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Designing and Executing a Sustainability Strategy for Coca-Cola

Coca-Cola, one of the most recognizable and beloved brands in the world, is available in

more than 200 countries and territories. Coca-Cola's beverage industry dominance allows it to

significantly contribute to the environment and society (Brondoni, 2019). Coca-Cola has recently

developed a thorough sustainability strategy to decrease its impact and contribute to a more

sustainable future after realizing the need to address its influence.

Coca-Cola's most pressing sustainability concerns are determined through the use of a

sustainability assessment. Therefore, this assessment will analyze the sustainability issues of

Coca-Cola, its efficient implementation, monitoring and reporting, and ongoing improvement

regarding stakeholder expectations and international norms.

Sustainability Assessment

Coca-Cola commissioned a thorough sustainability audit to help in developing its

complete sustainability strategy. Materiality analysis was used to rank sustainability issues from

most to least significant based on their potential impact on the company's stakeholders and the

degree of influence the company has over each issue (Angira, 2021). Coca-Cola used this

strategy to develop a practical sustainability plan that addresses the most critical issues. Water

stewardship, climate change, sustainable packaging, sustainable agriculture, and human and

labor rights were highlighted as five of Coca-Cola's pressing sustainability challenges in the

evaluation. Coca- stewardship, climate change, sustainable packaging, sustainable agriculture,

and human and labor rights were highlighted as five of Coca-Cola's pressing sustainability

challenges in the evaluation. Coca-Cola's operations and supply chain have significant

environmental and social implications, and the firm must address these impacts if it is to

contribute to a more sustainable future, as shown by these concerns.

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Coca-Cola faces a serious threat from water shortages, which led to the identification of

water stewardship as a top concern. It was recommended that Coca-Cola should change their

water management practices, including increasing water efficiency, collaborating with

stakeholders to manage water use better, and funding water stewardship projects (Johnson,

2019). As the greenhouse gas emissions from Coca-Cola factories and distribution networks

contribute to global warming, this problem has been prioritized. Coca-Cola's footprint is too

robust; therefore, the company must invest in renewable energy and energy efficiency measures

and collaborate with its suppliers to cut emissions at every stage of the value chain.

As Coca-Cola products come in a wide range of packaging materials, some of which

contribute to the problems of plastic pollution and other types of waste, sustainable packaging

has been recognized as an important concern (Mühlbacher & Böbel, 2019). As such, Coca-Cola

has to increase its efforts to encourage sustainable packaging by investing in recycling

infrastructure and forming collaborations with other businesses. Coca-products like Colas rely

heavily on sugar cane and maize, both of which are typically farmed using intensive agricultural

techniques that can have detrimental effects on the environment.

The recommendation is that Coca-Cola should engage with its suppliers to enhance its

sustainability performance and encourage sustainable agricultural practices, including water

conservation, soil health, and biodiversity preservation. Given the potential for societal

repercussions, notably on human and labor rights, from Coca-Cola's operations and supply chain,

this topic has been prioritized (Chmielarska, 2019). Similarly, Coca-Cola prevents human rights

violations in its operations and supply chain, increases diversity and inclusion, and assists its

suppliers in raising their compliance with labor standards (Senay et al., 2022). Coca-Cola

established a complete sustainability strategy by first recognizing these important sustainability

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concerns. This plan addresses the most pressing sustainability challenges confronting the

corporation and its stakeholders. With this strategy, Coca-Cola has been able to mitigate its

environmental impact and contribute to a greener future.

To assist in managing the sustainability plan Coca-Cola project manager should appoint

the following team members:

Environmental Health and Safety (EHS) Manager

The EHS manager will ensure that Coca-Cola's procedures adhere to environmental safety

regulations. This will involve the development and implementation of plans to reduce waste and

pollution, the management of environmental impact evaluation, and the oversight of health and

safety programs.

Sustainability Analyst

The sustainability analyst will be in charge of assessing Coca-Cola's sustainability development

and providing updates on it. This will involve monitoring key sustainability metrics, identifying

areas for development, and developing reports to inform stakeholders of progress.

The Supply Chain Manager

The supply chain manager is accountable for integrating Coca-Cola's ecological projects into the

company's logistics. This will involve working with vendors to enhance their sustainability

methods.

The Communications Manager

The communications manager is going to create and execute a communications strategy that will

highlight Coca-Cola's sustainability plans. This includes crafting messages for external

stakeholders and administering

Research and Development (R&D) Manager

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The R&D manager will be responsible for developing new products and packaging solutions that

are more sustainable.

