coca-cola sustainability report 2011...coca-cola (japan) co., ltd., its 12 bottling partners, and...
TRANSCRIPT
Printed Edition
1
Pro�le of Coca-Cola (Japan) Co., Ltd.
Core Products
In addition to the world’s most valuable brand,* Coca-Cola, and other sparkling beverages, The Coca-Cola Company sells water, tea
drinks, juice drinks, coffee drinks, sports drinks, energy drinks, and more than 3,500 products worldwide, making The Coca-Cola
Company the world’s largest soft drink company, delivering more refreshment to consumers than anyone else.
* Interbrand Best Global Brands 2010
Coca-Cola (Japan) Company, Limited was established in 1957 as the Japanese subsidiary of The Coca-Cola Company (headquarters: Atlanta, Georgia, USA), marking the beginning of full-fledged operations in Japan. Originally incorporated as Nihon Inryo Kogyo K.K., the company name changed to Coca-Cola (Japan) Company, Limited in 1958 and has been retained to this day.
Overview of Coca-Cola (Japan) Co., Ltd.
The Coca-Cola Company
Ove
rvie
w o
f C
oca
-Co
la (J
apan
) Co
., Lt
d.
Coffee
Sports drinks Tea
Active lifestyle beveragesWater JuiceEnergy drinks
Name Coca-Cola (Japan) Company, Limited Capital 3.6 billion yen
Shareholder The Coca-Cola Export Corporation(Wholly-owned subsidiary of The Coca-Cola Company)
Employees 496 (as of April 1, 2011)
Plant Moriyama Plant (49 Amura-cho, Moriyama City, Shiga Prefecture)
Business Manufacture and sales of soft drinks
Established June 25, 1957 as Nihon Inryo Kogyo K.K.Changed name to Coca-Cola (Japan) Co., Ltd.on March 15, 1958
Head of�ce 4-6-3 Shibuya, Shibuya-ku, Tokyo, Japan 150-0002TEL: +81-3-5466-8000 (main line)URL: http://cocacola.co.jp
Representative Daniel H. Sayre (Representative Director and President)
The Coca-Cola system in Japan presents a wide line-up of more than 170 products in eight categories, such as sparkling beverages, in order
to meet the diversified needs of our consumers.
Sparkling beverages
Community
Workplace
Environment
Marketplace
2
This report conveys to our shareholders the Coca-Cola system’s approach
to sustainability and discloses information about the CSR efforts of
Coca-Cola (Japan) Co., Ltd., its 12 bottling partners, and other affiliated
companies that make up the Coca-Cola system in Japan. The report is
compiled according to the framework of “Live Positively,” the business
guiding principle adopted by the Coca-Cola system worldwide. For more on
the business operations and CSR of individual bottling partners across
Japan, please refer to their respective websites and issued reports (see p. 4).
Online edition/printed editionThe Coca-Cola Sustainability Report 2011 is released in a printed edition and an
online edition. The printed edition is a compact version of the report of the particular
Coca-Cola system activities in 2010 that we would like to share with our stakeholders.
Meanwhile the unabridged online edition provides more detailed and specific
information (Japanese only).
Referenced guidelines Global Reporting Initiative’s Sustainability Reporting Guidelines (Version 3.0)
Japanese Ministry of the Environment’s Environmental Reporting Guidelines
(2007 edition)
Period coveredAs a general rule, activities described in this report took
place between July 2010 and June 2011.
Data is for the period from January 1 to December 31, 2010.
Boundary of the report Data presented in this report, relating to production,
distribution/transportation, and sales, was collected from
Coca-Cola (Japan) Co., Ltd. (one plant) and 12 bottling
partners (28 plants and 466 sales offices; according to
2010 data). The sales figures presented are for reference
purposes only.
Terminology The term “consumers” is used in this report to refer not
only to those who purchase Coca-Cola system products
but also to people in general.
“The Coca-Cola Company” refers to the headquarters in
the United States; “Coca-Cola (Japan) Co., Ltd.” or
Coca-Cola Japan refer to Coca-Cola (Japan) Company,
Limited; the term “bottling partners” refers to the 12
bottling companies Coca-Cola Japan has designated;
and “the Coca-Cola system” includes Coca-Cola Japan,
our bottling partners and other affiliated companies.
1 Overview of Coca-Cola (Japan) Co., Ltd.
2 Contents/Editorial Policy
3 The Coca-Cola System in Japan
5 Message from the President
7 CSR Framework of the Coca-Cola System—“Live Positively”
9 Lead Special Feature: Response to the Great East Japan Earthquake
11 2010 Activities Report
15 2010 Activities Report
21 2010 Activities Report
23 2010 Activities Report
25 Management Systems
27 The Coca-Cola System Worldwide
Editorial Policy
ContentsSustainability Report 2011
Co
ntents/Ed
itorial P
olicy
Delivery trucks
Approx. 7,500
Established in January 1993, fully-funded by The Coca-Cola Company. The company has been providing product development and technological support that meet the regional needs of Asia since becoming an independent company in 1995 af ter sepa ra t i ng f rom the t echno log i ca l development division centered in the US headquarters.
Established in January 2009 through a joint investment between The Coca-Cola Company and all of the bottling partners in Japan. It is responsible for business consulting for the Coca-Cola system in Japan, the development of information systems to support such consulting, as well as related general maintenance and administrative work. The company also conducts joint procurement of ingredients and raw materials.
Established in January 2007 as a joint investment between Coca-Cola Japan and all of its bottling partners. It serves as the centra l point of contact for bus iness negot ia t ions w i th ma jor national distribution chains.
Established in May 2001 as a joint investment between Coca-Cola Japan and a l l o f i ts bott l ing partners. I t conducts sales in the vending machine bus iness to corporat ions whose territories cover a wide area.
Coca-Cola (Japan) Co., Ltd. Bottling Partners / Af�liates
Coca-Cola Tokyo R&D Co., Ltd.
Coca-ColaBusiness Services Co., Ltd.
Coca-Cola CustomerMarketing Co., Ltd. FV Corporation K.K.
Planning R&DConcentrate
manufacturing ProductionDistribution/
Transportation Sales Collection Recycling
Total employees
Approx. 35,000
System Overview
Af�liates
17
Plants
29Including
the Moriyama Plant(manufacturing
concentrates)
Vending Machines
Approx.
980,000
Sales Of�ces
466
Retail outlets
980,000
Sales routes
Approx.
9,300
(Data from 2010)
concentrates)
The Coca-Cola system in Japan comprises Coca-Cola
Japan, which supplies concentrates, plans and develops new
products, and conducts advertising and marketing activities;
our bottling partners, which manufacture and sell products
and other affiliated companies.
At Coca-Cola Japan, we not only provide concentrate to
all of our bottling partners across Japan (primarily through the
Moriyama Plant), we also understand the Japanese market
and design and lead the execution of marketing strategies
based on analysis of our customers and consumers. We
also take responsibility to ensure global quality standards,
support technology development for production processes
and production technologies when introducing new products,
forecast supply and demand, offer technical advice on
products, and provide support to bottling partners so that they
can efficiently produce high-quality, safe and reliable products.
Bottling partners and affiliates engage in transportation,
distribution and sales activities, including the manufacturing of
products at 28 plants across Japan.
In the Coca-Cola system, Coca-Cola Japan and other
members of the system forge strong partnerships and
collaborate closely in their business activities. We seek further
growth by optimizing our overall operations, including more
efficient production, a thorough consumer-oriented approach,
faster response to market preferences, enhanced customer
services, and rigorous quality control.
The Coca-Cola System in Japan
Approx. 1.13 million
The
Coc
a-C
ola
Sys
tem
in J
apan
3
1
2
3
45
6
7
8
9
10
11
12
12bottling partners
in Japanare operating
business in their respective regions
Bottling Partners
1 Hokkaido Coca-Cola Bottling Co., Ltd. Hokkaidohttp://www.hokkaido.ccbc.co.jp
2 Michinoku Coca-Cola Bottling Co., Ltd. Iwate, Akita, Aomorihttp://www.michinoku.ccbc.co.jp
3 Sendai Coca-Cola Bottling Co., Ltd. Miyagi, Fukushima, Yamagatahttp://www.sendai.ccbc.co.jp
4 Tone Coca-Cola Bottling Co., Ltd. Chiba, Ibaraki, Tochigihttp://www.tone.ccbc.co.jp
5
Tokyo Coca-Cola Bottling Co., Ltd. Tokyohttp://www.tokyo.ccbc.co.jp
6
Mikuni Coca-Cola Bottling Co., Ltd. Saitama, Gunma, Niigatahttp://www.mikuni-ccbc.co.jp
7 Coca-Cola Central Japan Co., Ltd. Kanagawa, Shizuoka, Yamanashi, Aichi, Gifu, Miehttp://www.cccj.co.jp
8 Hokuriku Coca-Cola Bottling Co., Ltd. Toyama, Ishikawa, Fukui, Naganohttp://www.hokuriku.ccbc.co.jp
9 Shikoku Coca-Cola Bottling Co., Ltd. Kagawa, Ehime, Kochi, Tokushimahttp://www.shikoku.ccbc.co.jp
10 Coca-Cola West Co., Ltd.
Fukuoka, Osaka, Shiga, Nara, Wakayama, Kyoto, Hyogo, Okayama, Tottori, Hiroshima, Shimane, Yamaguchi, Saga, Nagasaki
http://www.ccwest.co.jp
11 Minami Kyushu Coca-Cola Bottling Co., Ltd. Kumamoto, Kagoshima, Miyazaki, Oitahttp://www.minami-kyushu.ccbc.co.jp
12 Okinawa Coca-Cola Bottling Co., Ltd. Okinawahttp://www.okinawa.ccbc.co.jp
The Coca-Cola system continually strives to contribute to the building of a sustainable society through the business activities of the entire
system. For information on the initiatives of each bottling partner nationwide, please refer to their respective websites or CSR reports
(Japanese only).
Bottling Partners Territories
CSR Reports of Each Bottling Partner
Coca-ColaCentral Japan Co., Ltd.
Sendai Coca-ColaBottling Co., Ltd.
Shikoku Coca-ColaBottling Co., Ltd.
(Company Profile)
Tone Coca-ColaBottling Co., Ltd.
Coca-ColaWest Co., Ltd.
Mikuni Coca-ColaBottling Co., Ltd.
Minami Kyushu Coca-ColaBottling Co., Ltd.
Tokyo Coca-ColaBottling Co., Ltd.
Okinawa Coca-ColaBottling Co., Ltd.
Hokkaido Coca-ColaBottling Co., Ltd.
Hokuriku Coca-ColaBottling Co., Ltd.
