{"id":40250,"date":"2024-08-23t13:46:17","date_gmt":"2024-08-23t13:46:17","guid":{"rendered":"\/\/www.getitdoneaz.com\/?p=40250"},"modified":"2024-08-26t13:51:30","modified_gmt":"2024-08-26t13:51:30","slug":"coca-cola-business-sustainability","status":"publish","type":"post","link":"\/\/www.getitdoneaz.com\/story\/coca-cola-business-sustainability\/","title":{"rendered":"coca-cola chief sustainability officer takes accountability and paves way for business of sustainability"},"content":{"rendered":"\n<p><strong><em>by ananya chandhok<\/em><\/strong><\/p>\n\n\n\n<p>climate change is threatening people globally, but it also presents business opportunities through innovation and sustainability, said bea perez, global chief communications, sustainability, and strategic partnerships officer at coca-cola.<\/p>\n\n\n\n<p>perez addressed hundreds of global influencers and upcoming mba entrepreneurs at northwestern university\u2019s kellogg climate conference this spring. perez and other corporate leaders advocated for sustainability during the impending climate crisis linked to rising temperatures, economic instability, weather disasters and water insecurity.\u00a0<\/p>\n\n\n\n<p>the conference drew on expertise from the energy, transportation, agriculture, food, finance and other sectors to leverage solutions, such as the generating enough electricity and parts to transition to electric fleets for corporate shipping and mass transit.&nbsp;<\/p>\n\n\n\n<p>an anticipated $1.3 trillion in investment will be needed to innovate and curb climate pain points companies have inflamed in recent years, turning the spotlight on the sustainability leaders globally.&nbsp;<\/p>\n\n\n\n<p>perez focused on coca-cola\u2019s recent sustainability efforts and errors at the conference hosted by the kellogg school of management and northwestern\u2019s paula m. trienens institute of sustainability and energy.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">evaluating big business&#8217;s responsibility to mitigate climate change<\/h2>\n\n\n\n<p>kellogg brought corporate&nbsp;leaders from companies including exxon-mobil, invenergy, and general motors under one roof to educate and prepare future business leaders to prioritize sustainability and innovation.&nbsp;<\/p>\n\n\n\n<p>there\u2019s two things everybody should understand about climate \u2014 where do greenhouse gasses come from and how are industries and companies following through on climate mitigation goals, said meghan busse, associate professor of strategy at the kellogg school of management.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"4000\" height=\"2667\" src=\"\/\/www.getitdoneaz.com\/wp-content\/uploads\/2024\/07\/dsc5201.jpeg\" alt=\"\" class=\"wp-image-40251\" style=\"width:756px;height:auto\"\/><figcaption class=\"wp-element-caption\">meghan busse, associate professor of strategy at kellogg school of management, kicked off the second kellogg climate conference by voicing three areas of accountability \u2014 power use, industrial processes and transportation \u2014 as she addressed major corporations and future management leaders. <em>(<\/em>ananya<em> <\/em>chandhok)<\/figcaption><\/figure><\/div>\n\n\n<p>perez combined the outlook for commercial profitability and sustainability to evaluate what roles the fortune 500 company plays in prioritizing the climate as a key strategy in decisions, not just an offshoot program.&nbsp;<\/p>\n\n\n\n<p>her theme was accountability \u2014 owning up to coca-cola\u2019s mistakes and reimagining the company\u2019s more recent role in mitigating climate change. some steps included changing bottle design and water conservation.&nbsp;<\/p>\n\n\n\n<p>\u201cdon\u2019t you think we have a responsibility as a business to manage those resources [water and carbon] and do better?\u201d perez said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">taking accountability<\/h2>\n\n\n\n<p>by reducing the amount of carbon used to produce a singular coca cola product by 25%, perez said the company found a loophole when they first tried to focus on sustainability.&nbsp;<\/p>\n\n\n\n<p>their per unit carbon usage was down, but since business was growing, it let coca-cola grow their carbon emissions in \u201cabsolute terms,\u201d perez said.&nbsp;<\/p>\n\n\n\n<p>\u201cwe made a mistake,\u201d perez said. \u201cand so just as any smart business group would do\u2026 we had to reset the plan.