SUSTAINABILITYREPORT

2017Growing our value

through sustainability

Contents

04 Statement from the Managing Director06 General Manager’s Quote07 Our Sustainability Journey

STRATEGY AND ANALYSIS

ORGANISATIONAL PROFILE

OUR PEOPLE

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

OPERATIONAL EXCELLENCE

CSR

CORPORATE GOVERNANCE

SUSTAINABILITY PERFOMANCE

09 Overview10 Our Business11 Our Vision12 History and Ownership13 Structure of Organisation14 Product and Service Portfolio

17 Our People21 5by20TM Women Empowerment Initiative23 Occupational Safety and Health26 Wellness27 Human Rights29 Child labour

15 Reporting What Matters16 Materiality Analysis Matrix

41 Striving for Operational Excellence44 Our Contribution to Sustanable Development

Goals

49 Corporate Social Responsibily

54 Our Corporate Governace, Ethics and Integrity58 Stakeholder Analysis60 GRI Index

30 Our Sustainability Performance31 Climate Change and Energy35 Water37 Waste39 Compliance

2

3

Managing Director’s Statement

Our road to sustainability at Schweppes Holdings Africa Limited began in

earnest during the year 2016 when we conducted a social and economic impact study as the Coca-Cola system in Zimbabwe which included our beverage business – Schweppes Zimbabwe Limited. The realization that our business makes such significant contribution to the economy and affects the well-being of many stakeholders required a more deliberate effort of managing the social, economic and environmental touch points to build a strong relevant business. The year 2017 saw a greater effort at obtaining commitment from the business leadership and key individuals at tracking sustainability metrics based on the 17 UN Sustainable Development Goals led by the Marketing and Public Affairs function. We had various employees attend training sessions on Sustainability and Sustainability Reporting GRI guidelines facilitated by well-seasoned practitioners some of whom continue to walk alongside us as we increase our thrust to be

The business has over the years invested

in many community development initiatives purely out of being a responsible corporate

citizen.

a sustainable business. The work involved determining key areas that are material to sustainability for our business. At the core, we have Economic performance, Occupational Safety and Health, Water, Energy, Waste, Human Rights, Compliance, Communities, Climate change, Employment and Labour Relations, Social Responsibility, Grievance Handling and Sustainability Governance as key focus areas. Our beverage business unit by virtue of being part of The global Coca-Cola System was well positioned to lead the process by focusing on additional metrics besides the energy and water which have long been tracked and reported on as part of TCCC reporting requirements. The focus of the 2017 report is therefore solely on our beverage division – Schweppes Zimbabwe Limited. In the coming year, we will be reporting on sustainability progress within the whole group. SZL have numerous Quality, Health, safety and environment certifications which have assisted to ensure that our

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internal operations meet international standards. Safety is a priority for the organization for both internal and external audiences who enter our premises. Our thrust is to operate with zero injuries by taking a proactive stance and supplying adequate resources to management for that purpose. The business unit is audited on a frequent basis by TCCC and we are pleased to report having passed all 2017 quality audits. The business has over the years invested in many community development initiatives purely out of being a responsible corporate citizen. Most of these projects have formed part of the sustainability successes that we will be sharing in this and future reports. We have supported vendors to participate in our value chain and supported other health, education and sport related social activities. Employee wellness also plays a key part of our social investment which has seen us supporting our staff participation in such activities as walkathons, marathons and triathlon. The business sponsors a lot of similar sporting events as well for the benefit of communities. The areas of health in our nation is in critical need of support and we have played our part by not only engaging our employees on healthy lifestyles and awareness of certain health scares but also supporting hospitals and private organization such as Parirenyatwa, Harare Hospitals, Kidzcan, Operation of Hope and many others in various ways for the benefit of patients. Women’s empowerment will continue to be a key focus area of support both internally and externally now and in the future. We have 20% female staff in various capacities in the organisation with 25% females in senior managerial roles. Externally, we have set up 200 female vendors in business as part of TCCC global initiative to empower 5million women by 2020 – 5by20. The business has begun in earnest to track carbon emissions during the reporting period to enable reduction of our carbon footprint. We will see significant strides in the coming year towards setting and tracking of targets around carbon emissions to

mitigate the negative effects of climate change. Strict management of water and energy metrics will continue with a view to implementing big projects such as solar electrification as part of our future business plans. Our shareholding in the PET Recycling Company of Zimbabwe – Petrecozim as pioneers of the company together with a few like-minded corporates, was a strategic move to facilitate reduction of our carbon footprint. We have made significant capital and operating expenditure investments on an annual basis and will be working closely with the management team to ensure a steady increase in the amount of post-consumer PET packaging from our operations that is being recycled. We have also been involved in packaging reuse projects that has seen our CSR investment targeting disadvantaged groups that are able to earn a living from reusing our packaging creatively. As Schweppes Holdings Africa Limited increases focus on matters of sustainability, the following UN Sustainable Development Goals which are most relevant to our business will take centre stage and we will measure our performance on these diligently:• Goal 6: Clean Water and Sanitation• Goal 12: Responsible Production

and Consumption• Goal 3: Good Health and Wellbeing• Goal 5: Gender Equality• Goal 8: Decent Work and Economic

Growth• Goal 13: Climate ActionBeing the current chair of the Business Council for Sustainable Development in Zimbabwe, I am personally committed to leading Schweppes Holdings Africa Limited on this journey of sustainability reporting despite that fact that our business is currently not a listed entity. This is a matter of integrity and accountability for leading and managing a socially responsible business that will endure well into the future.

Charles Msipa

MANAGING DIRECTOR

5

General Manager’s

Quote

Sustainability is part of SZL’s value system. It is the way we manage and operate our

business, a business method that ensures safety, efficiency, quality of our products and responsibility in a manner that protects the company’s employees, communities, stakeholders and the environment, now and in the future. Sustainability allows us to best serve our customers, secure profits and drive long term prosperity.

Demos MbauyaGeneral Manager

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OurSustainability

Journey

Unaiswi Nyikadzino

MARKETING AND PUBLIC AFFAIRS DIRECTOR

It is a privilege to be championing sustainability within the Group. The journey is not without its challenges, such as that of obtaining buy-in and commitment from individuals across the organization. Sustainability is everyone’s business. It does not sit in one function but permeates through-out the organization that is committed to doing the right thing. All organizational processes and systems of operation present an opportunity for us to impact the environment and society in a more positive way for the benefit of future generations. The SDG Compass has been a useful tool is helping us to navigate this broad topic and develop greater understanding and focus on how we can drive most of the 17 SDGs from within our business.

7

Supply Chain Director’s

Quote

Our focus on sustainable business practices goes beyond our organization to include our suppliers who are a key stakeholder in our business and provide our company with raw materials, goods and services. We want all our suppliers to also enhance their social license to operate in their respective areas of operation and increase the participation of women and SMEs in the same way as we do but without compromising on quality and corporate governance.

Chamu MadamombeSupply Chain Director

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Overview of Report

Schweppes Holdings Africa Limited is pleased to present the Sustainability Report for the Year 2017. This report is pivotal to our business

growth as well as to our stakeholders as it discloses social and environmental business performance. The report has been complied guided by the Global Reporting Initiative (GRI) Standards G4 Standards – “In accordance – Core”.

The sustainability report is focused on our beverage division SZL and will be produced on an annual basis. The first report of SZL for the year 2017 has not been externally assured but future reporting periods will consider incorporating assurance of indicators. During the period under review there are no restatements as this is the first report.

For further information and enquiries on the sustainability activities of the Group and the sustainability report the internal contact details are given below:

Unaiswi Nleya NyikadzinoDirector of Marketing and Public Affairsunyikadzino@schweppes.co.zw

In terms of the Sustainability performance and environmental indicators the data that is provided for the year 2017 will serve as the baseline year for reporting and future years will be assessed on the existing performance in terms of environmental and social sustainability. The Sustainability Section of the report has boundaries focusing on Schweppes Zimbabwe Limited Harare plant.

9

Our Business

The product portfolio currently includes cordials, fruit juices, bottled water and flavoured drinks. These products are marketed under well

renowned brand names; Mazoe, Minute Maid, Just Juice, Bonaqua and Schweppes Water.

The company currently has ten operational sites in Zimbabwe. These are Harare, Bulawayo, Chinhoyi, Kwekwe, Mutare, Chiredzi, Voctoria Falls, Bindura, Beitbridge and Masvingo. The operations in Kwekwe, Chinhoyi, Masvingo and Mutare are depots with warehouse and distribution services. Manufacturing is undertaken at the two branches, Harare and Bulawayo. The head office is based at the Harare branch site. The branches have warehousing and distribution facilities from which they also supply the depots.

Schweppes Zimbabwe Limited is a manufacturer and distributor of non-carbonated, still beverages under licence from The Coca-Cola Company.

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Vision

Mission

Values (ACE-IT)

ACEIT

To be the number one liquid food and beverage business in Africa.

We commit ourselves to maximise stakeholder value by developing and supplying high quality liquid foods and beverages.

Accountability

Creativity

Excellence

Integrity

Teamwork

VISI

ON

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03

Zimbabwe Stock Exchange listing of Schweppes Central Africa Limited

following the merger of Spa Foods with Schweppes International

Schweppes Central Africa Limited had distribution depots in Mutare, Masvingo,

Kariba, Chinhoyi, Kwekwe and Gweru distributing a full range of carbonated and

non-carbonated products

Cadbury Schweppes Limited agrees to sell all the carbonated and crush product brands to

The Coca-Cola world-wide.

