By 2020, sustainably source our key agricultural ingredients.
On track. More than 95 percent of Coca-Cola’s coffee and tea and an estimated 54 percent of our lemon supply meets Company approved sustainable sourcing guidelines. Coca-Cola is contracted to purchase over 1 million tons of more sustainably sourced sugar in 2016.
In 2013, The Coca-Cola Company set a goal to more sustainably source 100 percent of our priority ingredients by 2020. What this means to us is Coca-Cola is purchasing ingredients from farm locations and suppliers that meet Company-approved standards, most preferably adhering to the Company’s Sustainable Agriculture Guiding Principles (SAGP), which, among other things, set standards to be met by farm suppliers for human and workplace rights, environmental protection and responsible farming management.
The key agricultural ingredients we use to produce our products are: cane and beet sugar, corn, stevia, tea, coffee, oranges, lemons, grapes, apples, mangos, pulp and paper fiber for packaging, palm oil and soy. In 2015, we made noteworthy progress in the sustainable sourcing of several commodities.
Coffee and Tea Reaching Target Early
More than 95 percent of our coffee and tea now meet one of the Company’s required sustainable sourcing standards, with the majority adhering to SAGP. This means Coca-Cola is purchasing the majority of our globally sourced coffee and tea from farm locations and suppliers that meet one of the following standards: Ethical Tea Partnership, Rainforest Alliance, UTZ, Fairtrade, SAI Platform, 4C*, or SAGP audit or validation. Both large-scale and smallholder farmers are helping us achieve our goal.
Sustainably Growing Our Juice Business
As we aim to significantly grow our global juice business by 2020, more sustainably sourcing fruit for our juice products becomes increasingly important. We are realizing progress in our fruit sourcing, in fact, an estimated 54 percent of our lemon supply meets Company approved sustainable sourcing guidelines.
Doubling the Amount of Sugar We Procure from Sustainable Sources
Through global sourcing efforts, in collaboration with bottling partners, Coca-Cola is contracted to purchase over 1 million tons of more sustainably sourced sugar in 2016. This achievement will position us at an estimated 15-20 percent toward our goal to sustainably source based on our SAGP 100 percent of our sugar by 2020. We anticipate doubling the amount of sugar we more sustainably source over the next year.
Coca-Cola’s Sustainable Agriculture Guiding Principles
Coca-Cola’s Sustainable Agriculture Guiding Principles and Criteria (SAGP) establish our framework for defining sustainable sourcing, and outline expectations for our supply chain. The SAGP consist of 15 principles and 69 criteria divided into the categories of human and workplace rights, environmental protection and responsible farming management.
Through our Supplier Engagement Program, which outlines seven stages of improvement toward reaching compliance with our SAGP, we are working with suppliers of priority ingredients to gain assurance that the practices at all of the farms that supply our ingredients meet our sustainable agriculture requirements, or will do so by 2020.
We aim to establish and maintain reliable, long-term relationships with suppliers; support the many environmental and social aspects of sustainability in communities where our ingredients are grown and processed; and accelerate progress toward our 2020 goal.
Protecting Community Land Rights
It has now been three years since we made our commitment on zero-tolerance for land grabs. As part of the rigorous value chain analysis of our human rights impacts that we undertake, land rights had surfaced as one of the risks. However, it was through Oxfam’s Behind the Brands campaign on land rights and sugar, in which we gained a greater understanding of the issue and risks. We mobilized quickly as we recognized this as a gap in our SAGP.
In 2015, we continued our work on land rights and as part of our commitment, we are undertaking 28 intensive third-party studies of our top sugar sourcing countries addressing human-rights risks in our agricultural supply chain by 2020.
To date, studies have been published in Colombia, Guatemala, El Salvador, Honduras and Brazil. These studies—on child labor, forced labor and land rights—have become an effective tool for engagement with our suppliers, bottling partners and external collaborators. Research and fieldwork is currently underway in India, Mexico and several countries in Africa. Learn more about our country studies.
* Supply that meets at 4C minimum standards scores low against SAGP criteria and is therefore required to have a plan to improve practices on a defined timetable. Coca-Cola has made the commercial decision to continue to work with smallholder farmers currently only meeting the 4C minimum threshold in its supply based on the social benefit of working with smallholder farmers, versus reallocating business to larger farmers/suppliers that could meet requirements more immediately.