\u201d<\/p>\n\n\n\n<p>in other words, coca-cola needed to establish new targets that held all aspects of their business accountable in lowering their carbon emissions \u2013 and not just their production line.&nbsp;<\/p>\n\n\n\n<p>perez also recognized the role fortune 500 companies play in restoring resources like water.&nbsp;<\/p>\n\n\n\n<p>\u201cyou can\u2019t have a conversation about climate, unless you talk about water,\u201d perez said.&nbsp;&nbsp;<\/p>\n\n\n\n<p>coca-cola established three goals hoping to restore all the water they use for production globally: using 100% regenerative water across 175 facilities facing \u201chigh water stress,\u201d improving 60 watersheds\u2019 health, and returning two trillion liters of water to communities.&nbsp;<\/p>\n\n\n\n<p>in 2021, coca-cola introduced regenerative water as a metric for achieving their sustainability goals. the concept includes reducing, reusing, recycling and replenishing water to communities for nature and other stakeholders to use, according to their 2021 sustainability report.&nbsp;<\/p>\n\n\n\n<p>perez\u2019s talk put more responsibility on corporations to work on climate change mitigation, rather than falling on the consumer.&nbsp;<\/p>\n\n\n\n<p>\u201cwater is a human right\u2026 a lot of places in developed countries don\u2019t have water regulation. if you go into emerging markets, they typically do. and so how do you make sure there&#8217;s [a] great water policy in place for people and for society?\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">emphasizing community<\/h2>\n\n\n\n<p>perez said that between 2018 to 2022, there were only 18 days, on average, between every billion-dollar disaster, compared to 82 days in the 1980s.&nbsp;<\/p>\n\n\n\n<p>coca-cola shifted its value proposition from getting communities to spend money on their products to investing back into the communities where resources are acquired from.<\/p>\n\n\n\n<p>\u201cif you don\u2019t have strong communities, you don\u2019t have businesses,\u201d perez said.&nbsp;<\/p>\n\n\n\n<p>\u201cwater still will always be number one, but it cuts in many slices\u2026 some people say, \u2018we saw you met your target five years ahead of schedule, so what are you doing today?\u2019\u201d perez said.&nbsp;<\/p>\n\n\n\n<p>she said coca-cola is now working to replenish 100% of the water it uses.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">room for improvement<\/h2>\n\n\n\n<p>despite getting&nbsp;ahead of<em> their<\/em> target, coca-cola falls short compared to the company\u2019s leading food and beverage competitor: pepsico.<\/p>\n\n\n\n<p>pepsico used 1.4 liters of water per liter of beverage product produced, according to their <a href=\"https:\/\/www.pepsico.com\/our-impact\/esg-topics-a-z\/water#:~:text=in%20pepsico%20and%20third%2dparty,within%20convenient%20foods%20production%20plants.\">water stewardship approach<\/a>, which is 0.39 liters less than of coca-cola\u2019s usage in their latest business and sustainability report.&nbsp;<\/p>\n\n\n\n<p><span id=\"docs-internal-guid-a1f46e76-7fff-8d5d-ed7e-16f9a848d60c\"><span style=\"font-size: 9pt;, serif;font-style: italic;vertical-align: baseline\"> <\/span><\/span>perez also spoke about the importance of independent auditing for environmental, social and governmental reporting.&nbsp;<\/p>\n\n\n\n<p>\u201cimagine if it were just coca-cola saying, \u2018hey, we did this,\u2019\u201d perez said. \u201cdo you think you would believe me? this is a little bit like a conflict of interest, right?\u201d&nbsp;<\/p>\n\n\n\n<p>esg reporting involves publicly disclosing information about environmental, social and governmental business operations, according to the <a href=\"https:\/\/www.thecorporategovernanceinstitute.com\/insights\/lexicon\/three-pillars-of-esg-ultimate-guide-to-esg\/\">corporate governance institute<\/a>.&nbsp;<\/p>\n\n\n\n<p>coca-cola made the switch to sustainability report auditing through ernst and young, a multinational professional services company, in 2015.&nbsp;<\/p>\n\n\n\n<p>coca-cola was one of the first in the pack, since only 2% of fortune 500 companies started esg reporting back then, perez said.&nbsp;<\/p>\n\n\n\n<p>perez urged audience members to look up coca-cola\u2019s business and sustainability reports, which replaced the reports that were originally only geared towards quantifying how well the company was reaching sustainability targets.