Schweppes Central Africa Limited purchases Central African Bottlers from Rhodesian Breweries

Schweppes Central Africa Limited agrees to discontinue all carbonated products and give the Schweppes franchise to United Bottlers who in turn discontinued the Krest range whilst Pepsi and Tarino where taken off the market

1945

1980

1998

1962

1989

Spa Foods operating from a small soft drink factory in Bulawayo develops Mazoe Orange Crush

193001

02

04

05

06

09

Schweppes Exports (Private) Limited is incorporated as part of efforts to increase exports of Mazoe brands regionally in order to generate foreign exchange to

finance raw material requirements during harsh economic times.

Schweppes Zimbabwe Limited acquires 100% stake in Beit Bridge Juicing (Private) Limited

Schweppes Holdings Africa Limited launches Sustainability Reporting Initiative

The Coca Cola Company concludes a share purchase agreement in respect of Schweppes Zimbabwe Limited and Schweppes Exports (Private) Limited with Delta Beverages (Private) Limited 49% and Whaterton Investments (Private) Limited (20%Management and 31% Employee Share Trust)

Incorporation of Best Fruit Processors (Private) Limited, a joint venture with the Agricultural and Rural Development Authority

2006

2014

2017

2009

2015

Schweppes Zimbabwe Limited is acquired by The Coca Cola Company as part of its global acquisition of Cadbury Schweppes International’s beverage brands

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Schweppes Zimbabwe Limited publishes its first Sustainability Report.

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History and Ownership

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(Private) Limited

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39.2% 60.8%

51%

100%

70%

30% ARDA

49%

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Structure of Organisation

(Private) Limited

( )

39.2% 60.8%

51%

100%

70%

30% ARDA

49%

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Product and Service Portfolio:Beverages Division

MAZOE SYRUPS

MINUTE MAID NECTARS JUST JUICE FUZE TEA

MINUTE MAID JUICE DRINKS MINUTE MAIDPULPY ORANGE

SCHWEPPESSTILL WATER BONAQUA

MAZOE ORANGE CRUSH

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Reporting what matters

As a growing business that is sensitive to the needs of its stakeholders and the issues that

are key to drive our business growth and prosperity we believe that our business model should be anchored on sustainability. Our material issues are categorised into economic, social and environmental indicators that reflect on the performance of our business in the period under review.

Determination of materiality for this reporting period was spearheaded by the Sustainability Reporting Team that is headed by the Marketing and Public Affairs Department. The team comprised of representatives from all departments of SZL in order to seek value-adding information from all parts of the organisation. The material issues were also identified through a formal meeting of the Committee as well as at departmental level and these are escalated to the Executive of the organisation to facilitate endorsement. Constant liaison with employees at all levels allows the organisation to identify existing material issues as well as emerging issues that should be reported on. Other material issues have been identified due to statutory obligations of the organisation and we continually work to incorporate them into operations to ensure full compliance.

As this is our first Sustainability Report, we ensured that we also reported on the Sustainable Development Goals

SDGs that are relevant to our business operations. Schweppes Zimbabwe Limited recognises that for Sustainable Development Goals to be achieved, as the private sector we have a key role to play throughout our operations and value chain. The report has also only selected the SDGs that are most relevant to SZL in order to report what matters. A prioritisation process was carried out by the Sustainability Reporting Team in order to determine the SDGs that are of most material effect to SZL and this provided the basis of building the report and indicators.

The analysis of materiality identified various issues including the emissions, energy, water, chemicals, compliance, climate change, employment, labour practices, employment, human rights, safety as well as economic contributions to the community. As this is our first report including sustainability aspects, we carefully selected material issues that could be managed in the initial reporting period. The matrix on the next page shows material issues as well as their prioritisation and importance. In determining materiality we also determined the Sustainable Development Goals as key to our reporting and transparency.

We have developed the 2017 Sustainability Report on the basis of issues that are material and relevant to our business. The determination of material issues has been guided by the Global Reporting Initiative (GRI) Framework G4 Guidelines and coordinated by our Sustainability Reporting Team of Experts drawn from various departments of the organisation.

Determination of materiality for this reporting period was spearheaded by the Sustainability Reporting

Team that is headed by the Marketing and Public Affairs

Department.

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Materiality Analysis Matrix

Highly Material• Economic performance• Occupational Safety and Health

(OSH)• Water• Energy• Waste• Human Rights• Compliance• Communities• Climate change• Employment and Labour Relations

• Social Responsibility• Grievance Handling• Sustainability Governance

Material• Contractor management• Materials

Important• Biodiversity• Air quality

Highly Material Economic performanceOccupational Safety and

Health (OSH)WaterEnergyWaste

Human RightsCompliance

CommunitiesClimate change

Employment and Labour Relations

Social ResponsibilityGrievance Handling

Sustainability Governance

Material

Contractor management

Materials

Important BiodiversityAir quality

Important Material Highly Material

Significance to our business

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Our People

SCHWEPPES SUSTAINABILITY REPORT 2017

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Our People

Schweppes Zimbabwe Limited is a preferred employer of choice. We believe that our success is anchored

on the diversity of the people whom we work with. Relationship management is at the core of our business strategy and we strive to build new relationships whilst maintaining existing ones. We employ people directly, whilst we also work with contractors. As at the end of the reporting period under review, Schweppes Zimbabwe Limited was currently employing 477 full time employees. In addition SZL employs contractors and

HUMAN RESOURCES AND GENDER MAINSTREAMINGKey Performance Indicator Yr 2017Number of Employees (Full Time) 477Number of Contractors and Part Time employees 478Total Number of Employees (Part Time and Full Time) 955Number of Women Employed by the organisation 191Total Number of Men Employed by the Organisation 764Percentage of women in the workforce 20%Number of women owned business contractors in supply chain 30Number of days recorded absenteeism 29Number of training programmes organised for employees 40Number of employees trained for continued professional develop-ment

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Employee Turnover Rate 3%

part-time employees. The total number of employees including contractors is 955. The company employs women and men alike without discrimination. During the period under review the current workforce is comprised of 20% women. Schweppes Zimbabwe Limited encourages women to take up positions at all levels including Senior Managerial and Executive positions.

Engagement of people remains the core of our activities and in 2017 several staff members

continued their trajectory of continued professional

development with various institutions. The company continued to

ascribe to various labour laws of the country as well as International

Labour Organisations conventions that deal with Human Rights. As a leading member of

the Coca Cola Group we implemented the 5 by

20 Initiative which seeks to empower 5 Million

women by the year 2020 through the Coca Cola

global value chain.

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Percentage of women in the workforce

Training Programmes organised for employees

Women Owned Business Contractors in the Supply Chain

The Number of Employees trained for Continued Professional Development

Number of fatalities in the workplace in 2017

Women vendors empowered

Number of contractors fatalities on site

Sustainability Indicators - 2017

20%

40

30

55

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Women Empowerment Initiative

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5by20TM Women Empowerment

Initiative

The global realisation that women play a key role in society is widely recognised as a key to sustainable human development. Given this realisation, we have implemented the “5by20TM” Initiative to facilitate empowerment and access to equal opportunities of women.

Year daily sales P/Cs Daily Gross Revenue Monthly Net Profit Annual Net Profit Growth

2014 1.5 $15 $66 $792

2015 3 $30 $108 $1296 61%

2016 6 $72 $360 $4320 30%

2017 8 $90 $441 $5295 82%

SZL adopted the 5by20TM initiative in 2015 after the global call from The Coca Cola Company to empower

5 million women by 2020 through the The Coca Cola Company global value chain. Given the crucial role of women in our system and the economic barriers women face, The Coca Cola Company made women’s empowerment a priority through the 5by20TM initiative. The 5by20TM initiative aims to enable the economic empowerment of 5 million women in our global value chain by 2020. Women are not only pillars of our business but also pillars of their communities. Women invest a sizeable portion of the money they earn in the health and education of their children and their local communities creating a tremendous economic ripple. Women empowered through 5by20TM have managed to send their children to school as

well as buy land for domestic development. Unleashing the entrepreneurial potential of women is the surest way to make businesses sustainable and the most effective way we can help families and communities prosper. When we invest in the success of women, we invest in our own success and in the success of communities around us. There is a low rate of absenteeism from women vendors which ensure success of SZL business and consistent income for their families. Since the adoption of the initiative, SZL has experienced year on year growth in volumes, ensuring consistent revenue growth. 5by20TM initiative has enabled SZL to contribute to the Goal 5 - Gender Equality, to expand economic growth, social development and enhance business performance. SZL has made a conscious effort to recruit female vendors on a yearly basis

since 2014 hence affording women the opportunity to trade in a once dominated male industry. SZL has managed to expand business relationships with women owned enterprises, including small businesses and women entrepreneurs. Currently a total of 200 women vendors have been empowered through SZL’s 5by20TM initiative. The empowerment of women through the 5by20TM Initiative has achieved significant impacts in revenue growth. Realising that women also bear the brunt in communities in the face of climate change, water scarcity and energy; we believe empowering them will facilitate the building of stronger communities.

