Forward on climate

Taking action to tackle climate change

On 23rd February 2024, CCEP jointly completed the acquisition of CCBPI. Some information on this page will be updated in due course to reflect the addition of the Philippines to our business. 

The Intergovernmental Panel on Climate Change (IPCC) has highlighted that urgent climate action is needed. That’s why we have a target to reach net zero emissions by 2040.

The world is at a critical point. Climate change – caused by greenhouse gas (GHG) emissions, in part from businesses such as ours – is leading to global temperature increase and extreme weather conditions around the world. COP26 and the IPCC has highlighted that urgent climate action is needed if we are to limit global temperature increase to 1.5°C.

We take seriously the responsibility to reduce our GHG emissions, to mitigate climate change and to protect the future of our planet.

That’s why we have a target to reach net zero emissions by 2040 – 10 years ahead of the Paris Climate agreement – and to reduce our absolute GHG emissions across our value chain by 30% by 2030 (vs 2019).

Our Group wide near-term science-based emissions reduction target, versus 2019, and our science-based net zero by 2040 target have been approved by the Science Based Targets initiative (SBTi) and are aligned with a 1.5C pathway.

Over 90% of our value chain GHG emissions come from our supply chain. So, we are committed to supporting suppliers to set their own science-based carbon reduction targets and to shift to 100% renewable electricity and to begin sharing their carbon footprint data with us.

As an influential global business, we use our voice to guide public policy and drive the transition to a low-carbon future. In 2021, we joined over 700 of the world’s largest organisations and the We Mean Business Coalition, to call for G20 nations to step up their climate ambitions and adopt stronger targets to mitigate the worst effects of climate change.

We are a proud member of The Climate Group’s RE100 initiative across Europe and API. We are also a member of the Corporate Leaders Group, supporting European Union policymakers in their work to increase the EU’s GHG emissions reduction targets for 2030, in line with the EU’s goal to become carbon neutral by 2050.

Our actions support UN Sustainable Development Goal 7: Affordable and clean energy and Goal 13: Life on land.

“CCEP committed to power its entire operations across API with 100% renewable electricity. Setting this target in this region sets a strong example for other companies to follow.”

Jon Dee

Australian Coordinator, RE100

Action On Climate Milestones

2011 2013 2015 2016 2017 2018 2019 2020

2011

'Deliver for today, inspire for tomorrow' Sustainability Plan Launches

2015

First SBTI Target Set.

Committed to using 100% renewable electricity.

2017

This Is Forward Sustainability Action Plan launches

2019

Achieved emissions reductions: 

50% - core business

30.5% - entire value chain

2013

Sustainability Innovation Summit

2016

CDP Climate A-List

2018

Achieved 100% renewable electricity status 

2020

Action On Climate Now launches

2011

'Deliver for today, inspire for tomorrow' Sustainability Plan Launches

2013

Sustainability Innovation Summit

2015

First SBTI Target Set.

Committed to using 100% renewable electricity.

2016

CDP Climate A-List

2017

This Is Forward Sustainability Action Plan launches

2018

Achieved 100% renewable electricity status 

2019

Achieved emissions reductions: 

50% - core business

30.5% - entire value chain

2020

Action On Climate Now launches

Our 2040 Ambition

  • Net Zero 2040 Ambition
  • 30% GHG reduction by 2030
  • Engage with Suppliers
Net Zero 2040 Ambition

We have an ambition to reach Net Zero by 2040

Between 2020 and 2022, we supported the delivery of our GHG emissions reduction target through a €300 million investment plan. A proportion of this investment helped us accelerate our use of recycled PET (rPET) resulting in us achieving our >50% rPET target ahead of plan in Europe. Our efforts across our entire value chain reduced emissions by 9.4% versus 2019.

We’re now focused on reducing our value chain emissions even further.  We will work together with our suppliers to reduce our scope 3 emissions, where our biggest impacts occur. To reach Net Zero by 2040, we will focus first on reducing emissions as far as possible and will offset where essential, and then will invest in projects which remove carbon from the atmosphere or verified carbon offset projects.

 

Read our Forward on Climate Plan

Read our Climate Advocacy Principles

 

30% GHG reduction by 2030

We’ll reduce absolute GHG emissions across our value chain by 30% by 2030 (vs 2019)

This target has been approved by the Science Based Targets Initiative (SBTi) as being in line with a 1.5˚C reduction pathway as recommended by the Intergovernmental Panel on Climate Change (IPCC).  Our focus will be on reducing GHG emissions across scope 1, 2 and 3, covering activities throughout our value chain: ingredients, packaging, operations and commercial sites, transport and cold drinks equipment.

