target to be
achieved
2024 status
Alignment with
international initiative
Description of target
Planning to achieve the target
Reduction in water
usage (withdrawals)
per unit of production
in water priority areas
Relative
2017-2025
(9 years)
1.97
20%
reduction
(1.57)
1.84
Water Resilience
Coalition
Our target is to decrease water usage per
production unit (litre of beverage produced)
in water priority areas by 20% by 2025 vs
2017. The measurement is litre of water
usage (withdrawal) per litre of
beverage produced.
In order to achieve the objective for the target year, we
have implemented a solid investment and optimisation plan,
with progressive improvement for 2024 and final efficiency
improvement in 2025. This is mainly covering the big
production sites, such as the bottling facilities in Greece,
Bulgaria and Nigeria. For each critical location, we have
introduced site-specific end-to-end water assessments,
which resulted in identification of water-saving opportunities
and subsequent Capex/Opex allocation plan.
Number of
implemented
water stewardship
projects in water
risk communities
(help secure
water availability)
Absolute
2017-2025
(9 years)
2
19 water risk
locations
16
Water Resilience
Coalition
Our target is to help secure water availability
in all water risk (water priority) locations.
Those are 19 locations across 7 of our
countries (e.g., in Greece, Cyprus, Bulgaria,
Nigeria, Armenia, Italy). We count the water
stewardship projects there which tackle the
specific local context (local risk). Those 19
locations are defined after detailed risk
assessment by using the WRI Aqueduct
Water Risk Atlas and WWF Water Risk
Filter data.
We have executed projects in 16 of water priority locations
so far out of 19. Examples of those projects: In Nigeria, in
collaboration with the Kano State Water Board and local
communities, we have invested in new water wells and
installed new pipes to transport water from the Challawa
River – this provides clean water to one million people; In 2023,
we built sanitation and water facilities in Benin, Kano, Lagos,
Maiduguri and Owerri. In Greece, since Q4 2022, two projects
started: in Heraklion (Zero Drop with GWP-Med) to facilitate
the use of treated wastewater for irrigation in collaboration
with the municipality and in Schimatari for water reuse in
collaboration with NGO. In 2024 we started a project for water
supply capacity increase in Bulgaria.
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Targets
Type of target
Target
duration
Baseline
Target to be
achieved
2024 status
Alignment with
international initiative
Description of target
Planning to achieve the target
Constantly assure that
our wastewater meets
the local regulatory
standard or TCCC KORE
standards, whatever is
the stringent
Absolute
Yearly
2009
Continuous
100%
Water Resilience
Coalition
Assure that every manufacturing plant
meets the criteria for wastewater
treatment and treat the wastewater to
the levels supporting aquatic life either via
investment in own wastewater treatment
facility or by joining municipality (or private)
treatment facility.
Constant monitoring of the parameters, upgrade and
expansion of the wastewater facilities, building a new facility
in Egypt.
Assure water
stewardship/water
management
certification in each
plant (either Alliance
for Water Stewardship
(AWS) or ISO 46001)
Absolute
Yearly
2015
Achieve
100% of
plants to be
certified and
maintain
continuously
25 plants
out of 60
beverage
plants; the
remaining
35 are in a
preparation
process
Water Resilience
Coalition
Assure water stewardship/water
management certification in each plant
(either Alliance for Water Stewardship
(AWS) or ISO 46001)
2026 and recertification every 3 years
Decrease water usage
ratio per litre of
produced beverage
Relative
Yearly
2023
(prior
year as it
is rolling
target)
At least 1%
reduction vs
2023
1.78
Water Resilience
Coalition
Decrease water usage ratio per litre of
produced beverage by at least 1% in 2024
vs 2023
Deploying water successful practices, according to the TCCC
Water Maturity Self-Assessment tool, which is an integral part
of our water stewardship programme, requested to be fulfilled
and updated on a yearly basis by every bottling plant. TCCC
Water Maturity Self-Assessment tool contains a list of 48
water-saving practices, with a proper library of details and
implementation tips, which has to be assessed by every plant.
Continuous process of water savings implementation.
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E3.MDR-T_10, 11 & E3-3_01
We set measurable, outcome-oriented and
time-bound targets for water stewardship,
grounded in the TNFD framework and aligned
with the UN SDGs. All of the targets are voluntary.
We follow a three-step process to ensure our
targets are scientifically sound and relevant.
These targets are developed through a
structured, inclusive and scientifically sound
process. The approach begins with identifying
key areas where our operations depend on or
impact water resources, with a focus on high-risk
geographies identified through comprehensive
risk assessments. These water-risk, or water-
priority locations face specific challenges such
as water scarcity, limited access to water and
sanitation services for local communities,
and declining water quality within watersheds.
Evidence-based evaluations of water-related
risks and opportunities guide our actions to
ensure they are beneficial to local ecosystems.
Lastly, we have initiated our engagement with
the SBTN. Notably, SBTN has recently updated its
methodology, and as a result, we plan to establish
our freshwater targets in alignment with their
framework in the next years.
Stakeholder engagement is pivotal to this
process, particularly through Annual Stakeholder
Forums and frequent meetings with local
communities, farmers, municipalities, NGOs and
primary sugar and sweetener suppliers to address
critical environmental topics, including water
footprint, water usage, emissions reduction and
deforestation. The insights gathered from these
engagements, along with the expectations of ESG
raters and investors, inform the formulation of
ambitious, data-driven targets, such as reducing
water usage and replenishing water resources
in high-risk locations. Additionally, the Group
prioritises initiatives such as water-replenishment
activities, nature-based solutions, wetland
restorations, and improvements to water
quality in these regions. Collaborating closely
with stakeholders and local communities,
we strive to ensure access to safe, clean water,
while addressing water-related challenges
through sustainable water management
across our operations.
E3-4 Water consumption
E3-4_01-07, 11
Table 23: Water consumption performance
Parameters
Unit
Performance
(2024)
Water withdrawal
m3
30,894,756
Total water consumption
m3
18,239,702
Total water consumption in areas at water risk, including all areas of
high-water stress
m3
9,415,396
Total water consumption only in areas of high-water stress
m3
6,470,879
Total water recycled and reused
m3
1,680,670
Total water stored and changes in storage
m3
0
Changes in storage
m3
0
Water withdrawal is measured using flowmeters installed in any of the water source we use, while water
consumption is calculated as the difference between withdrawal and discharged wastewater. Primary
data on water extraction, categorised by source, is collected on a monthly basis. Progress towards
water usage targets is monitored regularly using specialised software, ensuring accurate and timely
tracking of performance. Monthly reviews with the management at local plant, country and Group
level are performed to monitor performance and actions.
Following the ESRS definition on water risk, we have 29 plants located in areas with certain water risk (lack
of clean water and sanitation (WASH) for communities, water quality, reputational risk, high-water stress).
Out of them, 20 plants are situated in watersheds with high-water stress as per the latest version of the
WRI Aqueduct tool. For example, one of those watersheds is the Asopos River basin in Greece where
we implement water replenishment activities in collaboration with the local municipality and NGOs.
As per our internal evaluation, considering the local site-specific context, done for our Mission 2025
commitments, 19 of our plants are designated as priority plants, located in areas facing challenges
related to basin water quantity, water quality or WASH (water, sanitation and hygiene) for communities.
E3-4_08, 10
Table 24: Water intensity index
Intensities
Total water
consumption
(m3)
Net revenue
(million EUR)
Production
(million litres)
Performance
(2024)
Water intensity per net revenue
18,239,702
10,754.4
–
1.696 l/EUR
Water intensity per units of production
18,239,702
–
15,974.9
1.142 l/lpb
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ESRS E4 –
Biodiversity
and ecosystem
SBM-3 Material impacts, risks and
opportunities and their interaction with
strategy and business model
E4.SBM-3_05
Through our double materiality assessment, we
have identified a material impact within our
upstream value chain specifically related to land use
change. However, no material impact has been
identified in relation to soil degradation,
desertification, or soil sealing.
E4-1 Transition plan and consideration of
biodiversity and ecosystems in strategy and
business model
E4-1_01
Protection of biodiversity and ecosystems is one of
our main sustainability priorities. Our biggest impact
on the biodiversity landscape occurs in the upstream
segment of our value chain, and it is related to the
potential deforestation (land use change) from some
agricultural commodities, mostly wood (used for
our paper packaging materials). We are committed
to eliminate deforestation of our main ingredients
by 2025, and it is aligned with the
recommendations by the Science Based Targets
initiative (SBTi) for companies with Forest, Land
and Agricultural Activities (FLAG). Due to FLAG
recommendations we have updated our net zero
plan as stated in ESRS E1.
Also, in our Principles for Sustainable Agriculture
(PSA), we have requirements related to
deforestation, and our target is to achieve 100%
sustainable sourcing by 2025. We voluntarily report
the sites which are adjacent to legally protected
areas, and for all of them we have a confirmed ‘no
negative impact’ by an external expert which
performs so-called Source Vulnerability Assessment
for all the water sources we use in direct operations.
In 2022, we published our biodiversity statement
where we set a goal to achieve a net positive impact
on biodiversity in critical areas in our operations and
supply chain by 2040 and eliminate deforestation in
our supply chain by 2025.
The time horizons we use are defined as follows:
short-term (2024), medium-term (2025-2030),
and long-term (2031-2050).
E4-1_02
Environmental risks at supplier level, including
deforestation risk, are mitigated through our robust
programme at procurement level. We annually review
the risks and performance of all our suppliers against
our SGPs, PSA principles for agricultural ingredients,
Water Risk Assessment, as well as other equally
important aspects that impact our business, such
as supply risk and financial stability. Overall, it is
important to point out that sustainability is one of
the key criteria in supplier selection under strategic
sourcing, as well as a criterion for the Annual Supplier
Review process that we conduct cross-functionally
across our supply base.
In more detail, to ensure that suppliers demonstrate
ESG requirements’ compliance we rely on multiple
screening and assessment practices that offer us
a holistic view of their performance. This means we
collect primary and secondary data that we combine
together and analyse to identify priority areas for
critical to our operations suppliers. The Sustainable
Agriculture programme secures ESG monitoring
through PSA certification process of the Coca-Cola
System across our main agricultural commodities.
For the remaining supply base, we have designed a
robust assessment journey leveraging ESG physical
audits, as well as a number of globally recognised
screening and assessment tools such as EcoVadis IQ
Plus, EcoVadis Assessments, SEDEX, WWF Water
Risk Filter Assessment, Resilience Event Watch,
Exiger and Moody’s Analytics. Additionally, annual
Supply Base Assessments are carried out by
specialist consultants for Group Critical suppliers.
These assessments evaluate Tier 1 and Tier 2
suppliers on various criteria, including water risk,
climate change, forced labour, child labour, labour
rights, biodiversity, and financial risk.
In case of any risk identified, the supplier is asked to
provide an action plan which is monitored regularly.
For deforestation, we have a specific project in place
where we perform readiness assessment for all our
supplier under the requirements of EUDR and we
are currently organising our internal process to
ensure we are able to assess risks and take
necessary actions on an on-going basis from the
moment that EUDR is formally introduced as of 1st
of January 2026. While EUDR is covering specific
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commodities, we are proactively collecting
deforestation information from all agricultural
ingredients suppliers across all our countries in
order to have a holistic view of the exposure and
potential risk. By the end of 2025, we will have a
programme in place to cover any identified gaps.
Last but not least, we are in process of implementing
a deforestation tracking platform on top of any other
activities already in motion, which will also be ready
before the end of 2025.
E4-1_03, 04, 05
The Intergovernmental Science-Policy Platform
on Biodiversity and Ecosystem Services (IPBES) has
identified five pressures on nature: 1) land/water/sea
use change, 2) resource exploitation, 3) climate
change, 4) pollution and 5) invasive species. In
2023, we undertook the mapping and materiality
assessment on biodiversity across our value chain
and we assessed those pressures following the
SBTN guideline step 1 and 2. We have collected all
our activity data, covering: 1) upstream activities
(volumes sourced and origin of raw materials), 2)
direct operations (consumption of water and
energy of all sites), and 3) downstream (packaging
distribution by country). Then we translated the
activity data into pressures on nature across five
metrics. These pressures on nature were weighted
by local nature vulnerability indicators assessing
the state of nature in the locations where the
activity occurs. Time horizons used in the analysis
are as described in E4-1_01. We considered in the
assumptions the tighter environmental regulations
(e.g., EUDR), carbon pricing policies which would
include land conversion activities, deforestation-free
commitments from suppliers, and climate risks (e.g.,
water scarcity, extreme weather events).
The result shows that the biggest impact we
have is in upstream activities, mainly agricultural
suppliers and their impact on land-use change
or deforestation. Our procurement strategy to
purchase certified raw materials that meet our
PSA and our goal of achieving deforestation-free
supply chain, support mitigation of the impact
and also reduce any potential risk that may occur.
E4-1_06
Relevance to stakeholder engagement is
described in E4.MDR-T_11.
E4-2 Policies related to biodiversity and
ecosystems
E4.MDR-P_01 & E4-2_01, 20
We have adopted policies that address
deforestation and sustainable land practices. Our
overarching goal for biodiversity is to achieve a net
positive impact on biodiversity in critical areas in
supply chain by 2040 and eliminate deforestation in
our supply chain by 2025.
Besides, we have set our Environmental Policy,
the main objective of which is to minimise the
environmental impact of the Group, and the
Biodiversity Statement, the objective of which
is to enhance biodiversity by reducing emissions
and water use, by preserving and reinstating water
priority areas, and by sourcing agricultural
ingredients sustainably.
Moreover, through the Biodiversity Statement,
CCHBC is committed to promoting sustainable
forest management and helping protect
woodlands from deforestation and illegal
harvesting.
For the monitoring process, please refer to
ESRS E1 section, as it constitutes the standard
procedure applicable to all relevant topics.
Our policies support biodiversity conservation,
sustainable land management, and responsible
sourcing. We are committed to achieving a net
positive impact on biodiversity in critical areas
by 2040 and eliminating deforestation in our
supply chain by 2025. Thus, our policies address
ecosystem protection, sustainable forest
management, and mitigation of environmental
impacts. We recognise the importance of
biodiversity for long-term resilience, as our Natural
Capital Impact Study and Source Vulnerability
Assessments (SVA) help identify key dependencies
and risks, while sustainable sourcing practices
mitigate transition risks. We implement traceability
mechanisms through certifications, verification
schemes, and supplier requirements aligned with
The Coca-Cola Company’s Principles for
Sustainable Agriculture and EcoVadis assessments.
Moreover, our policies prioritise collaboration with
NGOs, communities, and industry stakeholders
to ensure sustainable supply chains that respect
human rights, promote responsible land use,
and protect natural ecosystems.
E4.MDR-P_02
The policies are applicable across all geographies
where Coca-Cola HBC operates. Among the
affected stakeholder groups, farmers, other
suppliers and local communities associated with
the Group’s upstream value chain, are most
significantly impacted.
E4.MDR-P_03
Policies/statements related to environment
(including biodiversity) are approved and endorsed
by the Social Responsibility Committee of the
Board of Directors, and they apply to all Coca-Cola
HBC employees, regardless of level and function.
E4.MDR-P_04 & E4-2_02
In June 2022, we joined the SBTN Corporate
Engagement Program. We will continue working to
implement the SBTN’s guidance, in order to map
and assess the material impacts on biodiversity
of our critical commodities and suppliers and
then set science-based targets in priority areas.
E4.MDR-P_05
We engage with a broad range of stakeholder
groups for biodiversity, including our communities,
governments, NGOs, investors and suppliers,
taking into account their recommendations in
the process of setting biodiversity-related policy.
For more information, please refer to E1 section.
E4.MDR-P_06
The Environmental Policy and the Biodiversity
Statement are publicly available at our site
(Policies | Coca-Cola HBC), which affected
stakeholders can easily access.
E4-2_03
The critical areas in our supply chain are defined
based on the material dependencies that we
have in relation to biodiversity, for example the
provision of water, agricultural raw materials
and wood.
E4-2_04
We started mapping all our operations and critical
commodities/suppliers. For our sustainability
assessment, we use the risk-based approach
with the support of our partners (EcoVadis).
Transparency and traceability of material supply
chains is established through certifications/
verification schemes or by ensuring suppliers
have robust traceability of supply that meets our
expectations (please see ‘Supplier Engagement,
Verification and Assurance’ from TCCC Principles
for Sustainable Agriculture). Also, we regularly
measure and report on the progress made against
our Mission 2025 commitments, and all other
commitments, including those related to
biodiversity and deforestation. The annual
performance is disclosed in our Annual Report and
the GRI Content Index, verified by an independent
auditor, and published on our website.
E4-2_05, 06, 07, 18
We are committed to sourcing 100% of our
key ingredients in line with the Principles for
Sustainable Agriculture as set out by TCCC. These
principles protect and support biodiversity and
ecosystems, uphold human and workplace rights,
ensure animal health and welfare, and help build
thriving communities. They apply to primary
production, i.e., at farm level, and form the basis
for our continued engagement with Tier 1
suppliers to ensure sustainable long-term supply
at a lower environmental impact. This extends in
particular to the sections Conservation of
Forests, Conservation of Natural Habitats,
Biodiversity and Ecosystems, Soil Management
and Agrochemical Management.
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Metrics and targets
E4-3 Actions and resources related to biodiversity and ecosystems
E4.MDR-A_01, 02, 05 & E4-3_01
Table 25: List of key actions and resources in relation to biodiversity
Time – reference
Scope of action
Progress of actions/
action plans disclosed in
prior periods
List of actions
Current
Planned
Expected outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Application of
mitigation
hierarchy
Quantitative and qualitative
information
Biodiversity impact
and risk assessment
Yes
Yes, it
continues
in 2025
Identify CCH’s most material
impacts on nature and where
they occur in the value chain
Prioritise a shortlist of key
contributors by location for
target setting
Net positive impact
on biodiversity in
critical areas in our
operations and
supply chain
by 2040
Use of the SBTN methodology.
Assessment of the three steps
of the value chain.
Set targets for water replenishment.
Entire value
chain
Global
Suppliers,
NGOs,
communities,
own
employees,
regulators
Avoidance
Completed step 1
and 2 of the SBTN
methodology
Collaborate with
suppliers to develop
plans to address land
conversion risks and
develop an appropriate
monitoring system
to measure
deforestation
at supplier level
Yes
Yes, it
continues
in
2025-
2026
The amount and % of our
main commodities which
are deforestation-free
Eliminate
deforestation in
our supply chain
by 2025
Continue collaboration with main
agricultural suppliers; cross-functional
work for assuring compliance with the
EU DR
Upstream
Global
Suppliers,
NGOs,
regulators
Avoidance,
Minimisation
Meetings with
main sugar suppliers
performed in 2024;
meetings with
software provider
for geo-satellite
monitoring and
deforestation
monitoring done
Biodiversity action
near our Tylicz plant
in Poland
Yes
Yes, it
continues
in the next
three
years
Minimise negative impact and
enhance river’s biodiversity
Net positive impact
on biodiversity in
critical areas in our
operations and
supply chain by 2040
Fish stocking of the Muszynka River near
our Tylicz plant in Poland; two clean-up
activities near plant and on riverbanks
Own
operations,
downstream
Poland
Nature,
communities,
local
municipality
Reducing,
restoring
3,000 common trout
released in three
river locations;
400kg waste
collected
Issue Biodiversity
Whitepaper
Yes
2025
Publish CSR Europe Alliance
Biodiversity Whitepaper
Build awareness
and collaborate with
industries and other
stakeholders
Work with other industry players from
CSR Europe, NGOs and other partners
to publish ‘How companies in Europe
address biodiversity: Learning from
disclosure’ Whitepaper
Downstream Europe
Other
industry
players,
NGOs,
regulators
Transform
Whitepaper
published in
February 2025
At this stage, we have not utilised biodiversity offsets or incorporated specific indigenous knowledge into our actions. Our approach is grounded in best practices, scientific knowledge and in the collaboration with our suppliers.
For water stewardship projects that also impact biodiversity, please see ‘Table 21: List of actions in relation to water management’ on page 106.
E4.MDR-A_03
Our biodiversity journey started in 2022. Our actions are work in progress as we follow the SBTN guidelines, and they are also in dynamic development phase. Our water replenishment activities will continue at least until
2030. Deforestation actions will continue beyond 2025.
E4.MDR-A_04
Every site adjacent to legally protected areas has Source Vulnerability Assessment, which shows no negative impact on biodiversity.
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E4.MDR-T_01-07, 09, 13 & E4-4_06, 07, 09
E4-4 Targets related to biodiversity and ecosystems
While the action plan described above is essential to our sustainability strategy, there are no significant Capex or Opex to disclose for the related initiatives. Our Group’s treasury strategy ensures the availability
of financial resources to support related initiatives. By leveraging a diversified range of financing mechanisms, we can effectively address both current and future priorities.E4.MDR-T_01, 02, 03, 04, 05, 06, 07,
09, 13 & E4-4_06, 07, 09
Table 26: List of targets’ progress
Targets
Type of target
Target
duration
Baseline
Target to
be
achieved
2024 status
Alignment with
international initiative
Geographical scope
Description of target
Mitigation hierarchy
Relation of target to
identified material impacts
Planning to achieve the target
Eliminate
deforestation
in our supply
chain
Absolute
2025
2020
(cut-off
year)
100%
Sugar/juices
are 96%
(certified)
Regulation on
Deforestation-free
Products (EU DR).
Global Biodiversity
Framework’s ‘30x30’
conservation target.
Main
commodities
(sugar/juices), and
critical for
biodiversity ones,
global scope
Eliminate
deforestation in our
supply chain
Avoidance,
minimisation,
restoration
Land use ecosystem
change
100% certification for
sugar/juices in 2025; In the
EU we focus on full EU DR
compliance (coffee and
paper/wood) in 2025
100%
sustainable
sourcing
Absolute
2025
2017
100%
96%
(excluding
Multon
Partners
Juices)
FAO Good
Agricultural
Practices; ILO
Main
commodities
we use, global
scope
Achieve 100%
adherence to the
PSA in main
agricultural
commodities
Avoidance,
minimisation,
restoration and
rehabilitation,
compensation or
offsets
Land use ecosystem
change
In 2024, we have 100%
sustainable sourcing for
our main agricultural
ingredients in Europe.
Plan to achieve 100% in
Africa in 2025.
No assumptions are used to define targets. We have considered the critical areas and commodities based on the risk assessment. We took into consideration the best global practices and guidelines such as the
SBTN, FAO Good Agricultural Practices, ILO and EU regulations. Targets are monitored quarterly by obtaining information from suppliers for their sustainable certifications. The amount of procured quantity of
raw materials certified is divided by the total procured volume for the raw materials in scope. Current status is as per the initial plans. Targets are set for the upstream part of the value chain due to the biggest
impact there.
E4.MDR-T_10 & E4-4_05
The targets set are in line with the Kunming-Montreal Global Biodiversity Framework and its mission to halt and reverse biodiversity loss to put nature on a path to recovery, and they are aligned with EU 2030
Biodiversity Strategy, where the goal for protecting 30% of land in the EU is stated as well as with the EU Regulation on Deforestation-free Products (EU DR).
E4.MDR-T_11
Stakeholder engagement plays a pivotal role in this process, particularly through our Annual Stakeholder Forums, where key discussions take place, and the insights gathered are integrated into the formulation
of our targets. Also, during the supplier sustainability events we organise regularly, we discuss different ESG aspects, including biodiversity and deforestation. Additionally, the Group takes into account the
requirements of ESG raters, including those of our investors, ensuring that our targets are aligned with their evolving expectations. Moreover, we have conducted several meetings with our main sugar and
sweeteners suppliers where we discussed environmental topics, among them the deforestation issue.
E4-5 Impact metrics related to biodiversity and ecosystems change
E4-5_04
Our operations are primarily based in cities, so we do not have a direct impact on biodiversity and ecosystem change. The impact is linked to Tier 2 and 3 suppliers in the upstream part of the value chain, specifically
concerning agricultural ingredients and primarily paper/ wooden materials.
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Sustainability Statement continued
ESRS E5 –
Resource use
and circular
economy
Impact, risk and opportunity management
E5-1 Policies related to resource use and
circular economy
E5.MDR-P_01
Packaging plays a vital role in keeping our products
fresh and safe. Sustainable packaging and waste
management are important to our business, given
the amount of packaging we use, the variety of
pack materials we use and the need to recover
and recycle them after consumption.
E5-1_03 & E5-1_04
Beverage packaging has value and life beyond its initial
use, and we believe that it should be collected and
recycled into a new package as part of a circular
economy. To deliver this vision, we own, invest in and
take responsibility for collected packaging material
as members of authorised recovery organisations.
Our commitments
E5.MDR-P_01 & E5.MDR-P_04
We are committed to continually improving
our environmental performance in the areas of
packaging and packaging waste. Since packaging
remains critical for us, as already stated through
our DMA, and thus we have adopted the ‘Packaging
Waste Management Policy’. This policy includes
objectives relevant both to packaging materials
and packaging waste, and as all our environmental
policies, it considers the ISO 14001 Environmental
Management System and the GRI Standards.
E5-1_01 & E5.MDR-P_01
Our Packaging Waste Management Policy commits
to collect the equivalent of 75% of our packaging for
recycling or reuse by 2025, use 35% recycled PET
(rPET) by 2025 in our PET bottles, and in the EU
countries, our objective is to reach 50% rPET by 2025.
We also are committed to have 100% recyclable
by design primary packaging materials and
to invest in recycling infrastructure and new
technologies that enable increased usage
of recycled content in our packaging, where
technically and economically feasible.
E5-1_03 & E5-1_04
Additionally, for our engagements regarding
recyclability and recycled packaging, we have
included targets relevant to:
• Collection: Recover 75% of our primary
packaging for recycling or reuse by 2025.
• Eliminate Unnecessary Packaging: Building
on the extensive light-weighting programme
delivered over the past decade, we will continue
to light-weight our primary packaging towards
‘best-in-class‘ bottles and cans in each
market, while innovating to remove shrink
film from multipacks.
• Expand Reusable Packaging: Deliver
programmes to increase reusable packaging
from 12% of transactions sold in ‘returnable’,
and 4% in ‘dispensed,’ formats.
• Reduce Virgin Plastic: Through the increased
use of circular PET (rPET), light-weighting,
removal of plastic film and expansion of reusable
packaging formats.
• Innovation: Deliver new sustainable packaging
solutions through partnerships and R&D.
• Inspire and Engage Consumers: Use the power
of our brands to encourage consumers to recycle.
E5-1_02 & E5.MDR-P_02
Furthermore, under the umbrella of our Biodiversity
Statement, as already mentioned in the ESRS E4 –
Biodiversity and ecosystem, sustainable sourcing
of packaging is also taken into account. We aim
to source all our paper-based primary packaging
materials from sustainable forest sources. All our
paper bricks we use are FSC-certified.
The scope of our commitments is to improve
the circularity of our packaging and to avoid
packaging waste, which in turn contributes to better
environmental performance. Among the key areas
we focus on, and relevant to the materiality analysis,
is the circular economy. We take action to improve
packaging sustainability, including its recycling into
new packages and measuring, evaluating and
sharing progress across regions and stakeholders,
providing the respective transparency.
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Sustainable packaging
E5.MDR-P_02 & E5.MDR-P_01
We seek to minimise the overall amount of packaging
that we use. Together with our suppliers and partners,
we are working to design more sustainable packaging
and take action to ensure that our packaging doesn’t
end up as waste.
The big amount of packaging we use for our finished
products, if not collected and recycled properly,
would end up in the soil, in the rivers and then in the
seas and the oceans, which could have a negative
impact on ecosystems, human health (toxicity)
and society.
Packaging waste and climate change are
interconnected global challenges, and an area
of focus for businesses and communities. 34%
of our value chain emissions come from packaging
materials, and to achieve our NetZeroby40
emissions goal we invest in sustainable packaging
solutions. When we light-weight our packaging,
incorporate more recycled and bio-based
material, invest in local recycling programmes and
increase our use of reusable packaging, we reduce
both waste and our GHG emissions.
Transparency
E5.MDR-P_06
All our policies and commitments are publicly
available via our website. By having the policies
publicly available, we inform all our stakeholders
of our goals and, where needed, we ensure their
involvement, as happens with the ‘Packaging Waste
Management Policy’, which applies to all Coca-Cola
HBC employees, regardless of level and function. All
our policies are translated in the local language of our
countries and available on their local websites as well.
E5.MDR-P_05
Additionally, every year, we perform an annual
materiality survey, and we ask more than 500
stakeholders from different stakeholder groups
across all our 29 markets and beyond to help us gauge
our sustainability agenda and priorities. During our
Annual Stakeholder Forums, we discuss the most
important ESG areas for our business, and we set
actions to improve both our stakeholder engagement
and our performance. With suppliers, we have
sustainable supply events where we gain their views
on how to collaborate in the area of sustainability.
Throughout the year, we proactively monitor and take
into consideration the requirements by different
ESR raters and frameworks; also we perform
regular calls with sustainability experts of investors,
banks and other financial institutions.
E5.MDR-P_03
The Corporate Social Responsibility Committee
of the Board of Directors is responsible for
establishing the principles governing the
Group’s policies on social responsibility and
the environment (including packaging waste)
to guide management’s decisions and actions.
All our policies, such as our Packaging Waste
Management Policy, are owned and endorsed
by the Corporate Social Responsibility Committee
of the Board of Directors. Sustainability SteerCo
at ELT level is responsible for developing and
implementing policies and executing the strategies
to achieve the Company’s social responsibility and
environmental goals.
Further details regarding our sustainability
governance are available in GOV-1 ‘The role of
the administrative, management and supervisory
bodies’ and on our website.
E5-2 Actions and resources related to resource
use and circular economy
E5.MDR-A_01, 02, 03, 05 & E5-2_08
The objectives from the Packaging Waste
Management Policy require continuous
improvement and progress. Therefore, each year we
strive to improve our performance by establishing
new actions and working on the existing ones.
Packaging can only be circular if it is recyclable.
Since 2022, 100% of our primary packaging – PET,
glass, aluminium and aseptic cartons – has been
recyclable by design. We achieved this milestone
three years ahead of our 2025 target. We are also
leading industry efforts to introduce effective
and efficient collection systems in all our markets.
These include Deposit Return Schemes (DRS)
in most of our EU markets. Therefore, we work
with governments and industry to create a legal
framework in which economic progress and
diversion of material from landfill can be achieved.
For the reporting year, we focused on different
pillars, and we worked with specific focus on each
of them. These pillars include:
• Recyclability
• Recycled packaging
• Eliminate unnecessary packaging
• Expand reusable (returnable) packaging
• Packaging collection
Stakeholder engagement
E5-2_07 & E5-2_09
For the implementation of all actions, the
contribution of our stakeholders was of utmost
importance. Collective actions are important when
systemic changes are required and we have
established strong relationships with our main
stakeholders.
In December 2024, we welcomed 167
stakeholders, including our suppliers, to our
Annual Stakeholder Forum, themed ‘Harnessing
a Circular Economy for Packaging’, to explore what
actions are needed to help deliver this objective.
Additionally, together with our suppliers and
partners, we are working to design more
sustainable packaging and take action to ensure
that our packaging doesn’t end up as waste.
Each year, we host a supplier innovation day where we
engage with key partners and potential new suppliers
in the area of sustainable packaging. Previous to
the reporting year, we have piloted and then scaled
technologies that now allow us to replace plastic
film on multipacks with carton solutions, such as the
KeelClip™ roll-out, the cardboard holder for cans
multipacks, and process non-food grade ‘hot washed’
PET flakes to produce high-quality food-grade rPET.
Furthermore, since 2022, we started an ongoing
collaboration with the University of Portsmouth,
to investigate the potential commercialisation
of technologies and processes for the enzymatic
recycling of PET. This co-funded research project
is exploring new applications for bio-recycling
enzymes that could have the potential to promote
packaging circularity at industrial scale.
As already stated, in countries where effective
collection systems do not exist, we are working
together with peers and governments to design
and implement new systems. Such cases are our
alliance with the Food and Beverage Recycling
Alliance (FBRA) in Nigeria and our partnership
with the recycler BariQ in Egypt.
A new approach to promotional displays has been
piloted with our customer Żabka, a large chain of
convenience stores in Poland. This new system
only requires the customer to change the
branding of our products in stores – not the
display units themselves. This means that our
customer retains a high-quality display, and we
save money on transport and production costs.
This collaborative initiative created commercial
value for us and for our customers while reducing
waste and cutting down on CO2 emissions.
Lastly, we are members of the European
Organisation for Packaging and the Environment
– EUROPEN and UNESDA Soft Drinks Europe.
EUROPEN is the voice of the packaging supply
chain industry in Europe on topics related to
packaging and the environment. This membership
provides us the opportunity to understand the
challenges of the wider packaging supply chain
(from producers of packaging all the way to
recyclers) and to work with governments and the
European Commission around issues. The role of
EUROPEN within the circular economy is to:
a) continuously improve the environmental
performance of packaging and packaged
products all along the supply chain;
b) promote the role, functionalities and benefits
of packaging within all relevant EU policies; and
c) achieve a harmonised policy framework and a
functioning EU internal market for packaging
and packaged products.
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Sustainability Statement continued
UNESDA Soft Drinks Europe enables us to talk with one voice and discuss with governments and the EU as a whole matters relating specifically to the soft drinks sector. With UNESDA, we also have set
commitments for circular packaging which the corporate members have committed to achieving, thus enabling improved overall sectoral approach to circular packaging, including recycled content targets,
collection and recyclability ahead of legal requirements.
Table 27: List of key actions and resources in relation to circular economy
Time – reference
Scope of action
Progress of actions/
action plans disclosed in
prior periods
List of actions
Current
Planned
Time
horizon of
action
completion
Expected
outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Recyclability – 100% of our primary packaging and using alternative packaging materials
Maintained KeelClip™ as a
carton-based solution that
removes plastic shrink film
previously used to hold
can multi-packs together,
in 23 countries, helping
us to reduce our plastic
packaging footprint
2024
–
Ongoing To reduce
environmental
impact (water
and soil) and
reduce waste
(Avoid 2,300
tonnes of
plastic shrink
annually)
Supports the delivery of our
packaging waste
management policy
objectives:
• Innovate to minimize the
amount of packaging that
we use, while ensuring
that the packaging
that we do use is as
sustainable as possible
• Provide sustainable
packaging options
meeting consumers’
needs
Production and packaging:
Maintain solutions and
continue innovate
Own
operations &
Downstream
Europe
(23 countries)
Consumers,
Customers,
Communities
Progress as per
the plan
Maintained QFlex carton-
based solution that removes
plastic shrink film previously
used to hold large multi-
packs cans together in
Ireland and Northern Ireland,
helping us to reduce our
plastic packaging footprint
2024
–
Ongoing
Ireland,
Northern
Ireland
Lite Pac launch & expansion
in other markets
2024
–
Ongoing Removal of
135 tonnes of
plastic from
our supply
chain annually
Austria
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Time – reference
Scope of action
Progress of actions/
action plans disclosed in
prior periods
List of actions
Current
Planned
Time
horizon of
action
completion
Expected
outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Recycled Packaging
In-house rPET production
and transitioning to 100%
rPET locally produced
portfolio
2024
-
Ongoing To reduce
virgin and
increased
recycled
plastic
content in our
packaging
Supports the delivery
of our packaging waste
management policy
objective:
• Continue to increase
recycled content in
our primary beverage
packaging, with an
emphasis on PET
beverage bottles
• accomplishment of the
Mission Target 2025 to
35% rPET usage
Production & Packaging
Own
operations
&
Downstream
Switzerland
Italy
Austria
Romania
Republic
of Ireland
Northern
Ireland
Consumers,
Customers,
Communities
23.8% compared
to 16.1% (in 2023);
45.9% in EU
countries and
Switzerland
Eliminate unnecessary packaging
Light-weight our primary
packaging
(Aluminum Cans)
2024
-
2024
To reduce
weight of
materials used
(decrease
emissions)
Reduction of waste,
NetZeroby40
Design optimisation to reduce the
weight of Cans bodies and ends
Upstream,
Downstream
Ireland,
Czech
Republic,
Egypt,
Greece,
Serbia
Customers,
Consumers,
Suppliers
Can body:-1.9%
average reduction;
Can end: – 9.8%
average reduction
in material
Light-weight our primary
packaging (Preforms) and
Test in 5 new markets before
introducing it to our 2025
portfolio
2024
-
2024
To reduce
weight of
materials used
(decrease
emissions)
Reduction of waste,
NetZeroby40
Design optimisation to reduce weight
of preform
Upstream,
Downstream
Bulgaria,
Czech
Republic,
Poland and
Baltics
Customers,
Consumers,
Suppliers
Average reduction
in material is under
calculation
2025
2025
Replacement of tethered
closures with lighter option
2024
-
2024
To reduce
weight of
HDPE used by
300 tonnes
and
to decrease
CO2 emissions
by 600 tonnes
Reduction of waste,
NetZeroby40
Design optimisation to reduce weight Upstream,
Downstream
Ireland, Italy,
Bulgaria,
Austria,
Hungary,
Romania,
Bosnia,
Czech,
Lithuania,
Poland,
Serbia,
Cyprus
Customers,
Consumers,
Suppliers
0.3% reduction in
closure weight
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Time – reference
Scope of action
Progress of actions/
action plans disclosed in
prior periods
List of actions
Current
Planned
Time
horizon of
action
completion
Expected
outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
Label height reductions
2024
2025
2025
To reduce
weight of
plastic used by
200 tonnes
Reduction of waste,
NetZeroby40
Design optimisation to reduce weight Upstream,
Downstream
Greece,
Cyprus,
Poland & Italy
Customers,
Consumers,
Suppliers
Progress made as
per the planned
activities
Expand Reusable (Returnable) Packaging
Usage of returnable and
refillable glass, and
dispensers such as fountains
or freestyle machines
2024
-
Ongoing To reduce
environmental
impact (water
and soil) and
reduce waste;
Decrease
emissions in
scope 3 and
help achieving
our net zero
emissions goal
Expand Reusable
Packaging:
• Deliver programmes
to increase reusable
packaging (returnable
and dispensed) formats
• Reduce packaging
amount in absolute
terms.
Continue the implementation of Pack
Mix of the Future initiatives, focused
on expanding RGB across markets
setting our vision for profitable
growth while reducing CO2 footprint
Activated Packageless pilot in leading
university in Italy. Replicable
programme envisioning packageless
campus
Downstream
Europe and
Africa
Consumers,
Customers,
Communities
Refillables 12.7% in
2024 from 11.7% in
2023*
Packageless stable
at 4.3%*
*Transactions in
NARTD excluding
N. Macedonia
Increase packaging collection
Continue to actively engage
with governments and peer
companies to establish and
ensure that effective
operation of Extended
Producer Responsibility (EPR)
Organizations, including
Packaging Recovery
Organizations (PRO) and
Deposit Return Schemes
(DRS).
2024
-
Ongoing To reduce
environmental
impact (water
and soil) and
decrease
plastic waste
Supports the delivery of our
packaging waste
management policy
objectives:
• Work through cross-
sector packaging
associations to develop
and support effective
waste management and
packaging collection
solutions
• Enhance the efficiency
and effectiveness
of established post-
consumer packaging
waste management
organisations
Participated in the supervisory board
of EPR organizations in 16 of our
countries, providing strategic
direction and support
Downstream Bosnia,
Bulgaria,
Czech,
Estonia,
Italy, Latvia,
Lithuania,
Moldova,
North
Macedonia,
Poland,
Ireland,
Romania,
Serbia,
Slovakia,
Slovenia,
Switzerland
Communities,
Governments,
Customers,
Peer
Companies
Progress made in
line with roadmap
plans to achieve
our 75% collection
target by 2025. We
ensured ongoing
implementation of
our policy objective
to ensure effective
packaging waste
management
activities are in
place across our
markets.
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Time – reference
Scope of action
Progress of actions/
action plans disclosed in
prior periods
List of actions
Current
Planned
Time
horizon of
action
completion
Expected
outcomes
Achievement of policy
objectives & targets
Activities
Value chain
segment
Geographical
boundaries
Affected
stakeholders
Quantitative and
qualitative information
We support well-designed
deposit return schemes
(DRS) in our European
markets, wherever an
effective alternative
doesn’t already exist.
As of 2024, eight of our
markets now have DRS in
place to assist in the design
and implementation
of new national DRS in
each of these countries.
2024
2028
By 2028
To reduce
environmental
impact (water
and soil) &
Decrease
plastic waste
Fulfill our Mission 2025
target of 75% collection of
primary packaging by 2025
Deliver EU collection
targets of 90% separate
collection for PET and
beverage cans by 2029
Played a critical role in the successful
launch of new DRS in Romania,
Ireland and Hungary
Established a new DRS operator
in Poland (Kaucja.pl) with CCHBC
as a shareholder to support the
successful launch of DRS in Poland
in 2025
Made preparations for the successful
Jan 2025 launch of DRS in Austria
Actively participated in a cross-
industry coalition that offered
advice and strategic input to the
Greek government on DRS, while
developing a business plan for the
application for a DRS operator licence
Downstream Croatia,
Estonia,
Hungary,
Latvia,
Lithuania,
Republic of
Ireland,
Romania and
Slovakia. We
are engaging
proactively in
Austria,
Bulgaria,
Cyprus,
Czech
Republic,
Greece,
Moldova,
Northern
Ireland,
Poland,
Serbia and
Slovenia
Communities,
Governments,
Customers,
Peer
Companies
2024 roadmap and
plans implemented
(including launches
in Ireland, Romania
and Hungary)
A clear action plan
for 2025 aligned
and approved by
senior
management
(including DRS
launches in Austria,
Poland and Greece)
Development of EPR
schemes in countries where
it is not mandatory in order to
reduce the downstream
pollution
2024
2028
2028
To reduce
environmental
impact (water
and soil) and
reduce waste,
increase
packaging
collection
Fulfill our Mission 2025
target of 75% collection of
primary packaging by 2025
We continued to support the
work of the Food and Beverage
Recycling Alliance (FBRA) and other
packaging collection projects
Open the first-ever Coca-Cola
System-owned and operated
packaging collection hub
Downstream Nigeria
Consumers,
Customers,
Communities,
Peer
companies
Progress made in
Egypt and Nigeria
as per the plan
Continue working with BariQ in Egypt
Egypt
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E5.MDR-A_04
As seen, we have established a comprehensive
action plan and implemented several actions
related to circular economy and packaging. By
those actions, we demonstrate our support to
nature and to people independently on whether
they are harmed or not. In 2024, no negative
incident related to circular economy has
been recorded.
Financial Resources
E5.MDR-A_06, 07, 09, 11
Specifically, to support our actions related to
the expansion of reusable/refillable packaging,
we make investments every year for the renewal
or increase of the returnable containers fleet. In
2024, this investment reached €59 million. We also
invested €9.5 million in production infrastructure,
mainly for new returnable glass production lines
in Italy and Nigeria.
In addition, we invest significant amounts to
support our action plan around the increase
of recycled content in our packaging, specifically
by expanding the use of recycled PET. Building
on the significant in-house rPET production
infrastructure investments we have made in the
past few years in Italy, Poland and Romania, we
allocated €30 million in 2024 to support the higher
cost of recycled PET compared with virgin PET.
The Capex and cost of packaging materials
mentioned above are reflected in our ‘Financial
Statements’, in the cash flow statement and the
income statement, respectively.
Moving ahead, we will continue to support
our circular economy action plan as required.
Specifically for 2025, we plan to continue our
investments in production infrastructure in Italy
to support the RGB expansion in the market, and
we will allocate significant Capex on returnable
containers across our markets.
We also expect that the higher spend for recycled
PET compared with virgin PET will increase further
to approximately €60 million, as we accelerate our
performance against our Mission 2025 target, but
also due to the EU requirement for a 25% minimum
recycled content on PET beverage bottles.
To support our actions, financial resources
must be secured through targeted allocation.
Our sustainable finance approach underpins the
Group’s ability to align funding strategies with
sustainability commitments, while supporting the
UN SDGs and the EU Environmental Objectives.
Financing mechanisms include a diverse range of
instruments, ensuring flexibility in meeting both
current and future financial requirements for
action plans.
Metrics and targets
E5-3 Targets related to resource use and
circular economy
E5-3_01
We have set voluntary targets that promote circular
economy, and they are designed to address both
resource inflows and outflows, and the lifecycle
of products and materials.
E5-3_02
Our objective is to keep our primary packaging
100% recyclable by design. Therefore, we have
established a target related to circular product
design, which is already achieved. We have made
our primary packaging 100% fully recyclable three
years ahead of the expected timeline and 2025
target. For us, recyclability is calculated as
technical recyclability by design, and here we
consider all beverage packaging which is made of
glass, aluminium/steel, PET and aseptic cartons.
All of those are able to be recycled fully. We
consider as technical recyclability by design any
reuse or recycle option for those materials. In the
definition, we do not take into consideration the
packaging collection rates in every country.
E5-3_03 & E5-3_04
Our resource inflows targets focus on the
continuous improvement of recycled material use.
They have a double role, since by increasing their
recycled content, the rates of primary raw materials
decline. The targets refer to the recycled PET used
for plastic bottles. Furthermore, we aim to remove
an additional 2,800 tonnes of our light-weight
packaging by 2025 compared with 2023 data.
E5-3_05 & E5-3_09
As already stated, we aim to source all our paper-
based primary packaging materials from sustainable
forest sources. Now, 100% of our paper bricks
(aseptic carton) we use are FSC®-certified. Driven by
the materiality results, and focusing on the material
topics, our targets address the prevention layer
(including the reduction) of the waste hierarchy
pyramid, as well as recycling and recovering.
Returnable glass bottles address reuse layer
of the waste hierarchy.
E5.MDR-T_01
The majority of those targets are connected
with the Packaging Waste Management Policy
and reflect total Group targets. To track our
performance and our contribution to the final
target, every year we set a yearly target as an
annual milestone.
E5.MDR-T_12
For our targets we use actual data to report the
progress, e.g., for recyclability we use the technical by
design data of our primary packaging materials (glass,
PET, aluminium/steel can, paper, aseptic paper).
Our time horizons could be an annual goal aligned
with the Business Planning process (BP), mid-term
targets aligned with our long-range plan (LRP) and
business objectives, or long-term targets such as
NetZeroby40 aligned with the external trends.
All those targets, however, are disaggregated to
annual roadmaps, and our regular performance
review is two-pronged:
a) versus the annual roadmap; and
b) versus the direction of the target year.
On this way, we are able to set actions and correct
course if needed.
E5-3_01 & E5-3_09 & E5.MDR-T_02 –
E5.MDR-T_08
Table 28 below provides further details on each
target, including their characteristics (targets’
level, their units, their time-boundaries, the
progress made over the baseline measurements),
illustrating how they contribute to our overall
sustainability goals and circular economy
principles. Targets are voluntary.
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Table 28: List of targets
Targets
Type of target
Target
duration
Baseline
and
Baseline
number
Target to be achieved
Value chain and
geographical boundaries
2024 status
Alignment with
international initiative
Stakeholders
Involvement
Planning to
achieve the target
Relation to waste
hierarchy
Recyclability by
design
Relative in %
2018-2025
(8 years)
2017
(99%)
100% of consumer packaging to
be recyclable
Upstream/Global
Percentage of recyclable by
design materials from main
packaging used in 2024: 100%
Sustainable
Development Goal
8, 9, 11, 12, 14 & 17
Suppliers
2025
Recycling
Light-weight
Packaging
Absolute in
tonnes
2023-2025
2023
Remove 2,800 tonnes of
packaging through light-weighting
our packaging
Own operations/
Global
Continue implementing best in
class packaging weight
Suppliers,
Customers
Prevention
(Reduce)
PET used from
recycled PET
and/or PET
from renewable
material
Relative in %
2018-2025
(8 years)
2017
(9%)
35% of PET used from
recycled PET and/or PET from
renewable material
Upstream & Own
Operations/Global
23.8% rPET (placed on the
market in 2024)
Suppliers,
Customers
2025
Recycling
50% of PET used from
recycled PET and/or PET from
renewable material
Upstream & Own
Operations/EU
countries and
Switzerland
45.9% rPET (placed on the
market in 2024)
Suppliers,
Customers
2025
Zero Waste
partnerships (city
and/or coast)
Absolute
2018-2025
(8 years)
2017
(0)
Engage in 20 zero waste
partnerships (city and/or coast)
Downstream/Global
20 out of 20 zero waste projects
NGOs, Communities,
Local municipalities
2025
–
Collection rate
of our primary
packaging placed
on the market
Relative in %
2018-2025
(8 years)
2017
(41%)
Help collect the equivalent of 75%
of our primary packaging
Downstream/Global
57% оf primary packaging placed
on the market in 2024 (including
Egypt);
Excluding Egypt, the amount is
58%
Government
and Regulators,
Peer companies,
Customers,
Suppliers, NGOs
2025
Recycling
Coca-Cola
System-owned
& operated
packaging
collection facility
Absolute in
tonnes
2025
2024
Collect 1,000 metric tonnes of
packaging materials
Downstream/Nigeria
In 2024, together with TCCC,
the Coca-Cola system-owned
packaging collection facility was
completed
NGOs, Communities,
Local municipalities.
Government and
Regulators, Peer
companies
>2025
Recycling
Paper Bricks
Absolute in %
Continue
(rolling
target)
n/a
Source all our paper-based
primary packaging materials from
sustainable forest sources
Upstream/Global
100% of our paper bricks (aseptic
carton) used are FSC-certified
Suppliers
>2030
–
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E5.MDR-T_12 & E5-3_13 & E5.MDR-T_01
We have not changed any of our targets, as
for us any sustainability target means to deliver,
to execute – an opposite of an aspirational target.
The Single Use Plastics Directive, which was
introduced after our 2025 commitments, applies
only to EU Member States. However, we have
voluntarily extended these commitments to
include our other markets, ensuring they
reflect our entire value chain.
E5-3_13 & E5.MDR-T_09
The Single Use Plastics Directive imposed in 2019
a 77% separate collection target of PET beverage
bottles by 2025 and a recycled content target of
25% in PET beverage bottles. For our collection
targets, these were set in 2018, following a previous
commitment of 40% total packaging collected by
2020, which we had already overachieved in 2018.
For 2025, we have set ambitious targets as an
average for all our markets.
Not all markets are in the EU, therefore the 75% on
average was much more ambitious than the Single
Use Plastic Directive or any other local targets.
The Single Use Plastic Directive also only defines
collection for PET bottles whereas we are going
beyond this, including all our primary packaging
(such as glass bottles and aluminium cans). For
recycled content, this is also above Single Use
Plastic Directive targets for 2025.
E5.MDR-T_13
We have specialised software to monitor and review
for each of our ESG goals/targets, and we report
monthly the actual performance and status (if we
are on track, lagging behind or partly on track) to the
members of the ELT who are accountable for the
respective KPIs. The actuals are easily available in our
EDGE dashboards. Quarterly, the performance and
the related actions to achieve the annual goals are
reported to the Social Responsibility Committee
of the Board of Directors.
E5.MDR-T_10 & E5.MDR-T_11
We have also involved our stakeholders in the
process of target-setting. We use the industry
best practices for setting the targets and clearly
describe the calculations and methods used in our
internal guidebooks. Feedback by NGOs, industry
associations such as UNESDA, and suppliers,
but also strategic initiatives such as the UN SDGs,
are considered.
Stakeholder engagement is pivotal, particularly
through Annual Stakeholder Forums and frequent
meetings with all relevant stakeholders (NGOs, peer
companies, customers, municipalities). The insights
gathered from these engagements, along with the
expectations of ESG raters and investors, inform
the setting of ambitious, data-driven targets.
E5-3_08
We strive to minimise food loss and food waste in our
operations. Our target to tackle food waste and loss
across our activities and operations is: to decrease
our absolute food losses (in dry matter) by 30%
by 2025 compared to our 2019 baseline despite
volume growth, an increase in portfolio/beverage
categories, and expansion to emerging markets,
and further reduce by 40% by 2030 vs 2019.
Food loss and waste at our manufacturing sites
are part of the overall waste management
process. We strive to reach 100% recycled waste
and zero waste to landfill in manufacturing. We
have reduced the percentage of manufacturing
waste going to landfill significantly: in 2024, only
1.6% of our manufacturing waste went to landfill,
while in 2015 it was 10.1%. This means in 2024
98.4% of total manufacturing waste was recycled
or used for alternative usage..
E5-4 Resource inflows
E5-4_01
Resource inflows, relevant to upstream activities and reported within this chapter, take into account the
results of the materiality analysis. This analysis has identified packaging inflows as a material topic.
Our packaging inflows include different streams of packaging, such as:
• Plastic, which is used for plastic bottles, closures, HDPE/LDPE bottles, labels and stretch/shrink films;
• Glass, which is used for glass bottles;
• Metal, which are used for aluminium cans and metal crowns; and
• Paper, which is used for paper labels, composite aseptic carton, cardboard and wood pallets).
All data relevant to our packaging inflows quantities that we used during the reporting period is
disclosed in the following table.
E5-4_02 – E5-4_05
Table 29: Material Inflows Indicators
Parameters
Unit
2024
The overall total weight of products (beverage+packaging)
Tonnes
20,382,929
The overall total weight of technical materials used
(ingredients + packaging materials)
Tonnes
2,143,227
Total Plastic
Tonnes
427,749
PET (bottles)
Tonnes
346,143
Plant-Pet
Tonnes
0
Plastic (closures + HDPE/LDPE bottles)
Tonnes
30,268
PE (labels and stretch/shrink films)
Tonnes
51,338
Total Glass
Tonnes
193,285
Glass (Bottles)
Tonnes
193,285
Total Metal
Tonnes
80,508
Aluminium (cans)
Tonnes
73,608
Metal (crowns)
Tonnes
6,900
Total Paper
Tonnes
153,133
Paper (labels)
Tonnes
1,318
Composite carton (Tetra Pak, bricks)
Tonnes
26,232
Cardboard
Tonnes
72,788
Wood (pallets)
Tonnes
52,795
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Sustainability Statement continued
1. Excluding water.
Parameters
Unit
2024
The weight of secondary reused or recycled components
used to manufacture CCHBC’s products and services
(including packaging)
Tonnes
199,648
The weight of secondary reused or recycled components
used to manufacture CCHBC’s products and services
(including packaging)
Percentage
23% out of total
packaging materials
The weight of secondary intermediary products
used to manufacture CCHBC’s products and services
(including packaging)
Tonnes
0
The weight of secondary intermediary products
used to manufacture CCHBC’s products and services
(including packaging)
Percentage
0
The weight of secondary materials used to manufacture
CCHBC’s products and services (including packaging)
Tonnes
0
The weight of secondary materials used to manufacture
CCHBC’s products and services (including packaging)
Percentage
0
Data Methodology
E5-4_06
The data derives from direct measurements, detailing each material that enters our operations. The
data is based on the purchased volume we use either for the manufacturing of our packaging (only in
the in-house rPET plants) or for the packaging which is being supplied from external suppliers. The data
relevant to recycled content for the packaging is based on our suppliers’ data, and then we calculate the
weighted average based on the amount purchased by each of those suppliers.
E5-4_08
We ensure that there is no overlap or double
counting between the categories of reused and
recycled materials.
Reusable glass bottles are reported only with
the new number of bottles purchased in the
respective year. We have invoices and number
of purchasing orders with the respective amount
purchased for all materials that are entering in
our plants.
In our systems, we have master data of each
material which is part of the product recipe,
meaning that for each of our produced products,
we know how much material we have used.
The same for resource outflows – we know
the exact amount of every ingredient and
packaging material used in any sold products.
Reusable packaging is not reported to the
Packaging Recovery Organisations (PROs) for the
floating volumes (i.e., all the bottles in circulation).
We report only the new quantities of bottles
purchased each year. This approach assumes
that new bottle purchases are not solely due to
increased volume but also because some reusable
bottles were not collected and ended up in the
recycling stream. Additionally, once reusable
bottles reach the end of their lifespan, they will
eventually become waste and be recycled.
So, we avoid double counting by only reporting
to the PROs the new quantities purchased each
year, and not the whole floating (or in circulation)
volume related to reusable/refillable glass bottles.
E5-5 Resource outflows
Outflows
Resource outflows are another material topic for
us.
E5-5_01
We are committed to incorporate more circular
principles in our production processes, and for that
purpose we have implemented key actions and
innovations. Now, five of our water brands are sold in
100% rPET bottles: Romerquelle (Austria, Czech
Republic, Slovakia, Serbia, Croatia and Slovenia),
Deep RiverRock (Republic of Ireland and Northern
Ireland), Valser (Switzerland), Dorna (Romania)
and Natura (Czech Republic and Slovakia).
Switzerland was also our first country to move
its entire locally produced PET portfolio to 100%
rPET. This was followed by Italy1 and Austria,
and in 2023, Romania, the Republic of Ireland and
Northern Ireland also transitioned to 100% rPET
for the locally produced PET portfolio. In addition,
since 2023, Romania successfully combined a
100% rPET local bottle portfolio, an in-house rPET
facility and a Deposit Return Scheme, helping us
close the loop for plastic packaging circularity.
We continue our use of recycled shrink film
in Ireland, where our Deep RiverRock water
multipacks are packaged in Reborn®, a fully
recycled plastic film made from post-industrial
and post-consumer waste. We are exploring
opportunities to launch Reborn® in other markets.
Our corrugated cardboard packaging in Europe
contains >80% recycled content, while our
composite paper carton packs, KeelClip™,
Qflex and LitePac Top, are 100% FSC-certified.
Our wooden pallets are 100% reusable.
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E5-5_04
As mentioned, we ensure that our packaging
includes recyclable content. For 2024, the overall
recyclable content rate of our packaging is 100%.
We do not engage in the production or
commercialisation of durable plastic goods and/or
components, including those made from mixed
materials. Additionally, we do not produce goods
with an expected usage period exceeding three
years. Our beverages, in particular, have a
significantly shorter expected usage period,
defined by their shelf life which is between four
and 12 months.
Extended Producer’s Responsibility
E5-5_18
We make strong efforts to ensure that our products,
especially their packaging materials, will not end up
as waste. We prove our engagement in product
end-of-life waste management, since, as mentioned
earlier, we support the foundation of effective and
efficient collection systems in all our markets.
We are leading industry efforts to introduce DRS
across the majority of our EU countries. In 2024,
we played a pivotal role in the successful go-live
of new DRS in Romania, Ireland and Hungary.
Well-designed DRS have a proven track record of
delivering very high collection rates, typically over
90%, once the schemes reach maturity. We are
encouraged by the results from year 1 in Romania,
where the scheme was delivering an average return
rate of 76% for all in-scope containers across the
last three months of the year. Additionally, our
teams in Austria, Poland and Greece have been
making intensive preparations to support
successful DRS launches in 2025. These extensive
preparations include the development of DRS
business plans, the establishment of a new DRS
administrator company in Poland, as well as the
extensive internal planning to ensure that
DRS-compliant packaging is available to the
consumer on shelf in time.
Coca-Cola HBC is also heavily involved in EPR
systems in 25 of our countries, and members of
the supervisory board in 16 of these countries.
Extended producer responsibility is a policy
approach that holds producers accountable for
their products throughout the entire lifecycle,
including the post-consumer stage. Further
information is available at Ε5-2 ‘Actions and
resources related to resource use and
circular economy’.
Data methodology
E5-5_06
The relevant data used is sourced mainly from
direct measurements, which are taken from our
production and operational records. Products are
classified as designed along circular principles if
they are recyclable by design. This means that the
packaging is compatible with waste management
and processing, including collection, sorting,
recycling and the use of recycled materials to
replace primary raw materials.
We know the exact amount of every ingredient and
packaging material used in any sold products. For
packaging collection data, we have a calculation
methodology document which details step by
step how the data is collected. We report to our
collection systems the amounts of packaging per
type of material placed on the market. They then
report back to us via emails and reports how much
equivalent packaging was collected for recycling
– this is validated following the Packaging Recovery
Organisation’s (PRO’s) own external auditing
processes. This is done per material type, both
for primary and for secondary/tertiary packaging.
If packaging materials contain the amount of
the same material coming from post-consumer
waste, they are with recycled content. The
percentage of recycled content in our products
and packaging is determined based on actual data
from our suppliers and on what we have been
using in our production.
E5-6 Anticipated financial effects from
material resource use and circular economy-
related risks and opportunities
E5-6_02, 03, 04
Given the potential impact that significant changes
to our packaging mix could have to longer-term
capital investment in production and distribution,
and the influence that packaging has on our ability to
meet our NetZeroby40 commitments – packaging
represents over 30% of our emissions – managing
the risk and opportunity associated with sustainable
packaging directly impacts and is impacted by our
future business strategy. It is closely linked with
the ‘Managing our carbon footprint’ risk, which is
covered in detail under ESRS E1 ‘Climate change’.
During 2024, we continued building on our Pack
Mix of the Future vision. The development of
a profitable packaging strategy aims to reduce
our environmental impact, address escalating
stakeholder concerns relating to packaging waste
and takes into account new EU regulations such as
the EU Directive on packaging and packaging waste.
Initiatives such as increasing the use of recycled
and refillable packaging and decarbonisation in the
packaging industry contribute significantly to our
journey towards NetZeroby40.
Based on the 2024 quantification of this risk we
expect higher cost of packaging materials, mainly
rPET, aluminium and glass. The quantification was
performed by applying the projected carbon price
per packaging material under different climate
scenarios to the corresponding packaging
emissions as per our glidepath to 2040.
These financial effects are anticipated to arise
in the mid to long term. While the timing remains
uncertain, we are aligning our strategy with the
evolving market conditions.
Failing to respond to consumers’ concerns about
packaging could also impact our reputation and
consumer base, potentially leading to revenue
losses for products that do not meet sustainability
standards. Other challenges associated with
packaging relate to dependencies on sourcing
sustainable materials from suppliers, and to the
increasing regulatory focus on impacts to natural
ecosystems caused by packaging waste.
E5-6_05 & E5-6_06
Our assessment shows we do not have any
product at risk in the short-, medium- or long-
term horizon. For the assessment of products
at risk, the same time horizons as those used in
the Double Materiality Assessment were applied,
as presented in the E1.IRO-1_05.
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Strategy
SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model
S1. SBM-3_01, 02, 03, 04, 06, 11
At Coca-Cola HBC, all employees and non-
employees within our workforce who could
be materially impacted by our operations are
included in the scope of the disclosures under
ESRS 2. This includes addressing impacts
arising from our own operations, our value
chain, our products and services, and our
business relationships.
Αctual impacts on our workforce, such as secure
employment, adequate wages, health and safety,
gender equality, training, and diversity guide our
strategic decisions by enabling us to implement
targeted initiatives, ensuring that we create a
supportive work environment that meets the
needs of our employees, who are the most
important asset and support us in achieving
our business objectives.
While non-employees are considered in the
materiality assessment, they are not included in all
social KPIs (e.g., basic salary male/female, gender
equality KPIs). Number of non-employees is minor
compared to all employees.
Types of employees and non-employees
We provide the following information regarding
the types of employees and non-employees in
our own workforce subject to material impacts
by our operations:
Types of employees
Permanent employees are individuals who have
an indefinite employment contract with Coca-
Cola HBC. This means there is no end date
specified in their contract. These employees are
paid through the Company’s payroll and enjoy the
stability and benefits associated with long-term
employment. They are integral to our operations
and contribute to the continuity and growth of
our business.
Temporary employees, on the other hand,
have a definite employment contract with Coca-Cola
HBC. Their contracts specify an end date, indicating
the temporary nature of their employment. Like
permanent employees, temporary employees are
also paid through the Company’s payroll. They play
a crucial role in supporting our operations during
peak periods, special projects or when specific
expertise is required for a limited time.
Types of non-employees
Non-employees at Coca-Cola HBC are individuals
who work for the Company but are not directly
employed by us. They do not receive compensation
through the Company’s payroll and do not have
a direct contract with Coca-Cola HBC. These
non-employees can either be self-employed or
employed through a third-party agency. Despite
not being on the Company’s payroll, they actively
participate and contribute to Coca-Cola HBC’s
processes, and they follow all our standards,
which are also part of their contract.
Non-employees are considered part of our own
workforce in general:
• They are provided by a third party (e.g., an
employment agency) but work under our
direct control, following our instructions,
schedules and operational guidelines.
• They are self-employed individuals
contracted to work directly for us and
are integral to our operations.
Our negative impact
We strive to achieve zero occupational health
and safety incidents, and potentially every
accident affects individually the person injured.
In 2024, we reported 1 fatality in Egypt and 0.30
Lost Time Accidents per 100 full-time employees
(FTEs) in our workforce. All health and safety-
related incidents are being investigated locally by
cross-functional teams of experts from different
departments. Steps taken for the investigations
are based on 14 internal investigation principles
which are published in our Incident Management
Investigation document. The investigation teams
use a Structured Problem-Solving methodology,
including Fishbone analysis and five WHY principles.
ESRS S1 – Own
workforce
Social information
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After the incident investigation, a one-page
lessons learned document is created and shared
locally with all respective teams. It serves as a
tool for learning and prevention of similar incidents
in the future. This document is published on a
special internal platform for knowledge sharing,
accessible for all.
Brief description of the activities that result
in the positive impacts
Contribution to employment
In 2024, we employed 33,018 FTEs in 29 countries.
In 2019, for the first time, we developed our Group
socio-economic impact study (SEIS) by aggregation
of the data from all local SEIS reports, which is
regularly updated. Together with TCCC, in all our
territories we support more than 501,982 indirect
jobs throughout our value chain. This means that
with every job in our system, we create an
additional 13 jobs in the value chain, and we
contribute approximately €14.41 billion in value
added annually.
Accessibility to a living wage
In every country, all employees earn at least the
minimum wage. People and Culture function
monitors wage levels to ensure they are
competitive relative to the industry and local labour
market. This includes the lowest paid employee
categories, such as junior line operators and
entry-level merchandisers. We regard our external
reporting segments as key operational areas, which
also form the basis of financial consolidation. On
average, junior line operators and merchandisers
earn approximately 1.2 times the local minimum
wage in our Established markets, approximately 1.9
times in our Developing markets and approximately
2.2 times the local minimum wage in our Emerging
markets. The range of ratios is similar for both male
and female employees.
Improved health, safety and wellbeing
The health, safety and wellness of our employees
is one of our top priorities. That is why we looked
for new approaches to wellbeing and employee
support which was easily accessible to our employees
in our plants, offices or when working remotely.
Two of the initiatives, which focused on the mental
wellbeing of our employees, were the introduction
of the Employee Assistance Programme (EAP),
with the organisation of a session focused on
resilience and stress management led by a
professional counsellor from this programme
and the launch of a dedicated mental-wellbeing
platform, a wellbeing framework, centred around
physical, mental, financial and social wellbeing,
to provide our people with the resources needed.
We also continue to provide our framework for
health and dependent care and offer a range
of flexible working arrangements.
As part of our internal health and safety
management system, all employees (100%)
receive mandatory safety training. No employee
is allowed to start working for CCHBC without
completing this mandatory safety training.
Access to education
All our employees are part of the numerous training
materials and education programmes. We provide
learning and development opportunities for all
our employees (in all our activities), reflecting a key
pillar of our people strategy, which is democratised
learning. In 2024, our learning programmes covered
leadership, functional training and general business
training, and we report 659,353 training hours
across all management layers. Average training
hours per FTE: 20.1.
Gender equality
One of our key efforts is the Women in Leadership
programme, which supports the growth and
development of women in leadership roles. In 2024,
69 female leaders participated in this six-month
programme, enhancing their leadership skills and
fostering a network of women leaders within the
organisation. Additionally, our local business units
continue to design regionally targeted campaigns
to empower and uplift women, tailored to the
specific needs of each market.
We are also focused on creating equal opportunities
in hiring and career advancement. The gender
balance in our workforce reflects this commitment.
45% of internal appointments were made
to women, and 39% of our external hires were
female. Notably, among our external hires for
management positions, women represented 53%,
showcasing our dedication to promoting women
into leadership roles. Among our sales-based
external hires, women made up 42% of the total.
To further support women in the fields traditionally
employing males, we created a Women in Sales
community specifically for our female Ukrainian
sales teams. This initiative aims to amplify learning
and development opportunities for women in sales
and create a supportive environment, where
female employees can thrive and grow.
Moreover, the ratio of the basic salary between
women and men is 1.37, underscoring our ongoing
efforts to ensure equitable pay across genders.
Net zero transition plan
Within our net zero transition plan, we do not
expect any negative impact on our employees.
On the contrary, we expect more ‘green’ roles
to be included, such as people responsible for
decarbonisation, ESG reporting, internal audit
for ESG data, etc.
Own workforce and occupational health and
safety risk assessment
For every workplace, we conduct on a regular
(annual, or in case of significant change more
frequently) basis, a risk assessment process
where we assess any potential health and safety
risk. Based on this, a mandatory corrective action
and mitigation plan is developed at manufacturing
site level. The process is documented.
Own workforce involved in occupational activities
who have a high incidence or high risk of specific
diseases, refers to 2,867 employees who operate in
Nigeria, where the risk of exposure to communicable
diseases (such as malaria, HIV, etc.) is generally higher
than the average for our Group employees. There is a
higher exposure risk for 22 CCH employees who work
at our wastewater treatment facilities, where both
production wastewater and communal wastewater
are treated. Those two groups of employees have
been assessed based on our detailed Occupational
Health and Safety (OHS) risk assessment and hazard
prevention programmes.
In general, during our detailed OHS risk assessment
we evaluate the OHS risks and hazards in each
working place (each job). This is a documented
process done at country and plant level, and
mitigation plans and specific requirements are
issued for each high risk. It is also audited during
the ISO 45001 audits.
Impacts, risks and opportunities
management
S1-1 Policies related to own workforce.
S1.MDR-P_01, 02, 03, 04, 05, 06 & S1-1_01, 02,
09, 10, 11, 12, 13, 14, 16, 17, 21
The relevant policies adopted to manage material
sustainability matters are Code of Business
Conduct, Whistleblowing Policy, Human Rights
Policy, Inclusion and Diversity and Anti-Harassment
Policy, HIV/AIDS Policy, Fleet Safety Policy, and
Occupational Health and Safety Policy. These
policies cover all our own workforce that was
mentioned in the previous section.
Code of Business Conduct
Key contents of the Code
The Code of Business Conduct (the ‘Code’) is
Coca‑Cola HBC’s essential overarching policy.
All our employees are responsible for upholding
our commitment to the highest standards of
business conduct. The Code is composed of
several chapters whose contents include:
• Our Commitment
• How to Use This Code
• Human Rights, Diversity and Inclusion
• Reasonable Use of Coca-Cola HBC Assets
• Protection of Information and
Operational Assets
• Dealing with Customers and Suppliers
• Conflicts of Interest
• Anti-Bribery
• Environment, Health and Safety
• Competing Honestly in the Marketplace
and Complying with Competition Laws
1. Numbers presented are aggregated based on the local SEIS reports from CCHBC territories in the period 2018-2024. All KPIs represent annual impact.
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• Privacy and Protection of Personal Data
• Dealing in Company Securities
• Training
• Investigations.
Training on the Code is conducted on a regular
basis. It is the responsibility of every employee
to undergo mandatory training and to do so in
a responsible and engaged manner.
Objective
The Code provides what is expected of everyone
working for Coca-Cola HBC worldwide regardless
of location, role or level of seniority. This includes
all employees, managers and members of the ELT.
Our suppliers, distributors, agents, consultants
and contractors are also subject to many of the
principles of our Code through our Supplier Guiding
Principles. Failure to comply with the Code by any
employee is treated very seriously and may result
in disciplinary action, up to and including dismissal.
Process for monitoring
We encourage our employees to speak up and
look for guidance where needed, and to make
sure that they have all necessary approvals for
key decisions. This minimises the risk of deviation
from, or violation of, the guidelines set out in the
Code of Business Conduct.
The Code sets accountable officers in each
business unit, the Ethics and Compliance Officers,
as well as implementation of remediation plans. It
also clarifies how grievances should be reported
and escalated.
The Internal Control team runs periodic testing on
key controls related to the Code. The corporate Audit
team runs periodic risk-based compliance audits.
The Audit and Risk Committee reviews the results
of the internal audit reports during each meeting,
focusing on the key observations of any reports
where processes and controls require improvement.
The Audit and Risk Committee is also provided
with updates on the remediation status of
management actions of internal audit findings
and on the internal audit quality assurance and
improvement programme at each meeting.
Scope
The Code applies to all employees of Coca-Cola
HBC worldwide regardless of location, role or level
of seniority. This includes all employees,
managers, members of the ELT and Directors of
Coca-Cola HBC.
Most senior level accountable for
the implementation of the ‘Code’
Coca-Cola HBC’s Board of Directors and the Head
of Corporate Audit approve the Code, and it has
been adopted with the full support of our ELT.
Commitment to respect third-party standards
The Code refers to specific policies per area.
These policies may define requirements as
per the internationally recognised third-party
standards such as the UNGC, ILO, etc.
Consideration given to the interests of
key stakeholders in setting the policy
Whenever the Code is updated, inputs from
Corporate Audit team, based on investigated
cases and relevant management actions, and
country teams are considered.
Policy available to potentially affected stakeholders
The Code of Business Conduct is publicly available
on our website. We share the Code with all employees
upon joining the Company. Additionally, we share
the Code in our internal communication platforms,
so employees can easily access it. The Code is
also translated into our local languages to ensure
that all employees can fully understand it. We
regularly train our employees on the Code through
mandatory e-learning and other training sessions
that are part of our mandatory training programme.
If an employee has a question about the rules of
the Code and how they apply to real-life situations,
there are colleagues, our Ethics and Compliance
Officers, available to offer guidance. The Ethics
and Compliance Officer that an employee should
contact depends on his/her role:
• Country Employees: Country Legal Manager
• Group Functions Employees: Head of
Legal Compliance
• General Managers, ELT members, Board
members: General Counsel
• CEO: Chair of the Audit and Risk Committee
The Ethics and Compliance Officers are available
to receive requests of clarifications on the Code’s
provisions from our Company’s employees. This
may happen from time to time. Such requests for
clarifications are aimed at making sure that the
Code is complied with and no violation occurs by
the requesting employees.
Human Rights Policy
Key contents of the policy
The key contents of the policy include:
• Respect for Human Rights
• Community and Stakeholder Engagement
• Valuing Diversity
• Freedom of Association and Collective Bargaining
• Safe and Healthy Workplace
• Workplace Security
• Slavery, Forced Labor and Human Trafficking
• Child Labour
• Work Hours, Wages and Benefits
• Guidance and Reporting for Employees
The process to monitor material sustainability
matters, related to human rights, follows the
steps below:
When a conflict arises between the language of
the policy and the laws, customs and practices of
the place where an employee works, or questions
arise about this policy or in case an employee
would like to report a potential violation of this
policy, those questions and concerns can be
raised through existing processes, which make
every effort to maintain confidentiality. For more
information, please see the Human Rights Policy.
The updated policy is communicated to our
Top 300 senior managers by the ELT responsible
(Chief People and Culture Officer), and then it is
cascaded to all employees locally by the local
People and Culture business unit directors.
We have developed an e-learning course related
to human rights, automatically communicated
to all employees via email, and we follow the
completion rate regularly. All policies are part of
the onboarding programme for every new CCH
manager/supervisor and every new employee.
In the core leadership programmes, such as
Passion to Lead and LEAP, we also cover the
DEI and human rights areas.
Objective
Coca-Cola HBC respects human rights, and we
are committed to identifying, preventing and
mitigating any adverse human rights impacts in
relation to our business activities through human
rights due diligence and preventive compliance
processes. We are committed to respecting
human rights of all individuals regardless of race,
sex, gender identity, colour, national or social
origin, religion, age, disability, sexual orientation
or political opinion, who may be at heightened risk
of becoming vulnerable or marginalised, including
but not limited to migrants, indigenous people,
refugees and minorities.
Process for monitoring
Regular reviews ensure that we adhere to
all applicable laws and regulations, our Code
of Business Conduct and internal standards.
Certification on a regular basis confirms that
we are in legal compliance, processes are well
implemented, targets are set and reached, and
reporting is timely and accurate. In addition,
we have a well-publicised whistleblower system
in place, with all cases investigated. Our due
diligence compliance model is driven through an
external audit process. Workplace Accountability
Audits are conducted with a minimum cycle of
every three years in each of the Coca-Cola HBC’s
plants by an independent external provider.
Scope
Our Human Rights Policy applies to Coca-Cola
HBC, the entities that we own, the entities in
which we hold a majority interest, and the facilities
that we manage.
Most senior level accountable for the
implementation of the policy
This policy has been approved by the Coca-Cola
HBC ELT and signed by the CEO. Accountable for
the implementation of the policy is Chief People
and Culture Officer at Group level and at local
business unit level is the business unit’s People
and Culture Director. All employees are
responsible for committing to the policy.
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Consideration given to the interests of
key stakeholders in setting the policy
Our Human Rights Policy is guided by international
human rights principles, encompassed in the
United Nations Universal Declaration of Human
Rights, the International Labour Organisation’s
Declaration on Fundamental Principles and Rights
at Work, the United Nations Global Compact and
the United Nations Guiding Principles on Business
and Human Rights.
Via our Employee Engagement surveys done
regularly, we capture the view and feedback
of our employees. The surveys are in the local
language. With regular dialogue with the
employees’ representatives in the Work
Councils, we also take feedback from
employees and act upon suggestions.
Policy available to potentially
affected stakeholders
The Human Rights Policy covers all employees
in own workforce and is publicly available on our
website. We share this policy with all employees
through regular training sessions and have
included it in our mandatory e-learning courses.
Additionally, we share the policy in our internal
communication platforms, so employees can
access it easily. The policy is also translated into
local languages to ensure that all employees can
fully understand it. E-learning courses also are
available in local languages and accessible to
every employee via our training portal.
Inclusion and Diversity and
Anti-Harassment Policy
Key contents of the policy
At Coca-Cola HBC, we benefit greatly from the
skills, experience and commitment of the diverse
range of people who work with us. We recognise
that diversity is essential to serving our customers
effectively, and we strive to ensure that no one is
treated inappropriately or disrespectfully in our
workplace. This is aligned with our Values to act
with integrity and care for our people. Inclusion
and Diversity and Anti-Harassment Policy sets out
our approach to inclusion, diversity, anti-harassment
and the avoidance of discrimination at work.
Inclusion and diversity for the purposes of this
policy means the creation of a respectful work
environment in which people neither discriminate
nor are discriminated against in any context based
on the following characteristics:
1)
age
2)
disability
3)
gender or gender reassignment
4)
sex or sexual orientation
5)
marital or civil partnership status
6)
family status including pregnancy, maternity,
paternity or other carer status
7)
race including ethnic origin, nationality or colour
8)
religious, political or other beliefs
9)
full-time or part-time status
10) any other characteristic in respect of which
legal protection is afforded by local law
Incidents of non-compliance with this policy or
of any other conduct that affects inclusion and
diversity should ordinarily be reported to line
managers in the first instance. Such incidents
may alternatively be reported to a line manager’s
line manager or to a member of the People and
Culture department, or to the ‘SpeakUp!’ line.
Like every policy, Inclusion and Diversity and
Anti-Harassment Policy is published on the website,
and it is cascaded to all employees by the local
business unit senior managers. Communication is
mandatory to every new employee as part of the
onboarding process. There are a few e-learnings
courses related to Inclusion, Diversity and
Anti-Harassment available on our intranet training
platform in local languages. It is also part of the
regular updates done to all local senior leaders
responsible for the implementation of the policy.
We are committed to dealing promptly and
thoroughly (and with as much confidentiality
and sensitivity as possible) with any such
complaints. We do not tolerate any form of
victimisation relating to any complaint made
in good faith. Victimisation includes not only
conduct directed at the complainant but also
conduct directed at any other person involved in
any related investigation. We may commence
disciplinary or other applicable proceedings under
our Code of Business Conduct against any person
who we consider may have breached this policy.
Such proceedings may lead to the imposition of
appropriate disciplinary sanctions up to and
including dismissal. We reserve the right to
review and amend this policy from time to time
to ensure that we are adequately promoting
inclusion and diversity and anti-harassment.
For more information, please visit our Inclusion
and Diversity and Anti-Harassment Policy.
Training on non-discrimination:
We support all people who work for us to comply
with this policy, including, where appropriate,
training, guidance and support from the People
and Culture Department.
There are a few e-learning courses related to
Inclusion, Diversity and Anti-Harassment available
on our intranet training platform. It is also part of
the regular updates sent to all local senior leaders
responsible for the implementation of the policy.
In the core leadership programmes, such as Passion
to Lead and LEAP, designed for our middle and top
managers and future leaders, we also cover the
DEI and human rights areas.
Specific policy commitments related to
inclusion or positive action for people from
groups at particular risk of vulnerability in
own workforce
Our women’s networks, in our Corporate Service
Centre and in several of our business units,
connect and empower women across our
business. Members come together to share
experiences and learning, helping to foster
individual professional development, as well
as shape our organisation’s culture.
Objective
Coca-Cola HBC is committed to fostering an
inclusive and diverse workplace through our
Inclusion and Diversity and Anti-Harassment
Policy, same as mentioned above for our
Human Rights Policy.
Process for monitoring
To ensure compliance with our Inclusion and
Diversity and Anti-Harassment Policy, we have
established several key processes. All employees
undergo regular training to understand and uphold
these values. We provide clear channels for reporting
any incidents of harassment or discrimination,
ensuring anonymity and protection against
retaliation. Our Ethics and Compliance Officers
thoroughly investigate all reported cases. Regular
internal and external audits are conducted to
assess compliance, with results reviewed by the
Audit and Risk Committee. Remediation plans are
implemented as needed to address any issues.
These measures help us maintain a respectful,
inclusive and diverse workplace.
Scope
This policy applies to all people who work for us
(including our employees, contractors, consultants,
advisers and agency workers) and applies throughout
the course of their dealings with us, including
when they apply to work for us and after they
cease working for us. It covers all aspects of
employment with us, including recruitment, pay
and conditions, training, appraisal, promotion,
conduct at work, disciplinary and grievance
procedures, and termination of employment.
The policy creates both rights to be enjoyed by
people who work for us and responsibilities for
those same people to behave in a similar manner
to ensure that others enjoy those same rights.
Leaders and managers within our business should
assume responsibility to give effect to inclusion and
diversity and anti-harassment, and robustly and
promptly address any conduct that breaches this
policy of which they become aware. All employees
are responsible for adhering to the policy.
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Most senior level accountable for
the implementation of the policy
Inclusion and Diversity and Anti-Harassment
Policy has been approved by the CEO. Accountable
at Group level is Chief People and Culture Officer.
At country level, accountability is within the
business unit People and Culture Director.
We assign responsibility at senior management
level for equal treatment and opportunities in
employment. Clear Company-wide policies
and procedures guide our equal employment
practices, and we link advancement to desired
performance in this area.
Commitment to respect third-party standards
When we developed the policy, we considered the
best industry standards and practices in DEI, such
as ISO 30415:2021 Human resource management
— Diversity and inclusion.
Consideration given to the interests of
key stakeholders in setting the policy
We have been collecting the feedback by our
employees as part of the regular employee
meetings handled in each of our business units and
at Group level, Townhall meetings and Coke breaks.
Via our Employee Engagement surveys done
regularly, we capture the view and feedback of
our employees. The surveys are in the local
language. With regular dialogue with the
employees’ representatives in the Work
Councils, we also take feedback from
employees and act upon their suggestions.
Policy available to potentially
affected stakeholders
The Inclusion and Diversity and Anti-Harassment
Policy is publicly available on our website. We share
this policy with all employees through regular
training sessions and have included it in our
mandatory e-learning courses. Additionally, we
share the policy in our internal communication
platforms, so employees can access it easily. The
policy is also translated into local languages to
ensure that all employees can fully understand it.
In the core leadership programmes such as
Passion to Lead and LEAP, we also cover the DEI
and human rights areas. The training sessions
and e-learning courses are translated into local
languages to ensure that all employees can fully
understand it.
Occupational Health and Safety Policy
Key contents of the policy
The Occupational Health and Safety Policy
supports the implementation of the occupational
health and safety management system ISO
45001, as well as the following health and
safety principles:
• Provide an environment where work-related
health and safety risks are controlled to prevent
injuries and occupational ill health.
• Comply with all legal and other applicable OH&S
requirements from, e.g., TCCC in all Coca-Cola
HBC territories and conform with relevant
international standards by implementing
continuous improvement programmes.
• Implement an effective OH&S management
programme integral to ongoing business activities.
Objective
Through this policy, we aim to provide and
maintain a healthy and safe working environment
by eliminating hazards, reducing health and safety
risks and raising awareness among employees,
contractors, visitors and others who may be
affected by business-related activities, thus
addressing health and safety material topic.
Process for monitoring
Compliance to the Group OH&S Policy is being
monitored through ISO 45001 certification,
Life Saving Rules (LSR) implementation and
compliance, internal x-boarder audits, and
TCCC Global Audit Organisation (GAO) audit
results. We mandate every employee to go
regularly through our health and safety annual
training and we monitor participation rate.
Scope
This policy applies to Coca-Cola HBC’s:
• production operations and business facilities
• products and services
• distribution and logistics
• suppliers, service providers and contractors
• other key business partners (including
co-parkers, joint ventures, etc.)
Most senior level accountable for the
implementation of the policy
The CEO is committed to our OH&S policy,
which is owned and endorsed by the Risk and Audit
Committee of the Board of Directors and the Health
and Safety Committee of the ELT. The CEO is
determined to provide the leadership and resources
required to ensure this policy is fully implemented.
That said, every Coca-Cola HBC employee at every
level and at every function in the organisation is
responsible for the successful implementation
of this policy and the related programmes.
Commitment to respect third-party standards
We commit to respect occupational health and
safety management system ISO 45001, which is
implemented in the context of our OH&S policy
and programme.
Consideration given to the interests of key
stakeholders in setting the policy
When setting the policies, we took all regulatory
requirements, the international standards such as
ISO 45001 and best industry practices in OH&S,
such as safety risk identification and management,
also the requirements by investors and ESG
raters, such as S&P Global, MSCI ESG, and also
consultations with the employees Work Councils.
Policy available to potentially affected stakeholders
OH&S Policy is publicly available on our website.
We share this policy with all employees – we have
included it in our new OH&S e-learning course
where it is translated in every local language,
and it is mandatory for all CCH employees.
The policy is also uploaded on the internal Group
QSE SharePoints. In every manufacturing site,
the OH&S Policy is printed and disclosed as well.
Furthermore, we ensure that the OH&S Policy is
communicated to all relevant individuals, groups
or entities who are expected to implement it or
have a direct interest in its implementation.
S1-1_03, 04, 05, 06, 07 & S1.MDR-P_04
Human Rights Policy commitments
Commitments and respect for the human
rights, including labour rights, of people
in own workforce and alignment with
international instruments
Please see
S1.MDR-P_01, 02, 03, 04, 05, 06 & S1-1_01, 02,
09, 10, 11, 12, 13, 14, 16, 17, 21
We respect human rights, thus we are committed
to identify and prevent any adverse human rights
impacts in relation to our business activities
through human rights due diligence and
preventive compliance processes.
Regular reviews ensure that we adhere to
all applicable laws and regulations, and our
human rights policy. In addition, we have a
well-publicised whistleblower system in place,
with all cases investigated. Our due diligence
compliance model is driven through an external
audit process. Compliance is monitored through
certifications, and Workplace Accountability
Audits are conducted with a minimum cycle of
every three years in each of the Coca-Cola
HBC’s plants by an independent external provider.
At local business unit level, during the regular
dialogue with the employees’ representatives
of the Work Council, we consider and act upon
any concern and feedback.
We compensate employees competitively relative
to the industry and local labour market. We operate
in full compliance with applicable wage, work
hours, overtime and benefits laws.
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Sustainability Statement continued
As a Group, we have a zero-tolerance approach to
modern slavery of any kind within our operations
and supply chains, and we are taking steps to
ensure that our employees and contractors
understand the Group’s commitment to human
rights, and their own rights and responsibilities.
We comply with all local laws on the minimum age
of employment, as provided in the ILO Convention
138. We prohibit the hiring of individuals that are
under 18 years of age for positions in which
hazardous work is required, as provided for
in ILO Convention 182.
Engagement with people in own workforce
Where appropriate, we are committed to engaging
in dialogue with stakeholders on human rights
issues related to our business. We are committed
to creating workplaces in which open and honest
communications among all employees are valued
and respected. Our policy is to follow all applicable
labour and employment laws wherever we operate.
Regular reviews ensure that we adhere to all
applicable laws and regulations, and our policies. In
addition, we have a well-publicised whistleblower
system in place, with all cases investigated. Our
due diligence compliance model is driven through
an external audit process. Workplace Accountability
Audits are conducted with a minimum cycle of
every three years in each of the Coca-Cola HBC’s
plants by an independent external provider. At
local business unit level, during the regular dialogue
with the employees’ representatives of the Work
Council, we consider and act upon any concern
and feedback. Via our Employee Engagement
surveys done regularly, we capture the view and
feedback of our employees. The surveys are in the
local language. The results and actions to improve
engagement are reported to the Board of Directors.
Measures to provide and/or enable
remedy for human rights impacts
Our due diligence compliance model is driven
through an external audit process.
Workplace Accountability Audits (Supplier Guiding
Principles audits in our manufacturing operations)
are conducted with a minimum cycle of every three
years in our plants. Workplace Accountability
Audits are conducted through an internationally
recognised and accredited audit organisation. The
audits cover our own processes and employees,
contractors and others who are not employees
such as staff of third-party service providers,
(e.g., for security or canteens). Identified risks and
mitigation plans are reviewed by senior management 1.
The concerns raised via the ‘SpeakUp!’ line are
addressed and actions are implemented.
Based on internal human rights due diligence
process we have not identified any sites as high
risk. A medium risk finding was raised in one
manufacturing site in Russia and in one in Nigeria.
In both cases, findings have been addressed
through a corrective action plan. Every human
rights case which comes from either external
audits or internal audits is discussed and
addressed. We follow the corrective action
plans immediately and re-audit to confirm the
case is closed and lessons are learned. The
summary of all ‘Notices of Violation’ we have
received is also reported to the Board of Directors
with the respective actions taken.
S1-2 Processes for engaging with own workers
and workers’ representatives about impacts
S1-2_01, 02, 04
At Coca-Cola HBC, we have established
processes to ensure that the perspectives of our
workforce are consistently considered in our
decision-making processes.
The Director, who is responsible for Workforce
Engagement, attends the Work Councils’ meetings
to gather insights from representatives across the
Company. For example, during 2024, these meetings
included discussion on workforce concerns about
inflation and its impact. The Company’s decision
to provide one-off bonuses provided at the end
of 2023, to help alleviate the higher cost of living,
was well received by the workforce. As in previous
years, Charlotte Boyle, the Chair of the Remuneration
Committee, interacts directly with the representatives
to get their wider insights, which she takes back to
the Committee for discussion and to share with
the Board, and their perspectives are considered
in our decision-making processes.
Our local business units regularly capture
feedback at local level and address any concerns.
Please see the Governance section of the IAR,
‘Engaging with our stakeholders’ on pages 200
to 201.
Besides, the Chief People and Culture Officer
at Group level and business unit People and
Culture Directors have operational responsibility
for engagement with employees. The results of
employee engagement surveys are sent to all
countries and all functions, and the Function
Heads are responsible for analysing the results
and setting improvement actions.
S1-2_03
The stage(s) at which engagement occurs,
the type of engagement and frequency of the
engagement are detailed in the table below:
Type of engagement
Stages
Frequency
Sustainable engagement
and values index surveys
Evaluating the
effectiveness
Annually
CEO management calls
Determining
the approach
Quarterly
Leadership conferences Evaluating the
effectiveness
Annually
Employee communication
channels such as intranet
and internal social media
Evaluating the
effectiveness
Regularly
Individual development
plans
Determining
the approach
Bi-annually
Internal communication
campaigns
Evaluating the
effectiveness
Regularly
Community and active
lifestyle projects
Evaluating the
effectiveness
Regularly
Volunteerism
Evaluating the
effectiveness
Regularly
Employee Works Council Evaluating the
effectiveness
Regularly
Whistleblower hotline
(‘SpeakUp!’ line)
Evaluating the
effectiveness
Regularly
Focused and continuous
conversations
Evaluating the
effectiveness
Regularly
Employee Assistance
Programme
Evaluating the
effectiveness
Regularly
Regular employee
surveys to understand
and act on needs and
wellbeing
Evaluating the
effectiveness
Annually
Ongoing dialogue
with employee
representative bodies
Evaluating the
effectiveness
Regularly
1. As senior management, we consider our top 300 business leaders, which includes country function heads, Group sub-function heads and the ELT, including the CEO.
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S1-2_05
Global Framework Agreement and
engagement with workers’ representatives
We regularly discuss with our local workers’
representatives and in European Work Council
(EWC). These discussions are guided by our
commitment to respect human rights as
outlined in our Global Framework Agreement.
This agreement ensures that we engage with
workers’ representatives on matters related
to human rights, allowing us to gain valuable
insights into the perspectives of our workforce.
The agreement facilitates open dialogue and
collaboration, ensuring that the views and
concerns of our employees are heard and
addressed in our decision-making processes.
Once per year, we hold our Culture and Engagement
or Pulse survey to understand the perspectives of
our employees on human rights and other topics
and turn their insights into concrete action plans
that are shared and discussed in our business
units, our functions, and as well with our ELT.
S1-2_06
Assessing the effectiveness of engagement
We assess the effectiveness of our engagement
with our own workforce through various methods,
including employee engagement surveys. We
have a continued high employee engagement
score and in 2024 it was 88%, 2 percentage points
higher than 2023. This high engagement score
indicates that our employees feel heard and
valued, and it reflects the effectiveness of our
engagement processes. Additionally, we review
the outcomes of our engagements, such as the
implementation of one-off bonuses to alleviate
the higher cost of living and monitor the feedback
from our workforce to ensure that our actions are
meeting their needs and expectations.
S1-2_07
Steps it takes to gain insight into the
perspectives of people in Coca-Cola HBC’s own
workforce who may be particularly vulnerable
to impacts and/or marginalised.
For people in Coca-Cola HBC’s own workforce
who may be particularly vulnerable to impacts
and/or marginalised (for example, women,
migrants, people with disabilities), the same steps
are taken: e.g., grievance mechanism, surveys
(please check S1-1_03 to 07 & S1.MDR-P_04 ,
S1-3_01, 02, 05, 06, 07, 08, 09 & S1-1_21).
S1-3 – Processes to remediate
negative impacts and channels for
own workers to raise concerns
S1-3_01, 02, 05, 06, 07, 08, 09 & S1-1_21
Channels to raise concerns and general
approach and processes for providing or
contributing to remedy
Workplace Accountability Audits are conducted
through an internationally recognised and accredited
auditing organisation. The audits cover our own
processes and employees, our non-employees and
also contractors and others who are value chain
workers, such as staff of third-party service providers
(e.g., for security or canteens) working at our
territories in manufacturing plants and warehouses
and in third-party logistics. Identified risks and
mitigation plans are reviewed regularly by senior
management. Workplace accountability audits cover:
• Laws and regulations
• Human trafficking
• Abuse of labour
• Wages and benefits
• Equal pay commitment
• Working hours and overtime
• Business integrity
• Work environment
• Health and safety
• Demonstration of compliance
We have established grievance mechanisms.
Grievance mechanisms cover a wide range of
social, economic and environmental issues
including impacts on society and communities,
human rights, child and forced labour, wages and
hours, health, safety and wellbeing, preventing
harassment and discrimination, environmental
impact, as well as multiple others. We have the
following Group policies in place to remediate
negative impact on people in our own workforce:
1. Code of Business Conduct
2. Human Rights Policy
3. Inclusion and Diversity and
Anti-Harassment Policy
4. Occupational Health and Safety Policy
5. Fleet Safety Policy
6. Whistleblowing Policy
These policies set accountable officers as well as
implementation of remediation plans. They clarify
how grievances should be reported and escalated.
The effectiveness of our grievance mechanisms is
reviewed by the Internal Audit department, which
evaluates whether mitigation has been effective
and whether grievances have been addressed.
We also operate an independent whistleblower
‘SpeakUp!’ line, which can be used by our internal
and external stakeholders to report negative
impacts and non-compliances (violations). The
‘SpeakUp!’ line is managed by a third party and is
available to all employees. It can be accessed at
any time via phone or internet, and it is available
in 26 languages. Specifically, the Audit and Risk
Committee reviews the results of the internal
audit reports during each meeting, focusing
on the key observations of any reports where
processes and controls require improvement.
The Audit and Risk Committee is provided with
updates on the remediation status of management
actions of internal audit findings and on the
internal audit quality assurance and improvement
programme at each meeting.
All communications received through the
‘SpeakUp!’ line are kept confidential and, where
requested, anonymous. The Head of Corporate
Audit liaises regularly with the General Counsel
and communicates all significant allegations to
the Chair of the Audit and Risk Committee. All
matters received via the ‘SpeakUp!’ line or any
other reporting mechanism are thoroughly
investigated. The Audit and Risk Committee
receives summary reports of escalated incidents
and instances of whistleblowing together with the
status of investigations and, where appropriate,
management actions to remedy issues identified.
The Committee reports to the Board on such
matters, which reviews and considers those
reports at least bi-annually as appropriate.
In addition to the ‘SpeakUp!’ line, European Works
Councils are organised with the participation of
elected employee representatives from our
businesses in EU countries, where various
concerns and matters are raised by them.
Charlotte Boyle, our designated non-Executive
Director, has the mandate for engagement
with our people. Employee engagement survey
annual results are shared with and reviewed by the
Nomination Committee and the Board. The CEO
held engagement sessions with employees during
the year, including Q&As. The results and actions
of the employee engagement surveys are
addressed by each Function Head and local senior
managers with their respective teams.
Tracking and monitoring issues raised
and ensuring effectiveness of channels
Allegations received related to issues not covered
under the Code of Business Conduct are routed
to the appropriate department for appropriate
handling. All allegations involving potential Code
of Business Conduct violations are investigated
in accordance with the Group Code of Business
Conduct Handling Guidelines. Importantly, we
make sure that the learnings from both the Code
of Business Conduct violations and allegations
reported through the whistleblower hotline are
drawn and result in relevant decision-making and
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Strategic Report
Sustainability Statement continued
procedural changes, for example, the re-evaluation
of our procedures in connection with incidents
and the review, adjustment or update of related
policies. We also undertake measures to improve
our systems and use them to prevent as many of
these violations as possible from happening,
learning from our experience and that of others.
We assess the effectiveness of our ‘SpeakUp!’
line through feedback surveys conducted with our
employees as well as regular testing of key controls
conducted by our Internal Controls Department.
During the communication campaign on the
‘SpeakUp!’ line, we also ran a survey in 2024.
To ensure the effectiveness of the ‘SpeakUp!’
line, we involve stakeholders who are intended
users by:
1. Legitimacy and Accountability: Ensuring
appropriate accountability for the fair conduct
of the line and building stakeholder trust.
2. Accessibility: Making the line known and
accessible to stakeholders.
3. Clear Procedures: Establishing clear and known
procedures with indicative timeframes.
4. Access to Information: Ensuring reasonable
access for stakeholders to sources of
information, advice and expertise.
5. Transparency: Providing sufficient information
both to complainants and, where applicable, to
meet any public interest.
6. Human Rights Compliance: Ensuring
that outcomes achieved accord with
internationally recognised human rights.
7. Continuous Learning: Identifying insights
from the line that support continuous learning
in both improving the line and preventing
future impacts.
8. Dialogue: Focusing on dialogue with
complainants as the means to reach
agreed solutions, rather than seeking
to unilaterally determine the outcome.
Assessing awareness and trust in structures
or processes as way to raise concerns
To ensure that our own workforce is aware of and
trusts our processes to raise concerns and the
‘SpeakUp!’ line, we conduct regular communication
campaigns, surveys and feedback sessions with
our employees. These surveys assess the levels of
awareness, accessibility and trust in the ‘SpeakUp!’
line. We gather relevant and reliable data about the
effectiveness of this line from the perspective of
the people concerned.
Protection against retaliation
We have in place a Whistleblowing Policy,
the purpose of which is to:
• encourage the reporting of any form of
inappropriate behaviour;
• provide guidance on how to raise concerns; and
• confirm that confidentiality will be maintained
and that genuine concerns reported honestly
can be raised without fear of retaliation, even if
they turn out to be mistaken.
In addition, in accordance with the ‘SpeakUp!’
line setup, all submitted reports are strictly
confidential and visible to the Corporate Audit
office only. The Company runs annual Ethics and
Compliance awareness campaigns highlighting
confidentiality of ‘SpeakUp!’ line reports, as well
as the ‘no retaliation’ principle.
S1-4 Taking action on material impacts
on own workforce, and approaches to
mitigating material risks and pursuing
material opportunities related to
own workforce, and effectiveness
of those actions
S1.MDR-A_01, 02, 04, 05 & S1-4_01, 02, 03
A summarised description of the action plans and
resources to manage our material impacts related
to own workforce in relation to material sustainability
matters we have identified, is presented below:
Human rights, social protection
and social security
Key actions taken
In 2024, we refreshed our Human Rights Policy,
strengthening commitment behind equal pay and
behind vulnerable individuals and communities.
In 2024, we refreshed our Human Rights Training
(mandatory for all employees) to further strengthen
awareness and knowledge about this vitally
important area. Additionally, in 2024, we reinforced
our commitment to employee wellbeing by
hosting dedicated sessions in local languages
across our regions, highlighting the support
available through our EAP, which is available
to more than 26,600 employees. Since these
sessions, we increased EAP utilisation to 1.37%
(1.01% in 2023) and improved engagement with
the EAP app. Our Wellbeing Hub features a wealth
of resources, including our mental health policy,
stress management booklets for managers
and employees, and other wellbeing-focused
materials. This commitment earned us high
commendation in the European Wellbeing
Excellence category of the TELUS Health 2024
Wellbeing Awards.
Please see also S1. SBM-3_01-04, 06, 11
according to ESRS S1 par. 14c (brief description of
activities that result in positive impacts with
regards to accessibility to a living wage, access to
education, gender equality)
Expected outcomes
Expected outcomes include increased awareness
and understanding of human rights among
employees, improved compliance with human
rights standards, and enhanced protection for
vulnerable groups.
How their implementation contributes to the
achievement of policy objectives and targets
The implementation of actions and the expected
outcomes further contribute to our zero tolerance
for discrimination and harassment, as this is
defined in our respective policy, ensuring a safe
and fair working environment for all employees,
which is confirmed by the fact of zero incidents
of discrimination.
Scope of the key actions
The actions described above apply to all our
activities, the entities that we own, the entities in
which we hold a majority interest, and the facilities
that we manage, in accordance with the Human
Rights Policy.
Gender equality
Key actions taken
Championing women in leadership:
During 2024, we continued to proudly uphold
our commitment to Diversity and Inclusion
by increasing the share of female leaders.
We are closely monitoring our progress across
recruitment, talent development and retention,
and embedding inclusive leadership in our
Leadership Development programmes.
We have improved our gender balance at all
levels, with 43.5% of management positions
now held by women, a 1.7 percentage point
increase since last year.
As we strive to build a gender-balanced organisation,
we have a number of activities in place focused
specifically on women. For example, we held
several Women Network sessions in Austria,
Ireland and Northern Ireland, Egypt and Nigeria,
and virtual talks with our women in the DTPS
and Finance functions to increase visibility and
knowledge sharing. During the last year, 69 of
our female leaders participated in our Women
in Leadership programme, which aims to build
engaged and capable female leaders, support
their transition into new roles and change cultural
factors that may hold them back. Since the start
of the programme in 2022, 56% of participants
who completed ‘Women in Leadership 1’ and 50%
of participants who completed ‘Women in
Leadership 2’ have already been promoted. We
held several female community talks, with one
of the highlights being our COO, Naya Kalogeraki,
and our CPCO, Ebru Ozgen, joining our female
leaders in a panel discussion. In Nigeria, we developed
a specific female development programme, with
the focus on developing women in their self-belief
and self-confidence.
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Strategic Report
Sustainability Statement continued
Expected outcomes
We were proud to receive nine diversity-related
awards. In Greece, we received the Gold award for
Accelerating Female Professionals. In Austria, our
four awards include the Seal of Quality of In-house
Advancement of Women. Further highlights
included the following:
• Increased visibility and recognition of female
leaders within the organisation and the industry.
• Enhanced Company reputation as a champion
of gender diversity.
• Strengthened partnerships within the fast-
moving consumer goods (FMCG) and retail
industry, resulting in collaborative initiatives
that promote diversity and inclusion.
• Development of a pipeline of qualified female
candidates for managerial positions.
• Enhanced the organisation’s influence in
promoting gender diversity at the managerial
level, contributing to a broader cultural
shift in corporate governance.
Further highlights included the following:
• Ten women senior managers joined WeQual,
an initiative that brings together global
organisations to drive gender equality. Our CEO
continues to be a judge at the WeQual awards
for female leaders.
• Participating in the LEAD conference, as a
TCCC partner – the largest Diversity and
Inclusion event for the European FMCG and
retail industry.
• Support The Boardroom in Greece to develop
women for Board positions.
How their implementation contributes to the
achievement of policy objectives and targets
• The implementation of our Women in Leadership
programmes increases the representation of
women in senior roles by providing targeted
leadership development, directly addressing
gender imbalances. Our Women Leader
Stories Video Series inspires and motivates
other women by sharing success stories,
enhancing the visibility of female role models and
supporting career growth. Regionally targeted
campaigns empower women in various roles
and industries, breaking down stereotypes and
promoting gender equality. Participation in the
WeQual initiative and the LEAD conference
highlights our commitment to gender equality,
supports the development of female talent,
and promotes collaboration and knowledge
sharing. Additionally, supporting The Boardroom
in Greece enhances governance and decision-
making by increasing the representation of
women at the highest levels of leadership.
Scope of the key actions
The actions described above apply to all our
organisation activities.
• Women in Leadership programmes:
Targeted at female leaders within the
organisation, focusing on professional
development and leadership skills.
• Women Leader Stories Video Series:
Aimed at a broad audience to inspire and
share experiences related to work-life balance,
career growth and leadership.
• Regional campaigns: Regionally targeted
initiatives to empower women, addressing
specific cultural and industry-related challenges.
• WeQual Initiative: Participation of senior
women managers and CEO involvement
to drive gender equality.
• LEAD conference participation: Engagement
with industry leaders and partners to promote
Diversity and Inclusion.
• Support for The Boardroom in Greece: Focus
on developing women for board positions,
enhancing governance and decision-making.
Progress of actions or action plans
disclosed in prior periods
Regarding Mission 2025 commitment ‘50% of
manager positions to be held by women by 2025’,
we monitor our progress using as a KPI the rate of
manager positions held by women. By the end of 2024,
43.5% of management positions are now held by
women, a 1.7 percentage point increase since last year.
Please see
S1.MDR-T_01, 02, 03, 04, 05, 06, 07, 08, 09,
11, 12, 13
Training and development
Key actions taken
As a learning organisation, we actively reinforce
continuous learning and upskilling, while giving
people opportunities for personal growth. By
making learning accessible to all, we delivered over
640,000 hours of learning in 2024, of which 25%
was in personal skills, 25% was compliance related
and 50% was in functional skills. Most of our
employees learned ‘online’, with 67% of the learning
activity self-paced and self-initiated. In its fifth
consecutive year, our virtual LearnFest drew
in over 8,000 attendees across 100 sessions
running throughout the month of November.
By ensuring our employees also learn from each
other, we provide access to coaching and mentoring
through technology-enabled solutions. After a
successful campaign to inspire and encourage
internal coaching, in 2024 we incorporated it into
other learning and talent initiatives and continued
to grow our pool of internal coaches.
Please see Access to education on p.131
Expected outcomes
With the education programmes we expect to
enhance employee skills, improve leadership
capabilities and increase overall business
knowledge. By investing in our employees’
development, we aim to foster a culture
of continuous learning and professional
growth, ultimately leading to higher employee
satisfaction and retention and thus to better
Company performance and reputational gains.
How their implementation contributes to the
achievement of policy objectives and targets
The implementation of actions and the expected
outcomes contribute to our objective for
continuous education and awareness, promoting
understanding and respect for human rights
throughout the organisation.
Scope of the key actions
Please see Access to education on p.131
Progress of actions or action plans
disclosed in prior periods
Building on the success of our previous learning
initiatives, we have expanded our programmes in
2024 to include even more participations and a
broader range of topics. This demonstrates our
ongoing commitment to employee development
and our dedication to continuously improving our
training offerings based on feedback and evolving
business needs.
Occupational Health and Safety
Key actions taken
We are monitoring other relevant OH&S indicators,
such as Near miss, Severe near miss, Medical
treatment cases, First aid, Behaviour Based Safety
(BBS) observations conducted, Safety barrier
removal rate, BBS observers trained, and Accidents
per million km driven (APMK).
• OH&S programmes and initiatives
Our fleet safety training programmes aim to
improve safety for all drivers within the Group.
The blend of classroom and on-the-road training
elements is adjusted for different groups, reflecting
their relative risk classification. To reduce the number
of road accidents, we have continued increasing
safety features installation in fleet vehicles.
In 2024, we also continued our Behaviour Based
Safety (BBS) programme with the inclusion of HOP
(Human and Operational Principles) philosophy
implemented across manufacturing and non-
manufacturing locations.
We continued quarterly LSR (Life Saving Rules)
assessments of all manufacturing and non-
manufacturing facilities. Based on these
assessments, each country has developed
specific corrective actions to address critical
gaps and achieve full compliance.
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Strategic Report
Sustainability Statement continued
Regular health and safety awareness training
courses are completed by all our employees. In
2024, we have developed a new health and safety
e-learning course, which is mandatory for all CCH
employees. Moreover, we deployed monthly
safety awareness days (awareness campaigns),
where we engage with employees across the
markets in different health and safety topics.
OH&S management system
We have implemented our occupational health
and safety (OH&S) management system based on
both national standards in the country where we
operate and based on TCCC KORE requirements,
which are either equal or in many cases stricter
than the local regulations/requirements.
For our actions related to health and safety please
see also S1. SBM-3_01-04, 06, 11 according to
ESRS S1 par. 14c (brief description of activities
that result in positive impacts with regards to
improved health, safety and wellbeing).
Key actions taken to provide remedy and support
Unfortunately, in 2024 we had one employee’s
fatality reported (in Egypt) and one contractor’s
fatality reported, both coming from road accidents.
The proper root cause analysis has been
conducted for all, and corrective actions were
addressed via specific Toolbox talks developed,
and lessons learned were shared across all CCH
countries. Road safety remains our top priority so
the actions we took are: update of Fleet Safety
guidelines and communication to all relevant
people; continue with the regular routines to
reduce road incidents in the most critical business
units such as fleet safety trainings, communication
campaigns, lessons learned sessions.
Expected outcomes
The expected outcomes of our OH&S initiatives
include a reduction in fatalities and injuries among
employees and contractors, particularly through
improved road safety measures. By conducting
thorough root cause analyses and implementing
corrective actions, we aim to prevent future
incidents and ensure that lessons learned are
shared across all CCH countries. The focus on
updating the Fleet Safety guidelines and
establishing regular safety routines is anticipated
to decrease road incidents in critical business
units. Overall, these efforts are expected to foster
a safer working environment, enhance compliance
with safety regulations, and build a strong culture
of safety that improves employee wellbeing and
productivity.
Workplace-related accidents reduction
Through the actions described above, we aim to
provide and maintain a healthy and safe working
environment by eliminating hazards, reducing
health and safety risks and raising awareness
among our employees who may be affected by
business-related activities.
How their implementation contributes to the
achievement of policy objectives and targets
• Fleet safety guideline compliance to address
reduction of road accidents (drivers’ trainings,
increase of safety features in the vehicles).
• BBS programme driving safety observations
and conversations with employees, capturing
at-risk behaviour and addressing elimination
of barriers to safe behaviour, increasing health
and safety culture and awareness.
• LSR compliance and health and safety
management systems implementation
addressing workplace safety and elimination
hazards coming from work environment.
• Safety awareness training and regular
campaigns to increase safety awareness,
understanding of hazards and eliminate
human errors.
Scope of the key actions
Ιn accordance with the Occupational Health and
Safety Policy, the actions described above apply
to Coca-Cola HBC’s:
• production operations and business facilities
• distribution and logistics
• suppliers, service providers and contractors
working in our premises
• other key business partners (including co-
parkers, joint ventures, etc.)
Progress of actions or action plans
disclosed in prior periods
Regarding Mission 2025 commitments ‘0
fatalities’ and ‘Reduce (lost time) accident rate
by 50% vs 2017’, we monitor our progress using as
a KPI the number of fatalities with our employees
and lost time accidents per 100 FTEs.
Please see
S1.MDR-T_01, 02, 03, 04, 05, 06, 07, 08, 09,
11, 12, 13
Emergency preparedness
In Coca-Cola HBC, we have local emergency
preparedness procedures available and annually
tested in each site. Testing is primarily done for
fire safety at manufacturing locations. It is also
conducted for the emergency spill preparedness
throughout working shifts. This testing includes
assurance of employees’ safety, and people
evacuation, and is conducted in collaboration with
local medical and fire protection emergency
services. Based on safety risk assessment for high
complexity manufacturing sites, we have trained
dedicated fire emergency response teams. The
Group Business Resilience team is leading
emergency preparedness assessment of all our
operating business units. This assessment
includes OH&S response in emergency situations.
S1.MDR-A_03
Time horizons for key actions
Please see
E5.MDR-T_12 & E5-3_13 & E5.MDR-T_01
S1-4_04
Tracking and assessing the effectiveness
of actions and initiatives
The Audit and Risk Committee reviews the
results of the internal audit reports during each
meeting, focusing on the key observations of
any reports where processes and controls require
improvement. The Audit and Risk Committee is
also provided with updates on the remediation
status of management actions of internal
audit findings and on the internal audit quality
assurance and improvement programme at
each meeting. Detailed information on a
number of findings can be found in the
Corporate Governance section of the IAR.
For health and safety incidents, we have a regular
(monthly) performance review at business unit
level, Group level and Function level. During those
meetings, not only results and targets are discussed,
but also actions and their status in order to improve
performance. We use a special dashboard where the
performance of each country and plant is monitored.
S1-4_05
Processes to identify needed actions
in response to negative impacts
All health and safety-related incidents are
investigated locally by cross-functional teams
of experts from different departments. Steps
taken for the investigation are conducted as
per the ‘Incident Investigation training material/
curriculum’ included in our Supply Chain Academy.
The investigation teams also use structured
Problem-solving methodology, including
Fishbone analysis, and ‘The 5 Whys’ principles.
The analysis of incidents is performed in steps:
1. Interviews
2. Incident preservation procedure
3. Root cause analysis
4. Corrective/preventive action plan
All business units are regularly conducting risk and
hazard identification with respective corrective
actions defined. Risk hazard assessment is in line
with legal requirements and follows the internal
OH&S management system processes.
After the incident investigation, a one-page
lesson learned document is created and shared
locally with all respective teams. It serves as a tool
for learning and prevention of similar incidents in
the future. Selected one-pager lessons learned
are published on a special internal platform for
knowledge sharing, accessible for all.
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Corporate Governance
Strategic Report
Sustainability Statement continued
S1-4_08
Ensuring practices do not cause
or contribute to negative impacts
Work-related health and safety risks analysis with
corrective actions is performed for each employee
position. Across all our operations, we have
implemented an effective OH&S management
programme integral to ongoing business activities.
In case of moving the business to a region, where
there are lower OH&S standards, we always
conduct risk assessment and gap analysis and
we are obliged to follow Group and TCCC OH&S
requirements (e.g., local safety regulation or KORE
requirements). So, the gap analysis is always being
conducted and then a Corrective Action Plan
(CAP) must be developed and followed.
Additionally, we ensure that human rights and
gender diversity considerations are included in
our risk assessments and corrective action plans.
This means that when moving operations, we
assess negative impacts on human rights and
gender diversity, and we take necessary actions
to mitigate these impacts. Our commitment to
respecting human rights and promoting gender
diversity remains steadfast, regardless of the
region in which we operate.
S1-4_09
The resources allocated to managing our material
impacts include internal functions responsible
for addressing these impacts, as well as various
actions taken to mitigate negative effects and
promote positive outcomes, as outlined below.
Internal functions involved:
• People and Culture (P&C) Department:
Responsible for managing secure employment,
adequate wages, gender equality, equal pay
for work of equal value, training and skills
development, and diversity and inclusion.