Potential Risks

Limited Resources

Lack of enough resources, such as money, people, and technology, to back the execution

of the sustainability plan is one potential reason for delay. Coca-Cola can avoid this by doing a

comprehensive review of its assets and creating a plan, including a budget and timetable, that is

in accordance with its sustainability objectives (Maani et al., 2019). For this reason, the company

may have to reallocate funds from other departments or seek outside investment and

collaborations.

Resistance on Change

Internal and external stakeholders' reluctance to change is another factor that might

lengthen the process. Certain staff members, vendors, and consumers may be reluctant to fully

embrace the sustainability measures, which might slow uptake and postpone rollout. To combat

this, Coca-Cola may educate and inform its stakeholders about the sustainability strategy's

advantages and include them in its execution (Mühlbacher & Böbel, 2019). Training sessions,

rewards for involvement, and promoting a sustainable culture inside the company may all be part

of the plan.

Laws and Regulation

Sustainability-related legislation and regulations, such as pollution limits and waste

disposal laws, may potentially increase the possibility of setbacks. If the corporation doesn't

follow the rules, it might face penalties, lawsuits, and a hit to its image. Coca-Cola may avoid

setbacks if it stays abreast of regulatory needs and works closely with authorities to guarantee it
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complies with all applicable rules. Some examples of what this may look like include frequent

audits of operations, investments in new technology and infrastructure to fulfill regulatory

requirements, and partnerships with other businesses in the sector to promote more

environmentally friendly legislation.

SWOT Analysis

A SWOT analysis of Coca-Cola's sustainability Cola's strategy revealed a number of

possibilities and strengths. The company's great brand recognition and extensive worldwide

reach may aid in implementing sustainability efforts and impact customer behavior. Coca-Cola

has shown its commitment to sustainability by setting aggressive objectives and targets for

decreasing its environmental impact. The business has also made investments in eco-friendly

energy sources and novel packaging ideas.

Strengths

 Coca-Cola is a market leader in the beverage sector and significantly improves society and the

environment.

 The business has a thorough sustainability strategy that emphasizes mitigating its effects and

building a more sustainable future.

 Coca-Cola has a solid image as a brand and a devoted consumer base, which may aid in its

efforts to support sustainability programmers and spread awareness of environmental problems.

Weaknesses

 Coca-Cola is still mostly dependent on single-use plastic bottles, which have an adverse effect on

the environment and exacerbate the problem of plastic waste.

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 The company's supply chain is complicated and includes a variety of partners, which might make

it challenging to put sustainability efforts into practice and guarantee environmental criteria are

being met.

 With the company's history of environmental difficulties and charges of "greenwashing," some

stakeholders may not see Coca-Cola's sustainability initiatives as sincere.

Opportunities

 Coca-Cola has a chance to stand out from rivals and woo customers who care about the

environment thanks to the rising demand for sustainable goods and packaging.

 Cooperation with stakeholders, such as vendors, clients, and NGOs, may help Coca-Cola

pinpoint areas for development and put into action successful sustainability projects.

 The business may use its widespread popularity and brand identification to push for

environmental regulations and fund sustainability programs on a larger scale.

Threats

 The operations of Coca-Cola may be impacted by rising regulatory demands and environmental

rules, necessitating increased expenditures in sustainability programs.

 Coca-Cola's supply chain and manufacturing procedures may be negatively affected by climate

change and environmental degradation, which might result in supply chain interruptions and

higher costs.

 Consumer tastes and attitudes may change, and Coca-Cola may lose market share to rivals with

more impressive environmental records.

Sustainability Goals

Coca-Cola's comprehensive sustainability evaluation has led to the establishment of lofty

sustainability targets. These objectives are meant to assist Coca-Cola in reducing its negative
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effects on the environment and society (Montiel et al., 2021). To mitigate the effects of water

shortages, Coca-Cola plans to reuse all the water it consumes in its products and operations by

2030. By achieving this objective, Coca-Cola can keep its business strong for the long haul.

Through developing energy conservation and renewable energy efforts, Coca-Cola hopes

to reduce greenhouse gas emissions by 25% from its production operations and supply chain by

2030 (Maani et al., 2019). Coca-Cola works with its suppliers to enhance its sustainability

performance and encourages sustainable agriculture practices. For example, the organization

includes water conservation, soil health, and biodiversity protection in its operations to obtain

100% of its core agricultural components sustainably by 2030 (Maani et al., 2019). Coca-Cola's

supply chain is free from human rights violations, and the company actively promotes diversity

and inclusion and works with its suppliers to improve its labor standards.