We are taking action to achieve this goal: we’ve accelerated our ambition to use zero virgin fossil-based PET in our plastic bottles within a decade; we’ll explore how to make our manufacturing sites fossil-fuel free and will transition six of our manufacturing sites to be carbon neutral by the end of 2023; we’re working to reduce the distance we transport our products; we’re continuing to shift our cold drinks equipment to more energy efficient models.

Read our Forward on Climate Plan

Read our Climate Advocacy Principles

Engage with Suppliers

We’ll ask suppliers to set their own science-based GHG emissions targets and use 100% renewable electricity by 2023

Our focus will be on reducing emissions across our entire value chain – from the raw ingredients we source and the packaging we use, to the drinks we sell. However, we can’t achieve this alone. Over 90% of our GHG emissions are related to the activities of our suppliers, so we will be supporting them to:

  • Set their own science-based GHG emissions reduction targets by 2023
  • Use 100% renewable electricity across their operations by 2023
  • Share their carbon footprint data with us


Read our Forward on Climate Plan

Read our Climate Advocacy Principles

Our progress in 2022

%

reduction in our absolute GHG emissions (vs. 2019)

%

of carbon strategic suppliers set science based targets

%

of electricity used was renewable

Untitled design v2

Our positions

We believe action is driven by clear intent. This is why it's important to us to be transparent on our approach to the topics that matter to progressing our This is Forward strategy.

Our position on

  • Carbon Offsetting
  • Renewable Electricity
  • Carbon Pricing
  • Carbon Capture Utilisation and Storage
Carbon Offsetting

Why it matters

Carbon offsets aim to compensate for existing GHG emissions (e.g. those from a company)  through projects which avoid or remove/permanently sequester carbon emissions elsewhere, outside of a company’s value chain.  Carbon Offsetting cannot be used to reduce a company’s emissions, and should not be seen as a replacement of investment in deep decarbonisation.

There are two main types of carbon offset projects:

  • Carbon Avoidance – e. projects that focus on avoiding carbon being released into the atmosphere (e.g. switching from fossil fuels to renewable energy, cleaner cookstoves, biogas, deforestation avoidance (e.g. REDD or REDD+ projects)) or;
  • Carbon Removal – i.e. projects that focus on removing carbon emissions that are already preset in the atmosphere (e.g. Tree Planting/Peat Restoration/Mangrove Planting/ Afforestation projects; Carbon Capture and Storage (CCS) Projects).

 

What is REDD/REDD+

REDD+ is a framework created by the UNFCCC Conference of the Parties (COP) to guide activities in the forest sector that reduce emissions from deforestation and forest degradation, as well as promote the sustainable management of forests and the conservation and enhancement of forest carbon stocks in developing countries. The difference between REDD and REDD+ is that REDD stands for ‘Reduces Emissions from Deforestation and (forest) Degradation)’ . The “+” takes into account additional elements that include sustainable management, conservation, and enhancement.

Carbon credits are generated from carbon offset projects. A single carbon credit is equal to one tonne of carbon that has avoided being emitted or has been permanently removed from the atmosphere. Many projects are independently verified through both country-based (e.g., ACCU, Label bas Carbone) and international standards (e.g. VCS, Gold Standard). Carbon Credits are tradeable, and their price can fluctuate, based upon demand, quality and verification standard – with VCS and Gold Standard being the highest quality level.

 Carbon credits are purchased  by companies to compensate for the remaining greenhouse gas emissions that they are responsible for. To achieve a Science Based Targets Initiative (SBTi) aligned net zero target, companies will need to reduce their emissions by 90% vs their baseline year.  Offsets at the point of declaring net zero cannot be more than 10% of baseline year emissions, and will need to support carbon sequestration projects outside of the value chain.

Our approach

We are prioritising the decarbonisation of our business, with a science based long-term target to reach net zero by 2040 and a short term target to reduce our emissions by 30% by 2030 (vs. 2019). To do this, we are investing in reducing emissions from our own value chain as far as we can, and then using offsetting only where necessary to remove any remaining emissions (up to 10% of baseline emissions).

We are taking a limited approach to using carbon offsets, and are prioritising investment in the decarbonisation of our own business.  We use offsetting only where necessary and do not use carbon offsetting to help reduce our own emissions.

We have purchased a limited amount of carbon offsets (100k tCO2e between 2022-2024) to support our carbon neutral sites programme, which supports selected manufacturing sites to become carbon neutral, PAS 2060 certified.  This limited approach is in line with SBTi guidance.  All of the sites selected have to demonstrate decarbonisation in line with our SBTi targets, and have a plan to continue to reduce emissions over the next three years, in order to maintain certification.