• Health and Safety (H&S) Department: Focuses
on ensuring the health, safety and wellbeing
of employees, including mandatory safety
training and implementing health and safety
management systems.
• Ethics and Compliance Officers: Oversee
adherence to the Code of Business Conduct,
Human Rights Policy, and Inclusion and Diversity
and Anti-Harassment Policy.
• Internal Audit Department: Evaluates the
effectiveness of grievance mechanisms and
monitors compliance with policies and procedures.
• Corporate Audit Department (CAD): Receives
reports that are submitted through the
‘SpeakUp!’ line and ensures confidentiality
and protection against retaliation.
Types of actions taken
Secure employment and adequate wages:
• In every country, all employees earn at least
the minimum wage. People and Culture
function monitors wage levels to ensure they
are competitive relative to the industry and
local labour market. This includes the lowest
paid employee categories, such as junior line
operators and entry-level merchandisers.
We regard our external reporting segments
as key operational areas, which also form the
basis of financial consolidation. On average,
junior line operators and merchandisers earn
approximately 1.2 times the local minimum
wage in our Established markets, approximately
1.9 times in our Developing markets and
approximately 2.2 times the local minimum wage
in our Emerging markets. The range of ratios is
similar for both male and female employees.
Health and safety:
• The H&S Department implements an
occupational health and safety management
system based on ISO 45001 standards.
• Regular safety training for all employees,
including mandatory safety training before
starting work.
• Implementation of fleet safety training
programs and collision avoidance technology
in fleet vehicles.
• Development and execution of all OH&S
programmes such as Life Saving Rules,
Behavioural Based Safety, etc.
Training and skills development:
• Provision of learning and development
opportunities for all employees, including
leadership, functional training and general
business training.
• Launch of various academies (e.g., Supply
Chain Academy, Sales Academy, Corporate
Affairs and Sustainability Academy) to support
professional development.
Diversity:
• Promotion of a culture of respect and
inclusion through regular training and
awareness programmes.
• Monitoring and reporting on progress
in Diversity and Inclusion initiatives.
Grievance mechanisms:
• Operating the ‘SpeakUp!’ line for
employees to report concerns
confidentially and anonymously.
• Providing regular reviews of the
effectiveness of grievance mechanisms
by the Internal Audit department.
• Ensuring no retaliation against employees
who report concerns in good faith.
S1.MDR-A_06, 07, 09, 10, 11, 12
S1.MDR-A_06
The Group’s treasury strategy ensures the
availability of financial resources to support
sustainability-related actions across all key areas.
By leveraging a diversified range of financing
mechanisms, we can address both current and
future priorities effectively.
Our approach to workforce development and
policy implementation primarily relies on internal
resources and existing digital tools. This allows us
to effectively support continuous learning and the
advancement of key HR initiatives while promoting
efficiency and accessibility for our employees.
Similarly, our commitment to Health and Safety is
underpinned by significant investments to ensure
the effective implementation of associated
programmes and initiatives. In 2024, the Group
has allocated approximately €16 million in capital
expenditures and more than €3 million in operational
expenditures to support compliance with health
and safety standards, training and route-to-
market programmes. These investments reflect
our focus on safeguarding employees while
meeting regulatory requirements, implementing
preventative actions coming from lessons learned
and improving the working areas for our
employees across all operational sites. Looking
ahead, similar levels of spending are projected to
ensure continuity in our efforts to uphold health
and safety standards.
S1.MDR-A_07
The Capex and Opex mentioned above are
reflected in our financial statements, specifically
in the cash flow statement and the income
statement, confirming our commitment to
employee health and safety.
Our accounting system does not separately
classify sustainability-related investments or
costs, as both are reported in accordance with the
general financial reporting principles. For Capex,
however, we apply an internal process to identify
expenditures associated with health and safety
initiatives. This allows us to track and monitor
investments that support our commitment to
workplace well-being.
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Sustainability Statement continued
Metrics & Targets
S1-5 Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities.
S1.MDR-T_01, 02, 03, 04, 05, 06, 07, 08,
09, 11, 12, 13
A summarised description of the targets to
manage our material impacts related to our
own workforce is presented below.
Occupational Health and Safety Policy
We have set two targets, in connection with our
OH&S Policy which aims to provide and maintain
a healthy and safe working environment by
eliminating hazards, reducing health and safety
risks, and raising awareness among employees,
contractors, visitors and others who may be
affected by business-related activities.
We have annual rolling targets related to
Accidents per million kilometres driven, Near
Misses reported, Behavioural Based Safety
observations. Those rolling targets are set only
at local business unit level and the actuals are
reported and monitored at local and Group level
via a specialised reporting software.
Human Rights Policy (equal opportunities)
We have set a target, in connection with our
Human Rights Policy, which aims to advancing
equal opportunities and equal remuneration.
The year to which targets apply is 2025,
Our targets are intrinsic and they are not
compared to any baseline. 2017 is the year we
set the targets. The only exception is the target
of lost time accidents rate which is not intrinsic
and the base year from which progress is
measured for the targets is 2017, with the baseline
value being 0%. Targets cover our employees.
Every sustainability commitment has its annual
roadmap for all the years until the target year is
reached, and we follow it for our business planning
purposes for each respective year.
Table 30: Annual targets for employee engagement (2024 target = Top Decile Norm).
Name of the target
Description of the
relationship between
target and policy
Performance
Target
Application period
Scope of target
Level
Absolute/
Relative
Unit
Time – period
Milestones/
Interim targets Activities
Value chain
segment
Geographical
boundaries
MDR-T_01
MDR-T_13 MDR-T_02 MDR-T_03 MDR-T_03 MDR-T_07 MDR-T_08
MDR-T_04
Work-related
fatalities with
our employees
Occupational
Health and
Safety Policy
1
0
Absolute
#
2025
n/a
Own
operations
Own
operations All Group
Reduce lost time
accident rate
(per 100 FTEs)
vs 2017
Occupational
Health and
Safety Policy
20
50
Relative
%
2025
n/a
Own
operations
Own
operations All Group
Manager
positions will be
held by women
Human Rights
Policy
43.5
50
Absolute
%
2025
n/a
Own
operations
Own
operations All Group
S1.MDR-T_11
Stakeholders have been involved
in target-setting
Please see
E1.MDR-T_11
S1.MDR-T_09
Contextual information
We believe that related to OH&S targets, only zero
is acceptable as a target which is in line with the
best practices globally. In terms of employee
engagement annual target, we compare ourselves
with the global top decile norm. On gender
diversity target, 50% is the desired global level.
The 2025 sustainability commitments, comprising
17 goals established in 2018, are based on our
stakeholder materiality matrix and aligned with
the United Nations SDGs and their targets. These
commitments focus on six key areas within our
value chain: reducing emissions, water reduction
and stewardship, packaging, ingredient sourcing,
nutrition, and our people and communities.
We report actual numbers for each of the
commitments. No assumptions are used
for targets related to the own employees.
Local business unit/country data are
aggregated at Group level.
S1.MDR-T_12
Contextual information
We have not changed any of our commitments as
for us any sustainability target means to deliver, to
execute – an opposite of an aspirational target. For
our targets, we use actual data to report progress.
Our time horizons could be an annual goal aligned
with the Business Planning (BP) process, mid-term
targets aligned with our long-range plan (LRP) and
business objectives, or long-term targets such as
NetZeroby40 aligned with the external trends.
Please see E5.MDR-T_12 & E5-3_13 & E5.
MDR-T_01.
No changes in reporting in 2024 vs prior year. We
have used as sources of data various local files,
templates from our NGO partners, specialised
software where monthly our business units
report the progress and actual data.
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S1.MDR-T_13
How targets are monitored and reviewed
We have specialised software for each of our ESG
goals/targets, and we report monthly the actual
performance and status (if we are on track, lagging
or partly on track) to the members of the ELT who
are accountable for the respective KPIs. The actuals
are easily available in our EDGE dashboards.
Quarterly, the performance is reported to the
Social Responsibility Committee of the Board
of Directors. At local business unit level, those
targets are also reviewed monthly.
For each of the targets, we have the same
process: setting annual targets for each year
by the target year (so-called annual roadmaps),
monthly reporting of actuals, monthly performance
review and actions set by each owner, quarterly
report to the Social Responsibility Committee,
annual disclosure in the IAR and on the website.
S1-5_01, 02, 03
S1-5_01
Setting a target of zero fatalities and aiming for
zero occupational health and safety incidents
aligns with the expectations of both employees
and external stakeholders, as even a single incident
is one too many. Similarly, the goal of having 50%
women in leadership positions and striving to
achieve a top decile global norm in employee
engagement are fully aligned with our employees’
expectations. These targets reflect our commitment
to creating a safe and inclusive workplace.
S1-5_02
Tracking CCHBC’s performance
We conduct regular performance reviews for
each of the KPIs used, including the ones for
people. During those performance reviews,
different levels of the organisation are included.
Workers’ representatives are being involved in
DEI reviews in local discussions.
Group OH&S results are being communicated to
all CCH countries via regular Group meetings and
routines established with the business units; country
results are being communicated via country
meetings across the organisation (shift review
meetings, plant management and all employees’
meetings, etc.) and are also displayed in specific
communication boards across our plants.
S1-5_03
Lessons learned or improvements
as a result of CCHBC’s performance
We have introduced bi-monthly OH&S Lessons
learned meetings, where we present selected SIF
(Severe Injuries and Fatalities) and SIFp (events,
that have potential to become severe injury or
fatality – can be LTA or Severe Near Miss). Every
second month, we choose a few relevant SIF/SIFp
events and they are presented to all our countries.
Then each business unit should take proactive
action to avoid similar accidents from happening.
All documents are then uploaded on an internal
platform and shared again with all countries. Also,
we perform lessons learned from the major audit
findings where the respective country is required
to share their actions to improve.
We maintain strong collaboration with worker
representatives, both at the local level and
through the European Works Council (EWC),
which holds two select committee meetings and
one plenary meeting each year. No issues have
been reported in these engagements in 2024.
S1-6 – Characteristics
of CCHBC’s employees
S1-6_01-06 & S1-1_20
Records on recruitment, training and promotion:
We use specialised software integrated with our
business systems to keep up-to-date and detailed
records on recruitment, training and promotion.
Every employee is able to see their performance
review and data in the system. All new positions
are published transparently internally and externally.
Table 31: Total employee FTE by gender
Gender
2024
Number of employees (FTE)
Male
23,999
Female
9,019
Other
0
Not reported
0
Total employees
33,018
All data in the tables presents FTE (full-time
equivalent) calculation, and it is based on
International Financial Reporting Standards (IFRS).
We report full-year FTEs as the average number
of actual active employees occupying a position
either on permanent or temporary contract within
the reported period, converted into full-time
equivalents. Yearly reporting cycle is applied
(1 Jan 2024 – 31 Dec 2024).
Table 32: Total employee FTE in countries
where CCHBC has at least 50 employees
representing at least 10% of its total number
of employees
Country
2024
Number of employees (FTE)
Armenia
344
Austria
868
Belarus
1,132
Bosnia and Herzegovina
286
Bulgaria
1,576
Croatia
498
Cyprus
256
Czech Republic
798
Egypt
5,466
Estonia
65
Country
2024
Number of employees (FTE)
Finland
19
Greece
2,116
Hungary
960
Italy
2,074
Kosovo
112
North Macedonia (only
corporate office
employees)
3
Latvia
88
Lithuania
116
Moldova
136
Montenegro
23
The Netherlands
59
Nigeria
2,874
Northern Ireland
535
Poland
1,701
Republic of Ireland
289
Romania
1,504
Russia
5,522
Serbia
1,546
Slovakia
148
Slovenia
82
Switzerland
687
Ukraine
1,135
Τotal
33,018
(33,068 based on
Headcount)
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S1-6_07
Table 33: Information on employees by contract type, broken down by gender (head count or FTE)
FTE
Female
Male
Other Not disclosed
Total
Reporting year
2024
Total number of employees
9,019
23,999
0
0
33,018
Number of permanent employees
8,383
21,226
0
0
29,609
Number of temporary employees
636
2,773
0
0
3,409
Number of non-guaranteed hours employees
N/A
N/A
N/A
N/A
N/A
Number of full-time employees
8,920
23,974
0
0
32,894
Number of part-time employees
99
25
0
0
124
S1-6_11-12
Turnover is being calculated as the sum of voluntary and involuntary permanent leavers in the total
reporting period, divided by the average number of permanent active employees over the total
reporting period, multiplied by 100.
Table 34: Number of employees who left the Group and turnover rate
Reporting year
2024
Number of employees who left the Group
3,340
Employee turnover rate
10.53%
Number of employees who left the Group voluntarily
2,374
Employee voluntary turnover rate
7.48%
Number of employees who left the Group involuntarily
966
Employee involuntary turnover rate
3.05%
S1-6_13-15
All materially impacted FTEs are included in the disclosure.
All data presents FTE (full-time equivalent) calculation, and it is based on IFRS (International Financial
Reporting Standards).
Yearly reporting cycle is applied (1 Jan 2024 – 31 Dec 2024).
S1-6_16
The percentage of seasonal employees vs Total Group FTE: 1%, i.e., not significant variation
(mostly during the high season which is the summer season).
Region 1 includes the following countries: Austria, Czech Republic, Slovakia, Hungary, Republic
of Ireland, Northern Ireland, Poland, Estonia, Lithuania, Latvia, Switzerland. Region 2 includes the
following countries: Bosnia and Herzegovina, Slovenia, Croatia, Bulgaria, Greece, Cyprus, North
Macedonia, Romania, Serbia (including the Republic of Kosovo), Montenegro, Ukraine, Moldova,
Armenia. Region 3 includes the following countries: Russia, Nigeria, Egypt, Belarus.
S1-6_17
Employee-related costs are included in the Group’s consolidated income statement and are split
between cost of goods sold and operating expenses. For more information, please refer to Note 8,
page 268 of the ‘Financial Statements’.
S1-7 – Characteristics of non-employee workers in CCHBC’s own workforce
S1-7_01-03 According to ESRS S1-7 par. 55 (a) – PH (1)
Table 35: Number of non-employees in CCHBC’s own workforce (FTEs)
Number of non-employees in CCHBC’s own workforce
2024
Number of people with contracts with CCHBC’s to supply labour
(self-employed people)
19
Number of people provided by CCHBC’s primarily engaged in ‘employment activities’
(NACE code N78)
5,822
S1-7_06-08
Here we apply the same method as to our regular employees and that is reporting FTEs for the full year
as an average at the end of the reporting period.
S1-7_09
There is no significant fluctuation (less than 1%) between 2023 reporting period and 2024
reporting period.
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Sustainability Statement continued
S1-10 – Adequate wages
S1-10_01
Please see
S1. SBM-3_01-04, 06, 11 (Access to a living
wage part).
S1-11 – Social protection
S1-11_01-05
In all Established, Developing and Emerging
markets, basic benefits may be provided to
both full-time and temporary employees, in
particular in relation to labour rights and safety.
Stock ownership plans, where these are offered,
do not apply to temporary employees due to the
vesting periods (one year or more).
Benefit packages are provided according to
in-country guidelines and are available per
country. We do not disclose this information for a
single statement currently due to confidentiality.
S1-13 – Training and skills
development metrics
S1-13_01-04 & S1-1_22
Programmes to promote access
to skills development
We provide learning and development
opportunities for all our employees reflecting
a key pillar of our people strategy which is
democratised learning. In 2024, our learning
programmes covering leadership, functional
training, general business training and compliance
included 552,479 participations, across all
management layers.
S1-9 – Diversity metrics
S1-9_01-02
Table 36: Gender distribution in number and percentage at senior management level (our top
300/top 40 business leaders, including country function heads, Group sub-function heads and
the ELT, including the CEO)
Gender distribution in number and percentage at top management level
2024
(Headcount)
2024
(%)
Female
149
41%
Male
210
59%
S1-9_03-05
Table 37: Distribution of employees by age group
Distribution of employees by age group
2024
(%)
< 30 years old
16.4%
30 to 50 years old
67.0%
> 50 years old
16.6%
Our commitment to people development is
supported by our constantly evolving Talent
Review framework, which enables us to identify
successors for senior leadership roles.
We continued to optimise development tools,
such as STAY and career conversations, and
individual development plan guides. Talent
Builders was launched as a programme to support
all new people leaders on an end-to-end journey
dedicated to the essentials of recruiting,
developing and retaining people. We have
also focused on our critical growth capabilities,
introducing ‘x-ray’ reviews to proactively identify
where we need to invest in external hires or
internal capability development, which are
vital for sustainable business performance
and growth.
We offer a suite of academies that support
professional development of key sales roles.
Alongside new Premium Spirits and Coffee
Academies, we launched a Digital Commerce
Academy and relaunched our Sales Academy for
Key Accounts. We also launched MYcroLearnings
across all our markets as five-minute bitesize
online sessions offered every two weeks to our
entire sales force to reinforce foundational and
critical elements of sales capabilities.
When it comes to investing in our supply chain
talent, we launched the Supply Chain Academy
to approximately 95% of all supply chain
personnel across manufacturing, logistics,
quality, planning and procurement.
In 2023, we launched our Corporate Affairs and
Sustainability Academy, partnering with credible
European academia. The programme is long
term, continuing in 2024 and 2025.
Table 38: Percentage of employees who
participated in regular performance and career
development review by gender and average
number of training hours per employee
by gender.
Reporting year
Females
Males
2024
Percentage of employees
that participated in regular
performance and career
development review
76.8%
50.5%
Average number of
training hours per FTE
19.9
20.2
S1-14 – Health and safety metrics
S1-14_01 & S1-1_18
Our Mission is to provide a safe place of work
for all our employees, contractors, visitors and
individuals under our supervision, with a target of
zero accidents across all our operations and sites.
For this reason, the following policy is applicable
to Coca-Cola HBC employees, contractors,
visitors and individuals across all our operations
and sites (i.e., 100% of CCH people working in
our premises are covered, including contractors
working in our premises). We deliver our OH&S
policy programme through a structured
implementation of the occupational health
and safety management system ISO 45001.
Adjustments for disabilities: in every office
and manufacturing plant we have facilities
adjusted for people with disabilities, such as
ramps, lifts and toilets.
We have established several Healthy working
environment initiatives focusing on ergonomic
workplace, illumination, noise, indoor air quality
and humidity. For each of these, specific design
requirements are described in our Engineering
Specifications, and regular trainings are offered
to the employees (e.g., via specific Toolbox Talks).
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S1-14_02-09
Table 39: Health and Safety KPIs
Type of own workforce
Employees
Non-
employees
Reporting year
2024
Number of fatalities as
a result of work-related
injuries and work-related
ill-health
1
0
Number of recordable
work-related accidents
100
0
Rate of recordable
work-related accidents
1.52
0
Number of cases of
recordable work-related
ill-health, subject to legal
restrictions on the
collection of data
0
0
Number of days lost
to work-related injuries
and fatalities from
work-related accidents,
work-related ill-health and
fatalities from ill- health.
2,009
0
S1-14_10, 11
We implement an occupational health and safety
management system. 100% of our manufacturing
sites are certified in ISO 45001, and 100% of our
direct operations are covered by the internal
Health and Safety audit process, to assure full
compliance with the local health and safety
standards and our internal requirements.
All our business units are covered by the
internal health and safety management system,
including manufacturing plants, offices, sales
offices, our own distribution centres and
warehouses, the contractors working in
our premises or third-party contractors.
S1-16 – Compensation metrics (pay gap
and total compensation)
S1-16_01
Table 40: Gender pay gap includes base salary,
short- and long-term cash incentives;
excludes benefit in kind
Reporting year
2024
Gender pay gap (%) based on average
-38.8%
Gender pay gap (%) based on median
-38.6%
S1-16_02, 03
Table 41: Annual total remuneration ratio
Reporting year
2024
Annual total remuneration ratio (%)
5700
Since CCHBC operates across diverse markets including emerging
ones, the calculation is based on total remuneration compared
against workforce based in Switzerland.
More information is available in the ‘Corporate
Governance’ section, ‘Directors’ remuneration
report’, ‘CEO pay ratio’, on page 245.
S1-17 – Incidents, complaints and severe
human rights impacts
S1-17_01-02 According to ESRS S1-17 par. 103 (a)
Table 42: Total number of incidents of
discrimination, including harassment
reported in the reporting period
Reporting year
2024
Total number of incidents of
discrimination, including
harassment reported in the
reporting period
6
(20 reported, 6
confirmed and 14
unsubstantiated)
S1-17_03-05, 07
Table 43: Number of complaints* filed through
channels for employees to raise concerns
(including grievance mechanisms) and number
of complaints filed to National Contact Points
for OECD Multinational Enterprises
Reporting year
2024
Number of complaints filed through
channels for employees to raise
concerns (including grievance
mechanisms)
580**
Number of complaints filed to
National Contact Points for OECD
Multinational Enterprises
0
* Please note that in some countries in which CCH operates,
there are different complaint processes and people may
need to approach other authorities to file a complaint,
so some complaints may not be included above.
** 580 is the total number of complaints (all issue types)
excluding the 20 reported as harassment/discrimination.
S1-17_08-12 & S1-17_14
In 2024, there were no findings of human rights
violations related to our employees, and no severe
human rights incidents occurred during the
reporting period. As a result, no remediation
actions or fines were required.
S1-17_13- V
We received 20 cases of alleged discrimination:
six of the matters were investigated in accordance
with Company policies and procedures and were
found to be substantiated. The Company took
immediate action, and the matters have been
resolved; the other 14 of the matters were
investigated in accordance with Company
policies and procedures and were found to be
unsubstantiated. The matters have been resolved,
and no further action is required. Initiatives to
promote an inclusive workplace with appropriate
leadership behaviours include inclusive leadership
modules available in several of our local languages.
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Sustainability Statement continued
Strategy
SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model
S2.SBM-3_01, 02, 03, 05, 06
At CCHBC, all value chain workers who may be
materially impacted by our operations are included
in the scope of disclosures under ESRS 2. This
encompasses addressing impacts linked to our
own operations and value chain, including those
arising from our products, services and business
relationships. We specifically report on key areas
such as secure employment, adequate wages,
health and safety, gender equality, equal pay for
work of equal value, and training and skills development.
Types of value chain workers
We consider value chain workers, workers working
on our sites, but who are not part of own workforce,
i.e., who are not self-employed workers or workers
provided by third-party undertakings primarily
engaged in employment activities. In essence:
• They are outsourced to a separate company
that manages its own staff;
• Coca-Cola HBC does not directly control the
workers; instead, it has a business relationship
with the service provider;
• The responsibility for managing and
employing the workers lies with the service
provider, even if the work is performed
at CCHBC’s premises;
• The external service provide retains
responsibility for hiring, managing and
supervising, and CCHBC has a business
relationship with the service provider,
not the individual workers.
Examples include pickers and forklift drivers in our
warehouses, workers sorting our empty reusable
bottles at our plant facilities, cleaning services
workers and workers working at our wastewater
treatment facilities in the plants and drivers of
the delivery trucks by our outsourced logistics.
We also consider value chain workers, a variety
of workers in the supply base that execute various
activities either in an office context or within the
agricultural sector and industrial sectors. Our
supply base focus is Tier 1 suppliers and aspire to
cover for the Tier 2 or below suppliers through the
Supplier’s commitment on SGPs or PSA in the
case of agricultural ingredients. In Coca-Cola HBC,
100% of vendors must acknowledge acceptance
of CCH SGPs before they can proceed to work
with us across sectors and sourcing categories
and are monitored on compliance through various
tools depending on complexity and criticality of
their operations. Specifically, the Strategic Group
Suppliers, we actively ask them to confirm ESG
compliance including social and human rights
attributes, for their critical supply base, i.e. T2 layer
or below for CCH. This equally includes white and
blue collar works across industries. Specifically for
agricultural suppliers, we aspire to cover 100% of
our supply base through PSA certifications provided
by third-party specialists, which are specifically
covering through audits, the practices of farmers
and their positioning towards workers of the land
such as SAI FSA, ISCC Plus, BONSUCRO, REDcert2,
Rainforest Alliance, FairTrade International, Global
GAP+GRASP, Global GAP+FSA Add-On, UNILEVER
SAC, etc.
Our negative effect
We have no widespread or systemic material
negative impacts on value chain workers in
contexts where we operate. Regardless of the
high occupational health and safety standards we
require by our contractors and service providers,
we still report lost time accidents which is the
reason to consider negative impact there. Any
occupational health and safety incidents are
individual. One value chain worker’s fatality
was reported in 2024. The contractor lost-time
incidents frequency rate (LTIFR) in 2024 is
decreasing to 1.31 compared to 1.72 in 2023.
ESRS S2 – Workers
in the value chain
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Sustainability Statement continued
Brief description of the activities that
result in the positive impacts
In general
People who are considered as value chain workers,
such as staff of third-party service providers,
(e.g., for security or canteens), who work at our
facilities are part of our OH&S, Food Safety,
including WASH (clean water and sanitation)
access, and Environmental programmes. In
addition, they are included in all our Workplace
Accountability audits, which are conducted
through an internationally recognised and
accredited auditing organisation. The audits
specifically cover third-party contracted labour
in our premises. Third-party logistics workers
(warehouse, transport and distribution) are also
mandated to follow our quality, health and safety
and environmental standards.
At CCHBC, we have a robust programme in
place to annually review every year the risks
and performance of all our suppliers against
our Supplier Guiding Principles (SGPs), Principles
for Sustainable Agriculture (PSA), Water Risk
Assessment, as well as other equally important
aspects with impact on our business, such as
supply risk and financial stability. Sustainability is
a key criterion in supplier selection under strategic
sourcing, as well as a criterion for the Annual
Supplier Review process that we conduct
cross-functionally for critical supply base.
To ensure that suppliers demonstrate ESG
requirements compliance, we rely in multiple
screening and assessment practices that offer us
a holistic view of their performance, leveraging
multiple tools depending on Supplier categorisation,
criticality and impact to our business. The Sustainable
Agriculture programme secures ESG monitoring
through PSA certification process of the Coca-
Cola System across all agricultural commodities.
For the remaining supply base, we have designed
a robust assessment journey leveraging ESG
physical audits, as well as a number of globally
recognised screening and assessment tools,
such as EcoVadis IQ Plus, EcoVadis Assessments,
SEDEX, Supply Based Assessment executed by
specialist consultants for Group Critical suppliers,
WWF Water Risk Filter Assessment, Resilinc Event
Watch, Exiger and Moody’s Analytics.
One of our Mission 2025 commitments is to ensure
that 100% of our key agricultural ingredients (sugar,
high fructose starch syrup (HFSS) and Juices fruit
crops) are certified by third-party organisations that
specialise in agricultural practices providing trainings
and implementing audit to secure appropriate
implementation of our standards. For full compliance
with our PSA, we require our agricultural suppliers to be
assessed and certified in accordance with third-party
standards, depending on the relevant ingredient.
For a comprehensive list of standards, please refer
at the text above ‘Types of value chain workers’.
Furthermore, ingredient and packaging suppliers
must meet GFSI recognised standards, and Tier 1
suppliers are prompted to comply with ISO 9001,
ISO 14001 and ISO 45000 as applicable depending
on their industry specifics, as well as impact and
criticality to our business.
Finally, we target over 95% of our procurement
addressable spending to be on local suppliers
in our countries of operation (local sourcing). In
2024, we had 97.7% sourced locally representing
around €5.3 billion (excluding concentrate supplies)
of procurement addressable spend. Supply within
European Union we define as local to EU countries.
Through our socio-economic impact studies (SEIS),
we evaluate the direct, indirect and induced impact
we have from suppliers to our trade partners and
our contribution is significant, especially in
emerging markets. The latest SEIS shows that
every direct job in our system leads to 13 jobs in the
value chain, and in many of the countries where we
operate, our contribution to the beverage industry
is significant.
For the supplier workforce, we secure equal
access employment, adequate wages, health
and safety, gender equality and equal pay for
work of equal value, training and skills development
through the application and compliance tracking
of the supplier SGPs and PSAs.
Workers in the value chain are supported with
training and capability building programmes
offered by supplier organisations and Coca-Cola
HBC to develop understanding of the sustainability
elements and positive impacts and are supported
to operate in a new innovative manner that secures
smooth transition to climate-neutral operations
without the loss of jobs. This is a journey of
transition that takes time, but we work with our
most significant suppliers to support and record
improvement. Gradually jobs are transformed to
support the new models and secured at a minimum,
while in many cases we detect the creation of new
positions and opportunities by supplier organisations
to support the climate transition.
Access to education
Since 2023, we have established annual trainings
delivered both to our buyers and our significant
suppliers on various topics, including ESG
requirements, actions to improve ESG scoring,
the importance of sustainability, the EcoVadis
Assessments, deforestation, modern slavery
and GHG emissions.
For strategic suppliers, we aim to recruit them all
under the EcoVadis Assessment Platform to track
ESG overall performance and, with the support
of the EcoVadis team, we promote the use of the
EcoVadis Academy to help vendors build better
knowledge of important ESG elements.
We place specific focus on developing GHG
performance tracking for our supply base,
starting with a pilot programme for the
development of supplier-specific emission
factors (SSEFs) with our most sustainably
mature suppliers that is now planned to be
expanded within 2025 to a much broader supply
base. For less mature suppliers, since 2022 we
have been working with Guidehouse on capacity
building programmes, offering training through
the Supplier Leadership on Climate Transition
(SLoCT) programme annually. This initiative helps
our less mature suppliers build a strong foundation
to start reducing GHG emissions.
In November 2023, we held our second Virtual
Supplier Sustainability Event, ‘Opening up a more
sustainable future together’, where we invited all
our Group critical suppliers to discuss emissions
reduction, biodiversity and deforestation. Over
400 participants from nearly 200 suppliers,
Coca-Cola System colleagues, and trade partners
attended our virtual Supplier Day conference.
Our partners, CDP and the World Economic
Forum, provided expert guidance, tools and
tips for suppliers on climate action. Additionally,
our suppliers Nordzucker, Ball Corporation and
Graphic Packaging International shared their
sustainability progress. In 2024, we expanded
upon this initiative, engaging with our key suppliers
on GHG performance. Through this engagement
we have begun developing emissions glidepaths
to enhance supplier emissions performance,
aiming to meet our scope 3 targets.
For more information about Annual stakeholder
forum please refer to SBM-2_05, 06.
Read more
Contribution to employment
Please see
S1. SBM-3_01-04, 06, 11 (Contribution to
Employment
Accessibility to a living wage
We expect our suppliers to compensate their
employees fairly and competitively within their
industry, fully complying with applicable local
and national wage and hour laws. Additionally, we
encourage our suppliers to provide opportunities
for employees to develop their skills and capabilities,
and to adhere to the principle of equal remuneration
for men and women workers for work of equal value.
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Sustainability Statement continued
We aspire to secure correct practices towards
supplier workers through the SGPs and PSA
implementation. In Coca-Cola HBC, 100% of our
suppliers are obliged to acknowledge and agree to
the SGPs before obtaining the right to do business
with us, while we apply different monitoring
tools to track compliance depending on supplier
category and impact to our business ranging
from ESG performance tracking by means of tools
such as EcoVadis IQ Plus all the way to full scale
assessments such as EcoVadis Assessment,
SEDEX and SGP physical audits. On agricultural
level, we leverage our third-party specialists to
conduct audits against the PSA principles, that
are covering in an extensive manner all rules
and requirements to secure farmer workers.
Provision of social protection and social security
Contractors who work on our premises are
included in our programmes and workplace
accountability audits, conducted within a
three-year audit cycle. During these audits, they
are assessed on human rights, and compliance
with local minimum wage laws is verified by an
external company. The workplace accountability
audits cover various areas, including laws and
regulations, wages and benefits, working hours
and overtime, business Integrity, work environment,
health and safety, environmental practices and
demonstration of compliance.
Occupational Health and Safety
In the context of our implementation of
Occupational Health and Safety Management
System (ISO 45001), we take actions which have
in scope value chain workers.
We implement health and safety programmes,
including Behavioural Based Safety and Life
Saving Rules:
• We enhanced our behaviour-based safety
programme by embedding more human and
operational principles across manufacturing
and non-manufacturing locations.
• We ensured Life Saving Rules are in place and
incorporated in our cross-country verification
programme. We conducted quarterly
assessments of all manufacturing and non-
manufacturing facilities. Based on these
assessments, each country has developed its
own corrective actions to address critical gaps
and achieve full compliance.
Value chain workers in greater risk of harm
The service provided workers performing a job
at our premises are part of the same rigorous
hazardous analysis related to the occupational
health and safety, as our employees, e.g., confined
space work, work at height, electrical work, etc.
Based on those analysis and based on the external
occupational health and safety guidelines, we
know the jobs that potentially can lead to severe
OH&S incidents and thus we set up specific
measures to mitigate the potential risks and
avoid the incident to happen.
Impact, risk and opportunity management
S2-1 Policies related to value chain workers
S2.MDR-P_01-06 & S2-1_06
The relevant policies adopted to manage material
sustainability matters include our Occupational
Health and Safety Policy and Principles for
Sustainable Agriculture (PSA), as well as our
Supplier Guiding Principles, which have been
adopted as part of ongoing effort to develop
and strengthen our relationships with our direct
suppliers. These policies cover all types of value
chain workers mentioned in the previous section.
Occupational Health and Safety Policy
Please see
S1.MDR-P_01-06 & S1-1_01, 02, 09, 10, 11, 12, 13,
14, 16, 17, 21
Supplier Guiding Principles
Key contents of the policy
The ‘Supplier Guiding Principles’ includes
expectations regarding CCHBC’s suppliers to:
• judge their employees and contractors based
upon their ability to do their jobs and not upon
their physical and/or personal characteristics
or beliefs, affirming the principle of no
discrimination based on race, colour, gender,
age, religion, political opinion, national origin
or sexual orientation;
• provide a safe workplace with policies and
practices in place to minimise the risk of
accidents, injury and exposure to health risks;
• compensate their employees fairly and
competitively relative to their industry, in full
compliance with applicable local and national
wage and hour laws, and to offer opportunities
for employees to develop their skills and
capabilities, and to follow the principle of equal
remuneration for men and women workers for
work of equal value.
Objective
Through this policy, we seek to develop
relationships with suppliers that share similar
values and conduct business in an ethical manner.
Process for monitoring
Regarding the process for monitoring this policy,
in Coca-Cola HBC 100% of our supplier are
obliged to acknowledge and agree to the SGPs
before obtaining the right to do business with us,
while we apply different monitoring tools to track
compliance depending on supplier category and
impact to our business. To this purpose we use
various tools, ranging from EcoVadis IQ Plus all the
way to full scale assessments such SGP physical
audits, SEDEX and EcoVadis Assessment. We
collaborate with TCCC, which routinely utilises
independent third parties to assess suppliers’
compliance with the Supplier Guiding Principles.
The assessments include confidential interviews
with employees and on-site contract workers.
Scope
As part of ongoing efforts to develop and
strengthen our relationships with suppliers, we
have adopted these Supplier Guiding Principles
for use with our direct suppliers.
Most senior level accountable for the
implementation of the policy
Each sustainability policy is approved by the CEO
and the ELT and endorsed by the Social Responsibility
Committee of the Board. The Chief Supply Chain
Officer and Chief Procurement Officer are
accountable for the implementation of the policy.
Commitment to respect third-party standards
We commit through the implementation
of Supplier Guiding Principles to respect
applicable laws and standards with respect
to their operations (e.g., ILO Standards, etc.)
Consideration given to the interests of key
stakeholders in setting the policy
In developing the SGP, we have considered
international standards such as ISO 14001,
ISO 45000, the ILO and the UN Principles.
We have also considered the requirements of
investors and ESG raters such as S&P Global,
MSCI ESG and CDP as well as the practices
of peer companies who are part of UNESDA
and BIER (Beverage Industry Environmental
Roundtable). Additionally, we have incorporated
good practices recommended by NGOs such
as WWF, and input from our suppliers.
Policy available to potentially
affected stakeholders
All policies are available on our website.
At business unit level, they are translated and,
additionally, suppliers are mandated to sign our
SGP, which is included as part of our contracts.
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Sustainability Statement continued
Principles for Sustainable Agriculture
Key contents of the policy
The Principles for Sustainable Agriculture (PSA)
describe the Company’s principles for sustainable
agriculture based on environmental, social and
economic criteria. The Human and Workplace
Rights principles apply to all workers on the farm,
industrial processes associated or transport
services. All direct suppliers, intermediary
processors, producing farms and labour agencies
are expected to respect human rights and the
below principles in line with international human
rights principles and TCCC Supplier Guiding
Principles. This policy covers topics, such as ‘Work
Hours and Livelihoods’, ‘Eliminate Discrimination’
and ‘Health and Safety’, among others. For more
information, please visit the Principles for
Sustainable Agriculture (PSA).
Objective
Through ‘Principles for Sustainable Agriculture
(PSA)’ we aim at primary production – that is,
farm-level – and form the basis of our continued
engagement with suppliers to achieve productivity,
compliance, transparency, resiliency and continuous
improvement of their farm base against these
principles. On an agricultural level we leverage our
third-party specialists, such as SAI/FSA, VIVE,
Bonsucro, etc., to conduct audits against the PSA
principles, that are covering in an extensive
manner all rules and requirements to secure
farmer workers. The results are represented
to us by means of certifications obtained, that
otherwise would not be awarded to our suppliers
when discrepancies occur. We collect these
certifications on an annual basis.
Process for monitoring
We monitor compliance through EcoVadis
assessment and action plans, TCCC audit
process and sustainable certification schemes.
Scope
The PSA, as a set of global principles, applies to all
agricultural ingredients and plant-based packaging
used in TCCC products.
For our significant suppliers with substantial
potential environmental impact, we also prompt
and request that they embrace CDP for Climate,
Forest and Water for disclosure of more detailed
information and that they also build their own
SBTi/SBTN commitments. So far, we have
recruited 187 significant suppliers under CDP
of which 119 have approved or committed to
the SBTi and continue to build on this further
by actively engaging, discussing and tracking
progress with the support of TCCC.
Most senior level accountable for the
implementation of the policy
Each sustainability policy is approved by the
CEO and endorsed by the Social Responsibility
Committee of the Board. The Chief Supply
Chain Officer and Chief Procurement Officer are
accountable for the implementation of the policy.
Commitment to respect third-party standards
The Company has approved a limited set of global
third-party Sustainable Agriculture Standards as
aligned with the expectations outlined in the PSA,
among them is the ILO recommendations.
Consideration given to the interests of key
stakeholders in setting the policy
Having a secure, sustainable supply of agricultural
ingredients is imperative to meeting the expectations
of our consumers, customers and other stakeholders
– and to enabling the continued growth of our
Company. In this context, the PSA reflects the
most recent science and external stakeholder
perspectives, covers new product categories
and simplifies language, where possible.
Policy available to potentially affected stakeholders
All policies are available on our website. At BU
level, they are translated and available at the
local website.
S2-1_01-04, 08, 09 & S2-4_11
Human Rights Policy commitments
Commitments
Please see
S1.MDR-P_01-06 & S1-1_01, 02, 09-14, 16, 17, 21
Our ‘Supplier Guiding Principles’ apply to our
suppliers and are aligned with the expectations
and commitments of the Human Rights Policy.
The Supplier Guiding Principles are aligned with
internationally recognised instruments. If the
eight Core Conventions of the International Labour
Organisation establish higher standards than local
law, the supplier shall meet the ILO standards.
These minimum requirements are part of all
agreements between CCHBC and our direct
suppliers. For more information, please visit Human
Rights Policy and Supplier Guiding Principles.
With regards to ‘Principles for Sustainable
Agriculture (PSA)’, human rights are based on
the same guiding instruments too. We require
compliance with those principles.
Processes for monitoring compliance
with international instruments
Our Human Rights Policy is applicable to our
suppliers, partners, contractors and 3PL logistics
partners. Compliance is monitored through
certifications and Workplace Accountability
Audits. We monitor the performance of our
significant suppliers through our annual internal
supply base assessments, third-party audits of
compliance, the EcoVadis IQ Plus Tool and
EcoVadis Risk Assessment platform. EcoVadis
helps us monitor, assess and benchmark a range
of risks using 21 criteria from international
standard setters, including the UN Global
Compact, ISO 26000, the Global Reporting
Initiative (GRI), and the International Labour
Organisation (ILO). Based on the findings of
the audits, wherever human rights issues were
identified, we engaged with our suppliers to
prepare corrective action plans. We monitor
the progress and conduct audit within the year
to secure no recurrence. In 2021, we revisited
our Procurement Assessment guidelines to
implement stricter rules over Human Rights,
Ethics and Compliance practices expected from
our suppliers and re-trained our entire Buyers’
community to the Sustainability Risk Assessment
tools available for supplier selection and governance.
We expect our suppliers to develop and implement
appropriate internal business processes to ensure
compliance with the Supplier Guiding Principles.
Suppliers are 100% obliged to acknowledge
acceptance and adherence to the SGPs before
commencing any collaboration with Coca-Cola
HBC across all our business units. We track
adherence to SGPs by leveraging third-party tools
such as EcoVadis IQ Plus to full scale audit tools
like EcoVadis Assessments, SEDEX and collaborate
with TCCC, which routinely utilises independent
third parties to assess suppliers’ compliance with
the Supplier Guiding Principles by means of
physical audits, depending on the criticality
of their business to our operations. All these
activities are repeated by the Procurement
team on annual basis. We apply the principle of
three-year audit cycle for compliant suppliers,
while for those suppliers with audit recommendations,
any findings are addressed within maximum
12 months. Our Procurement teams across
business units are trained on annual basis to
assess risks, recruit suppliers under appropriate
risk assessment mechanisms and ensure action
plans are in place as needed. We track supplier
performance and follow KBIs that indicate our
progress on annual basis.
Respect for the human rights, including
labour rights of workers
We are committed to identifying and preventing
any adverse human rights impacts in relation to
our business activities through human rights due
diligence and preventive compliance processes.
Moreover, regarding labour rights of our value
chain workers, we are committed to supporting
fair workplace practices, ensuring a fair work
environment, and providing fair wages and benefits.
Cases of non-respect to international instruments
There are minor findings identified under the UN
Guiding Principles on Business and Human Rights,
the ILO Declaration on Fundamental Principles
and Rights at Work or the OECD Guidelines for
Multinational Enterprises that involve value chain
workers have been reported in our upstream and
downstream value chain as follows.
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Sustainability Statement continued
For details you may also refer to sections 407.1,
408-1, 409-1, 414-1 and 414-2 of the 2024 GRI
report. Summary of findings for which we have
also mobilised correction actions plans.
Findings identified by third-party audit to
Supplier Guiding Principles
• Health and safety: a) Nigeria: lack of personal
protective equipment (PPE) and safeguards on
machines and vehicles; inadequate number of
restrooms on premises; improper ventilation
and lighting, b) Czech Republic: missing elements
in risk assessments for welding operators; fire
equipment access blocked; chemical storage eye
washer not properly drained, c) France: lack of
dust measurements in production area; lack of fire
permit certificate and drills not duly conducted,
d) Germany: lack of fire safety; unproperly marked
emergency exits; inadequate number of first aid
supplies; improper labeling; lack or handrails or
protective guards; improper temperature, noise,
ventilation, e) Poland: blocked emergency exits;
improper storage and labeling; missing elements
of occupational risk assessment for electricians,
f) Serbia: fire alarm not fully operable; improper
emergency lines; missing inspection records, g)
Spain: missing inspection records; inadequate
lighting levels for emergency evacuations; blocked
evacuation exits; missing first aid kits; missing fire
safety certification, h) Switzerland: emergency
exits finding; lack of evacuation plans and machine
safeguards; lack of fire certifications; improper
storage and labeling, i) United Kingdom:
missing fire certification; gaps in occupational
risk assessments.
• Wages and benefits: a) Nigeria: overtime
compensation violation; mandated maternity
leave not provided; missing pay slips, b) Germany:
not providing or not paying changing time for
workers; unintentional payroll calculation errors
in some cases.
• Discrimination: a) Spain: difference in wages
between people performing same work;
preferential religious accommodations.
• Laws and regulations: a) Spain: policies regarding
wages and benefits not properly communicated,
b) Nigeria: workers age documents not available;
labor contracts missing in some cases; some
terms not available in local language, c) Czech
Republic: working contracts only in local
language, including foreign workers, d) France:
missing GDPR clause in contracts; missing
grievance policy, e) Switzerland: missing
operating license for some buildings in the
same campus.
• Working hours and overtime: a) Switzerland:
insufficient break time, b) United Kingdom:
incorrect calculation of holiday pay by contractor;
logistics contractors employment contracts do
not respect overtime and working hours legal
standards, c) Nigeria: insufficient break time for
workers; rest-day violations, d) France: missing
calculation method for compliance on obligatory
breaks for on-call employees, e) Germany:
violation of working hours for night-shifts, youth
workers and women, f) Spain: some people don’t
not have a record of start-end time.
• Forced labor: a) Nigeria: a supplier’ s workers
incurred a requirement to pay placement fee.
Findings identified by EcoVadis
Types of findings which include both freedom of
association and other social elements such as:
health & safety incidents, wages & benefits,
working hours and overtime, labor contracts,
missing actions regarding diversity, equity &
inclusion, lack of supporting documentation
against declared practices and polices etc.
All findings have been addressed, and an action
plan is already in place. Suppliers need to close
all actions before the next audit and no later
than 12 months, otherwise their contracts
may be suspended.
The number of human rights violations resulting
in litigation against the Company was zero in 2024.
S2-2 Processes for engaging with value chain
workers about impacts
Through our ‘SpeakUp!’ line, available for both our
employees and externally to everyone, we are able
to see any comment or concern. The contacts of
our company are easily available on the website and
on the labels of our finished products. Through
regular meetings with suppliers, through interviews
by the external auditors they do with contractors
during the ISO and Workplace accountability audits,
and via the Work Councils we are also able to take
into consideration the value chain workers’ view.
The engagement as described above is done with
the value chain workers directly during the ISO
and Workplace Accountability audits’ interviews,
and in case of any signal on ‘SpeakUp!’ line, or
through credible proxies that have insight into
their situation such as NGOs or Work Councils.
We engage with our suppliers through the feedback
received from our Group Annual Stakeholder
Forum, as well as through the regular, ongoing
interaction with the Coca-Cola System’s central
procurement group and our technology and
commodity suppliers.
For contractor workers and health and safety,
we have implemented standardised contractual
clauses including health and safety requirements.
All contractors working for CCH must have a
health and safety induction training, specific
for our premises. There are regular routines
established with all contractors at the local
business unit level, addressing not only OH&S
topics. We do also an annual vendor evaluation
where all contractors working at our premises
are assessed based on different criteria including
health and safety ones. After each external or
internal audit, we address any improvement
opportunity via an action discussed and agreed
with contractors. Each severe OH&S incident
or fatality is followed by a lesson learned session
with the respective contractor/service provider.
Most senior role that has operational
responsibility for ensuring that engagement
with value chain workers happens
For suppliers, the Chief Procurement Officer
has the most senior role with operational
responsibility for ensuring that engagement
with value chain workers happens. Under this
role, at the operational level, this includes all
Strategic Procurement Managers and the local
Procurement Managers in every business unit.
For contractors and 3PL Logistics contractors,
the Chief Supply Chain Officer has operational
responsibility for ensuring that this engagement
happens. Under this role, the responsibility lies
with the Head of Logistics, Head of QSE, Head
of Health and Safety, and at local business unit
level, with the country/business unit.
S2-2_05
We respect workers’ rights (in the value chain)
to form, join or not join a labour union without
fear of reprisal, intimidation or harassment, where
they are represented by a legally recognised union,
establish a constructive dialogue with their freely
chosen representatives and bargain in good faith
with such representatives. We do not control this
engagement, and we do not interview someone
directly. In case suppliers do not follow this
approach, CCHBC can cancel the contract.
S2-2_06
We assess indirectly the effectiveness of our
engagement with workers in the value chain,
in three ways, through audit results, score
on questions related to suppliers from ESG
raters and the number of grievances from
the ‘SpeakUp!’ line.
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Sustainability Statement continued
S2-2_07
For CCHBC’s workers in the value chain who
may be particularly vulnerable to impacts and/or
marginalised (for example, women workers, migrant
workers, workers with disabilities), we use our
grievance mechanism to gain insights and we review
the results of the audits. OH&S risks and hazards
are assessed for each worker as required by our
standards and ISO 45001, and there the specifics
of the vulnerable groups of people is considered.
S2-3 Processes to remediate negative
impacts and channels for value chain
workers to raise concerns
S2-3_01-06 & S2-1_03 & S2-4_04
Please see
S1-3_01, 02, 05-09 & S1-1_21
Tracking and monitoring of issues raised and
addressed and ensuring the effectiveness of
the channels
Please see
S1-3_01, 02, 05-09 & S1-1_21
Protection of individuals against retaliation
Suppliers who believe that an employee of CCHBC,
or anyone acting on behalf of CCHBC, has engaged
in illegal or otherwise improper conduct, should
report the matter to the Company. We would also
encourage all our suppliers to freely raise any
issues of compliance or ethics you come across in
our company and feel confident that your concerns
will be taken seriously and handled appropriately
by CCHBC. Concerns should be raised initially
with the employee’s manager in CCHBC or
with CCHBC Head of Legal Compliance at
compliance@cchellenic.com, or our ‘SpeakUp!’ line
can be used at www.cocacolahellenic.ethicspoint.
com. We do not tolerate a reprisal by any of our
employees against suppliers for reporting a concern
in good faith or assisting with an investigation.
Please see
S1-3_01, 02, 05-09 & S1-1_21
To assess that value chain workers are aware of
and trust these structures or processes to raise
their concerns or needs and have them addressed,
we monitor the responses in our ‘SpeakUp!’ line
and audit reports.
S2-4 Taking action on material impacts
on value chain workers, and approaches to
managing material risks and pursuing material
opportunities related to value chain workers,
and effectiveness of those actions
S2.MDR-A_01-05 & S2-4_01-07, 10
A summarised description of the action plans
and resources to manage our material impacts
related to value chain workers in relation to
material sustainability matters we have
identified, is presented below:
Occupational Health and Safety Policy
Key actions taken
For our actions related to health and safety,
Please see
S2.SBM-3_01-03, 05, 06
Expected outcomes
Through these actions, we aim to provide and maintain
a healthy and safe working environment by eliminating
hazards, reducing health and safety risks and raising
awareness among suppliers and their workers who
may be affected by business-related activities.
How their implementation contributes to the
achievement of policy objectives and targets
The implementation of the actions contributes
to the achievement of Occupational Health and
Safety Policy objectives to provide and maintain
a healthy and safe working environment.
Scope of the key actions
The scope of key actions taken includes:
• distribution and logistics
• suppliers, service providers and contractors
• other key business partners (including co-
parkers, joint ventures, etc.)
Time horizons under which CCHBC intends
to complete each key action
Time horizons for key actions that we presented
in people in our own workforce are the same for
workers in the value chain (please refer to S1).
S2-4_05_06_07
As the negative impact is solely related to the lost
time accidents we have with contractors, the
actions to reduce and eliminate any potential
health and safety incidents include establishing
the same requirements for safety rules for our
contractors as for our own employees. We have
implemented standardised contractual clauses
including health and safety requirements to our
contracting companies, so our health and safety
requirements are incorporated in the specific
types of contracts. We require in the contract
all our contracts to meet our safety standards.
Health and safety requirements are communicated
to contractors during the RFP process (vendor
selection). There is a specific TCCC KORE
requirement document in place for all business
units, and they need to comply with it (subject to
GAO audit). Contractors are included in our key
health and safety programmes and initiatives,
including BBS and LSR assessment.
Our Behavioral Based Safety programme is
implemented for contractors working within
our premises, plus in some high-priority business units
we have established BBS programme in RTM area,
with the regular performance monitoring and tracking.
We are continuously searching for innovations and
technologies to support health and safety in dedicated
working areas, preventing LTAs of contractors, too.
Our LSR (Life Saving Rules) programme has a
dedicated section for Contractors management
(requirements) and every facility conducts
quarterly self-assessment of the compliance,
followed by dedicated Corrective Action Plan. All
contractors working for CCH must have health and
safety induction training specific to our premises.
Overall, we have in place regular tracking of
health and safety performance of our contractors,
including leading and lagging indicators. We mainly
take actions to avoid causing or contributing to
avoidance of workplace injuries and fatalities and
when this is not possible to provide or enable
remedy in the event of these injuries and fatalities.
Table 44: Quantitative and qualitative
information regarding the progress of
key actions or action plans disclosed
in prior periods
Health and safety
programme
KPI
2023
2024*
Behavioural
Based Safety
programme
Elimination
of barriers
to safety
80.3% 86.1%
Compliance with
Life Saving Rules**
Compliance with
Life Saving Rules 84.7% 86.8%
* The numbers disclosed for 2024 are for all employees and
contractors together.
** LSR implementation score includes the total for all 14 areas in the
questionnaire, not just contractors.
KPI
2023
2024
Number of Contractors trained as
BBS Observers
740
1,251
Total Contractors trained as BBS
Observers cumulatively since 2019
1,969
3,220
This improvement reflects our ongoing
commitment to enforcing critical safety protocols
and underscores the effectiveness of our training
and awareness initiatives. The reduction in safety
incidents and the improvement is leading
indicators highlights the programme’s impact
on creating a safer working environment.
Additional actions with the primary
purpose of delivering positive impacts
for value chain workers
All actions we take are key actions aiming to avoid
any OH&S incidents to happen, so there are no
additional/secondary actions that are taken for
value chain workers.
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Supplier Guiding Principles
Key actions taken
100% of our suppliers are obliged to
acknowledge and agree to comply with
the SGPs before commencing any work with
Coca-Cola HBC. From that point onwards
we monitor supplier compliance to the SGPs
leveraging different tools from EcoVadis IQ Plus risk
monitoring system to full scale assessments such
as EcoVadis Assessment, SEDEX, PSA Certifications
and physical audits on SGPs in supplier premises,
depending on the supplier criticality, complexity and
impact to our business. The Supplier Assessment
exercise is repeated on an annual basis and the
results are disclosed. Our buyers are trained on
annual basis how to assess supplier risks, recruit
under EcoVadis platform and ensure action plans
exists and are duly tackled as necessary.
Expected outcomes
We aim to achieve full compliance with these principles.
How their implementation contributes to the
achievement of policy objectives and targets
The implementation of these principles contributes
to our objective to have all our business operations
and activities respecting human rights and
to managing our business with a consistent set
of values that represent the highest standards
of quality, integrity, transparency and excellence.
Scope of the key actions
As part of our ongoing effort to develop and
strengthen our relationships with suppliers, we
have adopted these Supplier Guiding Principles
for use with our direct suppliers (upstream).
Time horizons under which CCHBC intends
to complete each key action
Compliance with SGPs is a rolling target, so the
actions that are taken to achieve it are ongoing.
Quantitative and qualitative information
regarding the progress of key actions or action
plans disclosed in prior periods
100% of our suppliers acknowledge our SGPs
and agree to comply with the SGPs before
commencing any work with Coca-Cola HBC
each year since 2017, where data was available.
2024 number is 100%.
Principles for Sustainable Agriculture (PSA)
Key actions taken
We, working with our supply partners, may
support sustainable agriculture initiatives, such
as training and extension services to farmers
to implement more sustainable practices to
enhance quality, productivity and farmer incomes.
This includes providing tools for self-assessment to
track progress and continuous improvement of best
practices, contributing to shared learning platforms
through participation in seminars and webinars
(e.g., SAI Platform), and engaging in pre-competitive
collaborative initiatives to address broad-scale
systemic changes (e.g., worker safety).
Expected outcomes
We believe that by implementing practices aligned
with the PSA expectations, we can achieve improved
farm incomes (higher yields, reduced costs, better
management and accounting), better product
quality and a more stable, long-term supply.
Key actions planned for the future
In advancing our sustainable agriculture programme,
the Company recognises the need and value of
industry collaboration, including with other buyers and
supply chain partners through recognised industry
collaboration platforms. We seek to partner with
others to help address and drive systemic change
at scale in a transparent and precompetitive manner.
Expected outcomes
By working with other companies through
organisations, such as SAI Platform or Bonsucro,
we seek to align expectations, combine resources
and bring greater efficiency to the interventions.
As an example, Bonsucro reports:
• Certified mills reduce water consumption by an
average of 42% after five years of certification.
• On average certified farms reduce land-
management GHG emissions by 14% within
five years.
• 180,900 workers worldwide are covered by
the human rights measures detailed in the
Production Standard.
• Certified producers reduce the rate of accidents
by 17% in mills and 21% in farms over 5 years
of certification.
• Currently, on average, Bonsucro certified farms
pay 13% above the national minimum wage.
• 120,000 farm workers received essential
personal protective equipment from
their employers.
• Bonsucro certified farms reduce their
fertiliser use by an average of 11% over
five years of certification.
This framework for sustainable sourcing
is integrated into internal governance and
procurement processes. Our 2025 target
for ingredient sourcing is to achieve 100%
certification of our key agricultural ingredients
against the Sustainable Agriculture
Guiding Principles.
In 2024, 96% of the key commodities we purchased
for use as ingredients were certified, significantly
higher from 79% in 2023. Specifically, in 2024 we
achieved the following PSA certifications:
• 95% in Sugar and 100% in HFCS
(or 96% for Sugar and HFCS together)
• 100% for Juices (Fruit crops)
Our work to certify our key agricultural ingredients
will continue to expand in 2025, with close cooperation
with our Suppliers and the Coca-Cola System.
How their implementation contributes to the
achievement of policy objectives and targets
The PSA are aimed at primary production – that is,
farm-level – and form the basis of our continued
engagement with suppliers to achieve productivity,
compliance, transparency, resiliency and continuous
improvement of their farm base against these
principles. Through the implementation of
practices that align with the PSA we can manage
supply chain risks, reduce reputational risks and
deliver value for all: workers, farmers, suppliers,
customers, our brands and our business.
Scope of the key actions
The PSA and the actions included, as a set
of global principles, apply to all agricultural
ingredients and plant-based packaging used
in TCCC products.
Time horizons under which CCHBC intends
to complete each key action
Each key action related to PSA has a time horizon
year 2025 in the context of ‘Mission 2025 Initiative’.
Tracking and assessing the effectiveness of
actions and initiatives in delivering intended
outcomes for value chain workers
The effectiveness of the actions is tracked via
external ISO and Workplace Accountability audits
and their results. Also, via the result we have on
the top 10 most recognised ESR raters where
our results are with a leading score among the
beverage peer companies.
The effectiveness of our grievance mechanisms
is reviewed by the Internal Audit department, where
they evaluate whether mitigation has been effective
and whether grievances have been addressed.
In 2024, we have reduced the number of the LTA
and fatalities at contractors. We have decreased
the LTA by 10 (or 15.4%) versus 2023 and we
report four less fatalities versus 2023.
S2.MDR-A_06-12
As part of our commitment to sustainability,
we work with supply chain partners to promote
responsible practices. While we provide guidance
and resources to support suppliers, the development
and implementation of specific initiatives also
require investments in their self-development.
We focus on fostering partnerships that empower
suppliers to take ownership of their progress,
ensuring a sustainable and resilient value chain.
With regard to health and safety, our approach aligns
closely with the standards and measures we apply
to our own workforce. We require contractors
to adhere to the same safety protocols and
frameworks that govern our operations. As a result,
actions related to health and safety do not require
additional capital or operational expenditures
beyond those already accounted for under S1.
MDR-A_06. This expenditure covers all workers,
including those in our supply chain, as our policies
and compliance structures are designed to ensure
a consistent approach across our entire value chain.
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S2-4_12
In OH&S, we have assigned responsible people starting from manufacturing sites and countries to the Group level: there is OH&S responsible in every plant and in every country. The Head of Health and Safety
is responsible at Group level. Every year, Capex and Opex for meeting our safety priorities, targets and policies are allocated as part of the business plan process, for each business unit and at Group level.
For suppliers: the responsibility is with local Procurement teams and business unit Procurement Director and going to the Group level with Strategic Procurement Managers, Heads of Procurement and Chief
Procurement Officer. Every year, Capex and Opex for meeting our sustainable sourcing priorities and agenda are allocated as part of the business plan process to each business unit and at Group level.
Metrics and targets
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
S2.MDR-T_01-13
S2.MDR-T_01-08, 13
We have annual rolling targets related to suppliers, which apply also indirectly to CCHBC value chain workers. Those rolling targets are set at local business unit level and at Group level, and the actuals are
reported and monitored via a specialised reporting software. Also, we have target for 100% sustainable sourcing by 2025, part of our Mission 2025 goals.
All those targets contribute to our policies and their objectives related to suppliers, such as workplace practices, health and safety, child labour, forced labour, wages and benefit, environmental practices,
biodiversity, deforestation and land conservation, bribery and corruption, etc. We are committed to managing our business with a consistent set of values that represent the highest standards of quality,
integrity, transparency and excellence. We respect the unique customs and cultures in communities where we operate. In pursuing this policy, we seek to develop relationships with suppliers that share similar
values and conduct business in an ethical manner.
Actual numbers of the first three targets are for 12 month rolling period from December 2023 to November 2024, the actual data of the last three targets are for 12 month rolling period from December 2022 to
November 2023.
Table 45: List of targets
Performance
Target
Scope of target
Level
Absolute/
Relative
Unit
Activities
Value chain
segment
Geographical boundaries
MDR-T_13
MDR-T_02 MDR-T_03 MDR-T_03 MDR-T_03
MDR-T_03
MDR-T_04
Key agricultural ingredients to be compliant with our sustainable
agricultural guiding principles by 2025
96%
100
Absolute
%
Procurement
Upstream
Countries of sourcing/purchasing
Proportion of spend on local suppliers at significant locations of operation
97.7%
>95%
Absolute
%
Procurement
Upstream
Countries of operation
Suppliers to accept our Supplier Guiding Principles (SGP)
100%
100%
Absolute
%
Procurement
Upstream
Countries of operation, countries
of sourcing/purchasing
Supplier Performance Screening for T1 suppliers: the Annual Screening of
our suppliers to cover min 95% of total Procurement Spend.
Reported every May
Last value 100%
min 95%
Absolute
%
Procurement
Upstream
Countries of sourcing
Supplier performance assessment T1 & T2 suppliers*: Assess in ESG on an
annual basis at least 80% of our significant T1 and T2 suppliers
Reported every May
Last value 97.7%
80%
Relative
%
Procurement
Upstream
Countries of sourcing
Promoting supplier improvement (significant suppliers T1 & T2): On
annual basis we aim to have 80% of our significant suppliers (including T1
and T2) to be under corrective action support
Reported every May
Last value 88.8%
80%
Relative
%
Procurement
Upstream
Countries of sourcing
* Tier 1 suppliers are directly assessed by Coca-Cola HBC, while Tier 2 suppliers are managed by the respective Tier 1 and the results are reported back to us.
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Sustainability Statement continued
S2.MDR-T_11
Contextual information
Please see
S1.MDR-T_11 according to ESRS2 par. 80.
S2.MDR-T_09
Contextual information
To define our sustainability targets, we utilise
certification by third-party organisations, ensuring
compliance with recognised standards such as SAI
FSA, ISCC Plus, BONSUCRO and others.
Significant assumptions involve the accuracy and
completeness of supplier-provided information,
supported by third-party assessments and
certifications. Data sources include annual
supplier reports and external reports. Our targets
align with national, EU, and international policy
goals, ensuring that our practices support
broader sustainability objectives and consider
the local contexts of our operations.
Please also see
S1.MDR-T_09 (2nd paragraph) methodologies
that include independent S2.MDR-T_12
Contextual information
Please see
S1.MDR-T_12
S2.MDR-T_13
How targets are monitored and reviewed
Please see
S1.MDR-T_13
S2-5_01-03
S2-5_01
In setting our targets for secure employment,
adequate wages, health and safety, gender
equality, equal pay for work of equal value,
and training and skills development, we engage
with workers in the value chain through direct
consultations and discussions with their legitimate
representatives. This engagement ensures that
our targets are aligned with the actual needs and
expectations of the workers. We also consider the
best practices in the industry and globally.
We conduct regular performance reviews for
each of the KPIs related to our engagement with
workers in the value chain. These reviews include
input from various levels of our organisation, as
well as feedback from the suppliers. We ensure that
this feedback is incorporated into our performance
tracking processes. For instance, we communicate
our training and skills development targets and
results to them through internal meetings and
feedback sessions.
S2-5_03
In identifying lessons or improvements as a result
of our performance, we engage indirectly with
workers in the value chain through their legitimate
representatives and credible proxies who have
insight into their situation. For example, each severe
OHS incident or fatality is followed by a ‘lessons
learned’ session with the respective contractor or
service provider. These sessions involve discussions
with workers and their representatives to review
the incident, understand the root causes and
identify actionable improvements. This collaborative
approach ensures that the insights and feedback
from those directly affected are incorporated into
our performance tracking and target-setting
processes, leading to continuous improvement
in health and safety practices.
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Sustainability Statement continued
Strategy
SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model
S3.SBM-3_01, 02, 03, 05, 07
At CCHBC, we ensure that all affected communities
who could be materially impacted by our operations
are included in the scope of disclosure under ESRS 2.
This includes addressing impacts that are connected
with our own operations and value chain, including
through our products or services, as well as through
our business relationships. Specifically, we report
on key areas such as water and sanitation
and community programmes (i.e.,
#YouthEmpowered programme).
Types of affected communities
Affected communities are communities living
or working around our operating sites, factories,
facilities (such as warehouses), or other physical
operations. Additionally, more distant communities
impacted by activities at these locations, including
those experiencing downstream water pollution
and scarcity, are also considered. Furthermore,
we support the broader community in the
countries in which we operate through our
various community programmes.
In our operations, we have identified 19 water
priority locations, including Armenia, Bulgaria,
Cyprus, Greece, Italy, and Nigeria. These areas
face specific stress factors, such as water scarcity,
lack of access to water and sanitation services,
and deteriorating water quality in the watersheds.
With our actions on water stewardship, we
consider not only the communities near our
operations (plants, warehouses) but also those
sharing a common watershed, such as farmers
and other water consumers.
Affected communities in greater risk of harm
Our comprehensive Source Water Vulnerability
Assessment done by an independent expert, and
the detailed Water Risk Assessment, took into
account the water as an end-to-end process
where all affected users upstream and downstream
are considered. Besides, within the Alliance for
Water Stewardship and ISO 46001 certifications,
we also assess the impact on our stakeholders
and implement stakeholder engagement activities.
No negative impact has been identified.
Brief description of the activities that
result in the positive impacts
Water and sanitation
In line with our Mission 2025, we are committed to
help secure water availability for the communities
and environment specifically in those areas.
We protect the water resources supplying our
facilities, reduce the amount of water we use to
produce our soft drinks and treat wastewater to
levels that support aquatic life. We also partner
with suppliers to minimise our water footprint
across the value chain.
Addressing the water availability, we focus on
either water access initiatives or on replenishment
activities. For all these, we are partnering within
the Coca-Cola System, with other companies
operating in the relevant watershed area and
international organisations.
In 2024, we witnessed a number of severe weather
events globally, including in our territories. Expected
to be the hottest year on record, recent floods in
Nigeria and Central and Eastern Europe highlighted
the need for us to be ready to support our communities
when they need us most.
ESRS S3 – Affected
communities
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Sustainability Statement continued
In 2024, through the Coca-Cola HBC Foundation,
we donated €1.55 million to communities impacted
by the recent devastating floods in Europe and
Nigeria. These grants supported a variety of
projects, targeting specific local needs in each
country, including:
• Rebuilding houses and community centres
in the village of Thessaly, Greece
• Providing food and emergency supplies
in Maiduguri, Nigeria
• Replacing damaged medical equipment
in hospitals in Poland
• Funding repair works for homes and other
assistance projects in Romania, Hungary
and Bosnia and Herzegovina
Access to education (#YouthEmpowered)1
We remain focused on making a positive impact
on the local communities where we operate.
Through our flagship community programme,
#YouthEmpowered, we have supported young
people by equipping them with the skills, experience
and confidence necessary for success.
By the end of 2024, we had trained 1,119,850
(excluding Egypt) young people since the
programme’s inception in 2017, surpassing
our Mission 2025 target of training one million
young people.
Here are just some of our 2024
#YouthEmpowered activities:
In Greece, we collaborate with top HoReCa
customers across the country and recognised
Brand Ambassadors to offer free Masterclasses
to 570 aspiring Bartenders and Barista, levelling
up their capabilities, on modern mixology, spirits,
and coffee trends and techniques. This initiative
equipped participants with advanced skills, industry
connections, and offered globally recognised
scholarships in coffee and spirits.
In Nigeria, we have trained 15,585 young people
in 83 cities, providing them with essential skills for
personal and professional growth. The program
focuses on entrepreneurship, employability,
financial literacy, and life skills to prepare
participants for a dynamic world.
In Romania, we launched the Barmasters
Academy to offer specialised bartending and
barista training for aspiring HoReCa professionals.
Partnering with prestigious HoReCa customers,
this program provided practical training for young
people and access to employment opportunities.
In Poland, Estonia, Latvia, and Lithuania,
the Skills4Future Platform was created by
Mentors4Starters Foundation with financial
support from The Coca-Cola Foundation. This
modern educational platform aimed at young
people who are at the threshold of entering the
labor market or have already gained some work
experience offer young people the opportunity
to benefit from engaging learning materials and
webinars providing core knowledge in a number of
practical areas, such as applications of AI in life and
at work or creating an attractive CV. An important
element of the platform is certification, confirming
the completion of the course and the skills
acquired. Skills4Future is a solution that can
complement the #YouthEmpowered programme
dedicated to teaching in schools, as well as a
source of practical knowledge for young people.
Impact, risk and opportunity management
S3-1 Policies related to affected communities
S3.MDR-P_01-06
The relevant policy adopted to manage material
sustainability matters (water and sanitation) is the
Water Stewardship Policy. This policy covers all
types of value chain workers that were mentioned
in the previous section. For more information on
Water Stewardship Policy, please see E3-1 Policies
related to water and marine resources
Besides we have published Donations Policy.
Donations Policy
Key contents of the policy
We are determined to create value for all stakeholders
by supporting the socio-economic development
of the societies in which the business operates. As
a subset of our community engagement strategy,
donations are an integral part of that value creation.
Over the years, our donations and other
community investments have evolved from
standalone philanthropic initiatives to long-term,
group-wide programmes closely linked to business
priorities and material issues. We have prioritised
the following programme areas that are of critical
importance across our markets, i.e.:
• Community resilience, including disaster relief
and recovery.
• Sustainable access to safe water for our
communities.
• Economic empowerment for young people
and women.
• Circular economy projects and initiatives.
This policy has been established to reflect scope,
processes and controls that are to be employed
to ensure charitable actions are carried out with
fairness and due diligence and are reflective of
our core values and community approach.
Objective
We recognise the diversity of people, culture,
and social needs. With donations, we aim at
inspiring a better quality of life by means of
long-term, sustainable support for chosen
beneficiaries. Moreover, we support the
involvement of our employees in donations
and community engagement.
Process for monitoring
We ensure applicants (continue to) comply
with the terms and objectives of our Donations
Policy. We maintain a regular dialogue with
the recipient organisations to evaluate the
effectiveness and impact of our donations,
to improve the management of existing projects
and to identify future opportunities.
We will review this policy at least once a year
to integrate latest developments, stakeholder
feedback or other lessons learned.
This policy in reviewed by the SRC Committee
and Legal team.
Scope
This policy establishes principles and requirements
for making donations in the prioritised programme
areas above and applies to all CCHBC business
units and employees. The term ‘donations’, as
used in this policy, refers to monetary or in kind
(including our product) charitable contributions.
Any charitable contribution must comply with the
CCHBC Code of Business Conduct, Anti-Bribery
Policy, TCCC’s Responsible Marketing Policy and
with all other applicable rules and regulations. For
more information, please See Donations Policy.
Most senior level accountable for the
implementation of the policy
The Community Contributions Policy is
signed by the Chief Corporate Affairs and
Sustainability Officer.
For more information, please see Donations
Policy.
Read more
1. As mentioned in ESRS 2, par. 48h, not all our impacts are linked to ESRS topics, sub-topics and sub-sub-topics. We identified a positive impact, referred as ‘Access to Education (#YouthEmpowered)’, which has been covered within this standard by providing entity-specific disclosures wherever relevant.
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Sustainability Statement continued
Commitment to respect third-party standards
Any donation must comply with the CCHBC Code
of Business Conduct, Anti-Bribery Policy, TCCC’s
Responsible Marketing Policy and with all other
applicable rules and regulations.
CCHBC will not make donations to organisations
that do not fully respect humans as per the UN
Guiding Principles on Business and Human Rights
and the resolutions of ILO Conventions.
Consideration given to the interests of
key stakeholders in setting the policy
When setting the policy, we have considered
the interests of affected communities, the
diversity of people, culture, and their social
needs, to create value for all stakeholders by
supporting their socio-economic development
in societies we operate.
Policy available to potentially
affected stakeholders
The Donations Policy is publicly available on
our website.
S3-1_02-07 & S3-4_11
Human Rights Policy commitments
Commitments
Please see
S1.MDR-P_01-06 & S1-1_01, 02, 09-14, 16, 17, 21
We recognise our impact on the communities in
which we operate. We are committed to engaging
with stakeholders in those communities to ensure
that we listen to, learn from and take into account
their views as we conduct our business. Where
appropriate, we are committed to engaging in
dialogue with stakeholders on human rights
issues related to our business. We believe that
local issues are most appropriately addressed at
the local level. We are also committed to creating
economic opportunity and fostering goodwill in
the communities in which we operate through
locally relevant initiatives. For more information,
please visit Human Rights Policy.
We are committed to ensuring minimal impact
on the environment, particularly avoiding impacts
that may also result in increased risk to human
rights, such as access to water, sanitation and
clean environments. As a major buyer of several
agricultural commodities, we source our ingredients
via third parties and we are committed to buy
sustainably certified crops, thus supporting
and promoting the protection of the land rights
of local farmers and communities.
Processes for monitoring compliance
with international instruments
The compliance monitoring process encompasses
a comprehensive mechanism designed to ensure
adherence to international instruments. The
establishment of policies, regular reporting and
documentation, internal audits and assessments,
external monitoring and verification, and continuous
training are components that ensure compliance
with these instruments.
Engagement with affected communities
Where appropriate, we are committed to engaging
in dialogue with stakeholders on human rights
issues related to our business.
We have a number of routines in place to capture
the feedback, input, improvement suggestions
from internal and external stakeholders. We have
been performing annual materiality assessment
for sustainability issues for more than a decade,
where we do engage a large number of external
stakeholders. Additionally, we host an Annual
Stakeholder Forum and Suppliers Sustainability
Day, where we engage in open dialogue with our
suppliers and other collaboration partners,
capturing all their feedback and input. We also
hold regular quarterly meetings with investors
and analysts, during which we share critical
business results and topics, including
sustainability, and gather their input.
Cases of non-respect to international
instruments and measures to provide and/
or enable remedy for human rights impacts
There is no significant negative impact on local
communities. When we have any restructuring
initiatives that can have an impact on local
communities (e.g., involving closing or consolidation
of facilities), we take actions to minimise the
impact, for example by providing those people
affected with other employment opportunities
within the organisation, relocation support, or
voluntary exit packages and professional support
to facilitate employment elsewhere.
Besides, we have an internal due diligence
procedure for any investment/divestment,
mergers and/or acquisitions, where all social and
environmental aspects and impacts are
considered, evaluated and corrective actions are
taken prior to any investment/divestment, mergers
and/or acquisitions.
S3-2 Processes for engaging with affected
communities about impacts
S3-2_01-04
We are committed to engaging with stakeholders
in the communities we operate to ensure that
we listen to, learn from and take into account
their views as we conduct our business. We
have a number of routines in place to capture
the feedback, input, and improvement
suggestions from them. The insights gained
contribute to the Board’s decisions and activities
aimed at managing actual and potential impacts
on communities and ensuring the appropriate
support and resources for them.
Each of our local operations and Business Units
has specific community engagement process
and programmes. We don’t disclose separately
per country. At local level engagement occurs
both with affected communities or with their
legitimate representatives.
Local business units have an annual engagement
plan and organise sustainability events to gather
feedback from stakeholders regarding the approach
and effectiveness of our approach as well.
Business units also publish local sustainability
reports, conduct open plant visits for community
members, and offer numerous volunteering
initiatives that involve various stakeholders.
At local business unit level, the person responsible
for stakeholders’ engagement is the BU Corporate
Affairs and Sustainability Director, while at Group
level, it is the Chief Corporate Affairs and
Sustainability Officer.
S3-2_05
We have established grievance mechanisms that
allow community members to raise or report on
any concerns and complaints they might have with
regards to social, economic and environmental
issues including impacts on society and communities.
We also report and develop corrective actions
to all Notices of Violations (NoVs) issued by local
authorities during their visits at our premises.
Those visits sometimes could be triggered by
local community’s concerns.
S3-2_06
Steps to gain insight into the perspectives of
affected communities that may be particularly
vulnerable to impacts and/or marginalised.
We take steps to gain insight into the perspectives
of affected communities that may be particularly
vulnerable to impacts and/or marginalised through
our local engagement with specific NGOs and their
participation in our engagement process, as well
as through our voluntary programmes.
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S3-3 Processes to remediate negative
impacts and channels for affected communities
to raise concerns
S3-3_11-15
Please see
S1-3_01, 02, 05-09 & S1-1_21
Additionally, through our consumer lines and
the contacts published on our website and on
the local website of our business units, every
community member can approach us. The
consumer line is available on the labels of each
of our products.
Tracking and monitoring of issues raised and
addressed and ensuring the effectiveness of
the channels
Please see
S1-3_01, 02, 05-09 & S1-1_21.
With regards to the consumer line, all signals and
feedback provided to this and via our website are
monitored. We utilise advanced monitoring tools
to track mentions and comments in real-time and
assign dedicated team members to handle feedback
ensuring timely and professional responses. In
addition, we analyse feedback to identify trends
and common issues that allow continuous
improvement, while engaging with consumers
and implementing changes based on their input
demonstrates a commitment to customer
satisfaction and fosters positive relationships.
Assessing awareness and trust in structures
or processes as way to raise concerns
Communication channels are easily available on
our website and on the label of our products.
Protection of individuals against retaliation
Please see
S1-3_01, 02, 05-09 & S1-1_21.
S3-4 Taking action on material impacts on
affected communities, and approaches to
managing material risks and pursuing material
opportunities related to affected communities,
and effectiveness of those actions
S3.MDR-A_01-05 & S3-4_03, 04
A summarised description of the action plans and
resources to manage our material impacts related
to affected communities in relation to material
sustainability matters we have identified, is
presented below:
Water Stewardship Policy
Key actions taken
Please see
S3.SBM-3_01, 02, 03, 05, 07.
Expected outcomes
The expected outcome of these actions is to
ensure good quality safe water in sufficient
quantities, as well as access to clean water
and sanitation which are essential to the health
of people and ecosystems and vital for sustaining
communities and supporting economic growth.
How their implementation contributes to the
achievement of policy objectives and targets
The implementation of actions described
above, contributes to the achievement of
policy objectives to promote sustainable water
management by ensuring CCHBC’s water usage
aligns with the needs of local communities, while
supporting access to safe, high-quality water
and adequate sanitation.
Scope of the key actions
We implemented Community WASH programmes
in water priority locations including the following
countries: Armenia, Bulgaria, Cyprus, Greece,
Italy and Nigeria.
Time horizons under which CCHBC intends
to complete each key action
Each water stewardship project is specifically
designed for the local water challenge and its
duration is minimum 10 years.
Quantitative and qualitative information
regarding the progress of key actions or
action plans disclosed in prior periods
Regarding out Mission 2025 commitment
‘Help secure water availability for all our
communities in water risk locations’, we
monitor our progress using as a KPI the
number of water risk locations, in which we
secure water availability for all our communities.
Please see
S3.MDR-T_01-09, 11, 12, 13.
Additional actions with the primary
purpose of delivering positive impacts
for affected communities
In Nogara, Italy, a joint project by Coca-Cola HBC
Italy and the Consorzio di Bonifica Veronese will
add up to 1.5 million m³ of water annually to the
local aquifer.
The Forest Infiltration Area, featuring canals, trees,
and shrubs, will help refresh the groundwater
aquifer with water from the River Adige. This
aquifer will support local wells for agriculture
and community use, becoming more resilient
to weather fluctuations.
This project is one of the ways in which we’re
expanding our knowledge on how to manage
water programmes that bring benefits to local
communities. These include the Living Danube
Partnership that runs in seven countries that
we operate in.
Tracking and assessing the effectiveness of
actions and initiatives in delivering intended
outcomes for affected communities
Water stewardship projects’ benefits are lasting
at least 10 years, and we measure the cubic
meters of water saved, the number of community
members who are benefitting, the number
of facilities for clean water or sanitation built,
etc. Within the local stakeholder’s engagement,
we receive feedback on the effectiveness of the
community project.
Donations Policy
Key actions taken
Please see
S3.SBM-3_01-03, 05, 07.
Expected outcomes
The expected outcomes of these actions are to
enhance access to water, sanitation and hygiene,
support education initiatives and create opportunities
to empower young people, drive job creation, and
advance corporate social responsibility (CSR) efforts.
How their implementation contributes to the
achievement of policy objectives and targets
The implementation of actions described
above contributes to the achievement of
policy objectives to foster healthier, more
resilient and sustainable communities.
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Sustainability Statement continued
Scope of the key actions
All recipients of CCHBC donations must be
a registered non-profit organisation, certified
school, hospital, or other academic or social
institution. We prefer organisations which:
• have long-term goals and objectives that are
publicly communicated;
• are committed to sustainable development;
• are renowned experts in the area for which
the charitable contribution is made;
• encourage stakeholder engagement and
volunteerism; and
• are transparent about their activities and
report on those publicly.
CCHBC will not make donations to:
• individuals, religious, political or legislative
organisations;
• organisations that discriminate on the basis
of race, colour, ethnicity, creed, religion, gender,
gender identity and/or expression, national
origin, citizenship, ancestry, sexual orientation,
age, pregnancy, disability or political affiliation;
• organisations that do not fully respect human
as per the UN Guiding Principles on Business
and Human Rights and the resolutions of
ILO Conventions;
• organisations that are directly involved in gambling,
armaments, tobacco and recreational or illegal
drugs, with the exception of those organisations
specifically dedicated to tackling addiction or
drug abuse;
• professional local sports, family reunions,
beauty contests or commercial shows;
• organisations that conflict with CCHBC’s business
principles and Code of Business Conduct;
• projects with a detrimental effect of
environment or biodiversity;
• entities without good standing and a clean
record with authorities;
• projects which create the appearance of a bribe,
kickback, other corrupt practice or projects which
require any confidentiality about the contribution.
All donations are made at the discretion of
CCHBC. CCHBC reserves the right to deny any
request for support.
Time horizons under which CCHBC intends
to complete each key action
All of the targets we set are disaggregated into
annual roadmaps and our regular performance
review is two-fold: a) vs the annual roadmap, and
b) vs the direction of the target year. In this way,
we can set actions and correct course if needed.
Quantitative and qualitative information
regarding the progress of key actions or
action plans disclosed in prior periods
Regarding mission 2025 commitment
‘#YouthEmpowered – train one million young
people cumulatively’, we monitor our progress
using as a KPI the number of young people
trained cumulatively.
Please see
S3.MDR-T_01-09, 11-13.
Tracking and assessing the effectiveness of
actions and initiatives in delivering intended
outcomes for affected communities
For #YouthEmpowered, we track the number
of people trained. In 2024, we conducted a Social
Return on Investment (SROI) study (based on
2022 data) to assess the impact of our initiatives
across selected markets. Our Youth Empowerment
Programme in the Adria Business Unit – comprising
Bosnia and Herzegovina, Croatia and Slovenia
– generated a Total Economic Value (TEV) of
€0.99 million. The programme’s key benefits
included enhanced future income potential and
reduced skill development costs, reflecting our
positive contribution to local communities.
Croatia delivered the highest impact, with
€0.41 million TEV, driven by the largest participant
base of 1,043 individuals, 19% of whom secured
employment. Slovenia achieved the highest SROI
value, at €18.75 per Euro invested, demonstrating
exceptional efficiency. In Bosnia and Herzegovina,
despite a smaller participant group of 391, 26%
employment placement highlighted the
programme’s meaningful influence.
S3.MDR-A_06-12 & S3-4_12
As part of our commitment to sustainability,
we remain focused on making a positive impact
on the local communities where we operate.
Our markets allocate their community budgets
for locally relevant initiatives that reflect our
programme priorities and the needs of the
community. Community investments reached
€8.4 million in 2024 (excluding the Ukrainian
Solidarity Fund and Coca-Cola HBC Foundation),
More than €1.4 million of the above-mentioned
amount was directly attributed to our
#YouthEmpowered Programme.
For the water and sanitation programme,
investment is primarily driven through the
Coca-Cola HBC Foundation, providing strategic
support tailored to meet critical needs.
The Group’s treasury strategy ensures the
availability of financial resources to support
sustainability-related actions across all key areas.
By leveraging a diversified range of financing
mechanisms, we can address both current and
future priorities effectively.
Our accounting system does not separately
classify sustainability-related costs, as these are
reported in accordance with the general financial
reporting principles. The Opex mentioned above
is reflected in our financial statements, as part
of the overall amounts reported in the income
statement, confirming our commitment to the
Youth Empowerment Programme.
Metrics and targets
S3-5 Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
S3.MDR-T_01-09, 11-13
A summarised description of the targets
to manage our material impacts related to
affected communities is presented below:
Water and sanitation
We have set the target of helping secure water
availability for our communities in water risk areas
we operate (19 water priority locations, including
Armenia, Bulgaria, Cyprus, Greece, Italy and
Nigeria) by 2025 to meet our policy objective. This
objective is to ensure good quality safe water in
sufficient quantities, as well as access to clean
water and sanitation, as these are essential to
the health of people and ecosystems and vital
for sustaining communities and supporting
economic growth.
Access to education (#YouthEmpowered)
We have set a target to train young people,
in connection with our Donations Policy,
which aims to create value for youth people by
supporting their socio-economic development.
The year to which all targets apply is 2025 and the
target is cumulative, 2017-2025. Our targets are
intrinsic and they are not compared to any
baseline. 2017 is the year we set the targets.
Every sustainability commitment has its annual
roadmap for all the years until the target year is
reached and we follow it for our business planning
purposes for each respective year.
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Sustainability Statement continued
Table 46: List of targets
Description of
the relationship
between target
and policy
Performance
Target
Application period
Scope of target
Level
Absolute/
Relative
Unit
Time – Period
Milestones/
Interim Targets
Activities
Value Chain
Segment
Geographical
boundaries
MDR-T_01
MDR-T_13
MDR-T_02
MDR-T_03
MDR-T_03
MDR-T_07
MDR-T_08
MDR-T_04
Help secure water
availability for all our
communities in water
risk locations
Water
Stewardship
Policy
16
19
Absolute
#
2025
n/a
n/a
All value chain
All Group
(except Egypt)
1#YouthEmpowered
– train one million
young people
cumulatively
Donations
Policy
1,119,850
1 million
Absolute
#
2025
n/a
n/a
All value chain
All Group
(except Egypt)
S3.MDR-T_11
Stakeholders have been involved
in target-setting
Please see
S1.MDR-T_11.
S3.MDR-T_09
Contextual information
Please also see
S2.MDR-T_09.
S3.MDR-T_12
Contextual information
Please see
S1.MDR-T_12.
S3.MDR-T_13
Performance against disclosed targets
Specifically, to #YouthEmpowered, the number
of young people through #YouthEmpowered
is measured, monitored and reported monthly
at a local/market (business unit) level. Water
stewardship projects are reported quarterly.
How targets are monitored and reviewed
Please see
S1.MDR-T_13
S3-5_01-03
S3-5_01
Affected communities engaged directly
in setting targets
In setting our targets, we actively engage
with affected communities through direct
consultations and discussions with their
representatives, who have deep insights
into the situations of these communities.
This engagement ensures that our targets, in
area such as water replenishment and providing
trainings to youth and community members, are
aligned with the actual needs and expectations
of the affected communities. For example, for our
water stewardship projects in Greece and Italy,
we engaged with farmers in order to set the
intervention that would help in their water agenda.
For water and waste projects in Cyprus, we
engaged with hotels’ owners to understand how
best to contribute to their environmental goals.
S3-5_02
Affected communities engaged directly in
tracking performance against targets
We conduct regular performance reviews for
each of the KPIs related to our engagement with
affected communities. These reviews include
input from various levels of our organisation as
well as feedback from the affected communities.
We ensure that community feedback is
incorporated into our performance tracking
processes. For example, we communicate our
#YouthEmpowered targets and results to
community members through local meetings
and public forums. This transparency allows
us to maintain accountability and continuously
improve our performance in collaboration with
the communities we impact.
S3-5_03
Affected communities directly in identifying
any lessons or improvements as a result of
CCHBC’s performance
We have established regular ‘Lessons learned’
sessions that include input from affected
communities. During these sessions, we review
significant projects, discussing the outcomes and
areas for improvement with community members.
This collaborative approach ensures that the
lessons learned are relevant and actionable for
both our organisation and the communities.
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Sustainability Statement continued
Strategy
SBM-3 Impacts, risks and opportunities
and their interaction with strategy and
business model
S4.SBM-3_01-05
At CCHBC, we are committed to ensuring that all
consumers and/or end users who may be impacted
by our operations, value chain, products and services,
and business relationships are included in the scope
of our disclosures under ESRS 2. While access to
products and services, health and safety, responsible
marketing practices, and access to quality information
were not identified as material, we recognise the
importance of transparency and accountability
in all aspects of our business. In the process of
stakeholder engagement and as an output of our
stakeholders’ interviews, the topic of health and
nutrition has been deemed as area of interest.
Investors and ESG raters also consider health
and nutrition as one of the main future risks for
soft drinks industry. In relation to the nutrition
and consumers’ health and safety, we voluntarily
disclosed responsible marketing practices, access
to (quality) information, and access to products
and services as those are indirectly linked to the
consumers’ health and safety.
Types of consumers and end-users
The types of consumers1 and/or end users include
persons who drink Coca-Cola HBC products.
As a part of the Coca-Cola System, we have long
believed in the importance of providing people
with clear, simple and meaningful front-of-pack
information that can help support healthier and
more informed food choices, in line with national
regulatory requirements in the markets where we
sell our products.
We support the recommendation of leading health
authorities that individuals should consume no
more than 10% of their total daily calories from
added sugar. We have committed to reduce
calories per 100ml of sparkling soft drinks by 25%
between 2015 and 2025 across all our markets.
The printed packs and labels of our drinks have
calorie information and back-of-pack nutrition
information with Guideline Daily Amounts (GDA)
in the EU (as required by law). We also voluntarily
add front-of-pack traffic-light labels on our core
sparkling drinks in 22 markets, that outline whether
a food has high, medium or low amounts of fat,
saturated fat, sugars and salt per 100ml through
a colour scheme of red, amber and green. It also
includes the number of calories and kilojoules
per product.
We fully comply with the labelling regulations of the
country in which we operate. Labelling regulations
require a full list of ingredients, including additives
and allergenic ingredients to be labelled for
consumer safety and transparency.
In Europe we fully comply with the Food Information
to Consumers Regulation (1169/2011) that sets
out a uniform set of rules as to how the list of
ingredients must be presented on the packaging.
In markets where relevant regulations do not exist,
nutrition information is provided in line with the
Codex Guidelines on Nutrition Labelling. Nutrition
information is displayed on most of our product
labels, except for certain returnable bottles,
fountain beverages, alcohol ready-to-drink
beverages, and unsweetened, unflavoured waters.
We are committed to not marketing any of our
drinks directly to children under 13, with a 30%
audience threshold, in any channel or communication,
and to not offering any soft drinks in primary schools.
In UNESDA markets, we sell only no- and low-calorie
soft drinks, in non-branded vending machines.
ESRS S4 –
Consumers
and end-users
1. Consumer: Person who drinks Coca-Cola HBC products.
Customer: Retail outlet, restaurant or other operation that sells or serves Coca-Cola HBC products directly to consumers.
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Sustainability Statement continued
To help people better manage their sugar intake
from our drinks, we are taking actions. These
include reducing sugar in our beverages, launching
new low- and no-sugar drinks, offering small packs
for portion control and promoting our low- and
no-sugar beverage choices.
Our impact
We have no widespread or systemic material
negative impacts on consumers and/or end-users
in contexts where we operate.
There was one product quality incidents resulting
in product recall in 2024 in Austria. We reported
14 minor notices of violations related to quality,
with the total amount of €3.79k fines paid.
In 2024, we recorded full compliance with our
Responsible Marketing Policies across all our
business units.
Brief description of the activities that result
in the positive impacts
Health and food safety: At CCHBC, we have
implemented several initiatives to ensure the
health and safety of our consumers. We have
a continuous process to evaluate and assess
product- and process-related food safety risks,
ensuring food safety through relevant prerequisite
programs such as HACCP and allergen management.
This process applies to all our products and services.
Additionally, all (100%) of our manufacturing bottling
sites, representing 100% of our production
volume, are certified according to the Food Safety
System Certification (FSSC) 22000 scheme,
recognised under the Global Food Safety Initiative
framework. Also, 100% of all our direct operations
are covered by the internal Quality and Food
Safety audit process to assure full compliance
with the local health and safety, and food safety
standards and our stringent internal requirements.
All (100%) of our business units are covered by the
internal quality and food safety management
system, including manufacturing plants, offices,
sales offices, our own distribution centres and
warehouses, the contractors working in our
premises and third-party contractors.
We are committed to meeting evolving consumer
needs and preferences by offering more of the
products they want, including low- and no-sugar
options, across various categories and in more
packages. We focus on innovation, expanding
our range of zero-calorie drinks, and reducing
the calorie content of many of our products
in our portfolio.
Access to (quality) information: At Coca-Cola
HBC, we are committed to providing clear and
transparent information to help consumers make
informed decisions about their diet. We ensure
that key nutritional information is available and
visible on the front-of-pack labels of our bottles
and cans. These labels include the Guideline
Daily Amount (GDA) information, which provides
at-a-glance details on calories, sugar, fat, saturated
fat and salt content. Additionally, we have introduced
traffic-light labels, as previously mentioned,
promoting informed choices.
In 2024, as required by law in the EU, the printed
packs and labels of our drinks included calorie
information along with back-of-pack nutrition
information with GDA details. This legal
requirement complements our own voluntary
initiatives to provide transparent and accessible
nutritional information to our consumers.
Furthermore, we provide product storage
instructions and freshness rules to customers,
as well as best before-dates to consumers. This
helps ensure that our products are consumed at
their best quality. We also offer different serving
sizes for our products to fit the needs of consumers,
allowing them to manage their intake more effectively.
As mentioned earlier, in markets without specific
regulations, we follow the Codex Guidelines on
Nutrition Labelling. Most product labels include
nutrition information, excluding certain returnable
bottles, fountain beverages, alcohol-ready-to-drink
beverages, FINLANDIA Vodka, and unsweetened,
unflavoured waters.
Access to products and services: At Coca-Cola
HBC, we are dedicated to ensuring that our products
are accessible to a wide range of consumers with
diverse tastes and preferences. Our 24/7 product
portfolio caters to these varying preferences, and
we continually innovate, especially in low- and
no-sugar variants, to lead the sector and provide
choices that meet the needs of our consumers.
We are committed to evolving our portfolio to
address changing consumer moments and have
invested further in digital and e-commerce
platforms to meet new shopper needs.
To accommodate different consumer needs,
we provide different serving sizes for our
products, allowing consumers to manage
their intake more effectively. Additionally, we
collaborate with customers, NGOs, and peers
using alternative channels, such as food banks
or markets, to redirect surplus products to
support people in need.
Responsible marketing practices: At Coca-Cola
HBC, we are committed to responsible marketing
practices that promote healthier choices and
protect vulnerable populations. We take proactive
actions to help people better manage their sugar
intake from our drinks by reducing sugar in our
beverages, innovating new low- and no-sugar
drinks, offering small packs for portion control,
and promoting our low- and no-sugar beverage
choices. For more information, please refer to
pages 14 to 15 of the Strategic Report, ‘Leverage
our unique 24/7 portfolio’ section.
We adhere to TCCC’s Global Responsible
Marketing Policy, which includes its Global
School Beverage Policy and Global Responsible
Alcohol Marketing Policy.
Furthermore, we are committed to implementing
the Union of European Soft Drinks Associations
(UNESDA) responsible marketing and school sales
pledges. This commitment reinforces our dedication
to responsible marketing practices and ensures
that our marketing efforts are conducted in a manner
that is ethical and respectful of all consumers.
S4.SBM-3_07
Consumers and/or end-users in greater
risk of harm
Our portfolio is one of the strongest, broadest and
most flexible in the beverage industry, offering
consumer-leading brands in the sparkling, juice,
water, sport, energy, ready-to-drink tea, coffee,
adult sparkling, snacks and premium spirits
categories. Our products cater to a growing range
of tastes with a wider choice of options, premium
products and increasingly sustainable packaging.
As a company we are continuously evolving
our portfolio to help create a healthier food
environment. We are already reformulating
many of our drinks to contain less sugar and
fewer calories. To give consumers more options,
we are also offering more diet, light and zero-
calorie drinks in our portfolio.
Impact, risk and opportunity
management
S4-1 Policies related to consumers
and end-users
S4.MDR-P_01-04, 06 & S4-1_01
The relevant policies adopted to manage
sustainability matters are Health & Wellness
Policy, Quality & Food Safety Policy and
Responsible Marketing Policy. These policies
cover all our consumers and/or end-users
that were mentioned in the previous section.
Health & Wellness Policy
Key contents of the policy
Coca-Cola HBC cares about the health of its
consumers. The Company offers an increasingly
wide range of drinks, from traditional sparkling
beverages, including regular, low and no-calorie,
to juices, waters and other still drinks. All of these
can be enjoyed as part of a healthy diet.
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Sustainability Statement continued
Coca‑Cola HBC is committed to responsible
communication about its products and to promoting
clear, user-friendly front-of-pack nutritional labelling,
together with nutrition programmes and supporting
materials, to help consumers make well-informed
choices. Coca‑Cola HBC is a founding signatory of
the UNESDA Commitments, a set of voluntary
industry obligations that address consumer
information and education, healthy lifestyles
and physical activity, advertising, beverage
choice and research in the European Union.
Our range of drinks is suitable for a wide variety
of drinking occasions from morning until night.
In addition, the Company supports activities
promoting fitness and physical exercise.
Coca-Cola HBC is committed to satisfying
consumer demand for:
• A Broad Choice of Beverages
• Increased Consumer Information
• Responsible Sales and Marketing
• Comprehensive Lifestyle Programmes
• Promoting Sports and Physical Activity
Objective
The Health & Wellness Policy aims to enhance
consumer well-being by ensuring that a wide
variety of beverage options are available,
supporting informed decision-making through
effective communication and labelling practices.
Process for monitoring
Monitoring is done via quarterly internal school
sales compliance reporting and annual written
confirmation of compliance from all General
Managers in our markets. The results are used to
confirm annual compliance to The Coca-Cola
Company on behalf of Coca-Cola HBC Group
(global annual bottler compliance confirmation
process). UNESDA also performs third-party
audits for its progress reports against its
commitments to the EU Code of Conduct on
Responsible Food Business and Marketing
Practices. On top, all relevant employees
participate in a dedicated annual responsible
marketing training.
Scope
The policy applies to all markets and geographies
where we operate, distribute and sell products. It
applies to our entire value chain including both our
own operations and downstream activities. The
affected stakeholder groups include consumers,
employees, communities, customers and investors,
ensuring that we address the sustainability
concerns of all relevant parties.
Most senior level accountable for the
implementation of the policy
The Health & Wellness Policy of Coca-Cola HBC
is owned and endorsed by the Corporate Social
Responsibility Committee of the Board of Directors.
Responsibility for the successful implementation
of the programme is with the Chief Customer and
Commercial Officer down to the business units.
Commitment to respect third-party standards
Coca-Cola HBC adheres to the Coca-Cola
Company Global Responsible Marketing Policy
and is a signatory to the European Soft Drinks
Association’s (UNESDA) advertising and
marketing practices. The Company is also
a founding signatory of the UNESDA Commitments,
which support the EU strategies to deliver sustainable
food and drinks production and consumption.
Policy available to potentially
affected stakeholders
The policy is made available to consumers through
our website and covers all consumers who drink or
would drink our beverages and use our products.
To facilitate informed decision-making, we utilise
back-of-pack labelling to provide detailed
information about calories, sugar, fat, saturated
fat and salt content per serving, and a proportion
of a healthy diet. Additional information is provided
in Company publications, our website, customer
lines and consumer response services. The policy
is also translated into local languages to ensure
that all employees can fully understand it.
We place a specific emphasis on protecting
children under the age of 13, as we are committed
to not marketing any of our products to this age
group, regardless of nutritional profile.
While Coca-Cola HBC is responsible for customer
marketing and execution at the point of sale,
TCCC is responsible for all consumer marketing.
For more information, please refer to the full
policy available here: Coca-Cola HBC Health
& Wellness Policy.
Quality & Food Safety Policy
Key contents of the policy
The following quality and food safety principles are
the foundation of Coca-Cola HBC’s commitment
to quality and food safety:
• Manufacture and deliver products that meet
the highest quality and food safety standards.
• Meet all statutory, regulatory and mutually
agreed customer requirements.
• Ensure a sustainable quality and food safety
culture through effective management systems
compliant with ISO 9001, FSSC 22000 and Coca-
Cola System requirements and standards (KORE).
• Validate the effectiveness of our management
systems through recognised internal and
external audits.
• Apply a risk assessment methodology to
achieve and continually improve our objectives.
• Build a quality and food safety capability, mindset
and culture through structured programmes.
• Continually review policies, standards and
procedures to manage food safety risks.
• Include quality and food safety strategies
in the annual business planning process.
• Set annual measurable objectives for continuous
improvement and compliance with all standards.
• Ensure suppliers and contractors embrace the
same commitments and monitor their compliance.
• Communicate requirements to all relevant
parties and establish specifications for
ingredients, packaging, storage, distribution
and consumer guidelines.
• Communicate quality and food safety aspects,
strategies and performance to all stakeholders.
Objective
The Quality & Food Safety Policy aims to uphold
the highest standards in product quality and
safety, ensuring that all operations align with
regulatory requirements and foster a culture
of continuous improvement.
Process for monitoring
It is monitored though the results of the ISO 9001
and FSSC 22001 audits, via the number of notices
of violations issued by different regulatory bodies,
via the results of the internal cross-boarder quality
audits and TCCC GAO audits, as well as by
monitoring and reporting of consumer
complaints.
Scope
The policy applies to all markets and geographies
where we operate, distribute and sell products.
It applies to our entire value chain including
upstream, own operations and downstream
activities. The affected stakeholder groups
include consumers, employees, communities,
suppliers, customers and investors, ensuring
that we address the sustainability concerns
of all relevant parties.
Most senior level accountable for the
implementation of the policy
The Quality & Food Safety Policy of Coca-Cola HBC
is owned and endorsed by the Board of Directors.
The management responsibility is within the Head
of Quality, Safety and Environment (QSE) who
reports to the Chief Supply Chain Officer. Each
CCH employee is responsible for meeting our
quality and food safety standards within their
level and specific work.
Commitment to respect third-party standards
Ensure a sustainable quality and food safety
culture through the implementation, certification,
and continuous improvement of effective quality
and food safety management systems compliant
with ISO 9001, FSSC 22000, together with
Coca-Cola System requirements and standards
(KORE) in all operations and where applicable.
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Sustainability Statement continued
Policy available to potentially
affected stakeholders
Communicate quality and food safety
requirements to consumers, and other relevant
interested parties by establishing specifications
for ingredients and packaging materials,
product storage and distribution, and consumer
guidelines. Communicate quality and food
safety aspects, strategies, and performance
to consumers that have an impact on or are
affected by Coca-Cola HBC’s food safety and
quality management systems. The policy is also
translated into local languages to ensure that all
employees can fully understand it.
For more information, please refer to the full policy
available here: Quality & Food Safety Policy.
Read more
Responsible marketing policy
for alcoholic beverages1
Key contents of the policy
The Responsible Marketing Policy for Alcoholic
Beverages of Coca-Cola HBC includes the
following key objectives:
• Promoting responsible consumption.
• Preventing underage drinking and reducing
harmful use of alcohol.
• Providing clear guidance for responsible
marketing and promotion.
• Ensuring compliance with laws and
industry guidelines.
Objective
The Responsible Marketing Policy for Alcoholic
Beverages aims to promote responsible
consumption and prevent underage drinking
while ensuring that all marketing practices
comply with relevant laws and industry guidelines.
1. Please note, we are not focusing on the policy from an alcoholic perspective, as it pertains to specific stakeholders.
Process for monitoring
Monitoring is done via annual written confirmation
of compliance from all General Managers in
our markets for both the Global Responsible
Alcohol Policy of TCCC, and the Coca-Cola HBC
Responsible Marketing Policy for Alcoholic
Beverages. On top, all relevant employees
participate in a dedicated annual responsible
marketing training.
Scope
The policy applies to our downstream activities.
The affected stakeholder groups include
consumers, communities and customers,
ensuring that we address the sustainability
concerns of all relevant parties.
The policy also applies to all marketing activities,
including but not limited to:
• selling activities
• merchandising
• sales and brand advertising
• on-and off-premises promotional activities
and related materials
• brand innovation activities
• experiential marketing
• consumer planning and market research
• relationship marketing
• consumer public relations
• the development and content of brand web
sites, electronic communications and digital
media, product placements and sponsorships,
and
• labelling and packaging
Most senior level accountable for the
implementation of the policy
The policy is to be strictly adhered to in the
same manner as the codes, policies and
commitments on Coca-Cola HBC operations
and activities in respect of the non-alcoholic
beverages we produce and distribute, in order to
reflect the company’s high standards, core values
and social responsibility commitments. The
implementation of this policy is under the
responsibility of the Chief Operating Officer.
Commitment to respect third-party standards
In November 2023, Coca-Cola HBC joined the
Global Standards Coalition. This initiative aims
to prevent underage drinking and reduce harmful
use of alcohol through stakeholder engagement,
training tools and best practices. The Global
Standards Coalition is driven by the International
Alliance of Responsible Drinking (IARD).
Policy available to potentially
affected stakeholders
The Responsible Marketing Policy for alcoholic
beverages of Coca-Cola HBC is made available
to consumers through Company publications,
its website, and consumer response services.
The policy is also translated into local languages to
ensure that all employees can fully understand it.
For more information, please refer to the full policy
available here: Responsible marketing policy for
alcoholic beverages.
Read more
All CCHBC policies are available on our website
and are cascaded to our local business units.
Quality and Food Safety Policy is also printed
and disclosed in every manufacturing plant.
Quality and Food Safety training are mandatory
for each employee. Regularly we perform quality
and food safety campaigns to raise awareness
and understanding on the importance of quality
and food safety. Health & Wellness Policy
is communicated to all relevant groups
of employees, such as marketing and
commercial departments.
S4.MDR-P_05
Consideration given to the interests of
key stakeholders in setting the policies
in previous section
In setting these policies, we have considered
the interests of key stakeholders, including
consumers, nutrition experts, suppliers, and
industry partners to ensure that our offerings
and practices align with their expectations and
promote overall wellbeing. We ensure compliance
with statutory and regulatory requirements,
promote a sustainable quality and food safety
culture, and communicate our standards and
performance to all relevant parties, to ensure
our practices align with their expectations and
promote responsible marketing.
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Sustainability Statement continued
S4-1_02 – S4-1_07
Alignment with Internationally Recognised
Instruments and Human Rights Policy
Commitments Relevant to Consumers
and End-Users
Coca-Cola HBC adheres to The Coca-Cola Company
Global Responsible Marketing Policy and is a signatory
to the European Soft Drinks Association’s (UNESDA)
advertising and marketing practices, which reflect
our commitment to responsible marketing and
consumer protection. Additionally, as a founding
signatory of the UNESDA Commitments, we
support the EU strategies to deliver sustainable
food and drinks production and consumption.
Currently, Coca-Cola HBC does not have specific
human rights policy commitments that are directly
relevant to consumers and/or end-users published
on our website. Our focus has been on ensuring
compliance with statutory and regulatory
requirements, promoting a sustainable quality
and food safety culture, and communicating our
standards and performance to all relevant parties.
Cases of non-respect to
international instruments
In 2024, we recorded full compliance with our
Responsible Marketing policies across all
our business units.
S4-2 Processes for engaging with
consumers and end-users about impacts
S4-2_01 & S4-2_03
At Coca-Cola HBC, we prioritise several key topics
that are important to our consumers, including:
• Health and nutrition
• Product quality
• Responsible marketing
How we engage:
At Coca-Cola HBC, it is essential to clarify that
every new product or packaging is developed
by TCCC. TCCC owns, develops and markets
its brands with the end consumers. Our role as
Coca-Cola HBC is to produce, distribute, and sell
these beverages, ensuring that we have the right
portfolio for the Hellenic markets and to ensure
executing our operations efficiently.
While we are responsible for the production and
distribution, consumer insights, research, and
testing are primarily conducted by TCCC. This
process is integral to our operations, but it is
managed by TCCC, allowing us to focus on
delivering quality products to our consumers.
To understand consumer needs and preferences,
we mostly cooperate with TCCC but also we
leverage various channels, including:
• feedback from social media and consumer hotlines
• local websites
• research initiatives
• surveys
• customers’ feedback via direct interactions
or through customer surveys
The stage(s) at which engagement occurs,
the type of engagement and frequency of the
engagement are detailed below:
• Stage(s) of Engagement: Engagement occurs
at various stages, regular business updates,
and ongoing feedback mechanisms.
• Type of Engagement: The types of
engagement include consumer insights,
social media feedback, consumer hotlines,
local websites, research, surveys, global/
local trends, focus groups or shopper needs
expressed indirectly via our customers, etc. The
engagement of consumers and/or end-users
from Coca-Cola HBC side is mainly through our
in-store/online presence of our products and
via customer media targeted to their shoppers.
• Frequency of Engagement: Engagement occurs
regularly or is always-on via in-store presence of
our products and the options via hotline, social
media or other channels. Customer insights are
gathered through research and surveys. Special
activations or promotional support is based on
activities agreed between TCCC and Coca-Cola
HBC based on the yearly business plan.
Outcomes of engagement:
Through our engagement efforts, we
continuously adapt our portfolio to meet changing
consumer preferences. Additionally, we have
made significant investments in digital and
e-commerce to meet new shopper needs.
S4-2_02
Engagement with stakeholders with
affected consumers and/or end-users
or their representatives
We work closely with customers – ranging from
grocery stores, restaurants to street vendors,
convenience stores, movie theatres and
amusement parks, among many others –
to execute localised strategies developed in
partnership with TCCC. Customers then sell
our products to consumers.
While we collect direct feedback from consumers
through hotlines and surveys, TCCC has a more
extensive reach in obtaining direct consumer
feedback, as they own the brands and have
direct interactions with end-users.
This multi-faceted engagement ensures that
we are responsive to consumer needs and
preferences, allowing us to adapt our offerings
and marketing strategies effectively.
S4-2_04
Most senior role that has operational
responsibility for ensuring that engagement
with consumers and/or end-users happens is
Chief Operational Officer.
For more information on consumer trends, please
refer to Strategic Report, ‘Market trends’ section
on pages 4 to 5 and ‘Leverage our unique 24/7
portfolio’ section on pages 14 to 15.
Read more
As part of the Coca-Cola System, we are
committed to delivering both great taste,
healthy and balanced diets, aligning with
what our consumers desire.
Our actions across the system fall within five pillars:
1. Less Sugar, More Choices.
2. New and Different Drinks.
3. Informed Decisions.
4. No Marketing Targeting Children.
5. Promoting Low- and No-Sugar Choices.
S4-2_05
The effectiveness of our engagement with
consumers and/or end-users, and relevant
outcomes that result from such engagement
We assess the effectiveness of our
engagement with consumers and end-users
through feedback mechanisms and surveys.
We monitor consumer satisfaction and track
feedback from various channels.
We review the outcomes of our engagements
to ensure our actions meet consumer needs. For
example, based on feedback, we have added low
and no-calorie options and improved our digital
and e-commerce platforms.
This process helps us ensure our engagement
with consumers and end-users is effective and
responsive to their needs.
S4-2_06
The steps we take to gain insight into
the perspectives of our consumers and/or
end-users that may be particularly vulnerable
to impacts and/or marginalised (for example,
people with disabilities, children, etc.)
For CCHBC’s consumers and/or end-users who
may be particularly vulnerable to impacts and/or
marginalised, such as people with disabilities,
and children, we employ the same engagement
steps including surveys and feedback collection,
to ensure their perspectives are considered in
our decision-making processes.
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S4-3 Processes to remediate negative impacts
and channels for consumers and end-users to
raise concerns
S4-3_01
Channels to raise concerns and general
approach and processes for providing or
contributing to remedy
Coca-Cola HBC has established dedicated
hotlines for consumer complaints, available in
each country where we operate and available
on the labels of each of our products.
These hotlines allow consumers to provide
feedback and report issues directly. In some of
our markets, CCHBC was the first company to
launch such a line. Our website contains the
contact information and consumers may
approach us via social media as well.
In case of any food safety incident with
consumers, as part of our quality and food
safety, and risk procedures we provide the
needed support to the consumer.
The effectiveness of our grievance mechanisms is
reviewed by the Internal Audit department, which
assesses whether mitigation has been effective
and whether grievances have been addressed.
Additionally, the effectiveness of our grievance
mechanisms and the outcomes of Food safety
audits are evaluated to ensure compliance and
continuous improvement in our processes.
S4-3_02
Consumer perspectives and engagement
in decision-making
Please see also S4.SBM-3_01-05, S4-2_01 &
S4-2_03, S4-2_02 and S4-3_01
While Coca-Cola HBC collects consumer
complaints, it is important to note that any
changes regarding products are managed by
TCCC. We facilitate the collection of feedback,
but TCCC is responsible for addressing,
e.g., product-related issues. Furthermore,
we actively monitor feedback through our
website and social media channels, ensuring
that consumer needs are addressed promptly.
S4-3_03
Support for feedback channels
in business relationships
Coca-Cola HBC encourages the establishment of
effective feedback channels among our suppliers
and partners. We provide guidelines to help them
develop mechanisms that allow consumers to
raise concerns.
S4-3_04
Tracking and monitoring issues raised
and ensuring effectiveness of channels
At Coca-Cola HBC, we have fostered a culture
that prioritises Quality and Food Safety, while
always focusing on our consumers. We monitor
and report every consumer complaint received
through every available channel. Following this,
we perform root cause analysis and take all
necessary measures to ensure product safety,
prevent quality incidents and eliminate defects
through robust analytical governance and
strong capabilities.
Regarding the consumer line, all signals and
feedback provided through this and via our
website are monitored. We utilise advanced
monitoring tools to track mentions and
comments in real-time and assign dedicated team
members to handle feedback ensuring timely and
professional responses. In addition, we analyse
feedback to identify trends and common issues,
allowing for continuous improvement.
All consumer complaints or queries through
our social media are directed to the appropriate
point of contact in the specific region. Our
social media accounts are monitored Monday
to Friday, and we have clearly sign posted contact
information on our website to support those who
want to get in touch. You can find the list here:
https://www.coca-colahellenic.com/en/contact-us.
Engaging with consumers and implementing
changes based on their input, demonstrates a
commitment to customer satisfaction and
fosters positive relationships.
S4-3_05 & S4-3_06
Assessing awareness and trust in structures
or processes as way to raise concerns &
Protection against retaliation for feedback
External challenges of consumer sensitivity
remained on high level, increasing our still low
base of consumer complaints from 0.14 to 0.16
per million bottles sold in 2024 compared to
2023. This increase is partially due to changes
in packaging from sustainability initiatives, as well
as the fluctuating natural colour range of orange
juice concentrate.
In Austria, we had an incident connected to 0.5L
PET carbonated soft drinks from one production
line. We informed authorities and initiated a
precautionary public recall, as it could not be ruled
out that some products might have been effected
by a technical incident in the production process.
When a consumer complaint is received,
we perform thorough root cause analysis, we
resolve it promptly and fairly, giving feedback
to consumer and often providing a replacement
product. This approach ensures consumers feel
heard and trust our processes, with no retaliation
for raising concerns. Only 33% of reported
complaints were justified after investigation.