(Company Profile)
The Coca-C
ola System
in Japan
4
Mes
sage
fro
m t
he P
resi
den
t
Allow me to express my heartfelt sympathy to all who
were affected by the Great East Japan Earthquake that
rocked Japan on March 11. This event had an enormous
impact on everyone. Since the disaster began to unfold, the
Coca-Cola system in Japan has pulled together and devoted
all its energy to addressing the needs and challenges of
northeast Japan. First, as emergency aid we donated money
and gave as many as 7.2 million bottles1 of soft drinks as
a free service from vending machines and through other
channels, dispatched volunteer employees to the disaster
zone, and on March 24 established the Coca-Cola Japan
Reconstruction Fund. With this fund we will support the
recovery and reconstruction of educational facilities, and carry
out activities—some intangible—necessary to rebuild the lives
of children who have suffered.
In my numerous visits to devastated communities, I have
come to express the commitment that I strongly feel we
should take as a private company with the acronym “ADD.”
ADD states that we have the responsibility to Accelerate our
corporate activities, be Decisive, and act with Determination
to address the challenges of reconstruction. It also means
that we must “add” new innovations to the way we build
new lives. The commitment must be made not within a two-
or three-month time frame, but with a long-term view. If by
quickly regaining “the breath of life” the Tohoku region could
spur economic activity and rebuild from the disaster in a
positive way, I believe—and I expect—corporate investment
activities in general will also be revived.
The Coca-Cola system has two major assets: the fact that
it operates its business locally in the areas struck by disaster,
and its global network. Taking advantage of our unique
position, we are determined to pour 150% of our energy into
supporting the reconstruction.
Efforts like these in response to the Great East Japan
Earthquake reflect the attitude of “Live Positively,” the
Specifically, we aim to make positive contributions in
seven core areas, including Beverage Benefits, Energy and
Climate, and Community. In 2010, we experienced success
across each area. For example, one area that has seen
sweeping progress is energy use in vending machines.
Not only are we using LED lighting, we also have installed
vending machines that use solar power, thus eliminating
electricity consumption at night,2 and have experimentally
introduced vending machine models with “green roofs.”
We also have set a target to make all vending machines
HFC-free by 2020. Amidst concern over the shortage of
power in post-disaster Japan, we will ramp up our effort
to make vending machines energy efficient, an initiative we
have long pursued with an aim to mitigate the effects of
global warming and reduce electricity use.
We are also trying to use fewer resources. Packaging for
I LOHAS, a mineral water brand that comes in Japan’s
lightest bottle,3 was a Silver Winner in the 23rd DuPont
Awards for Packaging Innovation hosted by DuPont, a US
chemical company. Additionally, as the first attempt of its
kind in the global Coca-Cola system, in 2011 we introduced
a new production line at Hokuriku Coca-Cola Products’
Tonami Plant that uses an electron beam steri l ization
mechanism. This is a truly revolutionary system from the
perspective of energy and resource conservation in that it
can sterilize bottles without using water or chemicals. We
plan to gradually transfer this technology as a best practice
to other countries, a development we can all really look
forward to.
Of course, meeting the diversifying needs of consumers
and supplying valuable beverage products is one of our
biggest social responsibilities. In response to a growing
health consciousness among consumers in recent years, our
efforts have particularly focused on the development of
zero-calorie and low-calorie products, which now occupy a
major portion of our product lineup. We will continue to
actively develop and sell products with “value” to contribute
as a beverage company to the posi t ive l i festy les of
consumers.
Lastly, to promote the “Live Positively” principle, it is
necessary that the people who conduct our operations
understand what it means. As a part of our awareness
deve lopment act i v i t i es fo r employees, in 2010 we
established the “Live Positively Award.” This award honors
employees who have contributed to any of a number of
areas, including product development, marketing, the
environment, and the workplace. We hope to use this
program to motivate our employees to do more under “Live
Positively.”
Through sparkling beverages, we will contribute to the
development of sustainable communities where everyone
can live happily. To accomplish this mission, all of us at the
Coca-Cola system in Japan will work as one team toward a
variety of initiatives in our business.
1. Based on 500ml PET bottles2. See notes on p. 17 for nighttime lighting conditions (theoretical values) that
enable solar-powered lighting3. As of December 2010; based on research by Coca-Cola Japan
The Coca-Cola System is Moving Forward to Build Sustainable Business Growth and Sustainable Communities
Message from the President
Moving Forward with “ADD”
Live Positively—The Guiding Principle for the Coca-Cola System’s Global Business
For Positive Change
guiding principle for the Coca-Cola system’ s global
business. Our aim as the Coca-Cola system is to make a
posi t ive contr ibut ion to the community through the
manufacture and sale of soft drinks. By doing so, we
achieve both company growth and the sustainable growth
of society. We believe this to be the core of our corporate
social responsibilities (CSR) at the Coca-Cola system. As
we conduct business activities all over the world according
to the 2020 Vis ion, a long-term business roadmap,
practicing “Live Positively” is also necessary for growing our
business sustainably over the long term.
5
Daniel H. Sayre
Representative Director and President
Coca-Cola (Japan) Company, Limited
Message from
the Presid
ent
6
Specifically, we aim to make positive contributions in
seven core areas, including Beverage Benefits, Energy and
Climate, and Community. In 2010, we experienced success
across each area. For example, one area that has seen
sweeping progress is energy use in vending machines.
Not only are we using LED lighting, we also have installed
vending machines that use solar power, thus eliminating
electricity consumption at night,2 and have experimentally
introduced vending machine models with “green roofs.”
We also have set a target to make all vending machines
HFC-free by 2020. Amidst concern over the shortage of
power in post-disaster Japan, we will ramp up our effort
to make vending machines energy efficient, an initiative we
have long pursued with an aim to mitigate the effects of
global warming and reduce electricity use.
We are also trying to use fewer resources. Packaging for
I LOHAS, a mineral water brand that comes in Japan’s
lightest bottle,3 was a Silver Winner in the 23rd DuPont
Awards for Packaging Innovation hosted by DuPont, a US
chemical company. Additionally, as the first attempt of its
kind in the global Coca-Cola system, in 2011 we introduced
a new production line at Hokuriku Coca-Cola Products’
Tonami Plant that uses an electron beam steri l ization
mechanism. This is a truly revolutionary system from the
perspective of energy and resource conservation in that it
can sterilize bottles without using water or chemicals. We
plan to gradually transfer this technology as a best practice
to other countries, a development we can all really look
forward to.
Of course, meeting the diversifying needs of consumers
and supplying valuable beverage products is one of our
biggest social responsibilities. In response to a growing
health consciousness among consumers in recent years, our
efforts have particularly focused on the development of
zero-calorie and low-calorie products, which now occupy a
major portion of our product lineup. We will continue to
actively develop and sell products with “value” to contribute
as a beverage company to the posi t ive l i festy les of
consumers.
Lastly, to promote the “Live Positively” principle, it is
necessary that the people who conduct our operations
understand what it means. As a part of our awareness
deve lopment act i v i t i es fo r employees, in 2010 we
established the “Live Positively Award.” This award honors
employees who have contributed to any of a number of
areas, including product development, marketing, the
environment, and the workplace. We hope to use this
program to motivate our employees to do more under “Live
Positively.”
Through sparkling beverages, we will contribute to the
development of sustainable communities where everyone
can live happily. To accomplish this mission, all of us at the
Coca-Cola system in Japan will work as one team toward a
variety of initiatives in our business.
1. Based on 500ml PET bottles2. See notes on p. 17 for nighttime lighting conditions (theoretical values) that
enable solar-powered lighting3. As of December 2010; based on research by Coca-Cola Japan
CSR of the Coca-Cola
system
Consumers
Share owners/Investors
Employees Business partners
Community
Marketplace
Beverage Bene�ts Active Healthy Living
Water Stew
ardship
Com
mun
ityCo
mm
unity
Lega
l Com
plia
nce
Corporate Governance
Environment
Sustainable PackagingEnergy and Climate
Workp
lace
Workp
lace
7
CSR Framework of the Coca-Cola System
Utilizing local resources and produced by local manufacturers,
Coca-Cola system products are delivered to our consumers in
over 200 countries, with 1.7 billion servings* of Coca-Cola system
products consumed every day. In the Coca-Cola system, we
believe that it is only possible to engage in sound and sustainable
business activities when society itself is healthy and sound and
we regard efforts towards Corporate Social Responsibility (CSR)
as a “community license” necessary for engaging in business
activities. Throughout our business operations, we have
established the global guiding principle, “Live Positively,” as we
aim to develop a sustainable society. “Live Positively” is the
essence of CSR in the Coca-Cola system.
* The amount of Coca-Cola system products consumed worldwide when one serving is approximately 237ml
Coca-Cola System Business Activities
Stakeholders
CS
R F
ram
ewor
k of
the
Coc
a-C
ola
Sys
tem
—“L
ive
Pos
itive
ly”
Marketplace
Environment
Community
Workplace
8
CS
R Fram
ework of the C
oca-Cola S
ystem—
“Live Positively”
“Live Positively” divides business activities into seven core areas within four domains—“Marketplace,” “Environment,” “Community,” and
“Workplace”
Areas to prioritize in their respective domains Relevant pages
4 Domains and 7 Core Areas
“Live Positively”4 Domains and 7 Core Areas
At The Coca-Cola Company, we spent three years formulating
an overview of “Live Positively” for three years before its
introduction. The first step was to inventory all the activities of the
Coca-Cola system. For example, the “Environment,” which is one
of the key domains of the system’s sustainability efforts, has had
specific goals set for “Energy and Climate,” “Sustainable
Packaging,” and “Water Stewardship” so that our performance in
each priority area can be observed independently, and so that the
impact of business activities can be minimized. In this way we
extracted all of the issues related to our business activities and
shaped the “Live Positively” platform. It was designed to convey
our ideas and create dialogue with all of our stakeholders,
including our employees.
Beverage Bene�tsTo deliver safe products that satisfy the various needs of consumers, which include refreshment, rehydration, nutrition, and enjoyment, we spare no effort in acquainting ourselves with consumers in order to better understand their interests and concerns.
Active Healthy LivingWe provide information to help consumers lead active, healthy lifestyles and further encourage their active lifestyles through sponsorship of both international and local community events.
Energy and ClimateGlobal warming and other aspects of climate change are potentially very harmful to communities around the world. We will work to lessen the impact of CO2 and other greenhouse gases by curbing emissions from our business activities.
Sustainable PackagingWe will continue to pursue innovative technologies that will help minimize the utilization of natural resources for packaging. We are also building systems to reuse recycled packaging materials in the manufacturing process.
Water StewardshipWe will reduce the amount of water used in production, recycle water used in manufacturing, and return it safely to the environment. Our goal is to replenish as much water as we use for our products.
CommunityWe value our ties with local communities and have an obligation to satisfy local needs. Our business will not grow unless the surrounding communities are also robust.
