Specifically, regarding GHG Emissions, in October 2021, we committed to achieving net zero emissions across our entire value chain by 2040. In 2025 we embraced SBTN targets and now updating our practices to track FLAG and non-FLAG emissions separately and set respective goals. To address the 90% of emissions in Scope 3 resulting from third party actions, we have broadened our existing partnership approach with suppliers.
In this respect the Procurement Function launched further collaboration with critical suppliers in Raw and Packaging Categories, reflecting our joint commitment to reduce emissions efficiently in an accelerated manner together with The Coca-Cola System.
In 2022 Coca-Cola HBC joined the collaborative framework across The Coca-Cola System to calculate emissions using the Supplier-Specific method (SSEF). This involves gathering suppliers' operational activity data, identifying the right Supplier Specific Emissions factor(s), and converting the activities to measurable CO2e performance. In 2025 we upgraded this activity, introducing a specialised GHG Emissions Measurement Tool, Altruistiq Platform, that is built with focus on the Food & Beverage industry. The platform supports The Coca-Cola System to drill into supplier-specific emissions at ingredient/material level, identify our highest-impact relationships, compare supplier performance, and prioritise engagement where it matters most.
For less mature suppliers, we recognised the need to help build critical knowledge on emissions management and leveraging best practices. For this reason, we engaged with Guidehouse on their capacity building programme the SLoCT(Supplier Leadership on Climate Transition), and provide training that enables suppliers to establish a strong foundation for their GHG emissions management journey.
The efforts we are placing with Suppliers to build their capabilities, have started generating significant results. The targeted discussions and initiatives we are having in Coca-Cola HBC with our suppliers, are proving to be very efficient and fruitful.
We engage in a very large number of activities across all our BUs together with our Suppliers to promote the sustainability agenda. Some activities with significant sustainability impact include but are not limited to the following examples:
In Egypt and Nigeria, our partners have actively engaged and exploited every opportunity to leverage the knowledge offered to them: our Egyptian sweeteners suppliers enrolled in the GHG capability building programme to be supported in their own GHG emissions journey. Our biggest Sugar and High Fructose Starch Syrup (HFSS) suppliers in Egypt started in 2025 delivering sustainable sugar for Egypt and we continue to invest in growing the quantities further in 2026. Our key sugar supplier in Nigeria has successfully been accepted as a Bonsucro member and has secured 100% sustainable sugar crops for our local operations since 2024.
We have launched a pilot Farm level programme with our main sugar supplier in Europe for beet sugar crop production with optimised FLAG emissions via new low-carbon fertiliser, deployed successfully across participating agricultural farms targeting 2025-2026 crops. The pilot is progressing very well and supports establishing a solid basis for further scaling.
Since 2024, we have started working on EU Deforestation Regulation (EUDR) and we have reached readiness to implement it. On Biodiversity and Deforestation, we are proactively collecting all the necessary information from our relevant significant suppliers on Group and local level to report the deforestation-free supply chain and to be able to create action plans for compliance by the end of 2026 across all main agricultural commodities.
In 2025, we invested €236 million capital expenditure (Capex) on projects supporting the implementation of our climate transition plan, representing 28.5% of total Capex. We also invested €55 million driven by a higher cost of recycled PET compared to virgin PET, as we succeeded in our strategic objective to reach 35% rPET by 2025, positively influencing both the reduction of our scope 3 emissions and the transition to a circular economy. Almost 50% of our requirement for recycled PET are served in-house, which also reduces costs. In 2024, five of our water brands were sold in 100% rPET bottles. In addition, the plant’s use of 100% renewable electricity reduces CO2 emissions per preform by up to 70%, compared to virgin plastic.
In 2025, we accelerated our circular economy and sustainability strategy by expanding the use of recycled PET (rPET) across our packaging portfolio in line with the EU regulations. In Italy, one operation transitioned all 0.5L water SKUs to bottles containing 50% recycled PET, while another fully converted its 0.5L bottles to 100% recycled PET. Beyond Italy, seven Business Units (Croatia, Greece & Cyprus, Czech Republic, Hungary, Poland & Baltics, and Bulgaria) that previously relied entirely on virgin PET adopted rPET for the first time, marking a major milestone. While some EU countries had already achieved 100% rPET in previous years, additional EU markets increased rPET content placed in the market to 35%, with select SKUs reaching full rPET content in the fourth quarter. Non-EU markets also progressed, with Serbia, North Macedonia, Bosnia & Herzegovina and Ukraine introducing 100% rPET for specific SKUs, and Nigeria implementing a phased approach starting at 10% and reaching 14% by October. Overall, this initiative replaced more than 30,000 metric tonnes of virgin PET with recycled material placed in the market and saved carbon emissions by over 75,000 tonnes, reinforcing our commitment to circularity and climate impact reduction.