Sustainability Plan

The goal of Coca-sustainability Cola's strategy is to make a positive difference in the

world by providing solutions to our day's most pressing sustainability issues. People, earth, and

investments are the plan's three cornerstones. Coca-Cola's commitment to diversity and

inclusion, the empowerment of women, and the promotion of sustainable communities all fall

under the people pillar (Sulistiani et al., 2019). The corporation is committed to helping women

become business owners by 2020 via programs including education, funding, and connections.

Implementation

For sustainability plans to have the desired effect, they must be effectively implemented.

Sustainable development objectives will remain aspirations rather than results once effectively

implemented. Implementing ideas, keeping tabs on developments, assessing outcomes, and

adjusting as needed are all part of the implementation process. To implement its sustainability
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strategy, Coca-Cola has employed a top-down, bottom-up approach, including everyone from the

CEO on down (Johnson, 2019). To guarantee responsibility and proper execution of the

sustainability strategy, the organization has established a governance structure. This includes a

sustainability steering committee tasked with advancing sustainability-related objectives and

programs.

To aid in the execution of its sustainability strategy, Coca-Cola has also launched

dedicated initiatives and programs. For instance, by 2025, the corporation plans to have obtained

all of its energy from renewable resources, for which it plans to spend $2 billion (Chmielarska,

2019). Twenty-five percent of the company's energy in 2019 will come from renewable sources,

marking considerable progress toward the objective (Chmielarska, 2019). Coca-Cola has also

taken steps to improve its water efficiency and reduce the amount of water using water-saving

technology like waterless bottling and water recycling systems.

Monitoring and Reporting

Measurable indications of an activity or process's success and efficiency are key

performance indicators (KPIs). Key performance indicators (KPIs) are used to evaluate the

success of a company's sustainability strategies, plans, and objectives (Ngwakwe, 2022). They

are useful for keeping tabs on the status of sustainability initiatives and deciding where to put

money based on hard numbers. Key performance indicators (KPIs) may be used to assess many

different aspects of environmental and social responsibility.

Common Sustainability Key Performance Indicators

Tracking water use per unit of output is the focus of this key performance indicator. It is a

key performance indicator for businesses that use water in their production operations, such as

those that make food and drink (Lockrey et al., 2020). Companies may lessen their negative
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effects on the environment by monitoring their water use per unit of output over time. Further,

monitoring carbon emissions per unit of production is vital. Greenhouse gas emissions per

product unit are quantified using this key performance indicator.

Additionally, the firm monitors the level of waste diverted from landfills. This key

performance indicator tracks how much of an organization's trash is reused, recycled, or

composted and how much gets turned into energy (Bista, 2019). It is a crucial key performance

indicator for businesses like factories and stores that produce a lot of trash. Monitoring the

amount of trash saved from landfills is one way for businesses to reduce their environmental

impact.

Furthermore, Coca-Cola monitors the level of product packaging made from recycled

materials, which takes track of the amount of product packaging manufactured from post-

consumer recycled materials (Kumar, 2019). It is a key performance indicator for businesses that

uses a lot of packaging, such as food and beverage producers. Essentially, the key performance

indicator tracks the proportion of staff that consists of traditionally underrepresented

demographics, including women, persons of color, and those with disabilities. This is a crucial

key performance indicator for businesses that value diversity, equality, and inclusion (Angira,

2021). Monitoring the presence of members of underrepresented groups in the workforce may

help businesses learn where they stand in terms of diversity and inclusion efforts.

Conclusion

Coca-Cola's dedication and commitment to sustainability are reflected in the company's

business plan, which puts a significant focus on reducing the amount of harm the corporation

does to the environment. In order to accomplish this goal, Coca-Cola has developed a

comprehensive sustainability plan that addresses all aspects of the company's operations, such as
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the company's packaging, its use of water, and its waste management practices. The Coca-Cola

Corporation publishes an annual report titled "The Coca-Cola Company Sustainability Report,

which details the company's efforts towards achieving these goals. Its publication is required by

corporate policy. The implementation of Coca-sustainability Cola's plan will be accomplished

using various methods and be important for the firm's feasibility.

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