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CCI REPORTING GUIDANCE

ANNEXES
CCI Reporting Guidance

Key Definitions

For the purpose of this report, the following definitions apply:
TCCC: The abbreviation TCCC refers to“The Coca-Cola Company”
TCCS: The abbreviation TCCS refers to“The Coca-Cola System”.
ESG: Environmental, Social and Governance
CSR:  Corporate Social Responsibility
Plant: All on-site facilities, including production buildings, water treatment units, wastewater treatment units,warehouses, laboratories, administration buildings and technical service operations
Energy Use Ratio (EUR, MJ):  MJ of energy consumed per liter of product produced, calculated as the sum of all individual energy sources from the filling (core) production processes (in MJ) divided by production volume (in liters). To allow comparability between different CCI plants:
• Energy consumption during preform injection, an energy-intensive process,is excluded from the core EUR. It is included in the total EUR calculations.
• Energy consumption for CO2 production processes is also excluded from the core EUR calculation. It is included in the total EUR calculations.
• Beginning in 2013, the electricity producing process, which is present in Kazakhstan, is included in EUR calculations..
Energy Consumption: The energy consumed during the reporting year(January 1 to December 31). Energy consumption data covers energy used in the operation of on-site industrial facilities and manufacturing processes, including electrical systems, heating,lighting, on-site transportation, air circulation and air conditioning (HVACsystem). Manufacturing processesrefer to the energy consumed in the core bottling (filling) operation. Total energy consumption also includes preform injection for those plants that use this energy-intensive process as well as energy used for CO2 production processes in our plants in Kazakhstan and Azerbaijan.
Energy: Electricity, natural gas, diesel, gasoline, fuel oil, liquefied petroleum gas (LPG) and steam.

