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UNIVERSITY OF BEDFORDSHIRE

UNIT TITLE			: 	Logistics and Supply Chain Management UNIT CODE			:	BSS065-6 STUDENT NAME		:	TESSON BRADSHAW STUDENT NUMBER	:	2127512 ASSIGNMENT		:	#1 – REPORT – COCA-COLA

TABLE OF CONTENTS TOPIC	PAGE NUMBER Introduction	3 Carbon Emissions	4 Energy Usage	4 Waste (Mostly Plastics)	5 Use of Water	6 Child and Forced Labour	7 Sustainable Supply Chain	8 Conclusion	9 References	9

INTRODUCTION Supply Chain Management (SCM) is seen as a crucial to an organization's long-term revenue, profit, and end-user growth. In an era of cutthroat market share rivalry, corporations lose social and environmental responsibilities. Sometimes groups serve these functions to convince governing bodies. Aligning sourcing, manufacturing, distribution, transportation, and remanufacturing/recycling with carbon footprint reduction is crucial. Green supply chain integrates environmental thought into sourcing, design, manufacturing, transport, and even product disposal. This helps identify the enablers of green supply chain deployment and the benefits of Green SCM (GSCM) practises. The goal of this paper is to critically examine the applicability of the theoretical concepts within the domains of Green Supply Chain management of Coca-Cola Company, as well as to evaluate the concerns and problems associated with the operational implementation of these principles. Every day, customers in over 200 countries across the world consume a total of more than 1.9 billion servings of their beverages. Refreshment is available to people all around the world, due in large part to the 700,000 people employed by The Coca-Cola Company and its more than 225 bottling partners. Coca-Cola Bottling Co. and Coca-Cola System Bottling LLC are among the bottling partners. Minute Maid was purchased by them in the year 1960. That was the first step toward establishing an all-encompassing beverage company and being present when people were enjoying and sharing the happiest moments of their lives. According to the Gartner top 25, the Coca-Cola firm was ranked 13 in 2020, 18 in 2021, and 12 in 2022.

CARBON EMISSIONS Coca-Cola has embarked on a carbon lowering project by lowering the amount of unused (virgin) plastic produced in the United States they have teamed up with the World Wildlife Fund (WWF). The WWF's Resource: Plastic accounting technique will be used to measure progress, and the data that is collected will be utilised to drive solutions that are actually implemented. They have investing one hundred million dollars to improve the sorting, processing and collection of used plastic bottles throughout four important regions in the United States. To facilitate an increase in the amount of recycled plastic that can be converted into beverage bottles, a fund supported by the industry will attract an additional $300 million in matching grants and investment. This fund will be managed by the Recycling Partnership and Closed Loop Partners. Once this is manage well this will reduce Coca-Cola carbon emissions by 40%. “It has been found that several organizations have started realizing the importance of the environment and are implementing green policies to reduce carbon footprints and this behaviour is prevalent in all the sectors.” (Matsuhashi and Takase, 2015)

ENERGY USAGE Coca-Cola has being putting major effort into progressing in the area of renewable energy program. They have been working locally in numerous markets to embrace renewable energy efforts, and they have developed a Clean Energy Toolkit in order to assist local teams in making educated decisions regarding future investments. They have 81 operational renewable energy projects in 25 countries as of the end of 2020, and they were actively pursuing 50 additional projects. Solar power makes up the vast majority of the projects, constituting 43% of the total; yet, although making up only 7% of the projects, wind power generates 37% of the overall capacity for renewable energy. The Coca-Cola European Partners (CCEP) partnership has committed to obtaining 100 percent of its electricity from renewable sources by the year 2030. In 2020, about 42% of the energy consumed at CCEP's manufacturing and non-manufacturing facilities came from renewable or low-carbon energy sources. Seventy-five percent of the electricity that CCEP purchased came from renewable sources in 2020. Coca-Cola Fomento Economico Mexicano, S.A.B. de C.V (FEMSA) has set a goal to manufacture products using 85% renewable electricity by the year 2030 in Mexico. As of the end of 2020, they have reached 46% of their goal. The Hindustan Coca-Cola Bottling (HCCBPL) plant in India set a target of using 40% renewable energy by the year 2030 and had reached 39% by the end of 2020. The Coca-Cola Hellenic Bottling Company has committed to obtaining 40% of its annual energy requirements from sustainable and renewable resources by the year 2030. By the time 2020 came to a close, they had had accomplished 27% of their target. Once Coca-Cola continues down this part I am sure they will reach their target of 100% renewable energy source by 2030. [http://“As%20world%20population%20rises,%20so%20does%20the%20demand%20for%20energy%20in%20order%20to%20power%20our%20homes,%20businesses%20and%20communities.%20Innovation%20and%20expansion%20of%20renewable%20sources%20of%20energy%20is%20key%20to%20maintaining%20a%20sustainable%20level%20of%20energy%20and%20protect%20our%20planet%20from%20cl “As world population rises, so does the demand for energy in order to power our homes, businesses and communities. Innovation and expansion of renewable sources of energy is key to maintaining a sustainable level of energy and protect our planet from climate change.”] (White, 2015)