We are committed to using the highest quality Gold Standard or Verified Carbon Standard carbon credits, ideally sourced from within our territories. We are prioritising nature-based carbon removal projects where available. We also use some high-quality carbon avoidance projects such as REDD/REDD+ forest protection programmes.  We recognise the need for scrutiny of the voluntary carbon market and the evolution of methodologies aligned with scientific consensus.

Over the longer term we will look for alternatives to purchasing offset credits from the open market. This will include exploring how we can invest directly in carbon removal projects to generate our own carbon credits over the longer term.   Doing so would give us more direct control over the types of projects, locations, and the co-benefits (e.g. water replenishment and biodiversity benefits) that we are supporting.

 

CCEP’s carbon offsetting projects

CCEP has purchased carbon offsets from two different projects in Indonesia. The carbon credits from these projects will be used to offset ~100k tCO2e of emissions for our carbon neutral sites between 2022-2024.

How we select projects:

We completed a lengthy procurement process, reviewing 21 different providers, and their project portfolios. We work with two partners – Eco-Act and TEM as they were able to provide us projects that met our criteria, including: low risk profile, located within CCEP territories, carbon removal projects, or high-quality carbon avoidance programmes (e.g., REDD/REDD+; renewable electricity projects), Gold Standard and/ or VCS Certified; and able to be used for PAS 2060 certification.

Both Ecoact and TEM also complete additional due diligence on the projects that they offer to their customers, in addition to any certification that the project holds.

The projects:

Rimba Raya, Pulau Borneo: The Rimba Raya biodiversity reserve project, in addition to being a VCS-certified carbon avoidance/REDD+ project which protects rainforest and peatland from palm oil plantation conversion, was also certified as the first global Sustainable Development Verified Impact Standard (SDVIS) project, offering co-benefits that are line with the UN’s Sustainable Development Goals.

Katingan Peatland Restoration Project: This peatland restoration project is a VCS certified project, which aims to avoid planned deforestation, as well as reforest the area, providing additional carbon removal benefits. Katingan is rated at AAA- on the independent ratings site, BeZero. This places Katingan among the top ten highest rated projects globally on their platform.

 

Our Position on Carbon Offsetting

Renewable Electricity

Why it matters

Renewable electricity is electricity that comes from a self-replenishing source such as wind, solar and/or hydro-power.  Renewable electricity can either be generated directly on-site (via solar panels, for example) or is generated off-site and can be purchased through a range of mechanisms, such as Renewable Electricity Certificate schemes e.g., Renewable Energy Certificates (RECs), Guarantees of Origin (GOOs), or REGOs (Renewable Electricity Guarantees of Origin); or through Power Purchase Agreements (PPAs) or Virtual PPAs

 Energy production is the biggest source of human-caused greenhouse gas (GHG) emissions, worldwide1. Scientists2 have warned that the world must act decisively to reduce the GHG emissions from fossil fuels to limit global warming. Rapid policy action and mobilisation of financing is needed, especially in developing countries, to scale electrification, renewable energy production and energy efficiency. These actions will also increase global energy security.

As renewable electricity comes from non-fossil fuel sources, it has a very low  carbon footprint (at or near zero) which makes its expansion critical to global decarbonisation.

1.WRI GHG emission data 2. IEA Coal Transitions Report; IPCC Mitigation of Climate Change

Our approach

Shifting to renewable electricity is key to drive decarbonization across our entire value chain – both for our own operations; for our customers where our cold drinks equipment is used; as well as in the production of our packaging and ingredients. Demand-side signals are critical in driving the transition to renewable electricity. That is  why, as a member of The Climate Group’s RE100 initiative, we have committed to using 100% renewable electricity across all of our markets by 2030 and have asked our carbon strategic suppliers  to do the same. It is also why we joined over 200 companies, as part of the We Mean Business Fossil to Clean campaign, to sign an open letter calling on governments to agree on a full phase out of unabated fossil fuels at COP 28 and to back that up with policies enabling the rapid scaling of clean energy.

 Within our own operations, we are working towards this 100% renewable electricity target by purchasing renewable electricity through mechanisms such as PPAs and the use of RECs/GOOs. In Europe and New Zealand, we have switching to using 100% renewable electricity. Across Australia, the Pacific and Indonesia (API), 20.5% of the electricity purchased in 2022 was from renewable sources.

 We know more progress is needed, particularly in our markets in API, which have a slower renewable electricity transition.  We will engage directly with national and local governments and stakeholders in our markets to advocate for change via policies that encourage the removal of barriers and enable the scaling of 100% renewable electricity.