21

Employment By Age

We have a diverse age group of dedicated, motivated and driven individuals. Whilst we also do

that we also maintain adherence to legal requirements and preventing child labour. These people jointly and individually facilitate success of our organisation.

Age Number of Employees18 - 25 9%26 - 35 57%26 - 45 27%45 - 55 6%60 - 65 1%

In the year under review our employee turnover rate was 3%. As an organisation we continue to offer attractive working conditions and remuneration that is commensurate with qualifications. Employee satisfaction is our key priority and focus for many years to come.

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Employment by Age – Year 2017

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Occupational Safety and Health - OSH

Schweppes Zimbabwe Limited believes that a safe and healthy workforce is a productive workforce.

The company has embedded a safety culture in all its operations aiming to achieve zero harm. In line with this thrust, we have adopted Occupational Safety and Health Policy at company level. We continue to promote the risk assessment process and also accident prevention culture. We believe that everyone is their “brother’s keeper”. Through the implementation of policies, procedures, operational controls and behavioural approaches we are able to manage hazards including being able to respond to emergency situations.

SZL Implements an Occupational Safety and Health Management System based on OHSAS 18001:2007. Contractor management and supervision helps us to monitor, assess and improve the safety performance of our contractors. As our sustainability reporting framework grows we are strengthening the mainstreaming of Environmental Health and Safety (EHS) performance in the supplier evaluation starting in the year 2018. The organisational structure has appointed a Safety Health and Environmental Manager to coordinate issues of employee safety.

Everyday our families expect us to return home without injuries and also expect our workplaces to be free from any fatalities happening as a result of work related incidents

SZL Implements an Occupational Safety and

Health Management System based on OHSAS

18001:2007.

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Our Safety Performance

During the Year 2017 our safety programmes continued to encourage employees to

mainstream safety and health principles in their departmental processes. There were zero (0) fatalities at Schweppes Zimbabwe Limited and this was achieved through teamwork, dedication and effective awareness. We unfortunately had 2 lost time injuries at the company. The number of contractors injured on our site was zero (0) and we continued

to emphasise the need for contractor safety management. The number of medical cases was 7 in the period under review. As an organisation we strive to ensure that employees receive proper medical care in the event of work related injuries. All incidents are reported and investigated in order to find a root cause and to institute corrective action. Our SHE internal audit teams in 2017 carried out safety audits in order to identify opportunities for improvement.

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In order to promote an injury free workplace in 2017 we implemented the following initiatives to promote a

safe working culture:

• Behaviour Based Safety (BBS) Card System

• Near miss reporting incentive scheme• Monthly awareness

Looking ahead, we shall continue to encourage employees to aim for the highest standards in safety including the adoption of ZERO LTI Competition to commence January 2018.

Key Performance Indicator Yr 2017Number of medical cases 7Number of First Aid Cases 25Number of Lost Time Injuries 2Number of Fatalities 0Lost Time Injury Rate LTIR 0.47LTISR 5.16Lost Time Injury Frequency Rate LTIFR 2.14Number of contractors injured 0Number of Contractor Fatalities 0

We have since realised that when employees are involved in occupational safety and health initiatives, they take full ownership and responsibility and are also encouraged to influence others in promoting safe working behaviours.Schweppes Zimbabwe Limited believes that all incidents can be prevented and hence should not be allowed to happen in the first place. Our Top Management continues to show advanced commitment to employee safety by provision of adequate resources, participation and consultation as specified in international safety standards.

Occupational Safety and Health Management key performance indicators for 2017

1 Calculated based on a Million hours worked

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Wellness – Our approach to sustaining healthy living

Wellness activities were incorporated in the corporate calendar in 2017 including

activities that were carried out in collaboration with Bon Marche. Schweppes Zimbabwe Limited promotes healthy lifestyles of its employees, contractors, stakeholders and communities. Our wellness programme also promoted the prevention of HIV/AIDS as well as non-communicable diseases.

Realising that the communities in which we live give us significant support throughout the value chain, we partnered with stakeholders such as Bon Marche in sporting events within the community. This was a mechanism to promote healthy living, exercising and promoting fitness within the communities. The promotion of the wellness initiatives will also ensure that we get employees that practice wellness virtues.

Case Study: Partnership with Bon Marche on Marathons and Wellness

Promoting healthy lifestyles through sport and fitness, should be inculcated in our society as a means of dealing with lifestyle conditions affecting the world in the 21st Century.

In 2017 Schweppes Zimbabwe Limited participated in Bon Marche Marathons and Wellness activities. We pride ourselves for the collaboration with Bon Marche in building communities with wellness as the hallmark of their lifestyles.

Bon Marche, through its “Live Life, Feel Good” initiative, created The Bon Marche Powerwalk and Walk-Aerobics series, which are wellness challenges where individuals are invited to showcase their fitness levels through running, walking or aerobics. There are 4 series each year, spread throughout each quarter of the year. Schweppes Zimbabwe Limited has partnered with Bon Marche for the past 2 years - 2016 and 2017, where Bonaqua has been made the official water for the events. The deal was brokered by Key Accounts, while our Special

Events Team has spearheaded the initiative through effective manning of water points and hydrating participants both in course and at the main venues. Our participation has been extended to ALL@SHAL, with associates being encouraged to participate as part of the Schweppes Holdings Africa Limited (SHAL) Wellness Initiative. Up to 100 SHAL members participate at each Marathon. This has turned out to be a very strong team building initiative, and the bonds have spilled over into a WhatsApp Platform group created by the Special Events team – SHALSPORT, whereby over 140 SHAL associates communicated daily on issues pertaining to sport. A weekly quiz has also been established on the platform, initiated by the General Manager in the first instance, and now championed by Customer Marketing. All this has created

a very good team building platform for associates from across all ranks and title in the organization. Sports teams have also been formed and encouraged to compete with other organizations as part of their health and wellness programs. A health body is a healthy mind. Through the Sports initiatives, deals were brokered and business relationships were also fostered, SZL has addressed Sustainable Development Goal 3 - Good Health and Well Being, giving access to its employees and other members of the community to participate in healthier living activities. This has helped improve social interactions between members of staff as they discuss issues relating to sport and wellness. Part of the exercise involves health care practitioners giving hints and tips on promoting a healthier lifestyle.

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Human Rights

Article 4 of the Universal Declaration of Human Rights specifies that “No one shall be held in slavery

or servitude; slavery and the slave trade shall be prohibited in all their forms”. In light of this, Schweppes Zimbabwe Limited has committed itself to ensure that employment is voluntary and that the working conditions are favourable and relationships are mutually beneficial. We continued in 2017 to treat all our

Schweppes Zimbabwe Limited joins all progressive companies in the world in the fight against modern slavery. Our workplaces are designed to be areas of fulfilment of goals and aspirations of individuals and corporates. Workplaces should never be used to exploit people. Our company has ensured that all workers have favourable contracts that give them both flexibility and ability to make decisions independently. The work relationships are entered into voluntarily. Our commitment to ensuring adherence to human rights is the cornerstone of our success and hence our strategy is to ensure that we constantly review our value chain partners including contractors in order to identify any areas that need action.

stakeholders with dignity and respect as stipulated by the Article 1 of the Universal Declaration of Human Rights.

The company has zero-tolerance to oppression and acts of workplace slavery are unacceptable. Our company believes that employment is a means of development and transforming lives of people and hence exploitation has no place in our activities.

Our operations uphold the highest standards of Human Rights and employees have freedom of association and freedom of expression. As a company we believe that every human being should be treated with respect, honour and dignity.

ZERO TOLERANCE to workplace slavery

“All human beings are born free and equal in dignity and rights.

They are endowed with reason and conscience and should act towards

one another in a spirit of brotherhood” – Universal

Declaration of Human Rights.

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Human Rights - cont’d

The company has ongoing initiatives to uphold human rights. Schweppes Zimbabwe Limited employees have

the freedom to associate with a Trade Union of their choice. In addition our recruitment policies do not discriminate prospective employees based on age, or religion. We are an equal opportunity

employer. Furthermore as at 2017, the company has already published a Human Rights Policy in line with international Best Practice. People with disabilities are not discriminated and we facilitate their equal opportunities and professional development.

Human Rights Initiatives

Sustainability Aspect Activities to address the issues

Objectively Verifiable Indicators or examples of milestones

Human Rights • Employees have the freedom to choose any Trade Union of their choice

• Strict Adherence to stipulated policies

• Voluntary Employment • Rationalisation of Salaries – Equal Remuneration for Equal Job done

• Recruitment without discrimination of age, race, religion

• Compliance to the KO Supplier Guiding Principles

• Publicised the Human Rights Policy

• Zero tolerance to discrimination based on gender and disabilities

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Child Labour

We value children and therefore strive to eliminate all forms of their exploitation. During the

period under review we ensured that within the workforce and throughout our operations there are no cases of

employing underage personnel. Our job adverts clearly specify age restrictions to prevent child labour. We continue to foster this principle throughout the value chain.

Sustainability Aspect Activities to address the issues

Objectively Verifiable Indicators or examples of milestones

Child Labour • Job adverts specify age restriction, an applicant should be at least 18 years of age

• Compliance to the KO Supplier Guiding Principles

• SGP training and audits according Coke standards

Our organisation believes that children are the future of the world and leaders of their communities in years to come.

