With our company’s achievement of key 2020 sustainability targets, we conducted a comprehensive materiality study to ensure that our sustainability priorities were aligned with stakeholder expectations and what our business needs to thrive over the coming years.
Through this analysis, we developed an updated set of priorities that:
As a result of this study, we identified 45 material topics and 17 priorities that will drive strategic lines of action across our value chain to ensure the sustainability of our business, our business partners, and the communities in which we operate. Using the results of our study, we generated an updated materiality matrix, mapping the 17 identified priorities across the three pilars of our sustainability strategy.
1 | Packaging Circular Economy |
4 | GHG Emissions Reduction |
5 | Sustainable Mobility |
6 | Climate Change Adaptation |
9 | Energy Management: Renewables & Efficiency |
10 | WASH (Water Access, Sanitation, and Hygiene) |
11 | Context-Based Hydrological Safety |
17 | Water Efficiency |
26 | Industrial Waste Circular Economy |
43 | Environmentally Responsible Dairy Farming |
13 | Human and Labor Rights |
15 | Diversity and Inclusion |
16 | Safety, Health, and Wellness |
20 | Culture, Ethics, and Values |
21 | Labor Relations |
23 | Standards for Contractors |
32 | Talent Attraction |
33 | Compensation and Benefits |
44 | Training and Development |
2 | Nutritional Attributes of Product Portfolio |
7 | Product Portfolio Diversification |
8 | Relationship with Government |
12 | Consumer Engagement for Circular Economy |
14 | Supporting Small Businesses |
18 | Advertising & Commercial Practices |
19 | Women’s Empowerment |
22 | Local Community Relationships |
25 | Information Security & Cybersecurity |
28 | GMOs / Traceability of Ingredients |
29 | Digitalization in Customers |
31 | Promotion of Healthy Habits |
34 | Customer Engagement for Circular Economy |
36 | Support of Local Supply Chains |
37 | Road Safety |
38 | Information & Quality of Products |
39 | Customer Satisfaction Measurement |
40 | Quality of Service for Customers |
41 | Supplier Relationship T&Cs Management |
42 | Mechanism for Consumers to Raise Concerns |
45 | Opportunities for Youth |
3 | Global Integrity & Compliance |
24 | Best-in-Class Board Practices |
27 | Partnerships for Sustainability |
30 | Comprehensive Risk Management |
35 | Code of Conduct |
Consistent with our sustainability framework, we maintained the three pillars—Our People, Our Planet, and Our Community—that have guided us since the inception of our strategy, while reinvigorating these pillars with a differentiated approach to sustainability focusing on 10 strategic priorities throughout our value chain.
Aligned with societal expectations, stakeholder engagement, and respect for environmental boundaries, our refreshed approach to sustainability aims to simultaneously create economic and social value across our value chain in collaboration with all of our stakeholders.
Suppliers | KOF Operations | Customers | Consumers/ Communities |
|
---|---|---|---|---|
Circular Economy | Packaging Circular Economy | |||
Industrial Waste Circular Economy | Customer Engagement for Circular Economy | Consumer Engagement for Circular Economy | ||
Climate Action | GHG Emissions Reduction | |||
Sustainable Mobility | ||||
Climate Change Adaptation | ||||
Energy Management: Renewables & Efficiency | ||||
Water Stewardship | Context-Based Hydrological Safety | Wash (Water Access, Sanitation, And Hygiene) | ||
Water Efficiency | ||||
Product Portfolio | Gmo's/ Traceability of Ingredients | Nutritional Attributes of Product Portfolio | Information & Quality of Products | |
Product Portfolio Diversification | ||||
Relationship with Government | Relationship with Governments | |||
Marketing & Advertising | Advertising & Commercial Practices | |||
Supporting Small Businesses | Development of Capabilities | |||
Fundamental Working Conditions | Human & Labor Rights | |||
Safety, Health & Wellness | ||||
Enhanced Cultural Elements | Diversity & Inclusion | |||
Corporate Governance | Global Integrity & Compliance |
Our sustainability framework is based on three overarching pillars: Our People, Our Community, and Our Planet. This strategic framework provides us with the direction to accomplish our mission to positively transform the communities where we operate, supported by our ethics, values, and collaboration.
Our PeopleWe are committed to contributing to the achievement of the United Nations Sustainable Development Goals (SDGs). While many of our actions contribute to the 17 SDGs, we are convinced that we can have a larger impact on the following fourteen goals through our strategic framework and initiatives.
Our approach to sustainable financing enables us to maximize our positive impact by publicly aligning our finance strategy with the achievement of our environmental targets, while contributing to the United Nations Sustainable Development Goals.
Aligned with this approach and our sustainability strategy, we issued our first-ever green bond in September 2020, valued at US$705 million, at the time the largest for a Latin American corporation and a first for the Coca-Cola System. Subsequently, in June 2021, we released our first Green Bond Report, providing an update on the allocation of the net proceeds from this bond to finance or refinance eligible green projects in three main categories—climate action, water stewardship, and circular economy—according to our Green Bond Framework. As published in that report, we allocated US$235.48 million in net proceeds from the issuance of our first green bond to eligible green projects from 2018 through 2020, representing 33.4% of the net proceeds.
As of December 31, 2021, we had allocated US$350.12 million of green bond net proceeds to eligible green projects—including a further US$114.64 million during 2021—leaving US$354.88 million of net proceeds unallocated at the end of 2021. The total investment so far represents 49.7% of the net proceeds and includes investments in all of the three main categories of climate action, water stewardship, and circular economy.
As of December 31, 2021, Coca-Cola FEMSA had allocated US$350.12 million of green bond net proceeds to projects supporting climate action, water stewardship, and a circular economy.
US$705 Million
Green Bond Issued September 2020 US$350.12 million allocated Between 2018-2021
Spend by Year
US$ million
Spend by Category
The net proceeds of our green bond help to deliver on our company’s sustainability goals, including our commitments to increase recycled content in our PET packaging, improve water efficiency, and reduce CO2 emissions. From 2018 through 2021, we made progress against these goals, as illustrated in these charts.
Building on our sustainability strategy, in September 2021, we issued the first-ever sustainability-linked bonds (SLB) in the Mexican market for a total of Ps. 9,400 million in accordance with our Sustainability-Linked Bonds Framework. Recognizing that water is not only an invaluable resource for our company and industry, but also an indispensable element of climate change resilience, we are focusing this first issuance on the sustainable and efficient use of water, aligned with our commitment to water stewardship. Unlike the use of green bond proceeds, our sustainability-linked bonds are committed to the achievement of a water use ratio of 1.36 by 2024 and 1.26 by 2026. Today, our water use ratio is 1.47 liters, a benchmark of water efficiency for the Coca-Cola System.
Data Reported and Forecast
KPI water use ratio (lt)
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Subject to the issuance of applicable funding instruments, we will continue to annually report on the allocation of proceeds and the associated impact in the year(s) following issuance of any future funding instruments under our current Green Bond and Sustainability-Linked Bonds Frameworks.