Coca-Cola Europacific Partners (CCEP), the world’s largest bottler of Coca-Cola and one of the world’s leading consumer goods companies, has embarked on two potentially game-changing collaborative initiatives to accelerate innovation in sustainability throughout its supply chain.
Coca-Cola Europacific Partners and UC Berkeley to Develop Air-to-Sugar Technology
The first standing CPEC — through its innovation investment platform, CCEP Ventures — joined the
University of California, Berkeley develop scalable methods for converting captured CO2 into sugar.
The success of this project would add sugar to the growing cache of value-added products that innovators are creating from captured carbon – from vodka and ethanol to PET plastic and polyester textiles. CCEP Ventures’ initial investment with UC Berkeley will support the Peidong Yang Research Group on basic research that will focus on producing sugar from CO₂ on-site and at industrial level, with expectations of future investments to drive scale. In 2021, the Peidong Yang Group received an award from
for a viable prototype for converting CO₂ into sugar for potential use on long-haul space missions.
“Converting air to sugar could have a significant impact on our ability to preserve the natural world,” says Professor Peidong Yang. “This is a bold scientific vision that would bring immediate environmental benefits, fundamentally transforming the production and distribution of goods across the world. We are excited to work with CCEP Ventures on research that could have a significant impact on our ability to create a more sustainable future.
Agricultural ingredients, including sugar, make up around a quarter of CCEP’s overall carbon footprint; this technology could not only reduce emissions associated with sugar manufacturing processes, but positively contribute to the optimization of land use, as less arable land becomes available due to global population growth.
Such investments could play a crucial role in CCEP’s journey to achieve net zero emissions by 2040. Developing lab-scale prototypes could make the generation of critical raw materials and packaging more long term sustainable. This could reduce some of the biggest contributors of CO₂ in supply chains, while reducing material, transport and logistics costs.
In the longer term, this technology can also make the conversion of CO₂ into PET plastic more efficient by reducing the need for crude oil in the manufacturing process and significantly reducing costs.
CCEP and Rabobank set up a sustainability-linked supply chain finance program
The program will incentivize and reward suppliers for improving their ESG performance and support CCEP’s ambition to reach net zero by 2040 and reduce greenhouse gas (GHG) emissions across its supply chain. 30% value by 2030 (compared to 2019).
Also this week, CCEP introduced a new sustainability-related supply chain finance program, structured and managed by a company specializing in food and agribusiness financial services.
Rabobank. Rabobank will provide funding to the program with other banks expected to participate and expand the facility over time.
The program, one of the first of its kind in the beverage industry, incentivizes and rewards suppliers for making sustainability improvements in their businesses. It will provide competitive funding linked to a number of sustainability-focused KPIs for suppliers which, when achieved, unlock additional discounts from the initial funding rate and align with own action of CCEP to reduce emissions across its entire value chain and reach net zero by 2040.
“We know how crucial it is that we work with our suppliers to decarbonize our businesses, and we are committed to providing the support and solutions they need to help them reduce emissions, in line with our own sustainability goals. », declares ralph peters, Vice President of Purchasing at CCEP. “Our new supply chain finance program is another important step that will help us take collective action – implementing positive and impactful change and driving continuous sustainability improvements.”
More than 90% of CCEP’s emissions are attributed to its supply chain; and it has already asked its suppliers to take three steps to effectively reduce carbon emissions in their operations:
set and validate reduction targets with the Science Based Targets Initiative
committing to using 100% renewable electricity in its operations by 2023; and
share their carbon footprint data.
The program will build on this and define KPIs for suppliers to improve their overall ESG scores, through the assessment of EcoVadis.
Originally launched in Germanythe program will be extended to CCEP providers in the rest of Europe, Australia and New Zealand in future phases.
More and more companies are encouraging their suppliers to improve their social and environmental performance with the aim of making their value chains sustainable and tackling the challenges Litter 3
emissions. CCEP will also partner with Rabo FoundationRabobank’s social impact fund, to support one of its agricultural programs in Indonesia
that promotes the adoption of sustainable agricultural practices and inputs to increase yields and achieve better long-term economic strength. In 2021, McCormick & Co. in partnership with the International Finance Corporation and Town on a similar program, starting with its herbs and spices suppliers in Indonesia and Vietnam.
 The facility is operated by Rabobank and is subject to a separate agreement between Rabobank and CCEP’s suppliers.
 Rabobank is the lead financing bank and as the program progresses towards the planned funding level of €600 million, it has agreed additional syndicated financing with other banks such as Santander.