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>the transition came after coca-cola realized it was sending \u201cunintended signals\u201d that they had two separate reports, perez said.&nbsp;<\/p>\n\n\n\n<p>\u201cit would look as if it [sustainability] wasn\u2019t important to our business,\u201d perez said. \u201cfrankly, you saw throughout those charts how important it [sustainability] is to our business].\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">a data-informed approach<\/h2>\n\n\n\n<p>coca-cola incorporates a next-generation data platform to track and manage progress against esg metrics and has abided by the sustainability accounting standards board standards since 2020, according to their<a href=\"https:\/\/www.coca-colacompany.com\/content\/dam\/company\/us\/en\/policies\/pdf\/sustainability\/2021-reporting-framework-indexes.pdf\"> 2021 reporting frameworks and sustainable development goals<\/a>.&nbsp;<\/p>\n\n\n\n<p>the company focuses on water leadership, packaging, climate, sustainable agriculture and communities in their esg report, according to their <a href=\"https:\/\/www.coca-colacompany.com\/content\/dam\/company\/us\/en\/reports\/coca-cola-business-sustainability-report-2022.pdf#page=24\">2022 business and sustainability report<\/a>.&nbsp;<\/p>\n\n\n\n<p>\u201cwe integrated the data,\u201d perez said. \u201cwe made sure that we have the same standard that we have in our financial reporting as we have in here \u2014 [the esg report].\u201d<\/p>\n\n\n\n<p>currently, companies are only required to report scope 1 and scope 2 criteria, which involve reporting greenhouse gas emissions from sources an organization directly owns and from indirect energy sources the company has purchased, according to the <a href=\"https:\/\/www.sec.gov\/news\/statement\/gensler-climate-disclosure-20220321\">securities and exchange commission.&nbsp;<\/a><\/p>\n\n\n\n<p>scope 3, emissions that the company does not produce by itself and are not from the companies\u2019 assets, and water consumption reporting are still not required by the sec.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">navigating the future of esg reporting<\/h2>\n\n\n\n<p>currently, coca-cola\u2019s reporting has been voluntary in the u.s., so accountability hasn\u2019t come at a penalty cost, yet.&nbsp;<\/p>\n\n\n\n<p>but what happens when the sec enforces mandatory esg reporting?<\/p>\n\n\n\n<p>on march 6, the sec adopted rules to \u201cenhance and standardize climate-related disclosures by public companies,\u201d according to the sec\u2019s <a href=\"https:\/\/www.sec.gov\/files\/rules\/final\/2024\/33-11275.pdf\">enhancement and standardization of climate-related disclosures for investors.&nbsp;<\/a><\/p>\n\n\n\n<p>while declaring water-usage was proposed as an inclusion&nbsp; for the final rule, it was ultimately axed to simplify requirements and prevent putting a \u201ctopical focus\u201d on any one climate-related disclosure, according to the disclosure.&nbsp;<\/p>\n\n\n\n<p>coca-cola has already begun anticipating the sec\u2019s future moves towards making sustainability reporting mandatory.&nbsp;&nbsp;<\/p>\n\n\n\n<p>&nbsp;perez said she tells her team to consider how much voluntary reporting they\u2019re doing that could impact mandatory reporting in the future.&nbsp;<\/p>\n\n\n\n<p>\u201cif you report work you\u2019re really not doing, with the sec rules, you\u2019re going to have personal fines to executives, criminal penalties potentially. so the stakes are higher,\u201d perez said.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>at this spring&#8217;s kellogg climate conference, coca-cola&#8217;s chief sustainability officer discussed sustainability measures coming to  big business. <\/p>\n","protected":false},"author":9417,"featured_media":40293,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4907,4916,4904],"tags":[125,144,7099,179,7098,4284,81],"storyfest_categories":[],"class_list":["post-40250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-economics","category-climate","category-water","tag-business","tag-climate-change","tag-coca-cola","tag-energy","tag-kellogg","tag-sdgs","tag-sustainability"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>coca-cola chief sustainability officer paves way for sustainability<\/title>\n<meta name=\"description\" content=\"at this spring&#039;s kellog climate conference, the chief sustainability officer at coca-cola discussed sustainability measures coming to 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