For the purpose of this report, energy does not include alternative forms of fuel, such as biowaste, biomass, biodiesel, or renewable sources of energy such as wind or solar energy, which collectively representan insignificant share of total energy consumption and carbon emissions.
GHG Emissions (Ton): Emissions during the reporting year (January 1to December 31). The GHGs reportedare those currently required by the United Nations Framework Conventionon Climate Change and the KyotoProtocol. These GHGs are currently:carbon dioxide (CO2), methane (CH4),nitrous oxide (N2O), hydrofluorocarbons(HFCs), perfluorocarbons (PFCs),Sulphur hexafluoride (SF6) and nitrogentrifluoride (NF3). Other GHGs, includingthose regulated by the MontrealProtocol, are excluded from GHG emissions and analyzed separately. “GHG emissions” refers to emissions from all production processes, suchas bottling and preform injection,arising from The Company’s plants. In Turkey, CCI has been reporting its GHG emissions more extensively since 2012 in accordance with the ISO 14064-1Standard for quantifying and reporting GHG emissions at the organization level.Consequently, GHG emissions reported for Turkey also include CCI’s GHG emissions from its non-plant buildings,e.g. off ices, fleet transport and fugitive emissions. Where a plant generates energy on-site, the related energy consumption is defined as the energy of the fuel used for generation (e.g. for on-site, diesel-fired electricity generators, the energy consumption would be the diesel used rather than the electricity output of the generator).
Waste (Ton): Waste generated at a given site includes waste due to production, construction, food services or any other activity. Examples of the types of solid waste generated by The Company include paper, plastic,corrugated cardboard, metal, glass,sludge from water, waste oils, fleet waste (tires, batteries, coolants, oils,etc.) and damaged ingredients or products, plus all hazardous waste such as solvents, inks and lab waste.Liquid waste disposed of through the waste water system is not included in the calculations as such waste is accounted for in wastewater discharge volume and wastewater sludge
Total Waste Ratio (g/L): : Grams of total waste generated per liter of product produced.
Waste Disposal (Ton): Waste disposal has followed the GRI Standards 306-1 classification. To determine the method of disposal, CCI has used the legal categories laid out in the disposal documentation provided by its accredited waste contractors.Based on the disposal documentation,the categories of waste generated by CCI during the reporting period were recycling, re-use, recovery, incineration and landfill. Some hazardous waste is sold for use as fuel in processes such as cement manufacturing. In accordance with the legal categories of accredited waste documentation, this waste is classified as recovery rather than incineration.
Waste Recycling Rate (%): Tons of waste recovered, re-used or recycled divided by total waste generated (in tons), i.e. the Waste Recycling Rate represents the portion of waste that is not disposed to a landfill or incinerated. In the six countries covered by the 2018 CCI sustainability report, accredited waste contractors collected tons of waste for recycling and re-use.
Reused Waste(Ton): : Waste used again for the same or different purposes without re-processing, e.g., wood..
Recycled Waste (Ton): Waste that is broken down into raw materials, changed and reprocessed for use and used for new products.Recyclable materials include many kinds of glass, paper, metal, plastic, textiles,and electronics. The composting or other reuse of biodegradable waste– such as food or garden waste – is also considered recycling. Materials to be recycled are brought to a collection center, or picked up from the curbside, then sorted, cleaned and reprocessed into new materials bound for manufacturing
Recovered Waste (Ton): Non-recyclable waste materials and the extraction therefrom of heat, electricity or energy through a variety of processes,including combustion, gasification, pyrolysis and anaerobic digestion. For example, if waste is incinerated in an incineration plant to generate energy,then the waste is “recovered.” If the reis no use of energy during the process,then the waste is incinerated. There are several ways to recover energy from waste. Anaerobic digestion is a process of decomposition that occurs naturally whereby organic matter is reduced to a simpler chemical component in the absence of oxygen. “Recovery”also refers to incineration or directly controlled burning of municipal solid waste in order to reduce waste and create energy. Secondary recovered fuelis energy recovered from waste that cannot be reused or recycled through mechanical and biological treatment activities. Since most of the waste is recovered for energy in licensed facilities before storage, hazardous waste in Turkey is categorized as “recovery".
Landfilled Waste (Ton): Waste sent to landfills (of either a municipality or an accredited company) and disposed of by burial.
Waste Stored On Site (Ton): Waste stored initially before the final treatment. Wood waste is treated indiff erent ways, and the final treatmentmethod is confirmed with suppliers andcategorized by operations. Methods forreuse, recycle and recovery of hazardouswaste are confirmed with CCI’s serviceproviders for waste management.For our Turkey operations, disposaland treatment methods are decidedaccording to the waste disposal codesdefined in the Turkish Hazardous WasteControl Regulation. The amount of wastefrom cold drink equipment and twoway bottles generated by the market ismeasured either by weighing it directlyor by calculations using waste factorsrecorded after measuring the exactweight of each part of the equipment.
Water Consumption (Liter): Allwater used during the reporting year(January 1 to December 31). Waterconsumption data includes waterused for production, water treatment,boiler makeup, cooling (contact andnoncontact), cleaning and sanitation,backwashing filters, irrigation, washingtrucks and other vehicles, kitchen orcanteen, toilets and sinks, and fire control.
Water: Includes water from all sources, including wells, spring water, municipality and collected rainwater
Water Use Ratio (WUR) (L/L): Liters of water used per liter of product produced, calculated as total water use(in liters) divided by production volume(in liters).
Environmental Compliance: The monetary value of significant fines (over $200,000) and the total number of non- monetary sanctions for noncompliance with national Environmental Laws and Regulations.

This indicator is aligned with GRI Standards 307-1 disclosure.
Water Withdrawal (L): Total volume of water withdrawn from any source during the reporting year (January 1 to December 31), including ground water, municipality water and collected rainwater.
Waste Effluent (L): The total volume of water discharges during the reporting period by discharge and quality, including treatment method. This indicator is aligned with GRI Standards 306-1 disclosure.
Employee Numbers: CCI employees working in The Company’s headquarters, plants and sales off ices. Employee figures are categorized as permanent, temporary and contractor workers, and these data are recorded as year-end figures. Turkey operations include Turkey factories and Turkey sales off ices.

This indicator is aligned with GRI Standards 108-2 disclosure.
Injuries And Lost Days: Type ofinjury, rates of injury, lost days and total number of work-related fatalities, by region. This indicator is aligned with GRI Standards disclosure number 403-2. CCI’s main injury metric is the Lost Time Incident Rate (LTIR), which is number of lost time incidents/ occupational illnesses multiplied by 200,000 and then divided by the total number of hours worked during the reporting period
Training (HR): Average hours of training carried out during the reporting period per employee, categorized in terms of OHS training, environmental training and total training.

This indicator is aligned with GRI Standards 404-1 disclosure.