Prevention of child labour initiatives

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Our Sustainability Performance

Sustainable development is at the core of our business strategy and all stakeholders play an active role in promoting eco-friendly initiatives. Sustainable development is the development which meets the development

of the present, without compromising future generations to meet their own needs. We have recognised climate change, water, energy, chemicals and waste as key material issues. Our sustainability performance is enhanced by the implementation of Internationally recognised standards and is certified to ISO 14001:2004; ISO 9001:2015, OHSAS 18001:2007 and ISO 22000:2005. We are in the process of facilitating transition to new requirements for the ISO 14001:2015 in 2018 and we have completed transition for ISO 9001:2015 awaiting receipt of certification.

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Climate change and Energy

Our organisation has stepped up climate mitigation and adaptation activities. In order

to contribute to mitigation, we are monitoring our energy intensity and in order to facilitate adaptation we are implementing efficient water utilisation and setting targets for specific water consumption. Schweppes Zimbabwe Limited has started monitoring Greenhouse Gas Emissions and has ensured that emissions from various sources are tracked.

We also are committed to ensure that Zimbabwe contributes to its international commitments as specified by the Paris Agreement and the Nationally Determined Contributions. Zimbabwe has committed to reducing its Greenhouse Gas Emissions by 33% by the year 2030 in comparison to pre-industrial levels. Our emissions in the year 2017 were monitored on a quarterly basis in line with regulatory requirements. We have also mainstreamed requirements

of the National Climate Change Response Strategy (NCCRS) as well as Environmental Management Act 20:27.

Moving ahead, we look forward to support the ongoing efforts to implement a National Climate Policy. The company has already started exploring the possibility of adopting renewable energy technologies including solar energy. Our work is in line with national efforts and contributes to attaining the goals of the proposed Renewable Energy Policy.

We have started in 2017 to track our carbon footprint from Scope 1 and Scope 2 Emissions. However, the company is still requiring significant improvements in selected departments in order to boost capacities of tracking emissions. This is still an area requiring improvement. Our report will provide historical data on Scope 1 emissions as well as Scope 2 emissions electricity.

YEAR 2017

Energy Source Annual Energy Use Greenhouse Gas Emissions KgCO2E

Greenhouse Gas Emissions t CO2 E

Scope 1Coal 502 490 kg 1214751.526 1214.75Petrol 55 390 litres 121647.3518 121.65Diesel 52 417 litres 136893.3396 136.9Scope 2Electricity 4791030 kwh 2964363.095 2964,4 Total GHG Emissions 4437655.312 4437.7

Energy Sources and Carbon Footprint

NB: Assuming Emission Factor for Electricity is 0.6187319 kgCO2E; Source ECOMETRICA Grid Emission FactorsNB: Assuming Emission Factor for Petrol (blended) is 2.196197 kgCO2E; Source - DEFRANB: Assuming Emission Factor for Diesel is 2.61163 kgCO2E; Source - DEFRANB: Assuming Emission Factor for Coal is 2417.464 kgCO2E; Source - DEFRA

2 The Scope 1 emissions presented based on coal, diesel and petrol. In the report for 2018 more comprehensive sources will be covered.

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Climate change and Energy - cont’d

We use various energy sources at the Schweppes Zimbabwe limited Harare plant. Electricity

supports a significant portion of our operations and our Annual Electricity Consumption for the Year 2017 was 4791030kwh. Our operations also use fossil fuels such as coal, diesel, petrol and these generate emissions to the environment. Other emission sources are from refridgeration and air conditioning as a result of Chlorofluorocarbons (CFCs). For the Financial Year 2017, the company has been strengthening full capacities to account for emissions and more indicators will be reported in the 2018 sustainability report. However for the diesel consumption, the organisation utilised 52 417 litres which translated to 136.9 tonnes of Carbon Dioxide equivalents (tCO2E). In terms of consumption of petrol for various operations and activities in the year under review 55 390 litres were used, which contributed to 121.65 tonnes of Carbon Dioxide equivalents (tCO2E). Our organisation has started carbon footprinting in 2017 and we have

For the year 2017 the Specific Energy Consumption was 0.075 kwh/l. Our organisation has embarked on deliberate actions through engineering, management and technical solutions to facilitate reduction in energy intensity in order to ensure that the company makes maximum use of energy resources per unit product. This is also in line with the requirements of Coca Cola Group to improve efficiencies. Therefore, wasting energy resources is detrimental to our

opportunities for improving in the years to come. The petrol accounted for is limited to plant equipment only mainly folklift trucks, whilst the diesel reported is limited to plant equipment, folklift trucks generators. The vehicle fleet is excluded and will be reported in the 2018 report.

Our emissions are calculated factoring in the various Greenhouse Gas Emissions namely Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), HydroFluoro Carbons (HFCs), Perfluocarbons (PFCs) and Sulphur Hexafluoride (SF6). Our emissions are calculated based on Carbon Dioxide Equivalents (CO2E) which is a measure that factors in all the Greenhouse gases specified by the Kyoto protocol. We also follow guidance based on the Department for Environmental and Rural Affairs of the United Kingdom. Further guidance in our carbon footprint was also from the World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol.

aims of sustainability and increases emissions. During the year under review, 2017 our Sustainability Reporting Team went through training on tracking energy intensity and carbon foot-printing. The Total Energy Consumption considering electricity, petrol, diesel and coal was 39 918 GJ.

Year Annual Energy Consumption

electricityProduction Specific energy

consumption

2017 4791030kwh 64,076,921 Litres 0.075 kwh/l

Energy Intensity and Resource Efficiency

3 The calculations for SCOPE 1 Emissions for the year 2017 does not yet include vehicle fleet and CFCs as the company had not yet been measuring them. The petrol accounted for included plant equipment for folklifts only. Starting in 2018 all SCOPE 1 emission sources will be included.

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Climate change and Energy - cont’d

Over 1 billion people in the world lack access to electricity. This means that the world is

experiencing energy poverty and many people will have to rely on biomass for their energy needs. This could come at a cost to the environment and also can generate significant emissions. Schweppes Zimbabwe Limited has identified renewable energy as a low hanging fruit and a sustainable pathway. In the years to come we shall be considering identifying parts of our operations where we can implement renewable energy technologies such as solar. An area that we need to improve is the uptake of renewable energy. Our Top Management and Engineering are currently assessing the feasibility of renewable energy.

Schweppes Zimbabwe Limited believes that dealing with climate change will require mitigation and adaptation. Our raw materials are sought from the agriculture value chain and as such we are vulnerable to the effects of climate change. It is in our interest to encourage our suppliers to also look at climate adaptation including enhanced capacities in irrigation. When we consider the savings that can be made from efficient irrigation such as drip irrigation and also savings from efficient utilisation of process water, we recognise that climate adaptation can have both environmental and business benefits.

Year Annual

Cumulative Energy Consumption

Production Specific energy consumption

2017 39 918 277 MJ 64,076,921 Litres 0.56 MJ/l

Annual Energy Consumption and Energy Intensity

4 Total Energy Consumption figures are based on International Energy Agency conversion factors

Climate Adaptation and Mitigation – Two sides of the same coin?

Climate change is considered the biggest challenge facing humanity. There are

two broad approaches which stakeholders can implement. These include mitigation and adaptation. Mitigation is concerned with actions to reduce greenhouse gas emissions such as energy efficiency

and renewable energy technologies such as solar. Adaptation considers how to cope with effects climate change including water efficiency, using drought resistant varieties as well as using efficient irrigation methods such as drip irrigation. The Intergovernmental Panel on Climate Change predicts a temperature

increase of 2 degrees celsius if we continue with Business as Usual (BAU). Our strategy as Schweppes Zimbabwe Limited is to pursue both mitigation and adaptation through constant monitoring and measuring of our emissions and having performance indicators focused on water saving.

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Climate change context

2 Degree Celsius

33% 40%

2.47l/l

10 000GWh/Year

144tonnes

90.2% 4xper year

Commitment of the Paris Agreement of preventing

temperature rise

Nationally Determined Contribution target of Greenhouse Gas Emissions

(GHG) reductions.

Increase in Carbon Dioxide since pre-industrial levels

Schweppes Zimbabwe Limited Specific Water consumption for the Year 2017 achieved through

water saving initiatives and climate adaptation

Zimbabwe’s annual solar energy potential

Waste Recycled

Percentage of Solid Waste Recycled Monitoring GHG

Emissions

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Water

Water is an integral part of the operations and activities of Schweppes Zimbabwe limited.

We require water for various purposes ranging from products such as Bonaqua, process water, cooling and cleaning processes. Due to the highest standards and legal requirements for food hygiene in our processes we require water and hence consider the Sustainable Development Goal Number 6 on Access to Clean Water and Sanitation as key to our growth and survival. We abstract water from various sources including groundwater and municipal water. In all cases we have invested in world class water treatment technologies such as chlorination, flocculation, sand-filtration, carbon filtration, polishing filtration, reverse osmosis, UV treatment, and Ozone treatment. Our bottled water is the preferred product on the market and it has also won several awards including Product of the Year under the National Quality Awards and also the Southern Africa Quality Awards.