WorkplaceWe aim to provide workplaces that allow all the people involved in our business to work in diverse and open environments. We will foster environments allowing each individual to perform to the best of their individual abilities.
pp. 11–14
pp. 15–20
pp. 21–22
pp. 23–24
Development Process of the 4 Domains and 7 Core Areas
The Great East Japan Earthquake of March 11 caused severe damage over a wide area around the Tohoku and Kanto areas, including
Coca-Cola system plants and business offices. In the period following the earthquake, there were difficulties in providing a stable supply
of products and other harsh business conditions, limiting business activities. However, we utilized our network as a global corporation
in this time of emergency to carry out our mission as a soft drink manufacturer, providing safe and reliable products. We also took the
lead in responding to the electrical shortages resulting from the earthquake through our energy conservation measures. Through such
initiatives, and led by a strong commitment to demonstrate our stewardship as a leading company, the whole Coca-Cola system, both
inside Japan and out, came together and worked as one.
President
IMCR members
Bottling partners
IMCRcoordinator
President Management executives
Initial Assessment Team(Collect information and assess the risk)
IMCR Committee
Response to the Great East Japan Earthquake
Immediately after the Great East Japan Earthquake,
Coca-Cola Japan convened an Incident Management & Crisis
Resolution (IMCR) committee, composed of members from our
crisis management, legal, quality control, and public affairs and
communications functions. This committee immediately engaged
in disaster response in accordance with the global Coca-Cola
system IMCR program and business continuity process. They
coordinated after the earthquake with bottling partners in
disaster-struck areas, confirming the safety of employees and the
extent of damage to plants and business offices, simultaneously
engaging in Coca-Cola system disaster response and business
recovery. In order to respond to the societal demands for a soft
drink manufacturer in times of emergency, they also coordinated
with national and local governments, authorities, and industry
groups, supplying beverages to disaster regions and swiftly
deciding on power conservation measures. With the cooperation
of Coca-Cola system companies and customers, they speedily
implemented a wide range of response measures.
The Coca-Cola system’s Business Continuity Management
System uses strategic, comprehensive, standardized processes,
shared by all system companies in the world, to make preparations
for the handling of business suspension, interruption, or loss
due to managerial environment factors, and to securely restore
operations. In the case of the Great East Japan Earthquake,
Coca-Cola Japan’s management executives, the IMCR Committee,
and the presidents of bottling partners used these processes to
decide important items related to the business continuity of the
Coca-Cola system, bringing about a rapid business recovery.
The Business Continuity Plan (BCP), part of this Business
Continuity Management System, is defined based on a framework
design to enable the identification and resolution of business risks,
the minimization of the effects of business interruption, and the
promotion of recovery to regular operation levels.
Business Continuity Management System Framework
Great East Japan Earthquake IMCR Organization Chart
IMCR
(implementation ofresponse plan)
Minutes/hours Hours/days Days/weeks/months
Restoration Recovery
Product safety(radiation issues)
Communication(Employees/media)
Support for affectedbottling partners
Support foraffected regions
Powerconsumption
reduction
Productsupport
Product supply/product related
facility restoration
Ordered, efficient processes
IMCR Committee
* The IMCR committee participated in the Task Force for some issues
Task Force
Plan
Recognition of and alignment with important crisis processes
Recognition of necessary resources
Formulation of disaster response options
Response to interruption via IMCR and BCP
Restoration of standard business operations
Review to make improvements
Business continuity management approach
Crisis SituationOccurs
Coca-Cola (Japan) Co., Ltd.
Lead Special Feature
9
Great East Japan Earthquake Crisis Management Structure and Emergency Response
Coca-Cola System Business Continuity Management System
(implementation of plan for recovery to
standard operations)
(implementation ofrestoration plan)
Response
Lead
Sp
ecia
l Fea
ture
: Res
pon
se t
o th
e G
reat
Eas
t Ja
pan
Ear
thq
uake
Disaster Relief Vending Machine Operations
Reduction in Energy Usage by Vending Machines during Summer Peak Season
The Coca-Cola system in Japan, as part of its
implementation of business field-related philanthropic efforts,
has been proactively engaged in entering disaster relief
support agreements with local governments to assist in
supplying beverages in the event of disasters. By the end of
May 2011, 1,054* agreements have been reached nationwide.
In accordance with these agreements, disaster relief vending
machines, which convey information in the event of a disaster
as well as ensure a supply of beverages, have been installed.
As of the end of May 2011 approximately 6,000* of these
disaster relief vending machines had been installed across
Japan. These disaster relief vending machines are noteworthy
for their ability to display disaster related information on digital
displays in the event of an emergency, and to offer their
contents free of charge when instructed to do so remotely.
After the Great East Japan Earthquake, approximately 400
of these vending machines went into emergency operation,
offering over 88,000 products free of charge as of May 27.
* Including agreements with prefectures, cities, towns, and villages
As part of the Coca-Cola system in Japan’s global warming
mitigation and energy consumption reduction measures, the
system has continually and proactively engaged in the
development and installation of environmentally friendly vending
machines.
With the summer electrical shortages caused by the Great
East Japan Earthquake, the system has decreased power
consumption for its vending machines in areas serviced by The
Tokyo Electric Power Company Co., Inc. and Tohoku Electric
Power Co., Inc., in close cooperation with customers. These
energy saving measures cut off the cooling functions of vending
machines on a rotating schedule, which allows the vending
machines to continue to offer beverages for fluid replenishment,
while cutting electrical consumption during peak hours.
10
Making adjustments to vending machines in order to reduce power consumption during the summer peak period
Emergency imports of drinking water (soft water) from Coca-Cola Korea
In response to the Great East Japan Earthquake, the
Coca-Cola system in Japan, consisting of Coca-Cola Japan, 12
bottling partners and other affiliated companies, used the full
extent of the system’s capabilities and network in order to carry
out their responsibilities as a soft drink manufacturer, dedicating
themselves to producing and shipping beverages to disaster
regions, and restoring business operations.
As a first step in restoring business operations, unflagging
efforts began immediately after the earthquake towards the
restoration of plants in disaster affected regions. Manufacturing
was resumed in Tohoku and Kanto area plants by April 22, ahead
of schedule. This provided a boost to the restoration of stable
product supply capabilities, and in addition to enhancing our
beverage manufacturing capabilities for disaster regions, it made
it possible to reestablish a system capable of handling market
needs during the summer, the system’s peak-season, from an
early stage. Furthermore, in May, additional aseptic filling lines
began operations at the Hokuriku Coca-Cola Products Tonami
plant earlier than scheduled, further strengthening the system’s
additional water production framework.
Concurrent with these efforts to shore up the supply structure
within Japan, Coca-Cola Japan coordinated with the global
Coca-Cola system and authorities and industry groups within
Japan as it dedicated its efforts to supplying products. In
response to the sudden rise in demand for water products
caused by the disaster, The Coca-Cola Company, headquartered
in the United States, and Coca-Cola Korea exported drinking
water (soft water) to Japan, supplying it free of charge in disaster
regions and selling it in other markets.
When pressures were placed on the PET resin cap supply by
the disaster, the Coca-Cola system supported a policy taken up
by Japan Soft Drink Association and switched to uniform white
caps for its products packaged in PET bottles as a move to help
raise production volume.
Securing a Product Supply Structure that Responds to Market Needs
Great East Japan Earthquake Related Vending Machine Initiatives
Lead S
pecial Feature: R
esponse to the G
reat East Jap
an Earthq
uake
11
Fundamental Approach to Beverage Bene�ts
We are dedicated to responding to diversifying consumer lifestyles and providing a full range of high quality products consumers can choose to �t any drinking occasion. In order to support the healthy lifestyles of our consumers, we take a proactive approach to providing beverage product information and promoting awareness.
In 2010, our product lineup was made even richer, with the launch of new concept brands such as OLO OLO and Minute Maid goonew, alongside our core brands, such as Coca-Cola, to match the lifestyles, tastes, and preferences of our consumers. With regards to product quality, through each stage of our product lifecycles, from raw material procurement and production to distribution/transportation, and sales, we have striven, with the collaboration of our business partners, to ensure product safety. We have also, through initiatives such as our partnership in the FIFA World Cup and our hydration and nutritional education publicity activities, proactively engaged in increasing awareness of active, healthy lifestyles.
2010 Act iv i t ies Report
Basic Aims for the Marketplace
Review of Achievements in 2010
Coca-Cola system operations have spread throughout the
world, together with our desire to offer great tasting that are
perfect for anyone, anytime, anywhere. That desire has been
carried on since the birth of Coca-Cola, 125 years ago, spanning
national and cultural borders. The Coca-Cola system in Japan
currently carries over 170 products, for any consumer’s lifestyle
or preference, in a broad range of product categories, such as
sparkling beverages and still beverages such as coffees, teas,
sports drinks, waters, and fruit juice drinks. In 2009, we added a
Beverage Bene�ts
A Diverse Line-Up, Providing What Consumers Want to Drink
new category, which transcends former category lines—the
“active lifestyle beverages” category.
Marketplace
Coffee Tea WaterSports drinksSparklingbeverages
Coca-Cola was born in Atlanta, Georgia, in the United States, in 1886. This year marks its 125th anniversary. Throughout its history, Coca-Cola has not been merely a soft drink, but has been intricately tied to music, art, sports, and more, bringing people around the world refreshment and hydration, and providing them with breaks, putting a smile on their face, and making them feel happy and optimistic. Coca-Cola has always kept abreast of the constantly changing tastes of people and society, evolving alongside them. It will continue to carry on this corporate DNA, replenishing people’s lives and creating new value.
In Focus
125 Years of Sharing Happiness
Our activities are based on using rigorous quality management to provide high quality products consumers can rely on. Our
desire is to provide a range of value to consumers’ lives, from functional value, such as proper hydration through our products,
to emotional value, through the happiness and refreshment we offer. The Coca-Cola system in Japan currently carries more than
170 products, and we are always attuned to our consumers, seeking out innovative new value while continuing to devote our
energy to satisfying our consumers’ needs, in order to achieve sustainable corporate growth.
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Website
STAKEHOLDER MESSAGE
*
12
ThinkProviding Beverage Product Information and Promoting Awareness
Active Healthy Living
Having a correct understanding of hydration is an important part of fitness management, but there are still few opportunities to acquire accurate knowledge. I believe that it is very important that we create an environment where a correct understanding of hydration is not limited to athletes, for which personal management is essential in order to improve their performance level, but also for members of the general public. From that perspective, I think that companies engaging in clearly conveying information about hydration is beneficial for society.
Athletes and members of the general public need different functions and qualities from their sports drinks, but I hope that as the ties between the sports field and companies grow stronger through these hydration awareness promotion initiatives, they will result in the further evolution of sports drinks.
Haruyasu KatoDoctor of MedicineAssociate Professor, Department of Sports Wellness, College of Community and Human Service, Rikkyo UniversityOf�cial Sports Doctor, Japan Sports Association
As a manufacturer of soft drinks, proposing healthy lifestyles and well-being of our consumers, the Coca-Cola system
places heavy emphasis on providing beverage product related information, promoting awareness of nutritional education and
proper hydration by beverages, and promoting active, healthy lifecycles through sports. The system is proactive in carrying out
initiatives targeted at each of these.
Fundamental Approach to Active Healthy Living
The Coca-Cola system in Japan offers information regarding
product ingredients mainly on its product packaging and through
its websites, frequently making improvements in order to better
convey this information to consumers.