We continue to improve and modernise
our manufacturing processes, focusing
on product quality, safety and integrity,
to maintain consumer trust.
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S4-4 Taking action on impacts on consumers and end-users, and approaches to managing risks and pursuing opportunities related to consumers and end-users, and effectiveness of those actions
S4.MDR-A_01-05 & S4-4_01, 06, 07
A summarised description of the action plans and resources to manage our impacts related to consumers and end-users in relation to sustainability matters we have identified, is presented below:
S4.MDR-A_01
Key actions and future plans for policy implementation: Health & Wellness Policy, Quality & Food Safety Policy, and Responsible Marketing Policy for Alcoholic Beverages
Table 47: Key actions (existing and planned) in relation to consumers and end-users
List of actions
Time horizon
(MDR-A_03)
Expected outcome
Relation to policy objectives /
targets (where relevant)
Scope of action
(MDR-A_02)
Current
Planned
Activities
Value chain segment
Geographical
boundaries
Affected stakeholders
Continuous
evaluation/
assessment of
product- and
process-related
food safety risks
Yes
Continuous
Ensure food safety
and eliminate any
potential food
safety risk
Assure consumers and
customers food safety
through relevant
prerequisite programmes
(e.g., HACCP, allergen
management); Manufacture
and deliver products that
meet the highest quality
and food safety standards,
assuring product and
process integrity
62 out of 62 manufacturing
sites (both beverages and
snacks), representing 100% of
production volume, are
certified according to Food
Safety System Certification
(FSSC) 22000 scheme which is
recognised under Global Food
Safety Initiative framework
Own operations;
Upstream
(suppliers);
Downstream
(customers)
(suppliers)
Global
Consumers;
customers;
suppliers; own
employees
Clear and
transparent
nutrition
information
Yes
Continuous
Increased
consumer trust;
help consumers
make well-
informed choices
Coca‑Cola HBC is
committed to responsible
communication about its
products and to promoting
clear, user-friendly front-of-
pack nutritional labelling,
together with nutrition
programmes and
supporting materials, to
help consumers make
well-informed choices;
Provide clear and transparent
nutrition information about
what’s inside our drinks, such as
the Guideline Daily Amount
(GDA) and traffic-light labels on
our core sparkling drinks in
22 markets; Support the
recommendation of leading
health authorities that
individuals should consume no
more than 10% of their total
daily calories from added sugar
Downstream;
Marketing and
labelling
22 markets
Consumers
Consumer
feedback
mechanisms
Yes
Continuous
Better consumer
engagement
Collect and address
consumer feedback
Consumers provide feedback
on social media, via consumer
hotlines and indirectly via
customers
Customer Service
Global
Consumers;
customers
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List of actions
Time horizon
(MDR-A_03)
Expected outcome
Relation to policy objectives /
targets (where relevant)
Scope of action
(MDR-A_02)
Current
Planned
Activities
Value chain segment
Geographical
boundaries
Affected stakeholders
Evolve product
portfolio
Yes
Continuous
Address the
emerging
consumers; trends
Provide a broad choice
of beverages and help
consumers to manage
their calories intake;
Address changing
consumer moments
Provide low and no- calorie
beverages, reformulation of our
existing beverages, expand
portfolio to more natural and
with functional benefits drinks;
Reduce sugar in our beverages,
innovate for new low- and
no-sugar drinks, offer small
packs for portion control and
promote low-and no-sugar
beverage choices
Downstream
– Product
development
Global
Consumers;
communities
Provide
appropriate
portion sizes
Yes
Continuous
Help consumers
manage their intake
of calories;
Consumer choice
and customer
preference
Provide an appropriate
choice of portion sizes
so as to help consumers
manage their intake
of calories
Provide appropriate
portion sizes to manage
calorie intake
Product
development
Global
Consumers
Responsible
marketing policies,
including school
beverage policy
and responsible
marketing policy
for alcoholic
beverages
Yes
–
Increased
consumer trust
The effective marketing of
our brands is a core driver
for our business, and we
take steps to ensure that
our marketing is not only
effective but responsible
and reasonable.
Adhere to responsible marketing
policies; We don’t do marketing
for any of our drinks directly to
children under 13, with a 30%
audience threshold, in any
channel or communication. We
also do not offer any soft drinks
in primary schools
Marketing and Sales
Global
Adhere to
the European
Soft Drinks
Association
(UNESDA)
commitments
to promoting
balance diet
Yes
Continuous
Improved
consumer trust;
contribution to the
EU objectives for a
more sustainable
food system
Coca‑Cola HBC is a founding
signatory of the UNESDA
Commitments, a set of
voluntary industry obligations
that address consumer
information and education,
healthy lifestyles and physical
activity, advertising, beverage
choice and research in the
European Union;
We will continue to promote
low and no calorie beverages.
Responsible advertising: not
to market or advertise any soft
drinks to children across all
media; Do not sell any soft drinks
in primary schools (through
direct distribution), the only soft
drinks we sell in EU secondary
schools are low- and no-calorie
(through direct distribution) and
only in non-branded (no logo)
vending machines
Downstream
UNESDA
markets
Consumers,
communities
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List of actions
Time horizon
(MDR-A_03)
Expected outcome
Relation to policy objectives /
targets (where relevant)
Scope of action
(MDR-A_02)
Current
Planned
Activities
Value chain segment
Geographical
boundaries
Affected stakeholders
Implement
statistical process
control on the
main quality
parameters in
manufacturing
sites
2024
Continuous
Ensure product
quality and food
safety; proactive
prevention of any
deviation from
quality parameters
Manufacture and deliver
products that meet the
highest quality and food
safety standards, assuring
product and process
integrity.
Investing in technologies that
monitor, record and analyse
specific manufacturing
parameters that are important
for product quality; training of
the employees in the plants to
use this statistical control
Own operations –
Manufacturing
All countries
where we
operate
Own employees,
customers,
consumers
Capability
building;
implement
training
programmes
across different
layers and
functions in the
organisation
2024
Continuous
Make sure every
person in the
organisation
understand and
follow high quality
standards so to
assure product
quality and safety
and thus consumer
preference
Ensure a sustainable quality
and food safety culture;
Build a quality and food
safety capability, mindset
and culture
Develop and perform different
quality training across
organisations based on the
specific roles: advanced
microbiological training,
Supply Chain Academy with
many modules on quality/food
safety, internal x-boarder
auditors for FSSC training
Own operations
All countries of
operation
Own employees
Conduct
internal audits
Yes
Continuous
Ensure continuous
improvement and
compliance with all
requirements and
our internal quality
standards
Validate the effectiveness
of the quality and food
safety management
systems
Perform validation and
continuously improve the
effectiveness of the quality and
food safety management
systems through internal audit
processes: (x-boarder with
internal experts; Global Audit
Organisation by TCCC audits;
Corporate Audit Organisation
(CAD) department audits,
Engineering audits for
equipment and facilities for
internal standards’ compliance).
Own operations
All countries of
operation
Own employees,
consumers
Apply risk
assessment
methodology
across our plants
and suppliers
Yes
Continuous
Manage effectively
food safety risks
Apply a risk assessment
methodology
Conduct risk assessments
and implement risk
mitigation strategies
Manufacturing;
suppliers
Global
Consumers,
Employees,
Suppliers
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List of actions
Time horizon
(MDR-A_03)
Expected outcome
Relation to policy objectives /
targets (where relevant)
Scope of action
(MDR-A_02)
Current
Planned
Activities
Value chain segment
Geographical
boundaries
Affected stakeholders
Review quality
and food
safety policies
Yes
–
Ensure continuous
improvement and
compliance with
all requirements
Continually review quality
and food safety policies,
standards and procedures
and implement
improvements
Monitor the external trends
and CCHBC performance
and regularly review and
update policies, standards,
and procedures
Own operation,
Upstream
(suppliers),
Downstream
Global
Consumers,
Employees,
Suppliers
Integrate quality
and food safety in
business planning
Yes
–
Ensure continuous
improvement and
compliance with all
requirements
Include quality and
food safety strategies
in the annual business
planning process
Integrate quality and food
safety strategies into business
planning to ensure that food
safety and quality remains an
integral part of operations.
Own operations
Global
Consumers,
Employees
Set annual quality
and food safety
objectives
Yes
–
Ensure continuous
improvement and
compliance with all
requirements
Set annual measurable
quality and food safety
objectives and targets,
monitor their progress and
perform corrective actions
in case of deviation
Establish and monitor quality
and food safety objectives
Own operations
All countries of
operation
Consumers,
Employees
Perform annual
quality and food
safety awareness
campaigns for
employees
Yes
Continuous
Increase employees
understanding,
knowledge and
awareness and thus
improve quality
Build a quality and food
safety capability, mindset and
culture through structured
programmes that develop
employees’ competencies
and technical skills, increase
awareness, manage risk
and drive increasing levels
of excellence across
the organisation
Regularly perform quality
and food safety awareness
campaign focusing on different
topics and by using different
communication channels
Own operations
All countries
of operation
Employees
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S4.MDR-A_02
Disclosure requirements for policy
implementation and key actions
Please see
S4.MDR-P_01-04, 06 & S4-1_01.
S4.MDR-A_03
Time horizons for key actions
Majority of the actions are ongoing and continuous
in order to improve our performance every year and
reach our rolling targets.
Please see E5.MDR-T_12
S4.MDR-A_04 & S4-4_02
Key actions and results for
supporting remedies
In the event of any complaints, each one is treated
with the utmost seriousness. While we currently
do not have any significant complaints, we are
fully prepared to handle them effectively should
they arise.
Each complaint is investigated thoroughly, and we
implement necessary actions to resolve the issue.
If needed, we provide remedies such as replacement
products to ensure consumer satisfaction.
We continuously review our complaint
management processes to improve their
effectiveness and ensure they meet our quality
standards. Our focus on consumer feedback
demonstrates our commitment to addressing
concerns and supporting those affected by
any issues.
Quantitative and qualitative information
regarding the progress of actions or action
plans disclosed in prior periods
Regarding our ultimate goal to assure high-quality
products and continuously improve our quality
results, we monitor our progress using KPIs, such
as the number of consumer complaints per million
bottles sold.
Table 48: Number of consumer complaints
KPI
2023
2024 status
2025 target
Number
consumer
complaints
per million
bottles sold
0.14
0.16
0.13
S4.MDR-A_06,07
As part of our ongoing commitment to
sustainability and consumer satisfaction, we
continuously invest in enhancing the quality and
safety of our products. Although there are no
significant Opex and/or Capex to disclose, we focus
on allocating resources to ensure our products
meet the highest standards. This includes efforts
in quality control systems and customer service.
Our efforts are supported by our Group’s treasury
strategy, which ensures the availability of financial
resources to support these initiatives. By leveraging
a diversified range of financing mechanisms, we
can address both current and future priorities
effectively, ensuring that our products continue
to meet the evolving needs and expectations of
our consumers.
S4-4_01
Please see
S4.MDR-A_01-05 & S4-4_01, 06, 07
S4-4_02
Please see
S4.MDR-A_04
S4-4_03
Additional actions with the primary purpose
of delivering positive impacts for consumers
and/or end-users
No additional actions.
S4-4_04
To track and assess the effectiveness of our
actions and initiatives in delivering intended
outcomes for consumers and/or end-users,
we employ several methods:
• We monitor the results, findings and actions
from all different audits on quality and food
safety performed in our manufacturing sites
and distribution centres: by an independent
auditor (ISO 9001, FSSC 22001); by TCCC
Global Audit; by the internal x-boarder.
• We monitor the results from school sales
reports provided by our commercial function
per country on a quarterly basis. On top, once
every year, all business units provide written
statements of compliance through the
business unit General Manager.
• We monitor our ESG score at the top 10 ESG
raters such as S&P Global (DJSI), CDP, MSCI
ESG, ISS etc. and our 2024 score is leading
among the beverage industry peers.
• We also have specific reputational metrics
where we survey how different E, S and G topics
are perceived by our consumers and we use
customer satisfaction survey where questions
on our sustainability approach are also asked.
S4-4_05
Processes to identify needed actions
in response to negative impacts
We identify the actions based on the risk analysis
on quality and food safety (HACCP), based on the
findings from all audits performed.
S4-4_06
Please see
S4.MDR-A_01-05 & S4-4_01, 06, 07.
S4-4_07
Please see
S4.MDR-A_01-05 & S4-4_01, 06, 07.
S4-4_10
Our approach when tensions arise between
the prevention or mitigation of negative
impacts and other business pressures
As a beverage producer, consumers’ safety
and providing high-quality products is our main
priority. We take all measures across the entire
value chain, starting from requirements for
suppliers, through requirements and standards
in manufacturing, storage, transportation,
distribution, to the end-point of selling. If any
tensions arise between preventing negative
impacts and other business pressures, we
prioritise consumer safety and product integrity.
We maintain rigorous quality and food safety
standards and procedures and follow our strict
responsible marketing practices.
S4-4_11
Severe human rights issues and incidents
connected to its consumers and/or end-users
No human rights incidents are reported in 2024
related to consumers and end-users.
Coca-Cola HBC Integrated Annual Report 2024
171
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Sustainability Statement continued
S4-4_12
Resources allocated to the management of our
impacts with information that enables users to
gain an understanding of how these impacts
were managed
In every manufacturing site and in every business
unit, we have a dedicated Quality and Food Safety
Manager, who is part of the Supply Chain function,
in QSE department. At Group level, the Head of
Quality reports to the Head of QSE. Each Business
Plan allocates Capex and Opex for quality and food
safety in each business unit.
Responsible marketing is managed by our
Commercial team, with support from the
Corporate Affairs and Sustainability function
through the Market Regulation Manager. This
structure ensures that we have the necessary
resources and expertise to effectively manage
our impacts on quality, food safety and
responsible marketing.
Metrics and targets
S4-5 Targets related to managing negative
impacts, advancing positive impacts, and
managing risks and opportunities
S4.MDR-T_01-13
A summarised description of the targets
to manage our impacts related to consumers and
end-users is presented below.
S4.MDR-T_01-08
As part of our Mission 2025 goals, we have a target
related to calories decrease.
We have also set annual rolling targets related to
consumers and end-users. Those rolling targets
are set at Group level and at local business unit
level, and the actuals are reported and monitored
via a specialised reporting software.
Table 49: List of targets
Name of the
target
Description of
the relationship
between target
and policy
Target
Baseline data
Application period
Scope of target
Level
Absolute/
Relative
2024 value
Baseline value
Baseline year
Time – period
Milestones/
Interim targets Activities
Value chain
segment
Geographical
boundaries
MDR-T_01
MDR-T_02 MDR-T_03 MDR-T_03 MDR-T_05 MDR-T_06 MDR-T_07 MDR-T_08
MDR-T_04
Reduce
calories in
sparkling
soft drinks
Health &
Wellness
Policy
25%
reduction
Relative
18%
reduction
0%
2015
2025
n/a
n/a
Downstream
All Group
S4.MDR-T_09
Methodologies and assumptions for
defining targets
Please see
S1.MDR-T_09.
No assumptions are used for targets related to
the consumers and end-users.
S4.MDR-T_11
Stakeholders who are involved in target setting
We are gathering insights from consumer groups,
from investors through regular calls, analysing
emerging trends from ESG benchmarks, and
incorporating feedback and proposed actions
from our Annual Stakeholder Forums and
materiality surveys. Additionally, we consider input
from local business unit engagements to ensure a
comprehensive understanding of stakeholder
perspectives.
S4.MDR-T_12
Contextual information
Please see
S1.MDR-T_12.
S4.MDR-T_13
Performance against disclosed targets
To reach our commitment, we focus on growing
zero formulations such as Coca-Cola Zero Sugar
Zero Caffeine and new flavour creations within the
Fanta and Schweppes brands.
How targets are monitored and reviewed
Please see
S1.MDR-T_13
S4-5_01-03
S4-5_01
Target-setting process and engagement
with consumers and end-users 
In setting our targets for access to products and
services, consumers’ safety, responsible marketing
practices, and access to quality information, we
engage with consumers and end-users through
their legitimate representatives. This engagement
ensures that our targets are aligned with the
actual needs and expectations of the consumers
and end-users. We also consider best practices
in the industry and globally via our membership
in industry associations.
S4-5_02
Tracking CCHBC’s performance
We prioritise effective performance tracking to
enhance our engagement with consumers and
end-users. Our approach involves setting clear
key performance indicators (KPIs) and regularly
assessing our progress (e.g., consumer complaints).
We gather insights from various teams within our
organization and actively seek consumer feedback.
This information helps us refine our strategies and
communicate our nutrition and product quality
initiatives effectively through channels like
surveys and social media.
S4-5_03
Lessons learned or improvements
as a result of CCHBC’s performance
In identifying lessons or improvements as a result
of our performance, we engage indirectly with
consumers and end-users through their legitimate
representatives and credible proxies who have insight
into their situation. For example, each significant
consumer complaint or incident is followed by
a ‘Lessons learned’ session with the respective
stakeholders. These sessions involve discussions with
consumers and their representatives to review the
incident, understand the root causes, and identify
actionable improvements. This collaborative
approach ensures that the insights and feedback
from those directly affected are incorporated into our
performance tracking and target-setting processes,
leading to continuous improvement in our practices.
Coca-Cola HBC Integrated Annual Report 2024
172
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Task Force on Climate-related Financial Disclosures (TCFD)
Climate change is having and will continue to have
a significant impact on our business. As with all risks,
in order for our business to be truly resilient, we need
to identify the potential changes, the potential impact
they may have on our business and ensure the business
is prepared via mitigation or adaptation over the
longer term.
Our primary disclosures relating to climate change can be found in
our Sustainability Statement on pages 41 to 172 and the Principal and
emerging risk section on pages 188 to 189. These sections along with
additional information on our website, include disclosures consistent with
the guidelines provided by the TCFD, however for convenience, we provide
the following to guide the reader on where those disclosures can be found:
Disclosure
Reference
Consistency status
1. Governance: Disclose the Company’s governance around climate-related risks and opportunities
a) Describe the Board’s oversight of climate-related risks and opportunities
The role of the Board, Audit & Risk Committee and the Social Responsibility Committee are described on pages 45 to
46 of the Sustainability Statement, and on pages 178 to 180 of the business resilience section.
Fully consistent
b) Describe management’s role in identifying, assessing and managing
climate-related risks and opportunities
Management’s role in identifying, assessing and managing all risks and opportunities, including climate-related risks and
opportunities can be found on page 178 to 180 of the business resilience section with more detail found on our website.
Fully consistent
2. Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the Company’s business, strategy and
financial planning where material
a) Describe the climate-related risks and opportunities that the organisation
has identified over the short, medium and long term
Climate-related risks and opportunities and relevant time horizons have been described on pages 186 to 187 of the
principal risks and opportunities section with further details available on our website.
Fully consistent
b) Describe management’s role in identifying, assessing and managing
climate-related risks and opportunities
Management’s role in identifying, assessing and managing all risks and opportunities, including climate-related risks and
opportunities can be found on pages 186 to 187 of the principal risks and opportunities section with more detail found
on our website.
Fully consistent
c) Describe the resilience of the organisation’s strategy considering different
climate-related scenarios, including a 2-degree or lower scenario
Pages 186 to 187 of the principal risks and opportunities section and pages 55 to 56 of the Sustainability Statement
describe our assessment of climate-related risks and opportunities and how we are managing those risks to ensure the
Company can continue to meet its strategy and objectives. More detail can also be found in the Principal and Emerging
Risk Section of our website.
Fully consistent
3. Risk Management: Disclose how the Company identifies, assesses and manages climate-related risks and opportunities.
a) Describe the Company’s process for identifying and assessing climate-
related risks and opportunities
The Company’s process for identifying and assessing all risks and opportunities including those related to climate
change can be found in the principal risks and opportunities section of the integrated annual report and our website.
Fully consistent
b) Describe the Company’s process for managing climate-related risks
and opportunities
The Company’s process for managing all risks and opportunities including those related to climate change can be
found in the principal risks and opportunities section of the integrated annual report and the principal and emerging
risk section of our website.
Fully consistent
c) Describe how these processes are integrated into the overall risk
management programme
The Company’s process for identifying, assessing and managing climate-related risks and opportunities are fully
integrated into our risks management programme and details can be found in the business resilience section of
our website.
Fully consistent
4. Metrics and targets: Disclose the metrics and targets used to assess and manage climate-related risks and opportunities
a) Disclose the metrics used by the organisation to assess climate-related risks
and opportunities in line with its strategy and risk management process
Pages 186 to 187 of the principal risks and opportunities section, and pages 59 to 65 of the Sustainability Statement
disclose the metrics we use to assess climate-related risks and opportunities. Further details can also be found on
the Principal and emerging risk section our website.
Fully consistent
b) Disclose Scope 1, Scope 2 and, if appropriate Scope 3 greenhouse gas
emissions, and the related risks
Page 187 of the principal risks and opportunities section and pages 84 to 93 of the Sustainability Statement disclose
our Scope 1, 2 and 3 emissions and related risks.
Fully consistent
c) Describe the targets used by the organisation to manage climate-related
risks and opportunities and performance against targets
Page 187 of the principal risks and opportunities section relating to the Principal Risk: Managing our carbon footprint, and
pages 90 to 92 of the Sustainability Statement describe the targets used to measure performance again our targets.
Fully consistent
Coca-Cola HBC Integrated Annual Report 2024
173
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Non-Financial Reporting under Swiss statutory law
This report is prepared in compliance
with the Swiss Code of Obligations
(CO) and comprises the report on non-
financial matters in accordance with
Art. 964a et seqq. CO as well as the due
diligence and transparency requirements
according to Art. 964j-I CO in relations
to the minerals and metals from conflict-
affected areas and child labour.
Report on non-financial matters as
per Art.964a et seqq. CO
The report on non-financial matters must, according to
Swiss law contain information on the following topics:
environment matters, in particular the CO2 goals, social
issues, employee-related issues, respect for human
rights and combating corruption.
The sustainability aspects of this Integrated Annual
Report (IAR) comply with the requirements of the
Corporate Social Responsibility Directive (CSRD),
which mandates reporting in line with the European
Sustainability Reporting Standards (ESRS).
This IAR has been prepared in accordance with the GRI
Standards (2021).
The following sections give information on the topics as
required under Art. 964b CO. The vote on the non-financial
report under Swiss statutory law at the annual general
meeting is limited to the content of these sections:
General information required to
understand our business
• Section ‘Business overview’ on pages 2 to 3 of the
2024 IAR
Description of the business model
• Section ‘Our business model’ on pages 6 to 7
and ‘Stakeholder engagement’ on pages 10 to 11
of the 2024 IAR
Environmental matters (incl. CO2 goals)
• Environmental policies on our website
• Biodiversity statement
• Climate change policy
• Environmental policy
• Food loss and waste policy
• Packaging and waste management policy
• Principles for sustainable agriculture
• Water stewardship policy
• Section ‘Earn our licence to operate’ on pages 24 to 29,
section ‘Non-financial reporting’ on page 174 of the
2024 IAR
• Section ‘Task Force on Climate-related Financial
Disclosures (TCFD) on page 173 of the 2024 IAR
• Environmental table of the 2024 GRI Content Index
(pages 51 to 55); sections 201-2 Financial implications
and other risks and opportunities due to climate
change, 301-3 Reclaimed products and their packaging
materials, all sections GRI 302 Energy, GRI 303 Water
and Effluents, GRI 304 Biodiversity, GRI 305 Emissions,
GRI 306 Waste, and GRI 308 Supplier environmental
assessment of the 2024 GRI Content Index
• Section ‘Principal risks and opportunities’ on
pages 186 to 188
• Sections in Sustainability Statement of the 2024
IAR related to ESRS E1 Climate change, E2 Pollution,
E3 Water and marine resources, E4 Biodiversity
and ecosystems, and E5 Resource use and circular
economy pages 81 to 129
• With our reporting on climate matters in section
‘Task Force on Climate-related Financial Disclosures
(TCFD)’ on page 173 of the 2024 IAR and ‘ESRS E1 –
Climate change’ section on page 83 of the 2024 IAR,
we comply with the climate reporting obligations in
accordance with Art. 964b para. 1 CO with regard to
climate issues
Social issues
• Social policies on our website
• Community contributions policy (Donation policy)
• Health and wellness policy
• Occupational health and safety policy
• Responsible marketing policy for alcoholic beverages
• Quality and food safety policy
• HIV and aids policy
• Supplier guiding principles
• Principles for sustainable agriculture
• Section ‘Earn our licence to operate’ on pages 24
to 29, section ‘Non-financial reporting’ on page 174,
section ‘Cultivate the potential of our people’ on
pages 20 to 23 of the 2024 IAR
• Social table of the 2024 GRI Content Index (pages 56
to 57); all sections GRI 413 Local communities, GRI
414 Supplier social assessment, GRI 416 Customer
health and safety, GRI 417 Marketing and labelling, GRI
418 Customer privacy of the 2024 GRI Content Index
• ‘Section ‘Principal risks and opportunities’ on pages
181 to 189 of the 2024 IAR
• Sections in Sustainability Statement of the 2024 IAR
related to ESRS S1 Own workforce, S2 Employees
in the value chain, S3 Affected communities, and S4
Consumers and end-Users, pages 130 to 172
Employee-related issues
• Policies on our website
• Occupational health and safety policy
• Inclusion and diversity policy
• Whistleblowing policy
• Quality and food safety policy
• Section ‘Non-financial reporting’ on page 174 of the
2024 IAR
• Section ‘Cultivate the potential of our people’ on
pages 20 to 23 of the 2024 IAR
• Social table of the 2024 GRI Content Index (pages 56 to
57); sections 2-7 Employees, 2-19 Remuneration policies,
2-21 Annual total Compensation ratio, 2-30 Collective
bargaining agreements, all sections GRI 401 Employment,
GRI 402 Labour/Management relations, GRI 403
Occupational health and safety, GRI 404 Training and
education, GRI 405 Divers4ty and equal opportunity, GRI
406 Non-discrimination, GRI 407 Freedom of association
and collective bargaining of the 2023 GRI Content Index
• Section ‘Principal risks and opportunities’ on pages
181 to 189 of the 2024 IAR
• Sections in Sustainability Statement of the 2024 IAR
related to S1 Own workforce, pages 130 to 145
Respect for human rights
• Human rights policies on our website
• Human rights policy
• Human rights policy managers guide
• Slavery and human trafficking statement
• Inclusion and diversity policy
• Whistleblowing policy
• Section ‘Non-financial reporting’ on page 174 of the
2024 IAR
• Social table of the 2024 GRI Content Index (pages 56);
sections 2-26 Mechanisms for seeking advice and
raising concerns, all sections GRI 408 Child Labor, GRI
409 Forced or compulsory labour, GRI 414 Supplier
social assessment of the 2024 GRI Content Index
• Section ‘Principal risks and opportunities’ on pages
181 to 189 of the 2024 IAR
• Sections in Sustainability Statement of the 2024 IAR
related to ESRS S1 Own workforce, S2 Employees in the
value chain, S3 Affected communities, pages 130 to 160
Combating corruption
• Policy on our website
• Antibribery policy
• Code of business conduct
• Supplier guiding principles
• Community contributions policy
• Whistleblowing policy
• Section ‘Non-financial reporting’ on page 174 of the
2024 IAR
• Sections 2-27 Compliance with Laws and Regulations,
3-3 Management of material topics (Anti-corruption) on
page 18, 205-1 Operations assessed for risks related to
corruption, 205-2 Communication and training about
anticorruption policies and procedures, 205-3 Confirmed
incidents of corruption and actions taken, 206-1 Legal
actions for anti-competitive behaviour, anti-trust, and
monopoly practices of the 2024 GRI Content Index
Main performance indicators
• Section ‘Mission 2025’ on page 33, ‘Earn our licence to
operate’ on pages 24 to 29, ‘Cultivate the potential of
our people’ on pages 20 to 23 of the 2024 IAR
• Section ‘Tracking our progress’ on pages 30 to 34,
‘Business conduct, anti-bribery and anti-money
laundering’ and ‘Whistleblowing’ on page 221 of the
2024 IAR
• Tables in Sustainability Statement of the 2024 IAR,
pages 93, 94, 114, 127, 128, 142 to 145
References to national, European or
international regulations
• Section ‘About our report’ on page 361, SASB Index on
pages 175 to 177 of the 2024 IAR
• Sustainability Statement of the 2024 IAR on pages
44 to 172
Reporting on compliance with
due diligence and transparency
requirements in relation to conflict
minerals and child labour
We have determined that we are out of scope from
the due diligence and reporting obligations in relation
to minerals and metals from conflict-affected areas as
we do not place in free circulation or process any minerals
or metals as defined in Art. 964j CO.
Concerning the due diligence and reporting obligations
in relation to child labour under Swiss law (Art. 964j et seqq.
CO), we comply and adhere with the ILO Conventions Nos
138 and 182 as well as the ILO-IOE Child Labour Guidance
Tool for Business of 15 December 2015 as well as the UN
Guiding Principles on Business and Human Rights, as noted
in our Human Rights Policy available on our website and
therefore we conclude, that we are exempt from reporting
in accordance with the Swiss law regulations in respect
of child labour according to Art. 964j CO.
Anastassis G. David
Chair of the Board
Coca-Cola HBC Integrated Annual Report 2024
174
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
SASB index
The majority of the information required by the Sustainability Accounting Standards Board (SASB) framework is included in the 2024 IAR and the 2024 GRI Content Index. Part of the information refers to our
public website https://www.coca-colahellenic.com/
All the numbers refer to total CCHBC markets including Egypt unless otherwise stated. Currently, we do not track all metrics included in the Non-Alcoholic Beverages Standards and will work towards including
more data in the future.
Table 1. Sustainability disclosure topics and accounting metrics
Topic
Accounting metric
Category
Unit of measure
Code
Response
Fleet fuel
management
Fleet fuel consumed
Quantitative
Gigajoules (GJ)
FB-NB-110a.1
1,250,797
Percentage renewable
Percentage (%)
0%
Energy management
Operational energy consumed
Quantitative
Gigajoules (GJ)
FB-NB-130a.1
7,958,638
Percentage grid electricity
Percentage (%)
30%
Percentage renewable
Percentage (%)
28%
Water management
Total water withdrawn
Quantitative
Thousand cubic
metres (m³)
FB-NB-140a.1
30,895
Total water consumed
Thousand cubic
metres (m³)
18,240
and percentage of each in regions with High or
Extremely High Baseline Water Stress
Percentage (%)
35% water withdrawal in regions with High and Extremely High
Baseline Water Stress, 35% water consumed in regions with High
and Extremely High Baseline Water Stress.
26% water withdrawal in regions with High and Extremely High
Baseline Water Stress (without Egypt), 26% water consumed
in regions with High and Extremely High Baseline Water Stress
(without Egypt).
Description of water management risks and
discussion of strategies and practices to mitigate
those risks
Discussion
and analysis
n/a
FB-NB-140a.2
2024 IAR, Water section, Business resilience, and TCFD sections.
2024 GRI Content Index (GRI 303: Water and Effluents).
Our water management practices don’t result in tradeoffs
in land use, energy production, and greenhouse gas
(GHG) emissions.
CCHBC website – Water stewardship (https://www.coca-
colahellenic.com/en/a-more-sustainable-future/mission-2025/
water-reduction-and-stewardship)
Health and nutrition
Revenue from: zero- and low‑calorie beverages
Quantitative
EUR
FB-NB-260a.1
€1,686 million only from SSD portfolio, 23% of total SSD revenue
No added sugar beverages
EUR
Not reported; we report towards our Mission 2025 commitment
for calorie reduction per 100ml SSD by 25% (2025 vs 2015): in 2024
we reduced the calories in our SSD by 18% vs 2015.
Artificially sweetened beverages
EUR
CCHBC website – Sustainability section – Nutrition (https://www.
coca-colahellenic.com/en/a-more-sustainable-future/
mission-2025/nutrition)
Not reported
Coca-Cola HBC Integrated Annual Report 2024
175
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
SASB index continued
Table 1. Sustainability disclosure topics and accounting metrics continued
Topic
Accounting metric
Category
Unit of measure
Code
Response
Product labelling
and marketing
Percentage of advertising impressions (1) made on
children and (2) made on children promoting
products that meet dietary guidelines
Quantitative
Percentage (%)
FB-NB-270a.1
Not reported. As a member of both the Coca-Cola System and
UNESDA, we abide by the respective responsible marketing
guidelines. In addition, we have a responsible marketing policy for
alcoholic beverages, while our strategic approach towards
marketing to children is covered by our health and wellness policy.
• https://www.unesda.eu/advertising-marketing-practices/
• Health and Wellness Policy (https://www.coca-colahellenic.com/
en/about-us/corporate-governance/policies/health-wellness-
policy)
• Responsible Marketing Policy for Alcoholic Beverages (https://
www.coca-colahellenic.com/en/about-us/corporate-
governance/policies/responsible-marketing-policy-for-
alcoholic-beverages)
Revenue from products labelled as (1) containing
genetically modified organisms (GMOs) and
(2) non-GMO
Quantitative
Reporting
currency
FB-NB-270a.2
(1) None – we don’t produce/sell GMO products.
(2) Non-GMO: €10,754.4 million (100% of the portfolio).
CCHBC website – GMO Policy (https://www.coca-colahellenic.
com/en/about-us/corporate-governance/policies/genetically-
modified-organism-position-statement)
Number of incidents of non-compliance with industry
or regulatory labelling and/or marketing codes
Quantitative
Number
FB-NB-270a.3
One minor incident of non-compliance with regulatory labelling and
zero incidents with industry marketing codes in 2024.
Refer to the 2024 GRI Content Index (417-2 and 417-3).
Total amount of monetary losses as a result of legal
proceedings associated with marketing and/or
labelling practices
Quantitative
Reporting
currency
FB-NB-270a.4
Total amount of monetary losses: €0 in 2024.
Refer to the 2024 GRI Content Index (417-2 and 417-3).
Packaging lifecycle
management
Total weight of packaging
Metric tonnes (t)
854,675
(2) Percentage made from recycled and/or
renewable materials
Quantitative
Percentage (%)
FB-NB-410a.1
23.8% rPET (placed on the market); 35.8% glass; 51.7% aluminium
(3) Percentage that is recyclable, reusable,
and/or compostable
Percentage (%)
100% of primary packaging (recyclable by design)
Discussion of strategies to reduce the environmental
impact of packaging throughout its lifecycle
Discussion
and analysis
n/a
FB-NB-410a.2
CCHBC website – Sustainability section – World without waste
(https://www.coca-colahellenic.com/
en/a-more-sustainable-future/mission-2025/world-without-
waste)
Coca-Cola HBC Integrated Annual Report 2024
176
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Topic
Accounting metric
Category
Unit of measure
Code
Response
Environmental and
social impacts of
ingredient
supply chain
Suppliers’ social and environmental responsibility
audit: non-conformance rate and associated
corrective action rate for (a) major and (b) minor
non-conformances
Quantitative
Rate
FB-NB-430a.1
2024 GRI Content Index (2-6, 308-1, 308-2, 407-1, 408-1, 409-1, 414-1,
414-2).
CCHBC website – Sustainable sourcing and Our suppliers sections
(https://www.coca-colahellenic.com/en/about-us/what-we-do/
supply-chain)
CCHBC website – Sustainability section – Sourcing
(https://www.coca-colahellenic.com/
en/a-more-sustainable-future/mission-2025/sourcing)
CCHBC website – Supplier Guiding Principles (https://www.
coca-colahellenic.com/en/about-us/corporate-governance/
policies/supplier-guiding-principles)
Ingredient sourcing
Percentage of beverage ingredients sourced from
regions with High or Extremely High Baseline
Water Stress
Quantitative
Percentage (%)
by cost
FB-NB-440a.1
https://www.coca-colahellenic.com/content/dam/cch/us/
documents/about-us/what-we-do/supply-chain/sustainability-
monitoring-program.pdf.downloadasset.pdf
List of priority beverage ingredients and
description of sourcing risks due to environmental
and social considerations
Discussion
and Analysis
n/a
FB-NB-440a.2
CCHBC website – Sustainability section – Sourcing
(https://www.coca-colahellenic.com/
en/a-more-sustainable-future/mission-2025/sourcing)
2024 GRI Content Index (2-6, 308-1, 308-2, 407-1, 408-1, 409-1,
414-1, 414-2).
CCHBC website – Sustainable sourcing and Our suppliers sections
(https://www.coca-colahellenic.com/en/about-us/what-we-do/
supply-chain)
Table 2. Activity Metrics
Topic
Accounting metric
Category
Unit of measure
Code
Response
Volume of
products sold
Quantitative
Millions of
hectolitres (Mhl)
FB-NB-000.A
16,710
Number of
production facilities
Quantitative
Number
FB-NB-000.B
60 production facilities for non-alcoholic beverages
Total fleet road
miles travelled
Quantitative
Kilometres
FB-NB-000.C
409,504,573
SASB index continued
Table 1. Sustainability disclosure topics and accounting metrics continued
Coca-Cola HBC Integrated Annual Report 2024
177
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Our Business Resilience Framework
All functions and
business units
Identification & assessment of
current & emerging risks
& opportunities
Effective management
programs to reduce risk/
leverage opportunities
Effective response
to incidents
• Executive
Leadership Team
• Board and
Committees
Internal &
External Auditors
Inc. Business Continuity &
Crisis Management
Inc. Security & Insurance
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Business Resilience
Proactive management of risks and opportunities
In a volatile operating environment,
every business is presented with a similar
set of challenges whether it be economic
upheavals, pandemics, geopolitical crises
or regulatory changes. What sets those
companies that struggle apart from
those companies that not only survive
but thrive is the ability to identify
challenges and develop plans to
manage through them; or if they can’t
be prevented or predicted, the agility and
responsiveness to reduce the impact and
even take advantage of the opportunity
inherent in change. This is what we call
Business Resilience.
After endorsement by the Audit and Risk Committee
and the Board, we conducted workshops with the
senior leadership teams of every business unit (BU)
in 2024 to get feedback and to prepare them for full
implementation in 2025. We also conducted a series
of pilots to refine our approach, including more
robust business interruption risk assessments
which integrated the work we are doing to better
understand the potential impact of climate risk,
enhanced engagement with, and input from,
supply chain, risk engineering and IT; and
revalidation of property damage and business
interruption insurance coverage.
Our integrated and holistic approach to business
resilience has been particularly important in
recent years of geopolitical, economic and
environmental change. In 2024, we continued
to experience volatility in the global geopolitical
and macroeconomic environment and, ultimately,
this did have an impact on our business. However,
maintaining our resilience mindset enabled the
business to adapt and respond to those
uncertainties and achieve good results.
Our Business Resilience programme
• Our Business Resilience (BR) programme
embeds the capabilities, processes and mindset
to enable the business to anticipate and
respond to change, support sustainable growth
and ensure we continue to meet our short-,
medium- and long-term objectives.
• The foundation of our BR programme is the
robust identification and assessment of current
and emerging risks and opportunities, and the
development of effective management plans
to proactively manage those risks and leverage
opportunities. We have a structured process, built
on the principles of the International Standard
for Risk Management which engages managers
from all functions, ensuring we have broad
perspectives, and we leverage the knowledge
and experience of subject matter experts.
• Our BR programme also integrates key
management programmes – security, business
continuity, insurance and crisis management
to ensure key functions are aligned
Our Business Resilience Framework
In 2024, we developed our Business Resilience (BR)
Framework, which replaces our Enterprise Risk
Management Framework. The BR Framework
maintains all key aspects of effective risk
management but also incorporates other
BR elements – security, business continuity,
insurance and crisis management.
The BR Framework provides more structure and
simplifies our processes to enable us to focus on
core BR principles:
• Proactivity – a more structured approach
to emerging risks and opportunities enables
us to be more forward-looking and put more
emphasis on leveraging opportunities
• Cross-functional – we operate under the
principle that no risk exists in isolation nor can
it be managed in a functional silo. Every aspect
of our BR programme requires strong cross-
functional engagement
• Capability and mindset – we have placed strong
emphasis on building capabilities – and encouraging
the right mindset, to ensure the programme is
embedded in core management practice
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Business Resilience continued
Proactive management of risks and opportunities continued
We are embedding the key principles of BR
throughout CCHBC, providing managers with
the processes and tools they need to proactively
identify and assess risks, take advantage of
opportunities, make well-thought-out decisions
and take appropriate and timely action.
We measure the extent to which BR principles
and processes are embedded in our business
through key performance indicators, including the
outcomes of our annual resilience maturity survey
involving over 350 senior managers across all areas,
designed to measure our risk and resilience culture.
At least every two years, every business unit goes
through a BR validation. Led by the Group BR team
and supported by senior managers from Group
Corporate Affairs and Sustainability; Group
Quality, Safety and Environment as well as other
Group functions depending on the key risks
assessed in the BU; validations are structured
onsite reviews of the risk management, security,
business continuity and crisis management
programmes, and include training and simulation
exercises. BU teams receive detailed feedback
along with a report highlighting elements
implemented well and areas for improvement.
Outside these reviews, the Group BR team
participates in BU senior leadership team risk
reviews, as well as maintaining regular contact
with key senior managers to support effective
implementation and training to build BR capability.
Our approach to risk
As the foundation of our BR programme, we
continue to improve our robust risk management
process. We capture all current and emerging risks
within the process including our sustainability-
related risks. We have a top-down, bottom-up
approach, facilitated by the Group BR team, but
driven also by risk owners at all levels.
Noted below is the role of the Board in setting our
risk appetite which provides top-down guidance to
Group functions and BUs on the type and level of
risk the Company is prepared to accept in
achieving our objectives. The Board, Audit and
Risk Committee and the Executive Leadership
Team (ELT) play an active role in reviewing the
outcomes of the risk management process which
starts with business units and Group functions.
We follow a 3 lines model in risk management.
1. The first line centres on Business Units where
functional managers acting as risk owners, in
a process facilitated by the Business Unit Risk
Coordinator, ensure risks are identified, assessed
and effectively managed. Risk assessments and
progress on managing current and emerging
risks and opportunities are formally discussed at
monthly BU senior leadership team risk reviews.
The Risk Coordinators ensure the outcomes
of those reviews are reflected in regular updates
to the BU risk register. Likewise, Group functions
heads, acting as risk owners, are responsible for
identifying, assessing and managing risks and
opportunities across the Group relating to
their function.
2. The second line focuses on the facilitation and
assurance role of the Group BR team. The team
develops and updates the Risk Management
Guidelines, which set out the process for how
risks are identified, assessed and managed. The
Group BR team reviews all BU risk registers and
facilitates the monitoring and calibration of BU
assessments through engagement with Group
functions who act as subject matter experts on
how risks are being managed consistently across
the Group. The Group BR team also facilitates
Regional and Group reviews and the assessment
of principal and emerging risks and opportunities
which are reported to and discussed with the
Group Risk and Compliance Committee (GRCC),
ELT, Audit and Risk Committee, and the Board.
3. The third line focuses on the activities of the
internal and external auditors. The internal audit
team is responsible for auditing the Business
Resilience programme, including the risk
management programme annually. It has full
visibility of Principal and Emerging Risk register as
well as the BU risk registers and conducts its
audit of the process at Group and BU level. The
external auditors participate in the Group Risk
and Compliance Committee meetings quarterly
when the outcomes of the BU and Group level
risk assessments are reviewed.
How we govern risk and resilience
• The Board retains overall accountability and
responsibility for the Group’s business resilience,
risk management and internal control systems.
• The Board provides direction to the business
on the level of acceptable risk through the
Risk Appetite Statement and receives regular
reports from the Chief Risk Officer (CRO) on
the extent to which that statement is applied
throughout the business. In 2024, the Board
reviewed the Risk Appetite Statement and
that was applied through the setting of risk
tolerance levels for every risk that business
units and Group functions assessed.
• The Board reviews the principal and emerging
risks and opportunities and key resilience
management plans, including our Group and
local insurance programmes annually and,
through the work of the Audit and Risk
Committee, receives quarterly updates on the
effectiveness of the business resilience and
risk management programmes.
• In 2024, our CRO conducted a risk management
workshop with the Board to refresh their
understanding of business resilience and risk
management principles, and how they are
applied within the business. This is part of our
regular business resilience and risk management
education programme at all levels throughout
the business.
• The ELT reviews the principal and emerging
risks and opportunities and the effectiveness
of mitigation and management plans. The CRO
ensures that members of the ELT individually
and collectively are continually updated on
the implementation of business resilience
programmes throughout the year.
• The GRCC, co-chaired by the CRO, meets
quarterly to update our Principal and Emerging
Risk Register and review the effectiveness
of business resilience across the Group. The
GRCC is our risk and compliance ‘think tank’
ensuring assessed risks and opportunities
receive broad input and critical review.
• Our internal audit department conducts an
annual independent audit of our BR programme
and its implementation, assessing our risk
management, business continuity and crisis
management processes, and their application
against business best practices and the
International Accounting Standard.
• The Head of Corporate Audit submits their
findings and recommendations to the Audit and
Risk Committee. The Board and its committees
conduct annual reviews of the effectiveness of
our internal controls. Details of the 2024 review
are in the Audit and Risk Committee report on
pages 217 to 221.
• Our external auditors participate in our
quarterly GRCC meetings as well as one-on-
one discussions with the CRO at least once per
year to ensure the business resilience program
has been implemented effectively and that the
principal and emerging risks and opportunities
disclosed publicly are an accurate reflection of
the material risks to the business.
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Assessing, reporting and reviewing risks and opportunities
Risk and Resilience Processes in BUs and Group Functions
Monthly reviews of the risk assessments and management plans across the BUs and at least biannually with Group functions
Overlaying of external trend analysis and business intelligence
Trend analysis, emerging risk and scenario analysis
Produces biannual risk summaries for COO and Regional Director review
Biannual
reviews
Risk information is
aggregated, and the insights
are elevated for strategic
evaluation
Feedback from all stages
of evaluation and informed
insights feedback to the
business units and functions
Risk Summary
Region 1
Business Units
Risk Summary
Region 2
Business Units
Risk Summary
Region 3
Business Units
Board and Committees
(Audit and Risk Committee)
ELT
Sponsor: General Counsel
Group Risk and Compliance Committee
Co-Chair: Chief Risk Officer
Regional Director
Region 2
Risk Summary
Italy
County General
Manager
Group Function
Heads
Risk Summary
Group Functions
Regional Director
Region 1
Regional Director
Region 3
Sustainability risks
Sustainability is embedded as a core element of our
management practices and a key element of our
business resilience framework. We take the same
approach to identifying risks and opportunities and
developing management plans to reduce negative
impact or leverage opportunity with sustainability-
related risks as we do with all risks and opportunities.
On pages 186 to 187 we have summarised a
number of principal risks and opportunities
associated with the long term sustainability of our
business. On pages 188 to 189, we have also
provided a summary of a number of emerging
risks and opportunities associated with the longer
term sustainability of our business.
One of the most significant risks to our
resilience over the longer term is climate change.
By proactively assessing the impact of climate
change and preparing for and managing climate
risk through our business strategy and capital
investments, however, we can harness significant
opportunities – as shown on pages 186 to 189,
below. Climate-related risk is fully integrated into
our risk management programme and our CRO
facilitates frequent discussions with a cross-
functional team that includes representatives
from Business Resilience, Finance, Quality, Safety
and Environment, and Corporate Affairs
and Sustainability.
We also remain committed to following guidelines
provided by the Taskforce for Climate-related
Financial Disclosures (TCFD). Disclosures related
to TCFD are summarised in the table on page 173;
and are embedded in our Sustainability Statement
on page 43 and also in our risk management
section on pages 181 to 189.
Principal and emerging risks and
opportunities
We define principal risks and opportunities
as those that are, or could be, material to our
business and have the most potential to impact
our strategic objectives. We define emerging
risks and opportunities as those that may have
a significant impact on our business in the future
– both positive and negative, but around which
greater uncertainty exists, and a number of
variables could change the nature of the risk
over time.
We have summarised our principal risks and
opportunities within four key groups to emphasise
the interrelated nature of many of our risks:
• Group A: Responding to changes in the
geopolitical and macroeconomic environment
• Group B: Maintaining operational excellence in
volatile markets
• Group C: Protecting, supporting and developing
our people
• Group D: Enhancing the sustainability of
our business
On pages 188 and 189, we have also summarised
our emerging risks and opportunities as Group E.
For further information on our Business Resilience
programme and our principal and emerging risks
and opportunities, see our website.
Business Resilience continued
Proactive management of risks and opportunities continued
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Principal risks and opportunities
Group A. Responding to changes in the geopolitical and macroeconomic environment
Description: The risk of FX volatility and rates fluctuations.
Key Drivers:
Consequences
Key Mitigation Actions:
• Geopolitical tensions
• Macroeconomic conditions
• Government responses to domestic
and international conditions
• Financial losses and increased costs
• Asset impairment
• Limits on cash repatriation
• Maintain target, where feasible, of hedging
25-80% of rolling 12-month foreign
currency exposures
• Use derivative instruments and hard currency
deposits to reduce exposures
• Close engagement with Financial Risk
Management Committee and Audit and
Risk Committee of the Board
Trend:
Outlook
Increasing
• Global growth for 2025 is expected at similar levels to 2024 with increased geopolitical
volatility. The new US administration is expected to introduce further import tariffs on Chinese
and European products, which are expected to drive inflation higher, and to be less predictable
in its engagement with other countries, which may increase market volatility. We expect
continuing FX volatility in key emerging markets, particularly Nigeria and Egypt.
A1. Foreign exchange
fluctuations
Included in viability
statement?
Y
Risk owner:
Head of Treasury
Timeframe:
Short-medium
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
Risk tolerance:
Group Treasury is required to continually monitor foreign
exchange risk and ensure to the extent possible, there are
effective mitigation plans in place. While recognising
many external factors are largely out of our control,
residual risk is to remain at or below our ‘moderate’ rating.
A2. Marketplace economic
conditions
Included in viability
statement?
Y
Risk owner:
Head of Strategic Finance
Timeframe:
Short-medium
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
Risk tolerance:
Group Finance is required to continually monitor
economic conditions in collaboration with our business
units and ensure that effective mitigation plans are in
place. To the extent possible, residual risk should
remain at or below our ‘moderate’ rating.
Description: The risk of adverse changes to consumer confidence and purchasing power.
Key Drivers:
Consequences
Key Mitigation Actions:
• Challenging economic conditions
• Government responses, particularly
taxes and interest rates
• Continuing geopolitical and
macroeconomic volatility.
• Volume and revenue decline.
• Reduced profitability.
• Increased commodity costs
• Pricing and targeted actions to drive mix to
manage cost inflation.
• Carefully managed operational expense and
cost controls.
• Developed coordinated and targeted plans
with TCCC and other business partners on
promotions and marketing initiatives.
Trend:
Outlook
Increasing
• The new US administration is expected to introduce further import tariffs to Chinese and
European products, which is expected to drive inflation up. Equally, the new administration is
less predictable on the geopolitical-front and this may increase further market volatility.
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Principal risks and opportunities continued
Group A. Responding to changes in the geopolitical and macroeconomic environment continued
A3. Suppliers and sustainable
sourcing
Included in viability
statement?
Y
Risk owner:
Chief Procurement
Officer
Timeframe:
Short-medium
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
We only deal with suppliers that demonstrate a
capability for consistently delivering high-quality
products that meet our guiding principles. Residual
risk should remain at or below our ‘low’ rating.
Description: The risk of being unable to secure supply of key ingredients, packaging and services at a reasonable cost.
Key Drivers:
Consequences
Key Mitigation Actions:
• Geopolitical and macroeconomic conditions
• Financial speculation on global commodities
markets
• Hard currency liquidity issues in emerging
markets
• Increased input costs
• Inability to supply customers as a result of
business interruption
• Expanded our supplier base and introduced
new and alternative suppliers
• Detailed business continuity plans (BCP’s) in
place per market and material
• Contracted volumes of key ingredients and
packaging materials
• Contracted prices with focus on local
currency wherever feasible
Trend:
Outlook
Increasing
• We expect continuing pressure on commodity prices, energy prices and freight rates from Asia
related to geopolitical conditions, exacerbated by US threats to impose additional tariffs. Over
the longer term, we expect climate change and related regulations to affect the supply side
and cost of ingredients.
A4. Complying with international
sanctions
Included in viability
statement?
Y
Risk owner:
Head of Legal Compliance
Timeframe:
Short-medium term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
Risk tolerance:
We have no tolerance for knowingly breaching legal and
regulatory requirements, our Code of Business Conduct,
Anti-bribery Policy, and other Group and BUs ethics and
compliance policies and international sanctions. Residual
risk should remain at or below our ‘low’ rating.
Description: The risk of inadvertent non-compliance with applicable international Sanctions.
Key Drivers:
Consequences
Key Mitigation Actions:
• The Russia/Ukraine crisis and the
international response.
• Potential for broadening of sanctions.
• Tougher economic conditions that increase
the risk of non-compliance.
• Significant financial and criminal fines.
• Litigation costs.
• Costs of remedies imposed by authorities in
negative ruling.
• Training on sanctions for targeted employees
• Sanctions Policy and Recusal Policy
• Russia and Belarus IT systems separation to
address impact of EU sanctions
• Internal investigation process led by the audit
department
• Enhanced third party screening
Trend:
Outlook
Stable
• Given the current geopolitical environment and the territories we operate within, we expect
this risk to remain significant for the foreseeable future. We expect the international sanctions
environment to remain complex in the short to medium term.
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Principal risks and opportunities continued
Group B. Maintaining operational excellence in volatile markets
Description: The risk of network intrusion, service availability and breach of data confidentiality and integrity.
Key Drivers:
Consequences
Key Mitigation Actions:
• Increasing use of cloud-based IT solutions
and working from home
• Increasing sophistication of malware and
ransomware actors, use of AI
• Complex third-party ecosystem
• Operational disruptions and financial losses
• Damage to corporate reputation
• Data breaches and privacy violations
• Regulatory and legal costs
• Maintained ISO/IEC 27001 certification
(Information Security Management
Systems);
• Continue to strengthen our protection
capabilities to secure applications, data,
cloud, endpoints, identities and network
• Enhanced cyber threat detection and
incident response capabilities
• Simulated hacker attacks and vulnerability
assessments, remediation of findings
Trend:
Outlook
Increasing
• The number and sophistication of cyber incidents is expected to increase in the short to
medium term. Stakeholder concerns about data privacy and requirements to protect it will
continue to increase. Government agencies will continue to improve their capabilities to
investigate and respond to cybercrime.
B1. IT resilience and data privacy
– Cyber incidents
Included in viability
statement?
N
Risk owner:
Chief Information Security
Officer
Timeframe:
Short-medium
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
We are committed to establishing and maintaining
strong internal controls related to cyber security
across our business. Residual risk should remain
at or below our ‘low’ rating.
B2. Business interruption
Included in viability
statement?
N
Risk owner:
Chief Supply Chain Officer
Timeframe:
Short-medium term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
Risk tolerance:
We have low tolerance for being unprepared for
disruptive incidents. All business units are required
to conduct risk assessments for business interruption
for every plant and use those assessments to develop
their business continuity plans. The residual risk should
remain at or below our ‘Low’ rating.
Description: The risk of being unable to supply our customers with product for an extended period in the event of a
major disruption.
Key Drivers:
Consequences
Key Mitigation Actions:
• Geopolitical instability
• Increasing frequency and severity of
extreme weather events resulting from
climate change
• Increasing risk of cyber attacks
• Impact on ability to deliver profitable growth
• Safety risk to employees
• Relationship with key customers in the event
of inability to supply
• Requirement that all plants have BCPs
consistent with new requirements by 2025
• Revision of Business Interruption insurance
cover to ensure we mitigate financial risk
• Business continuity plans based on robust
Business Interruption Risk Assessment in
every business unit for every plant
• Strengthen cyber security controls and
response in plants
Trend:
Outlook
Increasing
• We expect continuing volatility in ingredients and raw material supply (short to medium). We
will see an increase in the number and severity of extreme weather events as a result of climate
change (medium to long term).
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Principal risks and opportunities continued
Group B. Maintaining operational excellence in volatile markets continued
B3. Product quality and food
safety – Quality incidents
Included in viability
statement?
N
Risk owner:
Chief Supply Chain Officer
Timeframe:
Short-medium term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
Business units are required to maintain compliance with
Legal, CCH and TCC System Kore requirements. We have no
tolerance for products that may pose a health or safety risk
for consumers and these should be classified as an incident
or elevated incident within the meaning of the IMCR program.
Residual risk should remain at or below our ‘Low’ rating.
Description: The risk of serious product quality incidents or contamination of our products
Key Drivers:
Consequences
Key Mitigation Actions:
• Changes to suppliers and their processes
• Potential for human error
• Equipment or system failure.
• Intentional acts
• Illness to consumer
• Adverse financial impact of events such as
product withdrawals and recalls
• Reputational damage
• QFS capabilities through Quality Academy
basic and advanced level implementation as
part of Maturity Matrix programme
• Full implementation of CCH QFS prevention
programmes
• QFS management system certification
• Elevated and risk-based supplier quality
management.
• Updated and tested product withdrawal and
recall plans
Trend:
Outlook
Stable
• We have continued to reduce the number of quality-related incidents over time however, we
remain vigilant given the impact they can have on our business.
Group C. Protecting, supporting and developing our people
Description: The risk to the safety and security of our people and potential interruption of our business as a result of
geopolitical instability and volatile security environment.
Key Drivers:
Consequences
Key Mitigation Actions:
• Russia/Ukraine crisis
• Israel/Palestinian conflict and the potential
for expansion
• New US government policies and
approaches to its international relationships
• Safety of our people
• Financial impact of sanctions
• Supply chain instability
• Enhanced security risk assessments to
better inform management plans
• Improvement of emergency and
contingency plans for affected markets
• Continuing IMCR development and training
Trend:
Outlook
Increasing
• Continuing volatility over the medium to long term. Although we may see a cease-fire in 2025,
we do not expect a lasting resolution of the Russia/Ukraine crisis in the short term. The Israel/
Palestine conflict is likely to continue in 2025, with a potential for anti-US sentiment and impact
on supply chains and oil prices. Increasing influence of far right sentiment in Europe may have
an impact on social cohesion.
C1. Geopolitical and security
environment
Included in viability
statement?
Y
Risk owner:
Chief Risk Officer
Timeframe:
Short-medium
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
Risk tolerance:
We have no appetite for knowingly exposing our employees
to potentially dangerous situations without having effective
plans in place to reduce the risk to acceptable levels.
These plans are reviewed and tested regularly. Residual
risk should remain at or below our ‘Low’ rating.
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Principal risks and opportunities continued
C2. Health and Safety
Included in viability
statement?
N
Risk owner:
Head of Quality, Safety
and Environment
Timeframe:
Short-medium term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
We have no tolerance for failing to comply with workplace
health and safety policies. Residual risk should remain at
or below our ‘low’ rating.
Description: The risk of health and safety and occupational workplace incidents involving our employees,
contractors or 3PLs
Key Drivers:
Consequences
Key Mitigation Actions:
• Traffic conditions in selected countries
• Non-compliance with or breaches of health
and safety (H&S) requirements
• Inadequate contractual provisions and/or
behaviours of contractors
• Fatalities and/or serious injuries
• Damage to our reputation as a caring,
responsible employer if not handled properly
• Financial losses
• Continued implementation of our Behaviour
Based Safety (BBS) programme, including
human and organisational principles (HOP),
across the organisation
• Compliance with LSR (Life Saving Rules)
requirements
• Involved leaders on all levels in H&S
observations and H&S conversations
Trend:
Outlook
Stable
• We remain optimistic that our training and awareness programmes will continue to reduce
fatalities and injuries.
Group C. Protecting, supporting and developing our people continued
C3. People attraction and
retention
Included in viability
statement?
N
Risk owner:
Head of People
Operations
Timeframe:
Short-medium term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
Risk tolerance:
We will strive to remain an employer of choice, provide
effective career development programmes and maintain
high levels of employee engagement. Residual risk should
remain at or below our ‘low’ rating.
Description: The risk of failing to attract and retain the highest calibre people to take advantage of opportunities in
the future.
Key Drivers:
Consequences
Key Mitigation Actions:
• Expectations for flexible working
arrangements
• Industry value proposition as an employer
of choice
• Development of technology and online tools
to enhance team engagement
• Failure to meet our goals
• High turnover in critical positions resulting in
knowledge and productivity loss
• Potential imbalance between male and
female employees
• Continuous listening to measure culture
and engagement and address findings
• Improved people management skills
to enhance engagement and energise
employees sustainably, including how
to manage remote teams
• Maintained our leadership development
programme and continued to foster our
coaching and mentoring culture
Trend:
Outlook
Stable
• Talent retention will be an ongoing challenge over the short to medium term as adjustments
are made to new ways of working. However, highly engaged and talented people are critical
for our resilience and our investment in our workforce presents a significant opportunity for
our business.
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Principal risks and opportunities continued
Group D. Enhancing the sustainability of our business
Description: The risk that health and environmental concerns and budgetary pressures will impact brand perceptions
and increase governments use of discriminatory taxes and regulations
Key Drivers:
Consequences
Key Mitigation Actions:
• Consumer concerns around health,
environmental and social issues
• Government responses to health issues
and budgetary pressures.
• International initiatives/organisations
promoting discriminatory measures
• Financial impact
• Forced changes in product formulations
and portfolio mix.
• Impact on reputation and product
affordability and acceptability
• Monitor developments from leading
health/political organisations
• Constructive engagement with key
stakeholders to navigate possible tax/
regulatory changes
• Continue product innovation and
expansion of 24/7 portfolio to respond
to consumer needs, including expansion
of no/low calorie beverages
Trend:
Outlook
Increasing
• Heightening concerns around health into the medium to longer term. Increasingly demanding
regulatory environment in the EU. Increasing budgetary pressures and policies to address
consumer health concerns increase the risk of additional sugar/beverage taxes and regulations
in the short term.
D1. Product-related regulatory
changes and taxes
Included in viability
statement?
Y
Risk owner:
Head of Public & Regulatory
Affairs
Timeframe:
Medium
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
All business units are required to continually monitor
regulatory and tax developments, fiscal pressures and
consumer concerns, and identify triggers that can translate
into regulatory changes and potential new taxes. Residual
risk should remain at or below our ‘moderate’ rating.
D2. Cost & availability of
sustainable packaging
Included in viability
statement?
Y
Risk owner:
Head of Sustainability
Timeframe:
Medium-long term
Strategic Growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
All business units are required to establish a process for
monitoring and reporting potential regulatory changes
relating to packaging. Residual risk should remain at or
below our ‘moderate’ rating.
Description: The risks and opportunities associated with designing and implementing a profitable future pack mix to
meet regulatory requirements and our sustainability targets.
Key Drivers:
Potential Consequences
Key Mitigation Actions:
• Price dynamics of recycle-friendly raw
materials such as rPET and aluminium
• Collection rates in high plastic volume
markets
• Access to quality feedstock
• New EU regulations on plastics and
packaging waste
• Impact on reputation
• Estimated increase in annual cost of packaging
of 13.2% by 2030 and 2.2% by 2040 under a
Paris Ambition (RCP1.9) climate scenario
• Estimated increase in annual cost of packaging
of 4.2% by 2030 and 0.4% by 2040 under
a stated policy (RCP4.5) climate scenario
• Increase in sales and profits by developing
a profitable pack mix that resonates
with consumers
• Continued implementing strategic
initiatives to drive circularity
• Increasing percentage of recycled
materials and reusable packs
• Partnering with regulatory authorities,
industry peers, start-ups and NGOs to
develop effective package recovery systems
• Identifying new technologies and innovation,
focusing on new and alternative packaging
solutions such as packageless and refillables,
recycling to improve packaging carbon
footprint and reduce waste
Trend:
Outlook
Increasing
• We will continue to see heightened stakeholder concerns over the medium term and increased
regulation across EU markets. The price of good quality recycled material will continue to rise
over the medium term as industries focus on increasing recycled content.
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Principal risks and opportunities continued
Group D. Enhancing the sustainability of our business continued
D3. Managing our carbon
footprint
Included in viability
statement?
Y
Risk owner:
Head of QSE
Timeframe:
Medium-long term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
We have a low tolerance for conducting activities that
are not optimising our overall carbon emissions over
the medium to long term. Residual risk should remain
at or below our ‘Low’ rating.
Description: The risks and opportunities associated with decarbonisation of our value chain.
Key Drivers:
Potential Consequences
Key Mitigation Actions:
• Increasing pressure to reduce emissions
and transparency on our actions and targets
• Complexity of managing business growth
while reducing emissions
• Legal requirements linking sustainability
with financial reporting and investments
• Increasing use of carbon taxes and trading
schemes to reduce carbon emissions
• Impact on the environment and our
reputation
• Estimated annual costs of scope 1 and 2
emissions of €25.5m by 2030 reducing to
€9.3m by 2040 under an RCP1.9 scenario,
and €10.8m by 2030 reducing to €2.8m by
2040 under an RCP4.5 scenario
• Significant capital expenditure over the longer
term to fund carbon reduction initiatives
• Implemented actions guided by
NetZeroby40 transition plans, including
mitigation and adaptation plans
• Stress tested adaptation plans against
multiple climate scenarios
• Embedded climate change response
into all business continuity plans
• Enhanced public transparency and
communication of climate change
risks and adaptation plans
Trend:
Outlook
Increasing
• We expect that consumer, customer and regulatory pressure will continue to increase and apply
pressure on all companies to reduce their carbon footprint. We expect there will be increased
scrutiny on our sustainability initiatives from regulators and non-government organisations.
D4. The impact of climate change
on the cost and availability of
water
Included in viability
statement?
Y
Risk owner:
Head of QSE
Timeframe:
Long term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
Risk tolerance:
We have a low tolerance for conducting activities that
do not optimise our use of water. Residual risk should
remain at or below our ‘Low’ rating.
Description: The risks related to the impact of climate change on water availability, water stress and water quality in
our areas of operation.
Key Drivers:
Consequences
Key Mitigation Actions:
• Increased water stress in eight countries
due to climate change under multiple
climate scenarios
• Local community needs for clean water,
particularly in areas of water stress
• Increased regulatory pressure, including
imposition of taxes and levies
• Climate change may increase the level of
water stress on 29 plants, with estimated
significant impact on 20 plants under an
RCP4.5 climate scenario and 17 plants under
an RCP8.5 climate scenario
• Climate change is unlikely to materially
increase the annual cost of water; however,
we estimate that we will need to invest up
to an additional €68.4m in Capex by 2030
and up to another additional €99.3m in the
period 2031-2040 in water infrastructure to
ensure sufficient availability for production
and to support local community needs
• Damage to our reputation
• Water usage reduction plans across
our operations
• Water stewardship programmes in water
priority locations to mitigate shared water risks
• Updated source vulnerability assessments for
all plants and enhanced our plans, including
identification of additional capital expenditure
required for enhancing infrastructure
• Focus on water treatment innovative
technologies for water priority locations
• Integrated environmental KPIs monitoring
and reporting for all plants
• Investment in enhancing water infrastructure
Trend:
Outlook
Increasing
• Water stress in our water priority locations is likely to increase as a result of climate change. The extent
of that increase will depend both on our actions and on the global response to climate change.
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Principal risks and opportunities continued
Group E. Emerging risks
Although we are constantly monitoring our operating environment for potential new risks and opportunities, the following
emerging risks and opportunities are subject to additional assessment as at December 2024:
Description: The property damage and business interruption risk associated with increasing frequency and severity of
extreme weather.
Key Drivers:
Potential Consequences:
Key Indicators:
• Changing weather patterns
• Government and other organisation’s
responses to climate change
• Disruption to our production and distribution,
and inability to supply our customers
• Increased insurance premiums (estimated
at additional €2.05m annually by 2050 under
an RCP4.5 climate scenario)
• Inability to insure higher-risk properties
• Additional Capex of €6.8m to mitigate the
impact and/or implement adaptation plans
as a direct result of climate change
• Estimates of weather pattern changes over
the medium to long term
• International organisation and
government responses to indicate most
likely climate scenarios
• Insurance industry outlook
• National government responses to
climate change
Key Mitigation/Adaptations:
• Planned Capex to reduce risk of extreme weather events, enhancement of our business continuity programme.
Description: The impact of climate change on the cost and availability of key ingredients such as sugar, coffee and fruit
juices over the longer term, reducing crop yields in some areas but potentially improving growing conditions in others.
Key Drivers:
Potential Consequences:
Key Indicators:
• Changing weather patterns
• Government and other organisations’
responses to climate change
• Disruption to our production capabilities
if we cannot obtain sufficient quantities
of key ingredients
• Estimated increased annual costs of key
ingredients by 9.2% by 2030 and 1.3% by
2040 under an RCP1.9 climate scenario
• Estimated increased annual costs of key
ingredients by 4.4% by 2030 and 0.5% by
2040 under an RCP4.5 climate scenario
• Estimates of weather pattern changes over
the medium to long term
• International organisation and government
responses to indicate most likely
climate scenarios
• National government responses to
climate change
Key Mitigation/Adaptations:
• Close collaboration with our suppliers to understand and, where appropriate, assist with potential changes in crop yields, broadening of supplier
base and identification of suppliers/growing regions that may be positively impacted.
E1. Impact of extreme weather
on our production and
distribution
Included in viability
statement?
Y
Risk owner:
Chief Supply Chain Officer
Timeframe:
Medium-long term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
E2. Impact of climate change on
the cost and availability of key
ingredients
Included in viability
statement?
N
Risk owner:
Chief Procurement
Officer
Timeframe:
Long term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
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Principal risks and opportunities continued
Group E. Emerging Risks continued
Description: The risks associated with increasing incidents of misinformation and disinformation, particularly through
the use of Artificial Intelligence.
Key Drivers:
Potential Consequences:
Key Indicators:
• Technological development, particularly in AI
• Level and effectiveness of government
regulations and guard rails
• Reputation damage
• Management effort and potential legal costs
• Privacy and data security concerns
• Technological development in AI
• Investment levels
• Governments/international organisations
moves to impose regulation
Key Mitigation/Adaptations:
• Development of internal policies, standards and guidelines on use of AI. Development of governance model overseen by cross-functional team
and training for employees on safe and secure use of AI.
Description: The risks and opportunities associated with rapid changes in the retail environment particularly in the
development of omni-channel strategies by large retail customers.
Key Drivers:
Potential Consequences:
Key Indicators:
• Consumer demand for convenience
• Technological advances in e-commerce
and data analytics
• Risk to market share and revenue if we don’t
adapt quickly enough to providing real-time
data and support for multiple sales channels
• Opportunity associated with building an
effective omni-channel strategy
• Retail customers’ focus on their
omni-channel strategy
• Consumer responses to different
retail strategies
• Growth of online only vs multi-channel retailers
Key Mitigation/Adaptations:
• Enhance analysis to monitor change and identify gaps in capability, International key account strategies to have omni-channel focus,
Engagement with retail customers and use of data to leverage opportunities for our customers and ourselves.
E3. Impact of misinformation and
disinformation
Included in viability
statement?
N
Risk owner:
Chief Information Security
Officer
Timeframe:
Medium-long term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
E4. Omni-channel evolution
Included in viability
statement?
N
Risk owner:
Head of International Key
Accounts
Timeframe:
Medium-long term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
N
Description: The risks and opportunities associated with how consumers perceive our performance on a range of
environmental issues including reducing carbon emissions, packaging and water usage.
Key Drivers:
Potential Consequences:
Key Indicators:
• Consumer concerns about
environmental issues
• Greater scrutiny of our environmental
performance
• Positive or negative impact on our
reputation, which leads to actual increase/
decrease in sales
• Changes to our ‘e-score’ relative to other
companies in the food and beverage industry
• Translation of ‘e-score’ to sales
Key Mitigation/Adaptations:
• Close monitoring of consumer perceptions, adjustment of sustainability strategy where appropriate.
E5. The impact of consumer
perceptions of our
environmental performance
Included in viability
statement?
N
Risk owner:
Head of Sustainability
Timeframe:
Medium-long term
Strategic growth pillar:
1
2
3
4
5
Considered in double
materiality assessment?
Y
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Financial Statements
Corporate Governance
Strategic Report
Viability statement
Business model and prospects
Our business model and strategy, outlined on
page 6 of this report, documents the key factors
that underpin the evaluation of our prospects.
These factors include our:
• attractive geographic diversity;
• strong sales and execution capabilities;
• ability to innovate;
• market leadership;
• global brands; and
• diverse beverage portfolio.
The ongoing Russia/Ukraine conflict and
Middle East tensions as well as the prospect
of heightened geopolitical instability as result
of changes in the US and its relationships with
other countries, could continue to impact
global supply chains and exacerbate economic
challenges in our markets, in combination with
persisting inflation and FX volatility particularly
in Egypt and Nigeria.
While the Board considers that our markets will
continue to face changes over the medium to
longer term it believes that our diverse geographic
footprint, including a balance of well-established
markets and exposure to emerging markets that
have low per capita consumption and therefore
greater opportunity for growth, and a proven
strategy in combination with our leading market
position, offer significant opportunities for
future growth.
Our Board has historically applied and continues
to apply a prudent approach to the Group’s
decisions relating to major projects and
investments. From 2020 to 2024, we generated
free cash flow of €634 million per year on average.
Key assumptions of the business plan
and related viability period
The Group maintains a well-established strategic
business planning process which has formed the
basis of the Board’s quantitative assessment of
the Group’s viability, with the plan reflecting our
current strategy over a rolling five-year period.
The financial forecasts in the plan are based on
assumptions for the following:
• key macroeconomic data that could impact
our consumers’ disposable income and
consequently our sales volume and revenues;
• various scenarios relating to the ability
of governments in key markets to manage
the economic conditions in their countries;
• key raw material and other input costs;
• the impact of climate change, particularly
associated with the transition to a lower carbon
economy and the costs of carbon under
multiple climate scenarios (see also pages 186
to 187 for more information on our quantitative
assessments of the impact of climate change.
In addition to 2030 and 2040, we also included
interim calculations to 2029 for the purpose of
our viability assessment);
• the impact of ongoing conflicts such as the
Russia-Ukraine crisis and ongoing instability in
the Middle East, including calls for boycotts of
US brands in some of our markets;
• foreign exchange rates; including the economic
conditions affecting the Egyptian pound, the
Nigerian Naira and the impact of the Russia-
Ukraine conflict on the Russian rouble;
• spending for production overhead and
operating expenses;
• working capital levels; and
• capital expenditure.
The Board has assessed that a viability period of
five years remains the most appropriate. This is
due to its alignment with the Group’s strategic
business planning cycle, consistency with the
evaluated potential impacts of our principal risks
as disclosed on pages 181 to 187 and our
impairment review process, where goodwill and
indefinite-lived intangible assets are tested based
on our five-year forecasts.
Assessment of viability
Qualitatively and quantitatively, we analysed the
output of our robust enterprise risk management,
internal business planning and liquidity
management processes, to ensure that the
risks to the Group’s viability are understood
and are being effectively managed.
The Board has concluded that the Group’s
well-established processes across multiple
streams continues to provide a comprehensive
framework that effectively supports the
operational and strategic objectives of the Group.
It also provides a robust basis for assessment and
confirmation of the Group’s ability to continue
operations and meet its obligations as they fall
due over the period of assessment.
Supporting the qualitative assessment was
a quantitative analysis performed as part of
strategic business planning. This assessment
included, but was not limited to, the Group’s ability
to generate cash.
We have continued to stress test the plan against
several severe but plausible downside scenarios
linked to certain principal risks as follows:
Scenario 1:
The impact of changes to foreign exchange rates
was considered, particularly the depreciation of
foreign currencies including the Egyptian pound,
Nigerian Naira and Russian Rouble, also
considering effects from the Russia-Ukraine
conflict and other geopolitical developments.
Principal risks: Foreign exchange fluctuations,
Marketplace economic conditions and
Geopolitical and security environment.
Scenario 2:
Lower estimates for sales volumes for various
reasons including the continuing difficult
economic conditions in our markets and the ability
of governments to manage these, including the
impact of the continued Russia-Ukraine conflict.
Principal risks: Marketplace economic conditions,
and Geopolitical and security environment.
Scenario 3:
Continued stakeholder focus on issues relating to
sugar and packaging resulting in the potential for
discriminatory taxation. Principal risks: Product-
related regulatory changes and taxes, and Cost
and availability of sustainable packaging.
Scenario 4:
Higher input costs including raw materials and energy
costs. Principal risks: Suppliers and sustainable
sourcing, and Marketplace economic conditions.
Scenario 5:
Lower sales volumes driven by climate change
including higher costs of water, the projected
costs of carbon emissions and the impact of
extreme weather on our production and
distribution under multiple climate scenarios.
Principal risks: The impact of climate change on
the cost and availability of water, Managing our
carbon footprint, Impact of extreme weather on
our production and distribution (Emerging risk).
The above scenarios were tested both in isolation
and in combination. The stress testing showed that
due to the stable cash generation of our business,
the Group would be able to withstand the impact
of these scenarios occurring over the period of
the financial forecasts. This could be conducted
by making adjustments, if required, to our operating
plans within the normal course of business, including
but not limited to adjustments to our operations and
temporary reductions in discretionary spending.
Following a thorough and robust assessment of
the Group’s risks that could threaten our business
model, future performance, solvency or liquidity,
the Board has concluded that the Group is well
positioned to effectively manage its financial,
operational and strategic risks.
Viability Statement
Based on our assessment of the Group’s prospects,
business model and viability as outlined above, the
Directors can confirm that they have a reasonable
expectation that the Group will be able to continue
operating and meet its liabilities as they fall due over
the five-year period ending 31 December 2029.
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Financial Statements
Corporate Governance
Strategic Report
Headings
Governance at a glance
Corporate Governance Compliance statement
As a Swiss corporation listed on the London Stock Exchange (LSE) with a secondary listing on the Athens Exchange,
we aim to ensure that our corporate governance systems remain in line with international best practices. Our
corporate governance standards and procedures are continuously reviewed in light of current developments and
rulemaking processes in the UK, Switzerland and also the EU. Find out more on pages 193 to 194.
Nationalities
American
2 15%
American/Brazilian
1
8%
British
4 30%
British/Cypriot
1
8%
Bulgarian
1
8%
Croatian
1
8%
Greek
1
8%
Nigerian
1
8%
Swiss
1
8%
Corporate
Governance
Report
Compliance with the UK Corporate Governance Code 2018
Board leadership and Company purpose
A Effective and entrepreneurial Board to promote the long-term sustainable success
of the Company, generating value for shareholders and contributing to wider society.
B. Purpose, values and strategy with alignment to culture.
C. Resources for the Company to meet its objectives and measure performance.
Controls framework for management and assessment of risks.
D. Effective engagement with shareholders and stakeholders.
E. Consistency of workforce policies and practices to support long-term sustainable success:
• Letter from the Chair of the Board
• Board leadership and Company purpose
• Strategic Report
• Engaging with our key stakeholders
• Culture in action
• Overseeing strategic delivery
• Audit and Risk Committee
• Conflicts of interest
192
1, 198 to 199, 203
1 to 198
200 to 201
204
202
217
194
Division of responsibilities
F. Leadership of Board by Chair.
G. Board composition and responsibilities.
H. Role of NEDs.
I. Company’s policies, processes, information, time and resources:
• Board composition
• Key roles and responsibilities
• Division of responsibilities for the Board
• Support and training for the Board
• Board appointments and succession planning
193
195 to 197, 205
205 to 206
212 to 213
213
Composition, succession and evaluation
J. Board appointments and succession plans for Board and senior management and promotion of diversity.
K. Skills, experience and knowledge of Board and length of service of Board as a whole.
L. Annual evaluation of Board, committees and Directors and demonstration of whether
each Director continues to contribute effectively:
• Board composition
• Application of Coca-Cola HBC’s corporate governance practices
• Diversity, tenure, skills and experience
• Board performance review
• Nomination Committee
193
193
194, 195 to 197, 213
214
211
Audit, risk and internal controls
M. Independence and effectiveness of internal and external audit functions and integrity of
financial and narrative statements.
N. Fair, balanced and understandable assessment of the Company’s position and prospects.
O. Risk management and internal control framework and principal risks the Company is willing to take
to achieve its long‑term objectives:
• Audit and Risk Committee
217
• Strategic Report (Business Resilience)
178 to 180
• Fair, balanced and understandable Annual Report
217, 218 and 248
• Going concern basis of accounting
248
• Viability statement
190
Remuneration
P. Remuneration policies and practices to support strategy and promote long-term sustainable
success with executive remuneration aligned to Company purpose and values.
Q. Procedure for Executive Director and senior management remuneration.
R. Authorisation of remuneration outcomes:
• Remuneration Committee report
222 to 247
Independent NEDs
6 46%
NEDs
Executive directors
6 46%
1 8%
Board independence
(number and %)
TCCC
21
Kar-Tess Holding
Free ĥoat
23
56
Shareholder structure
(%)
Men
8 62%
Women
5 38%
Board gender diversity
(number and %)
18–19
3
2
1
1
1
2
2
1
23%
15%
8%
8%
8%
15%
15%
8%
Tenure (years)
0–1
1–2
3–4
5– 6
6–7
8–9
10–11
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Corporate Governance
Supplementary Information
Swiss Statutory Reporting
Financial Statements
Strategic Report
Letter from the Chair of the Board
The governance imperative in times of change
Dear Stakeholder,
On behalf of the Board, I am pleased to share the
Corporate Governance Report for the financial
year ended 31 December 2024. The Board is
responsible for the effective leadership of the
Group and promoting the highest standards
of corporate governance, while also ensuring
our governance standards and systems operate
in line with international best practices.
Ensuring the right culture
The Board plays a critical role in shaping and
strengthening the culture of the Group by
promoting growth-focused and values-based
conduct with a focus on driving impact for our
people and our business. Over the past two years,
we have embedded our Culture Manifesto and
we continue focusing on bring our values to life.
Directors lead by example cascading good
behaviour throughout the Group. The Board
monitors and assesses our culture through
internal and external metrics. Our strong
employee engagement results this year are a
testament of our confidence that we have the
right culture in place to achieve our purpose.
Stead fast governance for
complex times
We aim to ensure best-practice governance
through robust processes and frameworks.
Our considered, strategic and sustainable
approach has laid strong foundations and enabled
us to be future ready. Together, we have faced
uncertainties and made bold, ambitious choices,
opening up moments that refresh us all – our
people, our customers, our partners and our
wider stakeholders.
Throughout 2024, the Board has heard from
a range of speakers presenting on a variety
of topics – from the financial markets to the
Corporate Sustainability Reporting Directive
(CSRD). External speakers enhance our
collective insight and diversity of thought.
This, combined with each Board member’s
extensive knowledge and experience, ensures
we continue to be best placed to make bold and
informed strategic decisions, and to challenge
and support the ELT to reach better outcomes.
Leadership in action
2024 was another year of strong growth in
a range of market conditions. I am reassured
by the Board’s contribution in decision making
representing effectively the interests of all
stakeholders in a diverse range of issues, from
engaging with our communities and shareholders
to addressing the impact from the Bambi plant
fire and improving customer experience
and collaboration.
Board composition and diversity
During the year, the Board’s composition,
skills, experience and broader aspects of diversity
were reviewed to ensure the Board continues to
function effectively. We believe that a diverse
Board fosters both innovation and resilience.
The Board is cognisant of the Financial Conduct
Authority’s (FCA) UK Listing Rules on targets for
gender and ethnic diversity (see the Nomination
Committee report on page 213). We continue to
attach great importance to all aspects of diversity
in our nomination processes for Board members
and the ELT, but continue to appoint candidates
for continued growth and performance within our
highly specialized sector. As at the date of this
report, female Directors comprised more than
38% of our Board – just below the FCA gender
target of 40%.
Coca-Cola HBC welcomed three new Board
members in 2024, Zulikat Wuraola Abiola, Elizabeth
Bastoni and Glykeria Tsernou, who bring a wealth
of experience and are already making significant
contributions. We are extremely grateful and would
like to thank Olusola (Sola) David-Borha, Alexandra
Papalexopoulou and Anna Diamantopoulou, who
retired from the Board and left Coca-Cola HBC
in 2024, for their valuable contributions to the
Group over the years.
Board review and effectiveness
In accordance with the UK Corporate Governance
Code 2018 and the Board’s commitment to adhere
to best corporate governance practices, an
externally facilitated Board effectiveness review
was undertaken in the second half of 2024. Key
outcomes are included on page 214 of the
Nomination Committee report. The Board
concluded that it remains effective, as well as
fostering a positive culture, and maintains a strong
sense of accountability to its stakeholders. A review
will be undertaken in 2025 to apply the learnings.
Governance with a future-ready lens
Despite the challenging markets, our resilience
is confirmed by our continued revenue growth,
profit expansion and sustained strong cash
generation. Our people and culture are at the
heart of everything we do. As we continue to
focus on our sustainable growth and robust
governance, I would like to extend my gratitude
to my Board colleagues and members of the ELT,
as well as offering my thanks to all Coca-Cola HBC
colleagues, customers, consumers and partners.
Their dedication, loyalty and hard work throughout
the year position the Company to remain on track
with our targets for sustainable, profitable growth.
Anastassis G. David
Chair of the Board
Our unique culture, heritage and
values are a fundamental part of
delivering sustainable value to all our
stakeholders. Our robust governance
practices are a strong foundation for
making our business future ready.”
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192
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Compliance with the UK Corporate
Governance Code 2018
As a Swiss corporation listed on the LSE with a
secondary listing on the Athens Exchange, we aim
to ensure that our corporate governance systems
remain in line with international best practices.
We continuously review our corporate governance
standards and procedures considering current
developments and rulemaking processes in the UK,
Switzerland and the EU. Further details are available
on our website. Pursuant to our obligations under the
UK Listing Rules, we apply the principles and comply
with the provisions of the UK Corporate Governance
Code or explain any instances of non-compliance
in our Integrated Annual Report. For the year ended
31 December 2024, Coca-Cola HBC was subject
to the UK Corporate Governance Code 2018 (UK
Corporate Governance Code). Our Board confirms
that Coca-Cola HBC applied the principles, as far as
possible and in accordance with and as permitted
by Swiss law, and complied with the provisions of
the UK Corporate Governance Code throughout
2024, except for the following provisions:
1. The Chair was not independent on appointment
(provision 9) and has been a Board member for more
than nine years (provision 19). Anastassis David was
originally appointed as a non-Executive Director
(NED) in 2006 at the request of Kar-Tess Holding and
was not, at the time of his appointment as Chair, in
2016, independent as defined by the UK Corporate
Governance Code. Further details are set out in
the section on independence on page 194.
2. Provision 38 requires alignment of Executive
Director pension contributions with the wider
workforce. Our difficulties in compliance with this
provision due to existing contractual obligations
were outlined in the Annual Report published
in 2021 and are explained on page 229 of
the Directors’ remuneration report. On the
appointment of any new Executive Director,
we intend that their pension contributions
will be aligned with the pension scheme for
the wider workforce. For more information
on appointment of Directors and compliance
with the UK Corporate Governance Code
see page 212 and 213.
Swiss corporate rules
There is no mandatory corporate governance
code under Swiss law applicable to Coca-Cola HBC.
The main source of law for Swiss governance rules
is the company law contained in article 620 et seqq.
of the Swiss Code of Obligations. Swiss company
law includes provisions regarding the compensation
in listed companies and further limits the authority
of the Remuneration Committee and the Board to
determine compensation. The effective limitations
include an AGM approval requirement for the total
amount for the Board and the amount attributable
to each member, as well as the total amount for the
ELT and the highest amount attributable to an ELT
member. Other limitations include a requirement
that certain compensation elements be authorised
in the articles of association (Articles) and a
prohibition of certain forms of compensation, such
as severance payments and financial or monetary
incentives for M&A transactions. We are in
compliance with the requirements of Swiss
company law and the specific provisions therein
regarding the compensation in listed companies.
UK’s City Code on Takeovers and Mergers
The UK’s City Code on Takeovers and Mergers
(the ‘City Code’) does not apply to Coca-Cola HBC
as it does not have its registered office in the
United Kingdom, the Channel Islands or the
Isle of Man. The Articles include specific provisions
designed to prevent any person acquiring shares
carrying 30% or more of the voting rights (taken
together with any interest in shares held or
acquired by the acquirer or persons acting in
concert with the acquirer), except if (subject to
certain exceptions) such acquisition would not
have been prohibited by the City Code or if such
acquisition is made through an offer conducted in
accordance with the City Code. For further details,
read our Articles on our website.
Amending the Articles of Association
The Articles may only be amended by a resolution
of the shareholders passed by a majority of at least
two-thirds of the voting rights represented and an
absolute majority of the nominal value of the shares
represented. The Articles were amended at the
AGM on 21 May 2024 to incorporate changes
required by Swiss corporate law, including
enhanced protection of minority shareholders.
Share capital structure
Coca-Cola HBC has ordinary shares in issue with
a nominal value of CHF 6.70 each. Rights attaching
to each share are identical and each share carries
one vote. Coca-Cola HBC’s Articles also allow,
subject to shareholder approval, for the conversion
of registered shares into bearer shares and bearer
shares into registered shares. Details of the
movement in ordinary share capital during the
year can be found on page 311. There are no
persons holding shares that carry special rights
regarding the control of Coca-Cola HBC.
Powers of Directors to issue and buy
back shares
Subject to the provisions of the relevant laws and
the Articles, the Board acting collectively has the
ultimate responsibility for running Coca-Cola HBC
and the supervision and control of its executive
management. The Directors may take decisions
on all matters that are not expressly reserved to
the shareholders by the Articles. Pursuant to the
provisions of the Articles, the Directors require
shareholder authority to issue shares. Also,
in accordance with the FCA’s UK Listing Rules,
the Directors require shareholder authority to
repurchase shares. At the AGM on 21 May 2024,
the shareholders authorised the Directors to
repurchase ordinary shares of CHF 6.70 each in
the capital of Coca-Cola HBC up to a maximum
aggregate number of 15,000,000 representing
less than 10% of Coca-Cola HBC issued share
capital as of 10 April 2024.
The authority will expire at the conclusion
of the AGM on 23 May 2025 or at midnight on
30 June 2025, whichever is earlier. Coca-Cola HBC
commenced a share buyback programme on
21 November 2023 and it is expected to run until
the end of December 2025. As at 31 December
2024, Coca-Cola HBC reported that 7,567,772
ordinary shares had been purchased at an average
price of 2,538.6033 pence per ordinary share and
are held in treasury. Shares held in treasury as at
10 March 2025 total 10,850,676, out of which
7,420,541 are held by CCHBC AG (including the
purchased shares) and 3,430,135 shares are held
by its subsidiary, CCHBC Services MEPE.
Board composition
On 31 December 2024, our Board comprised
13 directors: the Chair, one Senior Independent
Director, 10 NEDs and one Executive Director.
The NEDs are experienced individuals from a
range of backgrounds, countries and industries,
as shown by their biographies on pages 195 to
197. Zulikat Wuraola Abiola and Glykeria Tsernou
were appointed to the Board at the 2024 AGM and
at the conclusion of the AGM, Olusola (Sola)
David-Bohra and Alexandra Papalexopoulou
retired from the Board. Both Zulikat Wuraola
Abiola and Glykeria Tsernou were also elected
as members of the Audit and Risk Committee.
Elizabeth Bastoni was appointed to the Board
at an Extraordinary General Meeting held on
16 September 2024 and at the conclusion of
that meeting Anna Diamantopoulou retired
from the Board. Elizabeth Bastoni was also elected
as member of the Nomination Committee and
the Remuneration Committee. Read pages 211
to 214 of the Nomination Committee report.
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External appointments
Coca-Cola HBC’s Articles (article 36) set limits on
the maximum number of external appointments
that members of our Board and executive
management may hold. In addition, if a
Board member wishes to take up an external
appointment, he or she must obtain prior Board
approval. The Board will assess all requests on
a case-by-case basis, including whether the
appointment could negatively impact Coca-Cola
HBC or the performance of the Director’s duties
to the Group, taking into account external
guidance and proxy voting guidelines to ensure
the principles of major investors in respect of
‘overboarding’ are considered. The nature of the
appointment and the expected time commitment
are assessed to ensure that the effectiveness of
the Board would not be compromised. Read about
our Directors’ external appointments in their
biographies on pages 195 to 197.
Our Chair is active in the international community.
With regard to his external appointments, the
Board considers that fewer than four of the
positions held by the Chair are significant. Several
of our other Directors also have other external
roles, but the Board is satisfied that any additionally
disclosed positions are not significant. Having
considered the scope of the external appointments
of all Directors, including the Chair, our Board is
satisfied that they do not compromise the
effectiveness of the Board. Each Director has
sufficient time to devote as necessary for the
performance of their duties and according to the
terms of appointment to the Board. This includes
attending approximately 10 Board meetings per
year, plus AGMs and other meetings (see the table
of attendance of Board and Board Committee
meetings on page 206). Each Director was able to
devote the time required to discharge their duties
and the Board has determined that each Board
member commits sufficient time and energy to the
role, and continues to make a valuable contribution
to the Board and its committees.
Independence
The Board’s independence is of utmost importance,
as NEDs play a crucial role in overseeing management
performance and ensuring individual Executive
Directors are held accountable against established
performance objectives.
Our Board has concluded that Zulikat Wuraola
Abiola, Elizabeth Bastoni, Charlotte J. Boyle,
William W. (Bill) Douglas III, Reto Francioni and
Glykeria Tsernou are deemed independent,
representing half of the Board, excluding the
Chair, in accordance with the criteria set out in
the UK Corporate Governance Code, with such
individuals being independent in both character
and judgement. The other NEDs, including the
Chair were appointed following nomination by the
two major shareholders (see details below) and
they are therefore not considered by the Board to
be independent, as defined by the UK Corporate
Governance Code.
Anastassis G. David was appointed as Chair
on 27 January 2016.The Board believes that
Anastassis David embodies Coca-Cola HBC’s
core values, heritage and culture. These
attributes, together with his strong identification
with Coca-Cola HBC and its shareholders’
interests, and his deep knowledge and experience
of the Coca-Cola System, ensure an effective and
appropriately balanced leadership of the Board
and Coca-Cola HBC. Anastassis David was first
appointed as a member of the Board in 2006
before being appointed Chair in 2016. Prior to his
appointment as Chair, major shareholders were
consulted, and an external search consultancy
engaged to find suitable candidates.
The consensus was that Anastassis David was
the appropriate candidate to become Chair and
that he continues to be effective in his leadership
of the Board. In accordance with the established
policy of appointing all Directors on an annual basis,
the Board continues to keep all positions under
regular review and subject to annual election by
shareholders at the AGM. The Board continues
to believe that the proven leadership of our Chair
and his deep knowledge of the Coca-Cola System
position him as unique to steer the Group at the
current time. Accordingly, Anastassis David has
the continuing support of the Board and major
shareholders to remain as Chair.
Shareholder nominees
As described on page 357, since the main listing
of Coca-Cola HBC on the Official List of the London
Stock Exchange in 2013, Kar-Tess Holding, TCCC
and their respective affiliates have no special rights
in relation to the appointment or re-election of
nominee Directors. Those Directors originally
nominated for appointment by TCCC or Kar-Tess
Holding will be required to stand for re-election on an
annual basis in the same way as the other Directors.
The Nomination Committee is responsible for
identifying and recommending candidates for
subsequent nomination by the Board for election
as Directors by the shareholders on an annual basis.
As our Board currently comprises 13 Directors,
neither Kar-Tess Holding nor TCCC is able to
control (positively or negatively) decisions of the
Board that are subject to simple majority approval.
However, decisions of the Board subject to the
special quorum provisions and supermajority
requirements contained in the Articles, in practice,
require the support of Directors nominated at the
request of at least one of either TCCC or Kar-Tess
Holding to be approved.
In addition, based on their current shareholdings,
neither Kar-Tess Holding nor TCCC is able to
control a decision of the shareholders (positively
or negatively), except to block a resolution to wind
up or dissolve Coca-Cola HBC, or to amend the
supermajority voting requirements. The latter
requires the approval of 80% of the total number
of shareholders being represented and voting.
Depending on the attendance levels at AGMs,
Kar-Tess Holding or TCCC may also be able to
control other matters requiring supermajority
shareholder approval.
Anastassis G. David, Anastasios I. Leventis,
Christo Leventis, and George Pavlos Leventis
were nominated for appointment by Kar-Tess
Holding. Henrique Braun and Evguenia Stoitchkova
were nominated for appointment by TCCC.
Conflicts of interest
In accordance with Coca-Cola HBC’s Organisational
Regulations, Directors are required to arrange their
personal and business affairs to avoid a conflict of
interest with the Group. Each Director must disclose
to the Chair the nature and extent of any conflict of
interest arising generally or in relation to any matter
to be discussed at a Board meeting as soon as the
Director becomes aware of its existence. In the
event that the Chair becomes aware of a Director’s
conflict of interest, the Chair is required to contact
that Director promptly and discuss the nature and
extent of such a conflict of interest. Subject to
exceptional circumstances in which Coca-Cola
HBC’s best interests dictate otherwise, the Director
affected by a conflict of interest will not be permitted
to participate in discussions and decision-making
involving the interest at stake.
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Anastassis G.
David
Non-Executive Chair
Appointed: January 2016. Anastassis joined
the Board of Coca-Cola HBC as a NED in
2006 and was appointed Vice Chair in 2014.
Relevant skills and contribution:
Anastassis brings more than 20 years’
experience, globally, as an investor and non-
executive director in the beverage industry
with proven leadership qualities as well as a
deep understanding and knowledge of the
Coca-Cola System.
Experience: Anastassis is also a former
chair of Navios Corporation. He holds a BA
in History from Tufts University.
External appointments: Anastassis is
active in the international community. He
serves as vice chair of Aegean Airlines S.A.,
vice chair of the executive committee of
Cyprus Union of Shipowners, chair of the
board of Sea Trade Holdings Inc., chair of
the board of Nephele Navigation Inc., and
member of Adcom Advisory Ltd. He is also
a board member of Kar-Tess Holding. Also,
he is a member of the board of trustees
of College Year in Athens, and director of
George and Kaity David Foundation.
Nationality: British-Cypriot
Anastassis David has a shared directorship with
Anastasios Leventis, both being directors in Nephele
Navigation Inc. and Kar-Tess Holding and has a shared
directorship with Anastasios I. Leventis, Christo
Leventis and George Pavlos Leventis, all being
directors of Adcom Advisory Ltd.
Zoran
Bogdanovic
Chief Executive Officer,
Executive Director
Appointed: June 2018.
Relevant skills and contribution: Zoran has
wide-ranging experience of working across
Coca-Cola HBC’s operations and markets
and a track record of delivering results
across our territories and demonstrating our
Company’s values which are the foundation
of our Company’s culture.
Experience: Zoran was previously the
Coca-Cola HBC’s Regional Director
responsible for operations in 12 countries
and has been a member of the ELT since
2013. He joined Coca-Cola HBC in 1996
and has held a number of senior leadership
positions, including as General Manager of
the Coca-Cola HBC’s operations in Croatia,
Switzerland and Greece. Before joining
the Coca-Cola HBC, Zoran was an auditor
with auditing and consulting firm Arthur
Andersen. He holds a bachelor’s degree in
economics from the Faculty of Economics
in Zagreb.
External appointments: None
Nationality: Croatian
Zulikat Wuraola
Abiola
Independent
non-Executive Director
A
Appointed: May 2024.
Relevant skills and contribution: Wuraola
brings over 25 years of experience, acquired
in her current and previous roles, of
strategy, business development, leadership,
governance, organisational development,
risk management and public sector policy in
Nigeria and throughout Africa.
Experience: Wuraola is the Managing
Director of Management Transformation
Ltd, a management consulting firm. Prior to
her current role, she worked at McKinsey &
Co, in New York and London, primarily in the
areas of strategy and organisation. Wuraola
lectures on Organisational Development
at the University of Lagos, as well as on
Strategy and Corporate Policy at the
University of Lagos Business School (ULBS).
She holds a bachelor’s degree in accounting
from the University of San Francisco and
a Ph.D. in Organisational Behaviour from
Imperial College in London.
External appointments: Wuraola is Managing
Director of Management Transformation
Ltd. She is also a non-executive senior
independent director and vice chair of
Frigoglass S.A.I.C. and chair of the board of
Appzone Mauritius Ltd. She is also a director
on the boards of Lekoil Nigeria Limited and
Summit Oil International Ltd (Nigeria). Until
April 2024, she was also a member of the
board of Beta Glass Nigeria PLC.
Nationality: Nigerian
Elizabeth Bastoni
Independent
non-Executive Director
N
R
Appointed: September 2024.
Relevant skills and contribution: Elizabeth
brings experience of advising boards of
global companies on governance, executive
compensation, strategy development and
execution, and people development and
succession planning.
Experience: Elizabeth has developed her
expertise having held both executive and
non-executive director roles. She held
C-suite roles in HR and communications at
Cascade Asset Management Co (formerly
BMGI), Carlson, The Coca-Cola Company
(2005 to 2011) and Thales. Elizabeth
began her career with KPMG in Europe in
the International Tax practice. Elizabeth
obtained a BA in accounting from Providence
College in the, USA.
External appointments: Elizabeth is
currently an independt director and chair
of the board of Qorium B.V., an independent
director and audit committee member
with Jerónimo Martins, Audit Committee
independent director and chair of the
nomination and compensation committee
with Euroapi, and an independent director
with CNH Industrial, where she chairs the
human capital & compensation committee.
Nationality: American
Board committees
A
Committee Chair
N
Nomination Committee
R
Remuneration Committee
A
Audit and Risk Committee
S
Social Responsibility Committee
Skills and experience key
Corporate governance
FMCG knowledge/experience
Risk oversight & management
Finance, investments & accounting
International exposure
Sustainability & community
engagement
The Board considers
that each of the Directors
continues to contribute
effectively to the work and
deliberations of the Board.
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Charlotte
J. Boyle
Independent
non-Executive Director
R
N
S
Appointed: June 2017.
Relevant skills and contribution: Charlotte
brings extensive advisory experience, especially
of advising boards on succession planning,
remuneration and ESG governance across
a range of sectors.
Experience: After 14 years with The Zygos
Partnership, an international executive search
and board advisory firm, including nine years
as a partner, she retired from her position in
July 2017. Prior to that, Charlotte worked at
Goldman Sachs International and at Egon
Zehnder International, an international
executive search and management
assessment firm. Charlotte obtained an
MBA from the London Business School
and an MA from Oxford University and
was a Bahrain British Foundation Scholar.
External appointments: Charlotte serves
as chair of UK for the UN High Commission
for Refugees (UNHCR), an non-executive
director of Thatchers Cider Company Ltd,
a non-executive director of Knight Frank LLP,
and an advisory board member of Worcester
College, Oxford University.
Nationality: British
Henrique Braun
Non-Executive Director
Appointed: June 2021.
Relevant skills and contribution: Henrique has
vast experience in corporate functions as well as
regional and business unit operations in TCCC
worldwide, including expertise in supply chain, new
business development, marketing, innovation,
general management and bottling operations.
Experience: Henrique joined TCCC in 1996
in Atlanta and progressed with increased
responsibilities in North America, Europe and Latin
America. From 2020 to 2022, Henrique served
as President of the Latin America operating unit,
from 2016 to 2020, he served as the President
of the Brazil business unit and from 2013 to 2016,
he was the President for Greater China and
Korea. His other roles in TCCC in the past include
Vice President of Innovation and Operations
in Brazil and Director for Still Beverages (non-
carbonated beverages) in Europe. He first joined
TCCC as a trainee in Global Engineering in the US.
Henrique holds a bachelor’s degree in agricultural
engineering from the University Federal of Rio
de Janeiro, a master’s in industrial engineering
from Michigan State University and an MBA
from Georgia State University.
External appointments: Effective January
2025, Henrique serves as Executive Vice
President (EVP) and Chief Operating Officer for
TCCC with responsibility for all TCCC’s operating
units worldwide. Since 2022 Henrique served
as EVP, International Development for TCCC,
overseeing the company’s operating units for
Latin America, Japan and South Korea, ASEAN
and South Pacific, Greater China and Mongolia,
Africa, India and Southwest Asia and Eurasia and
Middle East. As Chief Operating Officer the role
includes oversight of North America and Europe.
Nationality: American and Brazilian
William W. (Bill)
Douglas III
Independent non-Executive
Director
A
Appointed: June 2016.
Relevant skills and contribution: Bill brings
a wealth of financial, commercial, risk and
compliance expertise, including IT and cyber
issues and broad experience of working within
the Coca-Cola System until his retirement.
Experience: Bill is a former Vice President
of Coca-Cola Enterprises (July 2004 to
June 2016). From 2000 until 2004, Bill served
as Chief Financial Officer (CFO) of Coca-Cola
HBC. Bill has held various positions within
the Coca-Cola System since 1985. Before
joining TCCC, Bill was associated with Ernst
& Whinney, an international accounting firm.
He received his undergraduate degree from
the J.M. Tull School of Accounting at the
University of Georgia.
External appointments: Bill is the lead director
and chair of the audit committee of SiteOne
Landscape Supply, Inc. He is a non-executive
chair of the board of directors of The North
Highland Esop Holdings Inc. He is also a
non-executive director of Monster Beverage
Corporation and a non-executive director
of Dollar Tree, Inc.
Nationality: American
Reto
Francioni
Senior Independent
non-Executive Director
N
R
Appointed: June 2016.
Relevant skills and contribution: Reto
brings extensive knowledge and experience
of capital markets, governance, financial
sector and risk management having worked
for several stock exchanges. He is the author
of several books on capital markets.
Experience: Reto has been Professor
of Applied Capital Markets Theory at the
University of Basel since 2006. From 2005
until 2015, Reto was CEO of Deutsche Börse
AG and from 2002 until 2005, he served as
chair of the supervisory board and president
of the SWX Group, which owns the Swiss
Stock Exchange and has holdings in other
exchanges. Between 2000 and 2002, Reto
was co-CEO and spokesman for the board
of directors of Consors AG. Between 1993
and 2000, he held various management
positions at Deutsche Börse AG, including
that of deputy CEO. He earned his Doctorate
of Law at the University of Zurich.
External appointments: Reto serves as
chair of the supervisory board of UBS Europe
SE and as the chair of the supervisory board
of Swiss International Airlines. Reto is also
a vice chair at the board of directors of
Medtech Innovation Partners AG, Basel.
Nationality: Swiss
Anastasios I. Leventis
Non-Executive Director
S
Appointed: June 2014.
Relevant skills and contribution: Anastasios
brings experience from across the financial
services sector and extensive knowledge
on environmental, sustainability and social
responsibility issues.
Experience: Anastasios began his career
as a banking analyst at Credit Suisse and then
American Express Bank. He has previously served
on the boards of the Cyprus Development
Bank and Papoutsanis SA. He holds a BA in
Classics from the University of Exeter and an
MBA from New York University’s Leonard Stern
School of Business.
External appointments: Anastasios is a
board member of A.G. Leventis (Nigeria) Ltd,
vice chair of the board of Nephele Navigation
Inc, a board member of Maxenta Invest Corp.,
of Middle East Finance Sarl and of Adcom
Advisory Ltd. He is a board member of Kar-
Tess Holding. Furthermore, Anastasios is a
member of the European Council of the Nature
Conservancy, a board member of WWF Hellas
(Greek branch of WWF), a member of the
board of Overseers of the Gennadius Library in
Athens, a member of the University of Exeter
Global Advancement Board, co-founder of the
Cyclades Preservation Fund. Member of the
board of trustees of A.G. Leventis Foundation,
and Director of Leventis Foundation Nigeria.
Nationality: British
Anastasios Leventis has a shared directorship with
Anastassis David, Christo Leventis and George Pavlos
Leventis, all being directors of Adcom Advisory Ltd. He
also has shared directorship with Anastassis David, both
being directors of Nephele Navigation Inc, and Kar-Tess
Holding and a shared directorship with Christo Leventis,
both being directors in Middle East Finance Sarl.
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Christo
Leventis
Non-Executive Director
Appointed: June 2014.
Relevant skills and contribution: Christo
brings over 30 years of expertise in finance
and investment.
Experience: Christo worked as an investment
analyst with Credit Suisse Asset Management
from 1994 to 1999 and as an equity research
analyst at J.P. Morgan Securities from 2000
to 2002, focusing on European beverage
companies. He founded Alpheus Capital, a
family office private equity investor. Christo
holds a BA in Classics from University College
London and an MBA from the Kellogg School
of Management, Northwestern University.
External appointments: Christo is a
chairman and a board member of Alpheus
Capital Ltd., a board member of Adcom
Advisory Ltd, a board member of Middle
East Finance Sarl and holds the following
positions within the Kar-Tess group of
companies: a board member of Kar-Tess
Holding and a board member of Torval
Investment Corp. He is also a trustee of the
Anastasios G. Leventis Foundation (Cyprus).
Nationality: British
Christo Leventis has a shared directorship with
Anastassis David, Anastasios Leventis and George
Pavlos Leventis, all being directors of Adcom Advisory
Ltd. He also has a shared directorship with Anastasios
Leventis, both being directors in Middle East Finance
Sarl and with George Pavlos Leventis, both being
Directors in Torval Investment Corp.
George Pavlos
Leventis
Non-Executive Director
Appointed: May 2023.
Relevant skills and contribution: George
brings management, investment and
governance experience and knowledge
from roles across a range of sectors as
well as expertise on environmental and
sustainability issues.
Experience: George was a non-executive
director and vice chair of the board of
Frigoglass S.A.I.C. from 2014 until May 2023.
George previously worked as an analyst in
fund management and holds an Investment
Management Certificate from the CFA
Society. He graduated with a bachelor’s degree
in modern history from Oxford University and
holds a postgraduate law degree from City
University in the, UK.
External appointments: George is a board
member of Adcom Advisory Ltd, of Chalet
Alpette Sarl and of 8 Kensington Park Road
Ltd. He is also a board member of Torval
Investment Corp., a company within the Kar-
Tess group of companies. Furthermore, he is
a director of the Terra Cypria Foundation, a
charitable non-governmental organisation,
which promotes environmental awareness
and sustainability.
Nationality: British
George Pavlos Leventis has a shared directorship with
Anastassis David, Christo Leventis and Anastasios
Leventis, all being directors of Adcom Advisory Ltd. He
also has a shared directorship with Christo Leventis,
both being directors in Torval Investment Corp.
Evguenia
Stoitchkova
Non-Executive Director
S
Appointed: May 2023.
Relevant skills and contribution: Evguenia
brings extensive knowledge and experience
of acquisitions, marketing, franchise
operations and brand management
across the beverage industry for TCCC.
Experience: Evguenia is currently the
President of Global Ventures for TCCC. Prior to
her current role, Evguenia served as President
of the company’s Eurasia & Middle East
operating unit. From 2017 to 2020, Evguenia
was President of the Turkey, Caucasus and
Central Asia business unit. From 2013 to
2017, Evguenia served as Franchise General
Manager for Italy and Albania. From 2010 to
2013, she was Franchise Operations Director
for Romania, Bulgaria, Moldova and Albania.
Evguenia joined Coca-Cola Bulgaria in 2004
as Franchise Country Manager. In 2007, she
became Marketing Manager for sparkling soft
drinks in the Adriatic and Balkans business
unit and became Area Marketing Manager in
Romania, Bulgaria, Moldova and Macedonia in
2008 before becoming Brand Director for still
beverages for Southeastern Europe in 2009.
Evguenia started her career at Danone Group
in 1994 and led Danone marketing in Bulgaria
from 2000 to 2004.
External appointments: President of
Global Ventures at TCCC.
Nationality: Bulgarian
Glykeria
Tsernou
Independent
non-Executive Director
A
Appointed: May 2024.
Relevant skills and contribution: Glykeria
brings extensive knowledge of financial
advisory, investments and business
development, and management consulting
experience across a range of sectors.
Experience: Since 2013 Glykeria has been
an executive in the family office for Th.
Vassilakis Group in Greece (ATHEX listed
Aegean Airlines S.A., Autohellas S.A. and
holdings in logistics and hospitality) focusing
on portfolio companies, new investments,
and business development. Previously, she
worked in private equity, financial advisory,
as well as in industry (aluminium). Glykeria
had also worked in management consulting
at Marakon Associates in London and as
financial analyst at Morgan Stanley in New
York. Glykeria studied Business Economics and
International Relations at Brown University
(Magna Cum Laude, ΦΒΚ) and obtained
an MBA from the London Business School.
External appointments: Glykeria is a non-
executive director of Attica Department
Stores S.A., Goldair Handling S.A. and Phaea
S.A., an independent non-executive director
of Resolute Cepal Greece S.A. and Reinvest
Greece S.A and chair of Elecion Energy S.A..
Glykeria also serves on the board of trustees
of Anatolia College.
Nationality: Greek
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Board leadership and Coca-Cola HBC’s purpose
The Board has ultimate responsibility for our
long-term success and for delivering sustainable
shareholder value, as well as contributing to wider
society. It is responsible for setting our purpose,
values and strategy and ensuring alignment with
culture. This includes ensuring that workforce
policies and practices are consistent with Coca-Cola
HBC’s values and long-term sustainable vision.
Key Board activities in 2024
The Board recognises the value of maintaining
close relationships with its stakeholders,
understanding their views and the importance
of these relationships in delivering our strategy.
The Group’s key stakeholders and their differing
perspectives are considered as part of the Board’s
discussions. Read more in our statement on
section 172 of the Companies Act 2006 on page 1.
Discussions at Board meetings are structured
using a carefully tailored agenda that is agreed
in advance by the Chair in conjunction with the
Chief Executive Officer (CEO) and the Company
Secretary. A typical Board meeting will comprise:
• committee reports from the Chairs of our
Board committees;
• business and financial performance
reviews with senior management; and
• deep-dive reviews into areas of
strategic importance.
Actions
Outcomes
Page reference
Link to stakeholders
Link to strategy
Culture and values
Our people
Reviewed the employee engagement and
collaboration surveys and feedback from the
designated NED on workforce issues surfacing
from engagement.
Monitored health and safety KPIs and progress
against key actions.
Improved our employee engagement score
to 88%. Insight on the views of employees
enabled the Board to focus on addressing
areas where improvement required.
Health and safety trends improved with
additional actions executed.
See p.21, 202
See p.21, 203
1 2 3 4 5
Monitored talent development and succession
planning for Board and senior management.
Overseen cultural and Coca-Cola HBC values’
elements in engagement surveys and business
reviews.
Informed of the succession planning
activities for senior management talent
pipeline; smooth onboarding and transition
of three new Board members.
Concluded that culture is aligned
with Coca-Cola HBC’s purpose,
values and strategy.
See p.202, 213
See p.202, 204
1 2 3 4 5
Stakeholder engagement initiatives
Regularly reviewed progress on sustainability and
community initiatives; continued engagement
with TCCC.
Ranked among leaders in 10 major ESG
benchmarks; strong progress in packaging
circularity with four new DRS launches
between December 2023 and January 2025;
the Coca-Cola HBC Foundation approved
donations of €1.55 million for flood relief in
six markets.
See p.201, 202
1 2 3 4 5
Performance on our growth strategy
Business and financial performance
Deep-dived and reviewed regions,
strategic priorities and key functions,
including digital commerce.
Fully apprised of business plan progress
focusing on addressing specific priorities
and local challenges, such as currency
devaluations in Nigeria and Egypt; approved
investments supporting delivery of our
growth strategy.
See p.202
1 2 3 4 5
Prioritised capabilities
Monitored the performance of our prioritised
bespoke capabilities to drive joint value creation
and customer satisfaction.
Approved investments in digital and
technology to further strengthen our
capabilities; approved the insourcing
of technology capabilities.
See p.202
1 2 3 4 5
New acquisitions
Our consumers
Stakeholders
Our investors
The Coca-Cola Company
Our customers
Our people
Our communities
Governments
NGOs
Our suppliers
1
Leverage our unique 24/7 portfolio
2
Win in the marketplace
3
Fuel growth through competitiveness and investment
4
Cultivate the potential of our people
5
Earn our licence to operate
Strategic pillars
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Board leadership and Coca-Cola HBC’s purpose continued
Actions
Outcomes
Page reference
Link to stakeholders
Link to strategy
Overseen Finlandia Vodka business integration
into our business.
Apprised on transition process; expansion
of distribution to a further 19 markets and
incremental growth opportunities.
See p.15
1 2 3 4 5
Risk management, internal controls and governance
Reviewed and debated on the principal
and emerging risks of the Group, mitigation
plans (including on cyber security and AI)
and risk appetite.
Endorsed the nature and the management
of principal risks and were satisfied that
the approach to risk appetite and risk
management framework were fit for purpose.