Schweppes Zimbabwe Limited believes that every drop of water counts and hence we have promoted a culture of water savings throughout all facets of the company including production, canteens, rest rooms, cleaning and

Our Total Annual Water Consumption for the year 2017 was 158,483,500 litres. Municipal water contributed to 115,860,500 litres whilst groundwater contributed to 42,623,000 litres. Schweppes believes that water resources must be used efficiently and hence we track our water utilisation with respect to our production. During the period under review we had a Total Production of 64,076,921 litres of product. In this regard our Specific Water Consumption was 2.47 l/l. We shall continue to track our water productivity in the upcoming years. Some of the measures that we implemented in 2017 include metering of water consumption, repairing water leaks, Cleaning in Place (CIP), backwash recovery, use of high pressure cleaning nozzles and awareness workshops.

any other process. Measurement of water resource utilisation has enabled us to determine our water utilisation efficiency.

5 This refers to water consumption per unit

product

Source 2017Municipal 115,860,500 litresGroundwater 42,623,000 litresTotal Water Abstraction 158,483,500 litres

Year Annual Water Con-sumption Production Specific Water con-

sumption2017 158,483,500 litres 64,076,921 litres 2.47 l/l

Water abstraction by source

Specific Water Consumption

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Water - cont’d

Led by the Managing Director, General Manager and various representatives from the organisation, Schweppes

Zimbabwe Limited hosted the “2017 Water and Energy Forum”, to discuss strategies for improving water efficiency in the face of climate challenges and water scarcity as well as how to improve energy efficiency and renewable energy. We showed through this activity that as an organisation we have gone beyond waiting for regulations but are even now implementing environmental self-regulation beyond minimum compliance requirements. SZL hosted the Water and Energy Forum including bringing

together various stakeholders such as Environmental Management Agency, Zimbabwe Energy Regulatory Authority (ZERA) and City of Harare.

Wastewater is a key parameter that we monitor and manage. The organisation believes that there are significant opportunities for treatment of effluent in line with national regulations. In the year 2017, the organisation generated 10,104,000 litres. As an innovative organisation we continue to explore innovative technologies in managing wastewater in pursuit of Sustainable Development Goals (SDGs)

Year Annual Wastewater Treated and Disposed2017 10 104 000 litres

Case Study: Schweppes Water and Energy Forum 2017

KEY FACTS ABOUT THE GLOBAL WATER SITUATION

Schweppes Zimbabwe Limited hosted its inaugural “Water and Energy Forum” on 27 January 2017. This demonstrated private sector leadership in sustainability, self -regulation and voluntary initiatives of sustainability.

Our organisation clearly recognised that water and energy were key resources for supporting industrial

activity and that their unsustainable use is detrimental to society. Therefore, the forum drew various stakeholders including Environmental Management Agency (EMA), Zimbabwe Energy Regulatory Authority (ZERA), City of Harare and also selected industries such as CAFCA Limited. The forum addressed climate and water challenges, water saving strategies, pollution issues, water recycling, renewable energy, energy efficiency as well as mainstreaming water foot-printing into business processes.In addition to having representatives from Schweppes Zimbabwe Limited (SZL), the

• The global sustainable water supply is estimated to be 4200km³ per year• In 2000 global water use stood at 3950km³• In 2030 global water demand is projected to be 6900km³ exceeding global supply by 40%• The Global water demand for manufacturing industries will increase by 400% from 2000 to 2050

form also had representation from other subsidiaries of the Schweppes Holdings Africa Limited (SHAL) Group including Best Food Processors and Beitbridge Juicing Company. The Coca Cola group was well represented and also shared experiences from the Group’s perspective. Regulatory authorities also provided insights into the existing pollution problems in the country and recommended measures for the private sector and manufacturing to prevent water pollution and contribute to enhancing water quality. As a group we resolved to come up with a Strategy for Water and Energy in order to fast track efficiency improvements. From the deliberations of the Schweppes Water and Energy Forum,

it is clear that some of the measures needed to improve water and energy efficiency are low cost ‘low hanging fruits” hence need to be implemented without delay. High technology measures would also be considered by the organisation in phases taking into consideration resource availability. The organisation reiterated its commitment to continue supporting water and energy efficiency interventions

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WasteReclaim • Replenish • Retrofit

Recycling waste can also be regarded as a mechanism for beneficiating from waste. Our quest for recycling

has seen us partnering with Delta Corporation in setting up PETRECO; an organisation specialising in recycling waste PET which is an integral part of our packaging material. We have shown leadership on the market is demonstrating “Extended Producer Responsibility” and also promoting a Circular Economy

We uphold the waste management hierarchy based on the Reduce-Reuse-Recycle philosophy. Our strategy in that sustainability aspect is quantifying

Our operations generate wastewater from waste process water as well as water from cleaning processes. In the period under review we generated 10,104,000 litres of wastewater. We manage wastewater effectively including primary treatment through settling tanks and pH adjustment before disposal in municipal sewer system. Our organisation regularly

our waste generation, establishing a waste management plan and engaging competent contractors in waste disposal. In the year 2017, for the first time we have reported on our waste generation in line with the Global Reporting Initiative (GRI) Requirements (G4 Guidelines).

The year 2017 generated different waste streams including 160.5 tonnes of solid waste. We managed to recycle 91% of our solid waste as a means of resource recovery and environmental stewardship. Recycling waste reduces land pollution and facilitates creation of green jobs.

monitors water quality to ensure that it complies to legal limits. Our strategy is to also continue to research and develop innovative technologies of enhancing effluent quality and environmentally sound technologies for effluent management.

Schweppes Zimbabwe Limited has up-scaled its abilities to manage waste in an environmentally sound manner. Our strategy of waste management is based on reduction at source, identifying key waste sources and implementing Resource Efficient and Cleaner Production (RECP).

Year Total Solid Waste Generated

Total Waste Recycled or recovered

Waste recycling percentage

2017 160.5 tonnes 144.7 tonnes 90%

Solid Waste Generation and Recycling

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Case Study: Partnering for Sustainable Waste Recycling – Petrecozim

Waste and Waste Recycling – Year 2017

Water disposal and Recycling

PETRECO is a Zimbabwean waste recycling enterprise that specialises on recycling PET plastic. Due to the realisation by ourselves and strategic partners in the beverage sector to find strategies of managing plastic waste we collaborated to support its formation. The facility has the capacity to clean and crush the waste as well as packaging recycled material for export and further refining. Because of the establishment of PETRECO, there are multi-pronged benefits including waste reduction in communities, income generation as well creation of green jobs. Our organisation is pleased to be associated with PETRECO in recycling activities.

Through PETRECO, Schweppes Zimbabwe Limited and its partners have demonstrated that industry can lead by example in transforming society and building smart cities. The project employs more than 50 people and also employees 300 people indirectly in the waste management value chain. With an investment of more than $US 1 Million, PETRECO currently recycles 1 100 tonnes of PET. With greater support in terms of technical, policy and financial support from stakeholder, there is potential for upscaling.

Chemicals

Our operations have a zero tolerance on chemical spillages that have an effect on the environment,

hence we carried out awareness on safe chemicals management through

the internal auditor training in the year 2017. Our operations have deliberate actions to promote chemical safety and chemical accident prevention.

Schweppes Zimbabwe Limited realises the important role that chemicals play in our activities including cleaning processes. We maintain safe storage, handling and usage of chemicals.

Waste Stream Percentage RecycledTotal Waste to landfill 11%Recycled Paper 6%Recycled Glass 8%Recycled Plastic 62%Recycled PET 13%

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Compliance

The impact of legal breaches is well documented in various parts of the world and can have

tarnishing effects on the brand of an organisation. Our business model hinges on transparency and therefore we constantly interact with regulators in order to understand their requirements. We educate and train our employees on their legal obligations and those of the company as well as enlightening them on the consequences of deviation.

In 2017 there were 0 legal violations and also there were no lawsuits or legal proceedings instituted against the organisation in terms of environmental breaches. We had no incidents requiring

Number of Legal Violations by the company 2017 Performance Number of Lawsuits or legal proceedings 0Total Amount of fines paid due to breaches of regulations ($) 0Number of Incidents requiring legal action 0Number of current Licences legally in compliance to laws 5

legal action and the company was not required to pay any fines for environmental offences. We pride ourselves in this compliance record and we will assure our stakeholders that we will continue to operate within the confines of our environmental laws in the years to come. In the year 2017 we had as at the end of the year 5 Licences in full compliance of the Environmental Management Agency (4) as well as the Radiation Protection Authority of Zimbabwe (1). In addition we also ensure that we periodically carry out legal compliance audits

Our organisation is a law abiding entity. Over the years we have gained experience and demonstrated compliance to environmental and sustainable development policy and legal frameworks. The mechanism employed in our operations is to identify relevant legal requirements impinging on operations and then implement actions that ensure compliance.

We attained 100% compliance to

environmental laws and we will continue to learn both existing and new legal requirements. In

our organisation, it is not only about complying to legal requirements

but also “other requirements” such as

those of our customers, industry sector as well as international standards such as those promoted

by the International Organisation for Standardisation.

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Striving for Operational Excellence

SCHWEPPES SUSTAINABILITY REPORT 2017

41

Striving for Operational Excellence

The recognition of operational excellence as a business improvement tool, resulted in us developing an Operational Excellence (OE) Model that recognises 8 wastes that we should manage in the workplace.