We strive to promote a more accurate
understanding of hydration, one of the
major roles of soft drinks, through
communications via our Aquarius sports
drink,* as well as our holding of hydration
seminars directed at physical trainers
and the media, and lectures directed at
our employees.
DrinkProviding Products that Meet Consumers’ Needs
The Coca-Cola system in Japan provides a rich lineup of
products, which incorporate various measures for supporting the
active, healthy lifestyles of consumers through each step of the
product cycle, from product concept to ingredients, soft drink
production, and sales.
The Coca-Cola system offers an extensive lineup of products
that meet the tastes and health preferences of consumers,
including well-known products such as Fanta and Qoo, in
addition to our leading brands:
Coca-Cola, which has never
contained preservatives or artificial
flavorings, Coca-Cola zero, with
zero sugar, preservatives, or
artificial flavorings content, and
Coca-Cola zero free, which offers
the same features, without
caffeine.
MovePromoting Active, Healthy Lifestyles through Sports
Nutritional information on packaging,
here shown on a Coca-Cola product
http://c.cocacola.co.jp/aquarius/nande/
The Coca-Cola system in Japan, as a company that promotes
active, healthy lifestyles, is proactive in holding and sponsoring
sporting events in Japan. We are longstanding official partners in
sporting events, from global events such as the Olympic Games,
the FIFA World Cup, and the Special Olympics, which offer
opportunities for those with intellectual disabilities to present the
results of their sports training, to professional sports inside
Japan, such as the Japan Professional Football League (J.
League), and Nippon Professional Baseball (NPB). We have also
offered support for the Japan U-12 Football Championship and
the All Japan High School Athletic Meet, and, through the Japan
Unicycling Association, support not only for sports, but for the
healthy cultivation of the children who will be the leaders of the
next generation. We have also implemented in-house programs,
such as providing opportunities for learning about proper
hydration while enjoying sports, and nutritional education
awareness promotion programs for parents and children.
Marketp
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Examples of products supporting active, healthy lifestyles
The Coca-Cola system manages its operations with a globally
integrated management system called KORE (Coca-Cola
Operating Requirements). KORE encompasses al l of the
standards concerning quality, product safety, the environment,
and occupational health and safety for every operational process
starting with raw materials procurement, passing through
production, distribution, transportation, and sales, and ending
when our products reach consumers. The KORE system satisfies
the requirements of ISO standards and applicable laws and
regulat ions, and even includes more str ingent voluntary
standards.*
Certification bodies conduct measurements of our performance
against the various standard requirements at least once a year.
These third-party evaluations help ensure that the KORE
management system is operated with openness and fairness.
* Quality standards are largely based on ISO 9001; Product Safety standards on FSSC 22000; Environment standards on ISO 14001; and Occupational Health and Safety standards on Occupational Health and Safety Assessment Series (OHSAS) 18001
2010 Activities Report
Ensuring Product Safety and Reliability
Ensuring Safety and Reliability after Production
KORERequirements
Four Standards
Policies
KORERequirements
Four Standards
ReferencesReferences
Procedures
Requirements/Methods
Speci�cations
Standards
How
What
Architecture and FeaturesArchitecture that encompasses four areas:Quality, Product Safety, Environment, Occupational Health and Safety
ISO standards, laws and regulations, and strict voluntary standardsFive-tiered system
What
How
Preserving Quality with the KORE Management System
The Coca-Cola system requires its global supply chain to
operate in compliance with its Supplier Guiding Principles, a set
of rules formulated to evaluate the integrity of suppliers to ensure
that the raw materials they provide are of the highest quality. The
Supplier Guiding Principles consist of 10 behavioral principles
that require suppliers, at a minimum, to comply with applicable
laws and regulations. These principles allow The Coca-Cola
Company to share with its suppliers the values it holds as a
business in recognition of the differences that exist in the laws,
Finding the Best Raw Materials and Transporting Them Safely
Quality in Production
Distribution and Sales
customs, and economic conditions that affect business practices
in the many countries in which it operates. When procuring raw
materials, Coca-Cola Japan inspects the raw materials it
purchases from Japanese and overseas suppliers in addition to
quality verifications they make by issuing analysis certificates and
inspection data. To secure product quality, we also take
maximum precautions when it comes to security during
transport.
All 28 bottling plants of the Coca-Cola system in Japan are
working to obtain certification for international standards such as
ISO 9001, ISO 14001, and OHSAS 18001, in addition to meeting
KORE requirements. Particularly with regard to product safety,
we led the industry with FSSC 22000; as of March 31, 2011, all
of our bottling plants have obtained FSSC 22000 certification.
For water quality, we compare analytical categories and values
set by the World Health Organization (WHO) with the Japanese
Waterworks Law and water quality standards in Japan, and
adopt the standards that are most strict. Each bottling plant in
Japan carries out routine testing, including sensory testing,
physical and chemical testing, and visual inspections. This is
performed by examiners who have been certified in-house.
Meanwhile, annual checks of conformity to Coca-Cola system
water quality standards are also implemented.
The Coca-Cola system in Japan handles all post-production
processes from distribution to delivery. This allows us to extend
our quality standards to the very last step before our products
reach consumers’ hands.
We make painstaking efforts to manage the quality of our
products during transportation and sale according to the KORE
management system requirements. For example, we conduct
research with our bottling partners to verify the best timing for
stores to stock their shelves, appropriate temperatures for
warming and cooling our beverages, properly manage vending
machine inventories, and understand the subtle changes that take
place in our products as they wait to be purchased. When retailers
and other sales partners take over our stocking and refilling
operations for us, they follow the guidelines and precautions on
quality management prescribed in booklets that we distribute to
them.
Architecture of the KORE Management System
Quality ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ISO 9001Product Safety ∙∙∙∙∙∙∙∙∙∙∙∙∙FSSC 22000Environment ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ISO 14001Occupational Healthand Safety ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙OHSAS 18001
Four PoliciesQuality, Product Safety, Environment, Occupational Health and Safety
Policies, Standards, Speci�cations, RequirementsGoals to be achievedProcedures, ReferencesMethods for achieving the goals
13
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We believe that expanding and improving our product lineup
and strengthening collaboration with our business partners
allowed us to serve a greater number of satisfied consumers of
Coca-Cola system products in 2010. In the years ahead, we will
continue our efforts to deliver refreshment and high value to
consumers through our products.
At the Consumer Service Center
Future Issues and Goals
Consumer Relations
As part of our effort to manage product quality after
production, Coca-Cola Japan conducts surveys of products on
sale. We randomly purchase about 400 samples a month and
send them to the Coca-Cola system’s research laboratory in
Shanghai for detailed quality inspection. These surveys are done
to confirm that the products on sale in the market maintain the
high level of quality expected of Coca-Cola system products.
The Coca-Cola system in Japan declared in 2007 that the
entire system is now compliant with ISO 10002,* the international
standard that provides guidance on complaints handling. This
declaration represents our commitment to incorporating consumer
feedback in the way we manage our business and increasing
customer satisfaction by providing safe and reliable products and
services. There have been actual cases where we improved our
packaging and reviewed or made changes to our product
formulas based on our customers’ opinions. ISO 10002 does not
have a third-party certification system, and so, while any company
can self-proclaim that it complies with the standard, the
Coca-Cola system in Japan declared its compliance after
receiving an independent compliance
audit. As a way to govern our ISO
10002 management system, we verify
and revise operating conditions of the
sys tem in a b iannua l meet ing o f
managers from the consumer service
center, which handles feedbacks from
consumers.
In 2008, Coca-Cola Japan set up a Consumer Feedback Portal
to allow all of its employees to view all consumer feedback
received by the Consumer Service Center. In 2010 we received
around 76,000 questions and comments from consumers. We
distributed this feedback via monthly reports to the appropriate
departments, who used the information as valuable guidance for
developing future products.
* ISO 10002 (JISQ 10002): An international standard issued by the International Organization for Standardization (ISO) that provides basic principles and guidance on the process of complaints handling related to products. It describes how organizations should resolve customer complaints.
Check
More Safety and Reliability after Production
Management System PDCA Cycle
Audits, satisfaction surveys
DoHandle consumer feedback
Act
ManagementAudits, satisfaction surveys
PlanBasic policies,
system development
Using Consumer Feedback to Improve Our Business
The Coca-Cola system in Japan handles all post-production
processes from distribution to delivery. This allows us to extend
our quality standards to the very last step before our products
reach consumers’ hands.
We make painstaking efforts to manage the quality of our
products during transportation and sale according to the KORE
management system requirements. For example, we conduct
research with our bottling partners to verify the best timing for
stores to stock their shelves, appropriate temperatures for
warming and cooling our beverages, properly manage vending
machine inventories, and understand the subtle changes that take
place in our products as they wait to be purchased. When retailers
and other sales partners take over our stocking and refilling
operations for us, they follow the guidelines and precautions on
quality management prescribed in booklets that we distribute to
them.
Improve feedback-handlingprocesses
14
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As global environmental objectives to be achieved by 2020, The Coca-Cola Company aims to be the global leader in
sustainable water resource use, and the industry leader in packaging, climate protection and energy efficiency. The
Coca-Cola system in Japan formulated medium-term environmental targets (2015 Environmental Targets) for Japan based
on this policy, setting targets in the four areas of energy, packaging, water, and waste. Together with our nationwide bottling
partners, we will strive to achieve these targets.
The Coca-Cola system in Japan has a medium-term goal to reduce CO2 emissions from all business processes in Japan
by approximately 360,000 tons (18.6%) compared to the 2004 level by 2010. By year-end 2010, we achieved a reduction of
approximately 420,000 tons (21.8%). We also formulated the 2015 Environmental Targets, a new set of medium-term
targets, and strengthened infrastructure to improve our environmental performance. In terms of actions taken, we led the
industry by reducing energy use in all product life-cycle stages, implemented projects to protect water resources, reduced
packaging weight for beverages—as best demonstrated by our I LOHAS bottle—and used plant-based raw materials, among
other initiatives.
2010 Activities Report
Basic Aims for the Environment
Review of Achievements in 2010
Environmental Management
Environment
In 2010, the Coca-Cola system introduced and began
worldwide operation of KORE (Coca-Cola Operating Requirements),
a globally integrated and unique management system that
encompasses every standard related to product safety and
quality, occupational health and safety, and the environment at
all stages of a beverage product’s lifecycle—procurement,
production, distribution/transportation, sales, collection, and
recycling (see p. 13 for the KORE framework).
For the environment, the global Coca-Cola system sees water
stewardship, energy and climate, and sustainable packaging as
priority areas for long-term improvement and is working to
achieve targets for these areas based on the KORE requirements.
The system in Japan is engaged in these and one additional area,
waste management, to contribute to the development of a
closed-loop society.