See p.181
1 2 3 4 5
Reviewed Coca-Cola HBC’s risk management
systems, including financial, operational and
compliance controls and the effectiveness
of our internal controls framework.
Concluded that the risk management and
internal control frameworks were effective.
See p.178 to 180
1 2 3 4 5
Kept apprised on regulatory developments,
including on sustainability reporting and
governance and approved the Group’s
first Sustainability Statement.
Kept apprised on regulatory developments,
including on sustainability reporting and
governance and approved the Group’s first
Sustainability Statementt.
See p.41
1 2 3 4 5
Finance
Reviewed treasury updates on the liquidity,
financing status and commodity exposure
of the Group.
Approved the Group’s funding requirements,
including investments required for Bambi
following the fire incident in June, and
potential sources of funding and endorsed
approach in managing exposure to
market risk.
See p.217
1 2 3 4 5
Reviewed management’s proposed going
concern and long-term viability statements.
Approved the going concern and long-term
viability statements for the financial year
ended 31 December 2023. Reviewed going
concern statement for half year financial
results to 30 June 2024.
See p.190 and 248
1 2 3 4 5
Cost optimisation and investment
Continuously reviewed the Group’s cost
optimisation and investment programmes.
Approved cost optimisation initiatives
and material capital expenditure
projects, including technology / digital-
related, net zero and other sustainability
oriented projects.
See p.18 and 24
1 2 3 4 5
Stakeholders
Our investors
The Coca-Cola Company
Our consumers
Our customers
Our people
Our communities
Governments
NGOs
Our suppliers
Strategic pillars
1
Leverage our unique 24/7 portfolio
2
Win in the marketplace
3
Fuel growth through competitiveness and investment
4
Cultivate the potential of our people
5
Earn our licence to operate
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Engaging with our stakeholders
The Board regularly reviews stakeholder
engagement activities undertaken, by
both it and the Group as whole, and is satisfied
that the activities outlined on pages 200 to 202
and 10 to 11 remain effective for the mutual
benefit of Coca-Cola HBC and its stakeholders.
The focus on our people, customers, consumers,
suppliers, investors, governments, NGOs,
communities and partners will remain high
on the Board’s agenda.
Shareholders
Shareholders can engage with the Board during
the AGM. The Chair, Senior Independent Director
and Chair of the Audit and Risk Committee will be
available at the 2025 AGM to answer questions
from shareholders. Pursuant to Swiss law and
the Articles, shareholders annually elect an
independent proxy and have the possibility
to authorise and give voting instructions to the
independent proxy in writing or electronically for
our general meetings. The Board encourages
shareholders to attend.
The Chair meets and maintains a dialogue
with Coca-Cola HBC’s major shareholders
to understand their views on the Company’s
strategy and performance.
In 2024, the Remuneration Committee Chair
initiated an engagement process with our top 50
shareholders and with proxy advisers to consult
and obtain feedback on our proposal for certain
updates to our remuneration policy. We received
largely positive feedback which we considered
when we finalised changes to the policy. Read
more in the remuneration report on page 222.
More broadly, through our investor relations team,
Coca-Cola HBC and the Board maintain a dialogue
with institutional investors and financial analysts
on our strategy, finances and sustainability
performance. We engaged with the investment
community and our shareholders throughout
the year, and launched our bitesize investor events
series during the year. The Board regularly considers
feedback from our investors and, where necessary,
takes appropriate action to further engage.
Please read more on our bitesize investor
events on p.17.
Our people
The Board recognises that our people are core to
our strategy – our success depends on our ability
to attract, retain and develop the best talent. The
safety of our workforce continued to be a focus
throughout 2024, ensuring appropriate measures
are in place so that people can continue in their
roles and that we are supporting a healthy working
environment, particularly for colleagues and their
families based in or around Ukraine.
The Nomination Committee and the Board closely
monitor and review the results of the employee
engagement surveys. They also review talent
development initiatives designed to support
long-term success. The CEO held engagement
sessions with employees during 2024, including
Q&As. Charlotte J. Boyle, our designated NED for
workforce engagement, attended meetings with
our European Works Council and heard from
elected employee representatives about their
experiences and inputs. Charlotte also frequently
interacted with our Head of Labour Relations to
better understand our activities for a more diverse
and inclusive workplace (see page 135). All insights
gained contribute to the Board’s decisions to
ensure the appropriate support and resources
for our people.
Investor relations highlights
February
• EU management roadshow (Paris, Frankfurt,
Geneva, Zurich)
• UK management roadshow
(London, Edinburgh)
March
• US management roadshow (New York,
Boston, Montreal, Toronto)
May
• US management roadshow
(Chicago, Los Angeles, San Francisco)
• Goldman Sachs European Staples forum
(London)
• AGM (Steinhausen)
June
• dbAccess, Deutsche Bank, Global
Consumer Conference (Paris)
• Evercore ISI Consumer and Retail
Conference (virtual)
September
• Investor relations roadshow (Toronto)
• Barclays Global Consumer Staples
Conference 2024 (Boston)
• Bernstein Pan European Annual Strategic
Decisions Conference (London)
October
• Bitesize investor event
November
• UK management roadshow (London)
• UBS European Conference (London)
• Jefferies Consumer Conference (Miami)
• Bank of America Consumer and Retail
Conference (Paris)
• Investec South African CEO Conference (London)
• Governance roadshow (London & virtual)
December
• Morgan Stanley and Athens Exchange Greek
Investment Conference (London)
• Citi’s Global Consumer Conference (London)
Other stakeholders
The Board carefully considered stakeholder
interests and matters in its decisions, such as
in approving plans to address the impact from
the Bambi plant fire and in approving investments
in technology, digital and capital expenditures,
such as cyber security for our plants, DIA platform
enhancements and automated warehouses.
Stakeholder interests were also assessed in the
rolling out our DRS systems in Ireland and Hungary
in 2024 and customer relationship management
tools enhancement.
We considered the interests of our communities
affected by floods during the year and we granted
donations through the Coca-Cola HBC
Foundation to support relief efforts.
We assessed joint value creation with our
customers and improving our customers’
experience and collaboration when reviewing
market execution plans, customer satisfaction
reports and plans to elevate our bespoke
capabilities, as well as during market visits.
We considered the interests of our consumers in
endorsing innovation programmes with TCCC and
in expanding our ‘zero’ ranges, including launching
Monster Energy Green Zero Sugar in 16 markets,
as well as the integration of Finlandia Vodka, and
expanding distribution to 19 new markets.
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Stakeholder group
How the Board engages with stakeholders
Read more
Our people
To monitor engagement, collaboration, feedback from colleagues and how we embed our culture and align with our strategic
priorities the Company conducted two all-employee surveys in 2024. Survey results are presented to the Nomination Committee and
the Board. Charlotte J. Boyle is the designated NED for workforce engagement. The Board regularly reviewed talent plans for senior
positions. The CEO held employee engagement sessions during the year, including several calls with Q&A sessions. The Board approved
investments empowering our people with digital tools.
See p.10, 20, 200
Our customers
Regular business updates on performance and market execution, market visits, reviews of joint business planning and joint value-
creation initiatives, monitoring customer satisfaction surveys. Development of digital commerce and approving investments in
tools to improve customer experience and collaboration.
See p.10, 16
Our consumers
Regular business updates on performance and market execution, consumer trends and insights, product innovations,
consumer engagement programmes. Leveraging DIA to offer products and personalised experiences tailored to
consumer needs and expectations.
See p.10, 14
Governments
CEO meetings with numerous senior government officials from our markets during the 2024 World Economic Forum. Engagements
throughout the year of local senior management with governmental authorities. Regulatory updates on issues and developments
relevant to Coca-Cola HBC’s business, such as the new 2024 UK Corporate Governance Code and new UK Listing Rules, CSRD and other
sustainability-related regulations, DRS initiatives, taxation matters, and Chambers of Commerce.
See p.11, 24
Our communities
Supporting our communities in many ways, such as community initiatives to educate or employ young people (#YouthEmpowered
programme), water and other infrastructure initiatives, and support for communities in need, including during floods and wildfires
in Europe, the Bambi fire and ongoing conflict in Ukraine. Community meetings and partnerships on common issues.
See p.10, 24
NGOs
Dialogue, policy work, partnerships on common issues, membership in business and industry associations.
See p.11
The Coca-Cola
Company
Regular engagement with the Chair on performance against strategy and governance matters, day-to-day interaction as business
partners, joint projects, including sports and music summer activities, joint business planning, functional groups on strategic issues,
and ‘top-to-top’ senior management meetings.
See p.11
Our investors
AGM, investor roadshows and results briefings, webcasts, bite size investor sessions, engagement of Chair with major shareholders,
engagement of committee Chairs on significant matters pertaining to their areas of responsibility. Insights from internal and external
parties on investor expectations and focus areas. Ongoing dialogue with analysts and investors. In 2024, engagement with top 50
shareholders on a remuneration policy review.
See p.11, 200
Our suppliers
Engagement with our suppliers, consultants and counterparts in related industries.
See p.11
Corporate Governance Report continued
Engaging with our stakeholders continued
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Overseeing strategic delivery
Our growth pillars
What did the Board consider?
What did the Board discuss and decide?
What were the material stakeholder considerations?
• Business and financial performance and market
implementation including on our strategic priority
categories Sparkling, Energy and Coffee
• Assessing business development opportunities
• Roll out of Finlandia Vodka in 19 new markets
and setting up international partnerships
• Roll out of Monster Energy Green Zero Sugar
• Deep dive session with President, Europe
Operating Unit for TCCC, Nikos Koumetis on
strategy, and market insights
• 2024 business plan review and Capex
requirement approvals
• Acquisition of BDS Vending in Ireland
• Consumer needs and trends, including
quality and freshness of products, health
and nutrition, affordability, innovation and
sustainable packaging
• Prioritising opportunities to create long-term
value for our shareholders, customers and
other stakeholders
• DIA, customer satisfaction and consumer
surveys
• Updates on market execution initiatives
and performance
• Digital commerce progress and initiatives,
including customer portals and digital marketing
• Approved digital tools enhancements to improve
customer and consumer experience and service
• Approved coolers and other Capex requirements
to support winning in the marketplace
• Expansion of Sirvis digital platform to
more markets
• Consumer needs and trends
• Adding value to customers
• Marketplace economic conditions
• Shareholder value creation
• Regular updates on financial performance, insights
and trends, FX matters and devaluation challenges
in Nigeria and Egypt
• Capex required and timelines for investments
• Accelerating use of digital tools and AI to
empower our people, cyber security plans,
supply chain and sales capabilities
• Business development and other
investment opportunities
• Considered and approved the half- and full-
year results and dividend payment
• Approved operational and process simplification
projects and organisational structures
• Partnership with Microsoft on in-house
generative AI productivity and other tools
• Approved Capex to fuel business growth
• Approved treasury related projects, such as
bond buy-back, two bond issues and $130 million
EBRD loan for Egypt
• Monitored initiatives driving efficiency
and simplification
• Investments driving sustainable returns and
benefits for all stakeholders
• Digitaliise and innovate our business to ensure
we are fit for the future
• People, talent, succession plans, employee
engagement drivers
• Review of progress and activities in embedding
our culture and living our values and purpose
• Progress against our gender diversity KPIs
• Reviewed and endorsed development and
succession plans for senior positions
• Discussed and approved digital programmes
to empower our people with digital tools
• Insourcing technology capabilities with a new hub
in Egypt
• Monitored employee engagement survey outputs
and relevant actions plans
• Monitored diversity, equity & inclusion (D&I)
programme progress and Women in Leadership
positions improvement
• Our people and how to engage, retain and
develop them
• Develop an inclusive growth culture
around our empowered people and an
agile learning organsation
• Building the best teams with critical capabilities
to create value for our customers, consumers,
our investors and our communities
• Delivery against our ambitious ESG targets
• Corporate governance as a critical enabler for
our license to operate
• Regulatory developments
• Engaging our communities behind water and
waste initiatives; empowering youth together
with our partners
• Regular updates and discussion on sustainability
projects and ESG benchmarks
• Reviewed and endorsed health and safety plans
• Support of our communities in need from natural
disasters through the Coca-Cola HBC Foundation
• Continued focus on corporate governance,
confirming the effectiveness of our internal
controls and risk management processes
• Endorsed our compliance plans, including the
design of a new AI Policy, digitaliising processes
and training waves
• Progress against our sustainability targets,
within Mission 2025, NetZeroby40 roadmap
and biodiversity goals to meet broad
stakeholder expectations
• Support our communities in need and at times of
crisis, prioritising natural disaster relief, packaging
and waste management, corporate citizenship
and empowering youth and women
Leverage
our unique
24/7 portfolio
1
Win in the
marketplace
2
Fuel growth
through
competitiveness
and investment
3
Cultivate the
potential of
our people
4
Earn our
licence
to operate
5
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Overseeing strategic delivery continued
The outcomes of the Board’s decisions
Enhanced volume and revenue growth
The Board’s focus on defining and overseeing
delivery of the strategy to expand our 24/7
portfolio and strengthening market execution
drove market share gains and led to a strong
organic volume and revenue growth in 2024.
In 2024, the Board continued to closely oversee delivery
of our 24/7 portfolio growth strategy regularly reviewing
business plans’ progress, talent development and building
prioritised capabilities, approving investments to support
strategy delivery, such as digital and technology related
investments, keeping appraised on customer engagement
and satisfaction, consumer and market trends and
mitigating risks, such as currency devaluations.
As a result, we continued to deliver on its growth strategy
in 2024 in a range of market conditions, with 13.8% organic
revenue growth, 2.8% volume growth and 12.2% organic
EBIT growth.
Read more p.2 to 3
Strengthened our people
engagement and potential
The Board is fostering a culture of employee
engagement and personal growth. This focus led
to initiatives around our employees’ safety and
wellbeing, critical capabilities’ enhancement,
improving our DEI targets and living our values
with the first ever Company-wide MIT in 2024.
Investing in our people to cultivate their potential, develop
critical capabilities and strengthen their engagement
is fundamental to our sustainable growth. In 2024, we
reinforced continuous learning and upskilling delivering over
640,000 hours of learning and developing critical capabilities
of our people. In the year, we also progressed our digital
transformation journey to enhance our employee experience
and deployed initiatives for our people well-being and safety.
We continued to uphold our DEI commitments and further
increased the number of our female leaders. Our largest ever
Market Impact Team (MIT) activation across the organization,
with over 7,000 colleagues supporting over 50,000 customers
is a testament of living our “We over I” and “Customer First”
values we are proud of. Our emphasis on fostering a culture
of employee engagement and personal growth and staying
connected to and listening our employees, resulted in an
improved engagement score of 88%.
Read more p.20
The Board’s decisions to make sustainability-
oriented investments is boosting our progress
towards our sustainability commitments and
underpinning our approach to do what is right,
while creating value for the business and
strengthening resilience.
Throughout 2024, the Board considered and approved
a variety of sustainability-oriented investments, such as
energy efficient coolers, supporting our revenue growth
management strategy and sustainability goals, expansion
of reusable packaging projects such as new rPET and
returnable glass bottle lines capitalizing on DRS roll outs
and increasing popularity of reusable bottles, launch of
DRS in two more markets, Republic of Ireland and Hungary,
translating to increase collection rates and increase of
recycling rates, increased supply chain efficiency projects,
supporting local community projects and communities
in need through the Coca-Cola HBC Foundation. These
investments underpin our commitment in achieving our
sustainability goal to do what is right.
Read more p.24
FY24 Organic revenue growth
+13.8%
FY24 Organic EBIT growth
+12.2%
+1.7% female leaders
43.5%
sustainable engagement
index score
88%
Ranked
1st
as the world’s
most sustainable
beverage company
by Dow Jones
Best-in-Class
indices 2024
Demonstrating the
value of sustainability-
driven investments
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Culture in action
Culture shapes the way we think,
behave and act. To successfully achieve
Coca-Cola HBC’s purpose, it is essential
to have the right culture in place. The
Board is responsible for monitoring
and assessing our culture. The Chair
ensures that the Board is operating
appropriately and sets the Board’s
values, which in turn sets the standard
for Coca-Cola HBC’s culture.
The CEO, supported by members of the ELT,
is responsible for ensuring the embedding of
the culture throughout the business and its
operations and in all our dealings with our
stakeholders. The Board measures the culture
of the Group using internal and external metrics,
which also enable it to identify further actions
to ensure the culture remains appropriate. The
Board also assesses the alignment of the Group’s
policies, practices and behaviours throughout the
business with Coca-Cola HBC’s purpose, values
and strategy, and, if dissatisfied, seeks assurance
that management is taking corrective action.
The Board also monitors the Group’s performance
against its peer group within the same sector.
What defines our culture is who we are, our
purpose, our vision, our values, how we need
to evolve and the behaviours we commit to
each other. The Board monitors progress through
regular updates from the management team, and
culture and engagement surveys – see page 20.
Doing the right thing
• Continued to prioritise the safety and
wellbeing of our people, including our people
in Ukraine, which continues to be impacted
by the conflict – see page 21.
• Continued supporting our communities in
need, including through the Coca-Cola HBC
Foundation, which approved grants for flood
relief in six of our markets – see pages 24 and 28.
• Further strengthened our compliance
processes and training our employees, and kept
focus on sanctions compliance. We designed
a new AI Policy and trained our people to
ensure we deploy AI technologies in an ethical,
trustworthy and robust way – see page 221.
• Invested to further transform, innovate and
digitalise our business including by investing
in further automating and streamlining our
supply chain, compliance and customer
processes and controls to ensure we are
fit for the future – see page 18.
Investing in our people
• Deployed initiatives strengthening talent
attraction and promoting our preferred
employer profile – see page 20.
• Empowered our people with digital tools
to simplify and make their day-to-day work
easier – see page 20.
• Ran bi-annual culture and engagement surveys,
and one collaboration for impact survey
during the year – see page 21.
• Actively reinforced our people continuous
learning and upskilling, delivering over
659,000 hours of learning in 2024
– see page 22.
• Launched a Digital Hub in Egypt to
complement Sofia and Athens in-sourcing
digital skills and capabilities within the
organisation – see page 54.
• Continued to strengthen workforce diversity
through our DEI programme: 43.5% of
management positions (1.7% increase)
are now held by women – see page 22.
Opening up opportunities for our
consumers, customers and partners
• Continued creating joint value with our
customers, with both premiumisation and
affordable offers and focusing on personalised
execution both physical and e-route to market
(RTM), driving market share gain – see page 16.
• Continued measuring and continuously
improving customer experience using the
NPS® metric applied through CustomerGauge
‘voice of customer’ software, which enables
instant feedback from customers – see page
16.
• Continued to invest in our bespoke capabilities
which make the difference, with DIA remaining
in focus and closely interconnected with
our revenue growth management (RGM)
and RTM capabilities – see page 17.
• Integrated Finlandia Vodka into our business
– see page 15.
Sustainability
• Accelerated progress towards our long-
term goal of achieving NetZeroby40,
GHG emissions.
• Achieved our #YouthEmpowered target
a year ahead of schedule – see page 28.
• Continued to prioritise a circular approach to
packaging resulted in increasing % of recycled
content and % of returnable packaging –
see pages 24 and 27.
• Launched DRS in Hungary and Ireland, while
we continued to work on alternative types
of collection models in Nigeria and Egypt
– see pages 24 and 27.
• Accelerated progress towards NetZeroby40
through progress towards packaging
circularity, decarbonising our operations,
further shift to energy-efficient coolers
and green fleet and others.
Key highlights
43.5%
of management positions held
by women
+6%
in our customer NPS® from 59 to 65
659,000
hours of learning for our people
€1.55m
grants approved by the Coca-Cola HBC
Foundation for flood-relief initiatives
58%
overall packaging collection rate*
* excluding Egypt
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Division of responsibilities and meeting attendance
Chair
• Leads the Board, sets the agenda
and promotes a culture of
openness and debate.
• Ensures the highest standards of
corporate governance.
• Is the main point of contact
between the Board and
management.
• Ensures effective communication
with stakeholders, together with
the CEO.
Chief Executive Officer
(CEO)
• Leads the business, implements
strategy and chairs the ELT.
• Is responsible for overall
effectiveness in leading Coca-
Cola HBC and setting the culture.
• Communicates with the Board,
shareholders, employees,
government authorities, other
stakeholders and the public.
Senior Independent Director
(SID)
• Acts as a sounding board for
the Chair and appraises his
performance.
• Leads the independent NEDs
on matters that benefit from an
independent review.
• Is available to shareholders if they
have concerns that have not been
resolved through the normal
channels of communication.
Non-Executive Directors
• Contribute to developing Group
strategy.
• Scrutinise and constructively
challenge the performance of
management in the execution of
the Group’s strategy.
• Oversee succession planning,
including the appointment of
Executive Directors.
Company Secretary
• Ensures that correct Board
procedures are followed and
that the Board has full and timely
access to all relevant information.
• Facilitates induction and training
programmes and assists
with the Board’s professional
development requirements.
• Advises the Board on
governance matters.
Board of Directors
Board committees
Nomination Committee
• Identifies and nominates new Board
members, including recommending
Directors to be members of each
Board committee.
• Ensures adequate Board training;
supports the Board and each Committee
in conducting a self-assessment.
• Oversees the talent
development framework.
• Oversees effective succession planning
for the CEO, in consultation with the
Chair, and for members of the ELT,
in consultation with the CEO.
Social Responsibility Committee
• Supports the Board in its responsibilities
to safeguard the Group’s reputation for
responsible and sustainable operations.
• Oversees engagement with stakeholders
to assess their expectations and
the possible consequences of these
expectations for the Group.
• Establishes principles governing ESG and
oversees development of performance
management to achieve ESG goals.
Audit and Risk Committee
• Oversees accounting policies, financial
reporting and disclosure controls;
approach to internal controls and risk
management; information / cyber security
and AI matters; and the quality, adequacy
and scope of internal and external
audit functions.
• Oversees compliance with legal, regulatory
and financial reporting requirements and
the internal audit function.
• Receives external auditor reports.
• Responsible for ESG reporting.
Remuneration Committee
• Establishes the remuneration strategy;
determines and agrees with the Board
the remuneration of Group Executives
and approves remuneration for the
Chair and the CEO.
• Makes recommendations to the Board
regarding remuneration matters to be
approved at the AGM.
• Recommends to the Board the
implementation or modification
of employee coverage for any benefit
plan resulting in an increased annual
cost of €5 million or more.
Biographies of the Chairs of the Board committees and the other members of the Board, the Audit and Risk Committee, the Nomination
Committee, the Remuneration Committee and the Social Responsibility Committee are on pages 195 to 197.
The Board receives and reviews reports from each committee Chair on its activities and discussions following each committee meeting.
The Board reviews and approves strategy, monitors performance towards strategic objectives, oversees implementation
by the ELT and approves matters reserved by the Articles for decision by the Board. The governance process of the Board
is set out in our Articles and the Organisational Regulations and can be found at https://www.coca-colahellenic.com/en/
about-us/corporate-governance.
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Division of responsibilities and meeting attendance continued
Separation of roles
There is a clear separation of the roles of the
Chair and the CEO. The Chair is responsible for
the operation of the Board and for ensuring that
all Directors are properly informed and consulted
on all relevant matters. The Chair, in the context
of the Board meetings and as a matter of practice,
also meets separately with the NEDs without the
presence of the CEO. The Chair promotes a culture
of openness and debate within the Board sessions
as well as outside the formal sessions. The Chair is
also actively involved in the work of the Nomination
Committee concerning succession planning and
the selection of key people. The CEO, Zoran
Bogdanovic, is responsible for the day-to-day
management and performance of the Company
and for the implementation of the strategy
approved by the Board and for leading the ELT.
Board
Director
Month and
year appointed
Board meeting
attended/total
Nomination
Committee
Social
Responsibility
Committee
Audit and
Risk Committee
Remuneration
Committee
Anastassis G. David
January 2016
6/6
Zoran Bogdanovic
June 2018
6/6
Zulikat Wuraola Abiola 1
May 2024
4/4
5/5
Elizabeth Bastoni 2
September 2024
2/2
2/2
2/2
Charlotte J. Boyle
June 2017
6/6
5/5
2/2
4/4
Henrique Braun 3
June 2021
5/6
Anna Diamantopoulou4
June 2020
3/4
3/3
2/2
2/2
Olusola (Sola) David-Borha5
June 2015
2/2
3/3
William W. (Bill) Douglas III
June 2016
6/6
8/8
Reto Francioni6
June 2016
6/6
4/5
3/4
Anastasios I. Leventis
June 2014
6/6
4/4
Christo Leventis
June 2014
6/6
George Pavlos Leventis
May 2023
6/6
Alexandra Papalexopoulou7
June 2015
2/2
3/3
Evguenia (Jeny) Stoitchkova
May 2023
6/6
4/4
Glykeria Tsernou8
May 2024
4/4
5/5
1. Zulikat Wuraola Abiola was appointed to the Board at the AGM on 21 May 2024.
2. Elizabeth Bastoni was appointed to the Board at an Extraordinary General Meeting on 16 September 2024.
3. Henique Braun was unable to attend one Board meeting due to a pre-agreed prior commitment.
4. Anna Diamantopoulou retired from the Board, the Nomination Committee, the Remuneration Committee and the Social Responsibility Committee at the end of an Extraordinary General Meeting held on
16 September 2024.
5. Olusola (Sola) Borha-David retired from the Board and the Audit and Risk Committee at the end of the AGM on 21 May 2024.
6. Reto Francioni was unable to attend one Nomination Committee meeting and one Remuneration Committee meeting due to a pre-agreed commitment.
7. Alexandra Papalexopoulou retired from the Board and the Audit and Risk Committee at the end of the AGM on 21 May 2024.
8. Glykeria Tsernou was appointed to the Board at the AGM on 21 May 2024.
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The Executive Leadership Team
Zoran Bogdanovic
(52) Chief Executive Officer,
Executive Director
Senior management tenure:
Appointed June 2013, appointed CEO
December 2017
Previous Group roles: Zoran was previously
Coca-Cola HBC’s Region Director responsible
for operations in 12 countries. He joined
Coca-Cola HBC in 1996 and has held a
number of senior leadership positions,
including as General Manager of Coca-Cola
HBC’s operations in Croatia, Switzerland
and Greece
Previous relevant experience:
Prior to joining Coca-Cola HBC in 1996,
Zoran was an auditor with auditing and
consulting firm Arthur Andersen.
External appointments: None
Nationality: Croatian
Naya Kalogeraki
(54) Chief Operating Officer
Senior management tenure:
Appointed July 2016, appointed COO
September 2020
Previous Group roles: Naya held the role of
Chief Customer and Commercial Officer from
2016 to 2020. Since joining Coca-Cola HBC
in 1998, has progressed her career assuming
various roles with increasing responsibility,
including Marketing Director, Trade Marketing
Director, Sales Director, Country Commercial
Director and General Manager. She has been
actively involved in strategic projects and
task forces within Coca-Cola HBC Group,
addressing critical business imperatives.
Previous relevant experience:
Naya joined Coca-Cola HBC in 1998 after
holding various marketing roles with The
Coca-Cola Company, the most senior one
being that of Marketing Manager.
External appointments:
Naya serves as a board member of Casa del
Caffè Vergnano S.p.A., where the Group
holds a 30% equity stake.
Nationality: Greek
Anastasis Stamoulis
(50) Chief Financial Officer
Senior management tenure:
Appointed May 2024
Previous Group roles: Anastasis joined
Coca-Cola HBC in 2008 as Commercial
Controller for our Operation in Greece.
Since 2011 he has held various senior
financial roles, including CFO in Baltics
(2011-2014), CFO Bulgaria (2014-2015) and
CFO Italy (2015-2018). In 2018, he assumed
the role of Group Financial Controller, from
2021 and until 2023, he held the role of
Head of Finance Operations and from 2023
until April 2024 he led the Group Strategic
Finance and Financial Planning & Analysis.
Previous relevant experience:
Before joining Coca-Cola HBC, Anastasis
worked in senior financial positions with
Ford Motor Company Greece and UK and
Volvo Cars in Greece as finance manager.
External appointments:
None
Nationality: Greek
Ben Almanzar stepped down as CFO at the end of
April 2024 when Anastasis Stamoulis was appointed
CFO with effect from 1 May 2024.
Jan Gustavsson
(59) General Counsel
Secretary and Chief Corporate
Development Officer
Senior management tenure:
Appointed August 2001
Previous Group roles: Jan served as Deputy
General Counsel for Coca-Cola Beverages
plc from 1999 to 2001.
Previous relevant experience:
Jan started his career in 1993 with the law
firm White & Case in Stockholm, Sweden.
In 1995, he joined TCCC as Assistant Division
Counsel in the Nordic and Northern Eurasia
Division. From 1997 to 1999, Jan was Senior
Associate in White & Case’s New York office,
practising securities law and M&A.
External appointments:
Jan is a board member of Casa del Caffè
Vergnano S.p.A., in which the Group holds
a 30% equity stake.
Nationality: Swedish
Ebru Ozgen
(55) Chief People
and Culture Officer
Senior management tenure:
Appointed September 2023
Previous Group roles: None
Previous relevant experience:
Before joining Coca-Cola HBC, Ebru worked
with Coca-Cola Icecek (CCI) from 1997,
where she progressed through leadership
roles in finance until she was appointed
as the CFO of the Turkey operation. In
2017, she assumed the Chief Human
Resources Officer role of CCI and became
an Executive Committee member, where
she led the People and Culture agenda and
transformation in business strategy for the
Turkey, Middle East, Pakistan and Central
Asia operations, bringing a multi-disciplinary
approach and a holistic business partnering
mindset to the People and Culture function.
Ebru started her career in 1992 in Arthur
Andersen & Co, as an auditor before moving
to the FMCG sector.
External appointments:
None
Nationality: Turkish
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Ivo Bjelis
(57) Chief Supply Chain Officer
Senior management tenure: Appointed
January 2022
Previous Group roles: Ivo joined the Group
in 1996 as Plant Manager in Croatia. In 2002,
he took over the position of Country Supply
Chain Manager. Since 2006 Ivo built his
career assuming roles of increased scale and
scope, including Strategic Initiative Leader for
Customer Centric Supply Chain, Group Supply
Chain Processes and Capabilities Director,
Regional Supply Chain Director, Group
Supply Chain Services Director and Group
Supply Chain Operations Director, leading
the development and the transformation
of the Supply Chain strategy over the years.
External appointments: None
Nationality: Croatian
Marcel Martin
(66) Chief Corporate Affairs
and Sustainability Officer
Senior management tenure: Appointed
Chief Supply Chain Officer January 2015,
appointed Chief Corporate Affairs &
Sustainability Officer January 2022
Previous Group roles: Marcel joined
the Group in 1993, holding positions with
increasing responsibility in the supply chain
and commercial functions. Since 1995, he
has held general management assignments
in several of our markets, including as General
Manager for Eastern Romania, Regional
Manager Russia, Country General Manager
Ukraine and General Manager Nigeria.
He became General Manager of our Irish
operations in 2010, Supply Chain Director
in 2015 and is now our Chief Corporate
Affairs and Sustainability Officer.
External appointments:
None
Nationality: Romanian
Mourad Ajarti
(48) Chief Digital and
Technology Officer
Senior management tenure: Appointed
October 2019
Previous Group roles: None.
Previous relevant experience:
Mourad has 20 years’ experience with
two fast-moving consumer goods industry
leaders, Procter & Gamble and L’Oréal. Mourad
started with Procter & Gamble leading SAP
implementation in Morocco, Saudi Arabia and
Europe, and later was CIO for different lines
of business. From 2014 to 2019, Mourad
was CIO for the Asia and Pacific region for
L’Oréal, leading consumer and customer
journey transformation and enabling the
use of big data and advanced analytics.
External appointments:
None
Nationality: British and Moroccan
Spyros Mello
(50) Strategy and
Transformation Director
Senior management tenure: Appointed
November 2021
Previous Group roles: Spyros served
as Deputy General Counsel and Chief
Compliance Officer from 2010 to 2021.
He was Deputy General Counsel from
2007 to 2009 and Senior Corporate
Counsel from 2005 to 2007.
Previous relevant experience:
Spyros was an associate with the law
firm of Sullivan & Cromwell LLP practising
securities law and M&A first in New York from
1999 to 2001 and then in London from 2001
to 2004.
External appointments:
None
Nationality: Greek
Minas Agelidis
(55) Region Director: Austria,
Czech Republic, Estonia,
Hungary, island of Ireland,
Latvia, Lithuania, Poland,
Slovakia, Switzerland
Senior management tenure: Appointed
April 2019
Previous Group roles: Minas joined the
Group in 1999, holding positions with
increasing responsibility in the commercial
function in Greece (National Account
Manager, Athens Region Sales Manager,
National Wholesale Managerand Country
Sales Director). Since 2008, Minas has held
general management assignments in several
of our markets, including those of Country
General Manager Cyprus, Country General
Manager Bulgaria and Country General
Manager Hungary.
Previous relevant experience:
Prior to joining the Group, Minas spent
seven years at Unilever Greece in managerial
positions in sales and marketing.
External appointments:
None
Nationality: Greek
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The Executive Leadership Team continued
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Frank O’Donnell
(57) Region Director:
Armenia, Bosnia &
Herzegovina, Bulgaria,
Croatia, Cyprus, Greece,
Moldova, Montenegro,
North Macedonia,
Romania, Serbia,
Slovenia, Ukraine
Senior management tenure:
Appointed June 2023
Previous Group roles: Frank joined
the Group in 1992 holding positions
with increasing responsibility in
the commercial function in Ireland,
becoming Sales Director in 2003.
From 2010, Frank was Commercial
Director of our Czech/Slovak
business unit. Since 2014, Frank
has held general management
assignments in several of our
markets, including those of Country
General Manager Ireland, Country
General Manager Austria and
Country General Manager Italy.
External appointments: None
Nationality: Irish
Aleksandar Ruzevic9
(54) Region Director:
Nigeria, Egypt, Belarus,
and Russia
Senior management tenure:
Appointed June 2023
Previous Group roles: Aleksandar
joined the Group in 1998 as a
sales representative. He was then
appointed Commercial Director
for Serbia and Montenegro. In 2010
Aleksandar joined the Ukrainian team
in the role of Commercial Director,
which he successfully led for four
years. In 2014, Aleksandar took the
position of General Manager in North
Macedonia. In 2016 he became
Country General Manager in Serbia
and Montenegro and from 2018
he led the Russia business unit.
External appointments:
None
Nationality: Serbian
Vladimir Kosijer10
(46) Acting Region
Director: Nigeria,
Egypt, Belarus, Russia
Senior management tenure:
Appointed February 2024
Previous Group roles: Vladimir
joined the Group in 2002 as a sales
representative. He joined the
Ukrainian team in 2013 in the role
of Capability Development Director,
then held the Sales Director role
for four years while expanding
responsibility over Moldova. In 2018
Vladimir took the position of General
Manager in North Macedonia. In 2019
he was appointed business unit Sales
Director of Russia and in 2023 he led
Multon Partners as General Manager.
External appointments:
None
Nationality: Serbian
Barbara Tönz
(54) Chief Customer and
Commercial Officer
Senior management tenure:
Appointed May 2021
Previous Group roles: Barbara
joined the Group in 1998, building
her career first in Switzerland as
Trade Marketing Director, Sales
Director and Commercial Director,
and then in Austria from 2012 as
Commercial Director and Interim
General Manager.
Previous relevant experience:
In 2016 Barbara enriched her
experience within the Cola-Cola
System as Country Director Sweden
for TCCC, with responsibility
expanded to Norway and Iceland in
2019 before she assumed the role
of Commercial Execution Director
Europe. Prior to joining the Group in
1998, she held positions in brand and
customer development at Unilever.
External appointments:
None
Nationality: Swiss
Vitaliy Novikov
(45) Digital Commerce
Business Development
Director
Senior management tenure:
Appointed September 2020
Previous Group roles: Vitaliy
joined the Group in 2011 as General
Manager of the Baltics business unit
and then held General Manager roles
in Poland and Italy.
Previous relevant experience:
Prior to joining the Group, Vitaliy
spent four years at Johnson &
Johnson as Managing Director of
the Ukrainian operation and prior to
this he spent seven years at Henkel
in managerial positions of growing
responsibility in Austria and Ukraine.
External appointments:
None
Nationality: Ukrainian
Jaak Mikkel
(50) New Businesses
Director
Senior management tenure:
Appointed February 2023
Previous Group roles: Jaak
joined the Group in 2008 as Sales
Director for Baltics and then held
roles of General Management for
Pivara Skopje in North Macedonia
and Romania. His latest role was
as General Manager for Poland
& Baltics.
Previous relevant experience:
Prior to joining the Group, Jaak
spent 10 years at Shell, managing
Convenience Retail businesses in
the Baltics, Central Eastern Europe
and in the Nordics.
External appointments:
None
Nationality: Estonian
Corporate Governance Report continued
The Executive Leadership Team continued
9. Currently on medical leave
10. During the absence of Aleksandar Ruzevic, Vladimir Kosijer has been appointed Acting Region Director.
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Responsibilities of the ELT
Executive Leadership gender diversity
(number and %)
80%
3
20%
12*
Men
Women
During the absence of Aleksandar Ruzevic, Region Director, Vladimir Kosijer
has been appointed Acting Region Director.
*
0–1
1–2
2–3
3– 4
4–5
5–6
10–11
11–12
2
2
1
1
1
1
1
3
3
8–9
23–24
1
Executive Leadership Team tenure
(years)
Key activities and
decisions in 2024
The ELT met 10 times in 2024 to discuss:
Long-term direction setting
• Reviewing strategic projects and initiatives
complementing our Growth Story framework.
• Overseeing the strategic evolution of Supply
Chain, People and Culture, Commercial,
Finance, Digital & Technology Platform
Services, Strategy & Transformation, and
Corporate Affairs & Sustainability functions.
• Sponsoring the further redesign of Company
culture and corporate identity.
• Assessing, approving and reviewing key
initiatives related to simplification and
collaboration processes and projects.
• Evaluating and evolving our 24/7 portfolio
strategy together with our brand partners.
• Review of company-wide talent strategy
and processes.
• Review of rewards strategy, policy
and processes.
• Assessing our sustainability priorities and
progress of initiatives on the way to deliver
2025 commitments.
• Setting long-term capability building priorities
and programmes.
• Approving and reviewing deployment of major
automation and digitalisation initiatives.
Business planning
• Aligning key priorities and investment strategy
with TCCC.
• Aligning key priorities with strategic partners.
• Reviewing and approving annual business
plans for 2025 for all operations and
central functions.
• Reviewing and approving capital
expenditure proposals.
• Reviewing and approving progress of selected
key project and initiatives.
• Approving Group and country talent, capabilities
development and succession plans.
Risk, safety and business resilience
• Evaluating the Group’s business
resilience strategies.
• Evaluating and strengthening the Group’s
Incident Management and Crisis Resolution
incidents and capabilities.
• Reviewing the Group’s health & safety
performance, policies, projects and
material incidents.
• Reviewing the corporate audit plan.
Priority initiatives and projects
• Processes’ and projects’ simplification
and optimisation strategic projects.
• Employee engagement, collaboration
and customer satisfaction initiatives,
based on consolidated insights.
• Implementing Talent 2.0 strategic project
and prioritised initiatives for attracting,
developing and retaining talent.
• Workforce reward review project.
• Diversity, Equality and Inclusion initiatives.
• Setting targets and measuring and
driving progress on our Sustainability
strategic projects.
• Priority strategic digital commerce
projects and monitoring performance.
• Data, insights & analytics (DIA)
prioritised initiatives.
• Cyber security and AI projects.
• Logistics Best-in-Class Project.
Responsibilities of the ELT
• Executive management of the Group and its
businesses, including all matters not reserved
for the Board or other bodies.
• Development of Group strategies and
implementation of the strategies approved
by the Board.
• Providing adequate head-office support for
each of the Group’s countries and functions.
• Working closely with the country General
Managers, as set out in the Group’s operating
framework, to capture benefits of scale,
ensuring appropriate governance and
compliance, and managing the performance
of the Group.
• Leading the Group’s talent and capability
development programmes.
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Dear Stakeholder
The work of the Nomination Committee focuses
on the proper composition and effective operation
of the Board, Board and senior management
succession planning, the oversight of the talent
management framework, as well as employee
engagement and diversity initiatives.
In 2024, the Nomination Committee continued to
review the balance of skills, experience and diversity
of the Board, and the overall length of service of the
Board, both as a whole and as part of its succession
planning and considered the need to refresh Board
membership. Our Group’s Nomination Policy for the
Recruitment of Board members is our compass for
the recruitment of new Board members. This year,
following the retirement of three Board members,
two new members were appointed to the Board at
the 2024 AGM and one at the Extraordinary General
Meeting in September 2024. As every year, this
year the Nomination Committee continued to
coordinate the evaluation of the Board and the
Board committees’ effectiveness through
an externally facilitated assessment.
On the employee side in 2024, the Nomination
Committee had regular updates on engagement
results, external benchmarking results on our
Employer Brand, the evolution of our bespoke
International Leadership Trainee programme.
and progress on our DEI initiatives. The Nomination
Committee received input on the Company’s new
program Talent 2.0 and how we will evolve from good
to great when it comes to attracting, developing, and
retaining great people through 11 key initiatives.
Reto Francioni
Committee Chair
Overview
All members of the Nomination Committee are independent NEDs. At the AGM in May 2024,
Reto Francioni, Charlotte J. Boyle and Anna Diamantopoulou were re-elected for a one-year
term by the shareholders. In September 2024, Anna Diamantopoulou retired from the Board
and the Nomination Committee and Elizabeth Bastoni was appointed following her election
to the Board by shareholders. The Chair of the Nomination Committee attended our AGM
in May 2024 and regularly interacts with representatives of our shareholders.
Members
Reto Francioni
(Chair)
Member since 2016,
Chair since 2016
Charlotte J. Boyle
Member since 2017
Anna
Diamantopoulou
Member from 2020
until September 2024
Elizabeth Bastoni
Member since
September 2024
Highlights 2024
• Succession planning and talent review
• Appointment of three new NEDs
• Engagement and pulse/culture surveys
• Board and committee performance
assessments and follow up actions
Gender representation at Board and ELT level
Number
of Board
members
%
of the
Board
Number
of senior
positions
on Board
(CEO, CFO,
SID and
Chair)1 Number
in ELT
% of
ELT
Men
8
62%
3
12
80%
Women
5
38%
0
3
20%
Ethnicity representation at Board and ELT level
Number
of Board
members
%
of the
Board
Number
of senior
positions
on Board
(CEO, CFO,
SID and
Chair)2 Number
in ELT
% of
ELT
White British
or other White
(including
minority-white
groups)
12
92%
3
15
100%
Mixed/multiple
ethnic groups
Asian/Asian
British
Black/African/
Caribbean/
Black British
1
8%
Other ethnic
group
Not specified/
prefer not to say3
1. CEO is a senior position on the Board but CFO is not.
2. Board and ELT diversity data is collected directly from each Director and
ELT member using a questionnaire and given on a self-identifying basis.
3. This includes, as permitted by UK Listing Rules 6.6.13R, those persons in respect
of whom data protection laws in relevant jurisdictions prevent the collection
or publication of some or all the personal data required to be disclosed.
Corporate Governance Report continued
Nomination Committee
Board composition, succession and evaluation
These appointments bring diverse
expertise to the Board, enhancing
Coca-Cola HBC’s strategic direction
and governance.
Elizabeth brings experience of advising boards
of global companies on governance, executive
compensation, strategy development and
execution and people development and
succession planning.
Wuraola brings over 20 years of experience,
acquired in her current and previous roles, of
strategy, business development, leadership,
governance, organisational development, risk
management and public sector policy in Nigeria
and throughout Africa.
Glykeria brings extensive knowledge of financial
advisory, investment, business development and
management consulting experience across a
range of sectors.
Elizabeth Bastoni
Elected at an EGM on
September 16, 2024,
and also joined the
Remuneration
Committee and
the Nomination
Committee.
Zulikat Wuraola
Abiola
Elected at the AGM
on May 21, 2024, and
also joined the Audit
and Risk Committee.
Glykeria Tsernou
Also elected at
the AGM on May 21,
2024, and also joined
the Audit and Risk
Committee.
Welcome to our new Board members
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Nomination Committee continued
Role and responsibilities
The function of the Nomination Committee is
to establish and maintain a process for appointing
new Board members, to manage effective
succession planning for the CEO, in consultation
with the Chair, and for the members of the ELT, in
consultation with the CEO, to oversee the
development of a diverse pipeline for succession,
and to support the Board in fulfilling its duty to
conduct a Board self-assessment. The formal role
of the Nomination Committee is set out in the
charter for the committees of the Board of
Directors in Annex C of Coca-Cola HBC’s
Organisational Regulations. Read more:
www.coca-colahellenic.com/en/about-us/
corporate-governance.
Key elements of the Nomination Committee’s
role are:
• reviewing the size and composition of
the Board;
• identifying candidates and nominating new
members to the Board;
• planning and managing, in consultation with the
Chair, a Board membership succession plan;
• ensuring, together with the Chair, the operation
of a satisfactory induction programme for
new members of the Board and a satisfactory
ongoing training and education programme
for existing members of the Board and its
committees as necessary to deliver on the
Group’s strategy;
• setting the criteria for, and overseeing, the
annual assessment of the performance and
effectiveness of each member of the Board
and each Board committee;
• conducting an annual assessment of the
performance and effectiveness of the
Board, and reporting conclusions and
recommendations based on the assessment
to the Board; and
• overseeing the employee and management
talent development and succession plans of
the Group.
Work and activities
The Nomination Committee met five times during
2024 and discharged the responsibilities defined
under Annex C of Coca-Cola HBC’s Organisational
Regulations. The CEO and the Chief People and
Culture Officer regularly attend meetings of the
Nomination Committee. In addition, the Chair is
actively involved in the work of the Nomination
Committee concerning succession planning and
the selection of key people. In 2024, the General
Counsel also met with the Nomination Committee
on several occasions. During 2024, it considered:
• succession planning and development of plans
for the recruitment of new Board members and
certain members of the ELT;
• recruitment and onboarding of three new
Board members;
• appointment of new CEO;
• composition of the Board, including the
appropriate balance of skills, knowledge,
experience and diversity;
• review of the talent pipeline and talent
management framework and initiatives;
• oversight of engagement survey results and
focus areas;
• monitoring of the Group’s flagship International
Trainee Leadership Programme;
• monitoring of activities focused on building
understanding and bringing our values and
bringing our values to life;
• external benchmarking and review of our
employee value proposition and other activities
to strengthen our employer branding position
and promote our preferred employer status;
• coordination of the performance evaluation
and annual assessments of the Board and
its committees;
• presentation of the Board and committees’
assessment and alignment on follow-up actions
arising from these evaluations; and
• review of the Director induction process
and training programmes.
The Nomination Committee takes into
consideration Coca-Cola HBC’s Inclusion and
Diversity and Anti-Harassment Policy, the Board
Nomination Policy, as well as Coca-Cola HBC’s
commitment to such policies, to ensure they are
embedded into the Group’s activities,
programmes and initiatives.
Board Nomination Policy
Our Board Nomination Policy requires that
each Director be recognised as a person of the
highest integrity and standing, both personally
and professionally. Each Director must be ready
to devote the time necessary to fulfil his or her
responsibilities to Coca-Cola HBC according
to the terms and conditions of his or her letter
of appointment. Each Director should have
demonstrable experience, skills and knowledge that
enhance Board effectiveness and will complement
those of the other members of the Board to
ensure an overall balance of experience, skills and
knowledge on the Board. In addition, each Director
must demonstrate familiarity with and respect for
good corporate governance practices, sustainability
and responsible approaches to social issues.
We are proud of the diverse skills and experiences
of our Board. For example, in relation to ESG
matters, the expertise of a number of our Board
members who sit on the boards of other multi-
nationals that face similar challenges and have
similar concerns on the ESG agenda, helped us
identify the commitments that we want to make
in this area and set the relevant targets. Until her
retirement from the Board in September 2024,
Anna Diamantopoulou’s familiarity with the
social protection and welfare state at the EU
Commission High-Level Group, also supported
our decision making in connection with ESG.
In addition, connected to ESG, Anastasios I.
Leventis, the Chair of the Social Responsibility
Committee of the Board, is a member of the
European Council of The Nature Conservancy
(TNC), a global environmental non-profit
organisation working to create a world where
people and nature can thrive, and he is a board
member of WWF Hellas (the Greek branch of
WWF). Those experiences support in driving
the environmental agenda and in endorsing
Coca-Cola HBC’s bold sustainability
commitments related to climate, water
stewardship, biodiversity and packaging.
In relation to risk oversight and management,
we are proud that the vast majority of our Board
members possess strong risk management
expertise, developed over time as a result of their
extensive experience in senior leadership positions
in large organisations, as executives and/or as
board members. The deep understanding of
material risks and their potential impact, the
implementation of mitigation and contingency
plans and the setting of appropriate internal
controls, processes and policies to apply effective
risk management is paramount to successfully
perform in such senior roles.
Support and training for the Board
The practices and procedures adopted by our
Board ensure that the Directors are provided
on a timely basis with comprehensive information
on the Company’s business development and
financial position, the form and content of which
is expected to enable the Directors to discharge
their duties. All Directors have access to our
General Counsel, as well as independent
professional advice at the Company’s expense.
They have full access to the CEO and senior
management, as well as the external auditor
and internal audit team.
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The Board has an induction programme for new
Directors. It involves meetings with the Chair,
members of the ELT and other senior executives,
as well as receiving orientation training in relation to
the Group and its corporate governance practices.
It also includes meetings with representatives of
our sales force, customers and major shareholders
and visits to our production plants. All Directors are
given the opportunity to attend training to ensure
that they are kept up to date on relevant legal,
accounting and corporate governance
developments. The Directors individually attend
seminars, forums, conferences and working groups
on relevant topics. The Nomination Committee
reviews Director training activities regularly. Finally,
as part of the continuing development of the
Directors, the Company Secretary ensures that
our Board is kept up to date with key corporate
governance developments. The Board appoints
the Company Secretary, who acts as secretary
to the Board.
Board appointments and
succession planning
Our Board has in place plans to ensure the
progressive renewal and appropriate succession
planning for senior management. These cover
the short, medium and long term, and are regularly
reviewed. Appointments and succession plans are
based on merit and objective criteria to ensure
Coca-Cola HBC is promoting diversity (including
gender, social and ethnic backgrounds – see right)
and cognitive and personal strengths. Pursuant
to our Articles, the Board consists of a minimum
of seven and a maximum of 15 members, and
the Directors are re-elected annually for a term
of one year by Coca-Cola HBC’s shareholders,
which is also in accordance with the UK Corporate
Governance Code. In case of resignation or death
of any member, the Board may elect a permanent
guest to be proposed for election by the
shareholders at the next AGM.
In accordance with the Organisational
Regulations, the Board proposes for election
at the shareholders’ meeting new Directors
who have been recommended by the Nomination
Committee after consultation with the Chair.
In making such recommendations, the
Nomination Committee and the Board must
consider objective criteria as above, as well as the
overall length of service of the Board as a whole,
when refreshing its membership. Through this
process, the Board is satisfied that the Board and
its committees have the diversity, independence
and knowledge to enable them to discharge their
duties, including sufficient time commitment.
Committee at work
Succession planning
Board composition
Recruitment
Shortlisting
Interview
Balance of skills assessment
Appointment
Induction
Diversity
The Group continues to have a firm commitment to
policies promoting diversity, equal opportunity and
talent development at every level throughout the
organisation, including at Board and management
level, and is constantly seeking to attract and recruit
highly qualified candidates for all positions in its
business. The Group’s Inclusion and Diversity and
Anti-Harassment Policy applies to all people who
work for us. Further details in the Group’s Inclusion
and Diversity and Anti-Harassment Policy on page
133 in the Strategic Report and on our website under
www.coca-colahellenic.com/en/about-us/
corporate-governance/policies/inclusion-and-
diversity-policy.
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Nomination Committee continued
The Group believes that diversity at the Board level
acts as a key driver of Board effectiveness, helps
to ensure that the Group can achieve its overall
business goals especially considering our
geographical footprint, and is critical in promoting
a diverse and inclusive culture across the whole
Group. The Board has adopted a Board Nomination
Policy, which guides the Nomination Committee and
the Board in relation to their approach to diversity in
respect of succession planning and the selection
process for the appointment of new Board
members. It does not include targets for either
gender or ethnicity. However, the Board is cognisant
of the recommendations in the FTSE Women
Leaders Review, the Parker Review, as well as the
targets for gender, ethnicity and persons in senior
board positions in the FCA’s UK Listing Rules, and
these will be taken into consideration for succession
planning and appointment of new Board members.
The Nomination Committee is responsible for
implementing this policy and for monitoring
progress towards the achievement of its objectives.
The requirements and objectives of the Board
Nomination Policy include that the Nomination
Committee is required to take into account all
aspects of diversity, including age, ethnicity,
gender, educational and professional background
and social background when considering
succession planning and new Board appointments;
seek a wide pool of candidates, with a broad range
of previous experience, skills and knowledge; and
give preference to executive search firms that are
accredited under the Enhanced Code of Conduct
for Executive Search Firms. Board appointments
are evaluated on merit against objective criteria
with due regard for diversity to ensure that
candidates contribute to the balance of skills,
experience, knowledge and diversity of the Board.
The Board also considers the overall length of
service of the Board as a whole when considering
refreshment of the membership.
Two Directors retired at the end of the 2024 AGM
and, following recommendation by the Nomination
Committee, two Directors (both female) were
appointed at the end of the 2024 AGM. One female
Director retired from the Board at the end of an
Extraordinary General Meeting held in September
and another female Director was appointed in her
place. Female representation on the Board is 38%.
Board and ELT gender and
ethnicity metrics
As at 31 December 2024, in accordance with the
FCA’s UK Listing Rules, Coca-Cola HBC had met
the target for ethnic Board diversity and had just
over 38% of female Board representation (slightly
behind the required 40% target in the FCA UK
Listing Rules). No senior positions on the Board
as described in the FCA UK Listing Rules are held
by women. Female representation in the ELT is 20%
and in senior management positions reporting to
the ELT is 37,93%. The Board will continue to
prioritise its gender balance and the Nomination
Committee has, and will continue to, consider this
in the context of its continuous work on succession
plans for the Board, as well as senior management
including the ELT.
The tables on page 211 include metrics that set
out the range of gender and ethnicity as they relate
to our Board and ELT as at 31 December 2024. The
ELT refers to the most senior level of managers,
including the General Counsel/Company Secretary
but excluding administrative and support staff,
in accordance with the definition in the FCA’s UK
Listing Rules. The Board diversity-related data
is collated directly from each Director and ELT
member using a questionnaire and given on
a self-identifying basis.
Gender diversity and representation
at Board and ELT level
The Board is committed to appointing
the best people with the right skills, using
non-discriminatory and fair processes during
selection, recognising the importance of diversity
in business success. It is the Board’s responsibility
to oversee senior management succession
planning to ensure a diverse pipeline of managers
and talent are identified from the management
talent development programme.
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Board performance review
The Nomination Committee led the annual
review of the Board’s, committees’ and the
Chair’s performance, as well as a self-evaluation
of each individual Director with the support of
Lintstock, an external advisory firm we have
worked with for the past nine years. Lintstock
has no other connection to Coca-Cola HBC or
individual Directors. Key areas in the assessment
were: Board composition; stakeholder oversight;
Board dynamics; management of meetings;
Board support; Board committees; strategic,
risk, stakeholder and people oversight; and
priorities for change in 2025. It also took actions
to address the recommendations from the
previous (2023) evaluation, as summarised
below. The Chair will lead on priorities to be
actioned during 2025.
In addition to the annual performance review,
the Chair met with Directors throughout 2024 to
receive feedback on the functioning of the Board
and its committees, boardroom dynamics and
Coca-Cola HBC’s strategy. These meetings give
particular focus to areas where a Director
believes the performance of the Board and
its committees could be improved.
The independent Directors met separately
at every Board meeting to discuss a variety of
issues, including the effectiveness of the Board.
The Chair and the Senior Independent Director
conducted an evaluation of each Director (other
than the Chair). The Senior Independent
Director led the evaluation of the Chair, in
conjunction with the NEDs, considering the
views of the CEO, and, as a matter of practice,
meets with the other independent NEDs when
each Board meeting is held to discuss issues
together, without the CEO or other NEDs
present. The Chair also holds meetings with
the NEDs, without the CEO present.
2024 actions based on 2023 Board
evaluation findings and previous
experience
• Prioritised sustainability-related topics,
through regular reviews on progress of plans,
as well as updates and educational sessions
on regulatory developments.
• Leveraged learnings on geopolitical, regulatory
and macro developments to inform and
validate our strategic planning and risk
management, for example, in relation to
treasury actions to mitigate FX challenges and
currency devaluation in Nigeria and Egypt and
tailoring our market execution plans to make
affordable offers to customers and consumers.
• Sessions with our corporate brokers, TCCC senior
executives and updates on investor and market
expectations, trends and developments, and
customer satisfaction surveys to acquire external
perspectives and insights on priority areas.
• Continued focusing on Emerging markets
through deep dives and regular reviews.
• Had regular updates on people activities,
development and succession plans for
senior positions, reviews of engagement
and collaboration surveys.
• Reviewed, debated and oversaw business plans
and execution, strategic priority categories, risk
management and governance matters to support
management achieving our growth targets.
• Approved technology and digital investments,
updates on cyber security matters, and a
variety of digitalisation initiatives and tools
to automate and streamline our processes.
2024 review findings
• The Board’s performance review was
considered positive overall and the scores
in all areas covered were high, as in previous
years and materially similar to 2023.
• The Board’s performance in all areas reviewed
was either equal to or above the Lintstock
Governance Index, which aggregates
feedback from over 200 recent Board reviews
that Lintstock has facilitated, demonstrating
the Board’s high confidence in its oversight.
• Coca-Cola HBC’s strategy and the Board’s
oversight of it, as well as its execution,
received very high ratings overall.
• The Board’s oversight of talent and succession
was rated highly. Excellent succession
planning and major steps made to further
improve talent and succession processes
were commended very positively.
2025 priorities based on review findings
• Focusing on the strategy, particularly longer-
term issues and opportunities.
• Board succession and continuity, with continued
focus on refreshment of the Board composition.
• Focusing on the talent pipeline and succession
planning for C-suite roles and ensuring ample
exposure of the Board to the talent pool.
• Maintaining focus on external developments,
particularly geopolitical dynamics, regulation,
and industry trends.
• Enhancing training curriculum with focus on
technology, digital, AI transformation, DIA and
sustainability related topics.
• Continuing to deep dive into key areas of
the business and improving understanding
of key markets.
A robust, independent methodology
The first stage of the review involved Lintstock
engaging with the Company Secretary and the
Nomination Committee to set the context for the
review, and to tailor survey content. The surveys
were designed to follow up on and further explore
key themes identified in last year’s evaluation, so
that year-on-year progress can be tracked. The
anonymity of all responses was guaranteed
throughout the process to promote open and
honest feedback. Lintstock subsequently analysed
the results and delivered reports on the
performance of the Board, the committees and the
Chair, which were considered at a subsequent Board
meeting. The individual Director self-assessment
reports were also provided to the Chair. The results
of the review were positive overall, and the Board
was felt to have performed effectively and
maintained a strong working dynamic.
A target has been set of 50% female
representation of managers, to be achieved by
2025. This links to our strategy to develop our
people and ensure we attract and retain a diverse
talent pool, and is one of the five pillars of our
growth strategy. Read more on pages 20 to 23.
The Nomination Committee, in conjunction with
the ELT, will continue to monitor the proportion
of women at all levels of the Group and ensure that
all appointments are made with a view to having
a high level of diversity within the workplace
and in leadership positions.
We are a global company with a diverse geographic
footprint, including in Emerging markets. Our ELT
is based in Switzerland (where Coca-Cola HBC is
incorporated), but most of our senior management
reporting to the ELT is located in other countries.
As a Swiss headquartered company any senior
management representation we have in the UK is
purely circumstantial. For this reason, we do not
have specific ethnicity targets or tracking. We are
committed to increasing the diversity of our senior
management population and there will be several
initiatives that will be put in place over the coming
years to support this and to ensure that we have
the right pipeline of talent. In the future we will also
look more closely at ethnic minority representation
across Coca-Cola HBC, not just at management
level, and report on this where appropriate.
2025 priorities
• Continued focus on succession planning for the
Board and the ELT
• Close monitoring of the Group’s talent
development framework and pipeline, including
talent attraction and retention
• Engagement and culture surveys
• Externally facilitated Board and
committee assessments
• Follow-up actions on outcome of 2024
evaluation assessment
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Social Responsibility Committee
Dear Shareholder,
Our Company has remained focused on its
sustainability journey by executing with discipline
the ESG goals and agenda across all 29 markets,
creating value to our suppliers, customers,
employees and communities and investing in
future innovations that will bring positive impact
on people and environment.
2025 will be the final year of our Mission 2025
goals, and we proudly share that we have already
reached nine out of our seventeen targets ahead
of the target year. For the fourth consecutive
year we are reducing our absolute GHG emissions
(scopes 1, 2 and 3) and performing in line with our
NetZeroby40 roadmap proving that we are able
to decouple our emissions from our business
growth. I would like to mention specifically the
progress made with the renewable energy and
top 20 energy-saving initiatives in manufacturing,
the advancement of energy-efficient coolers
that save electricity for our customers, reusable
solutions for our beverages, and increases in
recycled PET (rPET), recycled aluminium and
recycled glass in our primary packaging materials.
In December 2024, we received approval from
the SBTi of our near-term (by 2030), net-zero
(by 2040) and FLAG (Forest, Land and Agriculture)
targets against the SBTi’s Net-Zero Standard
Criteria and Near-Term Target Criteria and
Recommendations. This is a huge milestone
and we continue implementing the initiatives
in different pillars across the value chain that
bring business value and contribute to
emissions reduction.
We are progressing with our suppliers’ ESG
programmes and engagement plan that
not only helps in scope 3 emissions
decarbonisation but also bring positive
social and environmental impact.
In 2024, our newly established Coca-Cola HBC
Foundation approved €1.55 million in grants to
flood-relief projects in six Coca-Cola HBC
countries (Greece, Nigeria, Bosnia and
Herzegovina, Hungary, Poland, and Romania).
We also launched our first sustainability
capabilities programme for our sales teams,
focused on building impactful partnerships
with our customers. The programme was
created to provide our customer-facing
teams with relevant proof-points and value-
creation approach.
In preparation for compliance with the EU
Deforestation Regulation, a cross-functional
working group is assessing potential solutions
for meeting all requirements in 2025.
Our Committee pays attention to the
increasing complexity coming with all new
ESG compliance frameworks and closely
monitors the development of the new ones.
Our first sustainability statement as per the
ESRS requirements can be found on pages
41 to 172.
Our Company continued its progress on packaging
collection: As of January 2025, nine markets have
DRS in place, with two more schemes expected to
go live in 2025. In May 2024, we hosted 60 TCCS
participants from 25 markets in Bucharest, Romania
to share learnings from our DRS markets, discuss
approaches to cross-functional collaboration,
experience DRS in action and interact with
external stakeholders.
We are on track to meet our challenging water
stewardship goal for helping communities in
water risk by adding four to the existing 12 water
stewardship projects and planning three more in
2025 to reach 100% of this 2025 goal.
Charlotte J. Boyle
Member since
September 2024
Evguenia Stoitchkova
Member since May 2023
Highlights 2024
• Review of main actions for the Group’s net
zero transition plan developed as part of
NetZeroby40 goal combined with science-
based carbon reduction targets by 2030.
• Approval from the SBTi of our near-term
(by 2030), net-zero (by 2040) and FLAG
(Forest, Land and Agriculture) targets.
• Monitoring progress and status towards the
Group’s ESG targets in all seven focus areas.
• Review of the first sustainability capabilities’
programme for our sales team, which is
focused on building impactful partnership
with the customers in sustainability.
• Oversight of the Group’s packaging
collection roadmap and plans for DRSs in our
markets and the first the Coca-Cola System
(TCCS)-owned tailor made collection model
in Nigeria.
• Overview of the EU compliance frameworks,
with a specific focus on Corporate
Sustainability Reporting Directive (CSRD)
and our compliance plans and European
Sustainability Reporting Standards (ESRS).
• Approval of the Group’s Double
Materiality Assessment (DMA)
approach and DMA results.
• Review of the results and improvement
opportunities from the 2023 ESG
assurance audit.
Overview
Anastasios I. Leventis (Chair)
Member since 2016
Chair since 2016
Anna Diamantopoulou
Member from June 2020
until September 2024
Members
The Social Responsibility Committee
comprises one independent NED and
two NEDs: Anastasios I. Leventis (Chair),
Anna Diamantopoulou until September 2024,
Evguenia Stoitchkova and Charlotte J. Boyle
from September 2024.
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Social Responsibility Committee continued
In 2024, Coca-Cola HBC’s was again named by the
Dow Jones Best-in-Class Indices as a leader, with
the highest S&P Global Corporate Sustainability
Assessment score in the Beverage industry, which
is the eighth time we have topped the industry
and marks 14 consecutive years among the top
three. We continue to earn leading scores in the
beverage industry in 10 of the most recognised
ESG ratings (DJSI, CDP Climate and Water, MSCI
ESG, ISS ESG, V.E. Moody’s ESG and Morningstar
Sustainalytics among them).
During the year we reviewed the high-level
activities and the capital investments related
to sustainability, sustainability communication
strategy, and the capability programme prepared
for different levels in our organisation aiming to
build sustainability knowledge.
Within 2025, the Social Responsibility
Committee will ensure that the business
strategy is fully aligned with the Group’s ESG
agenda and that the Company continues to create
value for employees, communities, society and
the environment. 2025 will be the last year of
our Mission 2025 goals and we are looking for our
next ESG ambitions in the areas material for our
stakeholders, for our business, for society, and
for the environment. Among the continuous focus
in 2025 will be the NetZeroby40 goal, biodiversity,
water community and water replenishment
projects, Pack and Mix of the Future plans,
packaging collection, human rights, our social
agenda and impact, ESG programmes for our
suppliers, and customer partnerships in
sustainability.
Anastasios I. Leventis
Committee Chair
Role and responsibilities
The Social Responsibility Committee is responsible
for the development and supervision of procedures
and systems to ensure the pursuit of the Group’s
social and environmental goals, as set out in the
charter for the committees of the Board of
Directors in Annex C to Coca-Cola HBC’s
Organisational Regulations. Key areas of
responsibility are:
• establishing the principles governing the
Group’s policies on social responsibility and the
environment to guide management’s decisions
and actions;
• overseeing the development and supervision
of procedures and systems to ensure the
achievement of the Group’s social responsibility
and environmental goals;
• establishing and operating a council responsible
for developing and implementing policies and
strategies to achieve Coca-Cola HBC’s social
responsibility and environmental goals (in all
ESG pillars, such as climate change, water
stewardship, packaging and waste, sustainable
sourcing, health and nutrition, our people and
communities, and biodiversity), and ensuring
Group-wide capabilities to execute such
policies and strategies;
• ensuring the necessary and appropriate
transparency and openness in the Group’s
business conduct in pursuit of its social
responsibility and environmental goals;
• ensuring and overseeing the Group’s interactions
with stakeholders in relation to its social
responsibility and environmental policies, goals and
achievements, including the level of compliance
with internationally accepted standards; and
• reviewing Group policies on environmental
issues, human rights and other topics as
they relate to social responsibility.
Work and activities
The Social Responsibility Committee met four times
during 2024. It invited other members of the Board
to attend the meetings, namely Charlotte J. Boyle,
George Leventis, Elizabeth Bastoni and the CEO, as
well as the Chief Corporate Affairs and Sustainability
Officer and additional senior leaders subject
to the discussion topics. During 2024, the Social
Responsibility Committee reviewed and provided
guidance and insights to advance the Group’s
sustainability approach in the following areas:
• Progress on and action plans made against
the seventeen publicly communicated 2025
sustainability goals and their six focus areas.
• 2030 science-based targets and the SBTi-
approved NetZeroby40 goal, including its net
zero transition plan, with the main initiatives per
lever (pillar) and their Capex and Opex.
• Sustainable packaging agenda and progress
towards more sustainable packaging (rPET,
packageless, refillables and other).
• Packaging collection and recovery with DRS
implementation across Europe and solutions
for Nigeria and Egypt.
• Group CEO’s participation in the Alliance of CEO
Climate Leaders at the World Economic Forum.
• Investments in different initiatives that deliver
sustainability benefits.
• Approach to carbon removals and carbon credits.
• Review of progress in decreasing calories in our
beverages as part of our nutrition agenda.
• Health and safety programmes, including Life
Saving Rules and Behavioural Based Safety.
• Social impact community programmes such
as #YouthEmpowered programmes and water
stewardship projects.
• DMA process and approval of results.
• ESRS reporting and compliance with the CSRD,
Corporate Sustainability Due Diligence Directive
(CS DDD) and EU Deforestation Regulation
(EU DR), as well as reporting towards different
ESG reporting frameworks, standards and
benchmarking such as the GRI Standards, SDGs,
Dow Jones Sustainability Indices, CDP Climate
and Water, Task Force on Climate-related Financial
Disclosures (TCFD), and the Sustainability
Accounting Standards Board (SASB).
• Review of supplier engagement activities
and programmes, including suppliers’ progress
towards setting science-based targets and shifting
to green energy, suppliers’ ESG risk assessment,
and capabilities-building programmes.
• Deep-dive analysis of Group results in various
ESG benchmarks.
• Monitoring innovation projects and partnerships
that support our ESG agenda.
• Ongoing updates on plastic packaging levies,
EU Packaging and Packaging Waste Regulation,
product tax developments, EU Green Claims
Directive and the UN Global Plastics Treaty.
• Active involvement in Annual Stakeholder Forum
‘Harnessing the Circular Economy for Packaging.’
• Support with flood reliefs our communities
in need by the Coca-Cola HBC Foundation.
• Review of sustainability communication plans,
their impact on the Group’s reputation and
initiatives for bringing its culture story to life.
Priorities for 2025
• Continuous review of the net zero transition plan
and its roadmap supporting our NetZeroby40
emissions goal approved by the Science-Based
Targets initiative (SBTi).
• Overview of the status of all Mission 2025
goals in their final year of completion.
• Overview of the plans and key activities to
deliver the 2025 packaging collection target.
• Endorsement of Coca-Cola HBC’s sustainability
targets beyond 2025.
• Further refinement of the DMA, focusing on
dependencies, impacts, risks, and opportunities.
• Compliance to the EU Deforestation Regulation
and review of the mandatory ESG reporting
standards across our jurisdictions.
• Monitor development of the Science Based
Targets Network for Nature and its guidelines
for setting biodiversity science-based targets
and their implementation in our Company.
• Partnerships for innovation in the area of ESG,
with both customers and suppliers.
• Overview of the social impact programmes.
• Progress on calorie reduction and added sugar
reduction across beverage categories.
• Stakeholder outreach activities.
• Ongoing activities related to ESG
benchmarking, plastic packaging levies
and product tax developments.
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Supplementary Information
Dear Shareholder,
I am pleased to present the annual report of the
Audit and Risk Committee. This report explains the
Audit and Risk Committee’s responsibilities and work
during 2024. In performing its work, the Audit and
Risk Committee balances independent oversight
with support and guidance to management.
I am confident to report that the Audit and Risk
Committee, supported by senior management
and the external auditor, consistently carried out its
duties to a high standard during the reporting year.
We have monitored and reviewed our risk
management processes, including our risk profile
and mitigation plans, but also principal risks and
risk appetite as well as the Business Resilience
Framework, which has replaced the Enterprise
Risk Management Framework. The Audit and Risk
Committee endorsed the ERBD loan facility for
operations in Egypt, had regular updates of the
work on CSRD compliance and endorsed the DMA
prepared, and had regular updates on preparatory
work for the tender of the external audit contract
during 2025. The Audit and Risk Committee worked
closely with the corporate audit and finance teams
in overseeing the implementation and monitoring
of the Group’s internal control framework.
Further areas of focus are included in the work and
activities of the Audit and Risk Committee and the
key areas of significance in the preparation of the
financial statements in the IAR.
William W. (Bill) Douglas III
Committee Chair
Role and responsibilities
The Audit and Risk Committee monitors the
effectiveness of our financial and sustainability
reporting, internal control and risk management
systems, and processes. The role of the Audit and
Risk Committee is set out in the charter for the
committees of the Board of Directors in Annex C
of Coca-Cola HBC’s Organisational Regulations.
Read more: coca-colahellenic.com/ en/about-us/
corporate-governance. The key responsibilities and
elements of the Audit and Risk Committee’s role are
as follows:
• Providing advice to the Board on whether
the Integrated Annual Report (including the
consolidated financial statements, taken as
a whole) is a fair, balanced and understandable
assessment of Coca-Cola HBC’s position
and prospects and provides the information
necessary for shareholders to assess the Group’s
position and performance, including whether
there is consistency throughout the report
including the financial reporting, whether the
report will form a good basis of information for the
shareholders, and that important messages are
highlighted appropriately throughout the report.
• Monitoring the quality, fairness and integrity of the
consolidated financial statements of the Group
and reviewing significant financial reporting issues
and judgements contained in them.
• Reviewing the Group’s internal financial control
and anti-fraud systems as well as the Group’s
broader business resilience and legal and
ethical compliance programmes (including
computerised information system controls and
security) with the input of the external auditor
and the internal audit department.
• Reviewing and evaluating the Group’s major areas
of financial risk and the steps taken to monitor and
control such risk, as well as guidelines and policies
governing risk assessment.
• Quarterly review of Coca-Cola HBC’s principal risks
and the actions it is taking to manage those risks.
• Establishing and updating the risk appetite
statement, which establishes the level of risk
that Coca-Cola HBC is prepared to take in
achieving its strategic objectives.
William W. (Bill)
Douglas III (Chair)
Member since 2016
Chair since June 2016
Olusola (Sola)
David‑Borha
Member from 2015
until May 2024
Zulikat Wuraola Abiola
Member since May 2024
Alexandra
Papalexopoulou
Member from 2020
until May 2024
Highlights 2024
• Endorsement of the new Business Resilience
Framework to replace the Enterprise Risk
Management Framework.
• Endorsement of work for CSRD compliance.
• Preparatory work for audit tender in 2025.
• Review of the changes in the Corporate Audit
Department and internal audit policies and
procedures to comply with the new global
internal audit standards effective January 2025.
• Endorsement of EBRD loan facility for
operations in Egypt.
Overview
Glykeria Tsernou
Member since May 2024
Members
All members of the Audit and Risk Committee
are independent NEDs: William W. (Bill) Douglas III
(Chair), Zulikat Wuraola Abiola and Glykeria Tsernou
were each elected for a one-year term by the
shareholders at the AGM in May 2024.
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• Monitoring and reviewing the external
auditor’s independence, quality, adequacy and
effectiveness, taking into consideration the
requirements of all applicable laws in Switzerland
and the UK, the listing requirements of the
London Stock Exchange and Athens Exchange,
and applicable professional standards.
The Board is satisfied that Bill Douglas, Zulikat
Wuraola Abiola and Glykeria Tsernou possess
recent and relevant financial and sector
experience in compliance with the UK Corporate
Governance Code. Bill Douglas was formerly
Executive Vice President and CFO of Coca-Cola
Enterprises, Zulikat Wuraola Abiola has risk
management experience and Glykeria Tsernou is
experienced in financial advisory and investment.
The Board is also satisfied that the members of
the Audit and Risk Committee have competence
in the sector in which Coca-Cola HBC operates,
in compliance with the UK Corporate Governance
Code and UK listing regime requirements.
Read about their experience and biographies on
pages 195 to 197.
The Group CFO, as well as the General Counsel,
external auditor, the Head of Corporate Audit and
the Group Financial Controller, attend all meetings
of the Audit and Risk Committee. Other officers and
employees are invited to attend meetings when
appropriate. Two NEDs, Henrique Braun and Christo
Leventis, were invited to attend all meetings during
2024. The Head of Corporate Audit and, separately,
the external auditor, meet regularly with the Audit
and Risk Committee without the presence of
management to discuss the adequacy of internal
controls and any other matters deemed relevant
to the Audit and Risk Committee. The Chair
of the Audit and Risk Committee attended our
AGM in May 2024 and regularly interacts with
representatives of our shareholders.
Work and activities
The Audit and Risk Committee met eight times,
four of which were by video conference call, during
2024 and discharged the responsibilities defined
under Annex C of Coca-Cola HBC’s Organisational
Regulations. The work of the Audit and Risk
Committee during the year included
consideration, review, and where appropriate
challenge, of the respective matters, as well as
assessment of management’s mitigating actions
and response plans in the areas below:
Reporting
• the full-year consolidated financial statements
and results announcement, the half-year
consolidated financial statements and interim
results announcement, prior to submission for
Board approval, the quarterly trading updates,
as well as upgrading the Group’s 2024 guidance
in its half-year results;
• areas of significance in the preparation of the
consolidated financial statements and impact
on markets including: foreign currency volatility,
affordability challenges, floods and wildfires in
various countries and geopolitical issues such
as in the Middle East region, Ukraine and Russia;
• oversight of the preparations and endorsement
of the first CSRD reporting of the Company
for approval by the Board, working closely with
and challenging the management to ensure
the ESG data integrity matches that of financial
data integrity; and
• the external auditor’s reports on the Group’s
consolidated half-year and annual financial
statements and Swiss statutory audit report;
Regular finance, tax and regulatory updates
• regular finance and market updates on
performance and significant accounting,
reporting and internal audit matters, including
actions to mitigate inflation, currency volatility
and other finance related risks;
• oversight of tax strategy, key international
tax initiatives, and ongoing tax audits;
• regular updates on health and safety, quality
assurance, regulatory compliance, including
data privacy, fraud control, sanctions,
and overview of litigation and regulatory
investigations and compliance with the
Group’s Code of Business Conduct; and
• regular updates from the external auditor
on accounting and regulatory developments,
including updates on Swiss regulatory
developments and CSRD;
Principal risks, internal controls
& external auditor
• scheduled risk updates and updates on business
resilience matters including: emerging risks,
use of AI, cyber security, insurance, business
resilience processes and the fire at the Bambi
production plant;
• approval of changes to 2024 internal audit plan,
quarterly reports on internal audit matters
across the Group’s business and approval
of the 2025 internal audit plan;
• the internal control environment, principal risks
and risk management systems (including and
the Group’s statement on the effectiveness of
its internal controls prior to endorsement by
the Board, concluding that management has
carried out a robust risk assessment process);
• endorsement of the Group’s risk appetite
statement and the framework for establishing
risk tolerance levels for all risks as a key part of
the risk assessment process;
• reports on the Group’s impairment assessment
processes and relevant results in connection
with the interim and annual financial report;
• review of and discussion with senior
management on the viability statement
scenarios and underlying assumptions,
the going concern reporting basis and
endorsement of recommendation to the
Board to approve the viability statement;
• progress on internal control frameworks and
assessment and integration of the Company’s
Egyptian subsidiary;
• an assessment and confirmation of the internal
audit function including sufficiency of the internal
audit budget and resources, and confirmation
of the internal auditor’s quality, independence,
experience and expertise for the business;
• external audit plan and pre-approval of audit
fees for 2025, as well as external audit tender
plan for 2025;
• consideration of the external auditor’s
independence, quality, and adequacy and
the effectiveness of its audit of the financial
statements; and
• assessment of Coca-Cola HBC’s external
reporting to ensure it is fair, balanced and
understandable in accordance with the
Board’s obligation under the UK Corporate
Governance Code.
In 2024, the Audit and Risk Committee also
reviewed the 2023 Integrated Annual Report
including the consolidated financial statements
and associated reports and information. The Audit
and Risk Committee received assurances from
management and details on the processes underlying
the preparation of published financial information.
Following evaluation of all available information,
the Audit and Risk Committee concluded and
advised the Board that the 2023 Integrated
Annual Report including the consolidated financial
statements is fair, balanced and understandable.
Areas of key significance in the
preparation of the financial statements
The Audit and Risk Committee considered a number
of areas of key significance in the preparation of the
financial statements in 2024, including:
• appropriateness of critical accounting
judgements and estimates that affect the
reported amounts of assets, liabilities, revenues
and expenses, and the disclosure of contingent
assets and liabilities in the consolidated financial
statements (detailed in Notes 5, 13, 15, 21 and
29 to the consolidated financial statements),
identified by management;
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• review of the trading environment and resilience
of the Group’s business in light of the conflict
between Russia and Ukraine and strategic
actions implemented to mitigate risks and
restructure business operations;
• review of the annual impairment testing of
goodwill and other indefinite lived intangible
assets testing performed by management and
reviewed by the external auditor under IAS 36
as well as the related sensitivity analysis with
confirmation that management had undertaken
a robust impairment testing process, relying
on both internal information, and other
publicly available metrics to perform the
auditor’s assessment;
• review of key assumptions for specific
countries, challenging management drivers
of relevant deviations and performance to date,
as well as countries’ Weighted Average Cost of
Capital (WACC) rates development vs prior year;
• review of geopolitical events in the Middle East;
• review of new launches of products into
markets and further expansion of other
products into new markets;
• review of the contingencies, legal proceedings,
competition law and regulatory procedures;
• review of guidance provided by the FCA and
related to areas of focus for the 2024/2025
reporting season, including EU CSRD,
amendments to the FRC’s UK Corporate
Governance Code, the FCA’s UK Listing Regime
and new global internal audit standards applying
from January 2025;
• review of the external auditor’s work on the
European Single Electronic Format standard,
as well as its work on climate risk;
• review of the interim impairment testing of
goodwill and other indefinite lived intangible
assets performed by management in relation
to the Company’s Egyptian subsidiary;
• assessment of management’s work in
conducting a robust assessment of the risks
that impact the viability and going concern
statements, including review of scenarios
and underlying assumptions;
• recommending to the Board to approve
the viability statement;
• deeming appropriate that the Group continues
to apply the going concern basis for the
preparation of the financial statements; and
• TCFD reporting obligations.
External auditor
PricewaterhouseCoopers AG, Birchstrasse 160,
CH 8050 Zurich, Switzerland (‘PwC AG’) has been
elected by the shareholders as the statutory
auditor for the Group’s statutory consolidated
and standalone financial statements. The signing
partner for the second year, for the statutory
financial statements on behalf of PwC AG is
Patrick Balkanyi, for the year ended 31 December
2024. The Board, at the recommendation of
the Audit and Risk Committee, has retained
PricewaterhouseCoopers S.A., 65 Kifissias Avenue
– 15124 Marousi, Greece (‘PwC S.A.’), an affiliate
of PwC AG, to act as the Group’s independent
registered public accounting firm for the purposes
of reporting under the UK rules for the year ended
31 December 2024. For the fourth year, the signing
partner of the Group financial statements (for the
year ended 31 December 2024) on behalf of PwC
S.A. is Fotis Smyrnis, who is also the signing partner
of the assurance engagement regarding the Group
Sustainability Statement.
The appointment of PwC S.A. has also been
approved by the shareholders until the next AGM
by way of advisory vote for UK purposes. ‘PwC’
refers to PwC AG or PwC S.A., as applicable,
in this Integrated Annual Report.
During the accounting period, the members of
the Audit and Risk Committee met on a regular
basis with the appointed PwC signing partners,
both with and without management being present.
This provided the Audit and Risk Committee
with an opportunity for open dialogue, to
question and be satisfied as to the quality of the
audit work performed by PwC and challenge PwC’s
professional scepticism. During the meetings, the
appointed PwC signing partners demonstrated
their understanding of the Group’s business risks
and the consequential impact on the financial
statement risks, especially around areas of key
significance in the preparation of the financial
statements including but not limited to the
trading environment and resilience of the Group’s
business in light of the challenging macroeconomic
conditions, the annual impairment testing,
contingencies and legal proceedings including
taxes. The Audit and Risk Committee took an
active role in reviewing the scope of the audit,
the independence, objectivity and effectiveness
of PwC, and the negotiations relating to audit fees.
The Audit and Risk Committee also met with the
management team, which led the discussions with
PwC, including the Head of Corporate Audit, to
review the performance of PwC without PwC being
present. Following this review process, the Audit
and Risk Committee has recommended to the
Board that (i) a proposal to reappoint PwC AG be
put to a shareholders’ vote; and (ii) a proposal to
reappoint PwC S.A. be put to a shareholders’
advisory vote at the next AGM.
PwC has acted as the Group’s principal
external auditor since 2003. Coca-Cola HBC
ran a competitive tender for the external auditor
services in 2015 which was overseen by the Audit
and Risk Committee. Following the evaluation
of the proposals, the Audit and Risk Committee
concluded in 2015 that the best interests of the
Group and its shareholders would be served by
reappointing PwC as external auditor and made
such recommendation to the Board. PwC was
reappointed by the Board as the Group’s external
auditor on 11 December 2015 with effect from the
financial year 2017. Currently, the Audit and Risk
Committee anticipates that the audit contract will
be put out to tender again in the first half of 2025
for audit services with effect from financial year
2027, ensuring stability and quality of the audit
process. As a Swiss company, Coca-Cola HBC is
not subject to mandatory auditor rotation rules in
the EU or UK but understands the requirements.
There are no contractual or other obligations
restricting the Group’s choice of external auditor.
Non-audit services provided by the
external auditor
The Audit and Risk Committee considers the
independence, in both fact and appearance, of
the external auditor as critical and has long had an
auditor independence policy providing definitions
of the services that the external auditor may and
may not provide. In line with the relevant FRC
Guidance, the Company’s relevant policy requires
the Audit and Risk Committee’s pre-approval of all
audit and permissible non-audit services provided
by the external auditor, and only for matters that
are clearly trivial to the Company. Such services
include audit, work related to audit, and certain
tax and other services as further explained below. In
practice, the Audit and Risk Committee applies the
policy restrictively, and approval for work other than
audit and audit-related services is rarely granted.
Under the policy, pre-approval may be provided for
work associated with: statutory or other financial
audit work under IFRS or according to local
statutory requirements; attestation services
not required by statute or regulation; accounting
and financial reporting consultation and research
work necessary to comply with generally accepted
accounting and auditing standards; internal control
reviews and assistance with internal control
reporting requirements; review of information
systems security and controls; tax compliance and
related tax services, excluding any tax services
prohibited by regulatory or other oversight
authorities; expatriates’ and other individual
tax services; and assistance and consultation
on questions raised by regulatory agencies.
For each proposed service, the external
auditor is required to provide detailed back-up
documentation at the time of approval to permit
the Audit and Risk Committee to decide whether
the provision of such services would impair the
external auditor’s independence.
PwC has complied with the policy for the financial
year ended on 31 December 2024.
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Audit fees and all other fees
Audit fees: The fees to PwC and affiliates for audit
services were approximately €5.4 million for the
year ended 31 December 2024 (2023: €5.3 million).
The audit fees for 2024 include fees associated
with the annual audit of the Group’s consolidated
financial statements, the review of the Group’s
condensed consolidated interim financial
statements, prepared in accordance with IFRS
as adopted by the EU, as well as local statutory
audits. Fees for audit services to firms other than
PwC and affiliates were €0.7 million for the year
ended 31 December 2024 (2023: €0.6 million).
Audit-related fees: Fees to PwC and affiliates
for audit-related services for the year ended
31 December 2024 were €1.1 million
(2023: €1.0 million).
All other fees: Fees to PwC and affiliates
for non-audit services for the year ended
31 December 2024 were €0 (2023: €0.1 million).
Risk management
During 2024, Coca-Cola HBC continued to revise
and strengthen its approach to risk management
(see pages 178 to 180). The primary aim of our risk
management programme is to minimise our
exposure and ensure that the nature and
significance of all risks we are facing are properly
identified, reviewed, managed and, where
necessary, escalated. Risk assessments are
conducted and discussed at monthly senior
leadership team meetings in all our business units.
These assessments are reviewed by regional
management teams and the Chief Risk Officer
(CRO) twice a year. In addition, corporate
functions conduct broader risk assessments
across the business with the CRO bi-annually.
Coca-Cola HBC’s Group Risk and Compliance
Committee reviews the assessments of emerging
and principal risks bi-annually and the outcomes
of those reviews, along with mitigating actions
are presented by the CRO to the ELT and the
Audit and Risk Committee. This process is both
top-down and bottom-up and is designed to
ensure that risks arising from business activities
are appropriately managed.
The Audit and Risk Committee confirms that the
risk management and internal control systems
have been in place for the year under review and
up to the approval of the 2024 Integrated Annual
Report. Finally, Coca-Cola HBC has in place
third-party insurance to cover residual insurable
risk exposure such as property damage, business
interruption, cyber risks and liability protection,
including Directors’ and officers’ insurance for
our Directors and officers.
Internal control
The Board has ultimate responsibility for ensuring
that Coca-Cola HBC has adequate systems of
financial reporting control. Systems of financial
reporting control can provide only reasonable
and not absolute assurance against material
misstatements or loss. In certain of the countries
in which we operate, our businesses are exposed
to a heightened risk of loss due to fraud and criminal
activity. We review our systems of financial control
regularly to minimise such losses.
Internal audit
Our internal audit function reports directly to
the Audit and Risk Committee, which reviews
and approves the internal audit plan for each year.
The internal audit function consists of approximately
45 full-time professional audit staff, primarily based
in Athens, Sofia, Lagos and Cairo, covering a range
of disciplines and business expertise. One of the
responsibilities of the internal audit function is
to provide risk-based and objective assurance
to the Board as to whether the Group’s framework
of risk management, including the internal control
framework, is operating effectively. For this
purpose, the Head of Corporate Audit makes
quarterly presentations to the Audit and Risk
Committee and meets regularly with the Audit
and Risk Committee without the presence of
management. In addition, the internal audit
function reviews the internal financial, operational
and compliance control systems across all
jurisdictions where we operate, and reports its
findings to management and the Audit and Risk
Committee on a regular basis.
The internal audit function focuses its work on the
areas of key risk, as determined by a risk-based
approach to audit planning. As part of our
commitment to maintaining and strengthening best
practice in corporate governance matters, we also
consistently seek to enhance our internal control
environment and risk management capability. The
internal audit function carries out work across the
Group, providing independent assurance, advice
and insight to help the organisation accomplish its
objectives by bringing a systematic, disciplined
approach to evaluating and improving the
effectiveness of risk management, control and
governance processes. In December 2024, the Audit
and Risk Committee agreed the 2025 audit plan to
be undertaken by the internal audit team. The audit
plan coverage is based on risk, strategic priorities
and consideration of the strength of the control
environment. The internal audit function prepares
audit reports and recommendations following each
audit, and appropriate measures are then taken to
ensure that all recommendations are implemented.
Significant issues, if any, are raised immediately
after they are identified. There were no such
issues identified in 2024.
The Board has adopted a chart of authority,
defining financial and other authorisation limits
and setting procedures for approving capital and
investment expenditure. The Board also approves
detailed annual budgets. It subsequently reviews
quarterly performance against targets set forth
in these plans and budgets. A key focus of the
financial management strategy is the protection
of our earnings stream and management of
our cash flow. Our internal audit function has
conducted an annual review of the effectiveness
of our risk management and internal control
systems in accordance with the UK Corporate
Governance Code.
The Audit and Risk Committee’s review included
bi-annual reviews with the CRO on the operation
of the business resilience programme, regular
review of our financial operations and compliance
controls and consideration of Coca-Cola HBC’s
principal risks. Part of this review involves regular
review of our financial, operational and compliance
controls, following which we report back to the
Board on our work and findings as described above.
This allowed the Audit and Risk Committee to
provide positive assurance to the Board to
assist it in making the statements that our risk
management and internal control systems are
effective, as required by the UK Corporate
Governance Code. Read more on page 191.
The key features of the Group’s internal control
systems that ensure the accuracy and reliability of
financial reporting include: clearly defined lines of
accountability and delegation of authority; policies
and procedures that cover financial planning and
reporting; preparation of monthly management
accounts; and review of the disclosures within the
Integrated Annual Report from function heads to
ensure that the disclosures made appropriately
reflect the developments within the Group in the
year and meet the requirement of being fair,
balanced and understandable.
The Audit and Risk Committee reviews the
results of the internal audit reports during each
meeting, focusing on the key observations of any
reports where processes and controls require
improvement. The Audit and Risk Committee
was also provided with updates on the remediation
status of management actions on internal audit
findings and on the internal audit quality assurance
and improvement programme at each meeting.
The robustness of the internal control systems
and processes around risk management remained
in focus. The Audit and Risk Committee was kept
informed of any changes or adaptations to
ensure full functionality as Coca-Cola HBC
continued to operate under the circumstances
and uncertainties of the conflict between Russia
and Ukraine.
The Group CFO, the Country General Managers and
Country CFOs have access to the implementation
status of the recommendations at all times.
Where internal or external circumstances give
rise to an increased level of risk, the audit plan
is modified accordingly.
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Nevertheless, no significant cases occurred
this year. Any changes to the agreed audit plan
are presented to and agreed by the Audit and
Risk Committee.
Cyber security and AI
There were no significant cyber security incidents
in the last five years. For further details as to the
identification of cyber security as a principal risk
see page 183.
AI requirements, guidelines and end-user training
material have been communicated as part of our
Group wide communication campaign on
compliance during our Ethics and Compliance
Week to ensure the ethical, trustworthy and
robust deployment of AI technologies.
Business conduct, anti-bribery and
anti-money laundering
We seek to grow our business by serving customers
and consumers and conduct all business activities
with integrity and respect. The Board is responsible
for ensuring appropriate procedures and processes
are in place to enable our workforce to raise any
issues of concern and is satisfied that the processes
in place are appropriate. The Board maintains
zero-tolerance regarding breaches of our Code of
Business Conduct and anti-bribery policies, as well
as any attempts to retaliate against our people who
report potential violations. We have mandatory
training for all our people, including our ELT, so
that everyone understands our Code of Business
Conduct, and we hold additional targeted anti-
bribery training for employees working in areas we
assess as high risk. In line with our commitment to
continue streamlining our compliance processes,
during 2024 we introduced an enhanced version
of our Code of Business Conduct Approval Portal
for better user experience.
A Code of Business Conduct and Anti-bribery Policy
course is available on-line to all employees and
includes a knowledge test, acknowledgement, and
re-commitment to compliance with the Code and its
related policies. At the end of the last training wave in
2024, 29,053 employees passed the course, which
was 98.8% of the total active population. Since
then, we have continued to train every newly hired
employee. As in the past, this training will continue
to be a regular requirement for all employees,
with a refresher requirement every three years.
In 2024, our communication plan on compliance
included several initiatives to continue raising
awareness on business ethics among our people,
like our annual Ethics and Compliance Week, which
was rolled out across our business units. We also
have an established anti-bribery due diligence
process for third parties in contact with public
authorities on behalf of Coca-Cola HBC.
There were no money laundering incidents to report.
Read our Anti-bribery Policy and Code of Business
Conduct: coca-colahellenic.com/en/about-us/
corporate-governance/policies.
Whistleblowing
We have established grievance mechanisms,
including an independently operated whistleblower
‘Speak Up! line,’ available in all Coca-Cola HBC
countries in local languages to ensure any
concerns can be raised. In 2024, we processed
828 allegations (2023: 640) reports and inquiries,
of which 588 (2023: 422) were received through
the Speak Up! line. Among these reports 600
(2023:482) were allegations involving potential
Code of Business Conduct violations which were
investigated in accordance with the Group Code
of Business Conduct Handling Guidelines. The
remaining 228 (2023:158) were inquiries regarding
Company policies and procedures.
Of those investigated as potential violations of our
Code of Business Conduct, 208 (2023: 164) matters
were substantiated as code violations, of which 33
(2023: 18) involved a financial impact greater than
€10,000 or involved an employee in a managerial
position. For details concerning the handling of
allegations received in 2024, see our website.
You can find more on allegations investigated
and violations uncovered in our GRI index.
Read about the handling of allegations received in
2024
Read about allegations investigated and violations
uncovered in our GRI index (link).
Through the ‘Speak Up! line’, we receive, retain,
investigate and act on employee, officer, consultant,
intern, secondee or agent of Coca-Cola HBC’s
complaints or concerns regarding accounting,
internal control, suspected fraudulent conduct,
corrupt conduct, violation of any applicable antitrust
and competition law rules, violation of personal data
protection and company system security rules,
endangerment of an individual’s or individuals’
health and safety, endangerment of the
environment, commission of a criminal offence,
failure to comply with any legal or regulatory
obligation, and concealment of any information
pertaining to any of the above, or other
ethical matters.
This includes any matters regarding the
circumvention or attempted circumvention
of internal controls, including matters that would
constitute a violation of our Code of Business
Conduct and related policies or matters involving
fraudulent behaviour by officers or employees of
the Group. Individuals can report all such allegations,
complaints or concerns in local languages, also
directly to their Ethics and Compliance Officer,
General Manager, Function Head, the Senior Audit
Manager – COBC & Compliance, the Head of
Corporate Audit, or our General Counsel.
All communications received directly by Coca-
Cola HBC’s representatives or through the Speak
Up! line are kept confidential and, where
requested, anonymous. The Head of Corporate
Audit liaises regularly with the General Counsel
and communicates all significant allegations to
the Chair of the Audit and Risk Committee. All
matters received via the Speak Up! line or any
other reporting mechanism are thoroughly
investigated. The Audit and Risk Committee
receives summary reports of escalated incidents
and instances of whistleblowing together with the
status of investigations and, where appropriate,
management actions to remedy issues identified.
The Audit and Risk Committee reports on such
matters to the Board, which reviews and considers
those reports at least bi-annually as appropriate.
Disclosure Committee
We have a Disclosure Committee, and disclosure
controls and procedures have been adopted to
ensure the accuracy and completeness of our
public disclosures. The Disclosure Committee
is composed of the Group CFO, the General
Counsel, the Head of Investor Relations and
the Group Financial Controller.
Performance reporting
Reports on our annual performance and prospects
are presented in the Integrated Annual Report
following recommendation by the Audit and Risk
Committee. In line with UK practice, we have
adopted half-year and full-year reports, and Q1 and
Q3 trading updates. Internally, our financial results
and key performance indicators are reviewed by the
ELT on a monthly basis. This information includes
comparisons against business plans, forecasts
and prior-year performance. The Board receives
updates on performance at each Board meeting,
as well as a monthly report on our business and
financial performance.
Priorities for 2025
• Monitoring updates in connection with
International Financial Reporting Standards
(‘IFRS’) and other regulatory and reporting matters,
including potential classification of Egypt and/or
Nigeria as hyperinflationary economies.
• Ongoing monitoring of risks, as well as impairment
testing of goodwill and intangible assets.
• Ongoing monitoring of internal financial
controls, anti-fraud systems and Code of
Business Conduct compliance.
• Ongoing monitoring of the Group’s Business
Resilience, Risk Management and Quality
Assurance programmes.
• Ongoing monitoring of the Group’s Cyber
Security programme.
• Overview, plan progress and results of
audit tender.
• Ongoing monitoring of developments regarding
CSRD reporting requirements.
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Supplementary Information
Directors’ remuneration report
Letter from the Chair of the Remuneration Committee
Dear Shareholder,
As the Chair of the Remuneration Committee,
I am pleased to share the Directors’ remuneration
report for the year ended 31 December 2024,
which includes: the Directors’ remuneration policy
that shareholders will be asked to approve at the
AGM in May 2025; and the annual remuneration
report, reflecting how the Directors’ remuneration
policy has been implemented during 2024 and will
be implemented in 2025.
Coca-Cola HBC AG is domiciled in Switzerland
and we have a primary listing on the London Stock
Exchange. We therefore ensure that we adhere to
UK regulations and best practice, except where
these conflict with Swiss law, which takes
precedence. We receive regular updates from our
remuneration advisers on UK best practice and
market trends, and we also ensure we are current
with pay trends in our markets, reflecting our
geographic footprint and international peers.
The Group’s remuneration philosophy
and policies continue to be designed to attract,
motivate and retain the talented people we need
to meet our strategic objectives and to give them
due recognition. The Remuneration Committee
has worked to ensure that the remuneration
policy remains fair, transparent, and competitive
in comparison with our peers, and that
remuneration helps drive our growth
strategy and sustainable performance.
Performance overview
During 2024, focus on execution of our strategic
priorities has helped to deliver continued growth.
Our ability to deliver quality growth in a range
of market conditions demonstrates the strength
of our 24/7 portfolio and bespoke capabilities.
The business remains well positioned to continue
driving growth in revenue, profit and earnings.
I am pleased to share our key financial highlights,
at a Group level.
Organic revenue growth of
13.8%
and reported revenue up 5.6%
Organic revenue per case up
10.7%
driven by targeted revenue growth management
(RGM) initiatives
Comparable EBIT
€1,192.1m
with organic EBIT growth of 12.2%
Comparable EPS growth of
9.5%
supported by strong EBIT delivery
Free cash flow
€712.6m
This strong financial performance has corresponded
with strong returns to shareholders, with a proposed
ordinary dividend of €1.03 per share, up 11%
year-on-year and representing a 45% payout.
The total shareholder return over the financial
year was c.30%, outperforming the FTSE 100
index, which had a total shareholder return of
c.15%. The share price has continued to perform
well in 2025 to the date this report was finalised.
We are proud to make a strong contribution
to developing the societies in which we operate
through employment and our wider supply chain,
as well as through supporting community projects.
Our progress is recognised by the most important
ESG benchmarks, such as being ranked as the
world’s most sustainable beverage company for
the eighth time by the Dow Jones Best-in-Class
Index1 2024, and receiving a double A rating from
CDP on climate and water, amongst others.
Charlotte J. Boyle (Chair)
Member since 2017
Chair since June 2020
Reto Francioni
Member since June 2016
Anna Diamantopoulou
Member from June 2020
until September 2024
Elizabeth Bastoni
Member since
September 2024
Activities of the Remuneration
Committee during 2024
During 2024, the key Remuneration Committee
activities were to:
• Review the remuneration policy for
senior leaders.
• Conduct extensive shareholder consultation
as part of the review of the Executive Director
remuneration policy, with recommendations
to be presented for approval at the 2025 AGM.
• Monitor the design of the Company’s
Rewards Centre of Excellence (COE).
• Review and sign off the 2023 Directors’
remuneration report.
• Review the 2024 base salary for the CEO.
• Review and approve the 2024 base salaries
for the ELT members and general managers.
• Review and approve the 2023 MIP payout and
2024 MIP measures and targets for the CEO.
• Review and approve payout levels for the
2023 MIP and 2024 MIP measures and
targets in relation to ELT members and
general managers.
• Review and approve the 2021 PSP vesting level
and 2024 PSP measures, targets and grants.
Overview
Members
All members of the Remuneration Committee
are independent NEDs. At the AGM in May 2024,
Charlotte Boyle (Chair), Reto Francioni and Anna
Diamantopoulou were re-elected for a one-year
term by the shareholders. In September 2024,
Anna Diamantopoulou retired from the Board
and the Remuneration Committee, and
Elizabeth Bastoni was appointed following
her election to the Board by the shareholders.
1. These indices were formerly known as the Dow Jones Sustainability Indices (DJSI).
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We also continue to support communities in need
in the countries where we operate. For example,
following severe flooding across Central and Eastern
Europe this quarter, we collaborated with governments
and NGOs to assist impacted communities, delivering
over 270,000 litres of beverages through a network
of local charities and municipalities.
The excellent financial and non-financial results
in 2024 are testament to the hard work of all our
people. It is the Committee’s role to ensure that
our people are rewarded for past performance
as well as appropriately incentivised to deliver
future performance, and that their dedication
and commitment are recognised and considered
in the context of our broader stakeholder group.
2024 remuneration outcomes
Base salary arrangements
During the year, the CEO received a base salary
increase of 5.5%, effective 1 May 2024. This was
below the average salary increase awarded across
the Group (8.3%).
Incentive outcomes
Management Incentive Plan (MIP)
The formulaic MIP outcome for the CEO was
75% of the maximum opportunity. The outcome
reflects record levels of revenue, comparable EBIT
and free cash flow, which the 2024 MIP was based
on. Even with these record levels of growth, due to
the stretching targets set by the Committee, both
the revenue and comparable EBIT measures were
not at a maximum payout. The achievements
were between target and maximum.
Performance Share Plan (PSP)
Performance against the targets over the period 2022
to 2024 resulted in a formulaic vesting level of 77%
of the maximum PSP award granted in 2022. Following
an assessment against the stretching targets set,
comparable EPS was between threshold and
maximum, ROIC was at maximum, and reduction of
CO2 emissions was between threshold and maximum.
As reported in the 2023 annual report, and in line
with the approach to the 2021 PSP award, we
received notification from the third party (IFEU,
an institute preferred by TCCC as the source on
material emissions factor change), and in line with
GHG Protocol guidance a recalculation of the base
year 2017 onwards was triggered in 2023, and again
in 2024, to reflect the annual release of emissions
factors. Given the methodology change to the
base year used for emissions data, which directly
impacts future years, the Committee considered
it appropriate for this change to flow through to
the targets attached to the 2022 PSP award.
In line with the 2021 PSP award, in doing so, the
Committee is confident that the revised targets were
not materially easier or harder to achieve than the
original targets. Further details are set out on page 241.
At the end of the performance period, looking at
wider business performance and the experience of
stakeholders more broadly, detail of which is provided
earlier on in this letter and elsewhere in the 2024
Integrated Annual Report, the Committee
considered the formulaic outcome appropriately
reflected the underlying performance of the Group.
At the point when the 2022 PSP award was granted,
our share price had been impacted by the outbreak
of the Russia-Ukraine war. Whilst the overall market
was impacted by the onset of the Russia-Ukraine
war, the impact for Coca-Cola HBC was more
pronounced given the operations that we had in
both countries. Over the last three years, the CEO
and senior management have expertly handled the
challenges arising from the conflict and worked
hard to deliver a performance which is reflected in
the share price recovery in a challenging economic
environment. This performance includes not only
managing the Group’s operations in both affected
countries, but also ensuring that affected
colleagues were appropriately supported in
such challenging markets. The share price did
not follow the typical ‘V-shape’ recovery that is
often associated with ‘windfall gains’, and, instead,
has recovered over time reflecting sustained
performance due to management actions and
the record results being delivered by the Group.
Reflecting on the performance of the executive
team and across the wider group (with our
long-term incentive arrangements applying
to over 60 individuals within the group) the
Committee determined it was not appropriate to
make any adjustment to the vesting of this award.
Review of the remuneration policy
As indicated in the 2023 Directors’ remuneration
report, the core focus for the Committee this year
has been to undertake a detailed review of the
remuneration policy that applies to our senior leaders,
including the CEO. The intention was to perform
a fundamental review to ensure that we have the
appropriate remuneration framework for the next
period and consistency in implementation. The
key objectives of this review were to ensure that
the remuneration policy continues to support the
delivery of the Group’s strategy and is market aligned,
and that the overall remuneration quantum supports
the retention and recruitment of best-in-class
leadership, providing appropriate motivation
and retention for the senior management team.
The Committee also reflected on:
• the performance of the business since Zoran
Bogdanovic became CEO, over which time
there has been:
• strong revenue growth (c.61.5% growth in net
sales revenue between 2018 and 2024);
• robust profitability (record comparable EBIT
of €1,192.1 million in 2024 and c. 75% growth
between 2018 and 2024);
• since 2021 we are the #1 contributor to
incremental value creation for our retail
customers within fast-moving consumer
goods (FMCG) in Europe, according to Nielsen;
• successful acquisitions of business in Egypt and
Finlandia, our snack business Bambi and super
premium brand Three Cents. Continued
cooperation with premium spirits brand owners
and expansion into the coffee category with
Costa Coffee and Caffè Vergnano;
• significant progress towards our Mission 2025
targets and NetZeroby40 goal;
• strong shareholder returns (refer to graph on
page 245); and
• for the 8th time CCHBC was ranked as the most
sustainable beverage company in the Dow
Jones Best-in-Class Indices (the Dow Jones
Sustainability Indices) issued by S&P Global,
in the top 1% of the S&P Global Sustainability
Yearbook 2025, and recognised by the double-A
rating from CDP.
• an increasingly competitive global talent market
– we recruit from a global talent market including
from within the global bottling network and
across the global FMCG industry. Recruitment
is predominantly from companies with a
European HQ, but also includes globally mobile
executives who can be positioned across Europe
or North America. It is critical that remuneration
arrangements incentivise our senior leaders and
support our ‘pay-for-performance’ culture.
Zoran Bogdanovic appointed
CEO in December 2017 and
joined the Board in June 2018
Zoran Bogdanovic appointed
CEO in December 2017 and
joined the Board in June 2018
Escalation
Ukraine–
Russia war
Covid outbreak
Net Sales Revenue
growth 2018–2024
~61.5%
Focused execution delivered strong organic growth
Total Group growth rate (organic %)
Net Sales Revenue (NSR)
Long-term resilient profitability with record EBIT
Comparable EBIT (€m) and comparable basic EPS
growth (%)
10
20
5
-5
15
0
-10
3.0%
5.9% 6.0% 3.7%
-8.5%
20.6%
14.2%
16.9%
13.8%
2016
2017
2018
2019
2020
2021
2022
2023
2024
12%
27%
6%
10%
-17%
34%
8%
22%
9%
1,192
518
621
681
759
672
831
930
1,084
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Total maximum compensation2
FMCG Peer Group1
The FMCG peer group has a market capitalisation between lower quartile and upper quartile of
€9.4 billion to €28.2 billion; median €13.0 billion; CCHBC €12.0 billion.
1. The FMCG peer group consists of: Royal Unibrew, Remy Cointreau, Chocoladefabriken Lindt & Spruengli, Davide Campari Milano, Beiersdorf,
Carlsberg, Henkel AG & Co, Barry Callebaut, JDE Peets, Molson Coors, Coca-Cola Europacific Partners and Kellanova.
2. The analysis in the charts is based on salary, maximum bonus, and maximum LTIP opportunities.
0
5
10
15
20
Upper Quartile
€11.9m
Median
€8.2m
Europe
UK
US
Total maximum compensation2
FTSE 100 Peer Group
Upper Quartile
€10.1m
Median
€6.7m
Lower Quartile
€5.2m
Inter-quartile
CCHBC
€5.5m
Proposed
€6.8m
CCHBC
€5.5m
Lower Quartile
€3.8m
CCHBC
Proposed
€6.8m
Directors’ remuneration report continued
• the level of shareholder support on the
remuneration resolutions at the AGM in the
last four years. As noted earlier, the Committee
wants to ensure that the overall remuneration
structure and opportunity is fit for purpose
and does not require adjustments particularly
reflecting feedback from some shareholders.
Since that time, the remuneration package
of the CEO has not materially changed
The key findings from the review of the
remuneration policy were:
• The remuneration structure is broadly fit for
purpose and supports the delivery of the Group’s
strategy and strong performance philosophy.
The annual bonus ensures a strong focus from the
executives on key measures of operational success
over the short term, whilst the PSP is based on
three-year performance targets aligned with our
long-term plan and ensures that the executives
are focused on delivering stretched performance
over the long term for our shareholders.
• The remuneration structure is well aligned
with our European peers and the performance-
weighted structure is aligned with the Company’s
high performance culture. Whilst it is noted that
our US peers operate a hybrid long-term incentive
structure, the Committee did not feel that such a
structure would be appropriate for CCHBC at this
stage in its lifecycle and wanted to retain a pay-for-
performance culture amongst senior leaders.
• From a structural perspective, minimal changes
are therefore proposed. Minor changes are
proposed to the deferral and shareholding
requirements to ensure that the package
reflects emerging market practice and the
significant shareholding of our CEO.
• The review confirmed that the current maximum
remuneration opportunity for the CEO is below
the desired positioning for the calibre of our
CEO relative to i) FTSE 100 peers; ii) FMCG
peers1; and iii) his predecessor. Supporting data
is provided on the following pages. Reflecting
on this, the Committee proposes to make
some adjustments to the CEO’s maximum
compensation opportunity, delivered through
both a policy and an implementation adjustment,
reflecting that it is below the median and at the
lower end of the inter-quartile range compared
to peers.
The proposals are as follows:
• CEO’s base salary increases by 15% to
€1,083k. This adjustment recognises the CEO’s
strong performance in role and ensures that
the remuneration package is reflective of the
size and scale of the role at CCHBC relative to
both FTSE-listed and industry peers. The CEO’s
base salary will be more closely aligned with FTSE
100 market practice while remaining towards
the lower end of the FMCG peer group.
• MIP maximum opportunity increase to 200%
of salary (from 140%). This change aligns our
bonus structure more closely with both FTSE
100 and global FMCG peer group benchmarks.
This change also provides appropriate headroom
in the incentive opportunity for senior leaders
where, in some cases, the overall opportunity has
fallen below market competitive levels. It is also
noted that since Zoran Bogdanovic becoming
CEO in 2017, the bonus opportunity has only
increased once and only marginally (from 130%
to 140% of salary). It’s important to highlight
that the bonus will continue to be subject to
stretching performance targets, ensuring
alignment with shareholder interests.
• Shareholding requirements and MIP
deferral. Going forward, the Committee will
remove the requirement for deferral of 50%
of any MIP award into shares so long as the
in-employment shareholding requirement is
met by the CEO. To further strengthen the link
between Executive Director remuneration and
shareholders, the Committee will increase the
in-employment shareholding requirement to
450% of base salary, up from 300%.
This change reinforces our commitment to
aligning executives with the long-term success
of CCHBC; is in line with the exceptional limit
under the PSP; and is positioned around the upper
quartile of the FTSE 100. The CEO currently has
a shareholding of 1,353% and is therefore already
fully aligned with shareholder interests. The CEO’s
incentive plans have malus and clawback clauses
applicable to variable pay, which have now been
centralised in a formal policy outlining the
circumstances and process of application,
see more on page 234.
When considering quantum, the Committee used
benchmarking as a reference point to assess the
competitiveness of the package both from a FTSE
perspective and from a global FMCG peer group
perspective. See below: the positioning of total
maximum compensation opportunity under the
current and proposed packages against these two
peer groups, which shows that against the FTSE 100
the proposed total package is broadly median and
remains below median against the FMCG peer group.
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Directors’ remuneration report continued
We conducted an extensive consultation exercise
with shareholders during the Autumn, engaging
our top 50 shareholders representing 74% of our
share capital, as well as with the major proxy
advisory bodies. This followed other extensive
shareholder engagement in recent years on
remuneration, meaning that we have consulted
with a number of our top shareholders six times in
the last four years. The Committee therefore has
a well-rounded picture of shareholder views on
remuneration and is grateful to our shareholders
for their willingness to engage.
Shareholders have been largely supportive
of the changes we are proposing.
• Shareholders recognised the strong strategic
progress and financial performance of
the Company, combined with the growing
scale and complexity of the business
and understood the need to reassess
CEO remuneration.
• In discussing the increase in salary and the
increase in the MIP quantum, shareholders
and advisors understood the need to reset
given the CEO was an internal candidate,
and on promotion to CEO in 2017 was
brought in at a remuneration level below his
predecessor. Some asked if the increase was
sufficient. Others asked if the Committee
had considered phasing the increases. We
confirmed we had considered this but believe
that the increases being proposed are fair and
appropriate taking into account the context
set out earlier in this letter, including company
and individual performance. The Committee
is also cognisant of market positioning of
remuneration compared to the appropriate
peer group benchmarks.
• Generally, shareholders understood the
proposed changes to deferral once the
shareholding guidelines have been met.
Some suggested a preference for the level
to be reduced rather than removed once the
shareholding requirement had been met.
The Committee has considered this but is
comfortable with the proposed approach
given: i) the material shareholding of the
CEO currently over 1350% of salary built
up over long tenure at the Company; ii)
the material increase to the shareholding
guidelines which sets it at the upper quartile
of FTSE 100 practice; and iii) the fact that the
CEO will continue to build his shareholding
through the PSP. The Committee felt that the
proposed approach strikes a balance of being
aligned with shareholder interests; whilst
recognising the specific circumstances of the
CEO’s long service record at the Company
and resulting existing large shareholding.
• With regards to the proposed change
in deferral, some investors asked the
Committee for more detail on the Company’s
malus and clawback provisions. In response
to the feedback, and to provide additional
comfort, we have centralised existing malus
and clawback plan clauses into a single policy
which provides clarity on the situations in
which the provisions would apply and the
steps for application.
Reflecting on all the above, the Committee
believes that the proposed changes are in
the best interest of the Company and its
shareholders whilst remaining in line with
market practice. As set out earlier, the
Committee has used this as an opportunity
to reset pay and ensure it is fit-for-purpose for
2025. It is the Committee’s current intention
that salary increases of the CEO will be no more
than the average wider workforce rate in the
coming year and remains committed to
consultation with its shareholders on
remuneration matters.
