Post-COP27, the role of business in securing a 1.5°C future has never been clearer. In the absence of a unified government-level approach, it is imperative that businesses continue to drive progress on carbon reduction so that we do not miss out on achieving the 1.5°C pathway set out by Paris Agreement.
The relationships that businesses have with their suppliers is a fundamental piece of the puzzle. By working alongside suppliers and finding new ways to decarbonise, businesses can scale their efforts and move the dial further, faster, towards reaching net zero.
At Coca Cola Europacific Partners (CCEP), our supplier partnerships are key to our ambition to reach net zero by 2040 and reduce our greenhouse gas emissions (GHG) by 2030 vs. 2019), aligned with a 1.5°C pathway and approved by the Science Based Targets initiative (SBTi). Over 90% of our emissions are attributed to our supply chain and we are working closely with our suppliers to help them develop their own actionable, SBTi approved carbon reduction plans, and transition to 100% renewable electricity.
Expanding our supplier partnerships and collaboration
Following CCEP’s acquisition of Coca-Cola Amatil last year, we have extended our sustainability action plan, This is Forward , and our work with suppliers, to include our markets in Australia, the Pacific and Indonesia.
And in 2022 we have made significant strides in collaborating with our suppliers in API and connecting them with our suppliers in Europe. We have a lot to learn from each other and we’re sharing best practice across all areas in order to advance our joint decarbonisation plans. We have identified 121 suppliers in Europe and 97 suppliers in API who are linked to approximately 80% of our Scope 3 CO2 emissions - our carbon strategic suppliers.
We are making good progress and have achieved our 2022 target to get 80% of our European carbon strategic suppliers to commit to SBTi targets. We are targeting 100% of our carbon strategic suppliers to set science-based targets in Europe by 2023 and in API by 2025.
But we know we need to do go further, faster and so we continue to put innovation at the heart of driving forward our progress. To help accelerate change, we have launched a sustainability-linked supply chain finance programme, together with Rabobank. The programme is one of the first of its kind and will incentivise and reward our suppliers for improving their ESG performance. It will provide competitive financing that is linked to a number of sustainability-driven KPIs for suppliers that, when met, unlock incremental discounts against the initial funding rate, and align with CCEP’s own action to reduce emissions across its entire value chain and reach net zero by 2040.
We still have a long way to go as we play our part in keeping global temperatures below 1.5°C. To achieve this, we are looking forward to continuing to work collaboratively with our suppliers to secure a low carbon future for all, for a better shared future.