Environmental Aspects of the KORE Management System
Energy(CO2 emissions
reduction)
Water
Packaging
Waste
Area CategoryTargets
Numerical target (Aggregate) Measures
Implement Source Water Protection projects at all plants
Source Water Protection
Further reduce packaging weight compared to 2004 to realize industry top levels
Start mechanical bottle-to-bottle (B to B) recycling* to turn used PET bottles into new PET bottles
Recycling and reuse
Achieve zero waste at all plantsIndustrial waste reduction
High value-added reuse of waste
-30.3% (compared to 2004)System total
Production
Distribution
Sales (vending)
Of�ces
Lightweight packaging
-10% (compared to 2004)
-5% (compared to 2004)
-45.5% (compared to 2004)
-3% (compared to 2004)
(Completed project at existing natural mineral water plant)2011: Implement at plants that use well water2012: Implement at plants that use industrial and municipal tap water
Reduce packaging weight
Review technical assessment and operational models
Promote waste recycling
Explore possibilities of high value-added reuse of waste, such as biomass recycling
Shift energy source in plants, introduce cogeneration systems, switch to roll-fed label systems, use steam and compressed air more ef�ciently, etc.
Increase transport ef�ciency• Revise supply network, increase direct delivery from plants,
improve accuracy of order transactions, promote modal shiftsIncrease vehicle fuel ef�ciency
• Replace low-ef�ciency vehicles with hybrids and other high-ef�ciency vehicles
• Encourage eco-driving habits by installing digital tachographs, etc.
Expand �eet of energy-ef�cient vending machines, replace existing vending machines, enhance lineup of HFC-free vending machines with heat pump systems
Switch to LED lighting, replace and update air conditioning systems
* Mechanical recycling: The process of turning used containers into new container material (recycled resin) by shredding and washing them, and then removing impurities from the recovered material by treating it under high temperature and reduced pressure for a set period of time
The Coca-Cola System’s Medium-Term Targets for 2015
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Working toward the Medium-Term Targets
Results of Environmental Impact Reduction Activities in 2010
In 2010, the Coca-Cola system introduced and began
worldwide operation of KORE (Coca-Cola Operating Requirements),
a globally integrated and unique management system that
encompasses every standard related to product safety and
quality, occupational health and safety, and the environment at
all stages of a beverage product’s lifecycle—procurement,
production, distribution/transportation, sales, collection, and
recycling (see p. 13 for the KORE framework).
For the environment, the global Coca-Cola system sees water
stewardship, energy and climate, and sustainable packaging as
priority areas for long-term improvement and is working to
achieve targets for these areas based on the KORE requirements.
The system in Japan is engaged in these and one additional area,
waste management, to contribute to the development of a
closed-loop society.
2010 Performance Results
Production Distribution/Transportation
Of cesCollection/Recycling
Recycling of resources
Raw Material933,000t
CO2 380,000tNox 290tSox 347t
CO2
60,000t
Sales
CO2
840,000t
INPUT Resources and energy used in business activities
OUTPUT Waste generated from business activities
Production
• The range of data that the Coca-Cola system discloses on its environmental impact covers production, distribution/transportation, offices, and sales activities
• Environmental impact at the time of sales is calculated based on the amount of CO2 emitted from electric power consumed by vending machines
• The amount of energy used during distribution/transportation is the sum total consumed for all processes, from concentrate manufacturing to transporting products to vending machines and retail outlets
• A joule (J) is an internationally recognized unit of measure used to express thermal energy amounts (1J = approx. 0.24 calories; GJ (gigajoule) = J x 109)
• CO2: carbon dioxide; NOx: nitrogen oxide; SOx: sulfur oxide
• The basis for calculating some of the data has been changed due to an improvement in data collection accuracy
Data Disclosure
Distribution
Sales
Of ces
Total reduction
Total reduction Achieved
Achieved
Not met
Achieved
Not met
Not met
Achieved
CO2 emission ratio
Total reduction
Total reduction
Total reduction
CO2 emission ratio
System total
2010 Targets 2010 Results Assessment
-5.6%
-10.0% -6.96%
22,653t-CO2 -7.0% 28,520t-CO2
+6.3%
-4.0% -24.88%
19,933t-CO2 -22.6% 71,174t-CO2
-30.6% 357,195t-CO2 -27.8% 324,300t-CO2
-2.3% 1,361t-CO2 -1.5% 896t-CO2
-18.6% 361,276t-CO2 -21.8% 424,890t-CO2
The Coca-Cola system sets and implements initiatives to
achieve medium-term environmental targets based on the belief
that balancing business growth with environmental impact
reductions is a fundamental requirement for sustained corporate
growth. Last year we concluded the final year of our medium
targets and plans for 2010 and formulated a new set of
medium-term targets and plans for 2015. Our new medium-term
targets are a comprehensive set of environmental performance
goals for reducing environmental impact across entire supply
chains. They comprise four action areas, the largest sources of
environmental impact in any beverage business: energy,
packaging, water, and waste.
This year the Coca-Cola system will begin full-fledged
measures aimed at achieving these 2015 medium-term targets
and, by doing so, will strive to establish our position as a leader
on environmental performance in the soft drink industry.
Concentrates, coffee beans,tea leaves, sugar, containers, etc.
Water19,250,000m3
For rinsing containers,etc.
Solid waste110,000t
Coffee grounds, used tea leaves, sludge, etc.
Emissions from generating electricity
Water2,5220,000m3
For producing beverages, rinsing containers, etc.
Energy7,600,000GJ
Electricity for operating production lines, etc.
Energy3,580,000GJ
Fuel for vehicles to transport products, etc.
Electricity for vending machines
Energy1,280,000GJ
Energy19,690,000GJ
Electricity and other energies used in building air conditioning
(heating and cooling) and lighting and other systems
CO2 240,000tNox 1,584tSox 6.4t
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Energy and Climate
3D VIS vending machine
Biodiesel truck at Hokkaido Coca-Cola Bottling Co., Ltd.
Improving the Environmental Performance of Vending Machines
Distribution and Transportation
Green roof top vending machine
2010 Activities ReportEnvironment
Production Sales
Switching to 3D VIS and HFC-Free Vending Machines
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To meet our medium-term targets in production—a 5.6%
reduction in CO2 emissions and 10% reduction in the CO2
emission ratio from 2004 levels by 2010—we focused largely on
switching fuel at our plants from heavy oil to processed natural
gas and natural gas, and on installing cogeneration systems. By
the end of 2010, we switched to processed natural gas or natural
gas at 19 plants and installed cogeneration systems at seven
plants out of a total of 29 plants. Consequently, while we
surpassed our target for CO2 emissions reduction by 1.45
percentage points, we undershot our CO2 emission ratio target
by 3.04 percentage points. Going forward, we will continue to
reduce our CO2 emissions by shifting energy sources,
considering the possibility of installing cogeneration systems, and
strengthening measures to raise productivity.
We are making various improvements to the environmental
performance of our vending machines in order to reduce energy
use in sales.
One of our vending machines uses an HFC-free refrigerant with
a low global warming potential and is equipped with a heat pump
waste heat recovery system that allows for efficient heating and
cooling. Another vending machine, ecoru/Solar, uses solar
energy to completely eliminate electricity use for nighttime
illumination.* Our green roof top vending machine, which curbs
temperature rises on its surface using a heat insulating rooftop
sheet that contains natural growing plant matter, is just another
example of the many innovative and environmentally friendly
vending machines we have deployed so far.
* Nighttime lighting conditions (theoretical values) that enable solar-powered lighting:
• “Nighttime” defined as 12 hours based on JIS standards• Partially illuminated during stand-by, and completely illuminated during use• One third of all vending machine sales (number of drinks dispensed) take
place at night• Weather allows the solar battery to fully charge in 3.3 daytime hours (3.3
hours: Average hours of power generation per day, calculated based on meteorological data)
We aim to make all vending machines in the market 100%
HFC-free and equipped with heat pump technology by 2020. To
achieve this goal, all can and PET bottle vending machines that
we purchase from 2011 onward will be 100% HFC-free and,
excluding certain models, will employee heat pump systems. We
plan to start the switch to HFC-free, heat pump-equipped cup
vending machines starting with an initial purchase of these
machines in 2012.
Additionally, since January 2011 we began introducing the
newly designed 3D VIS vending machine as our new standard
vending machine in Japan by switching out old machines and
installing it in new locations. We aim to make all vending
machines in Japan the 3D VIS and HFC-free type by the end of
2020.
As measures to reduce energy use in distribution and
transportation in the Coca-Cola system in Japan, we are working
to increase the efficiency of our delivery and sales distribution
systems by consolidating distribution centers and modifying
distribution routes. We are also promoting eco-driving and,
together with our bottling partners nationwide, introducing
low-emission vehicles to our fleets to reduce our environmental
impact from transportation. In 2010, we introduced 33 diesel
hybrid delivery trucks and 48 hybrid and three all-electric
company vehicles across the system. Along with modal shift
activities to reduce CO2 emissions, we will continue efforts to
reduce emissions in the system, both in our operations and in the
vehicles we use.
Hokuriku Recycling Center Co., Ltd.
We have endeavored to conserve materials and effectively use
resources by progressively making our product packaging lighter
since the 1970s.
I LOHAS, a water brand that exemplifies our achievements in
lightweight packaging, uses ecoru Bottle Shiboru, the lightest
bottle in Japan1 that also crushes easily after drinking. Starting in
September 2010, we also introduced Japan’s lightest bottle for
its class,2 at a weight of 35g, for six 2L water, sports drink, and
tea brands.
And in 2010, we introduced the PlantBottle, a next-generation
PET bottle made partially (5–30%) from renewable plant-based
materials. An amazing benefit of the PlantBottle is that it is no
different from other bottles in terms of shape, weight, and
strength, and is 100% recyclable at existing recycling plants.
1. 555ml bottle: 12g; 1,020ml bottle: 18g; (as of July 2011; according to research by Coca-Cola Japan)
2. 2L class (as of July 2011; according to research by Coca-Cola Japan)
As part of our responsibility as a beverage manufacturer, the
Coca-Cola system in Japan has actively promoted the collection
and recycling of used containers since the 1960s. Today, six
bottling partners and an affiliated company of the Coca-Cola
system in Japan operate recycling centers, where they sort,
compress, and process collected post-consumer containers.
For example, the Hokuriku Recycling Center Co., Ltd., an
affiliate company of Hokuriku Coca-Cola Bottling Co., Ltd., is
officially registered as a recycling business compliant with the
Containers and Packaging Recycling Law and even recycles
post-consumer containers collected by local government.
Coca-Cola West Co., Ltd., which serves consumers in the
Kansai, Chugoku, and northern Kyushu areas, recycles collected
post-consumer containers at the Kitakyushu Sawayaka
Recycling Center located in Kitakyushu Eco Town and also
disassembles and sorts
components of old vending
machines in an adjoining
recycling facility.