Operational Excellence (OE) is a transformational productivity improvement

program unique to the Coca-Cola system. Applicable to both end-to-end supply chain and other functional areas. Engages employees and builds internal capabilities. aligns the organization through common language, processes, tools, and metrics. It also includes Lean,which is a business

philosophy of shortening the time between the customer order and delivery by eliminating waste in the process and constraints on continuous flow. Focuses on identifying where value to the customer is created throughout the process. Eliminates activities that do not add value. Pursues continuous, incremental improvements

Case Study: Operational Excellence Model for Schweppes Zimbabwe Limited

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Model for Corporate Environmental Excellence

and implementing the Precautionary Principle

Pursuing our corporate environmental goals has been strengthened by our adherence to the Precautionary

Principle. Schweppes Zimbabwe Limited realises that we must protect the environment at all costs even if there is no scientific evidence to prove selected environmental catstrophes. We do not believe in a “wait and see approach” but we take “proactive approach” action to address potential environmental sustainabiliy challenges that have a potential threat to the organisation.

In 2017 we therefore determined internal requirements, established a framework for measurement, reporting and verification. Our indicators have been determined with due consideration of the external requirements of stakeholders, GRI, international benchmarks and best practices. In order to upscale and compliment our sustainability action we have started work on the Sustainable Development Goals.

ExternalRequirements

InternalRequirements

Coca-ColaInternational

Requirements

Environmentallaws and

regulation

GRI Requirementsfor reporting and

monitoring

Internationalbenchmarks and

best practice

Reporting

DeterminingIndicators Teamwork

MeasurementReporting and

Verification

Verification

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Our Contribution

to

Our Contribution to SDGsOur organisation has embraced the Sustainable Development Goals (SDGS) and consider them as a vehicle to transform the world into a better place by the year 2030. Our Sustainability Reporting Team facilitated prioritisation of the SDGs relevant to Schweppes Zimbabwe Limited.

Our approach to Sustainable Development Goals is an integrated approach and ensures that the Goals are mutually reinforcing on each other. Our workers are constantly receiving awareness on the significance of the SDGs in their daily activities and continually show eagerness to learn about them

Agenda 2030 requires all stakeholders to play a part in the attaining of the goals

including private sector, government, development partners, civil society, communities, research among others.

The goals that are most relevant to SZL are as follows:• Goal 3: Good Health and Wellbeing• Goal 5: Gender Equality• Goal 6: Clean Water and Sanitation• Goal 8: Decent Work and Economic Growth• Goal 12: Responsible Production and Consumption• Goal 13: Climate Action

Schweppes Zimbabwe Limited is glad to be reporting for the first time in our Sustainability Report, the progress that we have made in the SDGs.

SDG

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Performance Of SZL On The 6 Prioritised SDGS

Sustainable Development Goal (SDG) Programmes and Initiatives Key Milestones and Indicators for the year 2017

GOAL 6: Clean Water and Sanitation • Multi-barrier water treatment in the plant (Chlorination, flocculation, sand-filtration, carbon filtration, polishing filtration, reverse osmosis, UV treatment, and Ozone treatment)

• Containment and neutralization of plant effluent

• Containment and licence vendor disposal of used oil from workshops

• Provision of cleaning and sanitizing agents at hand wash stations

• Provision of high quality packaged water to the market

• Local and national regulations compliance

• CSR milestones

GOAL 12: Responsible Production and Consumption

Accreditation to ISO 14001:2004 – Environmental management systemsWater• Repair Water leaks• Backwash Optimization/ Recovery• Rinse water Recovery• CIP Recovery• Employee training• Water balancing back• Use of high pressure nozzles on

water hoses

Energy• Daily tracking• Sectional Metering• Optimized production planning to

reduce machine idling,• Office lighting ‘Name & Shame’• Planned start up work aids for plant

energy control• Optimized boiler steam supply

settings, aligning boilers usage with steam demand (Small boiler for low steam demand)

• Scheduled weekly cleaning routines for filters, condensers and evaporators for optimal heat transfer

• Replacement of old lighting with energy efficient lights

• Inclusion on energy efficiency specifications on procurement of electrical components

• WUR at 2.5 vs. 2.2 L/Lbev• Backwash water recovery• Line 3 CIP-Moved from 24 hour CIP

cycle to 48 hour CIP cycle• Line 3 rinse water Recovery-

Managed to redirect all rinse water back into water treatment stream for re-use

• Hosting of the Water & Energy summit

• EUR at 10.9 vs. 16.5 L/KWhr

• Hosting of the Water & Energy summit

• Work aids for compressors, Boilers and start ups

• Transition into energy efficient lighting systems

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Performance Of SZL On The 6 Prioritised SDGS

Sustainable Development Goal (SDG) Programmes and Initiatives Key Milestones and Indicators for the

year 2017GOAL 3: Good Health and Well

Being• On-site health care facility

• Medical aid cover

• Dietary needs of staff during lunch hour

• Fitness programmes

• Mental Health Care- One on One Stress Management for employees

• Funeral policy which covers immediate family i.e. spouse, children, biological parents and in-laws

• Extended Clinic days from 3 days a week to everyday

• Provision of HIV/AIDS drugs to employees and their spouse

• 50% of subscriptions being paid for, for staff and 3 dependants

• Provision of a selection of meals, traditional, western or health option for lunch, every day.

• Sponsor the Soccer Team for all their scheduled games.

• Encourage participation in sporting events, Triathlon, Cycling, Bon Marche Marathons

• Club gym membership for senior staff members

• Employees can now access mental health care outside working hours for confidentiality

GOAL 5: Gender Equality • Currently Working on Diversity and Inclusion Policy

• Job advertisements are not gender specific

• Equal Job Opportunities for both male and female especially in male dominated fields

• Breastfeeding women do not go on night shift

• Sexual Harassment was upgraded to a dismissible offence

• Increase in women in once male dominated areas

GOAL 8: Decent Work and Economic Growth

• Employees are paid above the stipulated minimum wages

• Equal pay for equal job done• Promotion by merit• Employees have at least 3 months

contracts

• Decreased the number of Casual Workers and have increased the number of fixed term contracts.

GOAL 13: Climate Action • Promoting energy efficiency in production

• Water saving initiatives to facilitate climate adapatation

• Training of SHEQ Internal Auditors in 2017 included aspects on climate change

• Quarterly monitoring of greenhouse gas emissions from emission sources.

Sustainable Development

Goals have taken off very quickly at Schweppes and

through the work of the Sustainability Reporting team and commitment of Top

Management we have successfully mainstreamed the

SDGs into our processes. Our

sustainability report shows that when

fully integrated into business processes,

the SDGs are an opportunity for

business excellence and cost savings.

SDGs

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CSRSCHWEPPES SUSTAINABILITY

REPORT 2017

2017 Corporate Social Responsibility Summary

Key Focus AreasAs a corporate citizen and a commercial enterprise we facilitated sponsorships and donations primarily to organizations and events that operate in the following areas in order of importance:

1. Health Donations in the field of health were focused on supporting credible institutions in a bid to foster critical health care for under privileged members of our society with focus on women and children. We rendered support in cash or kind to the following institutions:• KidzCan Zimbabwe - the only

organization dedicated to increasing the survival rate of children with cancer by sourcing and providing chemotherapy and other related drugs, blood and blood products as well as prosthetics. o We joined in the global collaborative

childhood cancer awareness campaign, to show support for children and adolescents with cancer, survivors and their families. All employees were encouraged to wear orange and orange laces on the 24th of February 2017 where for every employee wearing orange on the day, the organisation donated $2 to Kidzcan. We raised and donated $2000.00 to KidzCan

• Health Support for Children with Cleft Lip and Palate

We have for the past 7 years been partnering with Operation of Hope and

Rotary Clubs in executing free cleft lip and cleft palate surgeries in Harare and Bulawayo.

Additionally in 2017, we partnered Alliance for smiles and Love Without Reason, foreign based surgical teams to provide the gift of life-changing surgeries by ensuring there is sufficient water and juice to keep patients, their families, volunteers and all related health personnel hydrated during the missions.

In addition to that, the organisation produced meals for at least 700 people on screening days with staff volunteers who not only assisted to serve the meals but also assisted in filing-out the patient forms by translating English into local languages.

• Parirenyatwa Oncology ward Cooler Donation

Schweppes Holdings Africa Limited donated two refrigerators worth US$3 152.00 to the Parirenyatwa Group of Hospitals to cater for the Oncology department. The Oncology department is where patients diagnosed with various cancers are treated. One of the two refrigerators was tailor designed to cater for specially required storage of medicines and drugs while the other one is meant for storing patients’ food.

2. Education and Youth • Joshua Nkomo Poly Technic College:

Beitbridge Juicing Private Limited enhanced its support of the Joshua Mqabuko Nkomo Polytechnic College through a donation of drip irrigation

Schweppes Zimbabwe Limited is a responsible corporate citizen that supported local, government, non-governmental and community initiatives promoting good values, social development, education, health care, the environment, sport as well as art and culture. We combined or values with financial and human resources to contribute to the overall well-being of the communities in which we operate.