WASTE (MOSTLY PLASTICS) In 2009, The Coca-Cola Company launched plant bottle TM, the world's first fully recyclable PET plastic bottle made partially from plants. This innovation caused a stir in the sustainable packaging landscape and was a game-changer for the industry. Plant bottle packaging now accounts for 30%, of the company's packaging volume in North America and 7%, of the company's packaging volume globally. Some of the beverage brands that have found a home in plant bottle packaging include DASANI, Coca-Cola, and Gold Peak. Plant bottle has avoided the CO2 emissions equivalent to taking nearly 1 million vehicles off the road since 2020 by substituting up to 30% of the petroleum used to make PET plastic bottles with material derived from sugar cane and other plant matter. This has allowed the company to reduce its overall carbon footprint. Since the introduction of the plant bottle, Coca-Cola has given permission to non-competitive companies to use the technology and brand in their products. These companies' wares include everything from Heinz Tomato Ketchup to the fabric interior of certain Ford Fusion hybrid sedans. Coca-Cola has also investing in technology to use more recycled material in its packaging; making its plastic packaging lighter and easier to recycle; and innovating the underlying bio plastics technologies to further increase the world's supply of biomaterial that can be used in PET resin. These efforts are all part of the company's larger effort to increase the amount of biomaterial that can be used in PET resin. In addition to this, the company is working to encourage recycling in local communities all over the world by providing recycling bins, establishing collection centers, and promoting recycling. Waste management define, “Plastic mismanagement typically encompasses several waste management outcomes, including uncontrolled landfills, waste dumping, open burning, littering, and eventual leakage into ecosystems.” (Powrie et al., 2021)

USE OF WATER The Coca-Cola Company consumes approximately 305 billion liters of water annually, which is equivalent to 1.9 billion servings being consumed every single day. They determined that the year 2020 would be the target for achieving the goal of restoring the same quantity of water to both the natural environment and human communities. Through locally-led initiatives such as Project Catalyst, Australia has been an instrumental player in the early realisation of the company's goals to replenish water supplies around the world. They recognised the importance of restoring the water that was consumed in the manufacturing process and consequently accepted the responsibility to do so. As a result, they have established a worldwide objective to achieve water parity in their beverages and production facilities by the year 2020. Project Catalyst is a partnership that aims to test and promote more sustainable sugarcane farming practices. Locally, the water replenishment contribution that Coca-Cola makes is carried out through this partnership. Through the implementation of agricultural innovations such as targeted soil analysis, digital mapping, and precision farming practices in sugar cane production, these practices help to reduce agricultural pollution and improve the quality of more than 150 billion liters of water flowing into the Great Barrier Reef. This is accomplished by reducing agricultural runoff and improving water quality. Through the efforts of Project Catalyst, more environmentally responsible methods of cultivating sugarcane have been implemented, which has resulted in a reduction in agricultural pollution and an improvement in the quality of the more than 150 billion litres of water that flow into the Great Barrier Reef. As a result of the accomplishments achieved to this point by Project Catalyst, both the Coca-Cola Foundation and the Australian Federal Government have committed additional financial support to the initiative. The Coca-Cola Foundation, which was a founding partner and has been a steadfast supporter of Project Catalyst since its inception, has decided to make a contribution of $655,000. This will bring the total amount of money that the company has contributed to Project Catalyst to AUD$5.96 million since the beginning of the initiative seven years ago. “[http://The%20Australian%20government's%20Department%20of%20Environment%20and%20Energy%20has%20announced%20a%20grant%20of%20$3%20million%20for%20Project%20Catalyst,%20an%20initiative%20that%20aims%20to%20improve%20the%20water%20quality%20of%20the%20Great%20Barrier%20Reef.%20This%20grant%20is%20part%20of%20the%20third%20phase%20of%20investment The Australian government's Department of Environment and Energy has announced a grant of $3 million for Project Catalyst, an initiative that aims to improve the water quality of the Great Barrier Reef. This grant is part of the third phase of investment that is being made as part of the Reef Trust.”] (Taylor and Eberhard, 2020)