In addition to these
activities, the Coca-Cola
system in Japan, working
as a responsible member
of the local community,
continually hosts cleanup events in locations across Japan, and
through public relations activities works to educate the public on
the importance of sorting and recycling used containers. In 2010,
we set up newly designed recycling bins at a number of venues
across Japan. These bins, based on a character called “Risabo”
(short for “recycling box” in Japanese), use their charm to
encourage event-goers to recycle their used containers.
The Coca-Cola system in Japan also
actively tries to find ways to use recycled PET
material. We use recycled PET material in
company uniforms and container recycling
bins, and have teamed with apparel makers
to market t-shirts, hats, tote bags, and other
products made using recycled PET material.
PET material caught the world's attention
with the launch of 111 Navy Chair, a chair
co-developed with Emeco made from 111
recycled PET bottles.
Sustainable Packaging
The Coca-Cola system develops packaging for its products
based on the belief that packaging should be eco-friendly and
easy for people to use. This is the thinking behind our global push
for what we call “sustainable packaging.” To us, sustainable
packaging refers to packaging that contains a full complement of
three elements: ease of use, environmental compatibility, and fun.
To achieve the environmental compatibility element, we have
maintained the beverage industry’s top-level performance in the area of lightweight packaging and are currently making preparations
to begin mechanical bottle-to-bottle (B to B) recycling to make new PET bottles out of old ones.
Evolution of the Lightweight Bottle and the Launch of
Lightweight Containers and Next-Generation Materials
Post-Consumer Container Collection and Recycling
ecoru BottleRaku-mochi
ecoru BottleShiboru
Characteristic of the Coca-Cola system
Earth- and people-friendly containers
Ease of useEco-
friendliness
FunConcept of Sustainable Packaging
Universaldesign
Reduce
Reuse
Recycle
PlantBottle
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Water Stewardship
Water, the main ingredient in soft drinks, is our most vital resource as a soft drink manufacturer.
In its aim to be the global leader in water resource management by 2020, the Coca-Cola system
globally launched in 2004 a water stewardship project composed of three important elements:
Reduce water use in production processes, Recycle water used in production processes back to
nature in a safe manner through proper water treatment, and Replenish water resources by
cultivating healthy watersheds. With the end goal of returning to nature and communities an amount
of water equivalent to what we use in our beverages and their production, in Japan we are working
to raise the performance of our plants by properly managing water intake, water quality, and
wastewater and by raising water use efficiency, and are implementing environmental protection and
education activities in the communities around our bottling partners.
The Coca-Cola system in Japan strives to use water more
efficiently in production while also complying with the strict
product quality standards of its globally operated KORE
management system. The Coca-Cola system in Japan uses an
average of 5.97L of water to make 1L of product (based on 2010
data), an approximately 5% improvement over the last four years.
Water is mainly used to extract teas and coffees and to clean and
sterilize containers and manufacturing lines. We rigorously
manage our water use in these production processes and retain
some of the water to reuse it to wash plant floors and cases for
returnable glass bottles.
Ef�cient Use of Water
ReduceReduce Water Use in Production
RecycleManage Plant Wastewater
The global Coca-Cola system is implementing a long-term
source water protection project at system plants as part of
its effort to sustainably manage water resources. This project
requires plants to work with experts to identify their watershed
based on scientific studies, assess source vulnerabilities, and
prepare a source water protection plan. The Coca-Cola system
aims to complete this project at all plants in the world by 2012.
In Japan, we are carrying out source water identification and
vulnerability assessments according to a three-stage plan aimed
at completing the project
at all natural mineral water
plants in 2010, plants that
use well water in 2011, and
plants that use industrial
and municipal water in
2012.
Source Water Identi�cation and Vulnerability Assessments
ReplenishProtect Source Waters
Technologyin businessactivities
Source WaterProtection
Coexisting Harmoniouslywith Local Communities
Water treatment
Reuse
Well water,municipal water, industrial water
To products
Use in the manufacturing process for cleaning plant floors, etc.
2010 Activities ReportEnvironment
Basic Aims for Water Stewardship
Strategic Framework for Water Stewardship
Water Recycling System
WatershedprotectionWatershedprotection
Water intakeWater intake
Waterquality
management
Waterquality
management
Ef�cientuse ofwater
Ef�cientuse ofwater
WastewatermanagementWastewater
management
Recoveryprocessing
Wastewatertreatment
To rivers/streams
or sewage system
s
Plant wastewater (process
wastewater, cooling water,
and sewage water), including
water to be reused, is purified
on site using activated
sludge—a microbial water
treatment process—and
other processes and
managed in compliance
with KORE standards.
These voluntary water
quality standards exceed
standards required by
Japanese law (e.g., the
Water Pollution Control
Law).
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Achieving targets in the four areas outlined by our 2015
medium-term environmental targets—energy, water, packaging,
and waste—will help us realize our commitment to environmental
sustainability as set forth by “Live Positively,” the Coca-Cola
system’s globally integrated business policy. By sharing the same
goals as our bottling partners and affiliated companies throughout
Japan and steadily working together to reach these goals, we
will reduce the environmental impact of the system’s business in
Japan.
Future Issues and Goals
The Coca-Cola system in Japan has continually worked to
recycle waste produced by our plants in order to achieve a “zero
waste” goal for plants. In 2010, we generated approximately
110,000 tons of waste versus a total of approximately 933,000
tons of raw material used (concentrates, coffee beans, tea leaves,
bottles, cans, PET bottles, etc.). Coffee and tea drinks, which
produce coffee grounds and used tea leaves during production,
account for some 77% of all waste. We recycle all of this waste
into livestock feed and agricultural fertilizer. We are also trying to
use waste generated by the Coca-Cola system in Japan more
effectively by using it, for example, as a feedstock for biomass
power and methane production.
The Coca-Cola system in Japan aims to contribute to the development of a closed-loop society. To do so, we will Reduce resource use
across our business, Reuse limited resources, and Recycle waste by converting them into high value-added resources. We will appropriately
manage and process waste produced by our business activities in an effort to strengthen legal compliance and meet the Coca-Cola system’s
KORE management system requirements (see p.15).
Waste in the Coca-Cola system in Japan consists largely of coffee grounds, used tea leaves, and sludge from plants, and containers and
vending machines from sales offices. We recycle all waste that is recyclable.
(See p.18 for information relating to containers and vending machines.)
Effective Use of Production Waste
Offices at Coca-Cola Japan have paper recycling bins and
recycling stations for bottles, PET bottles, and paper cups with
which employees appropriately separate and recycle their waste.
Organic waste generated by our employee cafeterias is
reduced to around one-tenth of its original volume using organic
waste processors and then, through cooperation with Harue
Corp., hot composted and used to raise eco-friendly vegetables
certified by the Chiba Prefectural Government.
At the Ofce
Waste Management
The next step we would like to take down the long path to environmental sustainability is to achieve our voluntary medium-term envi ronmental targets for 2015. These medium-term targets consist of individual targets for each of the major environmental impact areas of our beverage business and will help us contribute in environmental terms to our 2020 Vision, The Coca-Cola Company’s long-term global growth strategy. On top of primary self-sustaining efforts we make as a company, working closely with our stakeholders will be a major force behind achieving some of these targets. As we implement measures with our 12 bottling partners and affiliated companies in Japan toward this one goal, we are committed to further reducing the environmental impact of our business activities.
Kota TakasugiGroup ManagerEnvironmental Performance Management GroupPublic Affairs & CommunicationsCoca-Cola (Japan) Co., Ltd.
ASSOCIATE’S MESSAGE
Basic Aims for Waste Management
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The Coca-Cola system focuses on contributing to local communities based on the belief that healthy communities are the
foundation of healthy, sustained business activities. In addition to contributions made through our business, such as
community advancement programs and disaster relief, crime prevention, and charity programs facilitated by our vending
machines, we also carry out a wide array of activities in our communities, such as sponsoring local sports and culture events
and providing educational programs for children.
In 2010, disaster response support agreements formed between our bottling partners and local government authorities or
their auxiliary organizations increased by a total of 322 agreements. This puts the number of installed disaster-relief vending
machines in Japan as of March 31, 2011, at 6,000 machines, thereby strengthening community infrastructure across the
country. The year 2010 also saw a rise in the number of charity vending machines that allocated a portion of revenue to a
community development, environmental preservation, or welfare program. We connected with local residents through a wide
array of community programs and events that included environmental education programs, educational programs on fluid
replenishment and diet, plant tours, and the Coca-Cola system-sponsored cultural and sports events in the areas around our
bottling partners.
2010 Act iv i t ies Report
Basic Aims for Communities
Review of Achievements in 2010
For 15 years, The Coca-Cola Company has supported Ocean
Conservancy, a non-governmental organization that fights to
protect marine ecosystems. Coca-Cola system employees
around the world are volunteering in the Ocean Conservancy’s
International Coastal Cleanup. In Japan in 2010, 30 employees
joined a cleanup effort on Yakushima island. Our cleanup
activities have been an especially enduring part of our community
contribution program, as we have been engaging local residents
all across Japan since the 1960s. Since 2008 we also began
supporting “green bird,” an NPO that organizes cleanup activities
in towns across Japan.
transport products and restock vending machines, help ensure
safety by contacting authorities or providing a safe refuge when
they see something suspicious or a person in need of help.
Delivery trucks are also used in disasters to transport drinks and
relief supplies in accordance with disaster response support
agreements tied with local governments.
Community
The Coca-Cola system uses its vending machines and
fleet—two things closely linked to the communities we serve—to
actively help make our communities safer.
When an earthquake or other disaster strikes, our
disaster-relief vending machines activate an emergency mode
that allows consumers to take products for free and broadcasts
disaster-related information on an attached LED display. In the
wake of the Great East Japan Earthquake, approximately 400
machines across Japan, many in the affected areas and around
the greater Tokyo area, operated in emergency mode. For crime
prevention, we put address stickers on vending machines and
also work with local police authorities to broadcast crime
prevention information on LED displays. The breadth of
community contributions made through our vending machines
goes even further. For example, our bottling partners make
donations to non-profit organizations, environmental protection,
and community development programs through charity vending
machines. The drivers of our delivery trucks, which are used to
Vending Machines and Fleet—Serving Communities in Myriad Ways
Community Cleanup Activities—Thinking Globally, Acting Locally
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In keeping with its basic philosophy of “healthy, active living,” the Coca-Cola Educational & Environmental Foundation plans and hosts act iv i t ies under three major programs (1. Environmental Education, 2. Scholarship Assistance, 3. Sports Education) to encourage young people in Japan to take an active and globally conscious leadership role in their local communities.
In Focus
Local communities are becoming an increasingly vital partner
in promoting sustainable business activities and tackling common
challenges. As we adapt to ongoing social changes as a business
deeply rooted in the communities where we operate, the
Coca-Cola system in Japan will continue to implement programs
that contribute to communities both through our business and
through volunteering efforts, with the aim to make these
programs as locally relevant as possible.
Future Issues and Goals
The “Coca-Cola: Begin Your Dream for the Future” project
encourages children to start living their dreams. The project
sends experts who are at the forefront in their fields to schools
around Japan to teach children the importance of having a dream
for the future and thinking about the Earth’s future as a stage
upon which to realize their dreams as members of society.