In Nigeria in 2025, we introduced a new lightweighting solution for PET preforms used in SSD and water bottles. The adoption of the GME 30.40 neck finish enabled a weight reduction of just over one gramme per unit, delivering meaningful material savings and lowering the carbon footprint of our packaging. Additional measures, such as transitioning to natural-coloured closures and harmonising label specifications, contributed to further reductions in material use and supported our Scope 3 decarbonisation efforts.
For Cans, additional lightweighting initiatives across several European markets were introduced, despite the fact that in Europe our cans are the lightest in The Coca-Cola System. In Romania, Poland, Baltics, Austria, Hungary, Greece, Cyprus, Ukraine, and Italy we have worked with our vendors to redesign the bodies, optimising further the weights for 150ml, 250ml and 330ml cans by approximately 2.5% through precision engineering, refining specifications and leveraging innovative manufacturing processes, saving more than 90 tonnes of aluminium and avoiding approximately 450 tonnes of CO₂ emissions.
Our secondary packaging strategy also advanced significantly such as Labels optimisation initiatives across Ireland, Romania, and Hungary. In Ireland, the transition to low-density film for BOPP labels improved material efficiency, reducing plastic use by 12%. In Romania, reducing the height of OPP labels for 2L SSD bottles lowered material consumption and contributed to an estimated reduction of nearly 20 tonnes of CO₂ emissions. In Hungary, harmonising BOPP label heights across key brands reduced label material by 9%, avoiding approximately 6 tonnes of CO₂ emissions annually.
In Ireland, we reduced cardboard tray weight by 7% across Monster SKUs, avoiding around 90 tonnes of CO₂ emissions. We also introduced nano stretch film for secondary packaging, cutting plastic use by 17 tonnes and reducing emissions by approximately 45 tonnes. In Hungary, lighter can trays lowered fibre content by 1.4%, in Nigeria we replaced corrugated layer pads with pallet glue eliminated cardboard use and avoided about 593 tonnes of CO₂ emissions.
In Poland and Baltics, we introduced shrink foil containing 30% post-consumer recycled content, reducing virgin plastic use and cutting emissions by more than 425 tonnes of CO₂. In Serbia, shrink film thickness was reduced by 10%, in Italy, procurement integrated shrink film with 50% recycled content, significantly reducing reliance on virgin plastic and in Egypt, secondary packaging was redesigned for single-serve packs, reducing shrink film size and saving 60 tonnes of plastic. Collectively, these initiatives avoided more than 1,150 tonnes of CO₂ emissions across our operations.
Nano stretch film replaces conventional pallet wrap and significantly reduced plastic use. From Bulgaria and Austria to Romania, Hungary, Serbia, the Adria Business Unit, and the Czech Republic, the transition to thinner film achieved notable reductions in packaging weight and material consumption. Collectively, we delivered a combined reduction of more than 600 tonnes of CO₂ emissions across our operations, underscoring the impact of smarter packaging solutions on climate goals.
Beyond packaging, we continued to decarbonise logistics through fleet electrification, alternative fuels and infrastructure upgrades. Electric trucks and vans were deployed in Switzerland, Ireland, Northern Ireland, Hungary and Bulgaria, while Serbia and Montenegro transitioned to hybrid fleets. Selected delivery routes in Bulgaria were converted to electric buses, and HVO fuel was introduced in specific markets. The replacement of LPG forklifts with electric models in Hungary further contributed to emissions reduction. Collectively, these actions reduced logistics-related emissions by approximately 2,800 tonnes of CO₂ and supported our long-term transition to low-carbon transportation.
Energy efficiency and renewable energy remained key priorities. At our Knockmore Hill site in Northern Ireland, LED lighting upgrades and the introduction of locally sourced biomethane for the Combined Heat and Power (CHP) plant delivered annual savings of more than 1,200 tonnes of CO₂. In Romania, the installation of 1 MW solar photovoltaic system at the Timișoara plant strengthened energy security and reduced reliance on grid electricity.
Our focus remains on driving long-term competitiveness, protecting natural resources and creating shared value for customers, communities and stakeholders.
More examples of key joint activities with Strategic Vendors can be found under the 2025 GRI Content Index Section 2-6 “Activities, value chain and other business relationships”.