CHILD AND FORCED LABOUR Human rights consequences must be identified, prevented, and mitigated. Independent audits continue. A method for confirming human rights code compliance, including forced labour or human trafficking. Since 2003, The Coca-Cola Corporate has undertaken over 30,000 third-party audits of company offices, sites, franchise bottlers, and suppliers. 92% of their bottling partners and 91% of our direct suppliers met our Supplier Guiding Principles in 2019. 93% of their facilities followed Human Rights Policy. The company helps non-compliant sites fix errors, improve continuously, and show progress during the next audit. They're committed to getting bottling operations and suppliers to 98% SGP compliance by 2021. Coca-Cola helps eradicate human trafficking and forced labour. They participate in industry and cross-sector activities. The company adopts the Consumer Goods Forum (CGF) Priority Principles on forced labour, including: every worker should have freedom of movement; no worker should pay for a job; and no worker should be indebted or coerced to work. Coca-Cola co-chaired the member implementation work stream. As part of implementing the plan, they spread the information among suppliers and peers. In the world today “nearly 1 in 10 children are subjected to child labour worldwide, with some forced into hazardous work through trafficking.” (Agyare, 2021)

SUSTAINABLE SUPPLY CHAIN Coca-Cola has aspired to secure 100% of its priority components from sustainable sources, such as natural sweeteners (cane sugar, beet sugar, high-fructose corn syrup and stevia), fruit juices (oranges, lemons, apples, grapes and mangoes), coffee, tea, soybeans and forestry products (pulp and paper). This requires supplier farms to meet global sustainability standards that align with their new Sustainable Agriculture Principles (PSA). Human and workplace rights, environmental preservation, animal health and welfare, and appropriate farm management are all addressed in these standards. A resilient agricultural supply chain is critical to their interconnected goals, including climate, water, human rights, and women's empowerment. They reviewed our Sustainable Agriculture Guiding Principles (SAGP) and its governance in 2020, and released new principles in 2021. (PSA). They upgraded and improved their criteria for sustainable agricultural practises for ingredients and plant-based packaging, taking into account human rights, labour and income, the preservation of water sources, ecosystems, forests, and biodiversity, and animal welfare. A comprehensive bottler and supplier governance system was also implemented to encourage continuous improvement in their agricultural supply chain. They also implemented a system to periodically check and verify PSA compliance amongst their suppliers. In case of risk or non-compliance they work with the supplier to bring the activities into compliance and to set criteria for future cooperation. These checks and balances will insure that sustainable supply chain will be up on and running for many years to come. Sustainable development is defined as “a development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” (Gehlen, 2010) CONCLUSION In conclusion, Coca-Cola has maintained its digital transformation by innovating fundamental processes to improve resilience, agility, and efficiency, as well as by increasing transparency and traceability across their whole supply chain. In addition, they recently declared an industry-leading objective of considerably increasing their use of reusable packaging by 2030. It is safe to say that Supply Chain Management (SCM) plays an integral part in affecting the profit line inclusive of all potential revenue and is a major contributor to growth in the relevant industries. Subsequent to examining the various theoretical concepts that SCM affects, the one most affected by proper management of the supply chain is the effect it has on the environment and the physiological and physical state of persons. Balancing effective management with the preservation of a healthy environment is essential to the ultimate success of a sustainable, effective and profitable supply chain making SCM an integral, if not, ultimate aspect of ensuring that the supply of goods and services is harmoniously linked to maintaining and respecting all of the other principal factors involved in the process.

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