Shareholder engagement
Implementation of the policy in 2025
The resulting operation of the policy for 2025 for
the CEO will be as follows:
Element
Implementation for 2025
Base
salary
• Increase from €942k to €1,083k (+15%)
MIP
• Maximum opportunity increased from 140%
to 200% of base salary
• Performance metrics: revenue (40%); EBIT
(40%); free cash flow (20%) and an individual
performance multiplier (no change)
PSP
• 2025 PSP award of 330% of base salary
(no change)
• Performance metrics: EPS (42.5%); ROIC
(42.5%); and CO2 emissions reduction (15%)
(no change)
• Three-year performance period followed by
a two-year holding period
Further details of the implementation for 2025 can
be found on page 243. As always, the Committee
has set appropriately stretching targets taking into
account the business plan, market expectations and
the wider external market. In line with previous years,
the MIP and PSP will only pay-out at maximum for
exceptional performance across all measures.
Our employees
We have worked to embed our Culture Manifesto
across the company. In 2024, we have focused on
building understanding and to bring our values to life.
To ensure that we live our behaviours day by day,
they are integrated into employee performance
reviews. In 2024 we progressed our agenda to
transform our employees’ digital experience,
including managing our annual increases and
bonuses process through a new digital platform.
We continue to focus on the wider workforce and
specifically front line workers and ensuring their pay is
competitive. Our people’s wellbeing remains a priority
as we reinforced this commitment in 2024 through
dedicated sessions in local languages across our
regions, highlighting our Employee Assistance
Programme (EAP), which is available to more than
26,600 employees. The positive impact of the various
initiatives was evident in the sustainable engagement
survey results which led to an all time high of 88% and
2pp higher than Perceptyx Global Top Decimile Norm.
As the Director responsible for Workforce
Engagement, I attend the work councils’ meetings
to gather insights from workforce representatives
across the Company. As in previous years, I interacted
directly with the representatives to get their wider
insights, which I took back to the Committee for
discussion and to share with the Board.
As noted above, the review of executive pay did not
solely focus on the CEO, but also focussed on the pay
of the senior management team. Whilst the overall
framework for this group is in line with the CEO and
considered fit-for-purpose, a number of changes are
being implemented to ensure that the overall offering
remains well aligned to the Group strategy and
culture, to ensure greater consistency internally,
and to ensure the overall reward framework remains
competitive against external peers. Changes have
included: i) greater consistency of salary ranges
between different business units; ii) the individual
element of the bonus being based on both the ‘what’
and the ‘how’ to ensure that not only good results are
incentivised and rewarded for, but also how those
results are reached; and iii) greater consistency of
long-term incentive award levels.
As we go into 2025, the focus will move on to the wider
workforce reward offering and overall employee value
proposition at CCHBC to ensure our colleagues are
appropriately rewarded for their performance and are
appropriately paid reflecting emerging market trends.
Conclusion
The changes we propose and the decisions related
to the implementation of the policy in 2024 reflect
significant work and engagement and have been
considered carefully by the Committee in the context
of the company’s overall performance. I would like
to thank all our employees for their contributions to
delivering this performance and to our shareholders
for their time and engagement. I hope you will support
our remuneration-related resolutions at the AGM.
Charlotte J. Boyle
Committee Chair
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CEO share ownership
• Shareholding guidelines
• Support the alignment with shareholder interests, ensuring sustainable performance:
• The CEO is required to hold shares in the Company equal in value to 450% of annual base salary within a five-year
period and there is a post-employment shareholding requirement
Remuneration throughout the organisation – a snapshot
CEO remuneration
Salary and other benefits
25.3%
Retirement benefits
2.1%
Annual bonus – MIP
14.5%
Performance Shares – PSP
58.1%
Fixed remuneration
27%
Variable remuneration
73%
CEO actual holding 13.5 x salary
Guidance
Additional holding
Reward strategy and objective
The Group’s remuneration philosophy aims to attract, retain and motivate high-performing, agile employees with a
growth mindset. Rewards are tied to individual contributions and the Company’s success.
Variable pay forms a key part of top managers’ remuneration, linked to business objectives aligned with our growth
strategy and shareholder value. Equity-related long-term incentives ensure the interests of senior leaders align with
those of shareholders.
Our remuneration plans are cost-effective, market-aligned and performance-driven, with shareholder feedback
shaping policy and programmes.
Attracting
Finding the people we
want and need
Recognising
Adopting behaviours
that produce exceptional
performance
Motivating
Achieving business,
financial and
non‑financial targets
Retaining
Fostering an
environment that
continues to engage
our people
4.5
9.0
Directors’ remuneration report continued
Remuneration at a glance
Performance-based pay in 2024
Performance measure
Incentive plan
Achievement as a % of max
Net sales revenue
MIP
58%
Comparable EBIT
MIP
78%
Free cash flow
MIP
100%
Comparable EPS
PSP
54%
ROIC
PSP
100%
Reduction of CO₂ emissions
PSP
77%
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How we implement our reward strategy
The chart below illustrates how we put our reward strategy into practice, with the different remuneration arrangements that apply to different employee groups.
We regularly review our reward strategy to ensure it remains relevant and effective in meeting the needs of our employees, especially our frontline workers.
Chief Executive Officer and
Executive Leadership Team
Chief Executive Officer, Executive
Leadership Team and selected
senior management
Selected middle and senior
management
All management
All employees
Shareholding guidelines
Support the alignment with
shareholder interests ensuring
sustainable performance: CEO –
required to hold shares in the
Company equal in value to 450% of
annual base salary within a five-year
period and a post-employment
shareholding requirement that
applies for two years post-leaving.
ELT – required to hold shares in the
Company equal in value to 100%
of annual base salary within a
five-year period.
Performance Share Plan
Performance share awards
vest over three years. PSP
awards are cascaded down
to select senior managers,
promoting a focus on long-term
performance and aligning them
to shareholders’ interests.
Long-Term Incentive Plan
Cash long-term incentive awards
vest over three years. LTIP awards
are cascaded down to select middle
and senior management to reinforce
long-term performance and ensure
retention of our talents.
Management Incentive Plan
Employees may be eligible to receive
an award under the annual bonus
scheme that promotes a high-
performance culture. Performance
conditions are bespoke to each role
and business unit.
Employee Share Purchase Plan
(dependent on country practice)
The Employee Share Purchase Plan
(ESPP) encourages share ownership
and aligns the interests of our
employees with those
of shareholders.
Fixed pay and benefits
(base salary, retirement
and other benefits – dependent
on country practice)
Base salaries may reflect the
market value of each role as well
as the individual’s performance
and potential. Retirement and
other benefits are subject to
local market practice.
Note: Participants in the PSP are not eligible to participate in the LTIP.
The Committee considers that the remuneration framework appropriately addresses the
following principles:
• Clarity – Our remuneration framework is clear and transparent for both Executives and shareholders.
Full details of the remuneration policy and how it is implemented is provided in this report.
• Simplicity – Our remuneration structure for Executive Directors is purposefully simple
(comprising of fixed pay, a short-term incentive and a long-term incentive), and is aligned
to the strategic priorities (both short- and long-term) of the business.
• Risk – Our remuneration policy includes a number of features to mitigate potential risks and drive
the right behaviours. These include: i) performance measures and targets that are calibrated
appropriately; ii) the Committee retaining discretion to adjust variable incentive outcomes away from
the formulaic outturn in the context of wider performance; and iii) malus and clawback provisions.
• Predictability – Our disclosure is clear to allow shareholders to understand the range of potential
values which may be earned under the remuneration arrangements. Our remuneration policy clearly
sets out relevant limits as well as an illustration of the CEO’s potential package under different
performance scenarios.
• Proportionality – We believe that our approach ensures proportionate pay outcomes that reward
for strong performance. A significant part of the CEO’s remuneration package is based on variable
pay, delivered in shares, and measured over a long-term time horizon.
• Alignment to Culture – The incentive arrangements and the performance measures used
are strongly aligned to those that the Board considers when determining the success of the
implementation of the Company’s purpose, values and strategy.
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Directors’ remuneration report continued
Remuneration arrangements for the CEO – at a glance
Year 1
Year 2
Year 3
Year 4
Year 5
Fixed pay – base salary
The CEO’s 2025 salary effective 1 May 2025 will be €1,083k.
Fixed pay – retirement benefits
The CEO participates in a defined benefit pension plan under Swiss law.
Employer contributions are 15% of annual base salary.
Normal retirement age for the CEO’s plan is 65 years. In case of early
retirement, which is possible from the age of 58, the CEO is entitled to
receive the amount accrued under the plan as a lump sum.
Fixed pay – other benefits
Other benefits include (but are not limited to) medical insurance,
housing allowance, company car/allowance, cost of living adjustment,
trip allowance, partner allowance, exchange rate protection, tax
equalisation and tax filing support and advice. Benefit levels vary
each year depending on need. These benefits align with the benefits
offered to our international expats and are considered a core part of
the Company’s offering for senior talent.
Fixed pay – ESPP
The CEO may participate in the Company’s ESPP.
As a scheme participant, the CEO has the opportunity to invest
a portion of his base salary and/or MIP payments in shares. The
Company matches employee contributions on a one‑to‑one basis up
to 3% of base salary and/or MIP payout.
Awards are subject to potential application of the malus and
clawback policy.
Variable pay – MIP
Base salary
Other benefits
MIP
Retirement
benefits
ESPP
PSP
Total
compensation
+
=
Fixed pay
Variable pay subject to performance
The table below summarises the remuneration arrangements in place for our CEO. See page 240 for total compensation figures.
Year 1
Year 2
Year 3
Year 4
Year 5
The MIP consists of a maximum annual bonus opportunity which for
2025 will be 200% of base salary.
Payout is based on business performance targets and individual
performance. As of 2025, the business performance element will
result in an outcome between 0% and 200% of the target MIP, and the
individual performance element will remain the same and result in an
outcome of up to 100%, with the overall payout as a percentage of
salary being based on the multiplication of these two figures.
Business performance will be measured based on performance
against three KPIs: revenue (40% weighting), comparable EBIT (40%
weighting) and free cash flow (20% weighting).
50% of any MIP payout will normally be deferred into shares for a further
three‑year period until the shareholding guideline is met. As the CEO has a
material shareholding of 1,353% of salary, no deferral will apply. Payments
are subject to potential application of the malus and clawback policy.
Variable pay – PSP
The PSP is an annual share award which vests after three years. For
2025, the CEO will be granted an award of 330% of salary and, vesting
will be based on performance conditions measured over a three-year
period against:
i. comparable EPS (42.5% weighting);
ii. ROIC (42.5% weighting);
iii. reduction of CO2 emissions (15% weighting).
An additional two‑year holding period will apply following vesting.
Awards are subject to potential application of the malus and
clawback policy.
Shareholding guidelines
The shareholding guidelines support the alignment with shareholders.
The CEO’s minimum shareholding guideline is set at 450% of annual
base salary, an increase from 300%, within a five-year period and a
post-employment shareholding requirement that applies for two
years post-leaving.
50% shares deferred
for three years (not
applicable if shareholding
guidelines are met)
50% cash
Three year performance period
Minimum shareholding requirements
Two year holding
period
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Remuneration policy
Introduction
The following section (pages 229 to 236) sets out
our Directors’ remuneration policy. During the
course of the last year, we undertook a detailed
review of the remuneration policy which applies to
our senior leaders, including the CEO. We have
proposed some changes to ensure that the
remuneration policy remains aligned with the
Group’s strategy, is competitive within the market
and effectively supports the attraction and
retention of the senior management team.
The amended remuneration policy will be put
to shareholder approval at our 2025 AGM.
As a Swiss‑incorporated company, we are not
required to put forward our remuneration policy for
a shareholder vote, but we intend to do so voluntarily
at least every three years (or when there are
changes). We continue to endeavour to make sure
that our disclosure complies with UK regulations,
except where these conflict with Swiss law.
Policy table – Chief Executive Officer
The Company currently has a single Executive
Director, being the CEO.
Therefore, for simplicity, this section refers
only to the CEO. This remuneration policy would,
however, apply for any new Executive Director
role, in the event that one was created during
the term of this remuneration policy.
In that case, references in this section to
the CEO should be read as being to each
Executive Director.
Fixed
Base salary
Retirement benefits
Purpose and link
to strategy
To provide a fixed level of compensation appropriate to the requirements of the role of CEO
and to support the attraction and retention of the talent able to deliver the Group’s strategy.
To provide competitive, cost-effective post-retirement benefits.
Operation
Salary is reviewed periodically, with salary changes normally effective on 1 May each year.
The following parameters are considered when reviewing the base salary level:
• the CEO’s performance, skills and responsibilities;
• economic conditions and performance trends;
• experience of the CEO;
• pay increases for other employees; and
• external comparisons based on factors such as: the industry of the business, revenue,
market capitalisation, headcount, geographical footprint, stock exchange listing (FTSE)
and other European companies.
The CEO participates in a defined benefit pension plan. However, we have adjusted the
pension scheme to be co-contributory, in line with the pension scheme for the wider Swiss
workforce, for new Executive Director appointments from 2020 onwards.
Normal retirement age for the CEO’s plan is 65 years. In case of early retirement, which is
possible from the age of 58, the CEO is entitled to receive the amount accrued under the
plan as a lump sum.
For any new Executive Directors, retirement benefits may be in the form of a defined benefit
pension plan, contributions into a defined contribution pension scheme, a cash allowance or
a combination thereof.
Maximum
opportunity
Whilst there is no maximum salary level, any increases awarded to the CEO will normally be
broadly aligned with the broader employee population.
The salary increase made to the CEO may exceed the average salary increase under certain
circumstances at the Remuneration Committee’s discretion. These circumstances may
include: business and individual performance; material changes to the business; internal
promotions; accrual of experience; changes to the role; or other factors.
The contributions to the pension plan are calculated as a percentage of annual base salary
(excluding any incentive payments or other allowance/benefits provided) based on age
brackets as defined by Federal Swiss legislation.
This percentage is currently 15% of base salary and increases to 18% above age 55.
For any new Executive Directors, the pension level will take into account that available to
other employees in the country where they are employed.
Performance
metrics
Individual and business performance are key factors when determining any base salary
changes. The annual base salary for the Chief Executive Officer is set out on page 240.
None.
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Fixed continued
Other benefits
ESPP
Purpose and
link to strategy
To provide benefits to the CEO which are consistent with market practice.
The ESPP is an Employee Share Purchase Plan, encouraging broader share ownership,
and is intended to align the interests of employees including the CEO with those of
the shareholders.
Operation
Benefit provisions are reviewed by the Remuneration Committee, which has the discretion
to recommend the introduction of additional benefits where appropriate.
Typical provisions for the CEO include benefits related to relocation such as housing
allowance, company car/allowance, cost of living adjustment, trip allowance, partner
allowance, exchange rate protection, tax equalisation and tax filing support and advice.
For all benefits, the Company will bear any income tax and social security contributions
arising from such payments.
This is a voluntary share purchase scheme across many of the Group’s countries.
The CEO as a scheme participant has the opportunity to invest from 1% to 15% of his
base salary and/or MIP payout to purchase the Company’s shares by contributing to the
plan on a monthly basis.
The Company matches the CEO’s contributions on a one-to-one basis up to 3% of the
employee’s base salary and/or MIP payout. Matching contributions are used to purchase
shares one year after the purchase of shares by employees. Matching shares are
immediately vested.
Dividends received in respect of shares held under the ESPP are used to purchase additional
shares and are immediately vested. The CEO is eligible to participate in the ESPP operated
by the Company on the same basis as other employees.
The malus and clawback policy applies. Further details may be found in the Additional notes
to the Executive Director’s remuneration policy table on page 234.
Maximum
opportunity
There is no defined maximum as the cost to the Company of providing such benefits will
vary from year to year.
Maximum investment is 15% of gross base salary and MIP payout. The Company matches
contributions up to 3% of gross base salary and MIP payout. Matching contributions are used
to purchase shares one year after the matching. Matching shares are immediately vested.
Performance
metrics
None.
The value is directly linked to the share price performance. It is therefore not affected by
other performance criteria.
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Variable pay
MIP
Purpose and
link to strategy
To support profitable growth and reward annually for contribution to business
performance. The plan aims to promote a high-performance culture with stretching
business and individual targets linked to our key strategies.
Maximum
opportunity
The CEO’s maximum MIP opportunity is set at 200% of annual base salary.
Threshold, target and maximum achievement for the business performance
element for 2025 will result in an outcome as follows:
• Threshold: 0% of base salary
• Target: 100% of base salary
• Maximum: 200% of base salary
Operation
Annual bonus awarded under the MIP is normally subject to business and individual
performance metrics and is non-pensionable.
The CEO’s individual objectives are regularly reviewed to ensure relevance to
business strategy and are set and approved by the Chair of the Remuneration
Committee and Chair of the Board of Directors.
Stretching targets for business performance are set based on the business plan
of the Group as approved by the Board of Directors. The Remuneration Committee
will determine the business performance metrics and weightings on an annual basis.
Performance against these targets and bonus outcomes is assessed by the
Remuneration Committee, which may recommend an adjustment to the payout
level where it considers the overall performance of the Company or the individual’s
contribution warrants a higher or lower outcome.
The malus and clawback policy applies. Further details may be found in the Additional
notes to the Executive Director’s remuneration policy table on page 234.
Performance
metrics
The MIP awards are normally based on business metrics linked to our business
strategy. These may be a mix of financial and non-financial measures. These may
include, but are not limited to, measures of revenue, profit, profit margins and
operating efficiencies. The weighting of individual performance metrics shall
normally be determined by the Remuneration Committee around the beginning
of the MIP performance period.
Details related to the key performance indicators can be found in the Annual Report
on Remuneration on page 240.
Deferral of MIP
50% of any MIP award is to be deferred into shares for a further three-year period
where the shareholding guideline has not been met. Where the shareholding guideline
has been met, no deferral will apply. Any deferred shares will be made available after
the three‑year deferral period which commences on the first day of the fiscal year
in which the deferred share award is made.
Deferred shares may be subject to malus and clawback to the extent deemed
appropriate by the Remuneration Committee, in line the malus and clawback policy.
Dividend equivalents may be payable on deferred shares.
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Variable pay continued
PSP
Purpose and
link to strategy
To align the CEO’s interests with the interests of shareholders, and increase the ability
of the Group to attract and reward individuals with exceptional skills.
Holding
period
Any vested award (net of shares sold to cover tax liability) is normally subject to
a further two‑year holding period following the end of the three-year performance
period. During this two-year period, these beneficially owned shares are subject to
a no‑sale commitment. Any shares subject to the holding period count towards
the shareholding requirement.
Operation
The CEO is granted conditional awards of shares (or through a mechanism of
equivalent value) which vest after three years, subject to the achievement of
performance metrics and continued service. Grants typically take place annually.
Performance metrics and the associated targets are typically reviewed and
determined around the beginning of each performance period to ensure that they
support the long‑term strategy and objectives of the Group and are aligned with
shareholders’ interests. Dividends may be paid on vested shares where the
performance metrics are achieved at the end of the three‑year period.
The malus and clawback policy applies. Further details may be found in the Additional
notes to the Executive Director’s remuneration policy table on page 234.
Adjustments
In the event of an equity restructuring, the Remuneration Committee may make
an equitable adjustment to the terms of the performance share award by adjusting
the number and kind of shares which have been granted or may be granted and/or
making provision for payment of cash in respect of any outstanding performance
share award.
Where exceptional circumstances exist such that the original targets no longer meet
the intent at the time of grant, the Committee will have the discretion to adjust targets
in a manner that is considered to be appropriate. Where any such adjustment is made,
the details will be fully disclosed in the following remuneration report.
Maximum
opportunity
Awards (normally) have a face value up to 330% of base salary.
In exceptional circumstances only, the Remuneration Committee has the discretion
to grant awards up to 450% of base salary.
Change of
control
In the event of change of control, unvested performance share awards held by
participants vest immediately on a pro-rated basis if the Remuneration Committee
determines that the performance metrics have been satisfied or would have been
likely to be satisfied at the end of the performance period, unless the Remuneration
Committee determines that substitute performance share awards may be used
in place of the previous awards. For vested shares subject to the additional holding
period, the holding period will lapse and the participants are no longer subject to the
no‑sale commitment.
Performance
metrics
Vesting of awards is subject to the performance metrics. For each award, the
Remuneration Committee will determine the applicable metrics, weightings
and target calibration making up the performance condition. The performance
conditions applying to awards may be based on financial (including share price)
measures and/or non-financial measures. The majority of the award will normally
be based on financial measures.
Following the end of the performance period, the Remuneration Committee will
determine the extent to which performance metrics have been met and, in turn,
the level of vesting. Participants may receive vested awards in the form of shares
or, in exceptional circumstances, a cash equivalent.
For each performance metric, achieving threshold performance results in vesting of
25% of the award and maximum performance results in vesting of 100% of the award.
Performance share awards will lapse if the Remuneration Committee determines that
the performance metrics have not been met. The Remuneration Committee will have
discretion to adjust the payout level where it considers the overall performance of the
Company warrants a higher or lower outcome.
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Maximum
performance +50%
share price growth
Maximum
Target
Minimum
11%
2%
2%
3%
8%
9%
22%
37%
9,641
7,853
5,306
2,046
13%
11%
21%
16%
53%
39%
28%
20%
46%
40%
19%
Base salary
PSP
PSP – share price appreciation
Cash and non-cash benefits
Pension
MIP
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
10,000
9,000
Additional notes to the Executive Director’s remuneration policy table
Chief Executive Officer’s remuneration policy illustration
The graph below provides estimates of the potential reward opportunity for the CEO and the split between
the different elements of remuneration under three different performance scenarios: ‘Minimum’,
‘Target’ and ‘Maximum’. In line with the reporting regulations, a scenario assuming 50% share price
growth over the three‑year PSP performance period is also shown below. The assumptions used for
these charts are set out in the table below (€000s).
Minimum performance
Fixed remuneration only, i.e. base salary, pension and other benefits
(including ESPP participation)
No payout under the MIP or PSP
Target performance
Fixed remuneration
MIP payout of 50% of maximum
PSP vesting at 60% of maximum
Maximum performance
Fixed remuneration
MIP payout of 200% of base salary
PSP vesting at 330% of base salary
Maximum performance +50%
share price growth
Fixed remuneration
MIP payout of 200% of base salary
PSP vesting at 330% of base salary
50% assumed share price growth over three‑year PSP
performance period
Other than in the ‘Maximum performance +50% share price growth’ scenario, no share price growth or
dividend assumptions have been included in the charts above.
Component
Minimum
(€000s)
Target
(€000s)
Maximum
(€000s)
Maximum
performance
+ 50% share
price growth
(€000s)
Fixed
Base salary1
1,083
1,083
1,083
1,083
Pension
163
163
163
163
Cash and non-cash benefits2
800
832
865
865
Variable MIP
–
1,083
2,167
2,167
PSP
–
2,145
3,575
3,575
PSP – 50% share price
Appreciation
–
–
–
1.788
Total
2,046
5,306
7,853
9,641
1. Represents the annual base salary effective May 2025.
2. ESPP employer contributions may vary depending on the MIP payout provided that the CEO decides to contribute a portion of the MIP
towards the ESPP. The figures provided have been calculated on the basis of the applicable MIP payout and the CEO deciding to contribute
3% to the ESPP.
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Employee Stock Option Plan (ESOP)
The ESOP was replaced by the PSP in 2015,
with the final grant under the ESOP occurring
in December 2014. Awards under the ESOP vest
in one-third increments each year over three years
and can be exercised for up to 10 years from the
date of the award. The Remuneration Committee
does not intend to issue further awards under
the ESOP. All stock option awards held by the
CEO at the end of the previous year were fully
exercised in 2024.
Malus and clawback policy
The CEO’s incentive plans have malus and
clawback clauses applicable to variable pay,
which have now been centralised in a formal
policy outlining the circumstances and process
of application. The MIP, PSP and ESPP plans
include malus provisions which give the
Remuneration Committee and/or the Board
discretion to judge that an award should
lapse wholly or partly in the event of a material
misstatement of the financial results and/or
misconduct, gross negligence, significant
reputational risk and corporate failure.
The Remuneration Committee and/or Board
also has the discretion to determine that clawback
should be applied to awards under the MIP, PSP,
ESOP and ESPP plans for the CEO. Clawback
can potentially be applied to payments or vested
awards for up to a two-year period following
payment or vesting. Malus and clawback will
be applied in accordance with Swiss law.
Shareholding guidelines
To strengthen the link with shareholders’ interests,
the CEO is required to hold Company shares
equivalent to 450% of annual base salary, an
increase from 300% in the previous year, subject
to approval at the 2025 AGM. The CEO has five
years from appointment to accumulate shares to
meet this requirement, with shares acquired from
PSP awards counting towards fulfilment.
Members of the ELT are required to hold Company
shares equivalent to 100% of annual base salary.
The Committee continues to review the potential
need for stronger shareholding requirements in
the long term and this is subject to further review
in the future.
The Policy contains a post-employment
shareholding requirement whereby the CEO would,
if leaving the Company, be required to hold shares
equivalent to 200% of base salary (or actual
shareholding at termination date if lower than this)
for a period of two years after leaving employment.
Remuneration arrangements across the Group
The remuneration approach for the CEO, the
members of the ELT and senior management
is similar. The CEO’s total remuneration has
a significantly higher proportion of variable pay
in comparison with the rest of our employees.
The CEO’s remuneration will increase or decrease
in line with business performance, aligning it with
shareholders’ interests.
The structure of the remuneration package for
the wider employee population takes into account
local market practice and is intended to attract
and retain the right talent, be competitive and
remunerate employees for promoting a growth
mindset while contributing to the Group’s
performance. As set out in the Remuneration
Committee Chair’s letter, over the next year
there will be a review of the wider workforce
reward offering and overall employee value
proposition at CCHBC to ensure our colleagues
are appropriately rewarded for their performance
and are appropriately paid reflecting emerging
market trends.
Policy table – non-Executive Directors
Base fees
Purpose and
link to strategy
To provide a fixed level of compensation appropriate to the requirements of the
role of non-Executive Director and to attract and retain high-quality non-Executive
Directors with the right talent, values and skills necessary to provide oversight and
support to management to grow the business, support the Company’s strategic
framework and maximise shareholder value.
Operation
Non‑Executive Directors’ fees are set at a level that will not call into question the
objectivity of the Board. When considering market levels, comparable companies
typically include those in the FTSE index with similar positioning as the Company,
other Swiss companies with similar market capitalisation and/or revenues, and
other relevant European listed companies. Fees can be paid in cash or shares.
Currently fees are paid fully in cash.
Maximum
opportunity
Fee levels for non-Executive Directors include an annual fixed fee plus additional
fees for membership of Board committees when applicable. The fees as at
1 January 2025 are set out below:
• Base Chair’s fee: €150,000
• Base non-Executive Director’s fee: €82,000
• Senior Independent Director’s fee: €18,000
• Audit and Risk Committee Chair fee: €32,000
• Audit and Risk Committee member fee: €16,000
• Remuneration, Nomination and Social Responsibility Committee Chair
fees: €13,000
• Remuneration, Nomination and Social Responsibility Committee member
fees: €6,500
Fee levels are subject to periodic review and approval by the Chair of the Board and
the CEO. Additional fees may be payable for other responsibilities or increased
time commitments on a one-off or on-going basis.
Other benefits
Non-Executive Directors do not receive any benefits in cash or in kind. They are
entitled to reimbursement of all reasonable expenses incurred in the interests of
the Group (including any tax thereon).
Variable
remuneration
Non-Executive Directors do not receive any form of variable compensation.
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Legacy arrangements
Notwithstanding the restrictions laid out
in the Policy, where the Company has made
a commitment to a Director which:
• was in accordance with the prevailing
remuneration policy at the time that the
commitment was made; and/or
• was made before the Director became a
Director and, in the opinion of the Committee,
the payment was not in consideration for the
individual becoming a Director of the Group
the Company will continue to give effect to it,
even if it is inconsistent with the Remuneration
Policy of the which is in effect at that time.
Policy on recruitment/appointment
Executive Directors
Annual base salary arrangements for the
appointment of an Executive Director will be set
considering market relevance, skills, experience,
internal comparisons and cost. The Remuneration
Committee may recommend an appropriate initial
annual base salary below relevant market levels.
In such situations, the Remuneration Committee
may make a recommendation to realign the level
of base salary in the following years.
The maximum level of variable remuneration which
may be granted to a new Executive Director will be
650% of salary, in line with the limits set out in the
policy table. Different performance measures may
be set initially taking into consideration the point
in the financial year that a new Executive Director
joins. The above limits do not include the value
of any buyout arrangements.
Benefits will be provided in line with the Group’s
policy for other employees. If an Executive
Director is required to relocate, benefits or
allowances may be provided as per the Group’s
international transfer policy which may include
transfer allowance, tax equalisation, tax advice
and support, housing, cost of living, schooling,
travel and relocation costs.
The Remuneration Committee may consider
recommending the buying out of remuneration
arrangements that an individual would forfeit
by accepting the appointment. In doing so, the
Committee will take into account all relevant
factors including any performance conditions
attached to awards, the form of award (e.g. cash
or shares) and the time horizons and will look to
make awards on a like-for-like basis where
possible. The Committee may make use
of Listing Rule 9.4.2 where appropriate.
It is expected that Executive Directors appointed
during the remuneration policy period will be
appointed on similar notice provisions to the CEO,
allowing for termination of office by either party
on six months’ notice.
Non-Executive Directors
It is expected that non-Executive Directors
appointed during the remuneration policy period
will receive the same basic fee and, as appropriate,
committee fee or fees as existing non-Executive
Directors and will be entitled to reimbursement of
all reasonable expenses incurred in the interests
of the Group.
It is expected that non-Executive Directors
appointed during the remuneration policy
period will be appointed on a one-year term
of appointment, in the same manner as existing
non-Executive Directors.
The Company does not compensate new
non-Executive Directors for any forfeited
share awards in previous employment.
Termination payments
The Swiss corporate law provisions regarding
the Compensations in Listed Companies limits
the authority of the Remuneration Committee
and the Board to determine compensation.
Limitations include the prohibition of certain
types of severance compensation.
Our governance framework ensures that the
Group uses the right channels to support reward
decisions. In the case of early termination, the
non-Executive Directors would be entitled to their
fees accrued as of the date of termination, but are
not entitled to any additional compensation. The
CEO’s employment contract does not contain any
provisions for payments on termination.
Notice periods are set for up to six months
and non-compete clauses are set for 12 months.
The notice period anticipates that up to six
months’ paid garden leave may be provided.
Similarly, up to 12 months of base salary may be
paid out in relation to the non-compete period.
In case of future terminations, payments will be
made in accordance with the termination policy
on page 236.
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Pay element
Good leaver (retirement at 55 or later/
at least 10 years’ continued service)
Good leaver (injury, disability)
Bad leaver (resignation, dismissal)
Death in service
Base salary and other benefits/
non-Executive Directors’ fees
Payment in lieu of notice is not permissible. The Company could ask the CEO to be on paid garden leave for up to six months.
ESPP
Unvested cash allocations held in the ESPP will vest upon termination.
Unvested cash allocations under the
ESPP will be forfeited.
Available ESPP shares will be transferred
to beneficiaries.
MIP
A pro‑rated payout as of the date
of retirement will be applied.
Deferred shares will continue to vest
as normal.
A pro‑rated payout as of the date
of leaving will be applied.
Deferred shares will continue to vest
as normal.
In the event of resignation or dismissal, as
per Swiss law, the CEO is entitled to a
pro‑rated MIP payout.
Any outstanding deferred shares
will lapse.
A pro‑rated payout will be applied and
will be paid immediately to beneficiaries,
based on the latest rolling estimate.
Deferred shares will continue to vest
as normal.
PSP/ESOP
All unvested options and performance
share awards will continue to vest as
normal, subject to time pro‑rating and
subject to the additional holding period.
For vested shares that are subject to the
additional holding period, they will
continue to be subject to the no‑sale
commitment until the end of the relevant
two-year period.
Under Swiss law, share awards are
considered annual compensation and,
as such, when time pro-rating is required,
the year of grant (12 months) and not
the vesting period (36 months) for time
pro-rating calculations is considered.
All unvested options and performance
share awards immediately vest to the
extent that the Remuneration
Committee determines that the
performance conditions have been met,
or are likely to be met at the end of the
three-year performance period, and are
subject to the additional holding period.
Any options that vest are exercisable
within 12 months from the date
of termination.
For vested shares that are subject to
the additional holding period, they will
continue to be subject to the no‑sale
commitment until the end of the relevant
two-year period.
All unvested options and performance
share awards will immediately lapse
without any compensation.
In the event of resignation, all vested
options must be exercised within six
months from the date of termination.
Upon dismissal, all vested options must
be exercised within 30 days from the date
of termination.
For vested shares that are subject to
the additional holding period, they will
continue to be subject to the no‑sale
commitment until the end of the relevant
two-year period.
All unvested options and performance
share awards will immediately vest
subject to time and performance
pro-rating.
Any options that vest are exercisable by the
beneficiaries within 12 months from the
date of passing.
For vested shares that are subject to the
additional holding period, the no-sale
commitment will cease immediately.
Under Swiss law, share awards are
considered annual compensation.
When time pro‑rating is required, the year
of grant (12 months) and not the vesting
period (36 months) is considered for time
pro-rating calculations.
Corporate events
In the event of an equity restructuring, the Remuneration Committee may make an
equitable adjustment to the terms of the performance share award by adjusting the number and kind of
shares that have been granted or may be granted and/or making provision for payment of cash in
respect of any outstanding performance share award.
In the event of a change of control, unvested performance share awards held by participants vest
immediately on a pro-rated basis if the Remuneration Committee determines that the performance
conditions have been satisfied or would have been likely to be satisfied at the end of the performance
period, unless the Remuneration Committee determines that substitute performance share awards may
be used in place of the previous awards.
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Directors’ remuneration report continued
Name
Title
Date
originally
appointed to
the Board of
the Company
Date
appointed to
the Board of
the Company
Unexpired term
of service
contract or
appointment as
non‑Executive
Director1
Anastassis G. David
Chair and
Non-Executive Director
27 July 2006
21 May 2024
One year
Zoran Bogdanovic
Chief Executive Officer
11 June 2018
21 May 2024
Indefinite,
terminable on six
months’ notice
Charlotte J. Boyle
Independent
Non-Executive Director
20 June 2017
21 May 2024
One year
Henrique Braun
Non-Executive Director 22 June 2021
21 May 2024
One year
William W. (Bill) Douglas III
Independent
Non-Executive Director
21 June 2016
21 May 2024
One year
Reto Francioni
Senior Independent
Non-Executive Director
21 June 2016
21 May 2014
One year
Anastasios I. Leventis
Non-Executive Director 25 June 2014
21 May 2024
One year
Christo Leventis
Non-Executive Director 25 June 2014 21 May 2024
One year
George Leventis
Non-Executive Director 17 May 2023
21 May 2024
One year
Evguenia Stoitchkova
Non-Executive Director 17 May 2023
21 May 2024
One year
Zulikat Wuraola Abiola
Independent
Non-Executive Director
21 May 2024
21 May 2024
One year
Glykeria Tsernou
Independent
Non-Executive Director
21 May 2024
21 May 2024
One year
Elizabeth Bastoni
Independent
Non-Executive Director
16 September
2024
16 September
2024
One year
1. Each non-Executive Director is appointed until the next AGM, a term of approximately one year.
The CEO’s service contract and the terms and conditions of appointment of the non‑Executive
Directors are available for inspection by the public at the registered office of the Group.
Consideration of employee views
The remuneration structure has been designed to
apply to all Group employees, not just the
Executive Directors, which is a material factor in
defining and shaping the policy and
implementation of the policy.
The Remuneration Committee does not currently
consult specifically with employees on policy for
the remuneration of the Directors. Pay movement
for the wider employment group is considered
when making pay decisions for the CEO. The
Chair of the Remuneration Committee is also the
designated non‑Executive Director for workforce
engagement. As such, she attends meetings of
our European Works Council and meets with
elected employee representatives from our
businesses in EU countries. She then reports
back to the Board on her observations and
matters raised by employees, ensuring Board
and Remuneration Committee deliberations
and decision making are fully informed.
Our engagement levels continue to
remain high at 88%.
Consideration of shareholder views
Shareholder views and the achievement
of the Group’s overall business strategies
have been taken into account in formulating
the remuneration policy. As set out in the
Remuneration Committee Chair’s letter, as part
of the Policy review we conducted an extensive
consultation exercise with shareholders, engaging
our top 50 shareholders. Further detail on the
outcome of this consultation is provided in the
Committee Chair’s letter.
In reviewing and determining remuneration,
the Remuneration Committee takes into account
the following:
• the business strategies and needs of
the Company;
• the views of shareholders on Group policies
and programmes of remuneration;
• the alignment of remuneration policy with the
principles of clarity, simplicity, risk, predictability,
proportionality and alignment with culture;
• market comparisons and the positioning of
the Group’s remuneration relative to other
comparable companies;
• input from employees regarding our
remuneration programmes;
• the need for similar, performance-related
principles for the determination of executive
remuneration and the remuneration of other
employees; and
• the need for objectivity.
Board members, the CEO and ELT members play
no part in determining their own remuneration.
The Chair of the Remuneration Committee and
the CEO are not present when the Remuneration
Committee and the Board discuss matters that
pertain to their remuneration. This ensures that
the same performance-setting principles are
applied for Executive remuneration and for other
employees in the organisation.
Service contracts
Zoran Bogdanovic, the CEO, has a service
contract with the Company with a six- month
notice period. As noted in the Termination
payments section on page 236, the CEO’s
employment contract does not include any
termination benefits, other than as mandated
by Swiss law.
The CEO is also entitled to reimbursement of all
reasonable expenses incurred in the interests of
the Company.
In accordance with the Swiss Code of Obligations,
there are no sign-on policies/provisions for the
appointment of the CEO.
The table below provides details of the current
service contracts and terms of appointment for
the CEO and other Directors.
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Directors’ remuneration report continued
Annual Report on Remuneration
Introduction
This section of the report provides detail on
how we have implemented our remuneration
policy in 2024, which, in accordance with the UK
remuneration reporting regulations and alongside
other sections of the Directors’ remuneration
report, will be subject to an advisory shareholder
vote at our 2025 Annual General Meeting.
The role of the Remuneration Committee
The main responsibilities of the Remuneration
Committee are to establish the remuneration
strategy for the Group and to approve
compensation packages for Directors and senior
management. Further, the Committee reviews
wider workforce remuneration policies at
Coca-Cola HBC and the alignment of incentives
and rewards with strategy and culture, taking
these into account when setting the remuneration
policy. The Remuneration Committee operates
under the Charter for the Committees of the
Board of the Company set forth in Annex C
to the Organisational Regulations of the
Company, available on the Group’s website at:
https://www.coca-colahellenic.com/en/about-us/
corporate-governance.
The Remuneration Committee met four times in
2024: in March, June, September and December.
Please refer to the Corporate Governance Report
on page 206 for details of the Remuneration
Committee meetings.
Advisers to the Remuneration Committee
The Chief People and Culture Officer, the Head
of Rewards and the General Counsel regularly
attend meetings of the Remuneration Committee.
While the Remuneration Committee does not
have external advisers, in 2024, it authorised
management to work with external consultancy
firm Deloitte, which provided independent advice
on ad hoc remuneration issues during the year.
These services are considered to have been
independent, objective and relevant to the
market. Deloitte also provides tax advisory,
advisory on people and culture topics and
payroll services to the Company.
The total cost in connection with Deloitte’s work
was € 111,099, invoiced on a time spent basis.
Deloitte are members of the Remuneration
Consultants Group and provide advice in line with
its Code of Business Conduct. Considering this,
and the level and nature of the service received,
the Committee remains satisfied that the advice
is objective and independent.
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Directors’ remuneration report continued
Non-Executive Directors’ remuneration for the years ended 31 December 2024 and 2023
Financial
year
Base fee1
(€)
Audit and Risk
Committee
(€)
Remuneration
Committee
(€)
Nomination
Committee
(€)
Social Responsibility
Committee
(€)
Senior
Independent Director
(€)
Social security
contributions2
(€)
Total
(€)
Anastassis G. David
FY2024
150,000
–
–
–
–
–
–
150,000
FY2023
150,000
–
–
–
–
–
–
150,000
Charlotte J. Boyle
FY2024
82,000
–
13,000
6,500
3,250
–
–
104,750
FY2023
82,000
–
13,000
6,500
–
–
–
101,500
Henrique Braun
FY2024
82,000
–
–
–
–
–
6,569
88,569
FY2023
82,000
–
–
–
–
–
6,569
88,569
Olusola (Sola) David-Borha5
FY2024
31,989
6,242
–
–
–
–
3,063
41,294
FY2023
82,000
16,000
–
–
–
–
7,850
105,850
Anna Diamantopoulou7
FY2024
58,380
–
4,628
4,628
4,628
–
4,097
76,361
FY2023
82,000
–
6,500
6,500
6,500
–
6,199
107,699
William W. (Bill) Douglas lll
FY2024
82,000
32,000
–
–
–
–
–
114,000
FY2023
82,000
32,000
–
–
–
–
–
114,000
Reto Francioni
FY2024
82,000
–
6,500
13,000
–
18,000
7,050
126,550
FY2023
82,000
–
6,500
13,000
–
18,000
7,058
126,558
Anastasios I. Leventis
FY2024
82,000
–
–
–
13,000
–
–
95,000
FY2023
82,000
–
–
–
13,000
–
–
95,000
Christo Leventis
FY2024
82,000
–
–
–
–
–
–
82,000
FY2023
82,000
–
–
–
–
–
–
82,000
Alexandra Papalexopoulou5
FY2024
31,989
6,242
–
–
–
–
–
38,231
FY2023
82,000
16,000
–
–
–
–
–
98,000
Bruno Pietracci3
FY2024
–
–
–
–
–
–
–
–
FY2023
31,033
–
–
–
2,460
–
2,683
36,176
George Pavlos Leventis4
FY2024
82,000
–
–
–
–
–
–
82,000
FY2023
51,193
–
–
–
–
–
–
51,193
Evguenia Stoitchkova4
FY2024
82,000
–
–
–
6,500
–
–
88,500
FY2023
51,193
–
–
–
4,058
–
–
55,251
Ryan Rudolph3
FY2024
–
–
–
–
–
–
–
–
FY2023
31,033
–
–
–
–
–
2,486
33,519
Elizabeth Bastoni8
FY2024
23,620
–
1,872
1,872
–
–
2,192
29,556
FY2023
–
–
–
–
–
–
–
–
Zulikat Wuraola Abiola6
FY2024
50,236
9,802
–
–
–
–
4,809
64,847
FY2023
–
–
–
–
–
–
–
–
Glykeria Tsernou6
FY2024
50,236
9,802
–
–
–
–
–
60,038
FY2023
–
–
–
–
–
–
–
–
1. Non-Executive Director fees for 2024 were in line with the fees that were revised in 2022.
2. Social security employer contributions as required by Swiss legislation.
3. Bruno Pietracci and Ryan Rudolph retired from the Board of Directors on 17 May 2023. The Group applied a pro-rated base fee from this date.
4. George Pavlos Leventis and Evguenia Stoitchkova were appointed to the Board of Directors on 17 May 2023. The Group applied a pro-rated base fee from this date.
5. Olusola (Sola) David-Borha and Alexandra Papalexopoulou retired from the Board of Directors on 16 May 2024. The Group applied a pro-rated base fee from this date.
6. Zulikat Wuraola Abiola and Glykeria Tsernou were appointed to the Board of Directors on 16 May 2024. The Group applied a pro-rated base fee from this date.
7. Anna Diamantopoulou retired from the Board of Directors on 16 September 2024. The Group applied a pro-rated base fee from this date.
8. Elizabeth Bastoni was appointed to the Board of Directors on 16 September 2024. The Group applied a pro-rated base fee from this date.
Non-Executive Directors do not participate in any of the Group’s incentive plans, nor do they receive any retirement or other taxable benefits. Fee levels in the table above were last reviewed in 2022.
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Directors’ remuneration report continued
Single figure table
Single total figure of remuneration for the CEO for the years ended 31 December 2024 and 2023.
Base pay1
€000s
Cash and
non-cash benefits2
€000s
Annual bonus3
€000s
Employee Share
Purchase Plan4
€000s
Long-term incentives5
€000s
Retirement benefits6
€000s
Total fixed remuneration
€000s
Total variable remuneration
€000s
Total single figure
€000s
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Zoran
Bogdanovic
926
875
767
678
983
950
28
26
3,936
2,817
141
148
1,834
1,701
4,947
3,793
6,781
5,494
1. Base pay includes the monthly instalments linked to the base salary for 2024 and 2023.
2. Cash and non‑cash benefits includes the value of all benefits paid during 2024. These are outlined in the ‘Cash and non‑cash benefits’ section below and include any gross‑ups for the tax benefits.
3. Annual bonus for 2024 includes the MIP payout, receivable in 2025 for the 2024 performance year. Refer to ‘MIP performance outcomes-2024’ for details.
4. ‘Employee Share Purchase Plan’ reflects the value of Company matching share contributions under the ESPP.
5. ‘Long‑term incentives’ for 2024 reflects the 2022 awards made under the Performance Share Plan and the dividend equivalent shares paid on PSP shares that will vest in early 2025. The number of shares due to vest to the CEO for the 2022 award is 108,186.
The CEO will also get 9,772 shares representing the dividend equivalents for the awarded shares for 2022, 2023 and 2024. The value reflects the number of shares multiplied by the average market price over the last three months of the financial year. The figure will be restated in next year’s
report based on the share price at vesting (as has been done for the 2021 award in the 2023 figure above). The 2022 award increased by €1,677,963 since the grant date due to the share price increase, resulting in a total value at vest of €3,935,680.
6. ‘Retirement benefits’ includes the pension plan under Swiss law. Employer contributions are 15% of annual base salary. The disclosed figure also includes risk and administration costs of €2,537.
7. No malus and clawback was operated.
Fixed pay for 2024
Base salary
In 2024, Zoran Bogdanovic’s salary was increased
to €942,000, representing an increase of 5.5%
effective May 2024. The average increase for
our employees was 8.3%.
Retirement benefits
Zoran Bogdanovic receives an annual retirement
benefit of 15% of base salary, aligning to the
retirement benefit provided under Swiss law
and based on the age brackets defined by federal
Swiss legislation. During the year, €141,382
of retirement benefit was received, inclusive
of €2,537 for risk and administration costs.
Normal retirement age for the CEO’s plan is 65
years. In case of early retirement, which is possible
from the age of 58, the CEO is entitled to receive
the amount accrued under the plan as a lump sum.
Cash and non-cash benefits
Zoran Bogdanovic received additional benefits
during 2024. These included cost of living and
foreign exchange rate adjustment (€407,242),
private medical insurance (€5,017), partner
allowance (€1,000), home trip allowance (€4,679),
tax support (€14,172), company car (€25,649),
housing allowance (€105,952), tax equalisation
(€-131,003), and the value of social security
contributions (€334,528). The Company matching
contribution relates to the ESPP (€27,769 reflecting
the maximum match of 3% under the plan).
These benefits align with the benefits offered
to our international expats and are considered
a core part of the Company’s offering for senior
talent. The benefits provided, both in nature and
quantum, are regularly benchmarked relative to
external market data.
Variable pay for 2024
2024 MIP performance outcome
The business performance element for the
2024 MIP was based on the following metrics:
• NSR, with an opportunity of 56% of salary
for maximum performance (28% of salary
for target performance).
• Comparable EBIT, with an opportunity
of 56% of salary for maximum performance
(28% of salary for target performance).
• Free cash flow, with an opportunity level
of 28% of salary for maximum performance
(14% of salary for target performance).
The outcome of the business performance
element is multiplied by the outcome for the
individual performance element.
The CEO’s individual performance metrics were
measured versus the following priorities in 2024:
Priorities
Achievement
Business
performance
Increase volume
Volume increased 2.8% versus 2023
on both a reported basis and an
organic basis
Increase organic revenue growth
Organic revenue growth: 13.8% increase
compared to prior year
Increase comparable EBIT
Comparable EBIT: 10% increase and
12.2% organic
Employee
engagement
Maintain or increase
employee engagement
Increased high sustainable engagement
index score to 88% from 86%
Sustainability
commitments
Reduction in CO2 and increase energy-
efficient coolers
Increased by 9% the number of new
energy-efficient coolers in customers’
premises, bringing the total to 60%
of coolers.
Progress of water stewardship
community projects
Number of water stewardship community
projects in water risk areas increased from
12 in 2023 to 16 in 2024
Increase in number of women
in management
Overall, women in management increased
from 41.8% to 43.5%
Increase the number who have access
to #YouthEmpowered
Over 1,119,850 young people
from 2017 to 2024 have access
to #YouthEmpowered access
versus 944,948 from 2017 to 2023
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PSP outcomes of the 2022‑24 award
The table below summarises performance against the applicable targets for PSP awards made in 2022,
which are due to vest in March 2025.
Threshold
Maximum
Actual
Total %
of max
Measure
Weighting
Target
Vesting
Target
Vesting Achievement
Vesting
Comparable EPS
42.5%
€1.38
25%
€1.62
100%
€1.47
54%
77%
ROIC
42.5%
11.5%
25%
13.4%
100%
14.0%
100%
Reduction of CO2
emissions
15.0%
3,083
25%
2,871
100%
2,937
77%
Based on performance against the targets, the formulaic outcome was a vesting level of 77%. As
stated in the Chair’s letter and reported last year, following the notification from the third party (IFEU,
an institute preferred by TCCC as the source on material emissions factor change) and in line with GHG
Protocol guidance, a re-calculation of the base year 2017 onwards was triggered in 2023 and again in
2024. In 2023 the Net Zero roadmap was re-calculated based on latest annual release of emissions
factors with an increase in absolute emissions by 250k MT and cascaded onwards. This also led to
higher emissions decline rate year on year. In early 2024, the Net Zero roadmap was re-calculated based
on latest annual release of emissions factors, which triggered an increase in absolute emissions base,
starting 2017 by 95k MT and cascaded onwards. Given the methodology change to the base year used
for emissions data, which directly impacts future years, the Committee considered it appropriate for
this technical change to flow through to the targets attached to the 2022 PSP award. In doing so, the
Committee was comfortable that the revised targets were not materially easier or harder to achieve
than the original targets. It was determined that no adjustment would be made to the formulaic outcome.
As set out in the Remuneration Committee Chair’s letter, at the time the 2022-2024 PSP award was
granted, our share price was lower as it had been affected by the onset of the Russia-Ukraine war.
Over the past three years, management have navigated the challenges brought on by the conflict,
demonstrating dedication and effort to restore the share price despite a difficult economic climate.
The share price did not follow the typical ‘V-shape’ recovery that is often associated with ‘windfall gains’,
and instead has recovered over time due to management actions in a challenging environment.
Therefore, the Committee determined that no adjustments to the award’s vesting were required.
Further detail is provided in the Remuneration Committee Chair’s letter.
The above results exclude Russia and Ukraine, but include Egypt in ROIC and EPS as at the time that
targets were set in September 2022.
Directors’ remuneration report continued
2024 MIP performance outcome – continued
The Remuneration Committee took into account the following additional achievements during 2024:
• Continued handling of the challenges posed by the Russia‑Ukraine war and the humanitarian support
to Ukraine during the war.
• Being next to our communities with support during natural disasters. The Coca-Cola HBC Foundation
response to floods donating € 1.55 million in grants to flood-relief projects in six CCHBC business units.
• Number one contributor to incremental value creation for our retail customers within fast-moving
consumer goods (FMCG) in Europe, according to Nielsen.
• Recognised in the DJSI as leading beverage company and achieved top scores in S&P Global
Sustainability Yearbook and double A from CDP.
Since the onset of the war in Ukraine, we have taken the decision to exclude Ukraine and Russia from
both the targets as well as the actuals in calculating the payout.
The CEO’s individual financial metrics were measured as follows:
Performance level (payout % of target opportunity)
Threshold (0%)
Target (100%)
Maximum (200%)
Achievement
Payout (% of base
salary)
Net sales revenue (€m)
8,172.9
8,883.5
9,594.2
9,000.7
32.6%
Comparable EBIT (€m)
737.2
801.3
865.4
837.6
43.7%
Free cash flow (€m)
351.2
381.7
419.9
443.9
28.0%
Total (business performance multiplied by individual performance)
104.3%
Total (as a % of maximum)
75%
The Remuneration Committee considered the formulaic outcome to ensure that it was both fair
and appropriate given the wider stakeholder experience described above and the wider performance
assessment as set out in the Remuneration Committee Chair’s letter earlier on in this report. The
annual bonus award in respect of the 2024 financial year for the CEO was therefore €982,506 and
104.3% of salary (75% of maximum). The Committee judged that this outcome was appropriate
and did not apply a discretionary adjustment.
As set out in our new Policy, once approved, no deferral will apply as the CEO has significantly exceeded
the shareholding guideline.
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Directors’ remuneration report continued
PSP awards – 2024-26
The PSP is the Company’s primary long-term incentive vehicle. In March 2024, the CEO was granted
a performance share award of 101,922 shares under the PSP, representing 330% of base salary at date
of grant.
The award is subject to a three‑year performance period, aligned to the Company’s financial year, with
performance measured to the end of financial year 2026 and vesting anticipated in March 2027. These
vested shares will then be subject to a further two‑year holding period, and the CEO agrees to a no-sale
commitment during this time.
The Committee was mindful of share price volatility at the time of grant and will retain the right to
appropriately apply discretion to the share award outcome at the time of vesting, if the level of vesting
and value delivered is not considered to be appropriate taking into account an assessment
of performance.
The following table sets out the details of the performance share award made to the CEO under the
PSP for 2024-26.
Type of award made
Performance share award of 101,922 shares
receivable for nil cost
Share price at date of grant (spot price)
€28.91 (£24.75)
Date of grant
13 March 2024
Performance period
1 January 2024 to 31 December 2026
Face value of the award
(The maximum number of shares that would vest if
all performance measures and targets are met,
multiplied by the share price at the date of grant)
€2,946,565
Face value of the award as a % of annual base salary
330%
Percentage that would be distributed if threshold
performance was achieved in all three PSP key
performance indicators
25% of maximum award
Percentage that would be distributed if threshold
performance was achieved only in one PSP key
performance indicator
10.625% (EPS or ROIC)/3.75% (reduction
in CO2 emissions) of maximum award
Similar to the award made in March 2023, the 2024 award was subject to comparable EPS, ROIC and
reduction in CO2 emissions targets, as outlined below, and excludes Russia, Ukraine and Finlandia.
The financial measures are key measures of business performance. The reduction in greenhouse gas
emissions metric was selected to directly align with and incentivise delivery of the Company’s ESG
objectives, particularly our ambitious goal to achieve net zero emissions across our entire value chain
by 2040. The CO2 emissions target in the PSP implicitly captures reduction in plastics, which was a key
driver of its selection as a metric. The measures and targets below were set out in the 2023 Directors’
remuneration report.
Threshold
Maximum
Measure
Description
Weighting
Target
Vesting
(% of max)
Target
Vesting
(% of max)
Comparable EPS
Calculated by dividing the
comparable net profit attributable
to the owners of the parent by the
weighted average number
of outstanding shares during
the period.
42.5%
€1.53
25%
€1.79
100%
ROIC
ROIC is the percentage return that a
company makes on its invested
capital. More specifically, we
define ROIC as the percentage
of comparable net profit excluding
net finance costs divided by the
capital employed. Capital employed
is calculated as the average of net
debt and shareholders’ equity
attributable to the owners of
the parent through the year.
42.5%
11.1%
25%
13.1%
100%
Reduction in CO2
emissions
This target supports the Company’s
ambitious goal to achieve net zero
emissions across its entire value
chain by 2040. 1.5°C scenario
approved by the SBTi and calculated
as thousand tonnes of CO2
emissions equivalent.
15%
2,986
25%
2,848
100%
The vesting schedule for PSP performance conditions is a straight line between the threshold and
maximum performance levels.
Dilution limit
Usage of shares under all share plans and executive share plans adheres to the dilution limits set by the
Investment Association Principles of Remuneration (10% for all share plans and 5% for all executive
share plans, in any 10-year period).
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Directors’ remuneration report continued
Implementation of policy in 2025
For 2025, we will be applying the new remuneration policy that it is being put forward for shareholder
approval at the 2025 AGM, as outlined on pages 223 to 225 of the Chair’s letter.
Base salary and fees
2025 salary increase levels for employees have not been finalised at the date of this report.
It is anticipated that the increase for the wider workforce will be approximately 8.3%. Following
a fundamental review of the CEO’s remuneration, the Committee decided that a 15% increase
to the CEO’s base salary was warranted. For details please refer to the Chair’s letter.
Chair and Board fees effective June 2022 were approved during the 2022 AGM. The fees as at
1 January 2025 were as follows:
Non-Executive Directors’ fees
Current
fees
Chair fee
€150,000
Basic fee
€82,000
Senior Independent Director
€18,000
Audit and Risk Committee Chair
€32,000
Audit and Risk Committee member
€16,000
Remuneration/Nomination/Social Responsibility Committee Chair
€13,000
Remuneration/Nomination/Social Responsibility Committee member
€6,500
MIP 2025
The MIP operates on a multiplicative basis. The outcome will be determined by business performance
multiplied by individual performance, which means that unless the business performance targets are
achieved, no bonus will be payable.
Business performance is measured based on performance against three KPIs: revenue (40% weighting),
comparable EBIT (40% weighting) and free cash flow (20% weighting). Targets are considered to be
commercially sensitive but will be disclosed on a retrospective basis in next year’s remuneration report.
For target performance against this element, the outcome will be 100%, rising to 200% for maximum
performance. For the CEO, individual performance will be assessed based on the achievement of defined
strategic objectives. Based on the Remuneration Committee’s assessment of performance against
these strategic objectives, the outcome for the individual performance element may be up to 100%.
The maximum opportunity level (which would reflect both a stretch level of business performance
and full achievement of the individual strategic objectives) for the CEO will be 200% of base salary.
PSP 2025-2027
The 2025 PSP award for the CEO has a normal policy maximum of 330% of salary. It is intended that, as
in past years, the three-year performance conditions applicable to the award will continue to be based
on ROIC and EPS as well as the reduction of CO2 emissions metric, which was first introduced in 2021.
The weightings will be 42.5% for ROIC, 42.5% for EPS and 15% for reduction of CO2 emissions.
These are unchanged from 2021.
The targets for the 2025 PSP award, exclude Russia and Ukraine, and take into account our business
plan, market expectations and the wider economic and geopolitical environment, and are as follows:
Threshold
Stretch
Measure
Description
Weighting
Target
Vesting
(% of max)
Target
Vesting
(% of max)
EPS
Calculated by dividing the comparable
net profit attributable to the owners
of the parent by the weighted average
number of outstanding shares
during the period.
42.5%
€1.76 25.00%
€2.06
100%
ROIC
ROIC is the percentage return that
a company makes on its invested
capital. More specifically, we
define ROIC as the percentage
of comparable net profit excluding
net finance costs divided by the
capital employed. Capital employed
is calculated as the average of net
debt and shareholders’ equity
attributable to the owners of the
parent company through the year.
42.5%
14.3% 25.00%
16.2%
100%
Reduction in CO2
emissions1
CO2 emission targets have been
set to reflect the Group’s ambitious
goal to achieve net zero emissions
across its entire value chain by 2040.
Targets reflect the inclusion of
Egypt in the range and other
technical changes mandated
by STBI and IFEU.
15.0%
4,485 25.00%
4,278
100%
The Committee believes that the proposed target range for ROIC and the other performance metrics
are appropriately stretching relative to the business plan and external forecasts of performance.
The performance period for 2025 awards will be the three years to the end of December 2027 and
vesting will occur in March 2028. These vested shares will then be subject to a further two‑year holding
period, and the CEO agrees to a no-sale commitment during this time.
1. The targets for CO2 emissions include scope 1, scope 2 and scope 3 emissions, reflecting the Company’s goal to achieve net zero emissions
across its entire value chain by 2040. Whilst we are committed to this target, the Committee is conscious that the external environment on
ESG is rapidly evolving and this could have a material impact on our targets given they include scope 3 emissions. If there are material
changes in the external environment over the performance period that affect our ability to meet the target range, the Committee would
engage with investors as appropriate on the impact on our targets.
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Directors’ remuneration report continued
Annual percentage change in remuneration of Directors and employees
The following table sets out the percentage change in remuneration for each Director and average percentage change for employees on an annual basis.
Salary/fees
Taxable benefits
Annual bonus
2023 to 2024 % 2022 to 2023 % 2021 to 2022 % 2020 to 2021 % 2019 to 2020 % 2023 to 2024 % 2022 to 2023 % 2021 to 2022 % 2020 to 2021 % 2019 to 2020 % 2023 to 2024 % 2022 to 2023 % 2021 to 2022 % 2020 to 2021 % 2019 to 2020 %
All employees
8.31
7.29
4.39
4.59
0.00%
5.40
0.40
16.34
4.19
-18.57%
-9.612
11.86
96.50
‑14.79
9.12%
Director
Anastassis G. David
–
–
104.08
–
–
–
–
–
–
–
–
–
–
–
–
Zoran Bogdanovic
5.50
6,30
3.10
3.20
0.00%
9.88
32.181
-36.53
24.25
34.63%
4.243
-12.22
155.21
-28.87
23.00%
Charlotte J. Boyle
–
–
11.66
–
–
–
–
–
–
–
–
–
–
–
–
Henrique Braun
–
–
11.46
–
–
–
–
–
–
–
–
–
–
–
–
Olusola (Sola) David-Borha5
–
–
11.26
–
–
–
–
–
–
–
–
–
–
–
–
Anna Diamantopoulou7
–
–
11.56
–
–
–
–
–
–
–
–
–
–
–
–
William W. (Bill) Douglas lll
–
–
11.33
–
–
–
–
–
–
–
–
–
–
–
–
Reto Francioni
–
–
11.96
–
–
–
–
–
–
–
–
–
–
–
–
Anastasios I. Leventis
–
–
11.63
–
–
–
–
–
–
–
–
–
–
–
–
Christo Leventis
–
–
11.56
–
–
–
–
–
–
–
–
–
–
–
–
Alexandra Papalexopoulou5
–
–
11.36
–
–
–
–
–
–
–
–
–
–
–
–
George Pavlos Leventis
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Evguenia Stoitchkova
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Zulikat Wuraola Abiola4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Glykeria Tsernou4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Elizabeth Bastoni6
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1. The increase in taxable benefits for the CEO was due to higher social security costs in 2025.
2. The decrease in annual bonus for local population is due to lower performance in some of our higher income business units. The majority of the business units performed well versus the annual targets, but a few of them had lower achievements versus prior year.
3. The increase in annual bonus for CEO is due to the salary review effective 1 May 2024.
4. Zulikat Wuraola Abiola and Glykeria Tsernou were elected as new non-Executive members of the Board of Directors as of 16 May 2024.
5. Olusola (Sola) David-Borha and Alexandra Papalexopoulou retired from the Board of Directors on 16 May 2024.
6. Elizabeth Bastoni was elected as a new non-Executive member of the Board of Directors as of 16 September 2024.
7. Anna Diamantopoulou retired from the Board of Directors on 16 September 2024.
CEO pay ratio
Coca‑Cola HBC is domiciled in Switzerland. We are therefore not required to report a CEO pay ratio under UK regulations; however, we are voluntarily disclosing ratios below. We have chosen to make
a comparison with employees in Switzerland as this is the market in which our CEO is based.
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Directors’ remuneration report continued
The international nature of our business means that we operate in countries with a significant range
in terms of market practice for levels of remuneration and cost of living.
Switzerland, for example, has a substantially higher cost of living and employment remuneration
compared with other countries. For this reason, comparisons with our Swiss workforce are likely
to be more informative about the pay distribution of our workforce.
The table below compares the 2024 single figure of remuneration for the CEO with that of the employees
who are paid at the 25th percentile (lower quartile), 50th percentile (median) and 75th percentile (upper
quartile) of the Company’s workforce based in Switzerland, ranked based on total remuneration.
Year
Method
25th percentile pay ratio
(P1)
Median pay ratio
(P2)
75th percentile pay ratio
(P3)
2024
Option A
69:1
57:1
48:1
2023
Option A
56:1
44:1
35:1
2022
Option A
46:1
37:1
31:1
2021
Option A
65:1
52:1
42:1
2020
Option A
39:1
33:1
26:1
Option A has been used as it is the most robust methodology and is based on a sample of full‑time
Swiss employees as of 31 December 2024. Their pay and benefits is calculated, and every Swiss
employee is ranked to determine P25, P50 and P75. Several Swiss employees around each percentile
were identified to ensure that they accurately represent the relevant percentile ranking.
The methodology used to identify the lower quartile, median and upper quartile employees was to rank all
employees of the Swiss workforce on total remuneration (for employees who were in employment for the
full calendar year). Two employees around each percentile were identified to ensure they accurately
represent the relevant percentile ranking. The total remuneration for each of these employees was then
calculated consistent with the methodology applied for deriving the CEO’s single figure remuneration.
The table below sets out the total pay and benefits for the lower quartile, median and upper quartile:
25th percentile in €
Median in €
75th percentile in €
Annual base salary
77,318
96,473
100,260
Total remuneration
98,236
118,889
141,803
Total remuneration of Swiss employees includes base salary, annual bonuses, other cash compensation
(e.g. overtime), other cash and non‑cash benefits (e.g. company car, tax support, relocation etc.),
pension employer contributions and employer social security contributions during 2024.
We are satisfied that the pay ratios reported this year are consistent with our wider pay, reward and
progression policies for employees.
As described on page 226, we have an overall remuneration philosophy that operates throughout the
Group, ensuring that employees are fairly rewarded and that their individual contributions are linked
to the success of the Company.
Variable pay is an important element of our reward philosophy and a significant proportion of total
remuneration for top managers (including the CEO) is tied to the achievement of our business
objectives. As employees advance through the Company, there will be the opportunity to receive
higher rewards commensurate with increased accountability and market practice. The CEO’s total
remuneration has a significantly higher proportion of variable pay in comparison with the rest of our
employees. The CEO’s remuneration will therefore increase or decrease in line with business
performance, aligning it with shareholders’ interests.
The change in the CEO Pay Ratio between 2023 and 2024 was mainly due to the increase in the
long-term incentives under the variable long-term incentive plan.
Chief Executive Officer pay and performance comparison
The graph below shows the total shareholder return (TSR) of the Company compared with the
FTSE 100 index over a ten‑year period to 31 December 2024, based on an initial investment of £100.
The Remuneration Committee believes that the FTSE 100 Index is the most appropriate index to use
for historic performance due to the size of the Company and our listing location.
Total Shareholder Return versus FTSE 100
50
100
150
200
250
300
FTSE 100
Coca-Cola HBC
Dec 14
Dec 15
Dec 16
Dec 17
Dec 18
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 24
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Directors’ remuneration report continued
2024
2023
342.9
1,297.4
289.9
1,248.6
19%
Total staģ costs
Distribution to shareholders (total shares)
Relative importance of spend on pay (€m)
The graphic below presents the year-on-year change in total expenditure for all employees across the Group
and distributions made to shareholders in the form of dividends, share buybacks and/or capital returns.
0
200
400
600
800
1,000
1,200
1,400
1,600
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Dimitris Lois
Dimitris Lois
Dimitris Lois
Zoran Bogdanovic
Zoran Bogdanovic
Zoran Bogdanovic
Zoran Bogdanovic
Zoran Bogdanovic
Zoran Bogdanovic
Zoran Bogdanovic Zoran Bogdanovic
Total remuneration
– single figure (€ 000s)
3,012
2,923
15,378
410
3,710
2,499
3,340
4,203
4,294
5,494
6,781
MIP (% of maximum)
75%
55%
53%
5%
48%
56%
40%
91%
78%
76%
75%
PSP (% of maximum)
–
–
90%
–
100%
75%
50%
75%
48%
94%
77%
Dimitris Lois sadly passed away on 2 October 2017. The 2017 total remuneration values above reflect the period 1 January 2017 to 2 October 2017. The total remuneration value for Zoran Bogdanovic reflects
the period from his appointment as CEO to the end of the financial year, 7 December 2017 to 31 December 2017.
Compared with the prior year, the total staff costs have increased by 3.9%, while dividends distributed
to shareholders have increased by 18.3%
Shareholder voting outcomes
The table below sets out the result of the vote on the remuneration‑related resolutions at the Annual
General Meeting held in May 2024.
Resolution
Votes for
Votes against
Abstentions
Total votes cast
Voting rights
represented
Advisory vote on the UK
remuneration report
248,551,498
5,896.635
1,043,825
255,492,959
69.96%
97.28%
2.31%
0.41%
Advisory vote on the Swiss
statutory remuneration report
238,378,236
17,105,579
8,143
255,492,959
69.96%
93.30%
6.70%
0.00%
Advisory vote on the
remuneration policy
243,042,676
12,150,434
298,649
255,492,959
69.96%
95.12%
4.76%
0.12%
Approval of the maximum
aggregate amount of remuneration
for the Board until the next
Annual General Meeting
243,668,527
11,818,181
6,176
255,492,959
69.96%
95.37%
4.63%
n/a
Approval of the maximum
aggregate amount of remuneration
for the Executive Leadership Team
for the next financial year
242,131,442
13,339,926
21,516
255.492,959
69.96%
94.78%
5.22%
n/a
The Remuneration Committee was pleased that shareholders supported our remuneration-related
resolutions so strongly. We value our ongoing dialogue with shareholders and welcome any views on
this report.
Payments to past Directors and payments for loss of office
There were no payments made to past Directors of the Group or loss of office payments made during
the year.
Payments to appointed Directors
There were no payments made to appointed Directors during the year.
Outside appointments for the CEO
Zoran Bogdanovic does not hold any appointments outside the Company.
Total Directors’ and Executive Leadership Team members’ remuneration
The table below outlines the aggregated total remuneration figures for Directors and ELT members in
the year.
2024
(€ m)
2023
(€ m)
Total remuneration paid to or accrued for Directors, the ELT and the CEO
32.6
30.6
Salaries and other short-term benefits
23.4
20.4
Amount accrued for performance share awards
8.1
9.3
Pension and post-employment benefits for Directors, the ELT and the CEO
1.1
0.9
Credits and loans granted to governing bodies
In 2024, no credits or loans were granted to active or former members of the Company’s Board,
members of the ELT or any related persons.
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Directors’ remuneration report continued
Share ownership
The table below summarises the total shareholding as at 31 December 2024, including any outstanding shares awarded through our incentive plans, for the CEO and other Directors.
With performance measures
Without performance measures
PSP
ESOP
ESPP
Share
interests
Performance
shares
granted in
2024
Unvested and
subject to
performance
conditions
Vested
Number of
stock options
outstanding
Fully
vested
Vesting at
the end of
2024
Number of
outstanding
shares held as at
31 December 2024
Beneficially
owned
Current
shareholding
as % of
base salary1
Shareholding
guideline met1
Zoran Bogdanovic2
Yes
109,165
399,538
95,843
–
–
–
86,927
386,658
1,353%
Yes
Anastassis G. David3
–
–
–
–
–
–
–
–
–
–
Charlotte J. Boyle
Yes
–
–
–
–
–
–
–
1,395
–
–
Henrique Braun
–
–
–
–
–
–
–
–
–
–
William W. (Bill) Douglas III
Yes
–
–
–
–
–
–
–
10,000
–
–
Reto Francioni
Yes
–
–
–
–
–
–
–
7,000
–
–
Anastasios I. Leventis4
–
–
–
–
–
–
–
–
–
–
Christo Leventis5
–
–
–
–
–
–
–
–
–
–
Bruno Pietracci
–
–
–
–
–
–
–
–
–
–
Ryan Rudolph
–
–
–
–
–
–
–
–
–
–
George Pavlos Leventis6
–
–
–
–
–
–
–
–
–
–
Evguenia Stoitchkova
–
–
–
–
–
–
–
–
–
–
Zulikat Wuraola Abiola
–
–
–
–
–
–
–
–
–
–
Glykeria Tsernou
–
–
–
–
–
–
–
–
–
–
Elizabeth Bastoni
–
–
–
–
–
–
–
–
–
–
There were no changes in share ownership between 31 December 2024 and 12 March 2025 for the Directors except for Zoran Bogdanovic.
1. The shareholding requirement was introduced from the date of the 2015 PSP award, 10 December 2015 and was updated to 300% in 2020.
2. During 2024, Zoran Bogdanovic exercised 39,335 options under the ESOP due to upcoming expiration consisting of: 39,335 options with an exercise price of GBP 12.56 and the share price at the date of the exercise being GBP 25.00. As of 12 March 2025, Zoran Bogdanovic did not have any
outstanding ESOP.
3. Anastassis G. David is a beneficiary of:
a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar‑Tess Holding; and
b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 832,268 shares held by Ari Holdings Limited.
4. Anastasios I. Leventis is a beneficiary of:
a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar‑Tess Holding; and
b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 286,880 shares held by its trustee, Selene Treuhand AG; and
c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
5. Christo Leventis is a beneficiary of:
a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar‑Tess Holding and
b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 482,228 shares held by its trustee, Selene Treuhand AG; and
c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
6. George Pavlos Leventis is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 294,191 shares held by its trustee, Selene Treuhand AG; and
(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
Approval of the Directors’ remuneration report
The Directors’ remuneration report set out on pages 222 to 247 was approved by the Board of Directors on 12 March 2025 and signed on its behalf by:
Charlotte J. Boyle
Committee Chair
12 March 2025
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247
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Supplementary Information
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Integrated Annual Report, including the consolidated
financial statements, the Corporate Governance Report including the Directors’ remuneration report
and the Strategic Report, in accordance with applicable law and regulations.
The Directors, whose names and functions are set out on pages 195 to 197, confirm to the best of their
knowledge that:
a) the Integrated Annual Report, taken as a whole, is fair, balanced and understandable, and provides
the information necessary for shareholders to assess the Group’s position and performance,
business model and strategy;
b) the consolidated financial statements, which have been prepared in accordance with International
Financial Reporting Standards, as adopted by the European Union and in compliance with Swiss law,
give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company,
and the undertakings included in the consolidation of the Group taken as a whole; and
c) the Integrated Annual Report includes a fair review of the development and performance of the
business and the position of the Company and the undertakings included in the consolidated
Coca-Cola HBC Group taken as a whole, together with a description of the principal risks and
uncertainties that they face.
The activities of the Group, together with the factors likely to affect its future development,
performance, financial position, cash flows, liquidity position and borrowing facilities, are described in
the Strategic Report (pages 1 to 190). In addition, Notes 24 ‘Financial risk management and financial
instruments’, 25 ‘Net debt’ and 26 ‘Equity’ include: the Company’s objectives, policies and processes for
managing its capital; its financial risk management objectives; details of its financial instruments and
hedging activities; and its exposures to credit risk and liquidity risk. The Group has considerable financial
resources, together with long-term contracts with a number of customers and suppliers across
different countries. The Directors have also assessed the principal risks and the other matters
discussed in connection with the viability statement on page 190.
The Directors considered it appropriate to adopt the going concern basis of accounting in preparing the
annual financial statements and have not identified any material uncertainties to the Group’s ability to
continue to do so over a period of at least 12 months from the date of approval of these financial
statements.
By order of the Board
Anastassis G. David
Chairman of the Board
13 March 2025
Disclosure of information required under UK Listing Rule 6.6.4R
For the purposes of the UK Listing Rules, the information required to be disclosed by UKLR 6.6.1R is
as follows:
UK
Listing
Rule
Information
to be included
Reference
in report
6.6.1R(1)
Interest capitalised by the Group and an indication of the amount
and treatment of any associated tax relief
Not applicable
6.6.1R(2)
Details of any unaudited financial information required by UKLR 6.2.23R
Not applicable
6.6.1R(3)
Details of any long-term incentive scheme described in UKLR 9.3.3R
Not applicable
6.6.1R(4)
Details of any arrangement under which a Director has waived
any emoluments
Not applicable
6.6.1R(5)
Details of any arrangement under which a Director has agreed
to waive future emoluments
Not applicable
6.6.1R(6)
Details of any allotments of shares by the Company for cash not
previously authorised by shareholders
Not applicable
6.6.61R(7) Details of any allotments of shares for cash by a major subsidiary
of the Company
Not applicable
6.6.1R(8)
Details of the participation by the Company in any placing made
by its parent company
Not applicable
6.6.1R(9)
Details of any contracts of significance involving a Director
Not applicable
6.6.1R(10) Details of any contract for the provision of services to the Company
by a controlling shareholder
Not applicable
6.6.1R(11) Details of any arrangement under which a shareholder has waived
or agreed to waive any dividends
Not applicable
6.6.1R(12) Details of any arrangement under which a shareholder has agreed
to waive future dividends
Not applicable
6.6.1R(13) Statements of compliance where there is a controlling shareholder
Not applicable
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Supplementary Information
Independent Auditor’s
Limited Assurance Report
To the Shareholders of
Coca-Cola HBC AG
Independent Auditor’s Limited Assurance Report to the Shareholders
of Coca-Cola HBC AG
We have conducted a limited assurance engagement on the consolidated Sustainability statement of
Coca-Cola HBC AG (‘Coca-Cola HBC’ or the ‘Group’), included in the section ‘Sustainability Statement’,
within the 2024 Integrated Annual Report (the ‘Sustainability Statement’) for the period from 1 January
2024 to 31 December 2024.
Limited assurance conclusion
Based on the procedures we have performed, as described below in the ‘Scope of work performed’
section of our report, and the evidence we have obtained, nothing has come to our attention that
causes us to believe that:
• the Sustainability Statement is not prepared in all material respects, in accordance with Article 154
of the Law 4548/2018, as amended and in force by Law 5164/2024 which incorporated Article 29(a)
of EU Directive 2013/34 into Greek legislation;
• the Sustainability Statement does not comply with the European Sustainability Reporting Standards
(‘ESRS’), in accordance with Commission EU Regulation 2023/2772 of 31 July 2023 and EU Directive
2022/2464 of the European Parliament and of the Council of 14 December 2022;
• the process carried out by the Group to identify and assess material impacts, risks and opportunities
(the ‘Process’), as set out in section ‘IRO-1 Description of the process to identify and assess
material impacts, risks and opportunities’ of the Sustainability Statement and the relevant
information incorporated by reference, does not comply with ‘Disclosure Requirement IRO-1
– Description of the processes to identify and assess material impacts, risks and opportunities
of ESRS 2 ‘General Disclosures’; and
• the disclosures in the section ‘EU Taxonomy’ of the Sustainability Statement do not comply with
Article 8 of EU Regulation 2020/852.
This assurance report does not extend to information for prior periods.
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on
Assurance Engagements 3000 (Revised), ‘Assurance engagements other than audits or reviews
of historical financial information’ (‘ISAE 3000’).
The procedures in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained
in a limited assurance engagement is substantially lower than the assurance that would have been
obtained had a reasonable assurance engagement been performed.
Our responsibilities are further described in the ‘Auditor’s responsibilities’ section of our report.
Our independence and quality management
We are independent of Coca-Cola HBC throughout this engagement and have complied with
the requirements of the International Code of Ethics for Professional Accountants issued by the
International Ethics Standards Board for Accountants (‘IESBA Code’), the FRC’s Ethical Standard,
as applicable to listed entities, and the ethical and independence requirements of Law 4449/2017
and EU Regulation 537/2014.
Our audit firm applies International Standard on Quality Management 1 (ISQM1) ‘Quality Management
for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related
Services Engagements’ and consequently maintains a comprehensive quality management system
that includes documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for
our conclusion.
Management’s responsibilities for the Sustainability Statement
Management of Coca-Cola HBC is responsible for designing and implementing an appropriate process
to identify the information reported in the Sustainability Statement in accordance with the ESRS and
for disclosing this Process in section ‘IRO-1 Description of the process to identify and assess material
impacts, risks and opportunities’ of the Sustainability Statement.
More specifically, this responsibility includes:
• Understanding the context in which the Group’s, activities and business relationships take place and
developing an understanding of its affected stakeholders;
• The identification of the actual and potential impacts (both negative and positive) related to
sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected
to affect, the Group’s financial position, financial performance, cash flows, access to finance or cost
of capital over the short-, medium-, or long-term;
• The assessment of the materiality of the identified impacts, risks and opportunities related to
sustainability matters by selecting and applying appropriate thresholds; and
• Making assumptions that are reasonable in the circumstances.
Independent auditor’s limited assurance report on Coca-Cola HBC AG’s
Sustainability Statement
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Independent auditor’s limited assurance report on Coca-Cola HBC AG’s Sustainability Statement continued
Management of the Group is further responsible for the preparation of the Sustainability Statement,
in accordance with the article 154 of Law 4548/2018, as amended and in force with Law 5164/2024,
by which Article 29(a) of EU Directive 2013/34 was transposed into Greek legislation.
In this context, the Management of the Group is responsible for:
• compliance of the Sustainability Statement with the ESRS;
• preparing the disclosures in section ‘EU Taxonomy’ of the Sustainability Statement, in compliance
with Article 8 of EU Regulation 2020/852;
• designing and implementing such internal control that management determines is necessary to
enable the preparation of the Sustainability Statement that is free from material misstatement,
whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making
assumptions and estimates that are reasonable in the circumstances.
The Audit Committee of Coca-Cola HBC is responsible for overseeing the Group’s sustainability
reporting process.
Inherent limitations in preparing the Sustainability Statement
In reporting forward-looking information in accordance with ESRS, management of the Group is
required to prepare the forward-looking information on the basis of disclosed assumptions about
events that may occur in the future and possible future actions by the Group. Actual outcomes are
likely to be different since anticipated events frequently do not occur as expected.
As stated in section ‘IRO-1 Description of the process to identify and assess material impacts, risks and
opportunities’ in the Sustainability Statement, the information incorporated in the relevant disclosures
is based, among other things, on climate-related scenarios, which are subject to inherent uncertainty
regarding the likelihood, timing or impact of potential future physical and transitional climate-related impacts.
Our work covered the matters listed in the ‘Scope of Work performed’ section to obtain limited
assurance based on the procedures included in the Program. Our work does not constitute an audit
or review of historical financial information in accordance with applicable International Standards on
Auditing or International Standards on Review Engagements, and therefore we do not express any
other assurance than those listed in the ‘Scope of Work performed’ section of this report.
Auditor’s responsibilities
This limited assurance report has been drawn up based on the provisions of article 154C of Law
4548/2018 and Article 32Α of Law 4449/2017.
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about
whether the Sustainability Statement is free from material misstatement, whether due to fraud or error,
and to issue a limited assurance report that includes our conclusion. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise
professional judgement and maintain professional skepticism throughout the engagement.
Our responsibilities in respect of the Sustainability Statement, in relation to the Process, include:
• performing risk assessment procedures, including an understanding of the relevant internal control,
to identify risks related to whether the Process implemented by the Group to determine the
information reported in the Sustainability Statement does not meet the applicable requirements
of the ESRS but not for the purpose of providing a conclusion on the effectiveness of the Group’s
internal control; and
• designing and performing procedures to evaluate whether the Process is consistent with the Group’s
description of its Process set out in section ‘IRO-1 Description of the process to identify and assess
material impacts, risks and opportunities’.
Moreover, we are responsible for:
• performing risk assessment procedures, including an understanding of the relevant internal control,
to identify those disclosures that are likely to be materially misstated, whether due to fraud or error,
but not for the purpose of providing a conclusion on the effectiveness of the Group’s internal control.
• designing and performing procedures responsive to where material misstatements are likely to arise
in the consolidated Sustainability Statement. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Scope of work performed
Our work involves performing procedures and obtaining evidence for the purpose of deriving a limited
assurance conclusion and covers exclusively the limited assurance procedures provided for in the
limited assurance program issued by the Hellenic Accounting and Auditing Supervisory Oversight
Board according to its decision dated 22.01.2025 (the ‘Program’), as it was formed for the purpose
of issuing a limited assurance report on the Group’s Sustainability Statement.
Our procedures were designed to obtain a limited level of assurance on which to base our conclusion
and do not provide all the evidence that would be required to provide a reasonable level of assurance.
Fotis Smyrnis
the Certified Auditor,
Reg. No. 52861
for and on behalf of
PricewaterhouseCoopers S.A.
Certified Auditors, Reg. No. 113
Athens, Greece
14 March 2025
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Report on the audit of the consolidated financial statements
Our opinion
In our opinion:
• Coca-Cola HBC AG’s (‘Coca-Cola HBC’ or the ‘Group’) consolidated financial statements (the
‘financial statements’) give a true and fair view of the state of the Group’s affairs as at 31 December
2024 and of its profit and cash flows for the year then ended; and
• the financial statements have been properly prepared in accordance with International Financial
Reporting Standards (‘IFRSs’) as adopted by the European Union (‘EU’).
We have audited the financial statements, included within the 2024 Integrated Annual Report
(the ‘Annual Report’), which comprise: the consolidated balance sheet as at 31 December 2024;
the consolidated income statement, the consolidated statement of comprehensive income, the
consolidated cash flow statement, and the consolidated statement of changes in equity for the year
then ended; as well as the notes to the financial statements, comprising material accounting policy
information and other explanatory information.
Our opinion is consistent with our reporting to the Audit and Risk Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing issued by the
International Auditing and Assurance Standards Board (‘ISAs’). Our responsibilities under ISAs are
further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of
our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical requirements that are relevant
to our audit of the financial statements, which include the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (‘IESBA Code’), and the FRC’s Ethical Standard, as applicable to
listed public interest entities, and we have fulfilled our ethical responsibilities in accordance with these
requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the IESBA
Code or the FRC’s Ethical Standard were not provided to the Group.
Other than those disclosed in Note 8 ‘Operating expenses’ of the financial statements, we have
provided no non-audit services to the Group in the period under audit.
Our audit approach
Overview
Audit scope
• Following our assessment of the risks of material misstatement of the
financial statements, we performed full scope audit procedures on the financial
information of 17 subsidiary undertakings in 15 countries spread across all of
the Group’s reportable segments.
• In addition, we conducted audit procedures around specific account balances
and transactions including those covering the group treasury operations.
• For the subsidiary undertakings not included in our scope, we performed
targeted risk assessment procedures, as appropriate.
• Central audit testing was performed where appropriate for reporting
components in group audit scope that are supported by the Group’s shared
services centres.
• Audit procedures were also performed in relation to consolidation
adjustments and balances which arise or eliminate on consolidation
of the financial statements.
• Taken together, the subsidiary undertakings which were in scope for the
purpose of our audit accounted for 81% of consolidated net sales revenue,
76% of consolidated profit before tax and 87% of consolidated total assets
of the Group.
• As part of the group audit supervision process, the group engagement
team has performed reviews of the component auditors’ audit files and final
deliverables. In person site visits to component auditors in Bulgaria, Greece,
Italy, Poland, Romania, Egypt and Switzerland were also performed.
Key audit matters
• Goodwill and indefinite-lived intangible assets impairment assessment.
• Uncertain tax positions.
Materiality
• Overall materiality: €56 million based on 5% of profit before tax
(2023: €51 million based on 5% of adjusted profit before tax).
• Performance materiality: €42 million (2023: €38.3 million).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG
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Interaction with the Audit and Risk Committee
In addition to forming this opinion, in this report we have also provided information on how we
approached the audit and details of the significant discussions that we had with the Audit and Risk
Committee. We attended each of the eight Audit and Risk Committee meetings held during the year.
Certain meetings involved a private discussion without management being present. We also met with
the Chair of the Audit and Risk Committee on an ad-hoc basis. During these various conversations we
discussed our observations on a variety of matters, for example the methodology and assumptions
used in the Group’s impairment assessment over goodwill and indefinite-lived intangible assets,
the judgements taken by management in assessing the risk of potentially material tax exposures,
the accounting implications of the ongoing challenging macroeconomic conditions, and regulatory
developments. In September and December 2024, the Audit and Risk Committee discussed and
challenged our audit plan. The plan included the matters which we considered presented the highest
risk of material misstatement to the financial statements and other information about our audit,
including the key audit matters as set out below, and other information on our audit approach such as
our approach to specific balances and transactions, our direction and supervision of the component
teams, and where the latest technology would be used to obtain better quality audit evidence.
Key audit matters
Key audit matters are those matters that, in the auditor’s professional judgement, were of most
significance in the audit of the financial statements of the current year and include the most significant
assessed risks of material misstatement (whether or not due to fraud) identified by the auditors,
including those which had the greatest effect on: the overall audit strategy; the allocation of resources
in the audit; and directing the efforts of the engagement team. These matters, and any comments
we make on the results of our procedures thereon, were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
This is not a complete list of all risks identified by our audit.
The areas of highest risk for the Group audit and where we focused more efforts and resources were
‘Goodwill and indefinite-lived intangible assets impairment assessment’ and ‘Uncertain tax positions’.
These areas are common with other international beverages companies. These key audit matters are
consistent with last year.
.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG continued
Key audit matter
How our audit addressed the key audit matter
Goodwill and indefinite-lived intangible
assets impairment assessment
Refer to Note 13 ‘Intangible assets’.
Goodwill and indefinite-lived intangible assets
as at 31 December 2024 amount to €1,828.8
million and €669.0 million, respectively.
The above amounts have been allocated to
individual cash-generating units (‘CGUs’), which
in accordance with International Accounting
Standard 36 ‘Impairment of Assets’ (‘IAS 36’)
require the performance of an impairment
assessment at least annually or whenever there
is an indication of impairment. The impairment
assessment involves the determination of the
recoverable amount of the CGU, being the
higher of the value-in-use and the fair value
less costs of disposal.
We consider this area as a key audit matter
due to the magnitude of goodwill and indefinite-
lived intangible assets balances and because
the determination of whether elements of
goodwill and of indefinite-lived intangible assets
are impaired involves a significant amount of
judgement by management when developing
the estimates of the future results of the
CGUs. These estimates include assumptions
surrounding revenue growth rates, costs, foreign
exchange rates and discount rates.
In 2024, an impairment loss of €0.4 million was
recorded in connection with a juice trademark
in the Emerging markets. No impairment was
identified for the remaining indefinite-lived
intangible assets or goodwill.
We evaluated the appropriateness of management’s
identification of the Group’s CGUs, the process
by which management prepared the CGUs’ value-
in-use calculations and the design and operating
effectiveness of related control activities.
We tested the accuracy of the CGUs’ carrying values
and value-in-use calculations and compared the
future cash flow projections included therein to the
financial budgets, approved by the directors, covering
a one-year period, and management’s projections for
the subsequent four years. In addition, we assessed
management’s past forecasting accuracy by comparing
key elements of the prior-year budgets and projections
with actual results.
We challenged management’s cash flow projections
in relation to the assumptions applied to the value-
in-use calculations, taking into account the ongoing
challenging macroeconomic environment in
several countries.
With the support of our valuation specialists, we
assessed the appropriateness of the methodology
and valuation techniques used, as well as certain
assumptions including discount, annual revenue
growth and perpetuity revenue growth rates.
We also evaluated management’s assessment
of the potential impact of climate change risks,
such as the cost of water, carbon emissions and
exposure to extreme weather events on future cash
flow forecasts.
We performed independent sensitivity analyses
on the key drivers of the value-in-use calculations
for the CGUs with significant balances of goodwill
and indefinite-lived intangible assets.
Based on our work, we concluded that the results
reached by management in relation to the impairment
testing of goodwill and indefinite-lived intangible
assets were supported by assumptions within
reasonable ranges.
We evaluated the related disclosures provided in
the financial statements in Note 13 ‘Intangible assets’
and concluded that these are appropriate.
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Key audit matter
How our audit addressed the key audit matter
Uncertain tax positions
Refer to Note 10 ‘Taxation’ and Note 29
‘Contingencies’.
The Group operates in numerous tax
jurisdictions and is subject to periodic
challenges, in the normal course of business,
by local tax authorities on a range of matters
including corporate tax, transfer pricing
arrangements and indirect taxes. As at
31 December 2024, the Group has provisions
for uncertain tax positions of €72.3 million
that are classified in current tax liabilities,
current tax assets and deferred taxes.
The impact of changes in local tax regulations
and ongoing inspections by local tax authorities,
could materially impact the amounts recorded
in the financial statements.
Where the amount of tax payable is uncertain,
the Group establishes provisions based on
management’s estimates with respect to the
likelihood of potential material tax exposures
crystallising and the probable amount of the
resultant liability.
We consider this area as a key audit matter
given the level of judgement and subjectivity
involved in estimating tax provisions, including
a high degree of estimation uncertainty relative
to the numerous and complex tax laws in
the various jurisdictions in which the Group
operates, the frequency of tax audits, and the
considerable time to conclude investigations
and negotiations with local tax authorities as
a result of such audits that could materially
impact the amounts recorded in the financial
statements.
In order to understand and evaluate management’s
judgement, we considered the status of current tax
authority inspections and inquiries, the outcome of
previous tax authority inspections, the judgemental
positions taken in tax returns and current year
estimates as well as recent developments in
the tax jurisdictions in which the Group operates.
We evaluated the Group’s monitoring process for
current tax authority inspections and challenged
management’s estimates, particularly in respect of
cases where there had been significant developments
with tax authorities.
Our component audit teams, through the use of tax
specialists with local knowledge and relevant expertise,
assessed the tax positions taken by the subsidiary
undertakings in scope, in the context of applying local
tax laws and evaluating the local tax assessments.
We read recent rulings and correspondence with tax
authorities, as well as any external advice provided by the
Group’s tax experts and legal advisors. Additionally, with
our group engagement team tax specialists we further
evaluated management’s estimation of tax exposures
and contingencies in order to assess the adequacy of
the Group’s tax provisions and satisfy ourselves that
the tax provisions have been appropriately recorded
or adjusted to reflect the latest developments.
We held meetings with Group and local management
to discuss the individual tax positions of the in-scope
subsidiary undertakings and assessed with the support
of our group engagement tax team the Group’s overall
tax exposure.
From the evidence obtained we consider the provisions
in relation to uncertain tax positions as at 31 December
2024 to be reasonable.
We also evaluated the related disclosures provided in the
financial statements in Note 10 ‘Taxation’ and Note 29
‘Contingencies’ and concluded that these are appropriate.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed sufficient work to be able to provide
an opinion on the financial statements as a whole, taking into account the operating structure of the
Group, the accounting processes and controls, and the industry in which the Group operates. There
were three different levels of work in our approach: audit work performed on the Group’s trading
subsidiary undertakings; at shared service centres; and at the group level.
The Group operates through its trading subsidiary undertakings in Nigeria, Egypt and 27 countries
in Europe, as set out in Note 1 ‘General information’ and Note 6 ‘Segmental analysis’ of the financial
statements. The Group also operates centralised treasury functions in the Netherlands and in Greece
and a centralised procurement function for key raw materials in the Netherlands.
Based on their significance to the financial statements and in light of the key audit matters as noted above,
we identified 17 subsidiary undertakings in 15 countries spread across all of the Group’s reportable segments
(including the significant, due to risk or size, subsidiary undertakings in Egypt, Italy, Nigeria, Poland, Romania,
Russia and Switzerland). For these components we obtained full scope audit reports over their financial
information. In addition, we have performed Group level analysis on the remaining components, where
appropriate, to determine whether further risks of material misstatement exist in those components. We
consider the scope of our audit, as communicated to the Audit and Risk Committee, to be an appropriate
basis for our audit opinion.
At the planning phase of the audit process, we hosted in Greece an in-person two-day audit planning
workshop. At this workshop we considered developments relevant to the Group and we focused on
planning and risk assessment activities, fraud risk assessment, auditor independence, accounting,
regulatory and auditing developments, climate related topics and centralised testing procedures.
We also heard from key members of management. This audit planning workshop was attended by
the senior staff of the component teams in scope for group audit purposes.
We issued formal, written instructions to the component teams setting out the work to be performed
by each of them and we were in active dialogue throughout the year with the teams that conducted these
component audits; this included consideration of how they planned and performed their work. In addition
to holding formal periodic meetings, the group engagement team had ongoing informal interactions with
the component audit teams to be continuously updated and to monitor their progress and the results
of their procedures. Furthermore, the group engagement team reviewed component auditor working
papers and undertook other forms of interaction as considered necessary, depending on the significance
of the component and the extent of accounting and audit issues arising. We evaluated the sufficiency
of the audit evidence obtained through discussions with each team and a review of their audit working
papers and deliverables. The senior members of the group engagement team performed site visits in
Bulgaria, Egypt, Greece, Italy, Poland, Romania and Switzerland. These visits gave us an opportunity to
meet with the local audit teams and management to discuss the business performance and outlook,
regulations and taxation, and any specific accounting and auditing matters identified, including fraud
and internal controls. For the trading subsidiary undertakings in Egypt, Ireland and Nigeria, where physical
attendance was not undertaken, we participated in the final audit meetings via video conference.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG continued
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A significant number of operational processes which are critical to financial reporting and IT
functions are undertaken in the shared service centres in Bulgaria for many of the Group’s subsidiary
undertakings. The group engagement team was responsible for planning, designing and overseeing
the audit procedures performed on those processes. We tested controls and transactions which
supported the financial information for many of the subsidiary undertakings in scope, to ensure
that adequate audit evidence was obtained. In addition, we performed work centrally on IT general
controls and cybersecurity and shared audit comfort with the component teams. Furthermore,
audit procedures were performed with respect to the centralised treasury functions by the group
engagement team and with respect to the centralised procurement function by the component
audit team in the Netherlands.
We ensured that appropriate further audit work was undertaken at a group level. This work included
auditing, for example, the consolidation of the group’s results, the preparation of the financial statements,
litigation provisions and exposures and management’s entity level and oversight controls relevant to
financial reporting. We also performed work on a number of other areas that involve significant judgement
and estimates, including goodwill and intangible assets and the Group’s overall going concern assessment.
Collectively, the work performed at all levels, as described above, accounted for 81% of consolidated net
sales revenue, 76% of consolidated profit before tax and 87% of consolidated total assets of the Group,
which gave us sufficient and appropriate audit evidence for our opinion on the financial statements.
The impact of climate risk on our audit
As part of our audit, we also made inquiries of management to understand the process adopted to assess
the extent of the potential impact of climate change risk on the financial statements. In addition, we read
the minutes of the committees in place to assess climate risk and the additional reporting made by the
entity on climate. Management considers that climate change does not give rise to a potential material
financial statement impact. We used our knowledge of the Group to evaluate management’s assessment,
and we remained alert when performing our audit procedures for any indicators of the impact of climate risk
on the financial statements. By their nature the financial statements present historical information which
does not fully capture future events. We did determine that the key areas in the financial statements that
are more likely to be materially impacted by climate change are those areas that depend on estimated
future cash flows. We particularly considered the relevant assumptions made in the future cash flow
forecasts prepared by management and used in their impairment analyses and going concern assessment.
Our procedures did not identify any material impact on the financial statements for the year ended
31 December 2024. Whilst the Group has started to quantify some of the impacts, the future estimated
financial impacts of climate risk are clearly uncertain given the medium to long term timeframes involved
and their dependency on how governments, global markets, corporations and society respond to
the issue of climate change and the speed of technological advancements that may be necessary.
Accordingly, financial statements cannot capture all possible future outcomes as these are not yet known.
Where climate risk relates to a key audit matter our audit response is given in the key audit matters
section of our audit report. We considered the consistency of the disclosures in relation to climate
change made in the other information within the annual report with the financial statements and
knowledge from our audit. We discussed with management and the Audit and Risk Committee the ways
in which climate change disclosures should continue to evolve as there continues to be an increased
level of attention on the reporting of risks associated with climate change.
We were engaged separately to provide independent limited assurance on the Sustainability Statement
and other sustainability-related information reported in the Annual Report. The independent limited
assurance reports, which explain the scope of our work and the limited procedures undertaken are
included in the Annual Report on pages 249 and 352.
Materiality
The scope of our audit was influenced by our application of the concept of materiality. We set certain
quantitative thresholds for materiality. These, together with qualitative considerations, helped us to
determine the scope of our audit and the nature, timing and extent of our audit procedures on the
individual financial statement line items and disclosures, and to evaluate the effect of misstatements,
both individually and in aggregate, on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a
whole, as follows:
Overall group materiality
€56 million (2023: €51 million).
How we determined it
5% of profit before tax
This benchmark has changed compared to the prior year (adjusted
profit before tax).
Rationale for benchmark applied We consider that the income statement remains the principal
measure used by the shareholders in assessing the underlying
performance of the Group. Therefore, an approach to materiality
based on 5% of profit before tax has been applied which is a generally
accepted auditing benchmark. Compared to the prior year, we have
not adjusted this benchmark as there were no items in 2024 which, in
our view, are considered unusual and infrequently occurring in nature.
For each component in the scope of our group audit, we allocated a materiality that is less than our
overall group materiality. The range of materiality allocated across components was from €4.5 million
to €30.0 million.
When planning the audit, we considered if multiple uncorrected and undetected misstatements may
exist which, when aggregated, could exceed our overall materiality level. In order to reduce the risk
of multiple misstatements which could aggregate to this amount to an appropriately low level, we
used a lower level of materiality, known as performance materiality. Specifically, we use performance
materiality in determining the scope of our audit and the nature and extent of our testing of account
balances, classes of transactions and disclosures, for example in determining sample sizes. Our
performance materiality was 75% of overall materiality, amounting to €42 million (2023: €38.3 million).
In determining the performance materiality, we considered a number of factors – the history of
misstatements, risk assessment and aggregation risk and the effectiveness of controls – and
concluded that an amount at the upper end of our normal range was appropriate.
Where the audit identified any items that were not reflected appropriately in the financial information,
we considered these items carefully to assess if they were individually or in aggregate material. We
agreed with the Audit and Risk Committee that we would report to them misstatements identified
exceeding €2.8 million (2023: €2.5 million) as well as misstatements below that amount that, in our view,
warranted reporting for qualitative reasons.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group’s ability to continue to adopt the going
concern basis of accounting included:
• Verification that the cash flow projections used in the goodwill impairment, going concern and
viability assessments were consistent;
• Review of management’s assessment supporting the Group’s ability to continue to adopt the going
concern basis of accounting, ensuring that appropriate severe but plausible downside scenarios,
including those relating to climate change, the geopolitical events involving Russia and Ukraine and
the continued tensions in the Middle East, were considered;
• Assessment of the reasonableness of management’s assumptions used in the cash flow projections;
• Testing of the mathematical integrity of the cash flow forecasts and reconciliation with the Board
approved budget and management’s projections for the subsequent periods;
• Evaluation of the Group’s forecast liquidity for the period under assessment by considering the
Group’s available cash resources, committed undrawn credit facilities and other debt instruments in
place as well as the maturity profile of the Group’s debt. We confirmed the outstanding amounts of
the financing facilities and verified their nature, terms and conditions;
• Consideration of whether climate change is expected to have any significant impact during the
period of the going concern assessment; and
• Evaluation of the appropriateness of the related disclosures provided in the financial statements in
Note 2 ‘Basis of preparation and consolidation’.
Based on the work performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the Group’s ability to continue
as a going concern for a period of at least twelve months from when the financial statements are
authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate. However, because not
all future events or conditions can be predicted, this conclusion is not a guarantee as to the Group’s
ability to continue as a going concern.
In relation to the Group’s reporting on how they have applied the UK Corporate Governance Code, we
have nothing material to add or draw attention to in relation to the directors’ statement in the financial
statements about whether the directors considered it appropriate to adopt the going concern basis
of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements, our auditor’s report thereon and the Swiss statutory reporting, which we obtained prior to
the date of this auditor’s report. The directors are responsible for the other information. Our opinion on
the financial statements does not cover the other information and, accordingly, we do not express an
audit opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If we identify an apparent material inconsistency or material misstatement,
we are required to perform procedures to conclude whether there is a material misstatement of the
financial statements or a material misstatement of the other information. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report based on these responsibilities.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-
term viability and that part of the corporate governance statement relating to the Group’s compliance
with the provisions of the UK Corporate Governance Code specified for our review. Our additional
responsibilities with respect to the corporate governance statement as other information, are
described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the corporate governance statement is materially consistent with the financial statements
and our knowledge obtained during the audit, and we have nothing material to add or draw attention to
in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and
principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place
to identify emerging risks and an explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate
to adopt the going concern basis of accounting in preparing them, and their identification of any
material uncertainties relating to the Group’s ability to continue to do so over a period of at least
twelve months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the Group’s prospects, the period this
assessment covers and why the period is appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the Group will be
able to continue in operation and meet its liabilities as they fall due over the period of its assessment,
including any related disclosures drawing attention to any necessary qualifications or assumptions.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG continued
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Our review of the directors’ statement regarding the longer-term viability of the Group was
substantially less in scope than an audit and only consisted of making inquiries and considering the
directors’ process supporting their statement; checking that the statement is in alignment with the
relevant provisions of the UK Corporate Governance Code; and considering whether the statement
is consistent with the financial statements and our knowledge and understanding of the Group and
its environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the
following elements of the corporate governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for the members to assess the Group’s
position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and
internal control systems; and
• The section of the Annual Report describing the work of the Audit and Risk Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement
relating to the Group’s compliance with the Code does not properly disclose a departure from a
relevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ Responsibilities in the Annual Report, the
directors are responsible for the preparation of the financial statements in accordance with the
applicable framework and for being satisfied that they give a true and fair view. The directors are also
responsible for such internal control as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.
Based on our understanding of the Group and industry, we considered those laws and regulations
that have a direct impact on the financial statements such as the corporate regulations arising from
its listings on the London Stock Exchange and Athens Exchange, international sanctions, tax laws and
regulations applicable to Coca-Cola HBC and its subsidiaries and regulations relating to unethical and
prohibited business practices. We evaluated management’s incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk of override of controls), and determined that
the principal risks were related to areas where management made subjective judgements in respect
of significant accounting estimates that involved making assumptions and considering future events
that are inherently uncertain. The group engagement team shared this risk assessment with the
component auditors so that they could include appropriate audit procedures in response to such risks
in their work. Audit procedures performed by the group engagement team and/or component auditors
included:
• Inquiries of management, internal audit, internal legal counsel, management’s experts, where
relevant, including consideration of known or suspected instances of non-compliance with laws and
regulations and fraud;
• Evaluation and testing of the operating effectiveness of management’s controls designed to prevent
and detect irregularities;
• Assessment of matters reported on the Group’s whistleblowing helpline and the results of
management’s investigation of such matters to the extent they related to financial reporting;
• Reading the minutes of Board meetings to identify any inconsistencies with other information
provided by management;
• Challenging assumptions and judgements made by management in significant accounting estimates
(because of the risk of management bias), in particular in relation to the key audit matters;
• Inspecting correspondence with legal advisors and internal audit reports in so far as they related to
the financial statements;
• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our
testing; and
• Identifying and testing journal entries, in particular any entries posted with unusual account
combinations, journal entries posted by senior management and consolidation entries.
There are inherent limitations in the audit procedures described above. We are less likely to become
aware of instances of non-compliance with laws and regulations that are not closely related to events
and transactions reflected in the financial statements. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery or intentional misrepresentations,
or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances,
possibly using data auditing techniques. However, it typically involves selecting a limited number of
items for testing, rather than testing complete populations. We will often seek to target particular items
for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable
us to draw a conclusion about the population from which the sample is selected.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, by designing and performing audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies and methods used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business units within the Group as a basis of forming
an opinion on the financial statements. We are responsible for the direction, supervision and review
of the audit work performed for the purposes of the Group audit. We remain solely responsible for
our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit. Those charged with governance are responsible for
overseeing the Group’s financial reporting process.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current year and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Use of this report
This report, including the opinions, has been prepared for and only for Coca-Cola HBC AG for the
purpose of compliance with the Disclosure Guidance and Transparency Rules sourcebook and the
Listing Rules of the FCA and for no other purpose. We do not, in giving these opinions, accept or
assume responsibility for any other purpose or to any other person to whom this report is shown or
into whose hands it may come, including without limitation under any contractual obligations of the
company, save where expressly agreed by our prior consent in writing.
Partner responsible for the audit
The engagement partner on the audit resulting in this independent auditor’s report is Fotis Smyrnis.
Other required reporting
Appointment
We have been the Group’s auditors since 2003 and following a tender process that the Group
conducted in 2015, at the recommendation of the Audit and Risk Committee, we were reappointed by
the directors on 11 December 2015 to audit the financial statements for the year ended 31 December
2017. Our appointment has been continuously renewed by the decisions of the annual general
meetings of shareholders for the subsequent financial periods.
Assurance Report on the European Single Electronic Format pursuant to the Athens Exchange
listing requirements
Subject matter
We undertook the reasonable assurance engagement to examine the digital files of Coca-Cola
HBC, which were compiled in accordance with the European Single Electronic Format (ESEF),
and which include the financial statements for the year ended December 31, 2024, in XHTML
format 549300EFP3TNG7JGVE49‑2024‑12‑31-en.xhtml, as well as the intended XBRL file
549300EFP3TNG7JGVE49‑2024‑12‑31-en.zip with the appropriate markup, on the aforementioned
consolidated financial statements , including other explanatory information (Notes to the financial
statements), (hereinafter referred to as the “Subject Matter”), in order to determine that it was
prepared in accordance with the requirements set out in the Applicable Criteria section.
Applicable Criteria
The Applicable criteria for the European Single Electronic Format (ESEF) are defined by the European
Commission Delegated Regulation (EU) 2019/815, as amended by Regulation (EU) 2020/1989
(hereinafter ‘ESEF Regulation’) and the 2020 / C 379/01 Interpretative Communication of the European
Commission of 10 November 2020, as provided by the Greek Law 3556/2007 and the relevant
announcements of the Hellenic Capital Market Commission and the Athens Exchange.
In summary, these criteria provide, inter alia, that:
• All annual financial reports should be prepared in XHTML format.
• For consolidated financial statements in accordance with International Financial Reporting
Standards, the financial information stated in the consolidated balance sheet, the consolidated
income statement, the consolidated statement of comprehensive income, the consolidated
cash flow statement and the consolidated statement of changes in equity, as well as the financial
information included in the other explanatory information, should be marked-up with XBRL ‘tags’
and ‘block tag’, according to the ESEF Taxonomy, as in force. The technical specifications for ESEF,
including the relevant classification, are set out in the ESEF Regulatory Technical Standards.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Responsibilities of the directors
The directors are responsible for the preparation and submission of the consolidated financial statements
of the Group, for the year ended 31 December 2024 in accordance with the requirements set by the ESEF
Regulatory Framework, as well as for those internal controls that management determines as necessary,
to enable the compilation of digital files free of material error due to either fraud or error.
Auditor’s responsibilities
Our responsibility is to issue this Report regarding the evaluation of the Subject Matter, based on our
work performed, which is described below in the “Scope of Work Performed” section.
Our work was carried out in accordance with International Standard on Assurance Engagements 3000
(Revised) “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”
(hereinafter “ISAE 3000”).
ISAE 3000 requires that we plan and perform our work to obtain reasonable assurance about the evaluation
of the Subject Matter in accordance with the Applicable Criteria. In the context of the procedures performed,
we assess the risk of material misstatement of the information related to the Subject Matter.
We believe that the evidence we have obtained is sufficient and appropriate and supports the
conclusion expressed in this assurance report.
Code of Conduct and quality management
We are independent of the Group, throughout the duration of this engagement and have complied
with the requirements of the International Code of Ethics for Professional Accountants (including
International Independence Standards) issued by the International Ethics Standards Board for
Accountants (‘IESBA Code’), and the FRC’s Ethical Standard, as applicable to listed public interest
entities, and we have fulfilled our ethical responsibilities in accordance with these requirements.
Our audit firm applies International Standard on Quality Management (ISQM) 1 “Quality Management
for Firms that Perform Audits or Reviews of Financial Statements or Other Assurance or Relates
Services Engagements” and consequently maintains a comprehensive quality management system
that includes documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Scope of work performed
The assurance work we performed covers the subjects included in the No. 214/4/11.02.2022 Decision
of the Hellenic Accounting and Auditing Standards Oversight Board (HAASOB) and in the ‘Guidelines
in relation to the work and assurance report of Certified Public Accountants on the European Single
Electronic Format (ESEF) of issuers with securities listed on a regulated market in Greece’ as issued
by the Institute of Certified Public Accountants of Greece on 14/02/2022, so as to obtain reasonable
assurance that the consolidated financial statements of the Group prepared by management comply,
in all material respects, with the Applicable Criteria.
Inherent limitations
Our work covered the items listed in the ‘Scope of work performed’ section to obtain reasonable
assurance based on the procedures described. In this context, the work we performed could not
absolutely ensure that all matters that could be considered material weaknesses would be revealed.
Conclusion
Based on the procedures performed and the evidence obtained, we conclude that the
consolidated financial statements of the Group for the year ended 31 December 2024, in XHTML
file format 549300EFP3TNG7JGVE49‑2024‑12‑31-en.xhtml, as well as the provided XBRL file
549300EFP3TNG7JGVE49‑2024‑12‑31-en.zip with the appropriate marking up, on the aforementioned
consolidated financial statements, including the other explanatory information, have been prepared,
in all material respects, in accordance with the requirements of the Applicable Criteria.
Other matters
Swiss statutory reporting requirements
PwC Switzerland has reported separately on the Group and Company financial statements of Coca-
Cola HBC AG for the year ended 31 December 2024 for Swiss statutory purposes. The reports are
available in pages 318 to 323.
ESEF Regulatory Technical Standard pursuant to the London Stock Exchange listing requirements
The Group is required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules
to include these financial statements in an annual financial report prepared under the structured digital
format required by DTR 4.1.15R – 4.1.18R and filed on the National Storage Mechanism of the Financial
Conduct Authority. This auditor’s report provides no assurance over whether the structured digital
format annual financial report has been prepared in accordance with those requirements which may
differ from the ESEF as defined in section ‘Other required reporting’ above.
Fotis Smyrnis
the Certified Auditor, Reg. No. 52861
for and on behalf of PricewaterhouseCoopers S.A.
Certified Auditors, Reg. No. 113
Athens, Greece
14 March 2025
Notes:
(a) The maintenance and integrity of the Coca-Cola HBC AG website is the responsibility of the directors; the work carried out by the auditors
does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have
occurred to the financial statements since they were initially presented on the website.
(b) Legislation in the UK, Greece and Switzerland governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Independent auditor’s report to the General Meeting of Coca-Cola HBC AG continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Consolidated financial statements
Consolidated income statement
For the year ended 31 December
The accompanying notes form an integral part of these consolidated financial statements.
