COMPANY SCORECARD GLOBAL INDEX 2016

RANK

12
SCORE

The Coca-Cola Company 2.4

9 (2013)
NUTRITION GENERAL 12 2.4 UNDERNUTRITION 8 1.8

A Governance (12.5%) 4.5 Headquarters Reported product categories

U.S. Dairy; Carbonates; Concentrates; Juice; RTD
B Products (25%) 1.1
Coffee; RTD Tea; Sports and Energy Drinks
Market capitalization
C Accessibility (20%) 1.2
$187,292 m Reported revenue by geography**
D Marketing (20%) 3.3 North America 46%, Asia Pacific 12%,
# of employees
E Lifestyles (2.5%) 1.6 Corporate 12%, Europe 12%, Latin America
129,200
10%, Eurasia & Africa 6%
F Labeling (15%) 3.6 Total revenues*
G Engagement (5%) 1.8 $45,998 m
0 2 4 6 8 10

Highest score among rated companies * Source: Capital IQ, USD exchange rate as of 31 Dec 2014 ** Source: Capital IQ

A Governance B Products C Accessibility D Marketing E Lifestyles F Labeling G Engagement

8 4.5 15 1.1 8 1.2 11 3.3 13 1.6 6 3.6 16 1.8

A1 Strategy B1 Formulation C1 Pricing D1 Policy (all) E1 Employees F1 Facts G1 Lobbying

A2 Management B2 Profiling C2 Distribution D2 Compliance (all) E2 Breastfeeding F2 Claims G2 Stakeholder

A3 Reporting D3 Policy (children) E3 Consumers

D4 Compliance (children)

Areas of strength Areas for improvement

- Some of the areas where The Coca-Cola Company (TCCC) performs notably
well include nutrition governance and strategy. It demonstrates awareness of
the key risks and opportunities presented by rising consumer demand for
healthier products. Compared to 2013, the company has evolved the way it
articulates its commitment to nutrition within its core business, for example by
including a focus on well-being in its strategic set of commitments stating an,
"End goal to inspire happier, healthier lives"
- The company recognizes that it has a role to play in addressing obesity and
through its membership of the International Food and Beverage Alliance (IFBA)
is committed to addressing the priorities set out in the World Health
Organization (WHO) Global Action Plan. Senior executives on the company’s
Board oversee the nutrition strategy. The strategy contains four strategic
commitments to address obesity on a global scale, these are: Offering more
low- or no-calories beverages, providing nutrition-related information on
packaging, supporting physical activity programs, and marketing products
responsibly. The strategy is reviewed annually by management.
- TCCC has focused on developing low or no-calorie beverages. As of
September 2014, these constitute 25% of its global product portfolio, or 800
out of 3,500 beverage options worldwide. It is one of the few companies to
track and report such figures.
- TCCC addresses undernutrition among low-income groups in India by setting
affordable prices for a micronutrient fortified powder beverage and also invests
to expand its offering to low-income populations. It also funds projects to make
fortified products available to underprivileged school children in India and the
Philippines.
- TCCC is one of only two companies that commits to not advertise any
products to children under-12 where they make up more than 35% of the
audience. This commitment extends across a wide range of media.
- Despite some positive measures, TCCC’s Global Index ranking dropped from
ninth on the 2013 Global Index to twelfth on the 2016 edition. This is because
some companies have improved their performance since the 2013 Index and
also because in some areas TCCC is yet to adopt leading practices.
- TCCC’s strategy to address undernutrition is delivered primarily through
philanthropic initiatives. The company could improve its positioning if it outlined
a set of commitments aimed at addressing undernutrition in developing
countries.
- The company has introduced a number of low and zero calorie soft drinks and
fruit based beverages, however it has not adopted a Nutrient Profiling System
(NPS). TCCC does not believe that products should be defined as ‘healthy’ or
otherwise. Overall, TCCC has made slight progress since the 2013 Global Index
regarding product reformulation.
- TCCC has established targets to reduce calories in some of its products. It is
encouraged to extend the commitment to all relevant products globally.
- TCCC provides few details regarding strategies, targets or timelines to
increase the affordability and accessibility of its zero and low-calorie products.
- While a responsible marketing to children policy outlines details of its
approach, a responsible marketing policy for all consumers was not evident
during this research round. Of note, in the 2013 Global Index TCCC stated that
it was in compliance with the International Chamber of Commerce (ICC) Code
to guide its marketing to all consumers, but no such commitment was evident in
the second Index.
- TCCC’s performance with regards to healthy lifestyles has declined
significantly. This is due to reduced disclosure (e.g. this year the company does
not articulate the business and health outcomes expected from its staff
oriented programs) and poor performance against the new criterion to support
breastfeeding mothers at work.

