CCE

CRS Governance

Good governance and ethical business practices are more important now than ever. We are continuing to embed CRS into our everyday decision-making processes. From Board discussions to leadership decisions, CRS is becoming an integral part of how we operate.

The CRS Board of Directors Committee reviews the CRS performance of our company and guides future direction. They take an active engagement role, including reviewing our first emission reduction goals in 2008 and challenging us to be more ambitious. They also instituted a process of rigorously reviewing the business case for CRS capital investment programs. The Committee is chaired by Board member Cal Darden, who also hosted our CRS Roundtable stakeholder engagement session during the 2008 U.S. Democratic National Convention.

John Downs, Senior Vice President of Public Affairs and Communications, is the chairman of our Global CRS Advisory Council, and the member of the Executive Leadership Team (ELT) ultimately accountable for the integration of CRS throughout our company. Our Global CRS Advisory Council reviews our progress and sets priorities and policies. It is composed of senior managers from key functions across our business. Similar councils or networks are in place for our business units in Europe and North America. In each of our 431 facilities, we have designated CRS Champions, who are helping to execute CRS initiatives at the local level.

To drive progress in each of our five strategic CRS focus areas, we have workstream groups and Steering Committees in North America and Europe. These cross-functional teams of experts provide leadership and direction and also share learnings and best practices. They report to the Global CRS Advisory Council each quarter. We work closely with The Coca-Cola Company on a variety of CRS issues and projects to ensure system alignment and collaboration on CRS initiatives.

CCE

Integrating Sustainability

We are including sustainability considerations at the heart of our most important business and financial processes. Social and environmental risks are now one of our seven business risk categories and are formally embedded in our enterprise risk management process. This in turn guides our business processes, including annual planning, three-year business planning, and internal audit planning. As a result, CRS decisions are becoming an integral part of our business decision making, our commercialization and capital management processes, our three-year business planning process, and our customer and supplier relationships. Each member of the ELT owns the appropriate risk category for their function and provides regular risk reports to the relevant Board committees.

Further information on our material CRS risks related to water, energy, and perceptions of our portfolio is included in our risk statement in the form 10-K, found in our company’s Annual Report.

Integrating CRS into our planning and decision-making processes also helps us to build accountability. We have begun to include CRS in performance objectives and variable compensation for our ELT.

For CRS to be part of everything we do, we must build understanding and technical capabilities across our business. Independent experts are retained to advise our CRS Board of Directors Committee and Global CRS Advisory Council. We are developing initiatives that build broader understanding of the issues and our approach among our employees, giving them opportunities to become actively involved. We also have regular dialogue with non-governmental organizations (NGOs) such as the World Resources Institute and the World Wildlife Fund.

Code of Business Conduct and Workplace Rights

As a signatory to the United Nations Global Compact, we commit to uphold internationally recognized labor and human rights standards and expressly prohibit child labor and forced or compulsory labor in our operations and those of our suppliers. In addition, our employees and directors are expected to adhere to our Code of Business Conduct. This Code explicitly prohibits bribery and corruption of any kind and outlines our expectations with regard to:

Employees undergo training on our Code when they join our company and in periodic refresher courses. Any concerns or questions can be reported anonymously either to our management or through our Ethics and Compliance Hotline, a toll-free service run by an independent third party. We investigate all reported incidents and ensure resolution by an appropriate level of management.

We strive to meet our standards and policies and comply with applicable laws and regulations. We have developed a global compliance strategy and appointed our first Chief Compliance Officer in early 2009. Additionally, we created a cross-functional Compliance Committee to review and enhance our global compliance policies and strategies, including our Code of Business Conduct. We have formalized our internal fraud task force, including leaders from audit, legal, and security, to assess fraud risk and implement mitigation plans.

Material ethics and compliance issues are reported to the Audit Board of Directors Committee. We hold annual compliance reviews in all production facilities as part of our efforts to comply with all applicable environmental laws and regulations.

Management Systems and Other Standards

Our operations follow the integrated management system of the Coca-Cola business — The Coca-Cola Management System (TCCMS). This system aligns with the internationally recognized requirements for quality (ISO 9001), environment (ISO 14001), health and safety (OHSAS 18001), and food safety (ISO 22000). In 2010, the Coca-Cola system will begin to transition to ISO standards for all Management System requirements previously covered by TCCMS.

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