Scope Of Reporting

The following tables outline the activities reported for energy consumption, greenhouse emissions, water consumption and solid waste within the scope of this integrated annual report.
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Data Preparation

Energy Consumption
Energy consumption data are reported for electricity and primary fuel sources, including natural gas, diesel, LPG, heavy fuel oil and steam. Electricity and natural gas data are obtained from supplier meters and reconciled with internal meters (when available) and/or service provider invoices. Diesel, LPG, steam and fuel oil consumption data are obtained from supplier invoices. CCI Operations used the following published conversion factors:
  • For electricity, the unit of supply is invoiced in kWh. To calculate energy usage ratio, kWh is converted to mega joules (MJ) at a factor of 3.6.
  • For natural gas, the unit of supply for most suppliers is invoiced in m3. To calculate the energy usage ratio, cubic meters is converted to MJ with a conversion factor of 37.3, except for in Kazakhstan, where a factor of 34.4 is used based on the 2016 analysis conducted by an accredited local laboratory on the natural gas used on site.
  • For fuels other than natural gas (diesel and heavy fuel oil), energy conversion factors (from liters or kilograms to MJ) are obtained from the calculation tool provided by TCCC Default Factors.
  • For diesel (MJ/L), a conversion factor of 39.0 was used.
  • For LPG (MJ/kg) a conversion factor (net calorific value) of 50.0 was used as part of the GHG verification process in accordance with the requirements of ISO 14064-1.
  • For steam (MJ), a conversion factor of (GKAL): 4,186.8 was used (Kazakhstan operations only).
GHG Emissions
GHG emissions are calculated by CCI using published conversion factors. Conversion factors enable an estimate of the amount of GHGs released into the atmosphere per unit of energy consumed. Different types of energy sources have different conversion factors that reflect their carbon dioxide intensity. In the future, conversion factors may be updated to reflect changes to, and/ or improvements in, published data. During the current period, the following conversion factors were used:
  • For fuels such as natural gas, diesel and LPG, conversion factors are derived from calculation tools based on the May 2015 version of the GHG Protocol Standards found on the GHG Protocol website (www.ghgprotocol.org). The Global Warming Potentials (GWPs) used to calculate the emissions of different GHGs in terms of CO2-equivalents are taken from the Intergovernmental Panel on Climate Change’s Fifth Assessment Report.
In 2014, we began using the “GHG emissions from transport or mobile sources” tool, version 2.6 of May 2015, from the GHG Protocol of the World Resources Institute and World Business Council for Sustainable Development to calculate the emission values for employee commuting and business categories. GHG emissions in Turkey are taken from the report verified by the auditing firm in line with the ISO 14064-1 Standard. Since 2017, we have been using DEFRA emission factors for diesel, managed vans class 3.
Extrapolation Method Used for Energy Use Calculation and Total Energy Consumption
Since the period covered by invoices may not always fully align with Company’s reporting period, adjustments are made where necessary in order to align the consumption data from the invoices with the reporting period as agreed with Company’s verifiers.
TCCC Default Factors for CO2 Emissions
Natural Gas (MJ):  0.050539 kg CO
LPG (MJ): 0.056839 kg CO2
Diesel (MJ, light fuel oil): 0.070636 kg CO
Heavy Fuel Oil (MJ): 0.070636 kg CO
Electricity (kWh): For electricity, conversion factors for GHG emissions are obtained from the International Energy Agency (IEA) and shared by TCCC with the entire Coca- Cola system. For 2021 Turkish electricity data, the Ministry of Energy’s reference value was used, which is 0.5706 kgCO2/kwH.
In this year’s report, we used IEA factors of the year 2017 (as there is a two-year time gap for IEA publish the factors for a certain year). Combined factors are used for all operations in the sustainability report. This information is available in the internal document entitled “SDW Fuel Conversion Factors”, which is updated every year by TCCC.

For our Kazakhstan operations, since electricity is generated by a co-generation plant at the site, local laboratory analysis results are used for the calculation of GHG emissions in these operations. The average value of external laboratory analysis results is used to determine the chemical composition of samples of the natural gas used in the plant.
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Water Consumption
Water consumption data is obtained from internal meters where ground water is utilized. Moreover, separate data on water consumption is obtained from supplier meters and then reconciled with internal meters (when available) and/or service provider invoices where the water is supplied by the network.
Restatements
The measuring and reporting of assured environmental data inevitably involve a degree of estimation. In exceptional circumstances, restatements of data reported in a prior year may be required. Restatements are considered where the data differs by more than 5% at the Company level.
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