Our Position on Renewable Electricity

Carbon Pricing

Why it matters

Carbon pricing is a way to reduce GHG emissions, by attributing a cost to them. There are two forms of carbon pricing – external and internal.

External carbon pricing systems aim to set a price on GHG emissions. These include Emissions Trading System (ETS), Emission Reduction Funds, or Carbon Taxes.

  • Emission Trading Schemes (such as the EU ETS), are cap and trade permit schemes where there is a cap on the total amount of emissions allowed to be emitted. Companies covered by the ETS are usually from industries with high emissions who are required to hold an allowance (unit) per tonne of GHG emitted. As these allowances can be bought and sold, the supply and demand of these allowances will vary, causing high variability in the price of carbon.   
  • Carbon taxes occur when a government taxes GHG emissions over and above a set level, either across country or based on industry level emissions.
  • Emission Reduction Funds are schemes where a government buys credits created by emission reduction or carbon sequestration projects – an example is the Australian ERF scheme, which issues Australian Carbon Credit Units (ACCUs) for every tCO2e avoided or stored. 

 

Internal carbon pricing is a company-specific strategic planning method, whereby companies set an internal ‘cost of emissions’; either as a shadow price, or as an internal charge.  Adding the cost of CO2 emissions as a performance indicator can help to make the cost of GHG emissions reductions activities more comparable and relevant, and support companies in making decisions that support decarbonisation.  For example, a high  capital expenditure (CAPEX) project that has a long pay pack period (i.e. internal rate of return or ‘IRR’), but that shows a low cost per tonne of carbon saved versus the internal carbon price, may support the prioritisation of these types of projects.

 

Our approach

We understand the role internal carbon pricing can play in driving our low-carbon transition and to reflect the financial impact of decarbonising our value chain and we are piloting the use of a shadow carbon price of  100€/tonne within Europe. This means that the carbon price will be used to guide decision making for some processes (e.g. CAPEX planning) but will not result in an internal fee. We will review the price regularly, and will look to expand to other markets, as we mature our data and our processes.

 

Our Position on Carbon Pricing

Carbon Capture Utilisation and Storage

Why it matters

Carbon Capture Utilisation and Storage (CCUS) refers to a series of technologies that are being developed to capture CO2 either at the point of emissions, including power generation or industrial facilities that use either fossil fuels (known as Carbon Capture), or directly from the atmosphere (known as Direct Air Capture or DAC)1.  The captured CO2 can then either be used directly  (Carbon Capture Utilisation; e.g. used as feedstock for sugar, plastics or concrete), or permanently stored (Carbon Capture Storage, e.g. trapped in deep geological formations underground). 

Bioenergy with carbon capture and storage ( BECCS), is another form of carbon capture and storage, where biogenic sources such as trees or plants are used to create heat, power or biofuels (e.g. bioethanol), and the CO2 that was absorbed by trees or plants during their growth is released.  In a BECCS plant, these released emissions are permanently captured and stored in deep geological formations.

CCUS is recognized  by the IPCC as playing a role in meeting global climate goals, it is not a solution on its own. While this technology could provide hard-to-reduce sectors (e.g. energy, cement, oil & gas) a way in which to offset their emissions, it should not be seen as a replacement for heavy decarbonisation of these industries. 

1, IEA

Our approach

We take our responsibility to reduce our greenhouse gas emissions seriously. We are committed to decarbonising our entire business, in line with a 1.5˚C reduction pathway, including reducing our absolute GHG emissions by 30% by 2030 (vs 2019) and a long term target to reach Net Zero by 2040.

 Our investment arm, CCEP Ventures, is funding early stage research in both DAC and Carbon Utilisation technologies which could drive carbon reduction in our business over the long term.

  • Direct Air Capture (DAC) Investments – CCEP Ventures has invested in technologies which look at the potential to capture CO2 from the atmosphere and use it as an ingredient in our drinks. This includes two research projects with the Universities of Tarragona and University of Twente into alternative sorbent materials.  These projects have the potential to help reduce both our fugitive CO2 losses, and reduce the emissions of our ingredient CO2 in the longer term.
  • Carbon Utilisation Investments: CCEP Ventures has invested in research into captured carbon which could be used to produce ingredients, such as sugar (through research with the University of Berkeley) or ethylene, a key precsuror of PET (through the University of Swansea).  If this early stage research is viable and scaleable, products sourced in this way would have a lower carbon footprint.

Our Position on Carbon Capture Utilisation and Storage