In 2010, we held a Frog Town Meeting, a swimming class
taught by Olympic gold medalist Kosuke Kitajima, a Hockey
Meeting, taught by representatives of the Coca-Cola West Red
Sparks Women’s Hockey Team, and, in a move to expand project
fields to include cultural pursuits, a Music Meeting, a music
program for high school students taught by music creator
Katsuhiko Yamamoto (Sony Music Entertainment).
“Coca-Cola: Begin Your Dream for the Future” Project
Frog Town Meeting Music Meeting
In support of the contest’s mission of furthering English
education to raise internationally minded youth and, in so doing,
promote Japanese cultural development and international
goodwill, the Coca-Cola system in Japan has sponsored the
H.I.H Princess Takamado Trophy All Japan Inter-Middle School
English Oratorical Contest every year since 1963. At the 62nd
finals competition held in November 2010, 151 middle school
students selected from 1,979 participants representing schools
from all 47 prefectures of Japan gave English speeches of
outstanding quality. The Coca-Cola system presented awards to
the top three winners as well as students who gave exemplary
speeches on an environmental issue or social contribution
activity.
Sponsoring the All Japan Inter-Middle SchoolEnglish Oratorical Contest
Since 2006, the Coca-Cola system in Japan has been carrying
out an environmental education program for the leaders of
tomorrow—our children—with support from the Ministry of the
Environment and the Forestry Agency. The “Coca-Cola: Learn
from the Forest” project aims to foster an understanding of the
role of water, a vital natural resource, the forests that nurture
those water resources, and the importance of nature
conservation. Children participate in fieldwork such as tree
planting and forest thinning activities as well as environmental
workshops. A special project website provides forest and
nature-related information and reports of project activities. The
site also features an
educational program for
learning about forest
ecosystems and global
warming.
“Coca-Cola: Learn from the Forest” Project
Coca-Cola Educational & Environmental Foundation
Shibuya City conducts community cleanup activities and beautification programs (clearing graffiti, posting warning signs on abandoned and illegally parked bicycles, for example) through a City Beautification Committee consisting of the city’s 10 neighborhoods based on the motto, “A Safe Town Starts with a Clean Town.”
It is greatly encouraging that businesses are joining local residents in supporting the future growth of these activities.
We look forward to Coca-Cola Japan’s continued participation and support.
Junichiro KondoSection HeadClean City Development SectionSafety DivisionCrisis Management DepartmentShibuya City Of�ce
Stakeholder Message
Educational Programs for Children
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Coca-Cola Japan adopts our Workplace Rights Policy and Code of Business Conduct as its basic workplace policies.
These policies guarantee the rights of all Coca-Cola employees around the world and guide behavior in their work (see
p. 25). The Coca-Cola Company vows to treat all employees fairly, with dignity and respect based on the principle that
respecting human rights forms the foundation for conducting business. Our Workplace Rights Policy was formulated
based on international human rights standards including the Universal Declaration of Human Rights and the United
Nations Global Compact.
Everyone who works for the Coca-Cola business is the face of the Coca-Cola system. The Coca-Cola Company values the
relationship it has with its employees and strives to provide positive work environments based on the belief that the success of
the Coca-Cola system’s globally operated business hinges on its employees.
Coca-Cola Japan, in accordance with this global policy, aims to be a company that inspires its employees to realize their
maximum potential by fostering safe, open, healthy, and diverse work environments that give individual employees sufficient
control to feel motivated in their work.
In 2010, Coca-Cola Japan conducted an Employee Insights Survey, a survey conducted by the global Coca-Cola system
once every two years, to identify workplace environmental issues and explore solutions to those issues. We tried to create
better workplace environments through a range of measures that included holding multiple internal events open to all
employees, providing various skill development programs, and enhancing employee welfare programs.
2010 Act iv i t ies Report
Basic Aims for Workplaces
Review of Achievements in 2010
In accordance with these global human resources policies,
Coca-Cola Japan, working closely with our bottling partners and
affiliated companies that make up the Coca-Cola system, actively
seeks out and cultivates motivated people who will contribute to
the growth of the system’s business.
Workplace
As part of its initiative to create diverse workplaces, the
globally-operating Coca-Cola system aims to hire more women,
develop their skills, and help them advance their careers as
priorities outlined in the 2020 Vision, the global Coca-Cola
system’s long-term growth strategy for the year 2020.
Coca-Cola Japan, too, is focused on developing the skills of
its female employees, training leaders, and creating positive
work environments. Women represent 33% of all employees
(not including Moriyama Plant) and 19% of managers at
Coca-Cola Japan as of December 31, 2010. We will continue
to actively promote
female employees to
managerial positions.
Empowering Female Employees
Employee Numbers
2008
424
177
601
2009
421
180
601
2010
415
176
591
Male
Female
Total
2008
518
83
601
Shibuya Head Of�ce,Tokyo R&D
Moriyama Plant
Total
2009
519
82
601
2010
505
86
591
Coca-Cola (Japan) Co., Ltd. Shibuya Head Office, Moriyama Plant, and Coca-Cola Tokyo R&D Co., Ltd.
Employees by gender
2008
0
2009
2
2010
5Employees seconded
to bottling partners
Employees by workplace
Basic Policies on Human Resources
Creating Rewarding Workplaces
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We will work on building a corporate culture where people are
determined to succeed by focusing our attention on workplace
issues identified by the Employee Insights Survey—train people
managers, increase work efficiency, and strengthen employee
career development—and by continuing measures aimed at
creating workplaces that are truly diverse and where employees
can feel motivated in their work.
Future Issues and Goals
Coca-Cola Japan implements the programs, tools, and
opportunities that The Coca-Cola Company has developed to
help employees achieve their career goals based on a policy that
employees should take individual responsibility and be the
primary facilitators of their career development.
We operate a rigorous performance management process to
ensure that employees’ individual goals are aligned with the
priorities of our overall business. This allows us to directly link
personal achievements to the achievement of goals for the entire
Coca-Cola system. All employees are required to talk with their
supervisor and reach agreement concerning their annual
performance targets, career plan, and skills development plan,
and then translate their goals into actions. All performance
management activities like these are controlled by a globally
integrated process and system. Employees receive feedback on
their progress from their supervisors at the end of the second
quarter, and the performance evaluation process is concluded at
yearend with supervisor’s evaluations and a Coca-Cola
system-wide evaluation meeting.
Evaluation System
Coca-Cola Japan creates opportunities for employees to
develop their skills by experiencing work in an overseas
Coca-Cola system office. In 2010, we sent one employee to
Australia, one to the United States, and one to Belgium.
Workforce Development through Employee Exchange
Employees of Coca-Cola Japan are offered
educational programs that make use of our in-house Coca-Cola
University, a virtual global university established by The
Coca-Cola Company. Employees can receive training, participate
in educational programs, and take e-learning classes according
to a globally set curriculum or learning path designed for various
occupational areas. In 2010, we jointly held with our bottling
partners a leadership training program for female employees and
follow-up training for new graduate recruits.
Coca-Cola University
As part of our effort to create positive work environments,
Coca-Cola Japan offers a flextime work option (not including
employees at Moriyama Plant), childcare leave, family nursing
care leave, and other programs to help employees come up with
their own flexible work styles. We also provide employees the
service of selecting welfare programs that fit their own life stages,
assistance for employee club activities, and other services to help
them lead a physically and mentally healthy, fulfilling life.
Supporting Flexible Work Styles
Employees of Coca-Cola Japan can receive outside
counseling anonymously and free of charge through our
Employee Assistance Program established to promote mental
health. Our Moriyama Plant strives to promote employee
awareness and maintain safe working environments by
performing employee health checks before work each morning
and by issuing reminders and conducting inspections to prevent
accidents.
Employee Health Care
Coca-Cola Japan’s management team makes efforts to
communicate with employees through publication tools such as
newsletters and the intranet and in various group settings such as
People Day and the Live Positive Day, meetings for everyone in
the company, and Town Hall Meeting, a venue set up for
employees to talk directly with management.
Utilization of Internal Communication Tools and Meetings
yearend with supervisor’s evaluations and a Coca-Cola
educational programs that make use of our in-house Coca-Cola
Last year I was dispatched to the Business Planning And Commercial Knowledge & Insights of The Coca-Cola Company in the United States through an employee overseas exchange program. My job there was to compile business plans from countries around the world and analyze and evaluate progress toward the 2020 Vision, the Coca-Cola system’s long-term growth strategy. It was a valuable experience for me to observe how unique the Japanese market is among other markets worldwide and to reconfirm my understanding of Japan’s contribution to the entire system’s performance. The program also helped me expand my network beyond Japan by being part of a multinational work team, communicate more smoothly with overseas offices after returning to Japan, and enjoy a more rewarding daily work life.
Yuri TamoriGroup ManagerBusiness Planning And Commercial Knowledge & InsightsStrategic PlanningCoca-Cola (Japan) Co., Ltd.
Associate’ s Message
Career Development Support
Occupational Health and Safety
Internal Communication
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The Code of Business Conduct, in addition to legal
compliance, defines rules and policies for six key categories of
conduct, including avoiding conflicts of interest, safeguarding
information, and dealing with customers and suppliers. The
Coca-Cola Company takes it as its mission to deliver moments of
refreshment and happiness to people in the countries and
communities where it operates and endlessly strive to create new
value and inspire positive change in the world through its
business. All employees involved in carrying out business
activities in the Coca-Cola system are required to act with
honesty and integrity in all matters as prescribed by The
Coca-Cola Company’s global Code of Business Conduct.
The Coca-Cola Company formulated its Workplace Rights
Policy based on international human rights standards such as the
Universal Declaration of Human Rights and the United Nations
Global Compact as a guide for creating positive work
environments. Coca-Cola Japan also observes this policy. The
Workplace Rights Policy includes the following components:
Matters related to the administration of the Coca-Cola system
in Japan are discussed and decided upon at Coca-Cola Japan’s
weekly Management Committee meeting composed of senior
managers. In some cases, the Management Committee
delegates authority to internal departments to enable swifter,
more flexible responses to the various issues that arise in
day-to-day operations.
The Coca-Cola Company, in recognition of the different laws,
customs, and economic conditions that affect business practices
around the world, believes that sharing with its suppliers a set of
values that represent the highest standards of quality, integrity,
excellence, and compliance with the law is critical to the
long-term success of its business.
The Supplier Guiding Principles communicate these values to
suppliers and serve as a foundation for promoting them together
with The Coca-Cola Company through its global operations. They
require suppliers, at a minimum, to comply with all applicable
laws and regulations and observe 10 additional principles that
include prohibition of child labor, prohibition of forced labor,
freedom of association and collective bargaining, healthy and
safe work environments, and environmental responsibility. The
Coca-Cola system in Japan enters into new business
agreements with suppliers after first explaining the Supplier
Guiding Principles and making sure they understand it. Even after
supplier operations begin, we conduct third-party audits at our
discretion to verify that they are conforming to the principles.