Public Affairs activities included product and cash donations to various institutions. Total spend for the year was US$123,408.28

Table 1: Summary of Donations and Sponsorships for 2017

Q1 Q2 Q3 Q4 TotalDonations and sponsorships per quarter $33,364.39 $20,039.61 $37,985.86 $32,018.42 $123,408.28

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2017 Corporate Social Responsibility Summary

system to the value of $6500. This was an addition to the green house donation in 2015 and the borehole donation in 2016 to the department of agriculture to enhance learning through practical work. The origination’s donations to date amount to $19508.00

• Africa University and Harare Institute of Technology: The organisation donated graduation prizes worth $1000.00 to outstanding graduating students from the two institutions. 36 students have received Schweppes prizes for the past 9 years.

• St Dominics High School: We facilitated donations of $1000.00 towards the 120th Anniversary fundraising dinner. All proceeds were channelled towards infrastructural developments at the school.

• Cheuchi Donation: Facilitated food and beverage donations to under privileged children at Cheuchi primary school in Chinhoyi Rural District

• Fawezi Girls Quiz: Partnered FAWEZI and sponsored prizes and beverage donations at the Girls National Quiz competitions

3. Sports • Bonaqua Troutbeck ATU African

Triathlon Cup: Bonaqua is the official water and tittle sponsor of Zimbabwe Triathlon and this annual international sports tournament. The organisation has been sponsoring Zimbabwe triathlon throughout every season from September to March for the past 4 years.

• Zimbabwe Cricket Union: Bonaqua was the official water and Minute Maid was the official juice sponsor for the Zimbabwe Cricket Union. This partnership has been ongoing for the past 8 years.

• Danhiko Annual Paralympic games: We facilitated sports equipment and beverage donations for over 1500 athletes living with disabilities and invited guests at the Danhiko Annual Paralympic Games. This partnership has been ongoing for the past 8years.

• Facilitated water donations for the Silver Lining sports

• Bon Marche walkarobix: Partnered Bon Marche as the official water sponsor of their walk-arobix and entered

participating athletes. All proceeds were donated Bumhudzo Old People’s home.

• Spar Fun Run: Partnered Spar Zimbabwe for their annual fun run through beverage donations and registered athletes. All proceeds were donated to Childline Zimbabwe

4. Environment• Schweppes Holdings Africa Limited is a

founding member and 10% shareholder in Petrecozim, the only PET recycling company of Zimbabwe. Annual capex contributions amounted to $10,548 and Opex contributions for the year 2017 amounted to $56,692.00.The PET recovery rate target of 10% was met. A total of 1969.98 tonnes of PET were produced by Schweppes in 2017. 205.27 tonnes were collected by Petreco translating to a recovery rate of 10%

• We facilitated the Makokoba Clean Up campaign in Bulawayo to clean the rank and facilitated beverage donations to the local community.

• We facilitated bins donation to the Zimbabwe Agricultural Society to facilitate waste collection during the Harare Agricultural Show.

5. Arts and Culture We provided beverage sponsorship

during HIFA 2017. 40 Children in the youth zone were trained on how to turn trash into cash by making art using waste PET and cans.

6. Social Development• We embarked on the “SHAL L.O.V.E with

Mazoe” campaign in which 582 cases of 2 Litre Mazoe range Crush valued at $9,312.00 were donated to over 2000 underprivileged children and adults in special needs homes, schools and hospitals throughout Zimbabwe.

• Schweppes Zimbabwe donated food hampers and clothes to Tony Waite organisation which saw vulnerable households benefiting. A livelihood nutritional garden for people living with HIV and orphans had a donation of US$ 1 000.00 for procurement of water pump and pipes to get water from the lake which will cost them less than using the treated Municipal water.

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Our CSR Initiatives and Community Development

In pursuant of that, Schweppes Zimbabwe Limited has initiatives on Corporate Social Responsibility. We

have partnered with Danhiko in assisting the disadvantaged and disabled members of our society through donations. The world has realised that disability is not inability and there are various opportunities we can facilitate in order to raise the standards of living of disadvantaged individuals. Our dream is to have a community that is inclusive and cooperates with all individuals.

In the period under review our organisation also provided support

to the project that involved children undergoing cleft-lip operations. Through providing communication, beverages and meals we believe that as a company we should play our part in making a difference. In 2017 our organisation was involved in the initiative for cleft lip surgeries in collaboration with other stakeholders such as the University of Zimbabwe College of Health Sciences and Rotary Club. A cleft lip is a physical split or separation of the two sides of the upper lip and appears as a narrow opening or gap in the skin of the upper lip.

Our operational activities are centred on integrating community relations and engagement of people. We believe that our business success is enhanced by having partnerships with communities that we live in.

“The main objective of our participation is to assist the under privileged in society,

with health and children having been identified as a key focus area for the

company’s corporate social responsibility initiatives,”

Demos Mbauya, Schweppes Zimbabwe Limited, General

Manager.

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Our CSR Initiatives and Community Development

- cont’d

We acknowledge that our industrial processes interact with the environment and can have impacts on communities. This is why we have committed ourselves to stakeholder and community concerns whenever they arise.

In the period under review there were no major environmental concerns raised by communities. In order to ensure corporate social responsibility we have initiatives on waste management and waste recycling including the establishment of PETRECO. On every new project or extension of existing project scope we fully engage in the Environmental Impact Assessment

(EIA) process including Public Consultation processes. As a result we have seen community engagement as an effective tool for project improvement. Through the Safety Health and Environment Department we make regular follow-ups on the implementation of the Environmental Management Plan.

Pursuing our Corporate Social Responsibility actions has also seen our organisation including farmers in the value chain. Through application of the inclusive business model we have mainstreamed sustainability and social inclusion in the value chain.

Case Study: Health Initiative – Cooperating partner in Cleft Lip Operations Programs

The programme involves Health Support for Children with Cleft lip and palate. Schweppes Holdings Africa Limited has for the past seven years been partnering with Operation of Hope and Rotary Clubs to provide the gift of life-changing surgeries by ensuring there is sufficient water and juice to keep patients and their families, volunteers and all related health personnel hydrated during the mission.

In addition to that, the organization has been producing meals for at least 400 people on screening days with staff volunteers who not only assist to serve the meals but also assist in filing-out the patient forms by translating English into local languages. The main objective of the participation is to assist the under privileged in society, with Health and Children having been identified as a key focus area for the company and to encourage staff participation in corporate social responsibility initiatives

Through the “Operation of Hope” there were 2 Missions undertaken at Mpilo Hospital in Bulawayo and at Harare Children’s Hospital. Our staff have been volunteering on screening days and meal donations, plus beverage donations during the operations covering 400 people. During the “Love without Reason” (provided beverages during the operations) covering 200 people. The mission of “Alliance for Smiles” saw our organisation providing beverages for the screening day and partnered Servcor to provide free meals for 200 people

The main objective of our participation is to assist the under privileged in society, with Health and Children having been identified as a key focus area for the Company and to encourage staff participation in corporate Social responsibility initiatives. So far 800 people directly benefited from this initiative.Schweppes Zimbabwe Limited has been the official water provider in support of the

Operation of Hope with product donations to refresh the management team and patients. Operation of Hope is a surgical mission to Zimbabwe which runs from July to August of every year. A 21 member team from European countries visits Harare Central Hospital Paediatric Ward to facilitate operations on not less than 50 Zimbabweans with different cleft lip conditions. Operation of Hope is co-ordinated by the Rotary Club of Avondale.

This initiative has addressed SDG 3, which is core to the businesses CSR drive in trying to improve health and livelihoods in the community that surrounds us. Poor health has seen to have a direct relation to increased poverty.

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Our Governance, Ethics and Integrity

Corporate governance is the cornerstone of our business excellence at Schweppes Zimbabwe Limited.

We have adopted a raft of measures to mainstream Governance, Ethics and

Integrity into business operations. The company has established a Board which oversees the company and provides guidance on the strategic direction of the organisation. The overall accountability of sustainability rests on the Managing Director of the organisation and is assisted by various members of the Executive and Management Team.

Our organisation upholds high levels of Ethics through initiatives such as

Code of Conduct in which offenses such as Theft, Embezzlement, Corruption are dismissible offences. Furthermore the company investigates any cases to finality. In the year 2017 under review we continued to maintain the Deloitte Tip-Offs Anonymous. Corruption, nepotism, and kick-backs are not allowed at all levels of the organisation. Training and refresher training was carried out in the year 2017. The activities on ethics, integrity and anti-corruption are shown below.

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Sustainability Aspect Activities to address the issues

Objectively Verifiable Indicators or examples of milestones

Ethics and Integrity • Organizations core values – ACE-IT

• Cultural exchange Programs within the Group to encourage maintenance of Ethics and Integrity

• Improved organizational performance due to strict adherence of Core values

Anti-Corruption • Deloitte initiate – Tip offs anonymous with refresher courses conducted annually.

• We have an employment Code of Conduct in which offenses such as Theft, Embezzlement, Corruption are dismissible offences

• Tip Off Anonymous- Deloitte (Refresher Training was conducted

• Investigations and reports generated by the internal audit team and handed over to the board for auction

Ethics, Integrity and Governance Initiatives

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Board Of Directors

Sternford MoyoChairman

Evelyn Mkondo

Key: * Executive

Alex Makamure

Matlhogonolo Valela

Charles Msipa*

Memory Nguwi

Etherton Mpisaunga

Steve Kuipa

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Membership, Awards and Recognition

We believe that partnership and interacting with other organisations is the foundation of knowledge sharing on sustainability.

