MASHINIi

COCA-COLA HBC AG.

CCH.LSE | Manufacture of soft drinks; production of mineral waters and other bottled waters

Coca-Cola HBC AG is a bottling partner of The Coca-Cola Company. The company manufactures, sells, and distributes a wide range of non-alcoholic beverages, including sparkling drinks, juices, water, sports drinks, energy drinks, ready-to-drink tea and coffee, and premium spirits. It operates in vario...Show More

Ethical Profile

Mixed.

Coca-Cola HBC AG shows a mixed ethical record. While achieving a 19% sugar reduction by late 2023 towards a 25% goal, its sugary products are linked to health concerns like obesity. Critics also cite alleged greenwashing over recyclability. The company powers its EU and Swiss plants with 100% renewable electricity and targets net zero by 2040. However, despite 100% recyclable primary packaging, reports suggest only 56% was collected in 2023. Worker respect concerns include a 44:1 CEO-to-median pay ratio and no Living Wage Foundation accreditation. It also ceased sales in Russia, incurring a €190 million charge.

Value Scores

Better Health for All-10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing10
-100100
Honest & Fair Business20
-100100
Kind to Animals20
-100100
No War, No Weapons-60
-100100
Planet-Friendly Business-30
-100100
Respect for Cultures & Communities40
-100100
Safe & Smart Tech10
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

-10

The company's products, particularly sugary soft drinks, are linked to negative health outcomes such as obesity, type 2 diabetes, and dental issues.

1
However, Coca-Cola HBC is undertaking active nutritional improvement efforts, having achieved a 19% reduction in average added sugars in its soft drinks by the end of 2023, against a 25% target by 2025.
2
It has also expanded its portfolio to include more low- and no-calorie beverages.
3
For transparency, the company provides clear nutritional information on its packaging, including front-of-pack labels with calorie content and a 'traffic-light' color scheme.
4
It adheres to responsible marketing policies, such as not advertising to children under 13 and not offering soft drinks in primary schools.
5
The company's operations do not involve health-related products or services requiring price accessibility, vulnerable reach, healthcare data management, pharmaceutical patents, or clinical trials.

Fair Money & Economic Opportunity

0

Coca-Cola HBC AG is a beverage bottling company and does not operate as a financial institution. Consequently, it does not offer lending, deposit, or other financial services to consumers. Therefore, all KPIs related to financial products, pricing, fees, debt burden, customer financial data, and financial literacy programs are not applicable to its core business model. While the company engages in initiatives such as the #YouthEmpowered program, which trained over 944,948 young people by 2023 in business acumen and life skills

1
, and makes significant operational investments, like $1 billion in Nigeria to support its value chain
2
, these activities do not directly align with the specific financial service metrics outlined in the 'Fair Money & Economic Opportunity' rubric.

Fair Pay & Worker Respect

0

Coca-Cola HBC AG's CEO-to-median employee pay ratio was 44:1 in 2024.

1
The company reported a gender pay gap of 38.8% in 2024, indicating that women earned 61.2% of men's pay.
2
Its employee engagement score was 81% in 2022, exceeding the industry average of 75%.
3
Voluntary employee turnover was 10.5% in 2024.
4
The company has an anti-discrimination policy, an incident notification mechanism, retaliation safeguards, and confidentiality mechanisms for addressing harassment and discrimination.
5
In Switzerland, annual evaluations confirm no significant pay differences between men and women.
6

Fair Trade & Ethical Sourcing

10

In 2024, 96% of key agricultural ingredients, including sugar, HFCS, and fruit crops for juices, were certified under the Principles for Sustainable Agriculture (PSA) framework.

1
This framework incorporates recognized third-party standards such as Rain Forest Alliance and Fairtrade International.
2
Critical suppliers are assessed annually.
3
Significant Tier 1 and Tier 2 suppliers undergo assessment at least 80% annually.
4

Honest & Fair Business

20

Coca-Cola HBC AG achieved a score of 94 out of 100 in the S&P Global Sustainability Yearbook in 2023, placing it in the top 1% globally.

1
The company maintains a zero-tolerance stance on corruption.
2
,
3
Its Anti-Bribery Policy emphasizes integrity and transparency, and it requires suppliers to adhere to anti-bribery laws, utilizing ESG audits and tools like EcoVadis to assess them.
4
,
5

Kind to Animals

20

The company has adopted and published Animal Health and Welfare Guiding Principles and Principles for Sustainable Agriculture, which include humane treatment of animals and compliance with the Five Freedoms of Animal Welfare.

1
It aims for 100% of its sourced ingredients to meet these principles.
2
For wildlife conservation, 100% of all wastewater from bottling plants is treated to levels supporting aquatic life since 2011.
3
In 2023, 98.7% of the water sourced was replenished, amounting to 18.3 million m3.
4
The company also aims to eliminate deforestation in its supply chain by 2025
5
and achieve a net positive impact on biodiversity by 2040.
6
The company does not conduct in-house or contracted animal testing operations, nor does it use or count live animals for testing.