Management Systems
Corporate Governance
As a member of The Coca-Cola Company, a corporation conducting business in over 200 countries worldwide, Coca-Cola Japan manages
its business activities in accordance with the various policies and rules of conduct established by The Coca-Cola Company. These include the
Code of Business Conduct, Supplier Guiding Principles, and Workplace Rights Policy. Our governance system administers these policies and
rules by enabling employees to consult and receive direction from their immediate supervisor or the legal department of their respective
business units at any time.
Freedom of Association and Collective Bargaining
Forced Labor Child Labor
Discrimination Work Hours and Wages
Safe and Healthy Workplace Workplace Security
Community and Stakeholder Engagement
Code of Business Conduct Workplace Rights Policy
Supplier Guiding Principles
Corporate Governance Structure
The Coca-Cola system in Japan operates its business
according to an annual business plan agreed upon by the
presidents of Coca-Cola Japan and its 12 bottling partners.
President meetings, national meetings, and other meetings are
held where necessary to share and discuss information and reach
agreements on matters significant to the administration of the
Coca-Cola system.
Presently, the Coca-Cola system in Japan is implementing a
business plan in line with the 2020 Vision, The Coca-Cola
Company’s global long-term growth strategy for the year 2020.
Coca-Cola Japan is collaborating with its bottling partners and
other companies in the system to work toward achieving the
2020 Vision.
Governance of the Coca-Cola Systemin Japan
Basic Framework and Policies
25
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s
Coca-Cola Japan is a member of The Coca-Cola Company’s
Ethics & Compliance Committee. Personnel in our human
resources and financial departments, primarily those who
oversee legal affairs, participate in cross-functional committee
activities to promote legal compliance in Japan.
Legal Compliance Risk ManagementAs a foundation for compliance at Coca-Cola Japan,
employees are asked to practice sound judgment in accordance
with The Coca-Cola Company’s Code of Business Conduct and
applicable laws and regulations. Employees can read the Code of
Business Conduct in their employee handbooks or on the intranet
and can seek in-house guidance whenever they have an ethical
or legal concern associated with their work.
The Coca-Cola Company groups its assets into the following
five categories: people and organizations, products and
marketing, information, infrastructure, and financial assets. The
Coca-Cola Company established the global Incident
Management & Crisis Resolution (IMCR) risk management
program as a strategy to protect all of its assets—including the
public image and reputation of its organization and business,
intangible but invaluable assets. The Coca-Cola system in Japan
also implements this program. IMCR has roughly two functions:
one for managing risks in normal situations, and the other for
resolving crises when they arise.
President
IMCR members
Report/Collaboration
Bottling partners
IMCRcoordinator
IMCRcoordinator
The Coca-Cola Company
President
IMCR members
Initial Assessment TeamCollect information and assess the risk
Initial Assessment Team Collect information and assess the risk
Sales department
CustomersConsumers
Consumer Service Center
IMCR CommitteeIMCR Committee
Compliance Organization
Once a year, the Coca-Cola system in Japan assesses the
potential risks to its business activities and reports its findings to
The Coca-Cola Company. In the event that a risk emerges,
Coca-Cola Japan’s risk management coordinator immediately
organizes an initial assessment team consisting of
representatives from relevant departments to collect information,
formulate an initial response, and assess the level and scope of
the risk. If the problem seems likely to spread, a risk management
committee is convened to discuss responsive measures and
consider what and how to communicate to consumers,
customers, the media, and other stakeholders. Bottling partners
use the same procedures, thus unifying risk management
procedures across the Coca-Cola system.
Risk Management Procedures
Coca-Cola Japan implements training programs when
appropriate to increase employees’ understanding of
compliance. In 2010, the Coca-Cola system globally
implemented a process for verifying that employees understand
the Code of Business Conduct and are observing its precepts,
requiring all employees to participate in online training and
demonstrate their compliance.
Compliance Training
Coca-Cola Japan strives to ensure ethical behavior and legal
compliance in the workplace by providing all employees access
to information and guidance on compliance-related issues at any
time. Our employees can anonymously call or e-mail EthicsLine,
The Coca-Cola Company’s global online and telephone
information and reporting service, to seek guidance or report a
potential compliance violation.
Internal Reporting System
Coca-Cola Japan protects and manages information and
periodically conducts third-party audits in accordance with
applicable laws and information protection provisions established
by The Coca-Cola Company. We also strive to strengthen
information security throughout the Coca-Cola system in Japan
by communicating The Coca-Cola Company’s basic security
policies and risk information
to our bottling partners and
affiliated companies and by
having each organization
conduct a self-assessment
on the reliability of their
information security systems,
among other efforts.
Information Security Management
• The Coca-Cola system in Japan regularly implements system-wide risk management training to prepare itself to appropriately handle events involving risk at any time.
Coca-Cola Japan
IMCR Structure
Manag
ement S
ystems
26
In September 2010, Whole Foods Market, a US
supermarket chain specializing in natural and organic foods,
launched sales of Sokenbicha, the leading blended tea drink
in Japan.1 The American version of Sokenbicha maintains the
original concept of being a “blended tea (CHA) that gives you
refreshment (SO), health (KEN), and beauty (BI).” The tea was
formulated based on Eastern philosophy and with
cooperation from Nihondo Co., Ltd., the largest provider of
Kampo medicine in Japan. For environmental sustainability,
Sokenbicha comes in a
PlantBottle2 and tea leaves
used to manufacture the
drink are recycled into
compost.
Coca-Cola Recycling, LLC, a company established to
promote the Coca-Cola system’s container collection and
recycling in North America, started in November 2010 a pilot
test of a new “reverse vending machine,” or recycling drop-off
center, in Arlington, Texas. The company plans to install
additional machines in supermarkets and other convenient
locations to encourage consumers and business owners to
shrink their footprint.
The state-of-the-art reverse vending machine, co-developed
with recycling giant Envipco, is expected to process some
300,000 aluminum cans and PET bottles a month, diverting
an estimated 70 tons
of landfill waste a
year.
The Coca-Cola Company launched the Haiti Hope Project
in March 2010 to support mango farmers and help
reconstruct Haiti after a major earthquake struck the nation in
January 2010. The project, a partnership between business,
public institutions, and civil society, will invest an estimated
US $7.5 million to support 25,000 mango farmers and double
their income over five years. Achieving this goal will help raise
their standard of living while contributing to the long-term
development and revitalization of the country. The Coca-Cola
Company has been operating in Haiti
since 1927. As the largest private-sector
provider of local jobs, the Company is
implementing a locally oriented business
model aimed at stimulating the local
economy through local hiring, materials
procurement, and other activities.
The Coca-Cola system is making various efforts to realize a sustainable balance between business activities and communities by carrying out programs that contribute to “Live Positively,” our global sustainability framework. This section introduces programs taking place in Coca-Cola system companies around the world.
The Coca-Cola SystemWorldwide
Travels Abroad with Five-Flavor US Debut
Beverage Bene�ts
Private-PublicPartnership SupportsMango Farmers for Haiti Reconstruction
Community
New Recycling CenterPiloted in Texas
SustainablePackaging
USA
HaitiUSA
1. 2010 volume market share in the blended tea category; according to research by Nikkan Keizai Tsushin Co., Ltd.
2. See p. 18 to learn more about PlantBottle
Sokenbicha
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3. See p. 18 to learn more about PlantBottle
In July 2010, The Coca-Cola Company hosted the
inaugural “Unity Cup” match at the Green Point Stadium in
Cape Town, South Africa, just prior to the 2010 FIFA World
Cup quarterfinal match between Germany and Argentina.
Participants in the match included such dignitaries as
President Jacob Zuma of South Africa, Special Olympics
CEO Timothy Shriver, FIFA President Joseph Blatter, and
The Coca-Cola Company Chairman and CEO Muhtar Kent,
who also serves as Special Olympics Board Member. The
group faced off
against 16 Special
Olympics athletes
in a friendly football
match.
In September 2010, The Coca-Cola Company announced
it would empower five million women entrepreneurs in the
global Coca-Cola system by 2020. This goal is based on
evidence that the economic success of women who support
their families, the backbone of communities in the developing
world, will have a significant positive impact on local
economies and communities. This initiative will provide
women with financial assistance, business training, and
access to networks, and will also contribute to the
achievement of the United Nations Millennium Development
Goals, of which The Coca-Cola Company is a contributing
partner, and the Coca-Cola system’s long-term growth
strategy.
In May 2010, The Coca-Cola Company decided to donate
US $4 million to the United Nations Development Programme
(UNDP) and the World Wildlife Fund (WWF) to support
long-term water resource protection activities in China. Half
of the donation will be used to support water safety and
water resource management activities in rural Chinese
communities until 2013 through a public-private partnership
started in 2007 between the UNDP, the Chinese government,
and The Coca-Cola Company. The other half will be used to
help improve water quality and restore wetlands along the
Yangtze River as part of a water resource conservation project
for the Yangtze River
basin initiated in 2007
through a partnership
between The Coca-Cola
Company and the WWF.
Coca-Cola Taiwan’s Bonaqua water brand builds on the
sustainability concept originating in the I LOHAS brand in
Japan. As part of its own sustainability project, Coca-Cola
Taiwan launched Bear-Love, an initiative to protect Formosan
black bears and their habitats. The company pledged to
donate NTD1 (US $0.03) to the Formosan Black Bear
Preserve Foundation for each Bonaqua PlantBottle3 returned
at designated retailers. As of June 30, 2011, the initiative
raised NTD1 million.
SustainablePackaging
Special Olympics Unity Cup Held at 2010 FIFA World Cup Stadium in South Africa
Active Healthy Living
Empowering 5 Million WomenEntrepreneurs by 2020
Community
Expanding WaterStewardship Initiativesin the Asia Paci�c
WaterStewardship
Water Brand Helps Protect FormosanBlack Bears
South Africa
Worldwide China
TaiwanBonaqua
The C
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For inquiries concerning this report:
Coca-Cola (Japan) Company, Limited4-6-3, Shibuya, Shibuya-ku, Tokyo, Japan 150-0002Consumer Service Center: 0120-308509 (Toll free)
http://cocacola.co.jp (Japanese only)
The Coca-Coca Sustainability Report 2011 is produced from FSC-certified paper, vegetable ink and VOC-free ink using a waterless printing method.
Coca-Cola, Coca-Cola Zero, Real, Georgia, Sokenbicha, Kurosae, Aquarius, Vitamin guard, Ayataka, Fanta, Sprite, Real Gold, Qoo, Minute Maid, goonew, Kochakaden, Mori-no-Mizu Dayori, I LOHAS, Karada Meguri-cha, OLO OLO are trademarks of The Coca-Cola Company.Canada Dry is a registered trademark of Canada Dry Corporation Limited.©The Coca-Cola Company
Publication date: September 2011Sustainability Development Of�ce Public Affairs & CommunicationsCoca-Cola (Japan) Company, Limited