Consolidated statement of comprehensive income
For the year ended 31 December
Note
2024
€ million
2023
€ million
Net sales revenue
6, 7
10,754.4
10,184.0
Cost of goods sold
(6,876.9)
(6,626.6)
Gross profit
3,877.5
3,557.4
Operating expenses
8
(2,705.7)
(2,613.5)
Share of results of integral equity method investments
15
13.6
9.7
Operating profit
6
1,185.4
953.6
Finance income
106.2
55.7
Finance costs
(166.7)
(104.0)
Finance costs, net
9
(60.5)
(48.3)
Share of results of non-integral equity method investments
15
3.1
5.0
Profit before tax
1,128.0
910.3
Tax
10
(308.3)
(274.6)
Profit after tax
819.7
635.7
Attributable to:
Owners of the parent
820.6
636.5
Non-controlling interests
(0.9)
(0.8)
819.7
635.7
Basic and diluted earnings per share (€)
11
2.25
1.73
Note
2024
€ million
2023
€ million
Profit after tax
819.7
635.7
Other comprehensive income:
Items that may be subsequently reclassified
to income statement:
Cost of hedging
24
(2.3)
(7.1)
Net gain on cash flow hedges
24
10.8
19.7
Foreign currency translation losses
12
(209.5)
(484.6)
Share of other comprehensive loss of equity
method investments
12, 15
(4.6)
(11.7)
Income tax relating to items that may be subsequently
reclassified to income statement
12
1.0
(3.0)
(204.6)
(486.7)
Items that will not be subsequently reclassified
to income statement:
Valuation (loss)/gain on equity investments at fair value
through other comprehensive income
12
(0.2)
0.4
Actuarial gains/(losses)
12
1.0
(16.4)
Income tax relating to items that will not be subsequently
reclassified to income statement
12
0.1
1.9
0.9
(14.1)
Other comprehensive loss for the year, net of tax
12
(203.7)
(500.8)
Total comprehensive income for the year
616.0
134.9
Total comprehensive income attributable to:
Owners of the parent
617.8
141.3
Non-controlling interests
(1.8)
(6.4)
616.0
134.9
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Consolidated financial statements continued
Note
2024
€ million
2023
€ million
Assets
Intangible assets
13
2,506.7
2,569.8
Property, plant and equipment
14
3,197.3
3,057.1
Equity method investments
15
197.6
197.0
Other financial assets
24
59.7
23.3
Deferred tax assets
10
40.9
41.5
Other non-current assets
18
88.8
81.9
Total non-current assets
6,091.0
5,970.6
Inventories
17
863.9
773.3
Trade, other receivables and assets
18
1,238.2
1,188.0
Other financial assets
24, 25
901.7
667.9
Current tax assets
10.5
17.1
Cash and cash equivalents
25
1,548.1
1,260.6
4,562.4
3,906.9
Assets classified as held for sale
19
0.3
3.3
Total current assets
4,562.7
3,910.2
Total assets
10,653.7
9,880.8
Note
2024
€ million
2023
€ million
Liabilities
Borrowings
25
3,091.9
2,476.4
Other financial liabilities
24
9.9
5.7
Deferred tax liabilities
10
220.7
250.5
Provisions and employee benefits
21
107.1
109.1
Non-current tax liabilities
10
5.3
–
Other non-current liabilities
8.0
5.1
Total non-current liabilities
3,442.9
2,846.8
Borrowings
25
888.7
948.1
Other financial liabilities
24
19.3
67.3
Trade and other payables
20
2,670.4
2,479.1
Provisions and employee benefits
21
191.1
199.1
Current tax liabilities
138.3
153.7
Total current liabilities
3,907.8
3,847.3
Total liabilities
7,350.7
6,694.1
Equity
Share capital
26
2,032.1
2,030.3
Share premium
26
2,214.8
2,555.7
Group reorganisation reserve
26
(6,472.1)
(6,472.1)
Treasury shares
26
(298.5)
(144.1)
Exchange equalisation reserve
26
(1,922.1)
(1,708.9)
Other reserves
26
115.1
272.1
Retained earnings
7,536.4
6,559.8
Equity attributable to owners of the parent
3,205.7
3,092.8
Non-controlling interests
97.3
93.9
Total equity
3,303.0
3,186.7
Total equity and liabilities
10,653.7
9,880.8
Consolidated balance sheet
As at 31 December
The accompanying notes form an integral part of these consolidated financial statements.
Coca-Cola HBC Integrated Annual Report 2024
260
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Attributable to owners of the parent
Share capital
€ million
Share
premium
€ million
Group
reorganisation
reserve
€ million
Treasury
shares
€ million
Exchange
equalisation
reserve
€ million
Other
reserves
€ million
Retained
earnings
€ million
Total
€ million
Non-
controlling
interests
€ million
Total equity
€ million
Balance as at 1 January 2023
2,024.3
2,837.4
(6,472.1)
(131.2)
(1,218.2)
292.5
5,949.6
3,282.3
103.3
3,385.6
Shares issued to employees exercising stock options
6.0
8.2
–
–
–
–
–
14.2
–
14.2
Share-based compensation:
Performance shares
–
–
–
–
–
20.4
–
20.4
–
20.4
Movement in shares held for equity compensation plan
–
–
–
–
–
0.2
–
0.2
–
0.2
Appropriation of reserves
–
–
–
29.7
–
(25.0)
(4.7)
–
–
–
Purchase of shares held by non-controlling interests
–
–
–
–
–
–
(9.9)
(9.9)
(2.7)
(12.6)
Acquisition of treasury shares
–
–
–
(42.6)
–
–
–
(42.6)
–
(42.6)
Dividends
–
(289.9)
–
–
–
–
2.7
(287.2)
(0.3)
(287.5)
Transfer of cash flow hedge reserve, including cost of hedging to inventories, net of tax1
–
–
–
–
–
(25.9)
–
(25.9)
–
(25.9)
2,030.3
2,555.7
(6,472.1)
(144.1) (1,218.2)
262.2
5,937.7
2,951.5
100.3
3,051.8
Profit for the year, net of tax
–
–
–
–
–
–
636.5
636.5
(0.8)
635.7
Other comprehensive loss for the year, net of tax
–
–
–
–
(490.7)
9.9
(14.4)
(495.2)
(5.6)
(500.8)
Total comprehensive income for the year, net of tax2
–
–
–
–
(490.7)
9.9
622.1
141.3
(6.4)
134.9
Balance as at 31 December 2023
2,030.3
2,555.7
(6,472.1)
(144.1) (1,708.9)
272.1
6,559.8
3,092.8
93.9
3,186.7
Shares issued/granted to employees exercising stock options
1.8
2.0
–
5.2
–
(2.4)
–
6.6
–
6.6
Share-based compensation:
Performance shares
–
–
–
–
–
15.6
–
15.6
–
15.6
Movement in shares held for equity compensation plan
–
–
–
–
–
0.4
–
0.4
–
0.4
Appropriation of reserves
–
–
–
23.4
–
(183.2)
159.8
–
–
–
Purchase and dilution of shares held by non-controlling interests
–
–
–
–
–
–
(8.1)
(8.1)
5.2
(2.9)
Acquisition of treasury shares
–
–
–
(183.0)
–
–
–
(183.0)
–
(183.0)
Dividends
–
(342.9)
–
–
–
–
3.2
(339.7)
–
(339.7)
Transfer of cash flow hedge reserve, including cost of hedging to inventories, net of tax3
–
–
–
–
–
3.3
–
3.3
–
3.3
2,032.1
2,214.8
(6,472.1)
(298.5) (1,708.9)
105.8
6,714.7
2,587.9
99.1
2,687.0
Profit for the year, net of tax
–
–
–
–
–
–
820.6
820.6
(0.9)
819.7
Other comprehensive loss for the year, net of tax
–
–
–
–
(213.2)
9.3
1.1
(202.8)
(0.9)
(203.7)
Total comprehensive income for the year, net of tax4
–
–
–
–
(213.2)
9.3
821.7
617.8
(1.8)
616.0
Balance as at 31 December 2024
2,032.1
2,214.8
(6,472.1)
(298.5) (1,922.1)
115.1
7,536.4
3,205.7
97.3
3,303.0
1.
The amount included in other reserves of €25.9 million for 2023 represents the cash flow hedge reserve, including cost of hedging, transferred to inventories of €30.8 million gain, and the deferred tax expense thereof amounting to €4.9 million.
2.
The amount included in the exchange equalisation reserve of €490.7 million loss for 2023 represents the exchange loss attributable to owners of the parent, including €11.7 million loss relating to the share of other comprehensive income of equity method investments.
The amount of other comprehensive income, net of tax included in other reserves of €9.9 million gain for 2023 consists of cash flow hedges gain of €12.6 million, valuation gains of €0.4 million on equity investments at fair value through other comprehensive income and the deferred tax expense
thereof amounting to €3.1 million.
The amount included in retained earnings of €622.1 million gain attributable to owners of the parent comprises profit for the year, net of tax of €636.5 million, actuarial losses of €16.4 million and the deferred tax income thereof amounting to €2.0 million.
The amount of €6.4 million loss included in non-controlling interests for 2023 represents the exchange loss attributable to non-controlling interests of €5.6 million, and the share of non-controlling interests in profit for the year, net of tax of €0.8 million loss.
3.
The amount included in other reserves of €3.3 million for 2024 represents the cash flow hedge reserve, including cost of hedging, transferred to inventories of €4.0 million loss, and the deferred tax income thereof amounting to €0.7 million.
4.
The amount included in the exchange equalisation reserve of €213.2 million loss for 2024 represents the exchange loss attributable to owners of the parent, including €4.6 million loss relating to the share of other comprehensive income of equity method investments.
The amount of other comprehensive income, net of tax included in other reserves of €9.3 million gain for 2024 consists of cash flow hedges gain of €8.5 million, valuation losses of €0.2 million on equity investments at fair value through other comprehensive income and the deferred tax
income thereof amounting to €1.0 million.
The amount included in retained earnings of €821.7 million gain attributable to owners of the parent comprises profit for the year, net of tax of €820.6 million, actuarial gains of €1.0 million and the deferred tax income thereof amounting to €0.1 million.
The amount of €1.8 million loss included in non-controlling interests for 2024 represents the exchange loss attributable to the non-controlling interests of €0.9 million, and the share of non-controlling interests in profit for the year, net of tax of €0.9 million loss.
For further details, refer to Note 12 ‘Components of other comprehensive income’, Note 23 ‘Business combinations and purchases of shares held by non-controlling interests’, Note 24 ‘Financial risk management and financial instruments’, Note 26 ‘Equity’ and Note 28 ‘Share-based payments’.
The accompanying notes form an integral part of these consolidated financial statements.
Consolidated statement of changes in equity
Consolidated financial statements continued
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Note
2024
€ million
2023
€ million
Operating activities
Profit after tax
819.7
635.7
Finance costs, net
9
60.5
48.3
Share of results of non-integral equity method investments
15
(3.1)
(5.0)
Tax charged to the income statement
10
308.3
274.6
Depreciation of property, plant and equipment including
right-of-use assets
14, 16
374.2
385.1
Impairment of property, plant and equipment including
right-of-use assets
14
21.5
14.8
Employee performance shares
15.6
20.4
Amortisation of intangible assets
13
1.1
1.4
Impairment of intangible assets
13
–
112.5
1,597.8
1,487.8
Share of results of integral equity method investments
15
(13.6)
(9.7)
Gain on disposals of non-current assets
8
(4.5)
(1.3)
Increase in inventories
(150.0)
(142.6)
Increase in trade and other receivables
(71.7)
(212.7)
Increase in trade and other payables
322.5
491.0
Tax paid
(288.6)
(225.8)
Net cash inflow from operating activities
1,391.9
1,386.7
Investing activities
Payments for purchases of property, plant and equipment
(615.4)
(610.7)
Proceeds from sales of property, plant and equipment
8.6
7.2
Payment for business combinations, net of cash acquired
23
(1.5)
(180.4)
Receipts from integral equity method investments
27
11.7
6.7
Receipts from non-integral equity method investments
27
2.2
7.0
Note
2024
€ million
2023
€ million
Net (payments for)/proceeds from investments in financial
assets at amortised cost
(561.9)
473.5
Net proceeds from investments in financial assets at fair
value through profit or loss
259.9
–
Payments for investments in financial assets at fair value
through other comprehensive income
(7.0)
(5.9)
Loans to related parties
(8.0)
(4.7)
Repayments of loans by related parties
0.9
0.5
Interest received
89.6
38.0
Net cash outflow from investing activities
(820.9)
(268.8)
Financing activities
Proceeds from shares issued/granted to employees
exercising stock options
26
6.6
14.2
Payments for purchases of shares held by non-controlling
interests
23
(2.9)
(12.6)
Acquisition of treasury shares
26
(183.0)
(42.6)
Proceeds from borrowings
25
1,265.2
136.4
Repayments of borrowings
25
(748.5)
(89.7)
Principal repayments of lease obligations
25
(60.8)
(59.1)
Dividends paid to owners of the parent
26
(339.7)
(287.2)
Dividends paid to non-controlling interests
–
(0.2)
(Payments for)/proceeds from settlement of derivatives and
funded forward contracts regarding financing activities
25
(42.0)
4.6
Interest paid
25
(100.4)
(76.2)
Net cash outflow from financing activities
(205.5)
(412.4)
Net increase in cash and cash equivalents
365.5
705.5
Movement in cash and cash equivalents
Cash and cash equivalents as at 1 January
1,260.6
719.9
Net increase in cash and cash equivalents
365.5
705.5
Effect of changes in exchange rates
(78.0)
(164.8)
Cash and cash equivalents as at 31 December
25
1,548.1
1,260.6
Consolidated cash flow statement
For the year ended 31 December
Consolidated financial statements continued
The accompanying notes form an integral part of these consolidated financial statements.
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Notes to the consolidated financial statements
1. General information
Coca-Cola HBC AG and its subsidiaries (the ‘Group’ or ‘Coca-Cola HBC’ or ‘the Company’) are
principally engaged in the production, sales and distribution of primarily non-alcoholic ready-to-drink
beverages, under franchise from The Coca-Cola Company, across Nigeria, Egypt and 26 countries
in Europe; while in Russia, the Group operates under a business model focusing on local brands.
Information on the Group’s operations by segment is included in Note 6.
On 11 October 2012, Coca-Cola HBC, a Swiss stock corporation (Aktiengesellschaft/Société Anonyme)
incorporated by Kar-Tess Holding (a related party of the Group, refer to Note 27), announced a voluntary
share exchange offer to acquire all outstanding ordinary registered shares and all American depositary
shares of Coca-Cola Hellenic Bottling Company S.A. As a result of the successful completion of this offer,
on 25 April 2013, Coca-Cola HBC acquired 96.85% of the issued Coca-Cola Hellenic Bottling Company S.A.
shares, including shares represented by American depositary shares, and became the new parent company
of the Group. On 17 June 2013, Coca-Cola HBC completed its statutory buyout of the remaining shares
of Coca-Cola Hellenic Bottling Company S.A. that it did not acquire upon completion of its voluntary share
exchange offer. Consequently, Coca-Cola HBC acquired 100% of Coca-Cola Hellenic Bottling Company
S.A. which was eventually delisted from the Athens Exchange, from the London Stock Exchange where it had
a secondary listing and from the New York Stock Exchange where American depositary shares were listed.
The shares of Coca-Cola HBC started trading in the London Stock Exchange (Ticker symbol: CCH)
and on the Athens Exchange (Ticker symbol: EEE), and regular way trading in Coca-Cola HBC American
depositary shares commenced on the New York Stock Exchange (Ticker symbol: CCH) on 29 April 2013. On
24 July 2014, the Group proceeded to the delisting of its American depositary shares from the New York
Stock Exchange and terminated its reporting obligations under the US Securities Exchange Act of 1934.
The deregistration of Coca-Cola HBC shares under the US Securities Exchange Act of 1934 and the
termination of its reporting obligations became effective on 3 November 2014.
2. Accounting information
Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and in
compliance with Swiss law.
These consolidated financial statements were approved for issue by the Board of Directors on 13
March 2025 and are expected to be verified at the Annual General Meeting to be held on 23 May 2025.
Going concern
The consolidated financial statements have been prepared on a going concern basis. As part of its
assessment, management has considered the Group’s financial performance in the year, its strong
balance sheet and liquidity position, including its committed funding facilities, the Group’s quantitative
viability exercise linked to certain of its principal risks, including those relating to climate change, as
detailed on page 190 of the Strategic Report, as well as the geopolitical events involving Russia and
Ukraine, and the continued tensions in the Middle East. Management has reviewed the Group’s financial
forecasts and funding requirements with consideration given to the potential impact of severe but
plausible downside scenarios. Even under these scenarios, the Group’s cash position is still expected
to remain strong over the period of the financial forecasts, considering also that there are mitigating
actions the Group could take, should they be required, by making adjustments to its operating plans
within the normal course of business.
Having considered the outcome of these assessments, management confirms the Group’s ability
to generate cash for a period of 12 months from the date of approval of these consolidated financial
statements and beyond.
Therefore, it is deemed appropriate that the Group continues to adopt the going concern basis for the
preparation of the consolidated financial statements under the historical cost convention, as modified by
the revaluation of financial assets at fair value through profit or loss, investments in equity instruments
classified at fair value through other comprehensive income and derivative financial instruments.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries as at 31 December 2024. Subsidiaries are those entities over which the Group, directly
or indirectly, has control. The Group controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through power
over the entity. Subsidiary undertakings are consolidated from the date on which control is transferred
to the Group and cease to be consolidated from the date on which control is transferred out of the
Group. The subsidiaries’ accounting policies are consistent with policies adopted by the Group. All inter-
company transactions and balances between Group entities are eliminated on consolidation.
Transactions with non-controlling interests that do not result in loss of control are accounted for as
equity transactions – that is, as transactions with the owners in their capacity as owners. The difference
between fair value of any consideration paid and the relevant acquired share of the carrying value of net
assets of the subsidiary is recorded in equity.
When the Group ceases to have control over a subsidiary, it derecognises the related assets and
liabilities, non-controlling interests and any other components of equity, while any resulting gain or loss is
recognised in the income statement. Any retained interest in the former subsidiary is remeasured to its
fair value at the date when control is lost, with the change in carrying amount recognised in the income
statement. This fair value is the initial carrying amount for the purposes of subsequently accounting for
the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group
had directly disposed of the related assets or liabilities. This means that amounts previously recognised
in other comprehensive income, if any, are reclassified to the income statement.
Change in accounting estimate
In 2024, the Group reassessed the useful lives of certain categories of software assets and coffee
machines, driven by relevant business developments that affected the anticipated period of usage of
these assets. As a result, effective 1 January 2024, the expected useful life of these specific categories
was extended by three to six years, while the resulting decrease of depreciation expense in the current
year was insignificant.
Changes in comparative information
Comparative information of the consolidated balance sheet has been revised to reflect the
measurement period adjustment in connection with the acquisition of Finlandia (refer to Note 23).
More specifically: ‘Intangible assets‘, ‘Trade and other payables’ and ‘Deferred tax liabilities’ as at
31 December 2023 appear increased by €1.2 million, €1.0 million and €0.2 million respectively,
compared to the information disclosed in the 2023 Integrated Annual Report.
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Notes to the consolidated financial statements continued
3. Foreign currencies and translation
The individual financial statements of each subsidiary are presented in the currency of the primary
economic environment in which the subsidiary operates (its functional currency). For the purposes
of the consolidated financial statements, the results and financial position of each subsidiary are
expressed in Euro, which is the Group’s presentation currency.
The assets and liabilities of foreign subsidiaries are translated into Euro at the exchange rates prevailing
at the balance sheet date. The results and cash flows of foreign subsidiaries are translated into Euro
using the average monthly exchange rates, being a reasonable approximation of the rates prevailing
on the transaction dates. The exchange differences arising on translation are recognised in other
comprehensive income and included in the exchange equalisation reserve. On disposal of a foreign
subsidiary, accumulated exchange differences are recognised in the income statement as a component
of the gain or loss on disposal.
Transactions in foreign currencies are recorded at the rates ruling at the date of transaction. Monetary
assets and liabilities denominated in foreign currencies are remeasured at the rates of exchange ruling
at the balance sheet date. All gains and losses arising on remeasurement are included in the income
statement, except for exchange differences arising on assets and liabilities classified as cash flow
hedges which are deferred in equity until the occurrence of the hedged transaction, at which time they
are recognised in the income statement. Share capital and share premium denominated in a currency
other than the functional currency are initially recorded at the spot rate of the date of issue but are
not retranslated.
The principal exchange rates used for translation purposes in respect of one Euro are:
Average
2024
Average
2023
Closing
2024
Closing
2023
US Dollar
1.08
1.08
1.04
1.11
UK Sterling
0.85
0.87
0.83
0.87
Polish Zloty
4.31
4.54
4.27
4.32
Nigerian Naira
1,602.37
695.06
1,614.99
1,056.96
Hungarian Forint
394.86
381.75
410.56
382.03
Swiss Franc
0.95
0.97
0.94
0.94
Russian Rouble
100.14
92.40
107.50
101.68
Romanian Leu
4.97
4.95
4.98
4.98
Ukrainian Hryvnia
43.43
39.54
43.75
41.63
Czech Koruna
25.12
24.00
25.20
24.69
Serbian Dinar
117.09
117.25
116.97
117.16
Egyptian Pound
48.75
33.15
52.92
34.16
As a result of the local authorities’ efforts to liberalise the foreign exchange markets and restore
liquidity in foreign currency, the Nigerian Naira and Egyptian Pound depreciated against the US Dollar in
2024. The Group is continuously monitoring the situation to ensure that timely actions are undertaken
as planned to minimise the adverse impact from the currency devaluation to the Group’s business in
Nigeria and Egypt.
4. Accounting pronouncements
a) Accounting pronouncements adopted in 2024
The Group has adopted the following amendments to standards which were endorsed by the EU,
that are relevant to its operations and effective for accounting periods beginning on 1 January 2024:
• Classification of Liabilities as Current or Non-current and Non-Current liabilities with covenants –
Amendments to IAS 1;
• Supplier finance arrangements – Amendments to IAS 7 and IFRS 7. As a result of the adoption of the
amendments to IAS 7 and IFRS 7, the Group has provided additional disclosures for liabilities under
supplier finance arrangements as well as the associated cash flows in Note 20; and
• Lease Liability in a Sale and Leaseback – Amendments to IFRS 16.
The adoption of these amendments to standards did not have a material impact on the consolidated
financial statements of the Group.
b) Accounting pronouncements not yet adopted
At the date of approval of these consolidated financial statements, the following standards and
amendments to standards relevant to the Group’s operations were issued but not yet effective and not
early-adopted:
• The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability – Amendments to IAS 21;
• Presentation and Disclosure in Financial Statements – IFRS 18 (not endorsed by the EU);
• Amendments to the Classification and Measurement of Financial Instruments – Amendments to
IFRS 9 and IFRS 7 (not endorsed by the EU);
• Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 (not
endorsed by the EU); and
• Annual improvements to IFRS – Volume 11 (not endorsed by the EU).
The above standards and amendments to standards are not expected to have a material impact on the
consolidated financial statements of the Group.
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5. Critical accounting estimates and judgements
In conformity with IFRS, the preparation of the consolidated financial statements for Coca-Cola
HBC requires management to make estimates and judgements that affect the reported amounts
of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities
in the consolidated financial statements and accompanying notes. Although these estimates and
judgements are based on management’s knowledge of current events and actions that may be
undertaken in the future, actual results may ultimately differ from estimates.
Estimates
The key items concerning the future and other key sources of estimation uncertainty at the reporting
date that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are described below:
• Impairment of goodwill and indefinite-lived intangible assets (refer to Note 13); and
• Employee benefits – defined benefit pension plans (refer to Note 21).
Judgements
In the process of applying the Group’s accounting policies, management has made the following
judgements, apart from those involving estimations as described above, which have the most
significant effect on the amounts recognised in the consolidated financial statements:
• Joint arrangements (refer to Note 15).
6. Segmental analysis
The Group has essentially one business, being the production, sale and distribution of primarily non-
alcoholic, ready-to-drink beverages across 29 countries. The Group’s markets are aggregated in
reportable segments as follows:
Established
markets:
Austria, Cyprus, Greece, Italy, Northern
Ireland, the Republic of Ireland, Switzerland
and Global exports1.
Developing
markets:
Croatia, Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Poland,
Slovakia and Slovenia.
Emerging
markets:
Armenia, Belarus, Bosnia and Herzegovina,
Bulgaria, Egypt, Moldova, Montenegro,
Nigeria, North Macedonia, Romania, the
Russian Federation, Serbia (including the
Republic of Kosovo) and Ukraine.
1.
The Global exports market refers to the export business for Finlandia and Three Cents in countries where the Group does not have
operations in connection with non-alcoholic ready-to-drink beverages.
The Group’s chief operating decision maker is its Executive Leadership Team, which evaluates
performance and allocates resources based on volume, net sales revenue and operating profit. The
Group’s operations in the Established, Developing and Emerging markets have been aggregated on the
basis of their similar economic characteristics, assessed by reference to their net sales revenue per unit
case, as well as disposable income per capita, exposure to political and economic volatility, regulatory
environments, customers and distribution infrastructures. The accounting policies of the reportable
segments are the same as those adopted by the Group.
a) Volume and net sales revenue
The Group’s sales volume in million unit cases2 for the years ended 31 December was as follows:
2024
2023
Established
631.3
628.7
Developing
482.6
471.0
Emerging
1,800.6
1,735.8
Total volume
2,914.5
2,835.5
Net sales revenue per reportable segment for the years ended 31 December is presented in the
graphs below:
Established
€3,501.3 million
Developing
€2,385.2 million
Emerging
€4,867.9 million
2024
€10,754.4 million
Established
€3,358.5 million
Developing
€2,088.6 million
Emerging
€4,736.9 million
2023
€10,184.0 million
Sales or transfers between the Group’s segments are not material, nor are there any customers that
represent more than 10% of net sales revenue for the Group.
Notes to the consolidated financial statements continued
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Supplementary Information
6. Segmental analysis continued
In addition to non-alcoholic, ready-to-drink beverages, as well as coffee and snacks (‘NARTD’), the
Group sells and distributes premium spirits. An analysis of volume and net sales revenue per product
type is presented below for the years ended 31 December:
Volume in million unit cases2:
2024
2023
NARTD
2,907.9
2,831.2
Premium spirits
6.6
4.3
Total volume
2,914.5
2,835.5
Net sales revenue in € million:
NARTD
10,340.1
9,886.1
Premium spirits
414.3
297.9
Total net sales revenue
10,754.4
10,184.0
Net sales revenue from external customers attributed to Switzerland (the Group’s country of domicile),
the Russian Federation, Italy and Poland was as follows for the years ended 31 December:
2024
€ million
2023
€ million
Switzerland
465.8
464.1
The Russian Federation
1,357.3
1,196.4
Italy
1,232.8
1,231.9
Poland
1,158.2
964.3
All countries other than Switzerland, the Russian Federation,
Italy and Poland
6,540.3
6,327.3
Total net sales revenue from external customers
10,754.4
10,184.0
2.
One unit case corresponds to approximately 5.678 litres or 24 servings, being a typically used measure of volume. For premium spirits
volume, one unit case also corresponds to 5.678 litres. For biscuits volume, one unit case corresponds to 1 kilogram. For coffee volume,
one unit case corresponds to 0.5 kilograms or 5.678 litres. Volume data is derived from unaudited operational data.
b) Other income statement items
Year ended 31 December
Note
2024
€ million
2023
€ million
Operating profit:
Established
385.8
379.2
Developing
223.6
152.6
Emerging
576.0
421.8
Total operating profit
1,185.4
953.6
Finance costs:
Established
(21.0)
(16.4)
Developing
(14.9)
(19.5)
Emerging
(85.7)
(52.3)
Corporate3
(198.8)
(141.3)
Inter-segment finance cost
153.7
125.5
Total finance costs
9
(166.7)
(104.0)
Finance income:
Established
5.1
3.0
Developing
3.0
2.4
Emerging
64.9
30.1
Corporate3
186.9
145.7
Inter-segment finance income
(153.7)
(125.5)
Total finance income
9
106.2
55.7
Income tax expense:
Established
(105.6)
(82.2)
Developing
(54.4)
(32.5)
Emerging
(126.2)
(140.1)
Corporate3
(22.1)
(19.8)
Total income tax expense
10
(308.3)
(274.6)
Reconciling items:
Share of results of non-integral equity method investments
15
3.1
5.0
Profit after tax
819.7
635.7
3.
Corporate refers to holding, finance and other non-operating subsidiaries of the Group.
Notes to the consolidated financial statements continued
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6. Segmental analysis continued
Depreciation and impairment of property, plant and equipment, including right-of-use assets, and
amortisation and impairment of intangible assets included in the measure of operating profit were
as follows for the years ended 31 December:
Note
2024
€ million
2023
€ million
Depreciation and impairment of property,
plant and equipment, including right-of-use assets:
Established
(123.4)
(112.7)
Developing
(75.1)
(68.8)
Emerging
(197.2)
(218.4)
Total depreciation and impairment of property,
plant and equipment, including right-of-use assets
14, 16
(395.7)
(399.9)
Amortisation and impairment of intangible assets:
Developing
–
(3.7)
Emerging
(1.1)
(110.2)
Total amortisation and impairment of intangible assets
13
(1.1)
(113.9)
c) Other items
The balance of non-current assets4 attributed to Switzerland (the Group’s country of domicile) and Italy
was as follows as at 31 December:
2024
€ million
2023
€ million
Switzerland
636.8
636.3
Italy
1,236.4
1,170.0
All countries other than Switzerland and Italy
4,059.7
4,047.4
Total non-current assets4
5,932.9
5,853.7
Expenditure on property, plant and equipment per reportable segment was as follows for the years
ended 31 December:
2024
€ million
2023
€ million
Established
148.6
166.0
Developing
95.6
89.5
Emerging5
382.9
367.5
Total expenditure on property, plant and equipment
627.1
623.0
4.
Excluding other financial assets, deferred tax assets, pension plan assets and trade and loans receivable.
5.
Expenditure on property, plant and equipment for 2024 includes €11.7 million (2023: €12.3 million) relating to repayment of borrowings
undertaken to finance the purchase of production equipment by the Group’s subsidiary in Nigeria, classified as ‘Repayments of borrowings’
in the consolidated cash flow statement.
7. Net sales revenue
Accounting policy
The Group essentially produces, sells and distributes primarily non-alcoholic, ready-to-drink
beverages. Under IFRS 15 ‘Revenue from contracts with customers’, the Group recognises revenue
when control of the products is transferred, being when the products are delivered to the customer.
Net sales revenue is measured at the fair value of the consideration received or receivable and is
stated net of sales discounts and consideration paid to customers. These mainly take the form of
promotional incentives and are amortised over the terms of the related contracts as a deduction
in revenue.
The Group provides volume rebates to customers once the quantity of goods purchased during
the period exceeds a threshold specified in the contract. To estimate the variable consideration
for the expected future rebates, the Group uses the most likely amount method and the amount is
recognised in net sales revenue only to the extent that it is highly probable that a significant reversal
in the amount of cumulative revenue recognised will not occur when the uncertainty associated with
the variable consideration is subsequently resolved.
A contract liability is recognised if a payment is received or a payment is due (whichever is earlier)
from a customer before the Group transfers the related goods. Contract liabilities are recognised as
revenue when the Group performs under the contract (i.e. transfers control of the related goods to
the customer).
Net sales revenue includes excise and other duties where the Group acts as a principal but excludes
amounts collected by third parties, such as value-added taxes as these are not included in the
transaction price. The Group assesses these taxes and duties on a jurisdiction-by-jurisdiction basis
to conclude on the appropriate accounting treatment.
Revenue recognised in 2024 that was included in the contract liability balance at the beginning of the
year amounted to €14.7 million (2023: €14.4 million). For contract liabilities as at 31 December 2024 and
2023, refer to Note 20.
For an analysis of net sales revenue per reportable segment, refer to Note 6.
For the contributions received from The Coca-Cola Company, which are offset against consideration
paid to customers, refer to Note 27.
Notes to the consolidated financial statements continued
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8. Operating expenses
Operating expenses for the years ended 31 December comprised:
2024
€ million
2023
€ million
Selling expenses
1,228.1
1,144.4
Delivery expenses
778.8
744.5
Administrative expenses
693.6
709.3
Restructuring costs
3.3
9.0
Acquisition costs (refer to Note 23)
1.9
6.3
Operating expenses
2,705.7
2,613.5
In 2024, operating expenses included a net gain on disposals of non-current assets of €4.5 million
(2023: €1.3 million net gain).
For the contributions received from The Coca-Cola Company, which are offset against expenses for
general marketing programmes, refer to Note 27.
a) Restructuring costs
Accounting policy
Restructuring costs are recorded in a separate line item within operating expenses and comprise
costs arising from significant changes in the way the Group conducts its business, such as
significant supply chain infrastructure changes, outsourcing of activities and centralisation of
processes. Restructuring provisions are recognised only when the Group has a present constructive
obligation, which is when a detailed formal plan identifies the business or part of the business
concerned, the location, function and number of employees affected, a detailed estimate of the
associated costs and an appropriate timeline, including when the employees affected have been
notified of the plan’s main features.
As part of the effort to optimise its cost base and sustain competitiveness in the marketplace, the
Company undertakes restructuring initiatives. The restructuring costs consist primarily of employees’
termination benefits. Restructuring costs per reportable segment for the years ended 31 December
are presented below:
2024
€ million
2023
€ million
Established
(0.1)
0.9
Developing
0.2
1.1
Emerging
3.2
7.0
Total restructuring costs
3.3
9.0
b) Employee costs
Employee costs for the years ended 31 December comprised:
2024
€ million
2023
€ million
Wages and salaries
947.9
910.8
Social security costs
163.8
147.4
Pension and other employee benefits
178.1
178.3
Termination benefits
7.6
12.1
Total employee costs
1,297.4
1,248.6
The average number of full-time equivalent employees in 2024 was 33,018 (2023: 32,747).
Employee costs for 2024 included in operating expenses and cost of goods sold amounted to
€979.2 million and €318.2 million respectively (2023: €940.9 million and €307.7 million respectively).
c) Directors’ and senior management’s remuneration
The total remuneration paid or accrued for Directors and the senior management team for the years
ended 31 December comprised:
2024
€ million
2023
€ million
Salaries and other short-term benefits
23.4
20.4
Performance share awards
8.1
9.3
Pension and post-employment benefits
1.1
0.9
Total remuneration
32.6
30.6
d) Auditor fees
Audit, audit-related and other fees charged in the income statement concerning the auditor of the
consolidated financial statements, PricewaterhouseCoopers S.A. and affiliates, for the years ended
31 December were as follows:
2024
€ million
2023
€ million
Audit fees
5.4
5.3
Audit-related fees
1.1
1.0
Other fees
–
0.1
Total audit and audit-related fees
6.5
6.4
Fees for audit services to firms other than PricewaterhouseCoopers S.A. and affiliates were €0.7 million
for the year ended 31 December 2024 (2023: €0.6 million).
Notes to the consolidated financial statements continued
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9. Finance costs, net
Accounting policy
Interest income and interest expense are recognised using the effective interest rate method,
and are recorded in the income statement within ‘Finance income’ and ‘Finance cost’ respectively.
Interest expense includes finance charges with respect to leases, reclassification of the loss on
the forward starting swaps and the net impact from swaptions recorded in other comprehensive
income (refer to Note 24).
Finance costs, net for the years ended 31 December comprised:
2024
€ million
2023
€ million
Finance income
106.2
55.7
Interest expense
(121.0)
(86.3)
Other finance costs
(2.0)
(1.8)
Net foreign exchange remeasurement losses
(43.7)
(15.9)
Finance costs
(166.7)
(104.0)
Finance costs, net
(60.5)
(48.3)
Other finance costs include commitment fees on loan facilities (for the part not yet drawn down) and
other similar fees. Finance income relates to interest income earned from financial assets that are held
for cash management purposes as well as gain recognised from the fair value measurement of money
market funds.
For the interest expense incurred with respect to leases, refer to Note 16.
10. Taxation
Accounting policy
Tax is recognised in the income statement, except to the extent that it relates to items recognised
in other comprehensive income or in equity. In this case, tax is recognised in other comprehensive
income or directly in equity.
The current income tax expense is calculated on the basis of the tax laws enacted or substantively
enacted at the balance sheet date in the countries where the Group operates and generates taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate, on the basis of amounts expected to be paid to the tax authorities.
Deferred tax is provided using the liability method for all temporary differences arising between
the tax bases of assets and liabilities and their carrying values for financial reporting purposes.
However, the deferred tax liabilities are not recognised if they arise from the initial recognition of
goodwill. Deferred tax is not accounted for if it arises from initial recognition of an asset or liability
in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred tax assets and liabilities are measured at the
tax rates that are enacted or substantively enacted at the balance sheet date. Tax rates enacted
or substantively enacted at the balance sheet date are those that are expected to apply when the
deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised. Deferred tax assets are
recognised for tax losses carried forward to the extent that realisation of the related tax benefit
through the reduction of the future taxes is probable.
Deferred tax is provided on temporary differences arising on investments in subsidiaries,
associates and joint ventures, except where the timing of the reversal of the temporary difference
can be controlled by the Group, and it is probable that the temporary difference will not reverse
in the foreseeable future. This includes taxation in respect of the retained earnings of overseas
subsidiaries only to the extent that, at the balance sheet date, dividends have been accrued as
receivable or a binding agreement to distribute past earnings in future periods has been entered
into by the subsidiary.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to offset
current tax assets against current income tax liabilities and the deferred taxes relate to the same
taxation authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
Notes to the consolidated financial statements continued
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10. Taxation continued
The income tax charge for the years ended 31 December was as follows:
2024
€ million
2023
€ million
Current tax expense
308.7
273.5
Deferred tax (income)/expense
(0.4)
1.1
Income tax expense
308.3
274.6
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the
weighted average tax rate applicable to profits of the consolidated entities as follows:
2024
€ million
2023
€ million
Profit before tax
1,128.0
910.3
Tax calculated at domestic tax rates applicable to profits
in the respective countries
223.0
178.8
Additional local taxes in foreign jurisdictions
27.1
28.2
Tax holidays in foreign jurisdictions
(0.2)
5.4
Expenses non-deductible for tax purposes
40.6
49.6
Income not subject to tax
(1.3)
(0.3)
Changes in tax laws and rates
3.3
(3.2)
Movement of accumulated tax losses
2.5
5.4
Other
13.3
10.7
Income tax expense
308.3
274.6
Effective tax rate
27.3%
30.2%
Non-deductible expenses for tax purposes include marketing and advertising expenses, service fees,
loss allowance on trade receivables, entertainment expenses, certain employee benefits and other
items that, partially or in full, are not deductible for tax purposes in certain of the Group’s jurisdictions.
The Group’s effective tax rate varies depending on the mix of taxable profits by territory, the non-
deductibility of certain expenses, non-taxable income and other one-off tax items across its territories.
The changes in applicable tax rates compared to the previous period are driven by a combination of
blended tax rates and changes in the standard corporate tax rate in certain territories of the Group
(namely Italy, Lithuania, Russia, Nigeria and Switzerland).
The Group is subject to income taxes in numerous jurisdictions. There are many transactions and
calculations for which the ultimate tax determination cannot be assessed with certainty in the ordinary
course of business. The Group recognises a provision for potential cases that might arise in the foreseeable
future based on assessment of the probabilities as to whether additional taxes will be due. Where the final
tax outcome on these matters is different from the amounts that were initially recorded, such differences
will impact the income tax provision in the period in which such determination is made, however, based on
past experience, management expects that any such differences in the next financial year will be immaterial
for the Group. The income tax provision amounted to €72.3 million as at 31 December 2024 (2023: €82.8
million), of which €61.4 million (2023: €72.9 million) is classified in line ‘Current tax liabilities’, €2.3 million
(2023: €0.3 million) in line ‘Current tax assets’, €8.6 million (2023: €nil) in line ‘Deferred tax assets’ and
€nil (2023: €9.6 million) in line ‘Deferred tax liabilities’ of the consolidated balance sheet.
The income tax provision per reportable segment for the years ended 31 December was as follows:
2024
€ million
2023
€ million
Established
15.6
14.8
Developing
24.6
14.3
Emerging
23.6
45.2
Corporate1
8.5
8.5
Total income tax provision
72.3
82.8
1.
Corporate refers to holding, finance and other non-operating subsidiaries of the Group.
OECD Pillar Two Model Rules
The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework
on Base Erosion and Profit Shifting published the Pillar Two Model Rules designed to address the tax
challenges arising from the digitalisation of the global economy. Under Pillar Two legislation1, the Group
may be liable to pay a top-up tax for the difference between its Global Anti-Base Erosion (‘GloBE’)
effective tax rate per jurisdiction and the 15% minimum rate².
As of 31 December 2024, Pillar Two legislation has been enacted or substantively enacted in certain
jurisdictions in which the Group has a presence. In particular, Pillar Two legislation has been enacted or
substantively enacted in Austria, Bulgaria, Croatia, Czech Republic, Finland, Greece, Hungary, Republic
of Ireland, Italy, the Netherlands, Romania, Slovakia, Slovenia, Switzerland and the United Kingdom
(Northern Ireland). In Poland, final legislation has been published and came into force as of 1 January
2025, whereas in Cyprus, final legislation has been published which is in force from 31 December 2023,
however, the Domestic Minimum Top-up Tax (DMTT) will be introduced for financial years starting from
31 December 2024 onwards. In Estonia, Latvia and Lithuania, application of Pillar Two rules has been
deferred based on an exception allowed by the EU Directive.
Notes to the consolidated financial statements continued
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10. Taxation continued
The Group applies the exception to recognising and disclosing information about deferred tax assets and
liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
In accordance with the local legislation in Switzerland, the Income Inclusion Rule (IIR) will be applicable
from 1 January 2025 onwards. In this respect, any potential top-up tax which may arise in a jurisdiction
where the Pillar Two legislation is not applicable for 2024 will be payable from Coca-Cola HBC Holdings
B.V.3, which is located in the Netherlands.
The Group has performed an assessment, for all countries in which it has a presence, of the potential
tax expense arising from Pillar Two rules, including:
• the determination of all Group entities in scope for the Pillar Two rules;
• the assessment of the entities in jurisdictions for which no Pillar Two liability is expected to arise
based on the Country-by-Country Reporting Safe Harbour transitional rules in place; and
• the calculation of the estimated liability for entities in locations where a Pillar Two liability is expected
to arise.
For the above assessment, the financial accounts of the Constituent Entities4 and Joint Ventures5
used in the preparation of the Group’s consolidated financial statements under IFRS for 2024 have
been considered, in order to determine:
• entities eligible for the transitional exceptions based on which no Pillar Two liability is expected
to arise; and
• the Pillar Two liability of entities for which no transitional exception was applicable.
Conclusions on such analysis were also validated using data for the fiscal year ended 31 December 2023.
Based on the assessment described above, considering also the impact of specific adjustments in
the Pillar Two legislation, the Group has recognised an additional income tax expense arising from Pillar
Two rules of €5.3 million, driven by Constituent Entities located in the following jurisdictions: Bosnia-
Herzegovina, Bulgaria, Cyprus, Republic of Ireland, the Republic of Kosovo, Montenegro, Romania and
Moldova, as well as Joint Ventures located in Serbia. This has been recognised within the ‘Tax’ line of the
consolidated income statement and ‘Non-current tax liabilities’ line of the consolidated balance sheet.
Deferred tax assets and liabilities presented in the consolidated balance sheet as at 31 December,
can be further analysed as follows:
Deferred tax assets:
2024
€ million
2023
€ million
To be recovered after 12 months
68.0
52.2
To be recovered within 12 months
88.2
92.3
Gross deferred tax assets
156.2
144.5
Offset of deferred tax
(115.3)
(103.0)
Net deferred tax assets
40.9
41.5
Deferred tax liabilities:
To be settled after 12 months
(321.6)
(330.0)
To be settled within 12 months
(14.4)
(23.5)
Gross deferred tax liabilities
(336.0)
(353.5)
Offset of deferred tax
115.3
103.0
Net deferred tax liabilities
(220.7)
(250.5)
A reconciliation of net deferred tax is presented below:
2024
€ million
2023
€ million
As at 1 January
(209.0)
(227.1)
Taken to the income statement
0.4
(1.1)
Arising from business combinations (refer to Note 23)
–
(28.2)
Taken to other comprehensive income
1.1
(1.1)
Taken directly to equity
(0.7)
4.9
Foreign currency translation
28.4
43.6
As at 31 December
(179.8)
(209.0)
Notes to the consolidated financial statements continued
1.
Pillar Two legislation refers to OECD Global Base Anti-Erosion Rules (OECD Globe Rules) introducing minimum taxation effective on low tax jurisdictions.
2.
The top-up tax is calculated on the GloBE income after deduction of the Substance Based Excluded Income (i.e. after deducting part of the income calculated based on the local personnel costs and local tangible assets as per Pillar Two rules).
3.
Coca-Cola HBC Holdings B.V. qualifies as an Intermediate Parent Entity based on definitions of Pillar Two rules.
4.
Constituent Entities are the entities in scope of the Pillar Two rules, i.e. entities included in the financial statements with full consolidation.
5.
Joint ventures in scope of the Pillar Two rules are the entities whose financial results are reported under the equity method in the consolidated financial statements of the Ultimate Parent Entity and the Ultimate Parent Entity holds directly or indirectly at least 50% of their ownership interests.
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10. Taxation continued
The movements in deferred tax assets and liabilities during the year, without taking into consideration
the offsetting of balances within the same tax jurisdiction where applicable, were as follows:
Deferred tax assets
Provisions
€ million
Pensions and
benefit plans
€ million
Tax losses
carry-
forward
€ million
Book in
excess of tax
depreciation
€ million
Leasing
€ million
Other
deferred tax
assets
€ million
Total
As at 1 January 2023
40.8
10.8
6.6
5.5
30.6
42.0
136.3
Taken to the income statement
(6.5)
2.7
1.5
(0.7)
5.6
6.1
8.7
Arising from business
combinations (refer to Note 23)
–
–
11.2
–
1.3
0.8
13.3
Taken to other
comprehensive income
–
0.8
–
–
–
0.8
1.6
Other movements and foreign
currency translation
(17.7)
0.8
(0.3)
–
(4.3)
6.1
(15.4)
As at 31 December 2023
16.6
15.1
19.0
4.8
33.2
55.8
144.5
Taken to the income statement
7.7
(1.8)
(3.7)
(0.9)
9.4
17.5
28.2
Taken to other
comprehensive income
–
(0.6)
–
–
–
1.5
0.9
Other movements and foreign
currency translation
(16.2)
1.9
2.1
(0.4)
(2.4)
(2.4)
(17.4)
As at 31 December 2024
8.1
14.6
17.4
3.5
40.2
72.4
156.2
Deferred tax liabilities
Tax in excess
of book
depreciation
€ million
Derivative
instruments
€ million
Other
deferred tax
liabilities
€ million
Total
€ million
As at 1 January 2023
(332.8)
(3.0)
(27.6)
(363.4)
Taken to the income statement
(5.8)
(0.4)
(3.6)
(9.8)
Arising from business combinations
(refer to Note 23)
–
–
(41.5)
(41.5)
Taken to other comprehensive income
–
(3.8)
1.1
(2.7)
Taken directly to equity
–
4.9
–
4.9
Other movements and foreign
currency translation
61.7
(0.1)
(2.6)
59.0
As at 31 December 2023
(276.9)
(2.4)
(74.2)
(353.5)
Taken to the income statement
(28.6)
1.6
(0.8)
(27.8)
Taken to other comprehensive income
–
(0.5)
0.7
0.2
Taken directly to equity
–
(0.7)
–
(0.7)
Other movements and foreign
currency translation
38.5
2.0
5.3
45.8
As at 31 December 2024
(267.0)
–
(69.0)
(336.0)
Deferred tax assets recognised for tax losses carry-forward in accordance with the relevant local rules
applying in the Group’s jurisdictions can be analysed as follows:
2024
€ million
2023
€ million
Attributable to tax losses that expire within five years
8.0
5.8
Attributable to tax losses that expire after five years
4.7
11.2
Attributable to tax losses that can be carried forward indefinitely
4.7
2.0
Recognised deferred tax assets attributable to tax losses
17.4
19.0
Unrecognised deferred tax assets attributable to tax losses that are available to carry forward against
future taxable income amounted to €38.8 million as at 31 December 2024 (2023: €28.6 million) and can be
analysed as follows:
2024
€ million
2023
€ million
Attributable to tax losses that expire within five years
35.3
21.7
Attributable to tax losses that expire after five years
3.5
6.9
Unrecognised deferred tax assets attributable to tax losses
38.8
28.6
The aggregate amount of distributable reserves arising from the realised earnings of the Group’s
operations was €4,410.0 million in 2024 (2023: €3,871.2 million). No deferred tax liabilities have been
recognised on such reserves given that their distribution is controlled by the Group, or in the event of
plans to remit overseas earnings of subsidiaries, such distribution would not give rise to a tax liability.
Notes to the consolidated financial statements continued
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11. Earnings per share
Accounting policy
Basic earnings per share is calculated by dividing the net profit attributable to the owners of the
parent by the weighted average number of ordinary shares outstanding during the year. The
weighted average number of ordinary shares outstanding during the year is the number of ordinary
shares outstanding at the beginning of the year, adjusted by the number of ordinary shares bought
back or issued during the year multiplied by a time-weighting factor. Diluted earnings per share
incorporates stock options for which the average share price for the year is in excess of the exercise
price of the stock option and which create a dilutive effect.
The calculation of the basic and diluted earnings per share attributable to the owners of the parent
company is based on the following data:
2024
2023
Net profit attributable to the owners of the parent (€ million)
820.6
636.5
Weighted average number of ordinary shares for the purposes
of basic earnings per share (million)
364.3
367.8
Effect of dilutive stock options on number of shares (million)
0.2
0.5
Weighted average number of ordinary shares for the purposes
of diluted earnings per share (million)
364.5
368.3
Basic earnings per share (€)
2.25
1.73
Diluted earnings per share (€)
2.25
1.73
12. Components of other comprehensive income
The components of other comprehensive income for the years ended 31 December comprised:
2024
2023
Before tax
€ million
Income tax
€ million
Net of tax
€ million
Before tax
€ million
Income tax
€ million
Net of tax
€ million
Cost of hedging (refer to Note 24)
(2.3)
–
(2.3)
(7.1)
–
(7.1)
Gain on cash flow hedges (refer to Note 24)
10.8
1.0
11.8
19.7
(3.0)
16.7
Foreign currency translation losses
(209.5)
–
(209.5)
(484.6)
–
(484.6)
Valuation (loss)/gain on equity
investments at fair value through
other comprehensive income
(0.2)
–
(0.2)
0.4
(0.1)
0.3
Actuarial gains/(losses)
1.0
0.1
1.1
(16.4)
2.0
(14.4)
Share of other comprehensive loss
of equity method investments
(4.6)
–
(4.6)
(11.7)
–
(11.7)
Other comprehensive loss
(204.8)
1.1
(203.7)
(499.7)
(1.1)
(500.8)
The foreign currency translation losses for both 2024 and 2023 primarily related to the Nigerian Naira,
the Russian Rouble and the Egyptian Pound.
13. Intangible assets
Accounting policy
Intangible assets consist of goodwill, franchise agreements, trademarks and water rights. Goodwill
and other indefinite-lived intangible assets are carried at cost less accumulated impairment losses,
while finite-lived intangible assets are amortised over their useful economic lives. The useful lives,
both finite and indefinite, assigned to intangible assets are evaluated on an annual basis.
Indefinite-lived intangible assets (‘not subject to amortisation’)
Intangible assets not subject to amortisation consist of goodwill, franchise agreements and trademarks.
Goodwill is the excess of the consideration transferred over the fair value of the share of net assets
acquired. Goodwill and fair value adjustments arising on the acquisition of subsidiaries are treated
as the assets and liabilities of those subsidiaries. These balances are denominated in the functional
currency of the subsidiary and are translated to Euro on a basis consistent with the other assets
and liabilities of the subsidiary.
The useful life of franchise agreements is usually based on the term of the respective franchise
agreements. The Coca-Cola Company does not grant perpetual franchise rights outside the
United States. However, given the Group’s strategic relationship with The Coca-Cola Company and
consistent with past experience, the Group believes that franchise agreements will continue to be
renewed at each expiration date with no significant costs. The Group has concluded that the franchise
agreements are perpetual in nature and they have therefore been assigned an indefinite useful life.
The Group’s trademarks are assigned an indefinite useful life when they have an established sales
history in the applicable region, it is the intention of the Group to receive a benefit from them
indefinitely and there is no indication that this will not be the case.
Goodwill and other indefinite-lived intangible assets are tested for impairment annually and
whenever there is an indication of impairment.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units
expected to benefit from the business combination in which the goodwill arose. Other indefinite-lived
intangible assets are also allocated to the Group’s cash-generating units expected to benefit from those
intangibles. The cash-generating units (‘unit’) to which goodwill and other indefinite-lived intangible assets
have been allocated are tested for impairment annually, or more frequently when there is an indication that
the unit may be impaired. If the recoverable amount (i.e. the higher of the value-in-use and fair value less
costs to sell) of the cash-generating unit is less than the carrying amount of the unit, the impairment loss
is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro-rata
to the other assets of the unit on the basis of the carrying amount of each asset in the unit. Impairment
losses recognised against goodwill are not reversed in subsequent periods.
Finite-lived intangible assets
Finite-lived intangible assets mainly consist of water rights and certain brands, are amortised over
their useful economic lives and are carried at cost less accumulated amortisation and impairment
losses. Finite-lived intangible assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
273
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
13. Intangible assets continued
Critical accounting estimates
Determining whether goodwill or indefinite-lived intangible assets are impaired requires an estimation
of the value-in-use of the cash-generating units to which they have been allocated in order to determine
the recoverable amount of the cash-generating units. The value-in-use calculation requires the Group
to estimate the future cash flows expected to arise from the cash-generating unit, discounted at an
appropriate rate. Estimating the discounted future cash flows involves a significant degree of uncertainty.
The value-in-use estimation is sensitive to the discount rate used as well as the perpetuity growth rates
used for extrapolation purposes. The key assumptions used to determine the recoverable amount for
the different cash-generating units, including a sensitivity analysis where possible changes to these key
assumptions could eliminate the remaining headroom, are disclosed and further explained below under
‘Annual impairment test for goodwill and other indefinite-lived intangible assets’ section.
The movements in intangible assets by classes of assets during the year were as follows:
Goodwill
€ million
Franchise
agreements
€ million
Trademarks
€ million
Other
intangible
assets
€ million
Total
€ million
Cost
As at 1 January 2023
2,108.4
395.8
220.2
17.9
2,742.3
Arising from business combinations (refer to Note 23)
7.4
–
198.2
–
205.6
Impairment
(110.5)
–
–
(2.0)
(112.5)
Foreign currency translation
(2.1)
(62.0)
(0.3)
–
(64.4)
As at 31 December 2023
2,003.2
333.8
418.1
15.9
2,771.0
Amortisation
As at 1 January 2023
182.4
–
8.1
9.3
199.8
Charge for the year
–
–
0.5
0.9
1.4
As at 31 December 2023
182.4
–
8.6
10.2
201.2
Net book value as at 1 January 2023
1,926.0
395.8
212.1
8.6
2,542.5
Net book value as at 31 December 2023
1,820.8
333.8
409.5
5.7
2,569.8
Cost
Goodwill
€ million
Franchise
agreements
€ million
Trademarks
€ million
Other
intangible
assets
€ million
Total
€ million
As at 1 January 2024
2,003.2
333.8
418.1
15.9
2,771.0
Impairment
–
–
(0.4)
0.4
–
Foreign currency translation
8.0
(70.1)
0.1
–
(62.0)
As at 31 December 2024
2,011.2
263.7
417.8
16.3
2,709.0
Amortisation
As at 1 January 2024
182.4
–
8.6
10.2
201.2
Charge for the year
–
–
0.5
0.6
1.1
As at 31 December 2024
182.4
–
9.1
10.8
202.3
Net book value as at 1 January 2024
1,820.8
333.8
409.5
5.7
2,569.8
Net book value as at 31 December 2024
1,828.8
263.7
408.7
5.5
2,506.7
In 2023, the Group recognised an impairment loss of €3.1 million in connection with its self-serve coffee
vending business in Poland (the ‘Costa Express Business’), as the recoverable amount was lower than
the carrying amount. The recoverable amount was determined based on value-in-use calculations,
considering management’s best estimates of future cash flows expected to arise from the business,
discounted at a rate of 7.7%. The impairment was driven mainly by a change in expectations regarding the
scope and duration of a contract with a key customer. The impairment loss was allocated to goodwill (€1.1
million) and other finite-lived intangible assets (€2.0 million) and was included in line ‘Operating expenses’
of the consolidated income statement and under Developing markets for segmental allocation purposes.
In 2024, the Group partially reversed the impairment loss relating to the Costa Express Business
by €0.4 million. The reversal of the impairment was driven mainly by finalisation of the negotiations
regarding the scope and duration of a contract with a key customer. The reversal of impairment was
allocated fully to other finite-lived intangible assets and was included in line ‘Operating expenses’ of the
consolidated income statement and under Developing markets for segmental allocation purposes.
Impairment losses of €109.4 million in 2023 related to the impairment of goodwill of the Group’s Egyptian
cash-generating unit. For details on the impairment testing of the Group’s Egyptian cash-generating unit,
refer to section ‘Annual impairment test for goodwill and other indefinite-lived intangible assets’ below.
In 2024, the Group recognised an impairment loss of €0.4 million in connection with a juice trademark in
its Emerging markets, as the recoverable amount was lower than the carrying amount. The recoverable
amount was €0.6 million and was determined based on relief-from-royalty method calculations, considering
management’s best estimates of future revenue attributable to the trademark, discounted at a rate of 22.9%.
The impairment loss was driven mainly by the higher discount rate used due to worsening macroeconomic
conditions and was included in line ‘Operating expenses’ of the consolidated income statement.
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
274
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
13. Intangible assets continued
Intangible assets not subject to amortisation amounted to €2,497.9 million (2023: €2,560.2 million) and
are presented in the charts below:
Goodwill
€1,828.8 million
Franchise agreements
€263.7 million
Trademarks
€405.4 million
2024
€2,497.9 million
Goodwill
€1,820.8 million
Franchise agreements
€333.8 million
Trademarks
€405.6 million
2023
€2,560.2 million
The carrying value of intangible assets subject to amortisation amounted to €8.8 million (2023: €9.6
million) and comprised water rights of €4.8 million, trademarks of €3.3 million and other intangible
assets of €0.7 million (2023: €5.3 million water rights, €3.9 million trademarks and €0.4 million other
intangible assets).
Annual impairment test for goodwill and other indefinite-lived intangible assets
The recoverable amount of each cash-generating unit was determined through a value-in-use
calculation. This calculation uses cash flow forecasts based on financial budgets approved by the Board
of Directors covering a one-year period and cash flow forecasts for four additional years. Cash flows for
years two to five are forecasted by management based on operation and market-specific assumptions
including growth rates, forecast selling prices, direct costs and operating expenses. Management
determined gross margins based on past performance, expectations for the development of the
market and expectations about raw materials’ costs. Cash flows for the subsequent years after the
forecast period are extrapolated using perpetuity growth rates which reflect management’s best
estimate of industry growth, considering long-term inflation and gross domestic product forecasts
specific to the countries of operation. The discount rates used by management represent the current
market assessment of the risks specific to each cash-generating unit, taking into consideration the
time value of money and are derived from the weighted average cost of capital. The Group applies
post-tax discount rates to post-tax cash flows as the valuation calculated using this method closely
approximates to applying pre-tax discount rates to pre-tax cash flows.
Management also assessed the potential adverse impact to future cash flows arising from climate
change risk, under different scenarios. In making this assessment, management considered the impact
from disruptions to production and distribution due to extreme weather, the increased cost of water,
as well as costs associated with managing the Group’s carbon footprint in line with its NetZeroby40
commitments, as detailed in the Strategic Report (pages 187 to 188) . The Group will continue to
monitor and assess the potential impact of climate-related risks and opportunities in the impairment
assessment, as global efforts to mitigate the risks arising from climate change evolve, including the
development of relevant governmental policies.
Except for the impairment of the juice trademark described on page 274, no impairment of goodwill and
other indefinite-lived assets was identified during the 2024 annual impairment test.
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
13. Intangible assets continued
The following chart and accompanying table set forth the percentage and carrying value respectively
of goodwill and other indefinite-lived intangible assets for those cash-generating units whose carrying
value is greater than or equal to 9% of the total, as at 31 December 2024.
Intangible assets not
subject to amortisation as
at 31 December 2024 (%)
Italy
31%
Switzerland
20%
The Republic of Ireland
and Northern Ireland
10%
Koncern Bambi a.d. Požarevac
9%
All other cash-generating units 30%
Goodwill
€ million
Franchise
agreements
€ million
Trademarks
€ million
Total
€ million
Italy
640.9
126.9
–
767.8
Switzerland
490.0
–
–
490.0
The Republic of Ireland and
Northern Ireland
257.1
–
–
257.1
Koncern Bambi a.d.
Požarevac
115.6
–
118.9
234.5
All other cash-generating
units
325.2
136.8
286.5
748.5
Total
1,828.8
263.7
405.4
2,497.9
The key assumptions for these cash-generating units are presented below:
Growth rate in
perpetuity (%)
Post-tax discount
rate (%)
Pre-tax discount
rate (%)
2024
2023
2024
2023
2024
2023
Italy
2.0
2.0
7.1
8.4
9.3
11.5
Switzerland
1.0
0.8
5.7
6.5
6.8
7.8
The Republic of Ireland and
Northern Ireland
4.0
4.0
5.6
6.4
6.0
7.0
Koncern Bambi a.d. Požarevac
4.5
4.5
7.1
9.3
7.6
10.2
For the cash-generating units of The Republic of Ireland and Northern Ireland and Koncern Bambi a.d.
Požarevac, the growth rate in perpetuity as estimated by management was higher than that expected for
the industry in general. This is attributable to the strength of the Group’s brand portfolio, which is amongst
the strongest and broadest in the industry. The Group has historically achieved higher revenue growth than
the industry, leveraging the strength of its portfolio, while it continually invests in brand-related innovations
to remain relevant, be able to cater to all consumption occasions and increase market share.
Impairment testing of the Egyptian cash-generating unit (‘unit’)
As disclosed in the 2023 Integrated Annual Report, during 2023 we experienced worsening
macroeconomic factors in Egypt, with inflation persisting at record-high levels, more than double the
upper bound of the Central Bank of Egypt’s target band and increasing risk of foreign currency crisis due to
low reserves, while geopolitical tensions in the Middle East negatively impacted the financial performance
of the Egyptian unit in late 2023. Consequently, during the 2023 annual impairment test performed by the
Group, an impairment loss for its Egyptian unit of €109.4 million was identified, as the recoverable amount
was lower than the carrying amount of the unit. The impairment loss was allocated in its entirety to reduce
the carrying amount of goodwill allocated to the unit and was included in line ‘Operating expenses’ of the
consolidated income statement and under Emerging markets for segmental allocation purposes. As at
31 December 2023, the recoverable amount of the Egyptian unit was approximately €340 million.
The Group performed its annual impairment test in 2024, which concluded that the recoverable amount
of the Egyptian unit was higher than the carrying amount of the unit. The recoverable amount was
determined based on value-in-use calculations consistent with those performed in 2023, updated
to consider management’s revised best estimates of expected cash flows and a lower discount rate,
reflective of the easing macroeconomic uncertainty in Egypt resulting from the government’s ongoing
IMF-backed reforms and controlled debt issuance.
The following table sets out the key assumptions used in the impairment assessment of the Egyptian unit:
December 2024
December 2023
Growth rate in perpetuity
5.0%
5.0%
Post-tax discount rate
11.7%
17.4%
Pre-tax discount rate
13.3%
20.8%
The Group continues to closely monitor its Egyptian unit in order to ensure that timely actions and
initiatives are undertaken to minimise potential adverse impacts on its expected performance.
Notes to the consolidated financial statements continued
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
14. Property, plant and equipment
Accounting policy
All property, plant and equipment is initially recorded at cost and subsequently measured at cost less
accumulated depreciation and impairment losses. Subsequent expenditure is added to the carrying
value of the asset when it is probable that future economic benefits, in excess of the original assessed
standard of performance of the existing asset, will flow to the operation and the costs can be
measured reliably. All other subsequent expenditure is expensed in the period in which it is incurred.
Assets under construction are recorded as part of property, plant and equipment, and depreciation
on these assets commences when the assets are made available for use.
Depreciation is calculated on a straight-line basis to allocate the depreciable amount over the
estimated useful life of the assets as follows:
Freehold buildings and improvements
40 years
Leasehold buildings and improvements
Over the lease term, up to 40 years
Production equipment
4 to 20 years
Vehicles
5 to 8 years
Computer hardware and software
2 to 15 years
Marketing equipment
3 to 10 years
Fixtures and fittings
8 years
Returnable containers
3 to 12 years
Freehold land is not depreciated as it is considered to have an indefinite life.
Deposits received for returnable containers by customers are accounted for as deposit liabilities
(refer to Note 20).
Residual values and useful lives of assets are reviewed and adjusted if appropriate at each balance
sheet date. Climate change-related risks and relevant mitigation and adaptation actions may
impact the useful lives of property, plant and equipment. The Group monitors the potential impact
of climate change-related risks and associated legislation in the context of its review of the useful
lives and no impact has been identified.
Property, plant and equipment is reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount,
which is the higher of the asset’s fair value less cost to sell and its value-in-use. For the purposes of
assessing impairment, assets are grouped at the lowest level of separately identifiable cash flows.
For the accounting policy regarding right-of-use assets, refer to Note 16 ‘Leases’.
The movements of property, plant and equipment by class of assets were as follows:
Land and
buildings
€ million
Plant and
equipment
€ million
Returnable
containers
€ million
Assets under
construction
€ million
Total
€ million
As at 1 January 2023:
Gross carrying amount
1,752.3
4,168.4
497.0
249.1
6,666.8
Accumulated depreciation and impairment
(612.9) (2,685.3)
(303.9)
(2.3) (3,604.4)
Net book value as at 1 January 2023 excluding
right-of-use assets
1,139.4
1,483.1
193.1
246.8
3,062.4
Additions
5.5
136.9
74.4
393.4
610.2
Reclassified to assets held for sale (refer to Note 19)
(3.3)
–
–
–
(3.3)
Reclassified from assets held for sale (refer to Note 19)
–
0.1
–
–
0.1
Reclassifications
76.2
249.7
3.7
(329.6)
–
Disposals
(1.7)
(2.8)
(3.2)
(0.6)
(8.3)
Depreciation charge for the year
(47.2)
(239.7)
(39.2)
–
(326.1)
Impairment
(1.4)
(9.8)
(2.4)
(1.1)
(14.7)
Foreign currency translation
(175.1)
(205.1)
(50.7)
(41.9)
(472.8)
Net book value as at 31 December 2023 excluding
right-of-use assets
992.4
1,412.4
175.7
267.0
2,847.5
As at 31 December 2023:
Gross carrying amount
1,598.1
3,960.8
459.0
269.3
6,287.2
Accumulated depreciation and impairment
(605.7) (2,548.4)
(283.3)
(2.3) (3,439.7)
Net book value as at 31 December 2023 excluding
right-of-use assets
992.4
1,412.4
175.7
267.0
2,847.5
Net book value of right-of-use assets as at
31 December 2023
105.2
104.4
–
–
209.6
Net book value as at 31 December 2023
1,097.6
1,516.8
175.7
267.0
3,057.1
As at 1 January 2024:
Gross carrying amount
1,598.1
3,960.8
459.0
269.3
6,287.2
Notes to the consolidated financial statements continued
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Supplementary Information
Land and
buildings
€ million
Plant and
equipment
€ million
Returnable
containers
€ million
Assets under
construction
€ million
Total
€ million
Accumulated depreciation and impairment
(605.7) (2,548.4)
(283.3)
(2.3) (3,439.7)
Net book value as at 1 January 2024 excluding
right-of-use assets
992.4
1,412.4
175.7
267.0
2,847.5
Additions
6.8
161.0
60.8
420.7
649.3
Reclassified to assets held for sale (refer to Note 19)
(0.3)
–
–
–
(0.3)
Reclassified from assets held for sale (refer to Note 19)
1.8
–
–
–
1.8
Reclassified from right-of-use assets
–
5.7
–
–
5.7
Reclassifications
81.0
242.6
1.1
(324.7)
–
Disposals
(1.8)
(4.1)
(11.2)
(0.5)
(17.6)
Depreciation charge for the year
(45.2)
(237.8)
(29.7)
–
(312.7)
Impairment
(5.3)
(16.2)
(0.3)
0.3
(21.5)
Foreign currency translation
(79.6)
(86.3)
(19.5)
(20.8)
(206.2)
Net book value as at 31 December 2024 excluding
right-of-use assets
949.8
1,477.3
176.9
342.0
2,946.0
As at 31 December 2024:
Gross carrying amount
1,583.8
4,037.0
449.1
344.0
6,413.9
Accumulated depreciation and impairment
(634.0) (2,559.7)
(272.2)
(2.0) (3,467.9)
Net book value as at 31 December 2024 excluding
right-of-use assets
949.8
1,477.3
176.9
342.0
2,946.0
Net book value of right-of-use assets as at
31 December 2024
141.9
109.4
–
–
251.3
Net book value as at 31 December 2024
1,091.7
1,586.7
176.9
342.0
3,197.3
Assets under construction as at 31 December 2024 include advances for equipment purchases of
€87.6 million (2023: €78.6 million). The depreciation charge for the year, including that for right-of-use
assets (refer to Note 16), recognised in operating expenses and cost of goods sold amounted to €213.5
million (2023: €203.7 million) and €160.7 million (2023: €181.4 million) respectively.
Impairment of property, plant and equipment and right-of-use assets
In 2023, the Group recorded impairment losses of €5.1 million, €3.6 million and €10.4 million, and
reversals of impairment of €nil, €nil and €4.4 million relating to property, plant and equipment in the
Established, Developing and Emerging segments respectively. The impaired assets, being mainly
production equipment and returnable containers, were written down based mainly on value-in-use
calculations. The Group also recorded impairment losses of €0.1 million and reversals of impairment
of €nil relating to right-of-use assets in the Established segment.
In 2024, the Group recorded impairment losses of €2.9 million, €1.2 million and €20.8 million, and
reversals of impairment of €nil, €0.2 and €3.2 million relating to property, plant and equipment in the
Established, Developing and Emerging segments respectively. The impaired assets, being mainly
production equipment, were written down based mainly on value-in-use calculations. The Group also
recorded impairment losses relating to right-of-use assets of €0.1 million in the Emerging segment and
reversals of impairment of €0.1 million in the Established segment.
Notes to the consolidated financial statements continued
14. Property, plant and equipment continued
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
15. Interests in other entities
The following are the principal subsidiaries of the Group as at 31 December:
% of voting rights
% of ownership
Country of registration
2024
2023
2024
2023
Adelink Ltd
Cyprus
50.0%*
50.0%*
50.0%
50.0%
AS Coca-Cola HBC Eesti
Estonia
100.0% 100.0% 100.0% 100.0%
CC Beverages Holdings II B.V.
The Netherlands
100.0% 100.0% 100.0% 100.0%
CCB Management Services GmbH
Austria
100.0% 100.0% 100.0% 100.0%
CCHBC Armenia CJSC
Armenia
100.0% 100.0% 100.0% 100.0%
CCHBC Bulgaria EAD1
Bulgaria
100.0%
99.4% 100.0%
99.4%
CCHBC IT Services Limited
Bulgaria
100.0% 100.0% 100.0% 100.0%
CCHBC Reinsurance Designated Activity
Company
Republic of Ireland 100.0% 100.0% 100.0% 100.0%
CCHBC Ventures BV
The Netherlands
100.0% 100.0% 100.0% 100.0%
CCH CirculaRPET S.r.l.
Italy
100.0% 100.0% 100.0% 100.0%
Coca-Cola Beverages Belorussiya
Belarus
100.0% 100.0% 100.0% 100.0%
Coca-Cola Beverages Ukraine Ltd
Ukraine
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Austria GmbH
Austria
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC B-H d.o.o. Sarajevo
Bosnia and
Herzegovina
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Česko a Slovensko, s.r.o.
Czech Republic
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Česko a Slovensko, s.r.o. –
organizačná zložka
Slovakia
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Cyprus Ltd
Cyprus
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Egypt2
Egypt
99.9%
97.8%
99.9%
97.8%
Coca-Cola HBC Finance B.V.
The Netherlands
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Greece S.A.I.C.
Greece
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Holdings B.V.
The Netherlands
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Hrvatska d.o.o.
Croatia
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Hungary Ltd
Hungary
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Ireland Limited
Republic of Ireland 100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Italia S.r.l.
Italy
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Kosovo L.L.C.
Kosovo
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Northern Ireland Limited
Northern Ireland
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Polska sp. z o.o.
Poland
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Romania Ltd
Romania
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Services LLC3
Egypt
100.0%
– 100.0%
–
Coca-Cola HBC Services MEPE
Greece
100.0% 100.0% 100.0% 100.0%
% of voting rights
% of ownership
Country of registration
2024
2023
2024
2023
Coca-Cola HBC Slovenija d.o.o.
Slovenia
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Sourcing B.V.
The Netherlands
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC-Srbija d.o.o.
Serbia
100.0% 100.0% 100.0% 100.0%
Coca-Cola HBC Switzerland Ltd
Switzerland
99.9%
99.9%
99.9%
99.9%
Coca-Cola Hellenic Bottling Company-Crna
Gora d.o.o., Podgorica
Montenegro
100.0% 100.0% 100.0% 100.0%
Coca-Cola Hellenic Business
Service Organisation
Bulgaria
100.0% 100.0% 100.0% 100.0%
Coca-Cola Hellenic Procurement GmbH
Austria
100.0% 100.0% 100.0% 100.0%
Coca-Cola Imbuteliere Chisinau SRL
Moldova
100.0% 100.0% 100.0% 100.0%
dCommerce Solutions BV
The Netherlands
100.0% 100.0% 100.0% 100.0%
ESM Effervescent Sodas Management Limited4Cyprus
– 100.0%
– 100.0%
Finlandia Vodka Oy5
Finland
100.0% 100.0% 100.0% 100.0%
Koncern Bambi a.d. Požarevac
Serbia
100.0% 100.0% 100.0% 100.0%
Multon AO
Russia
50.0%*
50.0%*
50.0%
50.0%
Multon Partners LLC
Russia
100.0% 100.0% 100.0% 100.0%
Nigerian Bottling Company Ltd
Nigeria
100.0% 100.0% 100.0% 100.0%
SIA Coca-Cola HBC Latvia
Latvia
100.0% 100.0% 100.0% 100.0%
Sirvis Bulgaria EOOD6
Bulgaria
100.0%
– 100.0%
–
Sirvis d.o.o. Beograd-Novi Beograd7
Serbia
100.0%
– 100.0%
–
Sirvis GmbH8
Austria
100.0%
– 100.0%
–
Sirvis S.R.L.
Italy
100.0% 100.0% 100.0% 100.0%
Three Cents Hellas Single Member S.A.
Greece
100.0% 100.0% 100.0% 100.0%
UAB Coca-Cola HBC Lietuva
Lithuania
100.0% 100.0% 100.0% 100.0%
*
Percentage of voting rights presented in respect of reserved matters following the Waiver in 2022.
1.
For details regarding the change in interest in CCHBC Bulgaria EAD in 2024 refer to Note 23.
2.
Coca-Cola Bottling Company of Egypt S.A.E. was renamed to Coca-Cola HBC Egypt as of 18 June 2023. For details regarding the change in
interest in Coca-Cola HBC Egypt in 2024 refer to Note 23.
3.
Coca-Cola HBC Services LLC was established on 28 August 2024.
4.
ESM Effervescent Sodas Management Limited was merged into Three Cents Hellas Single Member S.A. as of 31 December 2024.
5.
Brown-Forman Finland Oy was acquired on 1 November 2023 (refer to Note 23) and was renamed to Finlandia Vodka Oy as of 1 March 2024.
6.
Sirvis Bulgaria EOOD was established on 23 April 2024.
7.
Sirvis d.o.o. Beograd-Novi Beograd was established on 5 February 2024.
8.
Sirvis GmbH was established on 26 March 2024.
Notes to the consolidated financial statements continued
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15. Interests in other entities continued
Associates and joint arrangements
Accounting policy
Equity method investments comprise investments in associates and joint arrangements, and are
classified into integral and non-integral on the basis of whether they are considered part of the
Group’s core operations and strategy.
Investments in associates
Investments in associated undertakings are accounted for using the equity method of accounting.
Associated undertakings are all entities over which the Group has significant influence but not
control, generally accompanying a shareholding of between 20% and 50% of the voting rights.
The equity method of accounting involves recognising the Group’s share of the associates’ post-
acquisition profit or loss and movements in other comprehensive income for the period in the
income statement and statement of other comprehensive income respectively. Unrealised gains
and losses resulting from transactions between the Group and the associate are eliminated to the
extent of the interest in the associate.
The Group’s interest in each associate is carried in the balance sheet at an amount that reflects its
share of the net assets of the associate and includes goodwill on acquisition. When the Group’s share
of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise
further losses, unless the Group has incurred obligations or made payments on behalf of the associate.
Investments in joint arrangements
Joint arrangements are arrangements in which the Group has contractually agreed sharing of
control, which exists only when decisions about the relevant activities require unanimous consent.
Joint arrangements are classified as joint ventures or joint operations depending upon the rights
and obligations arising from the joint arrangement.
The Group classifies a joint arrangement as a joint venture when the Group has rights to the net
assets of the arrangement. The Group accounts for its interests in joint ventures using the equity
method of accounting as described in the section above.
The Group classifies a joint arrangement as a joint operation when the Group has the rights to the
assets, and obligations for the liabilities, of the arrangement and accounts for each of its assets, liabilities,
revenues and expenses, including its share of those held or incurred jointly, in relation to the joint operation.
If facts and circumstances change, the Group reassesses whether it still has joint control and
whether the type of joint arrangement in which it is involved has changed.
Critical accounting judgements
The Group participates in several joint arrangements. Judgement is required in order to determine
the classification of the Group’s joint arrangements as joint ventures where the Group has rights
to the net assets of the arrangement, or joint operations where the Group has rights to the assets and
obligations for the liabilities of the arrangement. In making this assessment, consideration is given to
the legal form of the arrangement, and the contractual terms and conditions, as well as other facts and
circumstances (including the economic rationale of the arrangement and the impact of the relevant
legal framework). The Group participates in a number of joint arrangements with The Coca-Cola
Company in connection with its water business across its markets, the classification of which involves
a significant degree of judgement due to the complexity of the underlying contractual arrangements
of the business model and the diversity of the relevant legal frameworks across markets.
Equity-method investments
Changes in the carrying amounts of equity method investments are as follows:
Joint ventures
€ million
Associates
€ million
Total
€ million
As at 1 January 2023
86.0
119.6
205.6
Share of results of equity method investments
9.8
4.9
14.7
Share of other comprehensive income/(loss) of equity
method investments
0.3
(12.0)
(11.7)
Share of total comprehensive income/(loss)
10.1
(7.1)
3.0
Dividends
(9.3)
(2.1)
(11.4)
Decrease due to other movements
–
(0.2)
(0.2)
As at 31 December 2023
86.8
110.2
197.0
Share of results of equity method investments
13.7
3.0
16.7
Share of other comprehensive loss of equity
method investments
–
(4.6)
(4.6)
Share of total comprehensive income/(loss)
13.7
(1.6)
12.1
Dividends
(9.1)
(2.4)
(11.5)
As at 31 December 2024
91.4
106.2
197.6
The carrying amount of equity method investments comprises integral and non-integral equity
method investments as follows:
Joint ventures
€ million
Associates
€ million
Total
€ million
As at 31 December 2023:
Integral equity method investments
82.6
–
82.6
Non-integral equity method investments
4.2
110.2
114.4
Total equity method investments
86.8
110.2
197.0
As at 31 December 2024:
Integral equity method investments
87.1
–
87.1
Non-integral equity method investments
4.3
106.2
110.5
Total equity method investments
91.4
106.2
197.6
a) Investments in joint ventures
The Group has one significant integral joint venture with Heineken, through its 50% interest in AD
Pivara Skopje, which is engaged in the bottling and distribution of soft drinks and beer in North
Macedonia. The structure of the joint venture provides the Group with rights to its net assets.
Notes to the consolidated financial statements continued
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15. Interests in other entities continued
Summarised financial information of the Group’s significant joint venture is presented below.
The information below reflects the amounts presented in the IFRS financial statements of the joint
venture, amended to reflect adjustments made when using the equity method, including fair value
adjustments and not the Group’s share in these amounts.
AD Pivara Skopje
2024
€ million
2023
€ million
Summarised balance sheet:
Non-current assets
66.9
65.1
Cash and cash equivalents
–
3.5
Other current assets
19.8
18.7
Total current assets
19.8
22.2
Borrowings
(3.2)
(6.0)
Other current liabilities (including trade payables)
(25.4)
(28.9)
Total current liabilities
(28.6)
(34.9)
Borrowings
(0.5)
(0.8)
Other non-current liabilities
(0.5)
(0.5)
Total non-current liabilities
(1.0)
(1.3)
Net assets
57.1
51.1
Summarised statement of comprehensive income:
Revenue
137.9
127.5
Depreciation
(7.3)
(7.5)
Interest expense
(0.2)
(0.1)
Profit before tax
26.5
19.8
Income tax
(3.0)
(2.4)
Profit after tax
23.5
17.4
Total comprehensive income
23.5
17.4
Dividends received
11.2
5.2
Reconciliation of net assets to carrying amount:
Closing net assets
57.1
51.1
AD Pivara Skopje
2024
€ million
2023
€ million
Interest in joint venture at 50%
28.6
25.6
Goodwill
16.9
16.9
Non-controlling interest
(1.6)
(1.6)
Carrying value
43.9
40.9
Summarised financial information of the Group’s investment in other joint ventures is as follows:
2024
€ million
2023
€ million
Carrying amount
47.5
45.9
Share of profit
1.9
1.1
Share of other comprehensive income
–
0.3
Share of total comprehensive income
1.9
1.4
b) Investment in associates
The Group has one significant associate, being Casa Del Caffè Vergnano S.p.A. (‘Caffè Vergnano’),
a premium Italian coffee company in which the Group holds a 30% equity shareholding. The
corresponding investment is classified as an associate, as the Group has significant influence over
the investee. The Group has also entered into an exclusive distribution agreement for Caffè Vergnano’s
products in all its territories outside of Italy. The investment is accounted for using the equity method
and is further classified as a non-integral equity method investment, considering that the distribution
agreement is separate to the shareholding.
In 2023, accrued acquisition costs of €0.2 million in connection with the investment in Caffè Vergnano
were written-off.
Notes to the consolidated financial statements continued
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15. Interests in other entities continued
The information below reflects the amounts presented in the financial statements of Caffè Vergnano
under Italian law, amended to reflect adjustments made by the associate when using the equity
method, including fair value adjustments and not the Group’s share in those amounts.
Caffè Vergnano
2024
€ million
2023
€ million
Summarised balance sheet:
Non-current assets
123.0
123.4
Cash and cash equivalents
0.8
0.7
Other current assets
75.8
52.0
Total current assets
76.6
52.7
Borrowings
(33.3)
(15.6)
Other current liabilities (including trade payables)
(40.0)
(33.4)
Total current liabilities
(73.3)
(49.0)
Borrowings
(2.1)
(3.0)
Other non-current liabilities
(25.4)
(26.7)
Total non-current liabilities
(27.5)
(29.7)
Net assets
98.8
97.4
Summarised statement of comprehensive income:
Revenue
123.5
109.7
Depreciation
(8.8)
(8.0)
Profit/(loss) before tax
0.4
(2.0)
Income tax
(0.1)
0.8
Profit/(loss) after tax
0.3
(1.2)
Total comprehensive income/(loss)
0.3
(1.2)
Reconciliation of net assets to carrying amount:
Closing net assets
98.8
97.4
Interest in associate at 30%
29.6
29.2
Acquisition costs
0.9
0.9
Goodwill
56.5
56.5
Carrying value
87.0
86.6
Summarised financial information of the Group’s investment in other associates is as follows:
2024
€ million
2023
€ million
Carrying amount
19.2
23.6
Share of profit
2.9
5.3
Share of other comprehensive loss
(4.6)
(12.0)
Share of total comprehensive loss
(1.7)
(6.7)
We disclosed in the 2023 Integrated Annual Report that Frigoglass Industries (Nigeria) Limited, an
associate in which the Group holds an effective interest of 23.9% (2023: 23.9%) through its subsidiary
Nigerian Bottling Company Ltd, is a guarantor for the senior secured notes issued in 2023 by the
restructured Frigoglass Group. The Group has no direct exposure arising from this guarantee
arrangement, however the Group’s investment in this associate, which stood at €11.6 million as at 31
December 2024 (2023: €14.0 million), would be at potential risk if there was a default under the terms of
the senior secured notes and the restructured Frigoglass Group (including the guarantor) was unable to
meet its obligations thereunder.
c) Joint operations
Other joint operations of the Group with The Coca-Cola Company comprise mainly a 50% interest
in each of the water businesses listed below, which are engaged in the production and distribution of
water in the respective countries.
Country
Joint operation
Austria
Römerquelle
Italy
Fonti del Vulture
Romania
Dorna
Baltics
Neptūno vandenys
Poland
Multivita
Switzerland
Valser
Serbia
Vlasinka
In addition, the Group has entered into a joint operation arrangement with HEINEKEN Romania S.A.,
whereby it holds a 50% interest in Stockday S.R.L., an online business-to-business platform and
distributor in Romania.
Notes to the consolidated financial statements continued
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16. Leases
Accounting policy
Leases for which the Group is in a lessee position are recognised as a right-of-use asset and a
corresponding lease liability at the date at which the leased asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a net-present-value basis and
are recognised as part of ‘Property, plant and equipment’, ‘Current borrowings’ and ‘Non-current
borrowings’ in the consolidated balance sheet, respectively.
Lease contracts may contain both lease and non-lease components. The Group allocates the
consideration in the contract to the lease and non-lease component respectively. Consideration
relevant to the non-lease component is recognised as an expense in the consolidated income
statement over the period of the lease.
Lease liabilities include the net present value of the following lease payments:
a) fixed payments (including in-substance fixed payments) over the lease term, less any lease
incentives receivable;
b) variable lease payments that are based on an index or a rate;
c) amounts expected to be payable by the lessee under residual value guarantees;
d) the exercise price of a purchase option if the Group is reasonably certain it will exercise that
option; and
e) payments of penalties for terminating the lease, if the lease term reflects the Group exercising
that option.
When adjustments to lease payments based on an index or rate take effect, the lease liability
is reassessed and adjusted against the right-of-use asset.
Variable lease payments that do not depend on an index or a rate are recognised as an expense
in the period in which the event or condition that triggers the payment occurs.
The lease payments are discounted using the interest rate implicit in the lease (if that rate can
be determined), or the incremental borrowing rate of the lease, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar
economic environment with similar terms, security and conditions. In determining the incremental
borrowing rate to be used, the Group applies judgement to establish the suitable reference rate
and credit spread.
Each lease payment is allocated between the liability (principal) and finance cost. The interest
expense is charged to the consolidated income statement as part of ‘Finance costs’ over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability
for each period.
Right-of-use assets are measured at cost comprising the following:
a) the amount of the initial measurement of lease liability;
b) any lease payments made at or before the commencement date less any lease
incentives received;
c) any initial direct costs; and
d) any restoration costs.
The right-of-use assets are depreciated over the shorter of the assets’ useful life and the lease term
on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-
use asset is depreciated over the underlying asset’s useful life.
The Group utilises a number of practical expedients permitted by the standard, namely:
1) applying the recognition exemption to short-term leases (i.e. leases with a term of 12 months
or less) that do not contain a purchase option; and
2) applying the recognition exemption to leases of underlying assets with a low value, which mainly
comprise IT equipment.
Payments associated with short-term leases and leases of low-value assets are recognised on a
straight-line basis as an expense in the consolidated income statement.
In determining the lease term, management considers all facts and circumstances that create an
economic incentive to exercise an extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated). The assessment is revised if a significant
event or a significant change in circumstances occurs which affects this assessment and which is
within the control of the lessee.
Lease payments are presented as follows in the consolidated cash flow statement:
• short-term lease payments, payments for leases of low-value assets and variable lease payments
that are not included in the measurement of the lease liabilities are presented within cash flows
from operating activities;
• payments for the interest element of recognised lease liabilities are included in ‘Interest paid’
within cash flows from financing activities; and
• payments for the principal element of recognised lease liabilities are presented within cash flows
from financing activities.
Notes to the consolidated financial statements continued
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16. Leases continued
Leasing activities
The leases which are recorded on the consolidated balance sheet are principally in respect of buildings
and vehicles. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions.
Extension and termination options are included in a number of leases across the Group. These are used to
maximise operational flexibility in terms of managing the assets used in the Group’s operations. Extension
options considered reasonably certain to be exercised relate to land, and do not exceed six years. Most
termination options have not been considered reasonably certain to be exercised.
The Group’s carrying amount of lease liability is presented below as at 31 December:
2024
€ million
2023
€ million
Current lease liability
63.5
55.3
Non-current lease liability
190.5
154.8
Total lease liability (refer to Note 25)
254.0
210.1
For the carrying amount of right-of-use assets per class of underlying asset, refer to Note 14.
The Group’s additions to right-of-use assets for the years ended 31 December were as follows:
2024
€ million
2023
€ million
Land and buildings
86.6
36.0
Plant and equipment
59.3
50.7
Total additions
145.9
86.7
Right-of-use assets arising on business combinations in 2024 amounted to €nil (2023:€6.7 million) (refer
to Note 23).
The consolidated income statement includes the following amounts relating to depreciation and
impairment of right-of-use assets:
2024
€ million
2023
€ million
Land and buildings
23.1
22.5
Plant and equipment
38.4
36.6
Total depreciation and impairment charge
61.5
59.1
The following expenses have been included in cost of goods sold and operating expenses:
2024
€ million
2023
€ million
Expense relating to short-term leases
27.6
26.5
Expense relating to leases of low-value assets
7.2
5.3
Expense relating to variable lease payments
11.5
15.4
Interest expense on leases in 2024 was €15.7 million (2023: €16.1 million) and is recorded within ‘Finance
costs, net’ in the consolidated income statement (refer to Note 9).
The total cash outflow for leases in 2024 was €118.4 million (2023: €109.3 million).
Expenses relating to short-term leases in 2024 and 2023 comprise consideration for leases with a term
of 12 months or less used to cover seasonal business needs.
17. Inventories
Accounting policy
Inventories are stated at the lower of cost and net realisable value.
Cost for raw materials and consumables is determined on a weighted average basis. Cost for work
in progress and finished goods comprises the cost of direct materials and labour plus attributable
overhead costs. Cost of inventories includes all costs incurred to bring the product to its present
location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs necessary to complete and sell the inventories.
Inventories consisted of the following as at 31 December:
2024
€ million
2023
€ million
Finished goods
420.6
367.8
Raw materials and work in progress
338.8
305.8
Consumables
104.5
99.7
Total inventories
863.9
773.3
The amount of inventories recognised as an expense during 2024 was €5,071.2 million (2023: €4,989.5
million). Write-downs of inventories to net realisable value recognised as an expense amounted to €35.9
million in 2024 (2023: €31.1 million), whereas provision reversed in the year amounted to €8.6 million
(2023: €3.8 million).
Notes to the consolidated financial statements continued
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18. Trade, other receivables and assets
Accounting policy
Trade receivables are amounts due from customers for goods sold or services performed in the
ordinary course of business. They are initially recognised at fair value and subsequently measured
at amortised cost using the effective interest rate method. The normal credit terms are between 7
and 90 days upon delivery.
The Group applies the IFRS 9 simplified approach for trade and other receivables and follows an
Expected Credit Losses (ECLs) approach for measuring the allowance of its trade receivables.
The expected loss rate is assessed on the basis of historical credit losses of 24 months before the
year end and adjusted to reflect current and forward-looking information. ECLs are based on the
difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive. The carrying amount of the receivable is reduced by the
loss allowance, which is recognised as part of operating expenses. If a trade receivable ultimately
becomes uncollectible, it is written off initially against any loss allowance made in respect of that
receivable with any excess recognised as part of operating expenses. Subsequent recoveries
of amounts previously written off or loss allowance no longer required are credited against
operating expenses.
The Group has entered into a contract that provides insurance coverage against defaulted
trade receivables. This contract meets the definition of a financial guarantee contract, which
is in substance part of the contract terms (that is, integral to the trade receivables) and is not
recognised separately. Therefore, the expected cash flows from the credit insurance are included
in the measurement of ECLs of trade receivables. The Group has also entered into a factoring
arrangement for certain of its trade receivables, whereby part of the relevant receivables is
transferred to a factor in exchange for cash. The terms of the factoring arrangement are such
that substantially all risks and rewards of the relevant receivables are transferred to the factor
and therefore the factored trade receivables’ part is derecognised in its entirety.
Loans are initially recognised at the fair value net of transaction costs incurred. After initial
recognition, all interest-bearing loans are subsequently measured at amortised cost. Amortised
cost is calculated using the effective interest rate method whereby any discount, premium
or transaction costs associated with a loan are amortised to the income statement over the
lending period.
Trade, other receivables and assets consisted of the following as at 31 December:
Current assets
Non-current assets
2024
€ million
2023
€ million
2024
€ million
2023
€ million
Trade receivables
827.0
863.2
0.1
0.1
Receivables from related parties
(refer to Note 27)
38.7
53.2
–
–
Receivables from brand partners
77.8
52.7
–
–
Loans and advances to employees
5.1
4.1
–
–
Loans receivable
3.8
3.5
6.5
2.2
Other receivables
95.4
74.8
–
0.2
Total trade and other receivables
1,047.8
1,051.5
6.6
2.5
Prepayments
145.8
104.1
22.2
22.3
Pension plan assets (refer to Note 21)
–
–
50.9
48.6
Non-current income tax receivable
–
–
9.1
8.5
VAT and other taxes receivable
44.6
32.4
–
–
Total other assets
190.4
136.5
82.2
79.4
Total trade, other receivables and assets
1,238.2
1,188.0
88.8
81.9
Receivables from brand partners relate to receivables arising in the sale and distribution of premium
spirits and energy drinks.
Non-current trade receivables relate to renegotiated receivables, which are expected to be settled
within the new contractual due date.
For offsetting impact on trade receivables, refer to Note 22.
Notes to the consolidated financial statements continued
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18. Trade, other receivables and assets continued
Trade receivables
Trade receivables classified as current assets consisted of the following as at 31 December:
2024
€ million
2023
€ million
Trade receivables
904.5
942.4
Less: Loss allowance
(77.5)
(79.2)
Total trade receivables
827.0
863.2
The ageing analysis of trade receivables classified as current assets is as follows:
2024
€ million
2023
€ million
Gross
carrying
amount
Loss
allowance
Trade
receivables
Gross
carrying
amount
Loss
allowance
Trade
receivables
Within due date
738.5
(3.4)
735.1
746.8
(3.5)
743.3
Past due – Up to three months
67.3
(3.0)
64.3
102.5
(1.8)
100.7
Past due – Three to six months
12.6
(1.9)
10.7
7.1
(1.2)
5.9
Past due – Six to nine months
6.2
(1.6)
4.6
4.0
(1.2)
2.8
Past due – More than nine months
79.9
(67.6)
12.3
82.0
(71.5)
10.5
Total trade receivables
904.5
(77.5)
827.0
942.4
(79.2)
863.2
The movement in the loss allowance during the year is as follows:
2024
€ million
2023
€ million
As at 1 January
(79.2)
(75.8)
Amounts written off during the year
2.1
3.9
Amounts recovered during the year
7.3
2.9
Increase in allowance recognised in income statement
(8.6)
(8.2)
Foreign currency translation
0.9
(2.0)
As at 31 December
(77.5)
(79.2)
Receivables from related parties
The related party receivables, net of the loss allowance, are as follows:
2024
€ million
2023
€ million
Within due date
36.8
47.9
Past due
1.9
5.4
Less: Loss allowance
–
(0.1)
Total related party receivables
38.7
53.2
The ageing analysis of these receivables is as follows:
2024
€ million
2023
€ million
Within due date
36.8
47.9
Past due – Up to three months
0.9
4.4
Past due – Three to six months
0.5
0.8
Past due – Six to nine months
0.2
–
Past due – More than nine months
0.3
0.1
Total
38.7
53.2
Net impairment
Net impairment loss on trade and other receivables recognised in the income statement is analysed as follows:
2024
€ million
2023
€ million
Trade receivables
3.5
4.2
Related party receivables
(0.1)
–
Other receivables and assets
4.4
7.3
Net impairment loss
7.8
11.5
Notes to the consolidated financial statements continued
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19. Assets classified as held for sale
Accounting policy
Non-current assets and disposal groups are classified as held for sale if it is considered highly
probable that their carrying amount will be principally recovered through a sale transaction rather
than through continuing use. This condition is regarded as met only when the sale is highly probable
and the asset (or disposal group) is available for immediate sale in its present condition. In order for
a sale to be considered highly probable, management must be committed to a plan to sell the asset,
an active programme to locate a buyer and complete the plan must have been initiated, and the sale
should be expected to be completed within one year from the date of classification.
In the event that the criteria for continued classification as held for sale are no longer met, the assets
are reclassified to property, plant and equipment and the depreciation charge is adjusted for the
depreciation that would have been recognised had the assets not been classified as held for sale.
Non-current assets and disposal groups classified as held for sale are measured at the lower of the
individual assets’ previous carrying amount and their fair value less costs to sell.
As at 31 December 2024, the Group’s assets classified as held for sale amounted to €0.3 million, comprising
the carrying amount of land and buildings in the Group’s Emerging segment (2023: €3.3 million, comprising
land and buildings of €1.8 million and €1.5 million in the Group’s Established and Emerging segments
respectively, that had been written down to fair value less costs to sell) (refer to Note 14). The fair value
of assets classified as held for sale was determined through the use of a sales comparison approach
and is a non-recurring fair value measurement within level 3 of the fair value hierarchy.
During 2024, assets classified as held for sale in 2023 of €1.8 million were reclassified to property, plant
and equipment (refer to Note 14), as sale was no longer considered highly probable, while remaining
assets of €1.5 million were accordingly sold.
20. Trade and other payables
Accounting policy
Trade payables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest rate method.
The Group facilitates a supply chain financing programme under which the supplier can elect on
an invoice-by-invoice basis to either receive a discounted early payment from the partner bank, or
continue to be paid in line with the agreed payment terms; in either case, the value and due date of
the liability payable by the Group remain unchanged and, as such, the liability remains classified as
trade and other payables.
The normal payment terms are between 30 and 120 days, including those trade payables that are
subject to the Group’s supply chain finance programme.
Trade and other payables consisted of the following as at 31 December:
2024
€ million
2023
€ million
Trade payables
1,136.1
1,097.4
Accrued liabilities
811.6
719.4
Payables to related parties (refer to Note 27)
293.9
289.5
Deposit liabilities
130.8
90.6
Other tax and social security liabilities
191.9
173.3
Salaries and employee-related payables
76.0
69.1
Contract liabilities (refer to Note 7)
12.0
15.0
Other payables
18.1
24.8
Total trade and other payables
2,670.4
2,479.1
As at 31 December 2024, the carrying amounts of trade payables included in the supply chain finance
programme were as follows:
2024
€ million
Trade payables subject to the supply chain finance programme for which suppliers have
received payment
133.9
Trade payables subject to the supply chain finance programme for which suppliers have
not received payment
28.3
Trade payables subject to supply chain finance programme
162.2
Notes to the consolidated financial statements continued
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20. Trade and other payables continued
The carrying amounts of liabilities under the supply chain finance programme are considered to be
reasonable approximations of their fair values, due to their short-term nature.
Accrued liabilities regarding volume, marketing and promotional incentives as well as listing fees and
other incentives provided to customers as at 31 December 2024 amounted to €419.7 million
(2023: €351.2 million).
21. Provisions and employee benefits
Provisions and employee benefits consisted of the following as at 31 December:
2024
€ million
2023
€ million
Current:
Employee benefits
145.9
145.8
Restructuring provisions
1.7
3.2
Other provisions
43.5
50.1
Total current provisions and employee benefits
191.1
199.1
Non-current:
Employee benefits
103.7
105.8
Restructuring provisions
0.9
1.9
Other provisions
2.5
1.4
Total non-current provisions and employee benefits
107.1
109.1
Total provisions and employee benefits
298.2
308.2
a) Provisions
Accounting policy
Provisions are recognised when: the Group has a present obligation (legal or constructive) as a
result of a past event; it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation; and a reliable estimate can be made of the amount
of the obligation.
Where the Group expects a provision to be reimbursed, for example, under an insurance
contract, the reimbursement is recognised as a separate asset only when such reimbursement
is virtually certain.
If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability.
Termination benefits are payable whenever an employee’s employment is terminated before the
normal retirement date or whenever an employee accepts voluntary redundancy in exchange for
these benefits. The Group recognises termination benefits at the earlier of the following dates:
a) when the Group can no longer withdraw the offer of those benefits; and b) when the Group
recognises costs for a restructuring that is within the scope of IAS 37 ‘Provisions, contingent
liabilities and contingent assets’ and involves the payment of termination benefits (refer to Note 8).
In the case of an offer made to encourage voluntary redundancy, the termination benefits are
measured based on the number of employees expected to accept the offer.
The movements in restructuring and other provisions comprise:
2024
€ million
2023
€ million
Restructuring
provision
Other
provisions
Restructuring
provision
Other
provisions
As at 1 January
5.1
51.5
4.3
48.8
Arising during the year
4.0
32.9
7.6
31.5
Utilised during the year
(6.2)
(22.5)
(6.1)
(23.1)
Unused amount reversed
(0.3)
(10.7)
(0.7)
(1.7)
Foreign currency translation
–
(5.2)
–
(4.0)
As at 31 December
2.6
46.0
5.1
51.5
Other provisions primarily comprise provisions in relation to other tax and legal provisions, employee
litigation and donations.
Notes to the consolidated financial statements continued
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21. Provisions and employee benefits continued
b) Employee benefits
Accounting policy
The Group operates a number of defined benefit and defined contribution pension plans
in its territories.
The defined benefit plans are made up of both funded and unfunded pension plans and employee
leaving indemnities. The assets of funded plans are generally held in separate trustee-administered
funds and are financed by payments from employees and/or the relevant Group companies.
The liability recognised in the balance sheet in respect of defined benefit plans is the present value
of the defined benefit obligation at the balance sheet date less the fair value of the plan assets.
For defined benefit pension plans, pension costs are assessed using the projected unit credit
method. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to equity in other comprehensive income in the period in
which they arise. Such actuarial gains and losses are not reclassified to the income statement in
subsequent periods. The defined benefit obligations are measured at the present value of the
estimated future cash outflows using interest rates of high-quality corporate bonds that are
denominated in the currency in which the benefits will be paid and that have terms approximating
to the terms of the related obligation. In countries where there is no deep market in such bonds,
the market rates on government bonds are used. Past service cost is recognised immediately in
the income statement. A number of the Group’s operations have other long-service benefits in the
form of jubilee plans. These plans are measured at the present value of the estimated future cash
outflows, with immediate recognition of actuarial gains and losses in the income statement.
The Group’s contributions to the defined contribution pension plans are charged to the income
statement in the period to which the contributions relate.
Critical accounting estimates
The Group provides defined benefit pension plans as an employee benefit in certain territories.
Determining the value of these plans requires several actuarial assumptions and estimates
that may differ from actual developments in the future. These include the determination of the
discount rates, rate of compensation increases, rate of pension increases and life expectancy of
pensioners at the age of 65. Due to the long-term nature of these plans, such estimates are subject
to significant uncertainty. Details on the key assumptions used and a sensitivity analysis regarding
the impact of reasonably possible changes in key assumptions on the defined benefit obligation are
further presented below.
Employee benefits consisted of the following as at 31 December:
2024
€ million
2023
€ million
Defined benefit plans:
Employee leaving indemnities
62.8
66.7
Pension plans
5.5
5.5
Long-service benefits (jubilee plans) and other benefits
12.1
12.9
Total defined benefit plans
80.4
85.1
Other employee benefits:
Annual leave
11.1
9.8
Other employee benefits
158.1
156.7
Total other employee benefits
169.2
166.5
Total employee benefits obligations
249.6
251.6
Other employee benefits primarily comprise employee bonuses which are linked to business and
individual performance metrics.
Employees of Coca-Cola HBC’s subsidiaries in Austria, Bulgaria, Croatia, Greece, Italy, Montenegro,
Nigeria, Poland, Romania, Serbia and Slovenia are entitled to employee leaving indemnities, generally
based on each employee’s length of service, employment category and remuneration. These are
unfunded plans where the Company meets the payment obligation as it falls due.
Coca-Cola HBC’s subsidiaries in Austria, Northern Ireland, the Republic of Ireland and Switzerland sponsor
defined benefit pension plans. Of the three plans in the Republic of Ireland, two have plan assets, as do
the two plans in Northern Ireland and one out of the three plans in Switzerland. The Austrian plans do
not have plan assets and the Company meets the payment obligation as it falls due. The defined benefit
plans in Austria, the Republic of Ireland and Northern Ireland are closed to new members.
Coca-Cola HBC provides long-service benefits in the form of jubilee plans to its employees in Austria,
Croatia, Nigeria, Poland, Serbia, Slovenia and Switzerland.
Notes to the consolidated financial statements continued
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21. Provisions and employee benefits continued
Defined benefit obligation by segment is as follows for the years ended 31 December:
2024
2023
€68.5m
Total €80.4million
€2.5m
€9.4m
Established
Developing
Emerging
€68.7m
Total €85.1 million
€2.5m
€13.9m
The average duration of the defined benefit obligations is 14 years and the total employer contributions
expected to be paid in 2025 are €11.1 million.
The reconciliation of plan assets and plan liabilities for the years ended 31 December is as follows:
Plan assets
€ million
Plan liabilities
€ million
Net surplus/
(deficit)
€ million
As at 1 January 2023
431.9
(398.5)
33.4
Current service cost
–
(9.8)
(9.8)
Past service cost
–
0.1
0.1
Administrative expenses
(0.3)
–
(0.3)
Curtailment/settlement
–
(1.1)
(1.1)
Interest income/(expense)
12.8
(13.3)
(0.5)
Actuarial losses
–
(0.6)
(0.6)
Total expense recognised in income statement
12.5
(24.7)
(12.2)
Losses from change in financial assumptions
–
(28.3)
(28.3)
Experience adjustments
–
(2.2)
(2.2)
Return on plan assets excluding interest income
5.3
–
5.3
Total remeasurements recognised
in other comprehensive income
5.3
(30.5)
(25.2)
Benefits paid
(22.0)
22.0
–
Employer’s contributions
14.4
–
14.4
Participants’ contributions
5.1
(5.1)
–
Foreign currency translation
14.9
0.3
15.2
As at 31 December 2023
462.1
(436.5)
25.6
Plan assets
€ million
Plan liabilities
€ million
Net surplus/
(deficit)
€ million
As at 1 January 2024
462.1
(436.5)
25.6
Current service cost
–
(10.6)
(10.6)
Administrative expenses
(0.3)
–
(0.3)
Curtailment/settlement
–
0.5
0.5
Interest income/(expense)
11.1
(11.5)
(0.4)
Actuarial gains
–
0.8
0.8
Total expense recognised in income statement
10.8
(20.8)
(10.0)
Losses from change in demographic assumptions
–
(0.1)
(0.1)
Gains from change in financial assumptions
–
7.2
7.2
Experience adjustments
–
(1.8)
(1.8)
Return on plan assets excluding interest income
(7.4)
–
(7.4)
Total remeasurements recognised
in other comprehensive income
(7.4)
5.3
(2.1)
Benefits paid
(21.8)
21.8
–
Employer’s contributions
13.1
–
13.1
Participants’ contributions
5.2
(5.2)
–
Foreign currency translation
3.0
1.1
4.1
As at 31 December 2024
465.0
(434.3)
30.7
The effect of the asset ceiling on plan assets and net deficit for the years ended 31 December
is as follows:
2024
€ million
2023
€ million
Fair value of plan assets as at 31 December excluding asset ceiling
465.0
462.1
Opening unrecognised asset due to the asset ceiling
(62.1)
(66.0)
Change in asset ceiling recognised in other comprehensive income
3.1
8.8
Exchange rate gain
(0.1)
(3.3)
Interest on unrecognised asset recognised in income statement
(1.1)
(1.6)
Fair value of plan assets as at 31 December including asset ceiling
404.8
400.0
Notes to the consolidated financial statements continued
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21. Provisions and employee benefits continued
2024
€ million
2023
€ million
Present value of funded obligations
358.6
356.1
Fair value of plan assets
(465.0)
(462.1)
Defined benefit obligations of funded plans
(106.4)
(106.0)
Present value of unfunded obligations
75.7
80.4
Unrecognised asset due to asset ceiling
60.2
62.1
Defined benefit obligations
29.5
36.5
Plus: Amounts recognised within non-current assets (refer to Note 18)
50.9
48.6
Total defined benefit obligations
80.4
85.1
Funding levels are monitored in conjunction with the agreed contribution rate. The funding level of the
funded plans as at 31 December 2024 was 113% (2023: 112%).
Five of the plans have funded status surplus totalling €50.9 million as at 31 December 2024 (2023:
five plans, totalling €48.6 million) which is recognised as an asset on the basis that the Group has an
unconditional right to future economic benefits either via a refund or a reduction in future contributions.
Defined benefit plan expense is included in employee costs and presented in cost of goods sold and
operating expenses.
The assumptions (weighted average for the Group) used in computing the defined benefit obligation
comprised the following for the years ended 31 December:
2024
%
2023
%
Discount rate
2.5
2.8
Rate of compensation increase
2.2
2.5
Rate of pension increase
2.1
2.1
Life expectancy for pensioners at the age of 65 in years:
Male
22
22
Female
24
24
Asset liability matching: Plan assets allocated to growth assets are monitored regularly to ensure they
remain appropriate and in line with the Group’s long-term strategy to manage the plans. As the plans
mature, the level of investment risk will be reduced by investing more in assets such as bonds that
better match the liabilities.
Pension plan assets are invested in different asset classes in order to maintain a balance between
risk and return. Investments are well diversified to limit the financial effect of the failure of any
individual investment. Through its defined benefit plans, the Group is exposed to a number of risks,
as outlined below:
Asset volatility: The liabilities are calculated using a discount rate set with reference to corporate bond
yields; if assets underperform this yield, a deficit will be created. The Northern Ireland, Republic of
Ireland and Swiss plans hold a significant proportion of growth assets (equities), which are expected to
outperform corporate bonds in the long term, while being subject to volatility and risk in the short term.
Changes in bond yields: A decrease in corporate bond yields will increase the plan liabilities, although
this will be partially offset by an increase in the value of the plans’ bond holdings. Conversely, an increase
in corporate bond yields will decrease the plan liabilities, although this will be partially offset by a
decrease in the value of the plans’ bond holdings.
Inflation: The Northern Ireland, Republic of Ireland and Swiss plans’ benefit obligations are linked to
inflation, which is used as a basis to determine the rate of compensation increases. As a result, higher
inflation will lead to higher liabilities, although, in most cases, caps on the level of inflationary increases
are in place to protect against extreme inflation. The majority of the assets are either unaffected by or
only loosely correlated with inflation, meaning that an increase in inflation will also increase the deficit.
Life expectancy: The majority of the pension plans’ obligations are to provide benefits for the life of the
member, so increases in life expectancy will result in an increase in the liabilities.
The sensitivity analysis presented below is based on a change in assumption, while all other
assumptions remain constant.
Impact on defined benefit obligation (%) as at
31 December 2024
31 December 2023
Change in
assumption
Increase in
assumption
Decrease in
assumption
Change in
assumption
Increase in
assumption
Decrease in
assumption
Discount rate
1.00%
(12.6%)
15.6%
1.00%
(12.6%)
13.9%
Rate of compensation increase
1.00%
3.0%
(2.7%)
1.00%
4.0%
(3.7%)
Rate of pension increase
1.00%
4.7%
(4.8%)
1.00%
5.3%
(5.1%)
Life expectancy
1 year
2.4%
(2.4%)
1 year
2.2%
(2.3%)
Notes to the consolidated financial statements continued
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21. Provisions and employee benefits continued
Plan assets are invested as follows:
Equity securities – Eurozone
4%
Equity securities – Non-Eurozone
21%
Government bonds – Eurozone
18%
Assets category 2024 (%)
Government bonds – Non-Eurozone
17%
Corporate bonds – Non-Eurozone
22%
Real estate
12%
Cash
2%
Other
4%
Equity securities – Eurozone
4%
Equity securities – Non-Eurozone
20%
Government bonds – Eurozone
20%
Assets category 2023 (%)
Government bonds – Non-Eurozone
14%
Corporate bonds – Eurozone
6%
Corporate bonds – Non-Eurozone
17%
Real estate
12%
Cash
1%
Other
6%
The assets of funded plans are generally held in separately administered trusts, either as specific assets
or as a proportion of a general fund, or are insurance contracts. Plan assets held in trust are governed
by local regulations and practice in each country. The category ‘Other’ mainly includes investments in
funds holding a portfolio of assets. Plan assets relate predominantly to quoted financial instruments.
Equity securities were not invested in ordinary shares of the Company as at 31 December 2024
or 31 December 2023.
Defined contribution plans
The expense recognised in the income statement in 2024 for the defined contribution plans is
€42.5 million (2023: €41.2 million). This is included in employee costs and recorded in cost of goods
sold and operating expenses.
22. Offsetting financial assets and financial liabilities
Accounting policy
The Group offsets financial assets and financial liabilities to the net amount reported in the balance sheet
when it currently has a legally enforceable right to offset the recognised amounts and it intends to settle
on a net basis or to realise the asset and settle the liability simultaneously. The legally enforceable
right must not be contingent on future events and must be enforceable in the normal course of
business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
The Group enters into derivative transactions under International Swaps and Derivatives Association
(ISDA) master netting agreements or other similar agreements. In general, under such agreements
the counterparties can elect to settle as one single net amount the aggregated amounts owed by each
counterparty on a single day with respect to all outstanding transactions of the same currency and the
same type of derivative. In the event of default or early termination, all outstanding transactions under
the agreement are terminated and subject to any set-off. These agreements do not meet all of the IAS
32 criteria for offsetting in the balance sheet as the Group does not have any current legally enforceable
right to offset amounts since the right can only be applied if elected by both counterparties.
The financial assets and financial liabilities presented below are subject to offsetting, enforceable
master netting or similar agreements. The column ‘Net amount’ shows the impact on the Group’s
balance sheet if all set-off rights were exercised.
Financial liabilities offset against trade receivables mainly relate to accrued customer rebates,
as the offsetting criteria for these are met.
Notes to the consolidated financial statements continued
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22. Offsetting financial assets and financial liabilities continued
a) Financial assets
As at 31 December 2024
Related amounts
not set off in the
balance sheet
Gross amounts
of recognised
financial assets
€ million
Gross amounts of
recognised financial
liabilities set off in
the balance sheet
€ million
Net amounts of
financial assets
presented in the
balance sheet
€ million
Financial
instruments
€ million
Net amount
€ million
Derivative financial assets
41.6
–
41.6
(4.6)
37.0
Trade receivables
903.2
(76.1)
827.1
–
827.1
Total
944.8
(76.1)
868.7
(4.6)
864.1
As at 31 December 2023
Related amounts
not set off in the
balance sheet
Gross amounts
of recognised
financial assets
€ million
Gross amounts of
recognised financial
liabilities set off in
the balance sheet
€ million
Net amounts of
financial assets
presented in the
balance sheet
€ million
Financial
instruments
€ million
Net amount
€ million
Derivative financial assets
101.5
–
101.5
(14.7)
86.8
Trade receivables
939.8
(76.5)
863.3
–
863.3
Total
1,041.3
(76.5)
964.8
(14.7)
950.1
b) Financial liabilities
As at 31 December 2024
Related amounts
not set off in the
balance sheet
Gross amounts
of recognised
financial liabilities
€ million
Gross amounts of
recognised financial
assets set off in the
balance sheet
€ million
Net amounts of
financial liabilities
presented in the
balance sheet
€ million
Financial
instruments
€ million
Net amount
€ million
Derivative financial liabilities
29.2
–
29.2
(4.6)
24.6
Trade payables
1,212.2
(76.1)
1,136.1
–
1,136.1
Total
1,241.4
(76.1)
1,165.3
(4.6)
1,160.7
As at 31 December 2023
Related amounts
not set off in the
balance sheet
Gross amounts
of recognised
financial liabilities
€ million
Gross amounts of
recognised financial
assets set off in
the balance sheet
€ million
Net amounts of
financial liabilities
presented in the
balance sheet
€ million
Financial
instruments
€ million
Net amount
€ million
Derivative financial liabilities
73.0
–
73.0
(14.7)
58.3
Trade payables
1,173.9
(76.5)
1,097.4
–
1,097.4
Total
1,246.9
(76.5)
1,170.4
(14.7)
1,155.7
23. Business combinations and purchases of shares held by non-controlling
interests
Accounting policy
The acquisition method of accounting is used to account for business combinations. The
consideration transferred is the fair value of any asset transferred, shares issued and liabilities
assumed. The consideration transferred includes the fair value of any asset or liability resulting
from a contingent consideration arrangement. Identifiable assets acquired and liabilities and
contingent liabilities assumed are measured initially at their fair values at the acquisition date. The
excess of the consideration transferred and the fair value of non-controlling interest over the net
assets acquired and liabilities assumed is recorded as goodwill. In a business combination achieved
without the transfer of consideration, the acquisition-date fair value of the previously held interest
in the acquiree is used in place of the acquisition-date fair value of the consideration transferred
to measure goodwill or a gain on a bargain purchase. Acquisition costs comprise costs incurred
to effect a business combination such as finder’s, advisory, legal, accounting, valuation and other
professional or consulting fees. Integration costs comprise direct incremental costs necessary for
the acquiree to operate within the Group. All acquisition and integration-related costs are expensed
as incurred.