No War, No Weapons

-60

Coca-Cola HBC suspended its direct business in Russia in March 2022 due to the Ukraine conflict

1
, ceasing sales of Coca-Cola products
2
and incurring a one-time charge of €190 million in the first half of 2022
3
, with an anticipated €82 million more in the second half
4
. However, the company reorganized its ownership structure
5
, and an entity producing Coca-Cola brands in Russia reported RUB77.3 billion in revenue in 2023
6
, indicating continued significant sales in a sanctioned regime through an indirect structure. In its supply chain, Coca-Cola HBC achieved 78% certification of agricultural ingredients under a sustainability framework in 2022
7
, with a goal for 100% by 2025
8
, reflecting adherence to enhanced humanitarian procurement standards but with remaining uncertified portions.

Planet-Friendly Business

-30

Coca-Cola HBC AG has set a net-zero target for 2040 across its entire value chain

1
, supported by an interim goal to reduce emissions by 25% by 2030
2
. Its science-based targets are validated by SBTi
3
, with Scope 1 and 2 targets aligned to a 1.5°C pathway for 2030 and 2040
4
, and Scope 3 targets following a Well-Below-2-Degrees scenario until 2030, then transitioning to a 1.5°C pathway
5
. In 2024, the company achieved a 98.4% waste diversion rate from landfill for its manufacturing waste
6
. However, its renewable energy consumption accounted for 24.22% of total energy in 2024
7
, a decrease of 19.73% from the previous year
8
. The company also reported using 24% rPET across its markets in 2024
9
.

Respect for Cultures & Communities

40

Coca-Cola HBC has no reported cultural appropriation incidents. The company demonstrates active measures for cultural site protection, including involvement in the restoration of the Bigar waterfall in Romania

1
and collaboration with the National Park Donau Auen in Austria to preserve local ecosystems and cultural landscapes
2
. Its Human Rights Policy outlines a proactive framework for preventing adverse human rights impacts, including those affecting indigenous peoples and cultural heritage, through due diligence and stakeholder engagement
3
. The company established a new charitable foundation with an initial €10 million funding
4
, and donated €1 million for social impact programs in Nigeria
5
, both supporting local communities and cultural traditions. Its #YouthEmpowered program has also trained over 944,000 youth since 2017
6
, fostering community engagement and local traditions.

Safe & Smart Tech

10

Coca-Cola HBC AG demonstrates a strong commitment to data protection and regulatory compliance. It states compliance with GDPR and other applicable data privacy legislations

1
, continuously monitors industry standards and regulations
2
, and has established processes for achieving and demonstrating compliance
3
. This includes monitoring upcoming EU AI regulations
4
and implementing a Consumer Health Data Privacy Policy (effective March 31, 2024) that prohibits selling consumer health data and ensures consumer access, correction, or deletion
5
. Users are provided with comprehensive rights including access, update, deletion, restriction, objection, portability, and consent withdrawal
6
. The company has maintained ISO/IEC 27001 certification for Information Security Management Systems for its primary IT centers in Sofia and Athens
7
. In terms of AI ethics, CCH.LSE has a Digital Ethics Code
8
and a Code of Business Conduct
9
, focusing on "responsible AI"
10
with a multifunctional team reviewing AI solutions
11
. For cybersecurity, it has implemented multi-factor authentication
12
and partnered with CyberArk (June 2024) to enhance identity security
13
. The company conducts simulated hacker attacks and vulnerability assessments with remediation of findings
14
, and a partnership with Accenture (December 2024) led to a 90% reduction in monthly cyber threat incidents
15
. Privacy by design principles are evident as it limits personal data collection to only necessary data
16
, retains it only for the required interval
17
, and never uses data beyond the agreed scope
18
. CCH.LSE conducts simulated hacker attacks and vulnerability assessments
19
.

Zero Waste & Sustainable Products

0

Coca-Cola HBC achieved 100% recyclability for its primary consumer packaging in 2022, 2023, and 2024

1
, meeting its 2025 target
2
. In 2024, 98.4% of total manufacturing waste was recycled or used for alternative purposes
3
. The company uses 46% rPET in plastic bottles in EU markets and Switzerland as of December 2024
4
, with a target of 50% by 2025
5
. Overall, 24% of total PET used across markets in 2024 was rPET
6
, with a target of 35% by 2025
7
. The company aims to collect the equivalent of 75% of its primary packaging by 2025
8
, having achieved 58% in 2024
9
. Coca-Cola HBC has numerous waste reduction initiatives, including training employees
10
, collaborating with suppliers and NGOs
11
, expanding reusable packaging
12
, and trialing new stretch film using 30% less material
13
. It has ambitious waste reduction targets, aiming to decrease absolute food losses by 30% by 2025 and 40% by 2030 from a 2019 baseline
14
, and has a zero waste-to-landfill target
15
. Food losses are monitored monthly at production sites
16
. Waste reduction requirements apply to all suppliers, service providers, and contractors
17
. Customer education includes dedicated in-store activations and public awareness campaigns on proper recycling
18
. The company integrates circular design principles by focusing on recyclable and reusable packaging
19
, including rPET bottles and returnable containers
20
.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.