Schweppes Zimbabwe Limited is a member of several industry associations including the

Business Council for Sustainable Development Zimbabwe (BCSDZ), Confederation of Zimbabwe Industries (CZI), Employers Confederation of Zimbabwe (EMCOZ), Institute of Chartered Accountants Zimbabwe (ICAZ) and Marketers Association of Zimbabwe (MAZ).

Schweppes is the current Chair of

Schweppes Zimbabwe Limited has been recognised at various

platforms for sustainability, quality and excellence. Our journey to

6 The BCSDZ is a leading association of more than 70 companies in Zimbabwe that focuses on corporate sustainability. It was formed 25 years ago and is an affiliate of the World Business Council for Sustainable Development (WBCSD).

the BCSDZ where Mr Charles Msipa (Managing Director of SHAL) chairing the association (2017-2020). The responsibility bestowed upon us by other industrial stakeholders is our priority and hence we believe in demonstrating the leadership through raising our sustainability performance and also reporting transparently to our stakeholders. Our Managing Director has previously been the President of the CZI including spearheading various sustainability initiatives.

excellence can be demonstrated by the various recognitions that we have received and we continue to receive.

“Under a Green Economy, stakeholders must find new innovative ways to minimise their ecological footprint and environmental impact, shifting towards renewable energy, promoting sustainable mobility, Integrated Solid Waste Management, Environmentally Sound Management of Chemicals, Industrial symbiosis and as well as efficient water utilisation” - Charles Msipa – Managing Director, Schweppes Zimbabwe Limited and Chairman of BCSDZ on the occasion of the Annual Conference 2017

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Membership, Awards and Recognition

2016:2nd Position Best Zimbabwe

Exhibit - Food Group

2012:Winner of the Best New Market

Entry for Minute Maid Pulpy Orange launch awarded by the Marketers Association of Zimbabwe (MAZ) in the Marketing Efforts Awards

SADC Annual Quality Awards 2015 - Minute Maid Pulpy

Orange - Quality Product of the Year

2015:Best Zimbabwe Exhibit - Food

Group

2012:2nd runner up in the

Promotional Campaigns category awarded by the Marketers Association of

Zimbabwe (MAZ) for Minute Maid Pulpy Orange launch

Coca-Cola Eurasia and Africa Group Sustainability Award

2014/15

2015:Manufacturer of the year

2012:Ranked first in the large plants

category

2010:1st Runner Up

2015:Schweppes Zimbabwe

Limited was ranked in the top 20 Business to Business

Superbrand Awards organized by the Marketers Association of

Zimbabwe

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2011:1st Runner Up

2009:Bottler of the year

2010 - 15:Mazoe ranked in the Overall

Top Ten Superbrands, and the National Top Ten Superbrand categories by thee Marketers

Association of Zimbabwe (MAZ) in the annual Superbrand

Awards

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Stakeholder Analysis and Engagement

Schweppes Zimbabwe Limited considers its stakeholders as key to its business strategy. We engage stakeholders through various platforms, seeking to get value adding inputs to our sustainable development initiatives.

As an entity we realise that stakeholders have got varying needs and hence these need

to be analysed and action taken to address them. We continued to receive feedback in the year 2017 from these stakeholders with respect to our sustainability ambitions. The issues material to our stakeholders are taken care of in the organisations planning and relevant responsibilities are effectively allocated. We formally engage some stakeholders whilst for some stakeholders the engagement is ongoing.

The major platforms for engaging stakeholders in the year 2017 included the Schweppes Water and Energy Forum where energy and water were recognised as material issues that SZL should focus on. This forum included interaction and engagement with the regulators such as Environmental Management Agency (EMA), City of Harare and Zimbabwe Energy Regulatory Authority. Employees were also engaged on the materiality of water, energy and wastewater.Formal engagement of representatives of the employees was also undertaken by Schweppes Zimbabwe Limited through two

formal meetings of the Sustainability Report, the first focusing on determination of priority Sustainable Development Goals and the Second focusing on the determination of Materiality as well as the Ranking of the SDGs relevant to the organisation as a follow up of the first meetings.

Our shareholders are key to our business and they are engaged through regular reporting on the performance of the company including the sustainability performance of the company. The community and customers are engaged and involved in the sustainability report and any issues that they raised are also captured in our sustainability reporting data collection. We also have a system of recording any customer complaints from our key stakeholders.

During the year 2017, there were no major environmental grievances and complaints received by the company. However, we are constantly developing mechanisms of how we can address challenges in the communities such as waste management that we are addressing through promoting waste recycling.

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Stakeholder Analysis and Engagement

Stakeholder Stakeholder Interests/Concern

Activities by SZL to address stakeholder issue Means of Engagement

Government of Zimbabwe

• Environmental protection

• Occupational Safety and Health of Workers

• Upholding of human rights

• Economic development

• Complying with licence requirements for all emission sources

• Provision of PPE• Human Rights Policies• Growing of export markets

• Schweppes Water and Energy Forum

• Meetings• Quartely

Environmental Reports

Shareholders • Return on investment• Compliance and

corporate governance

• Implementing strategies for enhancing profitability

• Monitoring legal and policy environment and maintaining Board functions

• Reports • Meetings

Employees • Jobs and decent work• Professional

development• Safe working

conditions

• Provision of employment and good working conditions

• Freedom of workers to join Trade Union of their choice

• Provision of training opportunities including Sustainability Reporting Training.

• Provision of Personal Protective Equipment

• Ongoing engagement• Meetings• Formal meetings

for Sustainability Reporting planning and Review

• SHE Committee meetings

Communities • Employment• Protection of

environment and natural resources

• Socio-economic development

• Employment provision• Implementing Environmental

Management Systems considering interested and affected parties.

• Maintaining an Environmental Management Plan

• Contracting of farming community in the value chain to supply raw materials

Customers • High quality products and food safety standards

• Environmental stewardship of waste products

• Implementing FSSC 22 000 Management Systems

• Setting up of waste recycling facility and extended producer responsibility

• Provision of information through product labelling

• Annual Report

Suppliers • Mutually beneficial relations

• Paying suppliers on time• Development of procedures

for procurement

• Meetings with suppliers on mainstreaming quality, safety and environmental sustainability

Contractors • Contract employment • Safety

• Engagement of contractors in the supply chain

• Induction and briefings of contractors

• Meetings with contractors

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Global Reporting Initiative (GRI) Index

GRI

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017

Indicator Description Section PageSTRATEGY AND ANALYSISG4-1 Statement from the most

Senior Decision MakerStatement from the Managing Director

4

General Manager’s Quote 6G4-2 Impacts, Risks and

Opportunities on sustainability

Annual Report In Annual Report

ORGANISATIONAL PROFILEG4-3 Name of Organisation Our Business 10G4-4 Primary Products and

ServicesProduct and Service Portfolio

14

G4-5 Location of the Head Office Our Business 10G4-6 Number of Countries where

organisation operatesOur Business 10

G4-7 Nature of Ownership and Legal Form

History and Ownership 12

G4-8 Markets Served Our Business 10G4-9 Organisational Scale Our People 17G4-10 Employment Overview Our People 17G4-11 Employees covered by

Collective BargainingOur People 17

Human Rights 27G4-12 Supply Chain Annual Report In Annual ReportG4-13 Significant Changes from

previous reportHistory and Ownership 12

G4-14 Precautionary Principle Model for Corporate Environmental Excellence and implementing the Precautionary Principle

43

G4-15 External Initiatives which the organisation Subscribes to

Membership, Awards and Recognition

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G4-16 Membership to professional bodies

Membership, Awards and recognition

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Global Reporting Initiative (GRI) Index

Indicator Description Section PageIDENTIFIED MATERIAL ASPECTS AND BOUNDARIESG4-17 Entities Included in financial

StatementsFinancial Statements Annual Report

G4-18 Determining Materiality Reporting What Matters 15G4-19 Material Aspects Reporting What Matters 15G4-20 Aspect boundary Overview of Report 9G4-21 The aspect boundary

outside the organisationReporting What Matters 15

G4-22 Restatements Overview of Report 9G4-23 Changes from previous

reporting periodsOverview of Report 9

STAKEHOLDER ENGAGEMENTG4-24 Identification of key

stakeholdersOur CSR and Community Engagement

49

G4-25 Basis of identification of key stakeholders

Our CSR and Community Engagement

49

G4-26 Approach to Stakeholder engagement

Our CSR and Community Engagement

49

G4-27 Topics Raised through stakeholder engagement

Our CSR and Community Engagement

49

REPORT PROFILEG4-28 Reporting Period Overview of Report 9G4-30 Reporting Cycle Overview of Report 9G4-31 Contact point for questions

regarding the reportOverview of Report 9

G4-32 In accordance core requirements

GRI index 60

G4-33 Assurance Overview of the Report 9GOVERNANCE STRUCTURE AND COMPOSITIONG4-34 Governance Governance, Ethics and

Integrity54

ETHICS AND INTEGRITYG4-56 Ethics and Integrity Governance, Ethics and

Integrity54

SPECIFIC STANDARD DISCLOSURESG4-DMA Material Aspects Reporting What Matters 15ECONOMIC INDICATORSG4-EC 1 Direct Economic Value

GeneratedFinancial Statements Annual Report

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Our Sustainability Champions

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Our Sustainability Champions

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Notes

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