©Copyright Access To Nutrition Foundation.

COMPANY SCORECARD GLOBAL INDEX 2016
The Coca-Cola Company
Category analysis
A Governance
Nutrition general
- TCCC recognizes that it has a role to play in addressing obesity and through
membership of the IFBA it is committed to addressing the priorities set out in
the WHO Global Action Plan.
- TCCC’s four global strategic commitments to address obesity are to offer
more healthy products, to provide nutrition-related information on packaging, to
support physical activity programs and to market products responsibly.
- TCCC outlines a wide range of risks associated with obesity and the evolving
preferences of consumers in its annual report, pointing to the potential of those
issues to negatively impact its revenues.
- TCCC entered new beverage segments through a partnership with Select Milk
Producers, Inc. in 2012, and since 2015 the company has offered a premium
milk product, Fairlife. Fairlife is reported to contain, “50% more natural protein,
30% more natural calcium and half the sugar of ordinary milk.” Fairlife is
currently only available in the U.S.
- TCCC does not believe that products should be defined as ‘healthy’ or
otherwise and argues that its beverages can be part of, “a sensible, balanced
diet combined with regular physical activity.”
- Senior executives on the Board oversee the nutrition strategy, which contains
a comprehensive set of objectives and is subject to annual management review.
- There is no evidence to indicate that TCCC takes advice from external experts
on its nutrition strategy in a systematic manner, although some input is solicited.
- TCCC’s global reporting on nutrition covers a broad range of issues and a
clear sense of the company's nutrition strategy and how it relates to overall
business strategy. The company reports against all objectives and targets and
provides an outlook on plans and targets. This is updated at least annually.
Reporting could be strengthened through external verification.
Undernutrition
- There is little evidence that TCCC formally committed to combatting
undernutrition in developing countries either through its own products or via
philanthropic activities. Nevertheless the company conducts some commercial
and non-commercial undernutrition activities aimed at general populations in
developing countries.
- TCCC has undertaken a strategic review of the commercial opportunities
available through developing products for the undernourished. The approach
could be strengthened by extending it across all developing markets, and
specifically by focusing on high priority countries.
- TCCC participates in several multi-stakeholder initiatives run by international
organizations working towards undernutrition relief in low-income countries,
including the World Food Program, UNICEF, Save the Children and through its
foundation.
- To improve its performance in tackling undernutrition, the company could
assign responsibility for oversight of this challenge to a senior executive and
undertake regular stakeholder consultation.
B Products
Nutrition general
- Although zero and low-calorie beverages now make up 25% of its product
portfolio, TCCC does not articulate any commitments and targets to increase
spending on R&D to develop healthier products.
- There is no evidence to indicate that product development is aligned with
internationally recognized dietary guidelines.
- The company has set targets to reduce calories in some of its products in
some markets. This falls short of best practice to set such targets for all
products globally. TCCC does not publicly report on progress towards meeting
these targets.
- TCCC reports clearly on progress related to its offering of low or no-calorie
beverages. As of September 2014, such products constitute 25% of the
©Copyright Access To Nutrition Foundation.
company’s global product portfolio, representing 800 out of 3,500 beverage
options worldwide. This level of disclosure is in line with best practice standards.
- Unlike many peer companies, TCCC has not yet adopted a NPS to guide
product reformulation and innovation and determine how many products meet
an overall healthy standard taking into account all key nutrients both positive
and negative, not just calories. No healthy multiplier has therefore been applied,
as was the case in the 2013 Global Index - this undermines the company’s
ability to achieve a higher score.
Undernutrition
- TCCC does not have any established R&D targets for the development of
fortified products, and it does not appear to have business strategies for
fortified products in developing markets.
- There is no evidence to indicate that offering fortified products is part of the
company’s overall operational strategy.
- TCCC recognizes the need to join forces with other organizations to address