For each business combination, the Group elects to measure the non-controlling interest in the
acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets.
If the business combination is achieved in stages, the acquisition date carrying value of the
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any
gains or losses arising from such remeasurement are recognised in profit or loss, within operating
expenses in line ‘Acquisition and integration costs’. Any accumulated amounts regarding the Group’s
share of other comprehensive income of the previously held equity interest are reclassified to the
income statement, within operating expenses in line ‘Acquisition and integration costs’. The Group
has also elected to present gains on bargain purchase within operating expenses in line ‘Acquisition
and integration costs’.
Refer also to Note 2 for accounting policy regarding basis of consolidation.
Notes to the consolidated financial statements continued
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23. Business combinations and purchases of shares held by non-controlling
interests continued
Acquisition of Finlandia Vodka Oy
On 1 November 2023, the Group acquired 100% of the issued shares of Brown-Forman Finland Oy (‘BFF’),
established in Finland, owner of the Finlandia Vodka brand. BFF was later renamed to Finlandia Vodka Oy
(‘Finlandia’). The acquisition enhances the Group’s premium spirits business, while complementing its
existing adult sparkling beverages portfolio and better positions the Group to strengthen partnerships
with customers in strategically important channels such as hotels, restaurants and cafes (HoReCa).
The fair value of the consideration for the acquisition of Finlandia consisted of US Dollar 193.8
million (€183.9 million), which was paid as at 31 December 2023, and an additional payment, based on
Finlandia’s net financial position and working capital movement, of US Dollar 1.6 million (€1.5 million),
which was finally agreed with the seller, according to the terms of the sale and purchase agreement,
late in the first quarter of 2024 and paid in April 2024.
Details of the acquisition with regard to the finally determined fair values of the net assets acquired and
goodwill are presented in the table below. The net assets acquired reflect the final total consideration of
US Dollar 195.4 million (€185.4 million).
Fair value
€ million
Trademarks
198.2
Property, plant and equipment1
6.7
Inventories
4.9
Trade, other receivables and assets
9.1
Cash and cash equivalents
3.5
Borrowings1
(6.5)
Trade and other payables
(9.7)
Net deferred tax liability
(28.2)
Net identifiable assets acquired
178.0
Add: Goodwill arising on acquisition
7.4
Net assets acquired
185.4
1.
Property, plant and equipment and borrowings acquired relate to right-of-use assets (refer to Note 16) and lease liability
(refer to Note 25), respectively.
The finalisation of the additional consideration is a measurement period adjustment under IFRS 3
‘Business combinations‘, which resulted in an increase of ‘Trademarks‘, ‘Net deferred tax liability‘ and
‘Trade and other payables‘ by €1.2 million, €0.2 million and €1.0 million respectively, compared to
the provisionally determined fair values of the net assets acquired and the additional consideration
payable disclosed in the 2023 Integrated Annual Report. Accordingly, the comparative information
of the consolidated balance sheet was revised to reflect the effect from finalisation of the additional
consideration for the acquisition of Finlandia, as described above (refer to Note 2).
The goodwill arising from the acquisition is attributable to the brand’s growth potential across the
Group’s markets.
Acquisition costs of €5.6 million were included in line ‘Operating expenses’ of the consolidated income
statement in 2023, as a result of the above acquisition.
Acquisition of BDS Vending Solutions
During the first half of 2024, the Group reached an agreement to acquire 100% of BDS Vending Solutions
Ltd (‘BDS’), a well-established food and drink vending services business in Ireland. The acquisition was
approved by the Competition and Consumer Protection Commission in Ireland on 12 February 2025 and
completed on 28 February 2025.
The consideration for the acquisition of BDS consists of €27.9 million, of which €26.4 million was paid
on completion, while the remaining €1.5 million (‘Holdback amount’) is expected to be paid within 30
months after the completion date, and a consideration adjustment that is subject to BDS’s net debt
and working capital balances on the completion date. The consideration adjustment will be determined
according to the terms of the share purchase agreement and is expected to be settled within the
second quarter of 2025.
Acquisition costs incurred during 2024 in connection with the acquisition of BDS amounted to €1.9 million
(2023: €0.7 million) and were included in line ‘Operating expenses‘ of the consolidated income statement.
Purchases of shares held by non-controlling interests
During 2024, the Group acquired a further 0.1% interest in Coca-Cola HBC Egypt for a consideration
of €0.1 million (2023: a 3.1% interest, for a consideration of €12.6 million), which was presented in
line ‘Payments for purchases of shares held by non-controlling interests’ of the consolidated cash
flow statement. In addition, during 2024, following capitalisation of certain inter-company loans by
Coca-Cola HBC Egypt as well as the successful completion of an equity injection in the subsidiary,
which was covered in its entirety by the Group, the relevant non-controlling interest was diluted by
approximately 2.0%. Following these changes, the Group held a 99.9% interest in Coca-Cola HBC Egypt
as at 31 December 2024.
During 2024, the Group also acquired the remaining 0.6% interest in CCHBC Bulgaria EAD for a
consideration of €2.8 million (2023: €nil), which was presented in line ‘Payments for purchases of shares
held by non-controlling interests’ of the consolidated cash flow statement.
Notes to the consolidated financial statements continued
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24. Financial risk management and financial instruments
Accounting policy
Financial assets
On initial recognition, financial assets are recorded at fair value plus, in the case of financial
assets not at fair value through profit or loss (FVTPL), any directly attributable transaction costs.
Transaction costs of financial assets at FVTPL are expensed.
Financial assets are classified into three categories:
a) Financial assets at amortised cost (debt instruments)
The classification of debt instruments at amortised cost depends on two criteria: a) the Group’s
business model for managing assets; and b) whether the instruments’ contractual cash flows
represent solely payments for principal and interest on the principal amount outstanding (the ‘SPPI
criterion’). If both criteria are met, the financial assets of the Group are subsequently measured at
amortised cost whereby any interest income is recognised using the effective interest method.
This category includes trade receivables, treasury bills and time deposits. The accounting policy
for trade receivables is described in Note 18.
b) Financial assets through other comprehensive income (FVOCI)
The Group also has investments in financial assets at FVOCI. These include equity investments that are
not of a trading nature. The Group intends to hold these equity instruments for the foreseeable future
and has irrevocably elected to classify them as FVOCI upon initial recognition. Upon derecognition of
these financial assets, there is no recycling of gains or losses to the income statement.
c) Financial assets through profit or loss (FVTPL)
The Group also has investments in financial assets at FVTPL which are subsequently measured at
fair value and where changes in fair value are recognised in the income statement. Financial assets
at FVTPL mainly comprise money market funds.
For those financial assets that are not subsequently measured at fair value, the Group assesses
whether there is evidence of impairment at each balance sheet date.
Derivative financial instruments
The Group uses derivative financial instruments, including currency, commodity and interest
rate derivatives, to manage currency, commodity price and interest rate risk associated with
its business activities. The Group does not enter into derivative financial instruments for
trading activity purposes.
All derivative financial instruments are initially recognised on the balance sheet at fair value and
are subsequently remeasured at their fair value. Changes in the fair value of derivative financial
instruments are recognised at each reporting date either in the income statement or in equity,
depending on whether the derivative financial instrument qualifies for hedge accounting as a fair
value hedge or cash flow hedge.
Embedded derivatives in financial host contracts are recorded at fair value through profit or loss
together with the host contracts.
All derivative financial instruments that are not part of an effective hedging relationship
(undesignated hedges) are classified as assets or liabilities at fair value through profit or loss.
At the inception of a hedge transaction, the Group documents the relationship between the
hedging instrument and the hedged item, as well as its risk management objective and strategy
for undertaking the hedge transaction. This process includes linking the derivative financial
instrument designated as a hedging instrument to the specific asset, liability, firm commitment or
forecast transaction. The Group has established a hedge ratio of 1:1 for the hedging relationships
as the underlying risk of the hedging instruments are identical to the hedged risks component.
The economic relationship between the hedged item and the hedging instrument is assessed
on an ongoing basis. Ineffectiveness may arise if the timing or the notional of the forecast
transaction changes or if the credit risk changes, impacting the fair value movements of the
hedging instruments.
Changes in the fair value of derivative financial instruments (both the intrinsic value and the aligned
time value) that are designated and effective as hedges of future cash flows are recognised directly
in other comprehensive income, while the ineffective portion is recognised immediately in the
income statement. Amounts accumulated in equity are recycled to the income statement as the
related hedged asset acquired or liability assumed affects the income statement.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated,
exercised or no longer qualifies for hedge accounting. At that time, any accumulated gain or loss
on the hedging instrument recognised in equity is retained in equity until the forecast transaction
occurs. If a hedged transaction is no longer expected to occur, the net accumulated gain or loss
recognised in equity is transferred to the income statement.
Notes to the consolidated financial statements continued
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24. Financial risk management and financial instruments continued
Derivatives embedded in non-financial host contracts are accounted for as separate derivatives
and recorded at fair value through profit or loss if:
• their economic characteristics and risks are not closely related to those of the host contracts;
• the host contracts are not designated as at fair value through profit or loss; and
• a separate instrument with the same terms as the embedded derivative meets the definition
of a derivative.
These embedded derivatives are measured at fair value with changes in fair value recognised in the
income statement. Reassessment only occurs if there is either a change in the terms of the contract
that significantly modifies the cash flows that would otherwise be required or a reclassification of a
financial asset out of the fair value through profit or loss category takes place.
Regular purchases and sales of investments are recognised on the trade date, which is the day
the Group commits to purchase or sell. The investments are recognised initially at fair value plus
transaction costs, except in the case of FVTPL. For investments traded in active markets, fair value
is determined by reference to stock exchange quoted bid prices. For other investments, fair value
is estimated by reference to the current market value of similar instruments or by reference to the
discounted cash flows of the underlying net assets or other valuation techniques.
Financial risk factors, objectives and policies
The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk,
commodity price risk and interest rate risk), credit risk, liquidity risk and capital risk. The Group’s overall
risk management programme focuses on the volatility of financial markets and seeks to minimise
potential adverse effects on the Group’s cash flows. The Group uses derivative financial instruments
to hedge certain risk exposures. Risk management is carried out by Group Treasury in a controlled
manner, consistent with the Board of Directors’ approved policies. Group Treasury identifies, evaluates
and hedges financial risks in close cooperation with the Group’s subsidiaries. The Board of Directors
has approved the treasury policy, which provides the control framework for all treasury and treasury-
related transactions.
Market risk
a) Foreign currency risk
The Group is exposed to the effect of foreign currency risk on future transactions, recognised monetary
assets and liabilities that are denominated in currencies other than the local entity’s functional currency,
as well as net investments in foreign operations. Foreign currency forward, option and futures contracts
are used to hedge a portion of the Group’s foreign currency risk. The majority of the foreign currency
forward, option and futures contracts have maturities of less than one year after the balance sheet date.
Management has set up a policy that requires Group companies to manage their foreign exchange
risk against their functional currency. To manage their foreign exchange risk arising from future
transactions and recognised monetary assets and liabilities, entities in the Group use foreign currency
forward, option and future contracts transacted by Group Treasury. Group Treasury’s risk management
policy is to hedge, on an average coverage ratio basis, between 25% and 80% of anticipated cash flows
for the next 12 months by using a layer strategy and 100% of balance sheet remeasurement risk in
each major foreign currency for which hedging is applicable. Each subsidiary designates contracts with
Group Treasury as fair value hedges or cash flow hedges, as appropriate. External foreign exchange
contracts are designated at Group level as hedges of foreign exchange risk on specific monetary
assets, monetary liabilities or future transactions on a gross basis.
The following tables present details of the Group’s sensitivity to reasonably possible increases
and decreases in the Euro and the US Dollar against the relevant foreign currencies. In determining
reasonably possible changes, the historical volatility over a 12-month period of the respective foreign
currencies in relation to the Euro and the US Dollar has been considered. The sensitivity analysis
determines the potential gains and losses in the income statement or equity arising from the Group’s
foreign exchange positions as a result of the corresponding percentage increases and decreases in the
Group’s main foreign currencies relative to the Euro and the US Dollar. The sensitivity analysis includes
outstanding foreign-currency denominated monetary items, external loans and loans between
operations within the Group where the denomination of the loan is in a currency other than the
functional currency of the local entity.
2024 exchange risk sensitivity to reasonably possible changes in the Euro against relevant
other currencies
Euro strengthens
against local currency
Euro weakens
against local currency
% historical
volatility over a
12-month
period
Loss/(gain)
in income
statement
€ million
Loss/(gain)
in equity
€ million
(Gain)/loss
in income
statement
€ million
(Gain)/loss
in equity
€ million
Egyptian Pound
48.4%
15.3
–
(44.0)
–
Nigerian Naira
53.9%
1.8
–
(7.3)
–
Russian Rouble
20.5%
(5.7)
–
8.7
–
UK Sterling
4.1%
0.3
0.1
(0.3)
(0.1)
Ukrainian Hryvnia
7.8%
0.9
–
(1.1)
–
Other
–
2.7
(7.7)
(2.9)
8.5
Total
15.3
(7.6)
(46.9)
8.4
Notes to the consolidated financial statements continued
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24. Financial risk management and financial instruments continued
2024 exchange risk sensitivity to reasonably possible changes in the US Dollar against relevant
other currencies
US Dollar strengthens
against local currency
US Dollar weakens
against local currency
% historical
volatility over a
12-month
period
Loss/(gain)
in income
statement
€ million
Loss/(gain)
in equity
€ million
(Gain)/loss
in income
statement
€ million
(Gain)/loss
in equity
€ million
Egyptian Pound
48.7%
16.7
–
(48.6)
–
Nigerian Naira
53.8%
13.1
–
(43.5)
–
Russian Rouble
20.7%
(12.5)
–
19.1
–
Ukrainian Hryvnia
4.9%
0.7
–
(0.7)
–
Other
–
0.1
–
(0.3)
–
Total
18.1
–
(74.0)
–
2023 exchange risk sensitivity to reasonably possible changes in the Euro against relevant
other currencies
Euro strengthens
against local currency
Euro weakens
against local currency
% historical
volatility over a
12-month
period
Loss/(gain)
in income
statement
€ million
Loss/(gain)
in equity
€ million
(Gain)/loss
in income
statement
€ million
(Gain)/loss
in equity
€ million
Egyptian Pound
13.0%
4.9
7.7
(6.3)
(10.0)
Nigerian Naira
35.7%
11.8
–
(26.0)
–
Russian Rouble
17.5%
(3.8)
–
5.4
–
UK Sterling
4.8%
(1.3)
(0.2)
1.5
0.2
Ukrainian Hryvnia
8.4%
2.5
–
(2.9)
–
Other
–
4.5
(6.0)
(4.1)
5.7
Total
18.6
1.5
(32.4)
(4.1)
2023 exchange risk sensitivity to reasonably possible changes in the US Dollar against relevant
other currencies
US Dollar strengthens
against local currency
US Dollar weakens
against local currency
% historical
volatility over a
12-month
period
Loss/(gain)
in income
statement
€ million
Loss/(gain)
in equity
€ million
(Gain)/loss
in income
statement
€ million
(Gain)/loss
in equity
€ million
Egyptian Pound
10.5%
7.2
1.8
(8.9)
(2.3)
Nigerian Naira
35.3%
7.7
33.5
(67.3)
(70.1)
Russian Rouble
15.3%
(8.2)
(0.6)
11.2
0.9
Ukrainian Hryvnia
3.4%
0.3
–
(0.3)
–
Other
–
(0.4)
–
0.4
–
Total
6.6
34.7
(64.9)
(71.5)
b) Commodity price risk
The Group is affected by the volatility of certain commodity prices (being mainly sugar, aluminium,
aluminium premium, plastic and gas oil) in relation to certain raw materials necessary for the production
of the Group’s products.
Due to the significantly increased volatility of commodity prices, the Group’s Board of Directors has
developed and enacted a risk management strategy regarding commodity price risk and its mitigation.
Although the Group continues to contract prices with suppliers in advance, to reduce its exposure
to the effect of short-term changes in the price of sugar, aluminium, aluminium premium, gas oil and
plastic, the Group hedges the market price of these commodities using commodity swap contracts
based on a rolling forecast for a period up to 36 months. Group Treasury’s risk management policy is
to hedge a minimum of 25% and a maximum of 80% of commodity exposure for the next 12 months,
with the exception of certain types of plastic for which lower compliance ratios apply.
The following table presents details of the Group’s income statement and equity sensitivity to
increases and decreases in sugar, aluminium, aluminium premium, plastic and gas oil prices. The table
does not show the sensitivity to the Group’s total underlying commodity exposure or the impact of
changes in volumes that may arise from an increase or decrease in the respective commodity prices.
The sensitivity analysis determines the potential effect on profit or loss and equity arising from the
Group’s commodity swap contract positions as a result of the reasonably possible increases or
decreases of the respective commodity price. In determining reasonably possible changes of the
respective commodity price, the historical volatility over a 12-month period per contract maturity
has been considered.
Notes to the consolidated financial statements continued
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24. Financial risk management and financial instruments continued
2024 commodity price risk sensitivity to reasonably possible changes in the commodity price
of relevant commodities
Commodity price increases with
all other variables held constant
Commodity price decreases with
all other variables held constant
% historical
volatility over a
12-month period
per contract
maturity
(Gain)/loss
in income
statement
€ million
(Gain)/loss
in equity
€ million
Loss/(gain)
in income
statement
€ million
Loss/(gain)
in equity
€ million
Sugar
16.3%
–
(37.8)
–
37.8
Aluminium
22.1%
(1.0)
(24.9)
1.0
24.9
Aluminium premium
34.5%
–
(4.3)
–
4.3
Gas oil
27.8%
–
(5.0)
–
5.0
Plastic
12.2%
(3.4)
–
3.4
–
Total
(4.4)
(72.0)
4.4
72.0
2023 commodity price risk sensitivity to reasonably possible changes in the commodity price
of relevant commodities
Commodity price increases with
all other variables held constant
Commodity price decreases with
all other variables held constant
% historical volatility
over a 12-month
period per contract
maturity
(Gain)/loss
in income
statement
€ million
(Gain)/loss
in equity
€ million
Loss/(gain)
in income
statement
€ million
Loss/(gain)
in equity
€ million
Sugar
18.8%
(1.6)
(42.3)
1.6
42.3
Aluminium
21.4%
(1.7)
(29.3)
1.7
29.3
Aluminium premium
29.0%
(0.1)
(2.6)
0.1
2.6
Gas oil
36.1%
–
(5.8)
–
5.8
Plastic
17.0%
(2.2)
–
2.2
–
Total
(5.6)
(80.0)
5.6
80.0
c) Interest rate risk
The Group is subject to interest rate risk for its outstanding borrowings and interest rate swap
contracts. The sensitivity analysis in the following table has been determined based on exposure
to interest rates of both derivative and non-derivative instruments existing at the balance sheet date
and assuming constant foreign exchange rates. For floating rate liabilities, the analysis is prepared
assuming the amount of liability outstanding at the balance sheet date was outstanding for the whole
year. A 100 basis point increase or decrease for 2024 (2023: 100 basis point) represents management’s
assessment of a reasonably possible change in interest rates.
Interest rate risk sensitivity to reasonably possible changes in interest rates
2024
2023
Loss/(gain)
in income
statement
€ million
(Gain)/loss
in equity
€ million
Loss/(gain) in
income
statement
€ million
(Gain)/loss
in equity
€ million
Increase by 100 basis points
3.9
–
0.1
(8.8)
Decrease by 100 basis points
(3.9)
–
(0.1)
1.8
The impact in the Group’s income statement in 2024 is attributable to the changes in the fair value
of the fixed-to-floating interest rate swaps entered in 2024 for a notional amount of €600 million and
designated as hedging instruments in a fair value hedge.
The impact in the Group’s equity in 2023 is attributable to the changes in the fair value of the swaptions
entered in 2023 for a notional amount of €525.0 million in relation to the Group’s Euro-denominated
forecast issuance of fixed rate debt in 2024 and formally designated as cash flow hedges. In February
2024 the swaption contracts were unwound and, at the same time, the new notes were issued.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its obligations under the contract or arrangement. The Group has limited concentration
of credit risk across trade and financial counterparties. Credit policies are in place and the exposure to
credit risk is monitored on an ongoing basis.
The Group’s maximum exposure to credit risk in the event that counterparties fail to meet their
obligations as at 31 December 2024 in relation to each class of recognised financial asset is the carrying
amount of those assets as indicated on the balance sheet.
Under the credit policies, before accepting any new credit customers, the Group investigates the
potential customer’s credit quality, using either external agencies and in some cases bank references
and/or historic experience, and defines credit limits for each customer. Customers that fail to meet
the Group’s benchmark credit quality may transact with the Group only on a prepayment or cash basis.
Customers are reviewed on an ongoing basis and credit limits are adjusted accordingly. The Group
also carries credit insurance on a portion of the accounts receivable balance. There is no significant
concentration of credit risk with regard to loans, trade and other receivables as the Group has a large
number of customers which are geographically dispersed.
The Group has policies that limit the amount of credit exposure to any single financial institution.
The Group only undertakes investment and derivative transactions with banks and financial institutions
that have a minimum credit rating of ‘BBB-’ from Standard & Poor’s and ‘Baa3’ from Moody’s, unless the
investment is in countries where the Sovereign Credit Rating is below the ‘BBB-/Baa3’. The Group also
uses Credit Default Swaps of a counterparty in order to measure in a timelier way the creditworthiness
of a counterparty and set up its counterparties in tiers in order to assign maximum exposure and tenor
per tier. If the Credit Default Swaps of a certain counterparty exceed 400 basis points, the Group will
stop trading derivatives with that counterparty and will try to cancel any deposits on a best-effort
basis. In addition, the Group regularly makes use of time deposits and money market funds to invest
excess cash balances and to diversify its counterparty risk. As at 31 December 2024, an amount of
€619.0 million (2023: €54.8 million) is invested in time deposits with tenor of more than three months
and €265.0 million (2023: €513.8 million) is invested in money market funds.
Notes to the consolidated financial statements continued
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24. Financial risk management and financial instruments continued
Liquidity risk
The Group actively manages liquidity risk to ensure there are sufficient funds available for any short-term
and long-term commitments. Bank overdrafts and bank facilities, both committed and uncommitted,
are used to manage this risk.
The Group manages liquidity risk by maintaining adequate cash reserves and committed banking
facilities, access to the debt and equity capital markets, and by continuously monitoring forecast and
actual cash flows. In Note 25, the undrawn facilities that the Group has at its disposal to manage liquidity
risk are discussed under the headings ‘Commercial paper programme’ , ‘Committed credit facilities’
and ‘Uncommitted loan agreement’.
The Group has entered into a supply chain financing programme with a single counterparty. The
Group’s payment terms for the trade payables covered by the programme are identical to the payment
terms for other trade payables. The Group has no significant concentration of liquidity risk with the
counterparty, and the programme has been established to manage the Group’s working capital needs
(refer to Note 20).
As at 31 December 2024, the Group has a net debt of €1.5 billion (refer to Note 25), of which a €500
million Euro-denominated fixed rate bond matures in September 2025. In addition, the Group has an
undrawn revolving credit facility of €800 million available, €0.8 billion available out of the €1.0 billion
commercial paper facility, as well as an undrawn uncommitted loan agreement of €200 million.
The following tables detail the Group’s remaining contractual maturities for its financial liabilities.
The tables include both interest and principal undiscounted cash flows, assuming that interest rates
remain constant from 31 December 2024.
Up to
one year
€ million
One to
two years
€ million
Two to
five years
€ million
Over
five years
€ million
Total
€ million
Borrowings
863.0
73.4
1,957.2
1,142.2
4,035.8
Derivative liabilities
19.3
9.4
0.5
–
29.2
Trade and other payables
(excluding other tax & social
security, contract liabilities
and deferred income)
2,466.5
0.5
1.2
3.2
2,471.4
Leases
75.4
62.3
105.5
56.1
299.3
As at 31 December 2024
3,424.2
145.6
2,064.4
1,201.5
6,835.7
Up to
one year
€ million
One to
two years
€ million
Two to
five years
€ million
Over
five years
€ million
Total
€ million
Borrowings
923.2
546.0
775.3
1,132.4
3,376.9
Derivative liabilities
67.3
3.7
2.0
–
73.0
Trade and other payables
(excluding other tax
& social security and
contract liabilities)
2,289.8
0.4
1.1
3.6
2,294.9
Leases
66.7
53.0
78.4
56.9
255.0
As at 31 December 2023
3,347.0
603.1
856.8
1,192.9
5,999.8
Capital risk
Accounting policy
The Group monitors its financial capacity and credit ratings by reference to a number of key financial
ratios including net debt to comparable adjusted EBITDA, which provides a framework within which
the Group’s capital base is managed. This ratio is calculated as net debt divided by comparable
adjusted EBITDA.
Adjusted EBITDA is calculated by adding back to operating profit the depreciation and net
impairment of property, plant and equipment, the amortisation and net impairment of intangible
assets, the employee performance share costs, the net impairment of equity method investments
and items, if any, reported in line ‘Other non-cash items’ of the consolidated cash flow statement.
Comparable adjusted EBITDA refers to adjusted EBITDA excluding restructuring costs, exceptional
items related to the Russia-Ukraine conflict, acquisition, integration and divestment-related costs or
gains and the unrealised gains or losses resulting from the mark-to-market valuation of derivatives
and embedded derivatives related to commodity hedging.
Refer to Note 25 for definition of net debt.
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may increase or decrease debt, issue or
buy back shares, adjust the amount of dividends paid to shareholders, or return capital to shareholders.
Notes to the consolidated financial statements continued
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The Group’s goal is to maintain a conservative financial profile. This is evidenced by the credit ratings
maintained with Standard & Poor’s and Moody’s, which were reaffirmed in 2024.
Rating agency
Publication date
Long-term debt
Outlook
Short-term debt
Standard & Poor’s
August 2024
BBB+
Stable
A2
Moody’s
May 2024
Baa1
Stable
P2
The Group’s medium- to long-term target is to maintain the net debt to comparable adjusted EBITDA
ratio within a 1.5 to 2.0 range.
The ratios as at 31 December were as follows:
2024
€ million
2023
€ million
Net debt (refer to Note 25)
1,524.5
1,595.3
Operating profit
1,185.4
953.6
Depreciation and impairment of property, plant and equipment,
including right-of-use assets
395.7
399.9
Amortisation and impairment of intangible assets
1.1
113.9
Employee performance shares
15.6
20.4
Adjusted EBITDA
1,597.8
1,487.8
Other restructuring costs (primarily termination benefits)
3.3
7.6
Unrealised loss on commodity derivatives
1.1
4.6
Exceptional items related to Russia-Ukraine conflict
–
(0.2)
Acquisition costs
1.9
6.3
Comparable adjusted EBITDA
1,604.1
1,506.1
Net debt/comparable adjusted EBITDA ratio
0.95
1.06
The reconciliation of other restructuring costs to total restructuring costs for the years ended
31 December was as follows:
2024
€ million
2023
€ million
Total restructuring costs included in operating expenses (refer to Note 8)
3.3
9.0
Less: Impairment of property, plant and equipment presented
as part of restructuring costs
–
(1.4)
Other restructuring costs (primarily termination benefits)
3.3
7.6
Hedging activity
The carrying amount of the derivative financial instruments are included in lines ‘Other financial assets’
and ‘Other financial liabilities’ of the consolidated balance sheet.
a) Cash flow hedges
The impact of the hedging instruments on the consolidated balance sheet was:
As at 31 December 2024
Notional amount
€ million
Carrying amount
€ million
Period of
maturity date
Contracts with positive fair values
239.4
16.0
Non-current
21.1
0.8
Commodity swap contracts
21.1
0.8
Jan26 – Nov 27
Current
218.3
15.2
Foreign currency forward contracts
101.0
0.8
Jan25 – Dec25
Commodity swap contracts
117.3
14.4
Jan25 – Dec25
Contracts with negative fair values
356.0
(19.1)
Non-current
118.6
(9.9)
Commodity swap contracts
118.6
(9.9)
Jan26 – Sep27
Current
237.4
(9.2)
Foreign currency forward contracts
118.3
(0.7)
Jan25 – Jun25
Commodity swap contracts
119.1
(8.5)
Jan25 – Dec25
Notes to the consolidated financial statements continued
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As at 31 December 2023
Notional amount
€ million
Carrying amount
€ million
Period of
maturity date
Contracts with positive fair values
695.5
15.6
Non-current
79.0
4.0
Commodity swap contracts
79.0
4.0
Jan25 – Nov25
Current
616.5
11.6
Foreign currency forward contracts
15.0
0.2
Jan24 – Jun24
Interest rate contracts
525.0
1.9
Jun24
Commodity swap contracts
76.5
9.5
Jan24 – Dec24
Contracts with negative fair values
382.6
(23.2)
Non-current
80.3
(5.7)
Commodity swap contracts
80.3
(5.7)
Jan25 – Sep26
Current
302.3
(17.5)
Foreign currency forward contracts
136.8
(2.4)
Jan24 – Dec24
Commodity swap contracts
165.5
(15.1)
Jan24 – Dec24
The impact on the hedging reserve as a result of applying cash flow hedge accounting was:
Spot
component
of foreign
currency
contracts
€ million
Cost of
hedging reserve
of foreign
currency
contracts
€ million
Commodity
swap
contracts
€ million
Interest
rate swap
contracts
€ million
Total
€ million
Opening balance as at 1 January 2023
(1.7)
0.4
11.0
(14.1)
(4.4)
Net gain on cash flow hedges
(0.8)
–
14.1
6.4
19.7
Change in fair value of hedging
instruments recognised in OCI
(0.8)
–
14.5
(0.2)
13.5
Reclassified to income statement
–
–
(0.4)
6.6
6.2
Cost of hedging recognised in OCI
–
(3.9)
–
(3.2)
(7.1)
Reclassified to inventories
(1.2)
4.1
(33.7)
–
(30.8)
Closing balance as at 31 December 2023
(3.7)
0.6
(8.6)
(10.9)
(22.6)
Net gain on cash flow hedges
2.3
–
3.0
5.5
10.8
Change in fair value of hedging
instruments recognised in OCI
2.3
–
3.6
(0.8)
5.1
Reclassified to income statement
–
–
(0.6)
6.3
5.7
Cost of hedging recognised in OCI
–
(2.1)
–
(0.2)
(2.3)
Reclassified to inventories
(0.6)
2.6
2.0
–
4.0
Closing balance as at 31 December 2024
(2.0)
1.1
(3.6)
(5.6)
(10.1)
Notes to the consolidated financial statements continued
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The effect of the cash flow hedges in the consolidated income statement was:
2024
(Gain)/loss
€ million
2023
(Gain)/loss
€ million
Net amount reclassified from other comprehensive income
to cost of goods sold
(0.6)
(0.4)
Net amount reclassified from other comprehensive income
to finance costs
6.3
6.6
Total
5.7
6.2
The ineffectiveness on the cash flow hedges for the year ended 31 December 2024 was €1.4 million
loss (2023: €2.6 million loss) recorded within cost of goods sold.
b) Fair value hedges
The impact of the hedging instruments on the consolidated balance sheet was:
As at 31 December 2024
Notional amount
€ million
Carrying amount
€ million
Period of
maturity date
Contracts with positive fair values
600.0
24.0
Non-current
600.0
24.0
Interest rate swap contracts
600.0
24.0
Feb28
The ineffectiveness on the fair value hedges for the year ended 31 December 2024 was €0.5 million loss
recorded within interest expense.
c) Undesignated hedges
The fair values of derivative financial instruments as at 31 December which economically hedge
Group’s risks and for which hedge accounting has not been applied were:
As at 31 December 2024
Notional amount
€ million
Carrying amount
€ million
Period of
maturity date
Contracts with positive fair values
178.1
1.6
Current
178.1
1.6
Foreign currency forward contracts
172.2
1.2
Jan25 – Nov25
Commodity swap contracts
5.9
0.4
Jan25 – Nov25
Contracts with negative fair values
326.7
(10.1)
Current
326.7
(10.1)
Embedded derivatives
18.9
(2.3) Jan25 – Dec25
Foreign currency forward contracts
275.9
(2.3) Jan25 – Nov25
Commodity swap contracts
31.9
(5.5) Jan25 – Dec25
As at 31 December 2023
Notional amount
€ million
Carrying amount
€ million
Period of
maturity date
Contracts with positive fair values
545.8
85.9
Current
545.8
85.9
Foreign currency future contracts
177.6
82.9
Jan24 – Jun 24
Foreign currency forward contracts
366.2
2.9
Jan24 – Dec24
Commodity swap contracts
2.0
0.1
Sep24 – Oct24
Contracts with negative fair values
468.3
(49.8)
Current
468.3
(49.8)
Embedded derivatives
21.4
(9.1)
Jan24 – Dec24
Foreign currency forward contracts
426.6
(39.3)
Jan24 – Dec24
Commodity swap contracts
20.3
(1.4)
Jan24 – Nov24
The effect of the undesignated hedges in the consolidated income statement was:
2024
(Gain)/loss
€ million
2023
Loss/(gain)
€ million
Net amount recognised in cost of goods sold
(0.3)
6.9
Net amount recognised in operating expenses
(10.3)
(40.4)
Net amount recognised in finance cost
25.2
(30.5)
Total
14.6
(64.0)
Notes to the consolidated financial statements continued
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Financial instruments’ categories
Categories of financial instruments as at 31 December were as follows (in € million):
2024
Analysis of total assets
Assets
Debt financial
assets at
amortised cost
Assets at
FVTPL
Derivatives
designated
as hedging
instruments
Equity
financial
assets at
FVOCI
Total
current and
non-current
Current Non-current
Investments including loans
to related parties
623.5
277.6
–
18.7
919.8
884.9
34.9
Derivative financial
instruments
–
1.6
40.0
–
41.6
16.8
24.8
Trade and other receivables
1,054.4
–
–
–
1,054.4
1,047.8
6.6
Cash and cash equivalents
1,548.1
–
–
–
1,548.1
1,548.1
–
Total
3,226.0
279.2
40.0
18.7
3,563.9
3,497.6
66.3
Analysis of total assets
Liabilities
Liabilities
held at
amortised
cost
Liabilities at
FVTPL
Derivatives
designated
as hedging
instruments
Total
current and
non-current
Current Non-current
Trade and other payables
(excluding other tax & social security,
contract liabilities and deferred income)
2,471.4
–
–
2,471.4
2,466.5
4.9
Borrowings
3,980.6
–
–
3,980.6
888.7
3,091.9
Derivative financial instruments
–
10.1
19.1
29.2
19.3
9.9
Total
6,452.0
10.1
19.1
6,481.2
3,374.5
3,106.7
2023
Analysis of total assets
Assets
Debt financial
assets at
amortised cost
Assets at
FVTPL
Derivatives
designated
as hedging
instruments
Equity
financial
assets at
FVOCI
Total
current and
non-current
Current
Non-current
Investments including loans
to related parties
60.1
519.7
–
9.9
589.7
570.4
19.3
Derivative financial
instruments
–
85.9
15.6
–
101.5
97.5
4.0
Trade and other receivables
1,054.0
–
–
–
1,054.0
1,051.5
2.5
Cash and cash equivalents
1,260.6
–
–
–
1,260.6
1,260.6
–
Total
2,374.7
605.6
15.6
9.9
3,005.8
2,980.0
25.8
Analysis of total assets
Liabilities
Liabilities
held at
amortised
cost
Liabilities at
FVTPL
Derivatives
designated
as hedging
instruments
Total
current and
non-current
Current
Non-current
Trade and other payables
(excluding other tax & social security,
contract liabilities and deferred income)
2,294.9
–
–
2,294.9
2,289.8
5.1
Borrowings
3,424.5
–
–
3,424.5
948.1
2,476.4
Derivative financial instruments
–
49.8
23.2
73.0
67.3
5.7
Total
5,719.4
49.8
23.2
5,792.4
3,305.2
2,487.2
Notes to the consolidated financial statements continued
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Interest rate swap contracts
The Group entered into forward starting swap contracts of €500.0 million in 2014 to hedge the interest
rate risk related to its Euro-denominated forecast issuance of fixed rate debt in March 2016. In August
2015, the Group entered into additional forward starting swap contracts of €100.0 million. In March
2016, the forward starting swap contracts were settled and, at the same time, the note was issued.
The accumulated loss of €55.4 million recorded in other comprehensive income was amortised to
the income statement over the term of the note, which matured in November 2024.
The Group entered into swaption contracts of €350.0 million in 2018 and €1,050.0 million in 2019
to hedge the interest rate risk related to its Euro-denominated forecast issuance of fixed rate debt
in 2019 and formally designated them as cash flow hedges. In May and November 2019, the swaption
contracts were settled and, at the same time, the notes were issued. The accumulated loss of €9.6
million recorded in other comprehensive income is being amortised to the income statement over
the term of the relevant notes.
The Group entered into swaption contracts of €180.0 million in 2022 to hedge the interest rate risk
related to its Euro-denominated forecast issuance of fixed rate debt in 2022 and formally designated
them as cash flow hedges. In September 2022, the swaption contracts were settled and, at the same
time, the note was issued. The accumulated gain of €3.4 million recorded in other comprehensive
income is being amortised to the income statement over the term of the note.
The Group entered into swaption contracts of €525.0 million in 2023 to hedge the interest rate risk
related to its Euro-denominated forecast issuance of fixed rate debt in 2024 and formally designated
them as cash flow hedges. In February 2024, the swaption contracts were unwound and, at the same
time, the new note was issued. The unwound swaption contracts were settled in June and July 2024.
The accumulated loss of €2.9 million recorded in other comprehensive income is being amortised to
the income statement over the term of the new note.
In 2024, in anticipation of interest rates’ decrease, the Group entered into fixed-to-floating interest rate
swaps with a notional amount of €600.0 million in connection with the €600.0 million bond maturing in
February 2028 and included in line ‘Borrowings’ of total non-current liabilities in the consolidated balance
sheet (refer to Note 25), which were designated as fair value hedges. The valuation of the outstanding
interest rate swaps for the year ended 31 December 2024 was a financial asset of €24.0 million.
The Group entered into swaption contracts of €375.0 million in 2024 to hedge the interest rate risk
related to its Euro-denominated forecast issuance of fixed rate debt in 2024 and formally designated
them as cash flow hedges. In November 2024, the swaption contracts were unwound and, at the same
time, the new note was issued. The unwound swaption contracts were settled in December 2024. The
accumulated loss of €1.6 million recorded in other comprehensive income is being amortised to the
income statement over the term of the new note.
Embedded derivatives
During 2024 and 2023, the Group recognised embedded derivatives whose risks and economic
characteristics are not considered to be closely related to the commodity contract in which they were
embedded. The fair value of the embedded derivatives as at 31 December 2024 amounted to a financial
liability of €2.3 million (2023: €9.1 million).
Fair values of financial assets and liabilities
For financial instruments such as cash, deposits, debtors and creditors, investments, loans payable
to related parties, short-term borrowings (excluding the current portion of bonds and notes payable)
and other financial liabilities (other than bonds and notes payable), carrying values are a reasonable
approximation of their fair values. According to the fair value hierarchy, the financial instruments
measured at fair value are classified as follows:
Level 1
The fair value of FVOCI listed equity securities as well as FVTPL securities is based on quoted
market prices at the reported date. The fair value of bonds is based on quoted market prices
at the reported date.
Level 2
The fair value of foreign currency forward, option and futures contracts, commodity swap contracts,
bonds and notes payable, interest rate option and swap contracts, forward starting swap contracts
and embedded foreign currency derivatives is determined by using valuation techniques, which
maximise the use of observable market data and include discounting. The fair value of the foreign
currency forward, option and future contracts, commodity swap contracts, embedded foreign
currency derivatives and cross-currency swap contracts is calculated by reference to quoted forward
exchange and deposit rates, interest rates and forward rate curves of the underlying commodity at the
reported date for contracts with similar maturity dates. The fair value of interest rate option contracts
is calculated by reference to the Black-Scholes valuation model and implied volatilities. The fair value of
interest rate swap contracts is determined as the difference in the present value of the future interest
cash inflows and outflows based on observable yield curves.
Level 3
The fair value of FVOCI unlisted equity securities as well as convertible note agreements, certain
undesignated derivatives and foreign currency futures and forward contracts is determined through
the use of estimated discounted cash flows or other valuation techniques that use unobservable
inputs. These valuation techniques estimate the fair value of undesignated derivatives by using
settlement and forward prices received from counterparty banks and subscription-based publications
and the fair value of foreign currency futures and forward contracts by using adjusted quoted
prices. The Group also uses foreign currency futures (FMDQ) to mitigate the currency risk related to
Nigerian Naira. The valuation of these derivatives is based on the spot rates indicated by the Nigerian
Autonomous Foreign Exchange (NAFEX) index adjusted with the counterparty credit risk.
Transfers between levels of the fair value hierarchy are deemed to have occurred at the date of the
event or change in circumstances that caused the transfer.
Notes to the consolidated financial statements continued
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The following table provides the fair value hierarchy levels into which fair value measurements are
categorised for assets and liabilities measured at fair value as at 31 December 2024:
Level 1
€ million
Level 2
€ million
Level 3
€ million
Total
€ million
Financial assets at FVTPL
Foreign currency forward contracts
–
1.2
–
1.2
Commodity swap contracts
–
0.4
–
0.4
Money market funds
265.0
–
–
265.0
Convertible note agreements
–
–
12.6
12.6
Derivative financial assets used
for hedging
Cash flow hedges
Foreign currency forward contracts
–
0.8
–
0.8
Commodity swap contracts
–
15.2
–
15.2
Fair value hedges
Interest rate swap contracts
–
24.0
–
24.0
Assets at FVOCI
Equity securities
2.1
–
16.6
18.7
Total financial assets
267.1
41.6
29.2
337.9
Financial liabilities at FVTPL
Foreign currency forward contracts
–
(2.3)
–
(2.3)
Embedded derivatives
–
(2.3)
–
(2.3)
Commodity swap contracts
–
(0.1)
(5.4)
(5.5)
Derivative financial liabilities used
for hedging
Cash flow hedges
Foreign currency forward contracts
–
(0.7)
–
(0.7)
Commodity swap contracts
–
(18.4)
–
(18.4)
Total financial liabilities
–
(23.8)
(5.4)
(29.2)
There were no transfers between Level 1, Level 2 and Level 3 in the year.
The following table provides the fair value hierarchy levels into which fair value measurements are
categorised for assets and liabilities measured at fair value as at 31 December 2023:
Level 1
€ million
Level 2
€ million
Level 3
€ million
Total
€ million
Financial assets at FVTPL
Foreign currency forward contracts
–
2.9
–
2.9
Foreign currency futures contracts
–
–
82.9
82.9
Commodity swap contracts
–
0.1
–
0.1
Money market funds
513.8
–
–
513.8
Convertible note agreements
–
–
5.9
5.9
Derivative financial assets used
for hedging
Cash flow hedges
Foreign currency forward contracts
–
0.2
–
0.2
Interest rate swap contracts
–
1.9
–
1.9
Commodity swap contracts
–
13.5
–
13.5
Assets at FVOCI
Equity securities
1.1
–
8.8
9.9
Total financial assets
514.9
18.6
97.6
631.1
Financial liabilities at FVTPL
Foreign currency forward contracts
–
(4.3)
(35.0)
(39.3)
Embedded derivatives
–
(9.1)
–
(9.1)
Commodity swap contracts
–
(0.2)
(1.2)
(1.4)
Derivative financial liabilities used
for hedging
Cash flow hedges
Foreign currency forward contracts
–
(2.4)
–
(2.4)
Commodity swap contracts
–
(20.8)
–
(20.8)
Total financial liabilities
–
(36.8)
(36.2)
(73.0)
There were no transfers between Level 1, Level 2 and Level 3 in the year.
Notes to the consolidated financial statements continued
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The following table presents the changes in Level 3 items for the years ended 31 December 2023
and 2024:
Commodity
swap contracts
€ million
Foreign
currency
contracts
€ million
Equity
securities
€ million
Convertible
note
agreements
€ million
Total
€ million
Balance as at 1 January 2023
(3.8)
(2.3)
2.9
1.5
(1.7)
(Losses)/gains recognised in the
income statement
(0.8)
106.1
–
–
105.3
Payments for/(proceeds from)
settlement of derivatives
4.4
(29.2)
–
–
(24.8)
Additions of financial assets at FVOCI
–
–
5.9
–
5.9
Capitalised interest
–
–
–
0.2
0.2
Additions of financial assets at FVTPL
–
–
–
4.2
4.2
Foreign currency translation
(1.0)
(26.7)
–
–
(27.7)
Balance as at 31 December 2023
(1.2)
47.9
8.8
5.9
61.4
(Losses)/gains recognised in the
income statement
(3.6)
1.0
–
0.4
(2.2)
(Proceeds from)/payments for
settlement of derivatives
(0.5)
(38.0)
–
–
(38.5)
Additions of financial assets at FVOCI
–
–
5.8
–
5.8
Capitalised interest
–
–
–
0.3
0.3
Additions of financial assets at FVTPL
–
–
–
8.0
8.0
Conversion of notes held as financial
assets at FVTPL
–
–
2.0
(2.0)
–
Foreign currency translation
(0.1)
(10.9)
–
–
(11.0)
Balance as at 31 December 2024
(5.4)
–
16.6
12.6
23.8
25. Net debt
Accounting policy
Borrowings are initially recognised at the fair value net of transaction costs incurred.
After initial recognition, all interest-bearing borrowings are subsequently measured at amortised
cost. Amortised cost is calculated using the effective interest rate method whereby any discount,
premium or transaction costs associated with a borrowing are amortised to the income statement
over the borrowing period.
Refer also to Note 16 for accounting policy on leases.
Cash and cash equivalents comprise cash balances and short-term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to insignificant risk of
change in value. Bank overdrafts are classified as short-term borrowings in the balance sheet and
for the purpose of the cash flow statement. Time deposits and treasury bills that do not meet the
definition of cash and cash equivalents are classified as short-term investments at amortised cost.
Money market funds are classified as short-term investments at fair value through profit or loss.
The Group has elected to report cash receipts and payments regarding investments at amortised
cost and fair value through profit or loss respectively, on a net basis in the consolidated cash flow
statement, considering that the relevant amounts are large, turnover is quick and maturities (where
applicable) are short. These investments are expected to be continually renewed, taking into
account market returns and cash generation of the Group.
Net debt is defined as current and non-current borrowings net of the fair value of fixed-to-floating
interest rate swaps, less cash and cash equivalents and other financial assets (time deposits,
treasury bills and money market funds).
Net debt for the year ended 31 December comprised:
2024
€ million
2023
€ million
Current borrowings
888.7
948.1
Non-current borrowings
3,091.9
2,476.4
Interest rate swaps (fixed-to-floating)
(24.0)
–
Less: Cash and cash equivalents
(1,548.1)
(1,260.6)
• Financial assets at amortised cost
(619.0)
(54.8)
• Financial assets at fair value through profit or loss
(265.0)
(513.8)
Less: Other financial assets
(884.0)
(568.6)
Net debt
1,524.5
1,595.3
The financial assets at amortised cost relate to time deposits, while the financial assets at fair value
through profit or loss relate to money market funds. Line ‘Other financial assets’, within ‘Total current
assets’ of the consolidated balance sheet includes derivative financial instruments of €16.8 million (31
December 2023: €97.5 million) and loans receivable from related parties of €0.9 million (31 December
2023: €1.8 million).
Notes to the consolidated financial statements continued
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
25. Net debt continued
a) Borrowings
The Group held the following borrowings as at 31 December:
2024
€ million
2023
€ million
Bonds, bills and unsecured notes
498.8
599.5
Commercial paper
215.0
211.0
Loans payable to related parties (refer to Note 27)
2.7
2.7
Other borrowings
108.7
79.6
825.2
892.8
Obligations under leases falling due within one year
63.5
55.3
Total borrowings falling due within one year
888.7
948.1
Borrowings falling due within one to two years
Bonds, bills and unsecured notes
–
497.1
Borrowings falling due within two to five years
Bonds, bills and unsecured notes
1,806.8
697.8
Borrowings falling due in more than five years
Bonds, bills and unsecured notes
1,066.7
1,092.9
Other borrowings
27.9
33.8
2,901.4
2,321.6
Obligations under leases falling due in more than one year
190.5
154.8
Total borrowings falling due after one year
3,091.9
2,476.4
Total borrowings
3,980.6
3,424.5
Reconciliation of liabilities to cash flows arising from financing activities:
Borrowings
Leases
Due within
one year
€ million
Due in more
than one
year
€ million
Due within
one year
€ million
Due in more
than one
year
€ million
Derivative
(assets)/
liabilities
€ million
Total
€ million
Balance as at 1 January 2023
283.1
2,930.8
53.9
152.1
(3.3) 3,416.6
Cash flows
Proceeds from borrowings
136.4
–
–
–
–
136.4
Repayments of borrowings
(89.7)
–
–
–
–
(89.7)
Principal repayments of lease obligations
–
–
(59.1)
–
–
(59.1)
Interest paid
(61.3)
–
(14.9)
–
–
(76.2)
Proceeds from settlement of derivatives
regarding financing activities
–
–
–
–
4.6
4.6
Total cash flows
(14.6)
–
(74.0)
–
4.6
(84.0)
Leases increase
–
–
2.2
84.5
–
86.7
Arising from business combinations
–
–
0.5
6.0
–
6.5
Effect of changes in exchange rates
(20.5)
(26.7)
(7.0)
(17.1)
–
(71.3)
Other non-cash movements
644.8
(582.5)
79.7
(70.7)
(16.2)
55.1
Balance as at 31 December 2023
892.8
2,321.6
55.3
154.8
(14.9) 3,409.6
Cash flows
Proceeds from borrowings
160.3
1,104.9
–
–
–
1,265.2
Repayments of borrowings
(727.3)
(21.2)
–
–
–
(748.5)
Principal repayments of lease obligations
–
–
(60.8)
–
–
(60.8)
Interest paid
(85.5)
(0.5)
(14.4)
–
–
(100.4)
Payments for settlement of derivatives
and funded forward contracts regarding
financing activities
–
–
–
–
(42.0)
(42.0)
Total cash flows
(652.5) 1,083.2
(75.2)
–
(42.0)
313.5
Leases increase
–
–
2.5
143.4
–
145.9
Effect of changes in exchange rates
(24.9)
(9.7)
(3.3)
(8.8)
–
(46.7)
Other non-cash movements
609.8
(493.7)
84.2
(98.9)
32.9
134.3
Balance as at 31 December 2024
825.2
2,901.4
63.5
190.5
(24.0) 3,956.6
The ‘Other non-cash movements’ primarily include the transfer from long-term to short-term liabilities
and interest incurred.
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
25. Net debt continued
Commercial paper programme
In October 2013 the Group established a €1.0 billion Euro-commercial paper programme (the ‘CP
programme’) which was last updated in May 2023, to further diversify its short-term funding sources.
The Euro-commercial paper notes may be issued either as non-interest-bearing notes sold at a
discount or as interest-bearing notes at a fixed or floating rate. All commercial paper issued under the
CP programme must be repaid within 7 to 364 days. The CP programme has been granted the Short
Term Euro Paper label (STEP) and commercial paper is issued through Coca-Cola HBC’s fully owned
subsidiary Coca-Cola HBC Finance B.V. and is fully, unconditionally and irrevocably guaranteed by Coca-
Cola HBC AG. The outstanding amount under the CP programme as at 31 December 2024 was €215
million (2023: €211.0 million).
Committed credit facilities
In April 2019, the Group updated its then-existing €500.0 million syndicated revolving credit facility,
which was set to expire in June 2021. The updated syndicated revolving credit facility has been
increased to €800.0 million and was extended to April 2024, with the option to be extended for up to
two more years until April 2026. In March 2020, the Company exercised its extension option and the
facility was extended to April 2025. In April 2021, the Company exercised its second option to further
extend the maturity of the syndicated loan facility to April 2026. This facility can be used for general
corporate purposes and carries a floating interest rate over EURIBOR. No amounts have been drawn
under the syndicated revolving credit facility since inception. The borrower in the syndicated revolving
credit facility is Coca-Cola HBC’s fully-owned subsidiary Coca-Cola HBC Finance B.V. and any amounts
drawn under the facility are fully, unconditionally and irrevocably guaranteed by Coca-Cola HBC AG.
In December 2019, the Group established a loan facility of US Dollar 85.0 million to finance the purchase
of production equipment by the Group’s subsidiary in Nigeria. The facility has been drawn down by
Nigerian Bottling Company (NBC) over the course of 2020 and 2021, maturing in 2027. The obligations
under this facility are guaranteed by Coca-Cola HBC AG. As at 31 December 2024, the outstanding
liability amounted to €36.1 million (2023: €45.4 million).
In July 2024, the Group established a loan facility of US Dollar 130.0 million with the European Bank
for Reconstruction and Development (EBRD) to finance the capital expenditure and working capital
requirements of the Group’s subsidiary in Egypt. The loan facility is guaranteed by Coca-Cola HBC
AG and ultimately matures in 2031. As at 31 December 2024, the outstanding liability amounted to
€4.8 million.
Uncommitted loan agreement
In August 2022, the Group established an uncommitted money market loan agreement of €250.0
million, which was subsequently reduced to €200.0 million in October 2022. The loan agreement can
be used for general corporate purposes. No amounts have been drawn under the money market loan
agreement since its inception. The borrower in the money market loan agreement is Coca-Cola HBC’s
fully-owned subsidiary Coca-Cola HBC Finance B.V.
Euro medium-term note programme
In June 2013, the Group established a new €3.0 billion Euro medium-term note programme (the ‘EMTN
programme’). The EMTN programme was increased to €5.0 billion in April 2019, and was last updated in
December 2023. Notes are issued under the EMTN programme through Coca-Cola HBC’s fully-owned
subsidiary Coca-Cola HBC Finance B.V. and are fully, unconditionally and irrevocably guaranteed by
Coca-Cola HBC AG.
In March 2016, Coca-Cola HBC Finance B.V. completed the issue of a €600 million Euro-denominated
fixed rate bond with a coupon rate of 1.875%, which matured in November 2024. The net proceeds of
this issue were used to partially repay €214.6 million of the 4.25%, €600 million seven-year fixed rate
notes due in November 2016, while the remaining €385.4 million was repaid in November 2016 upon
their maturity.
In May 2019, Coca-Cola HBC Finance B.V. completed the issue of a €700 million Euro-denominated
fixed rate bond maturing in May 2027 with a coupon rate of 1.000% and the issue of a €600 million Euro-
denominated fixed rate bond maturing in May 2031 with a coupon rate of 1.625%. The net proceeds
of this issue were used to partially repay €236.6 million of the 2.375%, €800 million seven-year fixed rate
bond due in June 2020, while the remaining €563.4 million was repaid in June 2020 upon its maturity.
In November 2019, Coca-Cola HBC Finance B.V. completed the issue of a €500 million Euro-
denominated fixed rate bond maturing in November 2029 with a coupon rate of 0.625%.
In September 2022, Coca-Cola HBC Finance B.V. completed the issue of a €500 million Euro-
denominated fixed rate Green bond maturing in September 2025 with a coupon rate of 2.75%.
In February 2024, Coca-Cola HBC Finance B.V. completed the issue of a €600 million Euro-
denominated fixed rate bond maturing in February 2028 with a coupon rate of 3.375%. The net
proceeds of the new issue were used to fully repay the €600 million eight-year fixed rate bond,
which matured in November 2024.
In September 2024, Coca-Cola HBC Finance B.V. completed a partial buyback of the 1.625%, €600
million 12-year fixed rate bond due in May 2031, amounting to €23.4 million. The buyback principal
amount was cancelled in November 2024.
In November 2024, Coca-Cola HBC Finance B.V. completed the issue of a €500 million Euro-
denominated fixed rate bond maturing in November 2032 with a coupon rate of 3.125%. The net
proceeds of the new issue will be used to fully repay the €500 million three-year fixed rate bond
maturing in September 2025.
As at 31 December 2024, a total of €3.4 billion in notes issued under the EMTN programme were
outstanding (2023: €2.9 billion).
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
308
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
25. Net debt continued
Summary of notes outstanding as at 31 December
Book value
Fair value
Notes
€ million
Start date
Maturity date
Fixed
coupon
2024
€ million
2023
€ million
2024
€ million
2023
€ million
€600
10 March 2016
11 November 2024
1.875%
–
599.5
–
590.3
€700
14 May 2019
14 May 2027
1.000%
698.5
697.8
673.1
656.9
€600
14 May 2019
14 May 2031
1.625%
574.0
596.9
531.2
540.7
€500
21 November 2019
21 November 2029
0.625%
496.7
496.0
449.7
433.7
€500
23 September 2022
23 September 2025
2.750%
498.8
497.1
500.1
495.8
€600
27 February 2024
27 February 2028
3.375%
611.6
–
610.5
–
€500
20 November 2024
20 November 2032
3.125%
492.7
–
496.6
–
Total
3,372.3
2,887.3 3,261.2
2,717.4
The weighted average effective interest rate of the Euro-denominated fixed rate bonds is 2.22% and
the weighted average maturity is 4.2 years. The fair values are within Level 1 of the value hierarchy.
As at 31 December 2024, the fair value adjustment to the carrying amount of the €600.0 million bond
maturing in February 2028 attributable to fixed-to-floating interest rate swaps amounted to €14.4
million gain (2023: €nil).
None of our debt facilities are subject to any financial covenants that would impact the Group’s liquidity
or access to capital.
Total borrowings as at 31 December were held in the following currencies:
Current
Non-current
2024
€ million
2023
€ million
2024
€ million
2023
€ million
Euro
787.7
867.8
2,989.5
2,363.9
Egyptian Pound
63.5
41.0
13.2
17.5
US Dollar
15.9
17.0
39.5
47.4
Swiss Franc
5.8
4.4
18.6
17.8
Bulgarian Lev
3.2
2.6
8.0
4.3
Russian Rouble
3.2
2.9
6.4
7.4
Nigerian Naira
2.8
5.2
6.1
8.3
Polish Zloty
2.4
2.0
2.7
3.6
UK Sterling
1.5
2.8
2.0
1.7
Romanian Leu
0.9
1.0
1.6
1.8
Hungarian Forint
1.0
0.5
1.2
0.1
Belarusian Rouble
0.3
0.1
1.2
0.7
Ukrainian Hryvnia
–
0.1
0.6
0.6
Current
Non-current
2024
€ million
2023
€ million
2024
€ million
2023
€ million
Czech Koruna
0.2
0.4
0.2
0.1
Bosnian Mark
0.1
0.1
0.1
–
Other
0.2
0.2
1.0
1.2
Total borrowings
888.7
948.1
3,091.9
2,476.4
The carrying amounts of interest-bearing borrowings held at fixed and floating interest rate as at
31 December 2024 were as follows:
Fixed
interest rate
€ million
Floating
interest rate
€ million
Total
€ million
Euro
3,759.9
17.3
3,777.2
Egyptian Pound
76.7
–
76.7
US Dollar
55.4
–
55.4
Swiss Franc
24.4
–
24.4
Bulgarian Lev
11.2
–
11.2
Russian Rouble
9.6
–
9.6
Nigerian Naira
8.9
–
8.9
Polish Zloty
5.1
–
5.1
UK Sterling
2.8
0.7
3.5
Romanian Leu
2.5
–
2.5
Hungarian Forint
2.2
–
2.2
Belarusian Rouble
1.5
–
1.5
Ukrainian Hryvnia
0.6
–
0.6
Czech Koruna
0.4
–
0.4
Bosnian Mark
0.2
–
0.2
Other
1.2
–
1.2
Total interest-bearing borrowings
3,962.6
18.0
3,980.6
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
25. Net debt continued
b) Cash and cash equivalents
Cash and cash equivalents as at 31 December comprised the following:
2024
€ million
2023
€ million
Cash at bank, in transit and in hand
689.5
441.6
Short-term deposits
858.6
819.0
Total cash and cash equivalents
1,548.1
1,260.6
Cash and cash equivalents were held in the following currencies:
2024
€ million
2023
€ million
Euro
655.0
671.0
Russian Rouble
340.4
196.3
US Dollar
248.7
80.8
Nigerian Naira
54.5
92.5
Polish Zloty
42.7
13.1
UK Sterling
38.8
21.4
Egyptian Pound
37.4
35.9
Ukrainian Hryvnia
23.0
48.5
Hungarian Forint
18.0
9.6
Serbian Dinar
16.4
16.9
Belarusian Rouble
14.8
9.2
Armenian Dram
13.8
19.2
Romanian Leu
12.5
13.6
Czech Koruna
9.9
6.8
Moldovan Leu
7.3
6.3
Bosnian Mark
7.3
3.2
Swiss Franc
6.3
15.4
Other
1.3
0.9
Total cash and cash equivalents
1,548.1
1,260.6
As at 31 December 2024, time deposits of €619.0 million (2023: €54.8 million), which did not meet the
definition of cash and cash equivalents, were recorded as other financial assets.
The amount of dividends payable to the Company by its operating subsidiaries is subject to, among
other restrictions, general limitations imposed by the corporate laws and exchange control restrictions
of the respective jurisdictions where those subsidiaries are organised and operate. Currently, as a result
of sanctions and other regulations, there are certain restrictions in Russia and Ukraine that affect the
Group’s ability to repatriate profits. However, these restrictions are not expected to have a material
impact on the Group’s liquidity. Also, the currency in certain countries in which we operate (in particular
Belarus, Egypt, Nigeria, Serbia and Ukraine) can only be converted or transferred for specific purposes
established by their governments, without necessarily affecting the repatriation of profits in all cases.
These restrictions do not have a material impact on the Group’s liquidity, as the amounts of cash and
cash equivalents held in such countries are generally retained for capital expenditure, working capital
and dividend distribution purposes. Intra-group dividends paid by certain of our subsidiaries are also
subject to withholding taxes.
Cash and cash equivalents held by the Group’s operations in Russia amounted to €490.7 million equivalent
in Russian Rouble, US Dollar and Euro as at 31 December 2024 (2023: €278.7 million).
26. Equity
Accounting policy
Share capital
Coca-Cola HBC has only one class of shares, ordinary shares. When new shares are issued, they are
recorded in share capital at their par value. The excess of the issue price over the par value is recorded
in the share premium reserve. Incremental external costs directly attributable to the issue of new
shares or to the process of returning capital to shareholders are recorded in equity as a deduction,
net of tax, in the share premium reserve.
Where the Group purchases the Company’s equity instruments, for example as the result of a share
buyback programme, the consideration paid, including any directly attributable incremental costs
(net of income taxes), is deducted from equity attributable to the owners of the parent as treasury
shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently
reissued, any consideration received, net of any directly attributable incremental transaction costs
and the related income tax effects, is included in equity attributable to the owners of the parent.
Dividends
Dividends are recorded in the Group’s consolidated financial statements, against the relevant equity
component, in the period in which they are approved by the Group’s shareholders.
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
310
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
26. Equity continued
a) Share capital, share premium and Group reorganisation reserve
Number of
shares
(authorised
and issued)
Share
capital
€ million
Share
premium
€ million
Group
reorganisation
reserve
€ million
Balance as at 1 January 2023
372,086,095
2,024.3
2,837.4
(6,472.1)
Shares issued to employees exercising
stock options (refer to Note 28)
891,127
6.0
8.2
–
Dividends
–
–
(289.9)
–
Balance as at 31 December 2023
372,977,222
2,030.3
2,555.7
(6,472.1)
Shares issued to employees exercising
stock options
262,340
1.8
2.0
–
Dividends
–
–
(342.9)
–
Balance as at 31 December 2024
373,239,562
2,032.1
2,214.8
(6,472.1)
The Group reorganisation reserve relates to the impact from adjusting share capital, share premium
and treasury shares to reflect the respective statutory amounts of Coca-Cola HBC on 25 April 2013,
together with the transaction costs incurred by the latter, relating primarily to the redomiciliation of
the Group and its admission to listing in the London Stock Exchange, following successful completion
of the voluntary share exchange offer (refer to Note 1). These transactions were treated as a
reorganisation of an existing entity that has not changed the substance of the reporting entity.
In 2024, the share capital of Coca-Cola HBC increased by the issue of 262,340 (2023: 891,127) new
ordinary shares following the exercise of stock options pursuant to Coca-Cola HBC AG’s employees’
stock option plan. Total proceeds from the issuance of the shares under the stock option plan amounted
to €3.8 million (2023: €14.2 million). Additional proceeds of €2.8 million in 2024 (2023: €nil) related
to exercised stock options settled via treasury shares as described below and were reflected under
‘Other reserves’, more specifically the ‘Stock option, performance share and deferred management
incentive share reserve’ in the consolidated statement of changes in equity.
Following the above changes, on 31 December 2024, the share capital of the Group amounted
to €2,032.1 million and comprised 373,239,562 shares with a nominal value of CHF 6.70 each.
b) Dividends
On 17 May 2023, the shareholders of Coca-Cola HBC AG at the Annual General Meeting approved
a dividend distribution of €0.78 per share. The total dividend amounted to €289.9 million and was paid
on 19 June 2023. Of this, an amount of €2.7 million related to shares held by the Group.
The shareholders of Coca-Cola HBC AG approved a dividend distribution of €0.93 per share at the
Annual General Meeting held on 21 May 2024. The total dividend amounted to €342.9 million and was
paid on 24 June 2024. Of this, an amount of €3.2 million related to shares held by the Group.
The Board of Directors of Coca-Cola HBC AG has proposed a €1.03 dividend per share in respect
of 2024. If approved by the shareholders of Coca-Cola HBC AG, this dividend will be paid in 2025.
c) Treasury shares and reserves
The reserves of the Group as at 31 December were as follows:
2024
€ million
2023
€ million
Treasury shares
(298.5)
(144.1)
Exchange equalisation reserve
(1,922.1)
(1,708.9)
Other reserves
Hedging reserve, net
(7.9)
(20.7)
Tax-free reserve
0.5
163.8
Statutory reserves
30.8
27.3
Stock option, performance share and deferred management
incentive share reserve
68.0
78.2
Financial assets at fair value through other comprehensive
income reserve, net
0.6
0.8
Other
23.1
22.7
Total other reserves
115.1
272.1
Total reserves
(2,105.5)
(1,580.9)
Treasury shares
Treasury shares held by the Group represent shares acquired following approval of share buyback
programmes, forfeited shares under the equity compensation plan operated by the Group, as well
as shares representing the initial ordinary shares of Coca-Cola HBC acquired from Kar-Tess Holding.
On 20 November 2023, the Group announced the launch of a share buyback programme of up to a maximum
of 18,000,000 ordinary shares to be purchased in a manner consistent with the Company’s general authority
to repurchase shares granted at its Annual General Meeting on 17 May 2023 and any such authority granted
at its following annual general meetings. The programme commenced on 21 November 2023 and is expected
to run for a period of around two years. At its Annual General Meeting on 21 May 2024, the Company’s general
authority to repurchase shares was renewed. During 2024, the Group purchased shares under the programme
for a total consideration of €183.0 million (2023: €42.6 million), which was reflected in line ‘Acquisition of treasury
shares’ of the consolidated cash flow statement and the consolidated statement of changes in equity.
An amount of €23.4 million in 2024 (2023: €29.7 million) relates to treasury shares provided to employees
in connection with vested performance share awards and deferred management incentive share awards
under the Group’s employee incentive scheme, which was reflected as an appropriation of reserves
from ‘Treasury shares’ to ‘Other reserves’, more specifically the ‘Stock option, performance share and
deferred management incentive share reserve’ in the consolidated statement of changes in equity.
An additional amount of €5.2 million in 2024 (2023: €nil) relates to treasury shares provided to employees
exercising stock options, which was reflected in line ‘Shares issued/granted to employees exercising stock
options’ of the consolidated statement of changes in equity as a reclassification from ‘Treasury shares’
to ‘Other reserves’, more specifically the ‘Stock option, performance share and deferred management
incentive share reserve’.
As at 31 December 2024, 11,077,797 (2023: 6,068,537) treasury shares were held by the Group.
Notes to the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
311
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
26. Equity continued
Exchange equalisation reserve
The exchange equalisation reserve comprises all foreign exchange differences arising from the translation
of the financial statements of Group entities with functional currencies other than the Euro.
Other reserves
Hedging reserve
The hedging reserve reflects changes in the fair values of derivatives accounted for as cash flow
hedges, net of the deferred tax related to such balances.
Tax-free and statutory reserves
The tax-free reserve includes investment amounts exempt from tax according to incentive legislation,
other tax-free income or income taxed at source. Statutory reserves are particular to the various
countries in which the Group operates. The amount of statutory reserves of the parent entity, Coca-
Cola HBC AG, is €nil.
During 2024, an amount of €3.5 million was reclassified from retained earnings to statutory reserves
relating to the formation of additional reserves by the Group’s subsidiaries (2023: net amount of
€4.7 million).
An amount of €163.3 million was reclassified from ‘Other reserves’, more specifically the ‘Tax-
free reserve’ to ‘Retained earnings’ in the consolidated statement of changes in equity, reflecting
capitalisation of tax-free reserves.
Stock option, performance share and deferred management incentive share reserve
The stock option, performance share and deferred management incentive share reserve represents
the cumulative charge to the income statement for employee stock option, performance share
and deferred management incentive share awards less the vested performance share and deferred
management incentive share awards, as well as any proceeds from employees exercising stock options
which were settled using treasury shares.
Other
Other reserves are particular to the various countries in which the Group operates and include reserve
for shares held for the Group’s employee share purchase plan, which is an equity compensation plan
in which eligible employees may participate, as well as the Group’s share of changes in other reserves
of equity method investments.
d) Dilution of non-controlling interest
In 2024, following capitalisation of certain inter-company loans by the Group’s subsidiary in Egypt,
Coca-Cola HBC Egypt, as well as equity injection in the subsidiary covered in its entirety by the
Group, the relevant non-controlling interest was diluted by approximately 2.0%. This resulted
in a reclassification from ‘Non-controlling interests’ to ‘Retained earnings’ of €5.5 million in the
consolidated statement of changes in equity.
27. Related party transactions
a) The Coca-Cola Company
As at 31 December 2024, The Coca-Cola Company indirectly owned approximately 21% (2023: 21%) of
the issued share capital of Coca-Cola HBC. Coca-Cola HBC’s business relationship with The Coca-Cola
Company is mainly governed by the bottlers’ agreements with The Coca-Cola Company, which are
an important element of Coca-Cola HBC’s business. The Coca-Cola Company considers Coca-Cola
HBC to be a ‘key bottler’ and has entered into bottlers’ agreements with Coca-Cola HBC in respect
of the CCH territories where CCH Group produces, sells and distributes The Coca-Cola Company’s
trademarked beverages. All the bottlers’ agreements entered into by The Coca-Cola Company and
Coca-Cola HBC are Standard International Bottlers’ (SIB) agreements. The terms of the bottlers’
agreements grant Coca-Cola HBC the right to produce and the exclusive right to sell and distribute
the beverages of The Coca-Cola Company in each of the countries in which the Group operates.
Consequently, Coca-Cola HBC is obliged to purchase all concentrate for The Coca-Cola Company’s
beverages from The Coca-Cola Company, or its designee, in the ordinary course of business. All
bottlers’ agreements were renewed with effect from 1 January 2024, for an initial term of 10 years, with
the option for the CCH Group to request an extension (at the discretion of The Coca-Cola Company)
for another 10 years upon expiry of the initial term.
The Coca-Cola Company owns or has applied for the trademarks that identify its beverages in each of
the countries in which the Group operates. The Coca-Cola Company has authorised Coca-Cola HBC
and certain of its subsidiaries to use the trademark ‘Coca-Cola’ in their corporate names.
Accounting policy
Contributions from The Coca-Cola Company
The Coca-Cola Company participates at its discretion in shared marketing programmes with
the Group to promote the sale of The Coca-Cola Company products. Where such cooperative
arrangements are entered into, the Group receives contributions from The Coca-Cola Company
to offset the cost it has incurred for price support and marketing and promotional campaigns in
respect of specific customers, as well as general marketing programmes.
These contributions from The Coca-Cola Company are classified as other income and are accrued
and matched to the expenditure to which they relate, in line with the substance of the arrangement
with The Coca-Cola Company as described above. These contributions are presented as follows:
• to the extent that they relate to compensation for costs incurred by the Group for price support
and marketing and promotional campaigns in respect of specific customers, which have been
treated as a deduction from revenue from contracts with customers, they are presented as an
offset against such deductions from revenue and accordingly, included within net sales revenue
in the consolidated income statement; and
• to the extent that they relate to compensation for expenditure incurred by the Group in
connection with general marketing programmes, they are presented as an offset against
this expenditure and accordingly, included within operating expenses in the consolidated
income statement.
Notes to the consolidated financial statements continued
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Supplementary Information
27. Related party transactions continued
The below table summarises transactions with The Coca-Cola Company and its subsidiaries:
2024
€ million
2023
€ million
Purchases of concentrate, finished products and other items
1,912.5
1,861.4
Net contributions received for marketing and promotional incentives
155.8
125.1
Sales of finished goods and raw materials
5.2
4.7
Other income
6.7
4.1
Other expenses
3.4
3.6
Contributions received from The Coca-Cola Company for marketing and promotional incentives
during the year amounted to €155.8 million (2023: €125.1 million) which can be analysed as follows:
contributions made by The Coca-Cola Company to Coca-Cola HBC for price support and marketing
and promotional campaigns in respect of specific customers in 2024 totalled €85.9 million (2023: €59.3
million) and were recognised as an offset against the relevant incentives provided to those customers
within net sales revenue (refer to Note 7), while contributions made by The Coca-Cola Company to
Coca-Cola HBC for general marketing programmes in 2024 totalled €69.9 million (2023: €65.8 million)
and were recognised against the relevant cost incurred within operating expenses (refer to Note 8).
The Coca-Cola Company has also customarily made additional payments for marketing and advertising
directly to suppliers as part of the shared marketing arrangements. The proportion of direct and
indirect payments, made at The Coca-Cola Company’s discretion, will not necessarily be the same
from year to year.
As at 31 December 2024, the Group had a total amount due from The Coca-Cola Company of €30.5
million (2023: €42.8 million), and a total amount due to The Coca-Cola Company of €274.3 million (2023:
€273.4 million).
b) Frigoglass S.A. (‘Frigoglass’), Kar-Tess Holding and AG Leventis (Nigeria) Ltd
As at 31 December 2024, Truad Verwaltungs AG indirectly owned approximately 99% (2023: 99%)
of AG Leventis (Nigeria) Ltd and indirectly controlled Kar-Tess Holding, which held approximately 23%
(2023: 23%) of Coca-Cola HBC’s total issued capital.
As at 1 January 2023, Truad Verwaltungs AG also indirectly owned approximately 48% of Frigoglass.
In April 2023, Frigoglass restructured its debt, which resulted in changes to its ownership structure.
The restructured Frigoglass Group no longer meets the definition of related party as per IAS 24 ‘Related
party disclosures’ for Coca-Cola HBC AG.
During the four months ended 28 April 2023, the Group purchased coolers and other equipment,
as well as raw and other materials of €24.4 million, and incurred maintenance, rent and other expenses
of €10.0 million from Frigoglass and its subsidiaries.
During 2024, the Group incurred other expenses of €6.0 million (2023: €11.0 million) from AG Leventis
(Nigeria) Ltd. As at 31 December 2024, the Group owed €1.3 million (2023: €1.1 million) and had a lease
liability of €0.6 million (2023: €1.2 million) to AG Leventis (Nigeria) Ltd.
c) Other related parties
The below table summarises transactions with other related parties:
2024
€ million
2023
€ million
Purchases
45.2
47.3
Other expenses
19.8
15.5
During 2024, the Group incurred subsequent expenditure for fixed assets of €1.9 million (2023: €3.2
million) and purchased coolers and other equipment as well as inventories of €43.3 million (2023: €44.1
million) from other related parties. Furthermore, during 2024, the Group incurred other expenses of
€19.8 million (2023: €15.5 million) mainly related to maintenance services for cold drink equipment and
installations of coolers, fountains, vending and merchandising equipment from other related parties.
As at 31 December 2024, the Group had a total amount due to other related parties of €7.2 million
(2023: €9.1 million) and was owed €15.5 million including convertible loan receivable of €12.3 million
(2023: €6.7 million, including convertible loan receivable of €4.3 million) from other related parties.
During 2024, the Group received dividends of €2.2 million from non-integral associates (2023: €7.0
million), which were included in line ‘Receipts from non-integral equity method investments’ of the
consolidated cash flow statement.
Capital commitments to other related parties amounted to €2.5 million as at 31 December 2024
(2023: €3.8 million).
d) Joint ventures
The below table summarises transactions with joint ventures:
2024
€ million
2023
€ million
Purchases of finished goods and other inventories
32.6
26.0
Sales of finished goods and raw materials
8.9
7.8
Other income
10.1
10.4
Other expenses
8.4
8.3
As at 31 December 2024, the Group owed €13.8 million including loans payable of €2.7 million (2023:
€8.6 million including loans payable of €2.7 million) to, and was owed €8.5 million including loans and
dividends receivable of €3.5 million and €nil respectively (2023: €12.3 million including loans and
dividends receivable of €4.3 million and €2.6 million respectively) from joint ventures.
During 2024, the Group received dividends of €11.7 million from integral joint ventures (2023: €6.7
million), which were included in line ‘Receipts from integral equity method investments’ of the
consolidated cash flow statement.
e) Directors and senior management
There have been no transactions between Coca-Cola HBC and the Directors and senior management
except for remuneration (refer to Note 8).
Notes to the consolidated financial statements continued
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Corporate Governance
Strategic Report
Supplementary Information
28. Share-based payments
Accounting policy
Stock option, performance share award and deferred management incentive share plan
Coca-Cola HBC provides equity-settled share-based payments to its senior managers in the form
of an employee stock option, performance share award and deferred management incentive plan
(the ‘Plan’).
Stock options under the Plan are measured at fair value at the date of grant. Fair value reflects
the parameters of the compensation plan, the risk-free interest rate, the expected volatility, the
dividend yield and the early exercise experience under the Plan. Expected volatility is determined by
calculating the historical volatility of Coca-Cola HBC’s share price over previous years. The fair value
determined at the grant date is expensed on a straight-line basis over the vesting period.
The Plan offers a specified number of performance share awards and deferred management
incentive plan shares (the ‘deferred MIP shares’) which vest three years after the grant. The fair value
is determined at the grant date and reflects the parameters of the compensation plan, the dividend
yield and the closing share price on the date of grant. The fair value determined at the grant date is
expensed on a straight-line basis over the vesting period. At the end of each reporting period, the
Group revises its estimates of the number of shares that are expected to vest based on non-market
conditions and recognises the impact of the revision to original estimates, if any, in the income
statement with a corresponding adjustment to equity.
When the terms of an equity-settled award are modified, the minimum expense recognised is
the grant date fair value of the unmodified award, provided the original vesting terms of the award
are met. An additional expense, measured as at the date of modification, is recognised for any
modification that increases the total fair value of the share-based payment transaction, or is
otherwise beneficial to the employee.
Employee Share Purchase Plan
The Group operates an employee share purchase plan (the ‘ESPP’), an equity compensation
plan in which eligible employees can participate. The Group makes contributions to the plan for
participating employees and recognises expenses over the vesting period of the contributions.
The charge included in employee costs regarding share-based payments for the years ended
31 December is analysed as follows:
2024
€ million
2023
€ million
Performance share awards and deferred MIP shares
16.0
20.6
Employee Share Purchase Plan
7.7
6.7
Total share-based payments charge
23.7
27.3
Terms and conditions
Stock option, performance share award and deferred management incentive share plan
The Group has not issued any new stock options since 2014. Based on Plan rules, senior managers
were granted awards of stock options, based on performance, potentiality and level of responsibility.
Options were granted at an exercise price equal to the closing price of the Company’s shares trading on
the London Stock Exchange on the day of the grant and vested in one-third increments each year for
three years. Options can be exercised for up to 10 years from the date of award. When the options are
exercised and shares are issued, the proceeds received by the Group, net of any transaction costs, are
credited to share capital (at the nominal value) and share premium.
Since 2015, performance shares are the primary long-term award. Senior managers are granted
performance share awards, which have a three-year vesting period and are linked to Group-specific
key performance indicators. The closing price of the Company’s shares trading on the London Stock
Exchange on the day of the grant is used to determine the number of performance share awards
granted. In 2018, the Group modified the performance share plan, in order for eligible employees
to receive upon vesting, additionally to the specific number of shares, the value of dividends
corresponding to the years from grant till vest date, subject to the approval of the Remuneration
Committee. Furthermore, 50% of the Chief Executive Officer’s annual bonus awarded under the terms
of the management incentive plan is deferred into shares (the ‘deferred MIP shares’) which vest over a
three-year period, subject to service conditions. No dividend-equivalent shares corresponding to the
years from grant till vest date are provided, in connection with the deferred MIP shares granted.
Notes to the consolidated financial statements continued
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Corporate Governance
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Supplementary Information
28. Share-based payments continued
Employee Share Purchase Plan
The Employee Share Purchase Plan is administered by a Plan Administrator. Under the terms of this
plan, employees have the opportunity to invest 1% to 15% of their salary in ordinary Coca-Cola HBC
shares by contributing to the plan through a payroll deduction. Employee deductions are used monthly
to purchase ordinary Coca-Cola HBC shares in the open market (London Stock Exchange).
Coca-Cola HBC will match employee contributions up to a maximum of 3% of the employee’s salary.
Employer matching cash contributions vest one year after the grant, at which time they are used to
purchase matching shares on the open market that are immediately vested. Dividends received in
respect of shares held under this plan are used to purchase additional shares at the time of dividend
distribution. Shares are held under the Plan Administrator. For employees resident in Greece, Coca-
Cola HBC matches the employees’ contributions with an annual employer contribution of up to 5%
of the employees’ salaries which vests annually in December of each year.
Stock option activity
The outstanding stock options are fully vested and are exercisable until 2025.
A summary of stock option activity in 2024 under all grants is as follows:
Number
of stock
options
2024
Weighted1
average
exercise price
2024 (EUR)
Weighted
average
exercise price
2024 (GBP)
Outstanding as at 1 January
806,603
16.49
14.31
Exercised
(428,718)
15.99
13.26
Outstanding as at 31 December
377,885
18.70
15.50
Exercisable as at 31 December
377,885
18.70
15.50
A summary of stock option activity in 2023 under all grants is as follows:
Number
of stock
options
2023
Weighted1
average
exercise price
2023 (EUR)
Weighted
average
exercise price
2023 (GBP)
Outstanding as at 1 January
1,697,730
16.02
14.15
Exercised
(891,127)
16.15
14.01
Outstanding as at 31 December
806,603
16.49
14.31
Exercisable as at 31 December
806,603
16.49
14.31
1.
For convenience purposes, the prices are translated at the closing exchange rate.
Total proceeds from the exercise of options under the stock option plan in 2024 amounted to €6.6
million (2023: €14.2 million).
The weighted average remaining contractual life of stock options outstanding as at 31 December 2024
was 0.9 years (2023: 1.5 years).
Performance shares and deferred MIP shares activity
A summary of performance shares and deferred MIP shares activity is as follows:
Number of
shares
2024
Number of
shares
2023
Outstanding as at 1 January
2,956,548
2,976,201
Granted2
931,353
1,146,585
Vested
(773,603)
(947,825)
Forfeited/cancelled
(173,805)
(218,413)
Outstanding as at 31 December
2,940,493
2,956,548
2.
Includes dividend equivalent shares.
The weighted average remaining contractual life of performance shares and deferred MIP shares
outstanding as at 31 December 2024 was 1.1 years (2023: 1.3 years).
The weighted average fair value for the 2024 performance share award and deferred MIP share plan was
£24.71 per share (2023: £21.21). Relevant inputs into the valuation were as follows:
2024
2023
Weighted average share price
£24.75
£21.25
Dividend yield3
nil
nil
Weighted average vesting period
3.0 years
3.0 years
3.
Dividend yield in connection with the valuation of deferred MIP shares granted during 2024 was 3.3% (2023: 3.2%).
Notes to the consolidated financial statements continued
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Supplementary Information
29. Contingencies
In relation to the Greek Competition Authority’s decision of 25 January 2002, one of Coca-Cola
Hellenic Bottling Company S.A.’s competitors had filed a lawsuit against Coca-Cola Hellenic Bottling
Company S.A. claiming damages in an amount of €7.7 million. The court of first instance heard the
case on 21 January 2009 and subsequently rejected the lawsuit. The plaintiff appealed against the
judgement and on 9 December 2013, the Athens Court of Appeals rejected the plaintiff’s appeal.
On 19 April 2014, the same plaintiff filed a new lawsuit against Coca-Cola Hellenic Bottling Company
S.A. (following the spin-off, Coca-Cola HBC Greece S.A.I.C.) claiming payment of €7.5 million as
compensation for losses and moral damages for alleged anti-competitive commercial practices of
Coca-Cola Hellenic Bottling Company S.A. between 1994 and 2013. On 21 December 2018, the plaintiff
served their withdrawal from the lawsuit. However, on 20 June 2019, the same plaintiff filed a new
lawsuit against Coca-Cola HBC Greece S.A.I.C. claiming payment of €10.1 million as compensation
for losses and moral damages again for alleged anti-competitive commercial practices of Coca-Cola
Hellenic Bottling Company S.A. for the same period between 1994 and 2013. On 16 July 2021, the
Athens Multimember Court of First Instance issued its judgement number 1929/2021 (hereinafter the
‘Judgement’), which adjudicated that Coca-Cola HBC Greece S.A.I.C. was obliged to pay to the plaintiff
an amount of circa €0.9 million plus interest as of 31 December 2003. Both Coca-Cola HBC Greece
S.A.I.C. and the plaintiff appealed against the Judgement to the court of appeals. Both appeals were
heard on 19 January 2023. Decision no. 2312/2024 was issued by the Court of Appeal which (a) rejected
the appeal of the plaintiff, (b) accepted the appeal of Coca-Cola HBC Greece S.A.I.C., (c) annulled the
Judgement and (d) rejected the plaintiff’s lawsuit, dated 20 June 2019. On 30 September 2024, the
plaintiff filed an appeal in cassation, before the Supreme Court, against this decision of the Court of
Appeal. No hearing date has been set yet. Management believes that any liability to the Group that may
arise as a result of these pending legal proceedings will not have a material adverse effect on the results
of operations, cash flows, or the financial position of the Group taken as a whole.
With respect to the investigation of the Greek Competition Commission initiated on 6 September
2016, regarding Coca-Cola HBC Greece S.A.I.C.’s operations in certain commercial practices in the
non-alcoholic beverages market, the Rapporteur of the Greek Competition Commission appointed
for this case issued her Statement of Objections on 5 July 2021, alleging that Coca‑Cola HBC Greece
S.A.I.C. undertook a series of anti-competitive practices in the market of instant consumption for
cola and non-cola carbonated soft drinks, thereby excluding competitors and limiting their growth
potential. Coca‑Cola HBC Greece S.A.I.C. has vigorously defended its commercial practices, in
rebuttal of the allegations set out in the Statement of Objections. The hearing of the case, before
the plenary session of the Greek Competition Commission, was concluded on 29 November 2021 and
the supplementary briefs of the parties were submitted on 16 December 2021. On 3 November 2022,
the Hellenic Competition Commission notified Coca‑Cola HBC Greece S.A.I.C. of its ruling on the case,
according to which Coca‑Cola HBC Greece S.A.I.C. allegedly abused its dominant position in the Greek
immediate consumption market segment for cola and non‑cola carbonated soft drinks. The Hellenic
Competition Commission ruling imposed on Coca‑Cola HBC Greece S.A.I.C. a fine of €10.3 million,
as well as a behavioural remedy in relation to beverage coolers valid until end of 2024. Coca‑Cola HBC
Greece S.A.I.C. paid the fine in May 2023. Coca‑Cola HBC Greece S.A.I.C. strongly disagrees with this
ruling and has challenged it before the competent Court of Appeal. The hearing of the appeal before
the Administrative Court of Appeal, was originally set for 26 September 2024, and following postponement,
was heard on 12 December 2024. The decision by the Administrative Court of Appeal is pending.
Notes to the consolidated financial statements continued
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29. Contingencies continued
In 1992, our subsidiary NBC acquired a manufacturing facility in Nigeria from Vacunak, a Nigerian
company. In 1994, Vacunak filed a lawsuit against NBC, alleging that a representative of NBC had
orally agreed to rescind the sale agreement and instead enter into a lease agreement with Vacunak.
As part of its lawsuit, Vacunak sought compensation for rent and loss of business opportunities. NBC
discontinued all use of the facility in 1995. On 19 August 2013, NBC received the written judgement
of the Nigerian court of first instance issued on 28 June 2012 providing for damages of approximately
€5.1 million. The Appeal Court dismissed NBC’s appeal and Vacunak’s cross‑appeal, and affirmed the
judgement of the first instance court in 2023. Both NBC and Vacunak have filed an appeal against the
judgement before the Supreme Court. Based on advice from NBC’s outside legal counsel, we believe
that it is unlikely that NBC will suffer material financial losses from this case. We have consequently not
provided for any losses in relation to this case.
The tax filings of the Group and its subsidiaries are routinely subjected to audit by tax authorities
in most of the jurisdictions in which the Group conducts business. These audits may result in
assessments of additional taxes. The Group provides for additional tax in relation to the outcome
of such tax assessments, to the extent that a liability is probable and estimable.
The Group is also involved in various other legal proceedings. Management believes that any liability to
the Group that may arise as a result of these pending legal proceedings will not have a material adverse
effect on the results of operations, cash flows, or the financial position of the Group taken as a whole.
Considering the above, there have been no significant adverse changes in contingencies since 31
December 2023 (as described in the 2023 Integrated Annual Report available on Coca-Cola HBC’s
website: www.coca-colahellenic.com).
30. Commitments
Capital commitments
As at 31 December 2024, the Group had capital commitments for property, plant and equipment
amounting to €294.2 million (2023: €203.4 million). Of this, €0.7 million are related to the Group’s share
of the commitments arising from joint ventures (2023: €1.5 million).
Capital commitments for 2024 include total future minimum lease payments under leases not yet commenced
to which the Group was committed as at 31 December 2024 of €21.6 million (2023: €10.0 million).
31. Post balance sheet events
On 28 February 2025, the acquisition of BDS Vending Solutions Ltd was completed for a consideration
of €27.9 million, of which €26.4 million were paid on the same day. The consideration adjustment (refer
to Note 23) is under discussion with the sellers according to the terms of the share purchase agreement
and is expected to be settled within the second quarter of 2025. Due to the timing of the acquisition
completion relatively to the publication of the Integrated Annual Report, details on the fair value of the
net assets acquired and goodwill are not available at this stage.
On 12 March 2025, the Remuneration Committee granted performance share awards of €27.7 million
equivalent, under the performance share award plan, which have a three-year vesting period. The
number of shares granted is calculated by dividing the value of the grant with the closing share price
as of the date of the approval of the grant.
Notes to the consolidated financial statements continued
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Supplementary Information
Report on the audit of the consolidated financial statements
Report of the statutory auditor
to the General Meeting of
Coca-Cola HBC AG
Steinhausen (Zug)
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of Coca-Cola HBC AG and its subsidiaries
(the Group), which comprise the consolidated income statement and consolidated statement of
comprehensive income for the year ended 31 December 2024, the consolidated balance sheet as at
31 December 2024, the consolidated statement of changes in equity, and the consolidated cash flow
statement for the year then ended, and notes to the consolidated financial statements, including
material accounting policy information.
In our opinion, the consolidated financial statements (pages 259 to 317) give a true and fair view of the
consolidated financial position of the Group as at 31 December 2024 and its consolidated financial
performance and of its consolidated cash flows for the year then ended in accordance with IFRS
Accounting Standards as adopted by the European Union (EU) and comply with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISA) and
Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are
further described in the ‘Auditor’s responsibilities for the audit of the consolidated financial statements’
section of our report. We are independent of the Group in accordance with the provisions of Swiss
law and the requirements of the Swiss audit profession, as well as the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International
Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Our audit approach
Overview
Materiality
Overall group materiality: EUR 56 million
Audit scope
We conducted full scope audit procedures on the financial information of 17
components in 15 countries spread across all of the Group’s reportable segments.
Our audit scope addressed 81% of consolidated net sales revenue,
Key audit matters
As key audit matters the following areas of focus have been identified:
• Goodwill and indefinite-lived intangible assets impairment assessment
• Uncertain tax positions
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide
reasonable assurance that the consolidated financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
in the table below. These, together with qualitative considerations, helped us to determine the scope
of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of
misstatements, both individually and in aggregate, on the consolidated financial statements as a whole.
Overall group materiality
EUR 56 million
Benchmark applied
Profit before tax
Rationale for
the materiality
benchmark applied
We consider that the income statement remains the principal measure
used by the shareholders in assessing the underlying performance of the
Group. Therefore, an approach to materiality based on the profit before
tax has been applied, which is a generally accepted auditing benchmark.
We agreed with the Audit and Risk Committee that we would report to them misstatements above EUR
2.8 million identified during our audit as well as any misstatements below that amount which, in our view,
warranted reporting for qualitative reasons.
Audit scope
We tailored the scope of our audit to ensure that we performed sufficient work to be able to provide
an opinion on the consolidated financial statements as a whole, taking into account the operating
structure of the Group, the accounting processes and controls, and the industry in which the Group
operates. There were three different levels of work in our approach; audit work performed on the
Group’s trading subsidiary undertakings, at shared service centres, and at the group level.
The Group operates through its trading subsidiary undertakings in Nigeria, Egypt and 27 countries in
Europe, as set out in Note 1 ‘General information’ and Note 6 ‘Segmental analysis’ of the consolidated
financial statements. The Group also operates centralised treasury functions in the Netherlands and
in Greece and a centralised procurement function for key raw materials in the Netherlands.
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Supplementary Information
Based on their significance to the financial statements and in light of the key audit matters as noted
above, we identified 17 components in 15 countries spread across all of the Group’s reportable
segments (including the significant, due to risk or size, subsidiary undertakings in Egypt, Italy, Nigeria,
Poland, Romania, Russia and Switzerland). For these components we obtained full scope audit reports
over their financial information. In addition, we have performed Group level analysis on the remaining
components, where appropriate, to determine whether further risks of material misstatement exist
in those components. We consider the scope of our audit, as communicated to the Audit and Risk
Committee, to be an appropriate basis for our audit opinion.
As the Swiss statutory auditor, we issued group audit instructions to PwC Greece, who has the
responsibility as the group engagement team for the Company’s reporting requirements for the
London and Athens Stock Exchanges. These instructions covered the scope of our group audit to
enable us to fulfil our responsibilities under Swiss law. As the Swiss statutory auditor, we had ongoing
interactions with the group engagement team in Greece to be continuously updated and to monitor
their progress and the results of their procedures. We reviewed the instructions which PwC Greece
issued to component audit teams including centralised audit procedures performed at the shared
services centres in Bulgaria and shared audit comfort with component teams as it relates to IT general
controls and cybersecurity risks. We reviewed working papers and undertook additional interactions as
considered necessary depending on the significance of the accounting and audit matters. The Group
consolidation, consolidated financial statement disclosures and a number of other areas that involve
significant judgement and estimates, including goodwill and intangible assets and the Group’s overall
going concern assessment, were audited by the Swiss statutory auditor and the group engagement
team of PwC Greece.
As the Swiss statutory auditor, we held frequent virtual and on-site meetings to oversee the work
performed by the group engagement and component audit teams. We attended such meetings for Italy,
Russia (including Multon), Nigeria, Romania, Switzerland, Austria, Bulgaria, Greece, Hungary, Northern
Ireland, Poland, Serbia, the Netherlands, and Egypt. As the Swiss statutory auditor, we also held physical
meetings and discussions with the management of the trading subsidiaries in Egypt, Italy and Switzerland
to discuss business performance and outlook, matters relating to regulation and taxation, as well as any
specific accounting and auditing matters identified, including fraud and internal controls.
Based on the above, the subsidiaries which were in scope for the purposes of the group audit
accounted for 81% of consolidated net sales revenue, 76% of consolidated profit before tax and 87%
of consolidated total assets of the Group. This, together with the additional procedures performed at
Group level, provided us with sufficient appropriate evidence for our audit opinion on the consolidated
financial statements.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Report on the audit of the consolidated financial statements continued
Goodwill and indefinite-lived intangible assets impairment assessment
Key audit matter
How our audit addressed the key audit matter
Refer to Note 13 ‘Intangible assets’ of the
consolidated financial statements.
Goodwill and indefinite-lived intangible assets as at
31 December 2024 amount to EUR 1,828.8 million
and EUR 669.0 million, respectively.
The above amounts have been allocated to
individual cash-generating units (‘CGUs’), which in
accordance with International Accounting Standard
36 ‘Impairment of Assets’ (‘IAS 36’) require the
performance of an impairment assessment at
least annually or whenever there is an indication of
impairment. The impairment assessment involves
the determination of the recoverable amount of the
CGU, being the higher of the value-in-use and the
fair value less costs of disposal.
We consider this area as a key audit matter due
to the magnitude of goodwill and indefinite-
lived intangible assets balances and because
the determination of whether elements of
goodwill and of indefinite-lived intangible assets
are impaired involves a significant amount of
judgment by management when developing
the estimates of the future results of the CGUs.
These estimates include assumptions surrounding
revenue growth rates, costs, foreign exchange rates
and discount rates.
In 2024, an impairment loss of EUR 0.4 million was
recorded in connection with a juice trademark in the
Emerging markets.
No impairment was identified for the remaining
indefinite-lived intangible assets or goodwill.
We evaluated the appropriateness of
management’s identification of the Group’s CGUs,
the process by which management prepared the
CGUs’ value-in-use calculations and the design and
operating effectiveness of related control activities.
We tested the accuracy of the CGUs’ carrying
values and value-in-use calculations and compared
the future cash flow projections included therein
to the financial budgets, approved by the directors,
covering a one-year period, and management’s
projections for the subsequent four years.
In addition, we assessed management’s past
forecasting accuracy by comparing key elements
of the prior year budgets and projections with
actual results.
We challenged management’s cash flow projections
in relation to the assumptions applied to the
value-in-use calculations, taking into account the
ongoing challenging macroeconomic environment
in several countries.
With the support of our valuation specialists, we
assessed the appropriateness of the methodology
and valuation techniques used, as well as certain
assumptions including discount, annual revenue
growth and perpetuity revenue growth rates.
We performed independent sensitivity analyses on
the key drivers of the value-in-use calculations for
the CGUs with significant balances of goodwill and
indefinite-lived intangible assets.
Based on our work, we concluded that the results
reached by management in relation to the
impairment testing of goodwill and indefinite-lived
intangible assets were supported by assumptions
within reasonable ranges.
We evaluated the related disclosures provided in the
consolidated financial statements in Note 13 ‘Intangible
assets’ and concluded that these are appropriate.
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Uncertain tax positions
Key audit matter
How our audit addressed the key audit matter
Refer to Note 10 ‘Taxation’ and Note
29 ‘Contingencies’ of the consolidated
financial statements.
The Group operates in numerous tax jurisdictions
and is subject to periodic challenges, in the normal
course of business, by local tax authorities on a
range of matters including corporate tax, transfer
pricing arrangements and indirect taxes. As at 31
December 2024, the Group has provisions for
uncertain tax positions of EUR 72.3 million that are
classified in current tax liabilities, current tax assets
and deferred taxes.
The impact of changes in local tax regulations and
ongoing inspections by local tax authorities, could
materially impact the amounts recorded in the
consolidated financial statements.
Where the amount of tax payable is uncertain,
the Group establishes provisions based on
management’s estimates with respect to the
likelihood of potential material tax exposures
crystallising and the probable amount of the
resultant liability.
We consider this area as a key audit matter given
the level of judgement and subjectivity involved in
estimating tax provisions, including a high degree
of estimation uncertainty relative to the numerous
and complex tax laws in the various jurisdictions
in which the Group operates, the frequency of
tax audits, and the considerable time to conclude
investigations and negotiations with local tax
authorities as a result of such audits that could
materially impact the amounts recorded in the
financial statements.
In order to understand and evaluate management’s
judgement, we considered the status of current tax
authority inspections and inquiries, the outcome of
previous tax authority inspections, the judgemental
positions taken in tax returns and current year
estimates as well as recent developments in
the tax jurisdictions in which the Group operates.
We evaluated the Group’s monitoring process for
current tax authority inspections and challenged
management’s estimates, particularly in respect
of cases where there had been significant
developments with tax authorities.
Our component audit teams, through the use of
tax specialists with local knowledge and relevant
expertise, assessed the tax positions taken by the
subsidiary undertakings in scope, in the context
of applying local tax laws and evaluating the local
tax assessments.
We read recent rulings and correspondence with tax
authorities, as well as any external advice provided
by the Group’s tax experts and legal advisors.
Additionally, with our group engagement team
tax specialists we further evaluated management’s
estimation of tax exposures and contingencies
in order to assess the adequacy of the Group’s
tax provisions and satisfy ourselves that the tax
provisions have been appropriately recorded or
adjusted to reflect the latest developments.
We held meetings with Group and local management
to discuss the individual tax positions of the in-scope
subsidiary undertakings and assessed with the
support of our group engagement tax team the
Group’s overall tax exposure.
From the evidence obtained, we consider the
provisions in relation to uncertain tax positions
as at 31 December 2024 to be reasonable.
We also evaluated the related disclosures provided
in the consolidated financial statements in Note
10 ‘Taxation’ and Note 29 ‘Contingencies’ and
concluded that these are appropriate.
Other information
The Board of Directors is responsible for the other information. The other information comprises the
information included in the annual report, but does not include the financial statements, the consolidated
financial statements, the statutory remuneration report and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors’ responsibilities for the consolidated financial statements
The Board of Directors is responsible for the preparation of consolidated financial statements, that give
a true and fair view in accordance with IFRS Standards as adopted by the European Union (EU) and the
provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary
to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Board of Directors either intends
to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Report on the audit of the consolidated financial statements continued
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with Swiss law, ISA and SA-CH will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located on EXPERTsuisse’s website: http://www.expertsuisse.ch/en/audit-report. This description
forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an
internal control system that has been designed, pursuant to the instructions of the Board of Directors,
for the preparation of the consolidated financial statements.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Patrick Balkanyi
Licensed audit expert
Auditor in charge
Zurich, 14 March 2025
Tobias Handschin
Licensed audit expert
Report on the audit of the consolidated financial statements continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Report on the audit of the financial statements
Coca-Cola HBC AG
Steinhausen (Zug)
Report of the statutory auditor
to the General Meeting on the
financial statements 2024
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Coca-Cola HBC AG (the Company), which comprise
the balance sheet as at 31 December 2024, and the income statement and the cash flow statement
for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, the financial statements (pages 324 to 332) comply with Swiss law and the Company’s
articles of incorporation.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH).
Our responsibilities under those provisions and standards are further described in the ‘Auditor’s
responsibilities for the audit of the financial statements’ section of our report. We are independent of
the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit
profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Our audit approach
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to
provide reasonable assurance that the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall materiality for the financial statements as a whole as set out in the table below.
These, together with qualitative considerations, helped us to determine the scope of our audit and
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements,
both individually and in aggregate, on the financial statements as a whole.
Overall materiality
CHF 37’611’000
Benchmark applied
Net assets
Rationale for
the materiality
benchmark applied
We chose net assets as the benchmark because, in our view, it is the
benchmark which reflects the actual substance of the entity. This is a
generally accepted benchmark for ultimate holding companies.
We agreed with the Audit and Risk Committee that we would report to them misstatements above
CHF 2’632’000 identified during our audit as well as any misstatements below that amount which, in our
view, warranted reporting for qualitative reasons.
Audit scope
We designed our audit by determining materiality and assessing the risks of material misstatement
in the financial statements. In particular, we considered where subjective judgements were made;
for example, in respect of significant accounting estimates that involved making assumptions and
considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk
of management override of internal controls, including among other matters consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the financial statements as a whole, taking into account the structure of the Company,
the accounting processes and controls, and the industry in which the Company operates.
Key audit matters
We have determined that there are no key audit matters to communicate in our report.
Other information
The Board of Directors is responsible for the other information. The other information comprises
the information included in the annual report, but does not include the financial statements,
the consolidated financial statements, the statutory remuneration report and our auditor’s
reports thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Board of Directors’ responsibilities for the financial statements
The Board of Directors is responsible for the preparation of financial statements in accordance with
the provisions of Swiss law and the Company’s articles of incorporation, and for such internal control
as the Board of Directors determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Board of Directors either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on
EXPERTsuisse’s website: http://www.expertsuisse.ch/en/audit-report. This description forms an
integral part of our report.
Report on the audit of the financial statements continued
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an
internal control system that has been designed, pursuant to the instructions of the Board of Directors,
for the preparation of the financial statements.
Based on our audit according to article 728a para. 1 item 2 CO, we confirm that the Board of Directors’
proposal complies with Swiss law and the Company’s articles of incorporation. We recommend that the
financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Patrick Balkanyi
Licensed audit expert
Auditor in charge
Zurich, 14 March 2025
Apostolos Dimopoulos
Licensed audit expert
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Swiss statutory reporting
Coca-Cola HBC AG, Steinhausen (Zug)
Balance sheet
Coca-Cola HBC AG, Steinhausen (Zug)
Income statement
As at 31 December
CHF thousands
Note
2024
2023
Assets
Cash and cash equivalents
28,927
16,252
Short-term receivables from direct and indirect participations
2.1
13,200
23,984
Receivables from related parties
2.2
1,487
552
Short-term receivables from third parties
2,015
2,490
Total current assets
45,629
43,278
Investments in subsidiaries
2.3
5,828,361
6,159,092
Property, plant and equipment (incl. right-of-use assets)
8,921
8,966
Total non-current assets
5,837,282
6,168,058
Total assets
5,882,911
6,211,336
Liabilities and shareholders’ equity
Other payables
1,589
2,296
Short-term liabilities to direct and indirect participations
2.4
2,863
33,888
Short-term liabilities to related parties
–
58
Short-term lease liabilities
876
913
Accrued expenses
2.4
79,308
72,274
Total short-term liabilities
84,636
109,429
Long-term interest-bearing liabilities to indirect participations
2.5
310,799
91,591
Long-term lease liabilities
2,554
3,188
Provisions
2.6
16,635
15,950
Total long-term liabilities
329,988
110,729
Share capital
2.7
2,500,705
2,498,947
Legal capital reserves
Reserves from capital contributions
3,103,985
3,444,860
Reserves for treasury shares
2.8
85,298
85,298
Retained earnings
Results carried forward
39,440
(39,441)
(Loss)/profit for the year
(38,979)
78,881
Treasury shares
2.8
(222,162)
(77,367)
Total shareholders’ equity
2.9
5,468,287
5,991,178
Total liabilities and shareholders’ equity
5,882,911
6,211,336
Year ended 31 December
CHF thousands
Note
2024
2023
Dividend income
330,731
382,132
Other operating income
2.10
55,829
46,473
Total operating income
386,560
428,605
Employee costs
2.11
(59,971)
(50,123)
Other operating expenses
2.12
(26,979)
(30,889)
Write down of investments
2.3
(330,731)
(285,839)
Depreciation on property, plant and equipment
(incl. right-of-use assets)
(1,247)
(991)
Total operating expenses
(418,928)
(367,842)
Operating (loss)/profit
(32,368)
60,763
Finance costs
(6,448)
(4,834)
Foreign exchange gains
2.13
–
23,141
(Loss)/profit before tax
(38,816)
79,070
Direct taxes
(163)
(189)
(Loss)/profit for the year
(38,979)
78,881
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Swiss statutory reporting continued
Year ended 31 December
CHF thousands
Note
2024
2023
(Loss)/profit for the year
(38,979)
78,881
Depreciation of property, plant and equipment including right-
of-use assets
1,247
991
Finance costs
6,448
4,834
Foreign exchange gains
–
(23,141)
Write down of investments
2.3
330,731
285,839
Net change related to employee Performance Share Plan
40,098
35,618
339,545
383,022
Decrease/(increase) in receivables
10,324
(10,928)
Decrease in investments in subsidiaries
2.3
(330,731)
(285,839)
Decrease in short-term liabilities (excl. financial liabilities)
(2,157)
(702)
(Decrease)/increase in accrued expenses
(1,036)
10,262
Increase/(decrease) in provisions
80
(262)
Proceeds from dividends received from subsidiaries
2.3
330,731
285,839
Tax paid
(185)
(184)
Net cash inflow from operating activities
346,571
381,208
Payments for purchases of property, plant and equipment
(1,250)
(700)
Cash outflow from investing activities
(1,250)
(700)
Year ended 31 December
CHF thousands
Note
2024
2023
Principal repayments of lease obligations
(623)
(699)
Proceeds from short-term and long-term financial liabilities
196,960
63,726
Repayments of short-term and long-term financial liabilities
(9,503)
(111,652)
Acquisition of treasury shares
2.8
(177,052)
(40,882)
Dividends paid to owners of the Company
(342,792)
(284,282)
Proceeds from shares issued to employees exercising
stock options
3,675
13,995
Interest paid
(4,328)
(3,863)
Net cash outflow from financing activities
(333,663)
(363,657)
Net increase in cash and cash equivalents
11,658
16,851
Movement in cash and cash equivalents
Cash and cash equivalents as at 1 January
16,252
261
Net increase in cash and cash equivalents
11,658
16,851
Effect of changes in exchange rates
1,017
(860)
Cash and cash equivalents as at 31 December
28,927
16,252
Coca-Cola HBC AG, Steinhausen (Zug)
Cash flow statement
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Swiss statutory reporting continued
General information
Coca-Cola HBC AG (the ‘Company’) was incorporated on 19 September 2012 by Kar-Tess Holding. On
11 October 2012, the Company announced a voluntary share exchange offer to acquire all outstanding
ordinary registered shares and all American depositary shares of Coca-Cola Hellenic Bottling Company
S.A., Maroussi (GR) (CCHBC SA). As a result of the successful completion of this offer, on 25 April 2013, the
Company acquired 96.85% of the issued CCHBC SA shares, including shares represented by American
depositary shares, and became the new parent company of the Group (the Company and its direct and
indirect subsidiaries). On 17 June 2013, the Company completed its statutory buyout of the remaining
shares of CCHBC SA that it did not acquire upon completion of its voluntary share exchange offer.
1. Accounting principles
Accounting principles applied in the preparation of the financial statements
These financial statements have been prepared in accordance with the provisions of commercial
accounting as set out in the Swiss Code of Obligations (Art. 957 to 963b CO). The Company is preparing
its consolidated financial statements in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union (EU) in accordance with Art. 963b CO due to a requirement
from the Athens Exchange, its primary listing in the EU. In accordance with Art. 961 cipher 2. CO, the
Company is presenting a cash flow statement. Significant accounting and valuation principles are
described below:
Dividend income
Dividend income is recognised when the right to receive payment is established.
Other operating income
The Company provides management services to its principal subsidiaries and acts as guarantor to its
principal subsidiary, Coca-Cola HBC Finance B.V. The income from these services is recognised in the
accounting period in which the service is provided.
Exchange rate differences
The accounting records of the Company are retained in Euro and translated to Swiss francs (CHF) for
presentation purposes. Except for investments in subsidiaries, property, plant and equipment, long-
term liabilities and equity, which are translated at historical rates, all assets and liabilities denominated
in foreign currencies are translated into CHF using the closing exchange rate as at 31 December 2024.
Income and expenses are translated into CHF at the average exchange rate of the reporting year
except for dividend income and related write down of investments (see Note 2.3), which are valued
at the transaction date exchange rate. Net unrealised exchange losses are recorded in the income
statement, while net unrealised gains are deferred within accrued expenses.
Balance sheet as at
Income statement for the year ended
Exchange rates
31 December 2024
31 December 2023
31 December 2024
31 December 2023
EUR
0.94
0.94
0.95
0.97
USD
0.90
0.84
GBP
1.13
1.08
Leasing disclosure
Management has applied an economic-view approach to the disclosure of lease contracts considering
the underlying usage rights. Right-of-use assets are presented within property, plant and equipment
depreciated over their useful life. The short- and long-term lease liabilities are adjusted for interest and
lease payments.
Investments in subsidiaries
Investments in subsidiaries are valued at historical cost and evaluated for impairment if identified
triggering events occur.
Property, plant and equipment
Right-of-use assets are included within property, plant and equipment.
Depreciation is calculated on the basis of the following useful lives and in accordance with the
following methods:
Property, plant and equipment
Useful life
Method
Leasehold improvement (building)
20 years
5% linear
Leasehold improvement (office infrastructure)
10 years
10% linear
Building infrastructure
12 years
8.33% linear
Right-of-use buildings and company cars
Shorter of useful
life and lease term
Linear
Furniture and fixtures, office equipment and other
tangible fixed assets
8 years
12.5% linear
Telephony infrastructure
7 years
14.29% linear
Communication equipment, computers and PCs
4 years
25% linear
Tablets
3 years
33.33% linear
Treasury shares
Treasury shares are recognised at acquisition cost and deducted from shareholders’ equity at the time
of acquisition. If treasury shares are sold, the gain or loss arising is recognised in the income statement
as finance income or finance cost, as appropriate.
Notes to the financial statements of Coca-Cola HBC AG, Steinhausen (Zug) for the year ended 31 December 2024
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Swiss statutory reporting continued
2. Information relating to the balance sheet and income statement
2.1 Short-term receivables from direct and indirect participations
The short-term receivables from direct and indirect participations do not bear interest.
As at 31 December
CHF thousands
Name of participation
2024
2023
CCB Management Services GmbH, Vienna
12,214
22,959
Coca-Cola HBC Finance B.V., Amsterdam
744
636
Coca-Cola HBC Holdings B.V., Amsterdam
99
300
Coca-Cola Hellenic Business Service Organisation, Sofia
59
89
Coca-Cola HBC Hrvatska d.o.o., Zagreb
28
–
Coca-Cola HBC Česko a Slovensko, s.r.o., Prague
28
–
Coca-Cola HBC Polska sp. z o.o., Warsaw
28
–
Short-term receivables from direct and indirect participations
13,200
23,984
2.2 Receivables from related parties
Receivables from related parties consist of receivables from international assignees mainly coming
from advances paid to tax authorities.
2.3 Investments in subsidiaries
As at 31 December
CHF thousands
Direct subsidiary
Share of capital
Share of votes
2024
2023
Coca-Cola HBC Holdings B.V., Amsterdam1
100%
100%
6,159,092
6,444,931
Write down of investment
(330,731)
(285,839)
Investments in subsidiaries
100%
100%
5,828,361
6,159,092
1.
Coca-Cola HBC Holdings B.V., Amsterdam was incorporated on 26 June 2013.
In 2015, the Company adopted a practice of reducing the value of its investment in Coca-Cola HBC
Holdings B.V. by an amount equal to the dividend received from that subsidiary. The amount of the write
down in 2024 is equal to the dividend received in June 2024 from Coca-Cola HBC Holdings B.V. of CHF
330,731 thousand (June 2023: CHF 285,839 thousand). The extra dividend of CHF 96,293 thousand
received on 15 December 2023 was excluded from above-mentioned practice.
The principal direct and indirect participations of the Company are disclosed in Note 15 to the
consolidated financial statements.
2.4 Short-term liabilities to direct and indirect participations and accrued expenses
The short-term liabilities to the direct and indirect participations do not bear interest except for the
liability to Coca-Cola HBC Finance B.V., which is interest bearing.
As at 31 December
CHF thousands
Name of participation
2024
2023
CCB Management Services GmbH, Vienna
821
1,749
Coca-Cola Hellenic Business Service Organisation, Sofia
103
73
Coca-Cola HBC Switzerland Ltd, Opfikon
26
72
Coca-Cola HBC Finance B.V., Amsterdam1
1,871
31,771
Coca-Cola HBC Services MEPE, Athens
13
8
Coca-Cola HBC Hrvatska d.o.o, Zagreb
–
80
Coca-Cola HBC Romania Ltd, Voluntari
–
3
Coca-Cola HBC Polska sp. z.o.o., Warsaw
–
5
Coca-Cola HBC Cyprus Ltd., Nicosia
–
106
Coca-Cola HBC-Srbija d.o.o., Belgrade
–
21
Finlandia Vodka Oy, Helsinki
29
–
Short-term liabilities to direct and indirect participations
2,863
33,888
1
Short-term loans maturing on 8 November 2024 of CHF 9,503 thousand (nominal EUR 10,000 thousand) were repaid and the remaining
CHF 22,248 (nominal EUR 23,400 thousand) were rolled over into long-term loans.
