2019 Annual Report
Download the Coca-Cola Amatil Limited Annual Report for 2019.
We have valued partnerships throughout our value chain, including with suppliers, and have a public commitment to ensure 80 per cent of spend with suppliers is covered by responsible sourcing assessments.
We request our supplier partners to follow Coca-Cola Amatil’s Responsible Sourcing Guidelines as well as The Coca-Cola Company’s Supplier Guiding Principles. Environmental and social sustainability criteria is an important part of the supplier sustainability assessments that cover most of Coca-Cola Amatil’s key suppliers.
We are able to leverage our significant procurement expenditure to drive improved outcomes in human rights, environment, social inclusion and sustainable development.
In 2019, over 80 per cent of suppliers, by share of spend1, were assessed through responsible sourcing assessments that measure performance against the Coca-Cola Company’s Supplier Guiding Principles or Amatil’s Responsible Sourcing Guidelines. We apply a tiered approach, which includes partnering with independent third parties to assess suppliers in different risk procurement categories.
The Amatil Responsible Sourcing Guidelines cover four key areas of supplier performance – business ethics, human and workplace rights, the environment, and providing benefits to communities. Amatil is committed to fully enforcing these principles and expects our suppliers to develop and implement appropriate internal business processes to ensure compliance.
Amatil is proud that in 2019 we were able to spend over $1 million with social enterprises that support employment opportunities for disadvantaged groups in Australia. We are also a member of Supply Nation, the largest national directory of verified Aboriginal and Torres Strait Islander businesses, and in 2019 we procured goods and services worth over $260,000 from Indigenous suppliers.
Over the last decade, we have also invested over $1.95 million in Fairtrade community co-operatives through the purchase of Fairtrade coffee for our Grinders Coffee brand.
We actively work with suppliers to minimise their environmental footprint. In Australia, at the end of 2019, 100 per cent of the sugar we use was certified under either Bonsucro or Smartcane Best Management Practice, while in Indonesia, 90 per cent of the sugar we use was Bonsucro certified. We have moved 100 per cent of our paper and board to Forestry Stewardship Certified sources in Australia and New Zealand. Another priority has been to increase the use of recycled materials in our packaging, and we are working with suppliers to secure a continuing supply that meets our quality standards.
Palm oil is not added directly to any of our beverages and Amatil does not directly buy the commodity. We require any supplier which provides ingredients that use palm oil derivatives to be members of the Roundtable on Sustainable Palm Oil, to support its vision, and to ensure by 2020 the raw materials they use do not contribute to deforestation.
1 Supplier spend data is for Australia, New Zealand and Indonesia only. The proportion of supplier screening is measured based on the value of spend with suppliers who have been subject to one of Amatil’s screening tools, compared to total supplier spend for the calendar year. Amatil applies different screening tools according to the level of spend, sector, and location of each supplier.
Responsible sugar supply is a priority across our operations in Australia, New Zealand and Indonesia. We are proud to support the accreditation frameworks provided globally by Bonsucro, and in Australia by Smartcane BMP (Best Management Practice). As at the end of 2019, we were pleased to have achieved 100 per cent accredited sugar supply for our non-alcoholic drinks in Australia and New Zealand, and 90 per cent in Indonesia.
At Grinders Coffee, we’re committed to playing a role in creating a sustainable future for the coffee industry. Strengthening our relationship with Fairtrade is a key part of this commitment. Grinders is the largest branded roaster of Fairtrade green beans in Australia. Since 2010, we’ve generated A$1.9 million to support over 800,000 Fairtrade farmers and their communities in 537 cooperatives from 30 countries across the world.
Fairtrade is an independent certification system that provides farmers and workers in developing countries with practical and technical support they need to grow their businesses. Importantly, the organisation pays a fair price – the Fairtrade Price – for their produce, helping protect them from fluctuations in the global coffee market. Participants also receive an additional sum of money – the Fairtrade Premium – to invest in social, economic, and environmental development in their community, such as educational and medical facilities.
While the specific challenges facing each coffee growing community are unique, many of the common challenges faced by farmers relate to a holistic approach to sustainability in their community.
Established in 2005, Highlands Organic Agriculture Cooperative (HOAC) is the oldest Fairtrade certified organisation in the Pacific. With the support of partners such as Grinders Coffee, HOAC has reinvested in growing its business, and in supporting community development projects that have benefitted over 15,100 people in the region.
For instance, HOAC has helped restore 35 kilometres of roads which, if not fixed, would have impeded the transport and quality of coffee in Papua New Guinea. Prior to the restoration, HOAC members had to travel long distances to transport their coffee. Transport costs have now been reduced by up to 50 per cent, enabling members to invest more income in their families and communities.