undernutrition. Its efforts are focused on philanthropic initiatives offering
fortified products to children and women in developing countries that are not
identified as priority countries, as identified by the Access to Nutrition Index.
The company is encouraged to extend its outreach to priority countries, such as
Ecuador and Zimbabwe.
- TCCC provided an example of a philanthropic program aimed at expanding
the offering of an affordable fortified powder across India to reach the low-
income populations. This was done in partnership with both public and private
organizations.
- TCCC’s scale of activity, funding levels and disclosure of initiatives related to
undernutrition could all be substantially improved. Currently, the company
reports on its efforts sporadically, which makes it difficult to review and assess
performance.
C Accessibility
Nutrition general
- Like most of the companies assessed for the 2016 Global Index, TCCC
provides few details about strategies, targets and timelines to increase the
affordability and accessibility of its zero and low-calorie products. This is the
case for both developed and developing markets. The lack of progress within
the company and among its peers warrants an average ranking, similar to that
in the 2013 Global Index.
Undernutrition
- There is no evidence of any commercial undernutrition strategy to improve
pricing for fortified products described in related and consistent policies, targets
and programs.
- Vitingo, for example, is a micronutrient-fortified beverage, that is offered at low
cost to make it more affordable for low-income and underserved populations
(women and children) in India, a high priority developing country. However
disclosure regarding funding of programs to improve the affordability of
products specifically formulated or appropriate for specific undernourished
groups is lacking.
- To expand offering of its low-cost fortified products TCCC has set broad
objectives however these are limited in reach, as they only refer to one product
to be distributed in one territory.
- TCCC provides evidence of improving accessibility of products specifically
formulated to address nutritional challenges among children and women who
belong to the poorest socio-economic groups in India. To do this TCCC adopts
an unconventional approach of distributing fortified products to remote
communities by hiring underemployed rural people, mostly subsistence farmers
and women to distribute products (this is done through a partnership with
Dharma Life, a social enterprise that provides access to products that have
impact).
- TCCC has provided philanthropic funding to improve the accessibility of
products specifically formulated or appropriate for undernourished groups. In
COMPANY SCORECARD GLOBAL INDEX 2016
The Coca-Cola Company
Category analysis
the Philippines and India, the company funds projects delivering fortified juices
to underprivileged school children.
D Marketing
Nutrition general
- TCCC does not disclose a responsible marketing policy for all populations. It is
a notable gap compared to its peers and its 2013 Global Index performance. In
2013, it stated it adhered to the International Chamber of Commerce (ICC)
Code.
- In contrast, TCCC’s approach to responsible marketing to children is relatively
strong. The company’s 2014 global Responsible Marketing Policy states that no
marketing activities targeted to children will be conducted through television,
radio, print, websites, social media, movies, SMS, email, in-store marketing or
point of sales marketing.
- TCCC is notably one of only two companies to commit not to advertise
products to children under-12 where they represent more than 35% of the
audience.
- TCCC’s policy could be enhanced by extending commitments to digital media
and using tools such as assessment of traffic data to ensure that online
marketing deters certain age groups.
- The company could also improve its approach through a commitment to
restrict or limit advertising around secondary schools and other places where
children gather, as recommended by the WHO.
- As a signatory to IFBA and the EU Pledge, TCCC’s marketing to children
activities is audited by an independent third party. The company’s compliance
levels are disclosed by IFBA as an aggregated average for all members. TCCC
does not disclose its individual compliance level, though this information was
provided during the research to the research company on request.
E Lifestyles
Nutrition general
- TCCC has committed to promoting healthy lifestyles across the globe,
including among its own employees and consumers. However, it provides little
information regarding any concrete programs. There is no disclosure on the
health or business outcomes from initiatives aimed at increasing the well-being