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
2. Information relating to the balance sheet and income statement continued
2.4 Short-term liabilities to direct and indirect participations and accrued expenses continued
As at 31 December
CHF thousands
2024
2023
Direct taxes
182
194
Management Incentive Plan (MIP) and Performance Share Plan (PSP)
for own employees
25,559
19,164
Employee-related costs (social security and insurance, payroll taxes)
5,516
6,509
Provision for acquiring treasury shares to satisfy subsidiaries’
Performance Share Plan rights
11,818
8,960
Other accrued expenses
10,346
17,451
Net unrealised gains from foreign currency translation
25,887
19,996
Accrued expenses
79,308
72,274
Following the publication of circular letter 37a by the Swiss Federal Tax Administration in May 2018, the
Company recognised a provision of CHF 21,232 thousand (2023: CHF 16,464 thousand), which relates
to the Company’s employee Performance Share Plan, of which CHF 13,050 thousand (2023: CHF 9,018
thousand) is short term and is disclosed in line ‘Management Incentive Plan (MIP) and Performance
Share Plan (PSP) for own employees’; while CHF 8,182 thousand (2023: CHF 7,446 thousand) is long
term and disclosed in Note 2.6, ‘Provisions’. The provision for acquiring treasury shares to satisfy
subsidiaries’ Performance Share Plan rights amounts to CHF 18,843 thousand (2023: CHF 16,172
thousand), of which CHF 11,818 thousand (2023: CHF 8,960 thousand) is short term and disclosed
in accrued expenses, while CHF 7,025 thousand (2023: CHF 7,212 thousand) is long term and disclosed
in Note 2.6, ‘Provisions’.
2.5 Long-term interest-bearing liabilities
As at 31 December
CHF thousands
2024
2023
Coca-Cola HBC Finance BV, Amsterdam
310,799
91,591
Long-term interest-bearing liabilities
310,799
91,591
Long-term interest-bearing liabilities comprise loans from Coca-Cola HBC Finance B.V. received in
2020, 2021, 2022, 2023 and 2024 for CHF 310,799 thousand (2022: CHF 91,591 thousand) maturing
on 21 November 2029.
2.6 Provisions
As at 31 December
CHF thousands
2024
2023
Long-term incentive plan
814
734
Provision for acquiring treasury shares to satisfy subsidiaries’
Performance Share Plan rights (refer to Note 2.4)
7,025
7,212
Performance and management incentive share plan – Coca-Cola HBC
AG employees (refer to Note 2.4)
8,182
7,446
Provision for social security costs of Performance Share Plan
614
558
Provisions
16,635
15,950
2.7 Share capital
Number of shares
Nominal value
Total
CHF
CHF thousands
Share capital as at 1 January 2023
372,086,095
6.70
2,492,977
Shares issued to employees exercising stock options
891,127
6.70
5,970
Share capital as at 31 December 2023
372,977,222
6.70
2,498,947
Number of shares
Nominal value
Total
CHF
CHF thousands
Share capital as at 1 January 2024
372,977,222
6.70
2,498,947
Shares issued to employees exercising stock options
262,340
6.70
1,758
Share capital as at 31 December 2024
373,239,562
6.70
2,500,705
Swiss statutory reporting continued
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
2.8 Treasury shares
The number of treasury shares held by Coca-Cola HBC AG and its subsidiaries qualifying under article
659b of the Swiss Code of Obligations and their movements were as follows:
Treasury shares held by subsidiaries
Number
of shares
Acquisition cost
per share
Total
CHF
CHF thousands
Total treasury shares held by subsidiaries as at 31 December 2023
3,430,135
24.8673
(85,298)
Total treasury shares held by subsidiaries as at 31 December
2024
3,430,135
24.8673
(85,298)
Treasury shares held by the Company
Number
of shares
Acquisition cost
per share
Total
CHF
CHF thousands
Treasury shares held by the Company as at 1 January 2023
1,956,582
35.7836
(70,014)
Vested PSP and MIP shares1
(956,478)
35.0543
33,529
Acquisition of shares4
1,638,298
24.9541
(40,882)
Treasury shares held by the Company as at 31 December 2023
2,638,402
29.3235
(77,367)
Whereof
For cancellation
–
–
–
For other purposes (booked against capital contribution reserves)
1,638,298
24.9541
(40,882)
Treasury shares held by the Company as at 1 January 2024
2,638,402
29.3235
(77,367)
Vested PSP and MIP shares2
(753,836)
35.0543
26,425
Transferred for executed stock options3
(166,378)
35.0543
5,832
Acquisition of shares4
5,929,474
29.8596
(177,052)
Treasury shares held by the Company as at 31 December 2024
7,647,662
29.0496
(222,162)
Whereof
For cancellation
–
–
–
For other purposes (booked against capital contribution reserves)
7,567,772
28.7977
(217,934)
1.
In January 2023, following the vesting of the 2020 MIP, 16,007 treasury shares were transferred to relevant participant. In March 2023,
following the vesting of the 2020 PSP, 940,471 treasury shares were transferred to relevant participants.
2.
In January 2024, following the vesting of the 2021 MIP plan, 7,354 treasury shares were transferred to relevant participant. In March 2024,
following the vesting of the 2021 PSP, 746,482 treasury shares were transferred to relevant participants.
3.
Up to the end of June 2024 Stock Option Plan (SOP) participants have been granted with new shares issued out of the conditional capital
of the Company. Starting from July 2024, the Company changed practice and granted shares for exercised stock options from treasury
shares, similar to the practice for Performance Share Plan participants. In this regard, 166,378 treasury shares with a total purchase value of
CHF 5,832 thousand were transferred in the period July to December 2024 to SOP participants.
4.
On 20 November 2023, the Group announced the launch of a share buyback programme of up to a maximum of 18,000,000 ordinary
shares to be purchased in a manner consistent with the Company’s general authority to repurchase shares granted at its Annual General
Meeting on 17 May 2023 and any such authority granted at its subsequent annual general meetings. The programme commenced on
21 November 2023 and is expected to run for a period of around two years. At its Annual General Meeting on 21 May 2024, the Company’s
general authority to repurchase shares was renewed. In 2024, the Company purchased 5,929,474 (2023: 1,638,298) of its ordinary shares
of CHF 6.70 each for a consideration of CHF 177,052 thousand (2023: CHF 40,882 thousand), reflecting a weighted average price of GBP
2,620.53 pence (2023: GBP 2,242.09 pence) per share (minimum price of GBP 2,453.73 pence (2023: GBP 2,183.45 pence) and maximum
price of GBP 2,800.00 pence (2023: GBP 2,310.06 pence). All 5,929,474 shares (2023: 1,638,298 shares) have been acquired for other
purposes, none for cancellation. Capital contribution reserves of CHF 217,934 thousand as at 31 December 2024 (2023: CHF 40,882
thousand) are blocked for distribution until the treasury shares are sold or transferred to PSP/MIP members.
2.9 Shareholders’ equity
The balance of shareholders’ equity and relevant movements for the years ended 31 December 2024
and 2023 (in CHF thousands) were as follows:
Legal capital reserves
Share capital
Reserves
from capital
contributions
Reserves for
treasury
shares1
(Accumulated
losses)/
retained
earnings
Treasury
shares
Total
Balance as at 1 January 2023
2,492,977 3,721,117
85,298
(39,441)
(70,014) 6,189,937
Shares issued to employees
exercising stock options
5,970
8,025
–
–
–
13,995
Dividends2
–
(284,282)
–
–
–
(284,282)
Vested PSP and MIP shares
–
–
–
–
33,529
33,529
Acquisition of treasury shares3
–
–
–
–
(40,882)
(40,882)
Profit for the year
–
–
–
78,881
–
78,881
Balance as at 31 December 2023 2,498,947 3,444,860
85,298
39,440
(77,367) 5,991,178
Shares issued to employees
exercising stock options
1,758
1,917
–
–
–
3,675
Dividends2
–
(342,792)
–
–
–
(342,792)
Vested PSP and MIP shares
–
–
–
–
26,425
26,425
Transferred SOP shares
–
–
–
–
5,832
5,832
Acquisition of treasury shares3
–
–
–
–
(177,052)
(177,052)
Loss for the year
–
–
–
(38,979)
–
(38,979)
Balance as at 31 December 2024 2,500,705 3,103,985
85,298
461
(222,162) 5,468,287
1.
Represents the book value of treasury shares held by subsidiaries.
2.
On 21 May 2024, the shareholders of the Company at the Annual General Meeting approved the distribution of a gross dividend of
€0.93 (2023: €0.78) on each ordinary registered share. The dividend was paid on 24 June 2024 and amounted to CHF 342,792 thousand
(2023: CHF 284,282 thousand, paid on 19 June 2023).
3.
5,929,474 shares (2023: 1,638,298 shares) at an average price of 2,620.53 pence (2023: 2,242.09 pence) have been acquired for other purposes.
Swiss statutory reporting continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
2. Information relating to the balance sheet and income statement continued
2.10 Other operating income
2024
2023
CHF thousands
Management fees
51,293
42,228
Guarantee fee
4,536
4,245
Total other operating income
55,829
46,473
Management fees relate to service income earned from services provided to the Company’s direct
and indirect participations, whereof CHF 7,516 thousand (2023: CHF 752 thousand) is true-up from the
prior year. Guarantee fee is the income the Company receives for the services provided as guarantor
to Coca-Cola HBC Finance B.V. and Nigerian Bottling Company Ltd.
2.11 Employee costs
2024
2023
CHF thousands
Wages and salaries
22,618
23,561
Social security costs
4,084
3,261
Pensions and employee benefits
33,269
23,301
Total employee costs
59,971
50,123
Pension and employee benefits include Performance Share Plan expenses for CCHBC AG employees
in the amount of CHF 17,151 thousand for 2024 (2023: CHF 17,089 thousand). Refer to Note 2.4 for
more information.
2.12 Other operating expenses
Other operating expenses amounting to CHF 26,979 thousand for 2024 (2023: CHF 30,889 thousand)
mainly include CHF 16,258 thousand (2023: CHF 14,455 thousand) for management fees to CCB
Management Services GmbH, whereof CHF 937 thousand (2023: CHF 1,258 thousand) is true-up
from the prior year.
2.13 Foreign exchange differences
Foreign exchange gains in the prior year of CHF 23,141 thousand, related primarily to remeasurement
of short-term loans to indirect participations maturing on 8 November 2024 at the exchange rate of
31 December 2023 (amounting to CHF 17,673 thousand) and loans to indirect participations fully repaid
during the prior year (amounting to CHF 5,434 thousand).
Swiss statutory reporting continued
3. Other Information
3.1 Net release of hidden reserves
No hidden reserves were released for the years ended 31 December 2024 or 31 December 2023.
3.2 Number of employees
In 2024 and 2023, on an annual average basis, the number of full-time equivalent employees did
not exceed 50.
3.3 Contingent liabilities
Euro medium-term note programmes
In June 2013, the Group established a new €3.0 billion Euro medium-term note programme (the ‘EMTN
programme’). The EMTN programme was increased to €5.0 billion in April 2019 and was last updated
in November 2024. Notes are issued under the EMTN programme through the Company’s indirect
subsidiary Coca-Cola HBC Finance B.V., a private limited liability company established under the laws
of the Netherlands, and are fully, unconditionally and irrevocably guaranteed by the Company.
In May 2019, Coca-Cola HBC Finance B.V. issued €700 million, 1%, Euro-denominated notes due in
May 2027 and also issued €600 million, 1.625%, Euro-denominated notes due in May 2031, which are
guaranteed by the Company. The €600 million notes’ size has been reduced to €576.6 million as a result
of an open market purchase announced on 8 November 2024 by the Company.
In November 2019, Coca-Cola HBC Finance B.V. completed the issue of a €500 million, Euro-
denominated fixed rate bond maturing in November 2029, with a coupon rate of 0.625%, which is
guaranteed by the Company.
In September 2022, Coca-Cola HBC Finance B.V. issued €500 million, 2.75%, Green Euro-denominated
notes due in September 2025, which are guaranteed by the Company.
In February 2024, Coca-Cola HBC Finance B.V. issued €600 million, 3.375%, Euro-denominated notes
due in February 2028 and, in November 2024, also issued €500 million, 3.125%, Euro-denominated
notes due in November 2032, which are guaranteed by the Company.
As at 31 December 2024, a total of approximately €3.4 billion (2023: €2.9 billion) in notes issued under
the EMTN programme were outstanding.
Committed credit facilities
In April 2019, the Group updated its then-existing €500 million syndicated revolving credit facility (RCF),
which was set to expire in June 2021. The updated RCF was increased to €800 million and was extended
to April 2024 with the option to be further extended for up to two more years until April 2026. Coca-
Cola HBC Finance B.V. exercised its extension option and the RCF has been extended to April 2026.
The RCF can be used for general corporate purposes and carries a floating interest rate over EURIBOR.
No amounts have been drawn under the RCF since its inception. The borrower under the RCF is the
Company’s indirect subsidiary Coca-Cola HBC Finance B.V. and any amounts drawn under the RCF
are fully, unconditionally and irrevocably guaranteed by the Company.
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
3. Other information continued
3.3 Contingent liabilities continued
Commercial paper programme
In October 2013, the Group established a new €1.0 billion Euro-denominated commercial paper
programme (the ‘CP Programme’). The CP Programme was last updated in May 2023. Notes are
issued under the CP Programme by Coca-Cola HBC Finance B.V. and guaranteed by the Company.
The outstanding amount under the CP Programme was €215 million as at 31 December 2024
(2023: €211 million).
Nigerian Bottling Company Ltd
In December 2019, the Group established an amortising loan facility of US Dollar 85 million with
maturity in December 2027. The purpose of the facility is to finance the purchase of production
equipment by Nigerian Bottling Company Ltd., the Company’s indirect subsidiary in Nigeria. Over
the course of 2020 and 2021, the facility has been drawn down for approximately US Dollar 78 million.
The obligations under this facility are guaranteed by the Company. The outstanding amount under
the loan facility was €36 million as at 31 December 2024 (2023: €45 million).
Loan from the European Bank of Reconstruction and Development (EBRD)
In July 2024, the Group established a US Dollar 130 million loan with EBRD to finance its capital
expenditure and working capital requirements in Egypt. The loan is guaranteed by the Company.
Until 31 December 2024, the loan had been drawn down for €5 million.
Credit support provider
On 18 July 2013, the Company signed as credit support provider to J.P. Morgan Securities plc, Credit
Suisse International, Credit Suisse AG, ING Bank N.V., Société Générale, Merrill Lynch International and
The Royal Bank of Scotland plc in favour of Coca-Cola HBC Finance B.V. for the obligations as defined
in the ISDA Master Agreements1.
On 24 July 2013, the Company signed as credit support provider to the Governor and Company
of the Bank of Ireland, in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the
ISDA Master Agreement1.
On 8 August 2013, the Company signed as credit support provider to Citibank N.A. in favour
of CCHBC Bulgaria AD for the obligations as defined in the ISDA Master Agreement1.
On 8 August 2013, the Company signed as credit support provider to Citibank N.A. in favour
of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA Master Agreement1.
On 24 June 2014, the Company signed as credit support provider to Intesa Sanpaolo S.pA. in favour
of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA Master Agreement1.
On 5 October 2015, the Company signed as credit support provider to Macquarie Bank
International Limited in favour of Coca-Cola HBC Finance B.V. for the obligations as defined
in the ISDA Master Agreement1.
On 22 June 2016, the Company signed as credit support provider to UniCredit Bank AG in favour
of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA Master Agreement1.
Swiss statutory reporting continued
On 31 August 2016, the Company signed as credit support provider to BNP Paribas in favour
of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA Master Agreement1.
On 1 November 2017, the Company signed as credit support provider to Goldman Sachs Global
International in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA
Master Agreement1.
On 22 December 2017, the Company signed as credit support provider to Citigroup Global
Markets Limited in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the
ISDA Master Agreement1.
On 14 February 2018, the Company signed as credit support provider to Morgan Stanley & Co.
International PLC in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA
Master Agreement1.
On 25 March 2019, the Company signed as credit support provider to Citigroup Global Markets
Europe AG in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA
Master Agreement1.
On 1 July 2019, the Company signed as credit support provider to Credit Suisse Securities, Sociedad
de Valores, S.A. in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA
Master Agreement1.
On 10 July 2019, the Company signed as credit support provider to Macquarie Bank Limited
(London Branch) in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the
ISDA Master Agreement1.
On 12 November 2019, the Company signed as credit support provider to UBS AG in favour
of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA Master Agreement1.
On 2 November 2020, the Company signed as credit support provider to J.P. Morgan AG in favour
of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA Master Agreement1.
On 13 November 2020, the Company signed as credit support provider to Goldman Sachs Bank
Europe SE in favour of Coca-Cola HBC Finance B.V. for the obligations as defined in the ISDA
Master Agreement1.
On 5 May 2022 and then on 26 September 2022, the Company signed as credit support provider
to Citibank Nigeria Limited in favour of Nigerian Bottling Company Ltd for the obligations as defined
in the Treasury Master Agreement2.
On 14 February 2024, the Company signed as credit support provider to Standard Chartered Bank in
favour of Nigerian Bottling Company Ltd for the obligations as defined in the ISDA Master Agreement1.
1.
The ISDA (International Swap Dealers Association) Master Agreement is a standardised form issued by the International Swap Dealers
Association Inc. to be used for credit support transactions.
2.
The Treasury Master Agreement is an agreement between Nigerian Bottling Company and Citibank Nigeria describing general terms and
conditions regulating their relationship in regard to foreign currency transactions.
Coca-Cola HBC Integrated Annual Report 2024
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
3. Other information continued
3.4 Significant shareholders
As at 31 December 2024 and 2023, there were two shareholders exceeding the threshold of 5% voting
rights in the Company’s share capital.
Date
Number of
shares
Percentage of
issued share
capital1
Percentage of
issued share
capital2
Total Kar-Tess Holding
31.12.2023
85,355,019
22.9%
23.3%
Total Kar-Tess Holding
31.12.2024
85,355,019
22.9%
23.3%
Total shareholdings related
to The Coca-Cola Company
31.12.2023
78,252,731
21.0%
21.3%
Total shareholdings related
to The Coca-Cola Company
31.12.2024
78,252,731
21.0%
21.6%
1.
Basis: total issued share capital including treasury shares. Share basis 373,239,562 as at 31 December 2024 (2023:372,977,222).
2.
Basis: total issued share capital excluding treasury shares. Share basis 362,161,765 as at 31 December 2024 (2023: 366,908,685).
3.5 Allocated amount of options and shares
Stock option plan (SOP)
Number of options
Already vested, not exercised
Vesting at the end of 2024
Options
CHF thousand
Options CHF thousands
Options CHF thousands
Board of Directors and
Executive Leadership Team
–
–
–
–
–
–
Other SOP participants
–
–
–
–
–
–
Total
–
–
–
–
–
–
Management Incentive Plan (MIP) and Performance Share Plan (PSP)
Granted in 2024
Unvested and for PSP subject
to performance conditions
Vested
Shares
CHF thousand
Shares CHF thousands
Shares CHF thousands
Board of Directors and
Executive Leadership Team
419,544
13,000
1,342,019
41,585
347,752
10,776
Other MIP and PSP
participants
44,273
1,372
123,309
3,821
19,760
612
Total
463,817
14,372
1,465,328
45,406
367,512
11,388
Swiss statutory reporting continued
3.6 Fees paid to the auditor
The audit and other fees paid to the auditor are disclosed in Note 8 to the consolidated
financial statements.
3.7 Conditional capital
On 25 April 2013, the shareholders’ meeting agreed to the creation of conditional capital in the
maximum amount of CHF 245,601 thousand, through issuance of a maximum of 36,657 thousand fully
paid-in registered shares with a par value of CHF 6.70 each upon exercise of options issued to members
of the Board of Directors, members of the management, employees or advisers of the Company, its
subsidiaries and other affiliated companies. The share capital of CHF 2,500,705 thousand as disclosed
in the balance sheet differs from the share capital in the commercial register of CHF 2,498,947
thousand as at 31 December 2024 due to the exercise of management options in the course of
financial year 2024.
Conditional capital
Number of
shares
Book value
per share CHF
Total CHF
thousands
Agreed conditional capital as per shareholders’ meeting on
25 April 2013
36,656,843
6.70
245,601
Shares issued to employees exercising stock options until
31 December 2016
(3,149,493)
6.70
(21,102)
Shares issued to employees exercising stock options in 2017
(4,122,401)
6.70
(27,620)
Shares issued to employees exercising stock options in 2018
(1,064,190)
6.70
(7,130)
Shares issued to employees exercising stock options in 2019
(1,352,731)
6.70
(9,063)
Shares issued to employees exercising stock options in 2020
(582,440)
6.70
(3,902)
Shares issued to employees exercising stock options in 2021
(1,282,821)
6.70
(8,595)
Shares issued to employees exercising stock options in 2022
(290,677)
6.70
(1,948)
Shares issued to employees exercising stock options in 2023
(891,127)
6.70
(5,970)
Remaining conditional capital as at 31 December 2023
23,920,963
6.70
160,271
Shares issued to employees exercising stock options in 2024
(262,340)
6.70
(1,758)
Remaining conditional capital as at 31 December 2024
23,658,623
6.70
158,513
4. Subsequent events
The subsequent events in relation to financial year ended 31 December 2024 are disclosed in Note 31 to
the consolidated financial statements.
Coca-Cola HBC Integrated Annual Report 2024
332
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
1. Total available reserves
Available earnings and reserves
CHF thousands
Balance brought forward from previous years
39,440
Net loss for the year
(38,979)
Total accumulated profit to be carried forward
461
Reserves from capital contributions before distribution
3,103,985
Total available reserves
3,104,446
2. Proposed declaration of dividend from reserves
The Board of Directors proposes to declare a gross dividend of €1.03 on each ordinary registered share
with a par value of CHF 6.70 from the general capital contribution reserve. Own shares held directly by
the Company are not entitled to dividends. Payment of the dividend shall be made at such time and with
such record date as shall be determined by the Annual General Meeting and the Board of Directors.
3. Proposed appropriation of reserves/declaration of dividend
Dividend of €1.03 at current exchange rate
As of 31 December 2024
CHF thousands
Reserves from capital contributions before distribution
3,103,985
Proposed dividend of €1.031
(361,497)
Reserves from capital contributions after distribution
2,742,488
1.
Illustrative at an exchange rate of CHF 0.96 per Euro. Assumes that the shares entitled to a dividend amount to 365,591,900.
Proposed appropriation of available earnings and reserves/declaration of dividend
Swiss statutory reporting continued
Coca-Cola HBC Integrated Annual Report 2024
333
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Report of the statutory auditor to the General Meeting on the
statutory remuneration report 2024
Coca-Cola HBC AG
Steinhausen (Zug)
Report of the statutory auditor
to the General Meeting on the
statutory remuneration report 2024
Report of the statutory auditor to the General Meeting of Coca-Cola HBC AG,
Steinhausen (Zug)
Opinion
We have audited the statutory remuneration report of Coca-Cola HBC AG (the Company) for the
year ended 31 December 2024. The audit was limited to the information pursuant to article 734a-734f
of the Swiss Code of Obligations (CO) on pages 335 to 344 of the statutory remuneration report.
In our opinion, the information pursuant to article 734a-734f CO in the statutory remuneration report
(pages 335 to 344) complies with Swiss law and the Company’s articles of incorporation.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH).
Our responsibilities under those provisions and standards are further described in the ‘Auditor’s
responsibilities for the audit of the statutory remuneration report’ section of our report. We are
independent of the Company in accordance with the provisions of Swiss law and the requirements
of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Other information
The Board of Directors is responsible for the other information. The other information comprises
the information included in the annual report, but does not include the information in the statutory
remuneration report, the consolidated financial statements, the financial statements and our auditor’s
reports thereon.
Our opinion on the statutory remuneration report does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the statutory remuneration report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
audited financial information in the statutory remuneration report or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors’ responsibilities for the statutory remuneration report
The Board of Directors is responsible for the preparation of a statutory remuneration report in
accordance with the provisions of Swiss law and the Company’s articles of incorporation, and for
such internal control as the Board of Directors determines is necessary to enable the preparation
of a statutory remuneration report that is free from material misstatement, whether due to fraud
or error. It is also charged with structuring the remuneration principles and specifying the individual
remuneration components.
Auditor’s responsibilities for the audit of the statutory remuneration report
Our objectives are to obtain reasonable assurance about whether the information pursuant to
article 734a-734f CO is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this statutory remuneration report.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement in the statutory remuneration report, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made.
We communicate with the Board of Directors or its relevant committee regarding, among other
matters, the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have
complied with relevant ethical requirements regarding independence, and communicate with them
all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, actions taken to eliminate threats or safeguards applied.
PricewaterhouseCoopers AG
Patrick Balkanyi
Licensed audit expert
Auditor in charge
Zurich, 14 March 2025
Tobias Handschin
Licensed audit expert
Coca-Cola HBC Integrated Annual Report 2024
334
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Statutory Remuneration Report
Additional disclosures regarding the Statutory Remuneration Report
The section below is in line with the Swiss Code of Obligations, which requires disclosure of the
elements of compensation paid to the Company’s Board of Directors and the Executive Leadership
Team (formerly known as the Operating Committee). The amounts relate to the calendar years of
2024 and 2023. In the information presented below, the exchange rate used for conversion of 2024
remuneration data from Euro to CHF is 1/0.9530 and the exchange rate used for conversion of 2023
remuneration data from Euro to CHF is 1/0.9729.
As the Company is headquartered in Switzerland, it is required for statutory purposes to present
compensation data for two consecutive years, 2024 and 2023. The applicable methodology used
to calculate the value of stock option and performance shares follows Swiss Standards. In 2024 and
2023, the fair value of performance shares from the 2024 and 2023 grants is calculated based on
the performance share awards that are expected to vest. Below is the relevant information for Swiss
statutory purposes.
The Statutory Remuneration Report should be read in conjunction with the Directors’ remuneration
report presented in the Integrated Annual Report as the qualitative aspects of remuneration policy
are described therein.
Remuneration for acting members of governing bodies
The Company’s Directors believe that the level of remuneration offered to Directors and the members
of the Executive Leadership Team should reflect their experience and responsibility as determined by,
among other factors, a comparison with similar multinational companies and should be sufficient to
attract and retain high-calibre Directors who will lead the Group successfully. In line with the Group’s
commitment to maximise shareholder value, its policy is to link a significant proportion of remuneration
for its Executive Leadership Team to the performance of the business through short- and long-term
incentives. Therefore, the Executive Leadership Team members’ financial interests are closely aligned
with those of the Company’s shareholders through the equity-related long-term compensation plan.
The total remuneration of the Directors and members of the Executive Leadership Team of the Company,
including performance share grants, during 2024 amounted to CHF 30.2 million (2023: CHF 28.6 million).
Out of this, the amount relating to the expected value of performance share awards granted in relation
to 2024 was CHF 6.6 million (2023: CHF 7.4 million). Pension and post-employment benefits for Directors
and the Executive Leadership Team of the Company during 2024 amounted to CHF 1.1 million
(2023: CHF 0.9 million).
Coca-Cola HBC Integrated Annual Report 2024
335
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Remuneration of the Board of Directors
2024 CHF
Fees
Cash and
non-cash
benefits1
Cash
performance
incentives
Pension and
post-employment
benefits
Total fair value
of stock options at
the date granted
Total
compensation
Anastassis G. David, Non-Executive Chairman
142,950
–
–
–
–
142,950
Zoran Bogdanovic, Chief Executive Officer, Executive Director2
–
–
–
–
–
–
Anna Diamantopoulou, Independent non-Executive Director, member of the Nomination Committee,
Social Responsibility Committee & Remuneration Committee3
68,867
–
–
–
–
68,867
Charlotte J. Boyle, Independent non-Executive Director, Chair of the Remuneration Committee,
and member of the Nomination Committee
99,827
–
–
–
–
99,827
Olusola (Sola) David-Borha, Independent non-Executive Director, member of the Audit and Risk Committee4
36,434
–
–
–
–
36,434
William W. (Bill) Douglas III, Independent non-Executive Director, Chair of the Audit and Risk Committee
108,642
–
–
–
–
108,642
Reto Francioni, Senior Independent non-Executive Director, Chair of the Nomination Committee,
and member of the Remuneration Committee5
113,884
–
–
–
–
113,884
Anastasios I. Leventis, Non-Executive Director, Chair of the Social Responsibility Committee
90,535
–
–
–
–
90,535
Christo Leventis, Non-Executive Director
78,146
–
–
–
–
78,146
Alexandra Papalexopoulou, Independent non-Executive Director, member of the Audit and Risk Committee6
36,434
–
–
–
–
36,434
Henrique Braun, Non-Executive Director7
78,146
–
–
–
–
78,146
George Pavlos Leventis, Non-Executive Director
78,146
–
–
–
–
78,146
Evguenia Stoitchkova, Non-Executive Director, member of the Social Responsibility Committee
84,341
–
–
–
–
84,341
Zulikat Wuraola Abiola, Independent non-Executive Director, member of Audit and Risk Committee8
57,217
–
–
–
–
57,217
Glykeria Tsernou, Independent non-Executive Director, member of Audit and Risk Committee9
57,217
–
–
–
–
57,217
Elizabeth Bastoni, Independent non-Executive Director, member of the Nomination Committee, Remuneration
Committee and Social Responsibility Committee10
26,078
–
–
–
–
26,078
Total Board of Directors
1,156,864
–
–
–
–
1,156,864
1.
Cash and non-cash benefits consist of cost-of-living allowance, housing support, Employee Stock Purchase Plan, private medical insurance relocation expenses, home trip allowance, lump sum expenses and similar allowances.
2.
Zoran Bogdanovic’s compensation was based on his role as CEO, member of the Executive Leadership Team, and his employment agreement. Zoran Bogdanovic was not entitled and did not receive additional compensation as a Director.
3.
Anna Diamantopoulou retired from the Board of Directors on 16 September 2024. The Group has applied a pro-rated period fee of CHF 68,867, on top of her fees, the Group paid CHF 3,904 in social security contributions as required by Swiss legislation.
4.
Olusola (Sola) David-Borha retired from the Board of Directors on 21 May 2024. The Group has applied a pro-rated period fee of CHF 36,434, on top of her fees, the Group paid CHF 2,919 in social security contributions as required by Swiss legislation.
5.
For Reto Francioni, on top of his fees, the Group paid CHF 6,718 in social security contributions as required by Swiss legislation.
6.
Alexandra Papalexopoulou retired from the Board of Directors on 21 May 2024. The Group has applied a pro-rated period fee of CHF 36,434.
7.
For Henrique Braun, on top of his fees, the Group paid CHF 6,260 in social security contributions as required by Swiss legislation.
8.
Zulikat Wuraola Abiola was appointed to the Board of Directors on 21 May 2024. The Group has applied a pro-rated period fee of CHF 57,217, on top of her fees, the Group paid CHF 4,583 in social security contributions as required by Swiss legislation.
9.
Glykeria Tsernou was appointed to the Board of Directors on 21 May 2024. The Group has applied a pro-rated period fee of CHF 57,217.
10. Elizabeth Bastoni was appointed to the Board of Directors on 16 September 2024. The Group has applied a pro-rated period fee of CHF 26,078, on top of her fees, the Group paid CHF 2,089 in social security contributions as required by Swiss legislation.
Non-Executive Directors do not participate in any of the Group’s incentive plans, nor do they receive any retirement benefits.
Statutory Remuneration Report continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
2023 CHF
Fees
Cash and
non-cash
benefits1
Cash
performance
incentives
Pension and
post-employment
benefits
Total fair value
of stock options at
the date granted
Total
compensation
Anastassis G. David, Non-Executive Chairman
145,935
–
–
–
–
145, 935
Zoran Bogdanovic, Chief Executive Officer, Executive Director2
–
–
–
–
–
–
Anna Diamantopoulou, Independent non-Executive Director, member of the Nomination Committee, Social
Responsibility Committee & Remuneration Committee3
98,749
–
–
–
–
98,749
Charlotte J. Boyle, Independent non-Executive Director, Chair of the Remuneration Committee,
and member of the Nomination Committee
98, 749
–
–
–
–
98, 749
Olusola (Sola) David-Borha, Independent non-Executive Director, member of the Audit and Risk Committee4
95,344
–
–
–
–
95,344
William W. (Bill) Douglas III, Independent non-Executive Director, Chair of the Audit and Risk Committee
110,911
–
–
–
–
110,911
Reto Francioni, Senior Independent non-Executive Director, Chair of the Nomination Committee,
and member of the Remuneration Committee5
116,262
–
–
–
–
116,262
Anastasios I. Leventis, Non-Executive Director, Chair of the Social Responsibility Committee
92,426
–
–
–
–
92,426
Christo Leventis, Non-Executive Director
79,778
–
–
–
–
79,778
Alexandra Papalexopoulou, Independent non-Executive Director, member of the Audit and Risk Committee
95,344
–
–
–
–
95,344
Ryan Rudolph, Independent non-Executive Director6
30,192
–
–
–
–
30,192
Henrique Braun, Non-Executive Director7
79,778
–
–
–
–
79,778
Bruno Pietracci, Independent non-Executive Director, member of the Social Responsibility Committee8
32,585
–
–
–
–
32,585
George Pavlos Leventis, Non-Executive Director9
49,806
–
–
–
–
49, 806
Evguenia Stoitchkova, Non-Executive Director, member of the Social Responsibility Committee10
53,754
–
–
–
–
53, 754
Total Board of Directors
1,179,613
–
–
–
–
1, 179,613
1.
Cash and non-cash benefits consist of cost-of-living allowance, housing support, Employee Stock Purchase Plan, private medical insurance relocation expenses, home trip allowance, lump sum expenses and similar allowances.
2.
Zoran Bogdanovic’s compensation was based on his role as CEO, member of the Executive Leadership Team, and his employment agreement. Zoran Bogdanovic was not entitled and did not receive additional compensation as a Director.
3.
For Anna Diamantopoulou, on top of her fees, the Group paid CHF 6,031 in social security contributions as required by Swiss legislation.
4.
For Olusola (Sola) David-Borha, on top of her fees, the Group paid CHF 7,638 in social security contributions as required by Swiss legislation.
5.
For Reto Francioni, on top of his fees, the Group paid CHF 6,867 in social security contributions as required by Swiss legislation.
6.
Robert Ryan Rudolph retired from the Board of Directors on 17 May 2023. The Group has applied a pro-rated period fee of CHF 30,192, on top of his fees, the Group paid CHF 2,419 in social security contributions as required by Swiss legislation.
7.
For Henrique Braun, on top of his fees, the Group paid CHF 6,391 in social security contributions as required by Swiss legislation.
8.
Bruno Pietracci retired from the Board of Directors on 17 May 2023. The Group has applied a pro-rated period fee of CHF 32,585, on top of his fees, the Group paid CHF 2,610 in social security contributions as required by Swiss legislation.
9.
George Pavlos Leventis was appointed to the Board of Directors on 17 May 2023. The Group has applied a pro-rated period fee of CHF 49,806.
10. Evguenia Stoitchkova was appointed to the Board of Directors on 17 May 2023. The Group has applied a pro-rated fee of CHF 53,754.
Non-Executive Directors do not participate in any of the Group’s incentive plans, nor do they receive any retirement benefits.
Statutory Remuneration Report continued
Coca-Cola HBC Integrated Annual Report 2024
337
Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Remuneration of the Executive Leadership Team
The total remuneration paid to or accrued for the Executive Leadership Team for 2024 amounted
to CHF 28.3 million.
2024 CHF
Base salary1
Cash and
non-cash
benefits2
Annual bonus
accrual3
Pension
and post-
employment
benefits4
Total fair value
of performance
shares at the
date granted5
Total
remuneration
Zoran Bogdanovic,
Chief Executive Officer,
Executive Director
882,129
757,641
935,163
142,740
1,684,849
4,402,521
Other current members6
5,910,776
5,772,093
5,270,943
902,288
4,954,893 22,810,994
Former members7
1,153,570
632,834
0
31,899
0
1,818,303
Total Executive
Leadership Team
7,946,475
7,162,568
6,206,106
1,076,927
6,639,742 29,031,818
1.
Base salary includes 639,463 CHF non-compete payments in 2024 to former members of the Executive Leadership Team.
2.
Cash and non-cash benefits consist of cost-of-living allowance, housing support, schooling, employee share purchase plan, private medical
insurance, relocation expenses, home trip allowance, employer social security contributions, lump sum expenses, all paid and unpaid sign-
on bonus, equalisation amounts and similar allowances.
3.
The annual bonus accrual for 2024 includes the accrued Management Incentive Plan (MIP) payout, receivable early in 2025 for the 2024
business performance, including amount that will be paid in May 2025 post approval by the AGM of the Remuneration Committee’s proposal
for adjustment of the MIP deferral (refer to Directors’ remuneration report), employer social security contribution and gross-up for the tax
benefit, of CHF 6,206,106. The monetary value that was paid in 2024 under the MIP reflecting the 2023 business performance is approx.
CHF 5,995,351.
4.
Members of the Executive Leadership Team participate in the pension plan of their employing entity, as appropriate.
5.
Values under long-term incentives represent the fair value of performance shares that are expected to vest for the 2024 grant in order
to comply with Swiss reporting guidelines.
6.
Anastasis Stamoulis was appointed to the role of Chief Financial Officer on 1 May 2024. Vladimir Kosijer was appointed to the role of Acting
Regional Director on 1 June 2024.
7.
Ben Almanzar’ employment ceased on 17 May 2024.
The total remuneration paid to or accrued for the Executive Leadership Team for 2023 amounted
to CHF 27.4 million.
2023 CHF
Base salary1
Cash and
non-cash
benefits2
Annual bonus
accrual3
Pension
and post-
employment
benefits4
Total fair value
of performance
shares at the
date granted5
Total
remuneration
Zoran Bogdanovic,
Chief Executive Officer,
Executive Director
851,547
684,902
867,920
151,437
2,206,537
4,762,343
Other current members6
5,160,832
4,915,703
4,368,027
635,593
4,579,469 19,659,624
Former members7
857,611
748,299
548,878
133,543
657,058
2,945,389
Total Executive
Leadership Team
6,869,990
6,348,904
5,784,825
920,573
7,443,064 27,367,356
1.
Base salary includes 204,795 CHF non-compete payments in 2023 to former members of the Executive Leadership Team.
2.
Cash and non-cash benefits consist of cost-of-living allowance, housing support, schooling, employee share purchase plan, private medical
insurance, relocation expenses, home trip allowance, employer social security contributions, lump sum expenses, all paid and unpaid sign-
on bonus, equalisation amounts and similar allowances.
3.
The annual bonus accrual for 2023 includes the accrued Management Incentive Plan (MIP) payout, receivable early in 2024 for the 2023
business performance, including amount deferred in shares, employer social security contribution and gross-up for the tax benefit, of CHF
5,784,825. The monetary value that was paid in 2023 under the MIP reflecting the 2022 business performance is approx. CHF 5,401,503.
4.
Members of the Executive Leadership Team participate in the pension plan of their employing entity, as appropriate.
5.
Values under long-term incentives represent the fair value of performance shares that are expected to vest for the 2023 grant in order
to comply with Swiss reporting guidelines.
6.
Jaak Mikkel was appointed to the role of New Businesses Director on 1 February 2023. Frank O’Donnell and Aleksandar Ruzevic were
appointed to the role of Regional Director for on 1 June 2023. Ebru Ozgen was appointed to the role of Chief People and Culture Officer
on 12 September 2023.
7.
Nikolaos Kalaitzidakis’ employment ceased on 30 September 2023. Sanda Parezanovic’s employment ceased on 30 November 2023.
Statutory Remuneration Report continued
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Swiss Statutory Reporting
Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
Shareholdings, conversion and option rights
The table below sets out a comparison of the interests in the Company’s total issued share capital that the members of the Board of Directors (‘Directors’) and Executive Leadership Team hold (all of which,
unless otherwise stated, are beneficial interests or are interests of a person connected with a Director or a member of the Executive Leadership Team) and the interests in the Company’s share capital.
31.12.2024
31.12.2023
Number of shares
Percentage
of issued
share capital1
Percentage of
outstanding
share capital2
Number of
shares
Percentage
of issued
share capital1
Percentage of
outstanding
share capital2
Directors
Anastassis G. David, Non-Executive Chairman3
–
–
–
–
–
–
Zoran Bogdanovic, Chief Executive Officer, Executive Director
386,658
0.10%
0.11%
336,219
0.09%
0.09%
Charlotte J. Boyle, Independent non-Executive Director, Chair of the Remuneration Committee,
and member of the Nomination Committee
1,395
0.00%
0.00%
1,017
0.00%
0.00%
Henrique Braun, Non-Executive Director
–
–
–
–
–
–
Olusola (Sola) David-Borha, Independent non-Executive Director, member of the Audit and Risk Committee
–
–
–
–
–
–
Anna Diamantopoulou, Independent non-Executive Director, member of the Nomination Committee,
Social Responsibility Committee & Remuneration Committee
–
–
–
–
–
–
William W. (Bill) Douglas III, Independent non-Executive Director, Chair of the Audit and Risk Committee
10,000
0.00%
0.00%
10,000
0.00%
0.00%
Reto Francioni, Senior Independent non-Executive Director, Chair of the Nomination Committee,
and member of the Remuneration Committee
7,000
0.00%
0.00%
7,000
0.00%
0.00%
Anastasios I. Leventis, Non-Executive Director, Chair of the Social Responsibility Committee4
–
–
–
–
–
–
Christo Leventis, Non-Executive Director5
–
–
–
–
–
–
Alexandra Papalexopoulou, Independent non-Executive Director, member of the Audit and Risk Committee
–
–
–
–
–
–
Bruno Pietracci, Independent non-Executive Director, member of the Social Responsibility Committee
–
–
–
–
–
–
Ryan Rudolph, Independent non-Executive Director
–
–
–
–
–
–
George Pavlos Leventis, Non-Executive Director6
–
–
–
–
–
–
Evguenia Stoitchkova, Non-Executive Director, member of the Social Responsibility Committee
–
–
–
–
–
–
Footnotes are presented at the end of the table.
Statutory Remuneration Report continued
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Financial Statements
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Strategic Report
Supplementary Information
31.12.2024
31.12.2023
Number of shares
Percentage
of issued
share capital1
Percentage of
outstanding
share capital2
Number of
shares
Percentage
of issued
share capital1
Percentage of
outstanding
share capital2
Executive Leadership Team
Minas Agelidis, Region Director
101,311
0.03%
0.03%
97,411
0.03%
0.03%
Mourad Ajarti, Chief Digital and Technology Officer
49,479
0.01%
0.01%
42,622
0.01%
0.01%
Ben Almanzar, Chief Financial Officer7
0
0.00%
0.00%
29,565
0.01%
0.01%
Ivo Bjelis, Chief Supply Chain Officer
28,254
0.01%
0.01%
51,566
0.01%
0.01%
Jan Gustavsson, General Counsel, Company Secretary and Chief Corporate Development Officer
191,033
0.05%
0.05%
243,414
0.07%
0.07%
Naya Kalogeraki, Chief Operating Officer
123,889
0.03%
0.03%
109,394
0.03%
0.03%
Martin Marcel, Chief Corporate Affairs and Sustainability Officer
138,639
0.04%
0.04%
153,355
0.04%
0.04%
Spyros Mello, Strategy and Transformation Director
81,560
0.02%
0.02%
67,259
0.02%
0.02%
Vitaliy Novikov, Digital Commerce Business Development Director
17,117
0.00%
0.00%
14,355
0.00%
0.00%
Barbara Tönz, Chief Customer and Commercial Officer
7,195
0.00%
0.00%
5,707
0.00%
0.00%
Jaak Mikkel, New Businesses Director
49,959
0.01%
0.01%
38,791
0.01%
0.01%
Frank O’Donnell, Region Director
50,133
0.01%
0.01%
39,821
0.01%
0.01%
Aleksandar Ruzevic, Region Director
30,491
0.01%
0.01%
53,992
0.01%
0.01%
Ebru Ozgen, Chief People and Culture Officer
8,017
0.00%
0.00%
183
0.00%
0.00%
Anastasis Stamoulis, Chief Financial Officer8
3,245
0.00%
0.00%
14,561
0.00%
0.00%
Vladimir Kosijer, Acting Region Director9
37,644
0.01%
0.01%
28,609
0.01%
0.01%
Footnotes are presented at the end of the table.
Statutory Remuneration Report continued
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
The following table sets out information regarding the stock options and performance shares held by members of the Executive Leadership Team or any related person as at 31 December 2024:
Stock options (ESOP)
Performance shares (PSP)
Number of
stock options
Already vested
Vesting at the
end of 2024
Granted
in 2024
Unvested and
subject to
performance
conditions
Vested
Zoran Bogdanovic, Chief Executive Officer, Executive Director10
–
–
–
109,165
399,538
95,843
Minas Agelidis, Region Director
–
–
–
21,422
70,806
19,041
Mourad Ajarti, Chief Digital and Technology Officer
–
–
–
18,212
58,251
14,160
Ivo Bjelis, Chief Supply Chain Officer
–
–
–
18,890
62,761
10,333
Jan Gustavsson, General Counsel, Company Secretary and Chief Corporate Development Officer
–
–
–
27,311
91,318
24,806
Naya Kalogeraki, Chief Operating Officer
–
–
–
45,434
146,249
37,716
Martin Marcel, Chief Corporate Affairs and Sustainability Officer
–
–
–
23,824
79,465
21,408
Spyros Mello, Strategy and Transformation Director
–
–
–
14,676
49,995
10,850
Vitaliy Novikov, Digital Commerce Business Development Director
–
–
–
20,719
69,320
18,783
Barbara Tönz, Chief Customer and Commercial Officer
–
–
–
17,123
60,676
–
Jaak Mikkel, New Businesses Director
–
–
–
14,866
49,039
12,532
Frank O’Donnell, Region Director
–
–
–
19,358
52,093
12,680
Aleksandar Ruzevic, Region Director
–
–
–
20,180
56,140
13,948
Ebru Ozgen, Chief People and Culture Officer
–
–
–
20,581
57,834
7,038
Anastasis Stamoulis, Chief Financial Officer
–
–
–
20,280
45,944
8,875
Vladimir Kosijer, Acting Region Director
–
–
–
12,954
36,683
8,295
1.
Basis: total issued share capital including treasury shares. Share basis 373,239,562 as at 31 December 2024 (2023: 372,977,222)
2.
Basis: total issued share capital excluding treasury shares. Share basis 362,188,886 as at 31 December 2024 (2023: 366,908,685)
3.
Anastassis G. David is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding; and
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 832,268 shares held by Ari Holdings Limited.
4.
Anastasios I. Leventis is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 286,880 shares held by its trustee, Selene Treuhand AG; and
(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
5.
Christo Leventis is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 482,228 shares held by its trustee, Selene Treuhand AG; and
(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
6
George Pavlos Leventis is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 294,191 shares held by its trustee, Selene Treuhand AG; and
(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
7.
Ben Almanzar’s employment ceased on 17 May 2024.
8.
Anastasis Stamoulis joined the Executive Leadership Team on 1 May 2024.
9.
Vladimir Kosijer joined the Executive Leadership Team on 1 June 2024.
10. The Remuneration Committee determined at its meeting on 12 March 2025 that in line with the terms of the PSP, PSP awards granted to Zoran Bogdanovic in 2022 vested over in aggregate 117,958 shares (including the dividend equivalent shares paid on PSP shares that vested in 2025).
Statutory Remuneration Report continued
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Financial Statements
Corporate Governance
Strategic Report
Supplementary Information
The following table sets out information regarding the stock options and performance shares held by members of the Executive Leadership Team or any related person as at 31 December 2023:
Stock options (ESOP)
Performance shares (PSP)
Number of
stock options
Already vested
Vesting at the
end of 2023
Granted
in 2023
Unvested and
subject to
performance
conditions
Vested
Zoran Bogdanovic, Chief Executive Officer, Executive Director12
39,335
39,335
–
162,847
391,872
75,777
Minas Agelidis, Region Director
–
–
–
24,954
69,549
27,593
Mourad Ajarti, Chief Digital and Technology Officer
–
–
–
20,823
55,035
22,536
Ben Almanzar, Chief Financial Officer
–
–
–
30,465
91,844
9,743
Ivo Bjelis, Chief Supply Chain Officer
–
–
–
20,979
54,814
15,830
Jan Gustavsson, General Counsel, Company Secretary and Chief Corporate Development Officer
–
–
–
32,551
90,277
38,001
Nikos Kalaitzidakis, Region Director7
–
–
–
25,248
69,724
29,170
Naya Kalogeraki, Chief Operating Officer
21,239
21,239
–
50,066
140,757
35,478
Martin Marcel, Chief Corporate Affairs and Sustainability Officer
–
–
28,142
78,313
32,797
Spyros Mello, Strategy and Transformation Director
–
–
–
17,267
46,810
16,622
Vitaliy Novikov, Digital Commerce Business Development Director
–
–
–
24,204
68,493
22,299
Sanda Parezanovic, Chief People and Culture Officer8
–
–
–
26,029
72,139
30,273
Barbara Tönz, Chief Customer and Commercial Officer
–
–
–
19,784
43,553
–
Jaak Mikkel, New Businesses Director9
15,927
15,927
–
18,179
47,445
19,200
Frank O’Donnell, Region Director10
–
–
–
16,365
46,164
14,781
Aleksandar Ruzevic, Region Director10
7,432
7,432
–
18,201
50,732
21,370
Ebru Ozgen, Chief People and Culture Officer11
–
–
–
44,741
44,741
–
1.
Basis: total issued share capital including treasury shares. Share basis 372,977,222 as at 31 December 2023 (2022: 372,086,095)
2.
Basis: total issued share capital excluding treasury shares. Share basis 366,908,685 as at 31 December 2023 (2022: 366,699,378)
3.
Anastassis G. David is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding; and
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 832,268 shares held by Ari Holdings Limited.
4.
Anastasios I. Leventis is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 286,880 shares held by its trustee, Selene Treuhand AG; and
(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
5.
Christo Leventis is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 482,228 shares held by its trustee, Selene Treuhand AG; and
(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
6
George Pavlos Leventis is a beneficiary of:
(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;
(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 294,191 shares held by its trustee, Selene Treuhand AG; and
(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.
7.
Mr. Nikos Kalaitzidakis’ employment ceased on 30 September 2023.
8.
Ms. Sanda Parezanovic’s employment ceased on 30 November 2023.
9. Mr. Jaak Mikkel joined the Executive Leadership Team on 1 February 2023.
10. Mr. Frank O’Donnell and Mr. Aleksandar Ruzevic joined the Executive Leadership Team on 1 June 2023.
11. Ms. Ebru Ozgen joined the Executive Leadership Team on 12 September 2023.
12. The Remuneration Committee determined at its meeting on 13 March 2024 that, in line with the terms of the PSP, PSP awards granted to Zoran Bogdanovic in 2021 vested over in aggregate 95,843 shares (including the dividend equivalent shares paid on PSP shares that vested in 2024)
Statutory Remuneration Report continued
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Information on functions in other undertakings
The following table lists all functions of the individual members of the Board of Directors
in other undertakings.
Companies and associations
Function
Anastassis G. David,
Non-Executive Chairman
Aegean Airlines S.A. Vice Chairman of the Board of Directors
Cyprus Union of Shipowners
Vice Chairman of the Executive
Committee
Sea Trade Holdings Inc
Chairman of the Board of Directors
Nephele Navigation Inc
Chairman of the Board of Directors
Adcom Advisory Ltd
Member of the Board of Directors
Kar-Tess Holding
Member of the Board of Directors
College Year, Athens
Member of the Board of Trustees
George and Kaity David
Foundation
Director
Zoran Bogdanovic,
Chief Executive Officer,
Executive Director
–
–
Charlotte J. Boyle, Independent
non-Executive Director,
Chair of the Remuneration
Committee, and member of
the Nomination Committee &
Social Responsibility Committee
UN High Commissioner for
Refugees (UNHCR)
Chairman for UK
Thatchers Cider Company Ltd
Non-Executive Director
Knight Frank LLP
Non-Executive Director
Worcester College, Oxford
University
Advisory Board Member
Henrique Braun,
Non-Executive Director,
The Coca–Cola Company
Executive Vice President
and Chief Operating Officer
Zulikat Wuraola Abiola,
Independent non-Executive
Director, member of the
Audit and Risk Committee
Management
Transformation Ltd.
Managing Director
Frigoglass S.A.I.C.
Non-Executive Senior Independent
Director and Vice Chair
Appzone Mauritius Ltd.
Chairman of the Board of Directors
Lekoil Nigeria Limited
Board Director
Summit Oil International Ltd.
(Nigeria)
Board Director
Companies and associations
Function
Elizabeth Bastoni,
Independent non-Executive
Director, member of the
Nomination Committee &
Remuneration Committee
Qorium B.V.
Independent Director and Chairman of
the Board of Directors
Jerónimo Martins
Independent Director and Audit
Committee Member
Euroapi
Audit Committee Independent Director
and Chair of the Nomination and
Compensation Committee
CNH Industrial
Independent Director and Chair of
the Human Capital & Compensation
Committee
William W. (Bill) Douglas III,
Independent non-Executive
Director, Chair of the Audit
and Risk Committee
SiteOne Landscape Supply Inc
Lead Director and Chairman
of the Audit Committee
The North Highland Esop
Holdings Inc.
Non-Executive Chair of
the Board of Directors
Dollar Tree, Inc.
Non-Executive Director
Monster Beverage Corporation
Non-Executive Director
Reto Francioni, Senior
Independent non-Executive
Director, Chair of the Nomination
Committee, and member of the
Remuneration Committee
UBS Europe SE
Chairman of the Supervisory Board
Swiss International Airlines
Chairman of the Supervisory Board
Medtech Innovation
Partners AG
Vice Chairman of the
Board of Directors
Anastasios I. Leventis,
Non-Executive Director,
Chair of the Social Responsibility
Committee
A.G. Leventis (Nigeria) Ltd.
Member of the Board of Directors
Leventis Foundation Nigeria
Director
A.G. Leventis Foundation
Member of the Board of Trustees
Nephele Navigation Inc Vice Chairman of the Board of Directors
Kar-Tess Holding
Member of the Board of Directors
Maxenta Invest Corp.
Member of the Board of Directors
Middle East Finance Sarl
Member of the Board of Directors
Adcom Advisory Ltd
Member of the Board of Directors
European Council of the
Nature Conservancy
Member
WWF Hellas (Greek branch)
Member of the Board of Directors
Gennadius Library in Athens
Member of the Board of Overseers
University of Exeter Member of the Global Advancement Board
Cyclades Preservation Fund
Co-Founder
Statutory Remuneration Report continued
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Companies and associations
Function
Christo Leventis, Non-Executive
Director
Alpheus Capital Ltd.
Chairman and Member
of the Board of Directors
Kar-Tess Holding
Member of the Board of Directors
Torval Investment Corp.
Member of the Board of Directors
Adcom Advisory Ltd
Member of the Board of Directors
Middle East Finance Sarl
Member of the Board of Directors
A.G. Leventis Foundation
Trustee
Glykeria Tsernou,
Independent non-Executive
Director, member of the Audit
and Risk Committee
Attica Department Stores S. A.
Non-Executive Director
Goldair Handling S.A.
Non-Executive Director
Phaea S.A
Non-Executive Director
Resolute Cepal Greece S. A.
Independent Non–Executive Director
Reinvest Greece S. A.
Independent Non–Executive Director
Elecion Energy S.A.
Chairman of the Board of Directors
Anatolia College
Member of the Board of Trustees
Evguenia Stoitchkova,
Non-Executive Director,
member of the Social
Responsibility Committee
The Coca–Cola Company
President of Global Ventures
George Pavlos Leventis,
Non-Executive Director
8 Kensington Park Road Ltd
Member of the Board of Directors
Chalet Alpette Sarl
Member of the Board of Directors
Adcom Advisory Ltd
Member of the Board of Directors
Torval Investment Corp.
Member of the Board of Directors
Terra Cyprisa Foundation
Director
The following table lists all functions of the individual members of the Executive Leadership Team in
other undertakings.
Companies and associations
Function
Naya Kalogeraki,
Chief Operating Officer
Casa del Caffè Vergnano S.p.A
Board Member
Jan Gustavsson,
General Counsel, Company
Secretary and Chief Corporate
Development Officer
Casa del Caffè Vergnano S.p.A
Board Member
Credits and loans granted to governing bodies
In 2024, similar to 2023, there were no credits or loans granted to active or former members of the
Company’s Board of Directors, members of the Executive Leadership Team or to any related persons.
There are no outstanding credits or loans.
Statutory Remuneration Report continued
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Supplementary Information
1.
Comparable APMs refer to comparable cost of goods sold, comparable gross profit, comparable operating expenses, comparable EBIT, comparable EBIT margin, comparable adjusted EBITDA, comparable profit before tax, comparable tax, comparable net profit and comparable EPS.
1. Comparable APMs1
In discussing the performance of the Group, ‘comparable’ measures are used. Comparable measures
are calculated by deducting from the directly reconcilable IFRS measures the impact of the Group’s
restructuring costs, the mark-to-market valuation of the commodity hedging activity, the acquisition,
integration and divestment-related costs, the impairment of goodwill and indefinite-lived intangible
assets, the Russia-Ukraine conflict impact and certain other tax items, which are collectively
considered as items impacting comparability, due to their nature. More specifically, the following
items are considered as items that impact comparability:
1. Restructuring costs
Restructuring costs comprise costs arising from significant changes in the way the Group conducts
business, such as significant supply chain infrastructure changes, outsourcing of activities and
centralisation of processes. These costs are included within the income statement line ‘Operating
expenses’; however, they are excluded from the comparable results so that the users can obtain a
better understanding of the Group’s operating and financial performance achieved from underlying
activity. Restructuring costs resulting from initiatives driven by the Russia-Ukraine conflict are
presented under the ‘Russia-Ukraine conflict impact’ item, to provide users complete information
on the financial implications of the conflict.
2. Commodity hedging
The Group has entered into certain commodity derivative transactions in order to hedge its exposure
to commodity price risk. Although these transactions are economic hedging activities that aim to
manage our exposure to sugar, aluminium, gas oil and plastics price volatility, hedge accounting
has not been applied in all cases. In addition, the Group recognises certain derivatives embedded
within commodity purchase contracts that have been accounted for as standalone derivatives and
do not qualify for hedge accounting. The fair value gains or losses on the derivatives and embedded
derivatives are immediately recognised in the income statement in the cost of goods sold and
operating expenses line items. The Group’s comparable results exclude the gains or losses resulting
from the mark-to-market valuation of these derivatives to which hedge accounting has not been
applied (primarily plastics) and embedded derivatives. These gains or losses are reflected in the
comparable results in the period when the underlying transactions occur, to match the profit or loss
to that of the corresponding underlying transactions. We believe this adjustment provides useful
information related to the impact of our economic risk management activities.
3. Acquisition, integration and divestment-related costs or gains
Acquisition costs comprise costs incurred to effect a business combination such as finder’s fees,
advisory, legal, accounting, valuation and other professional or consulting fees as well as changes in
the fair value of contingent consideration recognised in the income statement. They also include any
gain from bargain purchase arising from business combinations, as well as any gain or loss recognised
in the income statement from the remeasurement to fair value of previously held interests and the
reclassification to the income statement of items of other comprehensive income resulting from
step acquisitions. Integration costs comprise direct incremental costs necessary for the acquiree
to operate within the Group. Divestment-related costs comprise transaction expenses, including
advisory, consulting and other professional fees to effect the disposal of a subsidiary or equity method
investment, any impairment losses or write downs to fair value less costs to sell recognised in the
income statement upon classification as held for sale and any relevant disposal gains or losses or
reversals of impairment recognised in the income statement upon disposal. These costs or gains are
included within the income statement line ‘Operating expenses’; however, to the extent that they relate
to business combinations or divestments that have been completed or are expected to be completed,
they are excluded from the comparable results so that the users can obtain a better understanding of
the Group’s operating and financial performance achieved from underlying activity.
4. Impairment of goodwill and indefinite-lived intangible assets
Impairment losses recognised for goodwill and indefinite-lived intangible assets as well as reversals
of impairment losses recognised for indefinite-lived intangible assets are included within the income
statement line ‘Operating expenses’; however they are excluded from comparable results so that the
users can obtain a better understanding of the Group’s ongoing operating and financial performance.
5. Russia-Ukraine conflict impact
As a result of the conflict between Russia and Ukraine, the Group recognised net impairment
losses for property, plant and equipment, intangible assets and equity method investments as well
as restructuring costs, in connection with the new business model in Russia and adverse changes to
the economic environment. The Group also recognised incremental allowance for expected credit
losses and write-offs of inventory and property, plant and equipment resulting from the Russia-Ukraine
conflict. The aforementioned net impairment losses were included within the income statement line
‘Exceptional items related to Russia-Ukraine conflict’ so as to provide users with enhanced visibility
over these items considering their materiality, while remaining costs were included within ‘Operating
expenses’ and ‘Cost of goods sold’ lines of the income statement accordingly. Net impairment losses
and other costs directly attributable to the Russia-Ukraine conflict are excluded from the comparable
results so that the users can obtain a better understanding of the Group’s operating and financial
performance from underlying activity.
Alternative performance measures
Definitions and reconciliations of alternative performance measures (APMs)
345
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Supplementary Information
Coca-Cola HBC Integrated Annual Report 2024
Alternative performance measures continued
1. Comparable APMs continued
6. Other tax items
Other tax items represent the tax impact of (a) changes in income tax rates arising during the year,
affecting the opening balance of deferred tax and (b) certain tax-related matters selected based on
their nature. Both (a) and (b) are excluded from comparable after-tax results so that the users can
obtain a better understanding of the Group’s underlying financial performance.
The Group discloses comparable performance measures to enable users to focus on the underlying
performance of the business on a basis which is common to both periods for which these measures
are presented.
The reconciliation of comparable measures to the directly related measures calculated in accordance
with IFRS is as follows:
Reconciliation of comparable financial indicators (numbers in € million except per share data)
Full year 2024
Cost of
goods
sold
Gross
profit
Operating
expenses
EBIT
Adjusted
EBITDA
Profit
before tax
Tax
Net
profit1
EPS (€)
As reported
(6,877)
3,877 (2,706) 1,185
1,598
1,128
(308)
821
2.253
Restructuring costs
–
–
3
3
3
3
(1)
3
0.007
Commodity hedging
1
1
–
1
1
1
–
1
0.003
Acquisition costs
–
–
2
2
2
2
–
2
0.005
Impairment of indefinite-
lived intangible assets
–
–
–
–
–
–
–
–
0.001
Other tax items
–
–
–
–
–
–
2
2
0.006
Comparable
(6,876) 3,879 (2,700) 1,192
1,604
1,135
(307)
829
2.275
Full year 2023
Cost of
goods
sold
Gross
profit
Operating
expenses
EBIT
Adjusted
EBITDA
Profit
before tax
Tax
Net
profit1
EPS (€)
As reported
(6,627)
3,557
(2,614)
954
1,488
910
(275)
636
1.730
Restructuring costs
–
–
8
8
7
8
(2)
7
0.018
Commodity hedging
5
5
–
5
5
5
(1)
3
0.009
Acquisition costs
–
–
6
6
6
6
–
6
0.017
Russia-Ukraine
conflict impact
–
–
–
–
–
–
–
–
0.001
Impairment of goodwill
and indefinite-lived
intangible assets
–
–
111
111
–
111
–
111
0.301
Other tax items
–
–
–
–
–
–
1
1
0.002
Comparable
(6,622)
3,562
(2,488)
1,084
1,506
1,040
(277)
764
2.078
Figures are rounded.
1.
Net profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.
Reconciliation of comparable EBIT per reportable segment (numbers in € million)
Full year 2024
Established
Developing
Emerging
Consolidated
EBIT
386
224
576
1,185
Restructuring costs
–
–
3
3
Commodity hedging
–
4
(3)
1
Acquisition costs
2
–
–
2
Impairment of indefinite-lived
intangible assets
–
–
–
–
Comparable EBIT
388
227
577
1,192
346
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Coca-Cola HBC Integrated Annual Report 2024
1. Comparable APMs continued
Full year 2023
Established
Developing
Emerging
Consolidated
EBIT
379
153
422
954
Restructuring costs
1
1
6
8
Commodity hedging
(1)
(2)
7
5
Acquisition costs
2
1
3
6
Russia-Ukraine conflict impact
–
–
–
–
Impairment of goodwill and
indefinite-lived intangible assets
–
1
109
111
Comparable EBIT
381
154
549
1,084
Figures are rounded.
2. Organic APMs
Organic growth
Organic growth enables users to focus on the operating performance of the business on a basis that is
not affected by changes in foreign currency exchange rates from year to year or changes in the Group’s
scope of consolidation (‘consolidation perimeter’), i.e. acquisitions, divestments and reorganisations
resulting in equity method accounting. Thus, organic growth is designed to assist users in better
understanding the Group’s underlying performance.
More specifically, the following items are adjusted from the Group‘s volume, net sales revenue and
comparable EBIT in order to derive organic growth metrics:
(a) Foreign currency impact
Foreign currency impact in the organic growth calculation reflects the adjustment of prior-year net
sales revenue and comparable EBIT metrics for the impact of changes in exchange rates applicable
to the current year.
(b) Consolidation perimeter impact
Current-year volume, net sales revenue and comparable EBIT metrics are each adjusted for the impact
of changes in the consolidation perimeter. More specifically, adjustments are performed as follows:
i. Acquisitions:
For current-year acquisitions, the results generated in the current year by the acquired entities are
not included in the organic growth calculation. For prior-year acquisitions, the results generated in the
current year over the period during which the acquired entities were not consolidated in the prior year
are not included in the organic growth calculation.
For current-year step acquisitions where the Group obtains control of a) entities over which it previously
held either joint control or significant influence and which were accounted for under the equity method,
or b) entities which were carried at fair value either through profit or loss or other comprehensive
income, the results generated in the current year by the relevant entities over the period during
which these entities are consolidated are not included in the organic growth calculation. For such step
acquisitions of entities previously accounted for under the equity method, the share of results for the
respective period described above is included in the organic growth calculation of the current year.
For such step acquisitions of entities previously accounted for at fair value through profit or loss, any
fair value gains or losses for the respective period described above are included in the organic growth
calculation. For such step acquisitions in the prior year, the results generated in the current year by the
relevant entities over the period during which these entities were not consolidated in the prior year are
not included in the organic growth calculation. However, the share of results of gains or losses from
fair value changes of the respective entities, based on their accounting treatment prior to the step
acquisition, for the current-year period during which these entities were not consolidated in the prior
year are included in the organic growth calculation.
ii. Divestments:
For current-year divestments, the results generated in the prior year by the divested entities over the
period during which the divested entities are no longer consolidated in the current year are included in
the current year’s results for the purpose of the organic growth calculation. For prior-year divestments,
the results generated in the prior year by the divested entities over the period during which the divested
entities were consolidated are included in the current year’s results for the purpose of the organic
growth calculation.
iii. Reorganisations resulting in equity method accounting:
For current-year reorganisations where the Group maintains either joint control or significant
influence over the relevant entities so that they are reclassified from subsidiaries or joint operations
to joint ventures or associates and accounted for under the equity method, the results generated
in the current year by the relevant entities over the period during which these entities are no longer
consolidated are included in the current year’s results for the purpose of the organic growth calculation.
For such reorganisations in the prior year, the results generated in the current year by the relevant
entities over the period during which these entities were consolidated in the prior year are included
in the current year’s results for the purpose of the organic growth calculation. In addition, the share
of results in the current year of the relevant entities, for the respective period as described above, is
excluded from the organic growth calculation for such reorganisations.
The calculations of the organic growth and the reconciliation to the most directly related measures
calculated in accordance with IFRS are presented in the tables on the next page. Organic growth (%) is
calculated by dividing the amount in the row titled ‘Organic movement’ by the amount in the associated
row titled ‘2023 reported’ or, where presented, ‘2023 adjusted’. Organic growth for comparable EBIT
margin is the organic movement expressed in basis points.
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2. Organic APMs continued
Reconciliation of organic measures
Full year 2024
Volume (m unit cases)
Established
Developing
Emerging
Consolidated
2023 reported
629
471
1,736
2,835
Consolidation perimeter impact
1
–
–
1
Organic movement
2
12
65
78
2024 reported
631
483
1,801
2,914
Organic growth (%)
0.3%
2.5%
3.7%
2.8%
Full year 2024
Net sales revenue (€ m)
Established
Developing
Emerging
Consolidated
2023 reported
3,359
2,089
4,737
10,184
Foreign currency impact
14
25
(789)
(750)
2023 adjusted
3,373
2,114
3,948
9,434
Consolidation perimeter impact
19
3
–
22
Organic movement
110
268
920
1,298
2024 reported
3,501
2,385
4,868
10,754
Organic growth (%)
3.3%
12.7%
23.3%
13.8%
Full year 2024
Net sales revenue per unit case (€)1
Established
Developing
Emerging
Consolidated
2023 reported
5.34
4.43
2.73
3.59
Foreign currency impact
0.02
0.05
(0.45)
(0.26)
2023 adjusted
5.36
4.49
2.27
3.33
Consolidation perimeter impact
0.02
0.01
–
0.01
Organic movement
0.16
0.45
0.43
0.36
2024 reported
5.55
4.94
2.70
3.69
Organic growth (%)
3.0%
10.0%
18.9%
10.7%
Full year 2024
Comparable EBIT (€ m)
Established
Developing
Emerging
Consolidated
2023 reported
381
154
549
1,084
Foreign currency impact
2
2
(40)
(36)
2023 adjusted
383
156
509
1,048
Consolidation perimeter impact
5
9
2
16
Organic movement
–
62
66
128
2024 reported
388
227
577
1,192
Organic growth (%)
(0.1%)
39.6%
13.0%
12.2%
Full year 2024
Comparable EBIT margin (%)1
Established
Developing
Emerging
Consolidated
2023 reported
11.3%
7.4%
11.6%
10.6%
Foreign currency impact
–
–
1.3%
0.5%
2023 adjusted
11.4%
7.4%
12.9%
11.1%
Consolidation perimeter impact
0.1%
0.4%
–
0.1%
Organic movement
(0.4%)
1.8%
(1.1%)
(0.2%)
2024 reported
11.1%
9.5%
11.8%
11.1%
Organic growth (%)
-40bps
180bps
-110bps
-20bps
Figures are rounded.
1.
Certain differences in calculations are due to rounding.
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3. Other APMs
Adjusted EBITDA
Adjusted EBITDA is calculated by adding back to operating profit the depreciation and net impairment
of property, plant and equipment, the amortisation and net impairment of intangible assets, the net
impairment of equity method investments, the employee share option and performance share costs
and items, if any, reported in line ‘Other non-cash items’ of the consolidated cash flow statement. Adjusted
EBITDA is intended to provide useful information to analyse the Group’s operating performance excluding
the impact of operating non-cash items as defined above. The Group also uses comparable adjusted
EBITDA, which is calculated by deducting from adjusted EBITDA the impact of: the Group’s restructuring
costs, the acquisition, integration and divestment-related costs or gains, the mark-to-market valuation
of the commodity hedging activity and the impact from the Russia-Ukraine conflict. Comparable adjusted
EBITDA is intended to measure the level of financial leverage of the Group by comparing comparable
adjusted EBITDA with net debt.
Adjusted EBITDA and comparable adjusted EBITDA are not measures of profitability and liquidity under
IFRS and have limitations, some of which are as follows: adjusted EBITDA and comparable adjusted
EBITDA do not reflect our cash expenditures, or future requirements, for capital expenditures or
contractual commitments; adjusted EBITDA and comparable adjusted EBITDA do not reflect changes
in, or cash requirements for, our working capital needs; although depreciation and amortisation are
non-cash charges, the assets being depreciated and amortised will often have to be replaced in the
future, and adjusted EBITDA and comparable adjusted EBITDA do not reflect any cash requirements
for such replacements. Because of these limitations, adjusted EBITDA and comparable adjusted
EBITDA should not be considered as measures of discretionary cash available to us and should be
used only as supplementary APMs.
Free cash flow
Free cash flow is an APM used by the Group and defined as cash generated by operating activities
after payments for purchases of property, plant and equipment net of proceeds from sales of property,
plant and equipment, including principal repayments of lease obligations. Free cash flow is intended to
measure the cash generation from the Group’s business, based on operating activities, including the
efficient use of working capital and taking into account its net payments for purchases of property, plant
and equipment. The Group considers the purchase and disposal of property, plant and equipment as
ultimately non-discretionary since ongoing investment in plant, machinery, technology and marketing
equipment, including coolers, is required to support the day-to-day operations and the Group’s growth
prospects. The Group presents free cash flow because it believes the measure assists users of the
financial statements in understanding the Group’s cash-generating performance as well as availability
for interest payment, dividend distribution and own retention. The free cash flow measure is used by
management for its own planning and reporting purposes since it provides information on operating
cash flows, working capital changes and net capital expenditure that local managers are most directly
able to influence.
Free cash flow is not a measure of cash generation under IFRS and has limitations, some of which are
as follows: free cash flow does not represent the Group’s residual cash flow available for discretionary
expenditures since the Group has debt payment obligations that are not deducted from the measure;
free cash flow does not deduct cash flows used by the Group in other investing and financing activities,
and free cash flow does not deduct certain items settled in cash. Other companies in the industry
in which the Group operates may calculate free cash flow differently, limiting its usefulness as a
comparative measure.
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3. Other APMs continued
Capital expenditure
Capital expenditure is defined as payments for purchases of property, plant and equipment plus
principal repayments of lease obligations less proceeds from sales of property, plant and equipment.
The Group uses capital expenditure as an APM to ensure that cash spending is in line with its overall
strategy for the use of cash.
The following table illustrates how adjusted EBITDA, Free cash flow and Capital expenditure are calculated:
2024
€ million
2023
€ million
Operating profit (EBIT)
1,185
954
Depreciation and impairment of property, plant and equipment,
including right-of-use assets
396
400
Amortisation and impairment of intangible assets
1
114
Employee performance shares
16
20
Adjusted EBITDA
1,598
1,488
Share of results of integral equity method investments
(14)
(10)
Gain on disposals of non-current assets
(5)
(1)
Cash generated from working capital movements
101
136
Tax paid
(289)
(226)
Net cash from operating activities
1,392
1,387
Payments for purchases of property, plant and equipment1
(627)
(623)
Principal repayments of lease obligations
(61)
(59)
Proceeds from sales of property, plant and equipment
9
7
Capital expenditure
(679)
(675)
Free cash flow
713
712
Figures are rounded.
Net debt
Net debt is an APM used by management to evaluate the Group’s capital structure and leverage. Net
debt is defined as current and non-current borrowings, net of the fair value of fixed-to-floating interest
rate swaps, less cash and cash equivalents and financial assets (time deposits and money market
funds), as illustrated below:
As at 31 December
2024
€ million
2023
€ million
Current borrowings
889
948
Non-current borrowings
3,092
2,476
Interest rate swaps (fixed-to-floating)
(24)
–
Other financial assets
(884)
(569)
Cash and cash equivalents
(1,548)
(1,261)
Net debt
1,524
1,595
Figures are rounded.
1.
Payments for purchases of property, plant and equipment for 2024 include €12 million (2023: €12 million) relating to repayment of borrowings undertaken to finance the purchase of production equipment by the Group’s subsidiary in Nigeria, classified as ‘Repayments of borrowings’ in the
consolidated cash flow statement.
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3. Other APMs continued
Return on invested capital (ROIC)
ROIC is an APM used by management to assess the return obtained from the Group’s asset base and
is defined as the percentage of comparable net profit excluding net finance costs divided by the five-
quarter average capital invested in the business (‘capital employed’). Capital employed is defined as the
average net debt and shareholders’ equity attributable to the owners of the parent, as illustrated below.
The Group presents ROIC because it believes the measure assists users of the financial statements
in understanding the Group’s capital efficiency.
Year ended 31 December
2024
€ million
2023
€ million
Comparable operating profit
1,192
1,084
Plus: Share of results of non-integral equity method investments
3
5
Less: Comparable tax
(307)
(277)
Tax shield1
(16)
(13)
Comparable net profit excl. finance costs, net (a)
872
799
Average net debt3
1,715
1,676
Plus: Average equity attributable to owners of the parent3
3,042
3,194
Capital employed (b)
4,758
4,870
Return on invested capital (a/b)
18.3%
16.4%
Figures are rounded.
1.
Tax shield is calculated as comparable effective tax rate times finance costs, net, as illustrated below:
Year ended 31 December
2024
€ million
2023
€ million
Finance costs, net
61
48
Comparable effective tax rate (%)2
27%
27%
Tax shield
16
13
Figures are rounded.
2.
Comparable effective tax rate is calculated as comparable tax divided by comparable profit before tax, as illustrated below:
Year ended 31 December
2024
€ million
2023
€ million
Comparable tax
307
277
Comparable profit before tax
1,135
1,040
Comparable effective tax rate (%)
27%
27%
Figures are rounded.
3.
Five-quarter average net debt and equity attributable to owners of the parent are calculated as presented below:
2024
Q4 2023
€ million
Q1 2024
€ million
Q2 2024
€ million
Q3 2024
€ million
Q4 2024
€ million
Average
€ million*
Net debt
1,595
1,876
1,827
1,755
1,524
1,715
Equity attributable to owners of the parent
3,093
2,943
2,910
3,059
3,206
3,042
2023
Q4 2022
€ million
Q1 2023
€ million
Q2 2023
€ million
Q3 2023
€ million
Q4 2023
€ million
Average
€ million*
Net debt
1,673
1,827
1,779
1,505
1,595
1,676
Equity attributable to owners of the parent
3,282
3,255
3,005
3,336
3,093
3,194
Figures are rounded.
*Certain differences in calculations are due to rounding.
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Independent Auditor’s Limited Assurance Report
To the Board of Directors
of Coca-Cola HBC AG
Subject Matter
As described in the engagement letter dated 16.12.2024, we were assigned to provide you with
limited assurance on whether selected sustainability information, listed in Appendix I, included in
the Integrated Annual Report 2024 and the 2024 GRI Content Index – (hereinafter referred to as the
“Selected Sustainability Information”), was prepared by Coca-Cola HBC AG (hereinafter referred to as
“Coca-Cola HBC”), for the period from 1 January 2024 to 31 December 2024 (hereinafter “Reporting
Period”) in compliance with the Applicable Criteria as described below (hereinafter referred to as
“Subject Matter”).
Applicable Criteria
The following standards constitute the applicable criteria for the evaluation of the Subject Matter:
i. The “Reporting in accordance with the GRI Standards” option (requirements set in GRI 1:
Foundation 2021)
ii. All the available General Disclosures of GRI 2: General Disclosures 2021 (Appendix I)
iii. All the available GRI Topic-specific disclosures (listed in Appendix I)
Management Responsibilities
The Management of Coca-Cola HBC is responsible for the preparation, measurement, presentation
and reporting of the Selected Sustainability Information in accordance with the GRI Standards
(2021 update).
Auditor’s Responsibility
Our responsibility is to issue this Limited Assurance Report on the Selected Sustainability Information
included in the Integrated Annual Report 2024 and the 2024 GRI Content Index for the Reporting
Period, as described in the section “Subject Matter”.
Our work was carried out in accordance with the International Standard on Assurance Engagements
3000 (Revised) “Assurance Engagements Other than Audits or Reviews of Historical Financial
Information” (hereinafter “ISAE 3000”), and the terms of engagement as described in the engagement
letter dated on 16.12.2024.
The work performed relates to specific performance indicators, included in the Selected Sustainability
Information for the Reporting Period (as these are described in the section “Applicable Criteria” and in
the Appendix I) and the provision of limited assurance.
We consider that the evidence we have gathered is sufficient and suitable for the foundation and
documentation of this report.
Professional ethics and quality management
We remained independent of Coca-Cola HBC, in accordance with the ethical requirements that are
relevant to our work, which include the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the International Ethics Standards Board
for Accountants (IESBA Code) and the FRC’s Ethical Standard, as applicable to listed entities, and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
Our audit firm applies the International Standard for Quality Management (ISQM) 1 “Quality
Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance
or Related Services Engagements” and accordingly maintains a comprehensive quality management
system that includes documented policies and procedures relating to compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
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Independent Auditor’s Limited Assurance Report continued
Scope of Work
We designed and carried out our work in order to obtain the information, analysis and explanations
we deemed necessary, where available from Coca-Cola HBC’s Management, in order to assess
whether the Report has been prepared in accordance with the “Applicable Criteria”. In order to form
our conclusion, we performed the following:
i. Assessed the suitability of the Applicable Criteria in terms of their relevance, comprehensiveness,
reliability, neutrality and understandability and their consistent application.
ii. Obtained an understanding of Coca-Cola HBC’s control environment, processes and systems
relevant to the preparation of the Report. Our procedures did not include evaluating the suitability
of the design or operating effectiveness of control activities.
iii. Inspected the relevant documentation of the systems and processes for compiling, analyzing,
and aggregating data and tested such documentation on a sample basis.
iv. Obtained an understanding in relation to the existing internal processes related to application
of policies related to the sustainability information, under the scope of our engagement.
v. Inquired Coca-Cola HBC’s Departmental Managers and information owners responsible for collecting,
consolidating and calculating the Subject Matter Information in order to evaluate the appropriateness
of measurement and evaluation methods, reporting policies used and estimates made by Coca-Cola
HBC. Our procedures did not involve testing the data on which the estimates are based or separately
developing our own estimates against which to evaluate Coca-Cola HBC’s estimates.
vi. Performed analytical procedures and inspection of documents on a sample basis with respect to the
compilation and reporting of quantitative performance indicators related to the “Applicable Criteria”:
a. At Group level1, performed analytical procedures to check that underlying information was
complete and accurate, and had been appropriately evaluated or measured, recorded, collated
and reported as well as to verify the correct consolidation of the collected data
b. At the level of a representative selection of location sites2, undertook site visits at 8 plants and 7
headquarters (HQs). We selected these sites based on risk assessment procedures performed
(factors considered included indicatively inherent risk, site contribution to the consolidated
indicators, location, etc.) and performed detailed assurance procedures for all the applicable
KPIs at plant and HQ level for all selected locations. More specifically, as part of our visits, we
performed detailed tests on a sample basis, consisting of checking the correct application of
the definitions and agreeing performance indicators to or from source information to check that
the underlying subject matter was complete and accurate, and had been appropriately evaluated
or measured, recorded, collated and reported.
c. For the KPI Greenhouse Gas (GhG) emissions, verified all three inventory scopes (Scopes 1, 2
and 3) as defined by the GHG Protocol (Corporate Standard), including progress against emission
reduction targets, reported changes in emissions compared with the baseline year (2010 and
2017) and the figures for absolute emissions and emissions intensity in 2024.
vii. Performed targeted testing to select significant qualitative statements related to the
“Applicable Criteria” listed above and tested their fair statement to identify misstatements
that are material to the intended users of the subject matter information. We performed
risk-based targeted testing for any remaining qualitative statements with characteristics
of increased risk of material misstatement and evaluated remaining population not subject
to targeted testing
viii. Evaluated all environmental, social and governance disclosures, and overall presentation of
the Subject Matter Information included in the Report for the Reporting Period (as described
in the section “Applicable Criteria” and in the Appendix I)
The procedures performed in a limited assurance engagement vary in nature and timing and are less
extensive than in a reasonable assurance engagement, and accordingly, the level of assurance obtained
in a limited assurance engagement is significantly lower than the level of assurance which would have
been obtained if an assignment of reasonable assurance had been performed.
Inherent Limitations
The work performed does not provide absolute assurance that all material weaknesses related to the
accuracy and completeness of data and relevant disclosures, as these are included in the Report, will
be identified.
A material weakness exists when the design of the internal controls is not adequate and thus, does
not mitigate the risk of material deficiencies occurring without being detected in a timely manner.
Our work covered only the items listed in the “Scope of Work” paragraph to obtain limited assurance
based on the procedures included in the same paragraph. Our work does not constitute an audit or
review of historical Financial Information, in accordance with applicable International Standards on
Auditing or International Standards for the Engagement of Review Engagements, and for this reason
we do not express any assurance other than those listed in the paragraph “Scope of Work”.
1.
The Departments involved at a group level are: People and Culture Department, Legal Affairs Department (including the Risk team), Internal
Control Department, Commercial Department, Supply Chain Department (including Procurement team, Quality, Safety and Environment
team, Fleet team and Cold Drink Equipment team), Investor Relations Department and Corporate Affairs and Sustainability Department,
as well as managers from other Group functions.
2.
The manufacturing plants are located in Nigeria (Ikeja), Egypt (Qaliub), Italy (Nogara), Romania (Ploiești), Poland (Radzymin, Krakow), Greece
(Schimatari) and Russia (Moscow).
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Limited Assurance Conclusion
Based on the procedures we performed as described below in the “Scope of Work” paragraph, and
the evidence we have obtained, nothing has come to our attention that causes us to believe that:
• the indicators included in the Report for the Reporting Period, as these are described in the section
“Subject Matter”, are materially misstated;
• the Report for the Reporting Period does not meet the requirements for reporting in accordance
with the GRI Standards (2021 update).
Restrictions in Use
This Limited Assurance report, prepared as part of our work performed, is intended for the use of the
Board of Directors and Management of Coca-Cola HBC and covers only the indicated Reporting Period
as well as the abovementioned scope of work.
Athens, 14 March 2025
Fotis Smyrnis
PricewaterhouseCoopers SA
Appendix I
The provision of limited assurance concerns the following GRI indicators presented in the Integrated
Annual Report 2024 and the 2024 GRI Content Index:
Code
Description
2-1
Organizational details
2-2
Entities included in the organization’s sustainability reporting
2-3
Reporting period, frequency and contact point
2-4
Restatements of information
2-5
External assurance
2-6
Activities, value chain and other business relationships
2-7
Employees
2-8
Workers who are not employees
2-9
Governance structure and composition
2-10
Nomination and selection of the highest governance body
2-11
Chair of the highest governance body
2-12
Role of the highest governance body in overseeing the management of impacts
2-13
Delegation of responsibility for managing impacts
2-14
Role of the highest governance body in sustainability reporting
2-15
Conflicts of interest
2-16
Communication of critical concerns
2-17
Collective knowledge of the highest governance body
2-18
Evaluation of the performance of the highest governance body
2-19
Remuneration policies
2-20
Process to determine remuneration
2-21
Annual total compensation ratio
2-22
Statement on sustainable development strategy
2-23
Policy commitments
2-24
Embedding policy commitments
2-25
Processes to remediate negative impacts
2-26
Mechanisms for seeking advice and raising concerns
2-27
Compliance with laws and regulations
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Code
Description
2-28
Membership associations
2-29
Approach to stakeholder engagement
2-30
Collective bargaining agreements
3-1
Process to determine material topics
3-2
List of material topics
3-3
Management of material topics
201-1
Direct economic value generated and distributed
201-2
Financial implications and other risks and opportunities due to climate change
201-3
Defined benefit plan obligations and other retirement plans
201-4
Financial assistance received from government
202-1
Ratios of standard entry level wage by gender compared to local minimum wage
202-2
Proportion of senior management hired from the local community
203-1
Infrastructure investments and services supported
203-2
Significant indirect economic impacts
204-1
Proportion of spending on local suppliers
205-1
Operations assessed for risks related to corruption
205-2
Communication and training about anti corruption policies and procedures
205-3
Confirmed incidents of corruption and actions taken
206-1
Legal actions for anti-competitive behaviour, antitrust, and monopoly practices
207-1
Approach to tax
207-2
Tax governance, control, and risk management
207-3
Stakeholder engagement and management of concerns related to tax
207-4
Country-by-country reporting
301-1
Materials used by weight or volume
301-2
Recycled input materials used
301-3
Reclaimed products and their packaging materials
302-1
Energy consumption within the organisation
302-2
Energy consumption outside the organisation
302-3
Energy intensity
302-4
Reduction of energy consumption
Code
Description
302-5
Reductions in energy requirements of products and services
303-1
Interactions with water as a shared resource
303-2
Management of water discharge-related impacts
303-3
Water withdrawal
303-4
Water discharge by quality and destination
303-5
Water consumption
304-1
Operational sites owned, leased, managed in, or adjacent to, protected areas and
areas of high biodiversity value outside protected areas
304-2
Significant impacts of activities, products, and services on biodiversity
304-3
Habitats protected or restored
304-4
IUCN Red List species and national conservation list species with habitats in areas
affected by operations
305-1
Direct Greenhouse Gas (GHG) emissions (Scope 1)
305-2
Energy indirect Greenhouse Gas (GHG) emissions (Scope 2)
305-3
Other indirect Greenhouse Gas (GHG) emissions (Scope 3)
305-4
Greenhouse Gas emissions intensity
305-5
Reduction of Greenhouse Gas (GHG) emissions
305-6
Emissions of ozone-depleting substances (ODS)
305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
306-1
Waste generation and significant waste-related impacts
306-2
Management of significant waste-related impacts
306-3
Waste generated, Significant spills
306-4
Waste diverted from disposal
306-5
Waste directed to disposal, Transport of hazardous waste
308-1
New suppliers that were screened using environmental criteria
308-2
Negative environmental impacts in the supply chain and actions taken
401-1
New employee hires and employee turnover
401-2
Benefits provided to full-time employees that are not provided to temporary or
part-time employees
401-3
Parental leave
402-1
Minimum notice periods regarding operational changes
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Code
Description
403-1
Occupational health and safety management system
403-2
Hazard identification, risk assessment, and incident investigation
403-3
Occupational health services
403-4
Worker participation, consultation, and communication on occupational health
and safety
403-5
Worker training on occupational health and safety
403-6
Promotion of worker health
403-7
Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships
403-8
Workers covered by an occupational health and safety management system
403-9
Work-related injuries
403-10
Work-related ill health
404-1
Average hours of training per year per employee
404-2
Programs for upgrading employee skills and transition assistance programs
404-3
Percentage of employees receiving regular performance and career
development reviews
405-1
Diversity of governance bodies and employees
405-2
Ratio of basic salary and remuneration of women to men
406-1
Total number of incidents of discrimination and corrective actions taken
407-1
Operations and suppliers in which the right to freedom of association and
collective bargaining may be at risk
408-1
Operations and suppliers at significant risk for incidents of child labour
409-1
Operations and suppliers at significant risk for incidents of forced or
compulsory labor
410-1
Security personnel trained in human rights policies or procedures
411-1
Incidents of violations involving rights of indigenous peoples
413-1
Operations with local community engagement, impact assessments,
and development programs
413-2
Operations with significant actual and potential negative impacts on
local communities
414-1
New suppliers that were screened using social criteria
414-2
Negative social impacts in the supply chain and actions taken
Code
Description
415-1
Political contributions
416-1
Assessment of the health and safety impacts of product and service categories
416-2
Incidents of non-compliance concerning the health and safety impacts
of products and services
417-1
Requirements for product and service information and labelling
417-2
Incidents of non-compliance concerning product and service information
and labelling
417-3
Incidents of non-compliance concerning marketing communications
418-1
Substantiated complaints concerning breaches of customer privacy and losses
of customer data
Independent Auditor’s Limited Assurance Report continued
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Shares held by geography
28%
28%
26%
5%
13%
UK
North & Central America
Europe
Nordic
Other
Shareholder information
We take great pride in being regarded as
a transparent and accessible company in
all our communications with investment
communities around the world. We
engage with key financial audiences,
including institutional investors, sell-
side analysts and financial journalists,
as well as our Company’s shareholders.
The investor relations department
manages the interaction with these
audiences by attending investor road
shows, ad hoc meetings and investor
conferences throughout the year, in
addition to the regular meetings and
presentations held at the time of our
results announcements.
Listings
Coca-Cola HBC AG (LSE: CCH) was admitted to
the premium listing segment of the Official List
of the UK Listing Authority and to trading on the
London Stock Exchange’s main market for listed
securities on 29 April 2013. With effect from
29 April 2013, Coca-Cola HBC AG’s shares are also
admitted on the Athens Exchange (ATHEX: EEE).
Coca-Cola HBC AG has been included as a
constituent of the FTSE 100 and FTSE All-Share
Indices from 20 September 2013.
London Stock Exchange
Ticker symbol: CCH
ISIN: CH019 825 1305
SEDOL: B9895B7
Reuters: CCH.L
Bloomberg: CCH LN
Athens Exchange
Ticker symbol: EEE
ISIN: CH019 825 1305
Reuters: EEEr.AT
Bloomberg: EEE GA
Credit rating
Standard & Poor’s: L/T BBB+, S/T A2, stable
outlook
Moody’s: L/T Baa1, S/T P2, stable outlook
Share price performance
LSE:CCH
2024
2023
2022
In £ per share
Close
27.32
23.04
19.73
High
28.76
25.65
26.87
Low
21.77
19.10
14.61
Market capitalisation
(£ million)
9,894
8,457
7,235
ATHEX: EEE
2024
2023
2022
In € per share
Close
33.32
26.42
22.60
High
34.44
29.45
31.97
Low
25.77
21.78
18.00
Market capitalisation
(€ million)
12,067
9,694
8,287
Source: Bloomberg
Share capital
In 2024, the share capital of Coca-Cola HBC
increased by the issuance of 262,340 new ordinary
shares following the exercise of stock options
pursuant to the Coca-Cola HBC AG’s Employees’
Stock Option Plan.
Following the above changes, and including
11,077,797 ordinary shares held as treasury
shares, on 31 December 2024, the share capital
of the Group amounted to €2,032.1 million and
comprised 373,239,562 shares with a nominal
value of CHF 6.70 each.
On 20 November 2023, the Group announced
the launch of a share buyback programme of
up to a maximum of 18,000,000 ordinary shares
to be purchased in a manner consistent with
the Company’s general authority to repurchase
shares granted at its Annual General Meeting on
17 May 2023 and any such authority granted at its
following annual general meetings. The programme
commenced on 21 November 2023 and is expected
to run for a period of around two years. At its Annual
General Meeting on 21 May 2024, the Company’s
general authority to repurchase shares was renewed.
Major shareholders
The principal shareholders of the Group are
Kar-Tess Holding (a Luxembourg company), which
holds approximately 23%, and The Coca-Cola
Company, which indirectly holds approximately
21% of the Group’s issued share capital.
Dividends
For 2024, the Board of Directors has proposed
a €1.03 per share dividend, up 11% year on year
(€0.93 per share in 2024), representing a 45%
payout ratio. We target a payout ratio of 40-50%.
For more information on our dividend policy and
dividend history, please visit our website at www.
coca-colahellenic.com
Financial calendar
30 April 2025
First quarter trading update
23 May 2025
Annual General Meeting
6 August 2025
Half-year financial results
30 October 2025 Third quarter trading update
Corporate website
www.coca-colahellenic.com
Shareholder and analyst information
Shareholders and financial analysts can obtain
further information by contacting
Investor Relations
Tel: +30 210 618 3100
Email: investor.relations@cchellenic.com
IR website: www.coca-colahellenic.com
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Glossary of terms
Adria
Croatia, Bosnia & Herzegovina and Slovenia.
AI
Artificial Intelligence.
At-work; At-home; Out-of-home
channels
Relates to channel segmentation according to
consumption occasion and packaging size
B2B
Business-to-business.
Baltics
Estonia, Latvia and Lithuania.
Bottler; Bottling partner
Business entity that sells, manufactures and
distributes beverages of The Coca-Cola Company
under a franchise agreement.
Bottling plant
A beverage production facility, including
associated warehouses, workshops, and other
on-site buildings and installations.
Bps
Basis points: one hundredth of one percentage
point (used chiefly in expressing differences).
Business Developer
Sales person, sales force.
CAGR
Compound annual growth rate.
Capex
Gross Capex is defined as payments for purchases
of property, plant and equipment. Net Capex is
defined as payments for purchases of property,
plant and equipment less proceeds from sales
of property, plant and equipment plus principal
repayments of lease obligations. Refer also to the
‘Alternative performance measures’ section.
CDE
Cold drink equipment – a generic term
encompassing point-of-sale equipment such
as coolers (refrigerators), vending machines
and post-mix machines.
CDP
Formerly Carbon Disclosure Project, CDP is
a not-for-profit charity that runs the global
disclosure system for investors, companies,
cities, states and regions to manage their
environmental impacts (climate, water, forests).
CHP
Combined heat and power units can produce
power, heat and cooling in a combined process that
is up to 40% more efficient than separate
processes.
CO2
Carbon dioxide, a greenhouse gas.
CO2e
A carbon dioxide equivalent or CO2 equivalent,
abbreviated as CO2e, is a metric measure used to
compare the emissions from various greenhouse
gases (GHG) on the basis of their global-warming
potential (GWP), by converting amounts of other
gases to the equivalent amount of carbon dioxide
with the same global warming.
Coca-Cola HBC; CCHBC; CCH
Coca-Cola HBC AG, and, as the context may
require, its subsidiaries and joint ventures; also,
the Group, the Company.
Coca-Cola System
The Coca-Cola Company and its bottling partners
are collectively known as the Coca-Cola System.
COGS
Cost of goods sold.
Comparable adjusted EBITDA
We define comparable adjusted EBITDA as
operating profit before deductions for
depreciation and net impairment of property,
plant and equipment (included both in cost
of goods sold and in operating expenses),
amortisation and net impairment of intangible
assets, net impairment of equity method
investments, employee share option and
performance shares compensation and other
non-cash items, if any; further adjusted for
restructuring costs, acquisition, integration and
divestment-related costs or gains, the impact
from the Russia-Ukraine conflict and the
mark-to-market valuation of commodity hedging
activity. Refer also to the ‘Alternative performance
measures’ section.
Comparable EBIT
Comparable operating profit (EBIT) refers to profit
before tax excluding finance income/(costs) and
share of results of non-integral equity-method
investments, adjusted for restructuring costs,
acquisition, integration and divestment-related
costs or gains, net impairment of goodwill and
indefinite-lived intangible assets, the impact
from Russia-Ukraine conflict and the mark-to-
market valuation of certain commodity hedging
activity. Refer also to ‘Alternative performance
measures’ section.
Comparable net profit
Net profit after tax attributable to owners of the
parent adjusted for post-tax restructuring costs,
acquisition, integration and divestment-related
costs or gains, net impairment of goodwill and
indefinite-lived intangible assets, the impact
from Russia-Ukraine conflict, the mark-to-
market valuation of commodity hedging activity
and certain other tax items. Refer also to
‘Alternative performance measures’ section.
Comparable operating expenditure
Comparable operating expenditure refers to
operating expenditure adjusted for restructuring
costs, acquisition, integration and divestment-
related costs or gains, impairment of goodwill
and indefinite-lived intangible assets, the
impact from Russia-Ukraine conflict and
the mark-to-market valuation of certain
commodity hedging activity. Refer also to the
‘Alternative performance measures’ section.
Concentrate
Concentrated flavour purchased from our brand
partners to which water and other ingredients
are added to produce beverages.
Consumer
Person who may drink Coca-Cola HBC products.
CSRD
Corporate Sustainability Reporting Directive
– an EU Directive that amends the scope and
the reporting requirements of the Non-Financial
Reporting Directive (NFRD) and introduces
mandatory sustainability reporting standards;
requires all large companies to publish regular
reports on their environmental and social
impact activities.
Customer
Retail outlet, restaurant or other operation that
sells or serves Coca-Cola HBC products directly
to consumers.
DIA
Data, insights & analytics.
Dividend policy
Our Board of Directors approved an updated
dividend policy, effective from 2022, aiming to
increase dividend payments progressively, with
a medium-term target payout ratio of 40% to 50%
on comparable net profits.
DJSI
Dow Jones Sustainability Index.
ELT
Executive Leadership Team – CCHBC executive
team, including the CEO and his direct reports.
Energy Use Ratio
The KPI used by Coca-Cola HBC to measure
energy consumption in the bottling plants,
expressed in megajoules of energy consumed
per litre of produced beverage (MJ/lpb).
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Glossary of terms continued
ESG
Environment, social and governance, referring
to the three key pillars affecting the sustainability
and ethical impact of a business or company.
ESRS
European Sustainability Reporting Standards
– provides a framework for companies subject
to the CSRD to report on environmental, social
and governance (ESG) topics.
FMCG
Fast-moving consumer goods.
FTE
Fulltime equivalent, referring to a unit to
measure employed people in a way that makes
them comparable, even though they may work
different hours each week.
GDP
Gross domestic product
GHG (scope 1, 2 and 3)
Greenhouse gases. GHG inventory covers the
seven direct greenhouse gases under the Kyoto
Protocol: Carbon dioxide (CO2), Methane (CH4),
Nitrous oxide (N2O), Hydrofluorocarbons (HFCs),
Perfluorocarbons (PFCs), Sulphur hexafluoride
(SF6), Nitrogen trifluoride (NF3).Scopes refer
to the GHG Protocol categorisations: scope 1:
direct GHG emissions occur from sources owned
or controlled by the company; scope 2: indirect
GHG emissions associated with the purchase of
electricity, steam, heat, or cooling; and scope 3:
indirect emissions up and down the value chain
(raw materials, packaging materials, product
cooling, etc.).
GRI
Global Reporting Initiative, global standards
for sustainability reporting.
HoReCa
Hotels, Restaurants and Cafés – a key distribution
channel within the Out-of-home channel.
IASB
International Accounting Standards Board.
IFRS
International Financial Reporting Standards, issued
by the International Accounting Standards Board.
IIRC
The International Integrated Reporting Council,
a global coalition of regulators, investors,
companies, standard-setters, the accounting
profession and NGOs. The coalition is promoting
communication about value creation as the next
step in the evolution of corporate reporting.
IMCR
Incident Management and Crisis Resolution.
Ireland or Island of Ireland
The Republic of Ireland and Northern Ireland.
Italy
Territory we serve, excluding Sicily.
KeelClip™
Paper packaging for multi-pack cans with a central
‘keel’, that secures the pack.
KPI
Key Performance Indicator.
Litre of produced beverage (lpb)
Unit of reference to show environmental
performance relative to production volume.
LTAR
Lost Time Accident Rate
LTIFR
Lost Time Incident Frequency Rate
M&A
Mergers and acquisitions.
Market
When used in reference to geographic areas, a
country in which Coca-Cola HBC does business.
Mission 2025
2025 sustainability commitments with 17 goals.
Developed in late 2018, the goals are based on our
stakeholder materiality matrix and aligned with the
United Nations Sustainable Development Goals
(SDGs) and their targets. The six key focus areas
reflect our value chain: reducing emissions; water
reduction and stewardship; packaging; ingredient
sourcing; nutrition; and our people and
communities.
MSCI
MSCI ESG Ratings aim to measure a company’s
management of financially relevant ESG risks
and opportunities.
Multon
Multon refers to Multon Partners, our operation
in Russia since 5 August 2022.
NARTD
Non-alcoholic ready-to-drink
NED
Non-Executive Director
NetZeroby40
Our commitment to achieve net zero emissions
across our entire value chain (scope 1, 2 and 3) by
2040. The commitment was published in October
2021 and submitted to a formal approval by the
Science Based Target initiative (SBTi).
NGO
Non-governmental organisation.
NZTP; Net Zero Transition Plan:
Our plan to reduce our absolute GHG emissions
across the entire value chain (scope 1, 2 and 3) in
line with the 1.5 degree scenario.
Per capita consumption
Average number of servings consumed per person
per year in a specific market. Coca-Cola HBC’s per
capita consumption is calculated by multiplying our
unit case volume by 24 and dividing by the population.
PET
Polyethylene terephthalate, a form of polyester
used in the manufacturing of beverage bottles.
ROIC
Return on invested capital. ROIC is the percentage
return that a company makes over its invested
capital. We define ROIC as the percentage of
comparable net profit excluding net finance costs
divided by the five-quarter average capital
employed. Capital employed is calculated as the
five-quarter average net debt and shareholders’
equity attributable to the owners of the parent.
Refer also to the ‘Alternative performance
measures’ section.
rPET
rPET refers to any PET material that comes
from a recycled source rather than the original,
unprocessed petrochemical feedstock.
RTD; ARTD; NARTD
Ready-to-drink; alcoholic; non-alcoholic. Drinks that
are pre-mixed and packaged, ready to be consumed
immediately with no further preparation.
RTM
Route to Market
SAP
A powerful software platform that enables us to
standardise key business processes and systems.
SBTi
The Science Based Targets initiative is a corporate
climate action organization developing standards,
tools and guidance which allow companies to set
greenhouse gas (GHG) emissions reductions targets
in line with what is needed to keep global heating
below catastrophic levels and reach net-zero by 2050
at latest. Partner organizations who facilitated SBTi’s
growth and development are CDP, the United
Nations Global Compact, the We Mean Business
Coalition, the World Resources Institute (WRI)
and the World Wide Fund for Nature (WWF).
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SBTN
The Science Based Targets Network is a
collaboration of leading global non-profits and
mission-driven organisations working together
to equip companies as well as cities with the
guidance to set science-based targets for all
of Earth’s systems.
SDG
UN Sustainable Development Goals. On
25 September 2015, countries adopted a set
of 17 goals to end poverty, protect the planet
and ensure prosperity for all as part of a new
sustainable development agenda. Each goal
has specific targets to be achieved by 2030.
Senior leaders; senior management
Our top 300 business leaders, which includes
country function heads, Group sub-function
heads and the Executive Leadership Team (ELT),
including the CEO.
Serving
237ml or 8oz of beverage, equivalent to 1/24
of a unit case.
Socio-economic impact
In conducting socio-economic studies, we use
input-output modelling to generate estimates of
jobs supported and economic value added across
the value chain. Data we use in this process includes
our financial information (revenues, expenses,
taxes, sales volume and profits) as well as some
data from the Coca-Cola System. While rigorous,
the process involves statistical modelling, which
should be considered when interpreting and using
the results from the studies.
Modelling enables an assessment of three key
dimensions of impact:
• Direct: immediate effect in terms of
employment, wages and output
• Indirect: subsequent effect in the supply chain
• Induced: effect caused by staff spend on goods
or service
We do not conduct socio-economic studies for all
of our markets every year; studies are conducted
for each market on a rolling basis. In 2024, we
updated the studies for 18 markets, adding this
information to the aggregate results from all
socio-economic impact studies for the period
2018-2024.
Notes to the socio-economic contributions
presented on page 7 of this report:
• Numbers presented are aggregated based
on the local socio-economic studies from
Coca-Cola HBC markets published between
2018 and 2024
• All KPIs represent annual impact
• Where applicable and relevant in local socio-
economic studies, the impact of other entities
of the Coca-Cola System, supported across
the value chain, is included
• Most socio-economic studies are focused
on in-country impacts, while a few include
inter-regional spending.
Sparkling
Sparkling includes Trademark Coca-Cola, Fanta,
Sprite, Schweppes and Kinley sparkling beverages,
among others.
Sparkling beverages
Non-alcoholic carbonated beverages containing
flavourings and sweeteners, but excluding, among
others, waters and flavoured waters, juices and juice
drinks, sports drinks, ready-to-drink teas and coffee.
SSD
Sparkling soft drinks.
Still and water beverages
Non-alcoholic beverages including, but
not limited to, waters and flavoured waters,
juices and juice drinks, sports drinks and
ready-to-drink teas.
TCCC
The Coca-Cola Company and, as the context
may require, its subsidiaries.
TCFD
Task Force on Climate-related Financial Disclosures.
Tier 1 suppliers
Suppliers that directly supply goods, materials or
services to Coca-Cola HBC.
Tier 2 and Tier 3 suppliers
Suppliers that provide their products and services
through Tier 1 suppliers. They are located beyond
Tier 1 suppliers, e.g., on Tier 2, 3, or n-level of a
company’s supply chain.
TNFD
Task Force on Nature-related Financial
Disclosures: a market-led and science-
based initiative supported by national
governments, businesses and financial
institutions worldwide which developed a set
of disclosure recommendations and guidance
that encourage and enable business and finance
to assess, report and act on their nature-related
dependencies, impacts, risks and opportunities.
u.c.; Unit case
One unit case corresponds to approximately
5.678 litres or 24 servings, being a typically used
measure of volume. For Premium Spirits volume,
one unit case also corresponds to 5.678 litres.
For snacks volume, one unit case corresponds to
1 kilogram. For coffee, one unit case corresponds
to 0.5 kilograms or 5.678 litres. Volume data is
derived from unaudited operational data.
UNESDA
Union of European Soft Drinks Associations.
UNGC
The UN Global Compact: the world’s largest
corporate sustainability initiative which provides a
framework for businesses to align strategies with its
10 principles promoting labour rights, human rights,
environmental protection and anti-corruption.
Volume
Amount of physical product produced and sold,
measured in unit cases.
Value share
Percentage of total consumer spend captured by
the brand or category in question, within a defined
category or industry.
Waste ratio
The KPI used by CCHBC to measure waste
generation in its bottling plants, expressed in
grammes of waste generated per litre of produced
beverage (g/lpb).
Waste recycling
The KPI used by CCHBC to measure the percentage
of production waste at bottling plants that is
recycled or recovered.
Water footprint
A measure of the impact of water use, in
operations and beyond (upstream), as defined
by the Water Footprint Network methodology.
Includes blue, green and grey water footprint.
Water use ratio
The KPI used by Coca-Cola HBC to measure water
use in its bottling plants, expressed in litres of
water used per litre of produced beverage (l/lpb).
Working capital
Operating current assets minus operating current
liabilities excluding financing and investment activities.
#YouthEmpowered (#YE)
Flagship programme from our Mission 2025
sustainability commitments, which aims to
support young people and increase their
employability by providing modular education
of soft and/or business skills. It is delivered via
classroom sessions, virtual training, self e-learning
modules, mentoring sessions and other channels
handled locally by our markets.
Zeros
Portfolio of products which contains zero calories.
Glossary of terms continued
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Forward-looking statements
Special note regarding forward-looking
statements
This document contains forward-looking
statements that involve risks and uncertainties.
These statements may generally, but not always,
be identified by the use of words such as ‘believe’,
‘outlook’, ‘guidance’, ‘intend’, ‘expect’, ‘anticipate’,
‘plan’, ‘target’, ‘seek’, ‘estimates’, ’potential‘ and
similar expressions to identify forward-looking
statements. All statements other than
statements of historical facts, including, among
others, statements regarding the future financial
position and results; Coca-Cola HBC’s outlook for
2025 and future years; business strategy and the
effects of the global economic slowdown; the
impact of the sovereign debt crisis, currency
volatility, Coca-Cola HBC’s recent acquisitions,
and restructuring initiatives on Coca-Cola HBC’s
business and financial condition; Coca-Cola HBC’s
future dealings with The Coca-Cola Company;
budgets; projected levels of consumption and
production; projected raw material and other
costs; estimates of capital expenditure; free cash
flow; effective tax rates, and plans and objectives
of management for future operations, are
forward-looking statements.
You should not place undue reliance on such
forward-looking statements. By their nature,
forward-looking statements involve risk and
uncertainty because they reflect Coca-Cola
HBC’s current expectations and assumptions
about future events and circumstances that
may not prove accurate.
Forward-looking statements speak only as
of the date they are made. Coca-Cola HBC’s actual
results and events could differ materially from those
anticipated in the forward-looking statements for
many reasons, including the risks described in the
Business Resilience, and Principal Risks and
Opportunities sections. Although Coca-Cola HBC
believes that, as of the date of this Integrated
Annual Report, the expectations reflected in
the forward-looking statements are reasonable,
Coca-Cola HBC cannot assure that Coca-Cola
HBC’s future results, level of activity, performance
or achievements will meet these expectations.
Moreover, neither Coca-Cola HBC, nor its
Directors, employees, advisers nor any other
person assumes responsibility for the accuracy and
completeness of any forward-looking statements.
After the date of this Integrated Annual Report,
unless Coca-Cola HBC is required by law or
the rules of the UK Financial Conduct Authority
to update these forward-looking statements,
Coca-Cola HBC makes no commitment to update
any of these forward-looking statements to
conform them either to actual results or to
changes in Coca-Cola HBC’s expectations.
About our report
The 2024 Integrated Annual Report (the
‘Integrated Annual Report’) consolidates
Coca-Cola HBC AG’s (also referred to as ‘Coca-
Cola HBC’ or the ‘Company’ or the ‘Group’) UK
and Swiss disclosure requirements, while meeting
the disclosure requirements for its secondary
listing on the Athens Exchange. In addition, the
Integrated Annual Report aims to deliver against
the expectations of the Company’s stakeholders
and sustainability reporting standards, providing a
transparent overview of the Group’s performance
and progress for 2024.
Our strategy is designed to deliver sustainable,
profitable growth. This strategy is grounded in our
purpose to open up moments that refresh us all.
Our purpose is directly linked to our strategy and
the five growth pillars that guide us as we pursue
our objectives and targets. Those growth pillars are:
1. Leverage our unique 24/7 portfolio; 2. Win in the
marketplace; 3. Fuel growth through competitiveness
and investment; 4. Cultivate the potential of our
people; 5 Earn our licence to operate. The initiatives
we implemented within each of these pillars form
the basis of the narrative of the Integrated Annual
Report, which is structured around these five pillars.
The Integrated Annual Report is for the year ended
31 December 2024, and its focus is on the primary
core business of non-alcoholic ready-to-drink
beverages across the 29 countries in which we
operate. Our website and any other website
referred to in the Integrated Annual Report
are not incorporated by reference and do
not form part of the Integrated Annual Report.
The consolidated financial statements of the Group
have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by
the European Union (EU) and in compliance with
Swiss law. Coca-Cola HBC AG’s statutory financial
statements have been prepared in accordance with
the Swiss Code of Obligations. Unless otherwise
indicated or required by context, all financial
information contained in this document has
been prepared in accordance with IFRS. For
Swiss law purposes, the annual management report
consists of the sections entitled ‘Strategic Report’,
‘Corporate Governance’ (without the sub-section
‘Directors’ remuneration report’), ‘Supplementary
Information’ and ‘Glossary’.
The Group uses certain Alternative performance
measures (APMs) which provide additional insights
and understanding to the Group’s underlying
operating and financial performance, financial
condition and cash flows. A full list of these APMs,
their definition and reconciliation to the respective
IFRS measures can be found on pages 345 to 351.
The sustainability aspects of this Integrated
Annual Report comply with the requirements of the
Corporate Social Responsibility Directive (CSRD),
which mandates reporting in line with the European
Sustainability Reporting Standards (ESRS). It also
complies with the requirements for communication
on progress against the 10 Principles of the United
Nations Global Compact (UNGC), Art. 964b of
the Swiss Code of Obligations and it is prepared
in accordance with the GRI Standards (2021).
Furthermore, the Integrated Annual Report is
aligned with the principles and elements of the
International Integrated Reporting Council’s (IIRC)
framework and key indicators of the Sustainability
Accounting Standards Board (SASB). Coca-Cola
HBC supports the Task Force on Climate-related
Financial Disclosures (TCFD) and implements
the TCFD recommendations in the Integrated
Annual Report. Finally, Greenhouse gas emissions
are calculated using the GHG Protocol Corporate
Accounting and Reporting Standard
measurement methodology.
Sustainability disclosures in the Integrated Annual
Report, the Sustainability Statement and the 2024
GRI Content Index, have been prepared on a
consolidated basis, with the scope of consolidation
being the same with that of the financial
statements, and in addition, including relevant
upstream and downstream elements of the value
chain where applicable. Joint Ventures, where we
have operational control are also reported as part
of our own operations. Mission 2025 sustainability
commitments exclude Egyptian operations, as they
were not foreseen in the baseline year nor in the
target year.
As with the rest of the information provided, the
sustainability aspects of this Integrated Annual
Report cover the full year ended 31 December 2024
and the related information presented is based on
an annual reporting cycle.
Limited assurance based on ISAE 3000 (Revised) is
provided over the Sustainability Statement
prepared in accordance with the ESRS. Limited
assurance based on ISAE 3000 (Revised) is
provided over the GRI Content Index by an
independent audit firm as dictated by the
Company’s Executive Leadership Team (ELT).
We remain committed to strong corporate
governance and leadership as well as transparency
in our disclosures. We will continue to review our
reporting approach and routines, to ensure they
meet best practice reporting standards and the
expectations of our stakeholders, and provide
visibility on how we create sustainable value
for the communities we serve.
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Coca‑Cola HBC AG
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