of the company’s employees (nearly 130,000) nor is there any assessment of
these initiatives.
- TCCC scores relatively poorly with regards to its activities to provide support
for breastfeeding mothers at work. The company does not disclose relevant
company-wide policies and programs. However, it does provide suitable rooms
and standard equipment at its headquarters allowing breastfeeding employees
to express milk during working hours. This practice should be extended across
all facilities globally.
- One of TCCC’s four strategic commitments includes supporting physical
activity. This commitment is delivered principally through the company’s
foundation and partnerships with external organizations such as EPODE
International Network (EPODE), Exercise is Medicine® (EIM) or the
International Sports and Culture Association (ISCA). The company’s ranking
could be further improved if it would institutionalize a policy that would describe
the company’s standards for supporting consumer programs to promote a
healthy diet and active lifestyle.
- Some of TCCC’s initiatives are subject to external evaluation. However, the
company neither describes its role in the design of such programs nor does it
provide details regarding the scope of their application.
Undernutrition
- There is no evidence to suggest that TCCC has adopted a policy or guidelines
regarding the type of undernutrition programs it will sponsor through its
philanthropic efforts. The company does provide evidence of supporting
projects that aim to deliver fortified juices into school lunch programs, together
©Copyright Access To Nutrition Foundation.
with nutrition and physical activity education through collaboration with
organizations such as the WFP and the Global Alliance for Improved Nutrition
(GAIN).
- There is no evidence to indicate any company-driven programs related to
undernutrition which aims to educate consumers about the benefits of healthy
diets and fortified foods or maternal micronutrient supplements.
F Labeling
Nutrition general
- As a member of IFBA, TCCC commits to disclose back-of-pack (BOP) and
front-of-pack (FOP) nutritional information.
- In the absence of local regulations for labeling requirements, TCCC also
commits to follow the Codex guidelines.
- TCCC has committed to provide information regarding energy, protein,
carbohydrate, fat, total sugars, and sodium, as well as, “any nutrient for which a
nutrition or health claim is made" in its BOP labeling globally.
- TCCC has committed to provide information as a percentage of the reference
intake of national guidelines in its FOP labeling.
- TCCC policies state the company will not promote specific daily calorie intake,
as it considers that calorie intake is a subjective matter. There is no evidence to
suggest that TCCC commits to implement interpretative format labeling to help
attract consumers to healthier options.
- An independent auditor, Ernest & Young, reviewed and confirmed that "nearly
all" markets provided its FOP energy (calorie) information as outlined in its
global policy on Nutrition Labeling and Nutrition Information. This is considered
good practice.
- TCCC has not committed to follow Codex guidance for health and nutrition
claims where no or weak regulation is in place.
- TCCC also does not appear to track or publish data on the number of
products carrying health and nutrition claims.
Undernutrition
- TCCC does not make commitments with regards to labeling or the use of
health and nutrition claims specific to fortified products.
G Engagement
Nutrition general
- TCCC publicly discloses its Political Engagement Policy, which describes the
company’s overarching principles for public advocacy. This is applicable only in
the U.S. market and not across the other 199 markets which it operates.
- TCCC publishes regular reports detailing its lobbying activities in the U.S. but
does not provide information on its position used in engagement on topics such
as fiscal instruments related to nutrition.
- TCCC discloses limited information regarding stakeholder engagement. The
company engages with a wide range of stakeholders and claims to solicit
feedback from experts on its nutrition strategy. Disclosure regarding this
process could be improved by explaining what kind of feedback was received
and how it was used to improve and inform the company’s policies, overall
business strategy and practices. Best practice would be to organize this
process according to the AA1000 Standard.
Undernutrition
- There is no evidence to suggest that TCCC engages in advocacy regarding
undernutrition in developing countries. Nor is there evidence to indicate
engagement with stakeholders on issues of undernutrition.
COMPANY SCORECARD GLOBAL INDEX 2016

The Coca-Cola Company

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