employee engagement and wellbeing - coca-cola hbc ag · · 2018-02-21strategic goals and values...
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1Employee Engagement and Wellbeing
Employee Engagement and WellbeingFocusing on the total employee experience
thrEE arEas oF EngagEmEnt
Attachment to the company and willingness to give discretionary effort.
A local work environment that supports productivity and performance.
Individual, physical, interpersonal and emotional well-being at work.
Engaged
Enabled
Energized
Employees are really motivated and willing to invest discretionary effort in helping the organization succeed, going above and beyond.
Employees tell with pride, that they work for their company and recommend the company as a good place to work.
Employees have rational understanding of organization’s strategic goals and values and share these beliefs.
ThinkRational Engagement
FeelEmotional Engagement
ActMotivational Engagement
PACKAGING
TWIST bottles are
22% lighter than previous containers
Fully recyclable PLANTBottles® contain
plant-based material - available in 10 of our markets
30%
#1
WATER USAGEreduced by
In the past 2 years
~~
In the past 6 years
CARBON FOOTPRINTreduced by
billion litres
glass of water
foreveryone on Earth
In 2016
spent on
COMMUNITIES to support wellbeing, environmental and water stewardship, youth development
¤7.3 million
1.15215,000
annual emissions of over
passenger cars
1.74
1
RECYCLING
26%
increase in the use of recycled PET versus 2010.
milliontonnes
Ranked #1 by Dow Jones Sustainability Indices (DSJI)We are the first company to achieve four consecutive wins in the world’s most prestigious business sustainability rankings and now we also lead the Food, Beverage & Tobacco Industry Group as a whole.
In 2017 we were one among only 25 companies from all industries to be recognized as a global leader in corporate sustainability areas for climate and water by the Carbon Disclosure Project (CDP).
For more information please visit our website:
Our 2020 commitments highlight
our determination to grow our
business responsibly, profitably
and sustainably. They are part of
our long-term strategy that has
enabled us to become leaders in
sustainability among beverage
companies.
SUPER SECTOR LEADER IN DOW JONES SUSTAINABILITY INDICES FOR THE FIRST TIME & BEVERAGE INDUSTRY LEADER FOR THE FOURTH CONSECUTIVE YEAR IN 2017
*Water consumption and direct carbon emissions per litre of beverage produced, versus 2010
We will recover for
recycling an average
of 40% of the total
packaging we introduce
to our markets
We will invest 2% of our
annual pre-tax profit in
communities and double the
number of employees taking
part in volunteering initiatives
during work time to 10% of
our people
We will take 40%
of the total energy
we use from
renewable and clean
energy sources
We will source 20% of the total
PET we use from
recycled PET and/or
PET from renewable
material
We will reduce
primary packaging
by 25% per litre
of beverage produced
We will certify over
95%
of our key agricultural
ingredients against the
Coca-Cola system’s
Sustainable Agriculture
Guiding Principles
We will reduce
direct carbon
emissions intensity
by 50%*
We will reduce
water use
intensity
by 30%*
We will reduce
carbon emissions
intensity in the
value chain by
25%
We will certify all of our
plants in European
Water Stewardship or
Alliance for Water
Stewardship standard.
THE ISSUE
The success of any business depends on its ability
to attract and retain talented, healthy, happy and
engaged people, working in an inclusive environment.
Improvement in well-being results in better
workplace performance, including enhanced financial
performance, labour productivity and output quality.
WHAT ENGAGEMENT AND WELLBEING MEAN AT CCHBC
At the core of achieving our business strategy is the
engagement of our employees. We recognise, though,
that engagement alone is not enough. We need
our people to be sustainably engaged. This is why
CCHBC is committed to continuing its focus on the
model of sustainable engagement developed by our
independent partners, Willis Towers Watson (WTW),
as below.
Employees can sustain their engagement if they encounter an enabling and socially supportive work environment (energized).
What makes Engagement sustainable?
Our 2020 commitments highlight
our determination to grow our
business responsibly, profitably
and sustainably. They are part of
our long-term strategy that has
enabled us to become leaders in
sustainability among beverage
companies.
Our
2 3Employee Engagement and Wellbeing Employee Engagement and Wellbeing
We’re inviting our people to Be Balanced and
introduce new habits and routines into their lives so
they can overcome any obstacle.
Social well-being is about being together
with family and friends, feeling connected to your
colleagues and giving back to the community.
Emotional well-being is about feeling happy and relaxed, being equipped to deal with anything life
throws your way.
Financial well-being is about security for
the future and making sure that each of us is prepared for what lies
ahead.
Physical:
Be BalancedSocial:
Be TogetherEmotional:
Be HappyFinancial:
Be Prosperous
We’re inviting our people to Be Balanced and
introduce new habits and routines into their lives so
they can overcome any obstacle.
We want to Be Together as one Hellenic family and develop a greater understanding of the
people and communities with whom we work.
We want everyone to Be Happy and approach
all situations with an optimistic attitude.
We want everyone to Be Prosperous and achieve their goals
within life.
OUR APPROACH AND PROGRESS SO FAR
For the past four years, we have conducted a
comprehensive annual survey of our employees,
working with WTW. By listening to their views on a
range of aspects of their jobs and our company, we
have improved our engagement levels, year on year,
for the past four consecutive years. In 2016, we
exceeded the High Performing Norm (those companies
with high engagement scores and positive financial
results for three consecutive years) by two percentage
points and we led the Coke System in employee
engagement as well as significantly exceeded the
industry and FTSE100 norms.
To guide our business units and functions, each year,
we set strategic priorities that target focus areas
identified by our survey. Aligned with those strategic
priorities and targeting areas for improvement in each
group, action plans are developed at business unit,
country and functional level. As well as geography and
function, these plans are segmented by key employee
groups, including key people, Management Trainees
and our Field Sales staff to ensure we meet the different
needs of our employees.
Our Sustainable Engagement Index score increased
to 88% in 2016 from 87% in the prior year, with the
participation of 96% of our people. At the same time,
our score was:
• 7 percentage points above the FTSE 100 Index,
• 7 percentage points above the Fast Moving
Consumer Goods industry norm,
• 4 percentage points above the Coke System Index
and
• 3 percentage points above the Coke bottlers’ Index.
THE ROLE OF EMPLOYEE WELLBEING
CCHBC’s strategy is to create a culture of wellbeing that
exemplifies our Values, and enhances engagement and
productivity, and our reputation. At CCHBC, wellbeing
is about feeling good and living safely and healthily, and
our commitment is to have 100% of our employees
have access to a health and wellbeing programme.
Our programs come under our ‘Be Well’ umbrella.
The purpose of Be Well is to raise awareness and give
a consistent strong identity to what we are doing within
this important framework.
In 2016, we continued to build on our Employee
Wellbeing Framework – adopted in 2014 – which
focuses on four main elements of wellbeing: Physical,
Emotional, Financial and Social (below).
GROUP-LEvEL INITIATIvES
As well as a host of country-level initiatives, we have
taken action at a Group level to enhance wellbeing
across CCHBC. In 2016, we created a Wellbeing toolkit
for countries. The toolkit shares our holistic Wellbeing
strategy and framework and provides support for
creating and communicating employee well-being
programmes.
thE EnErgy ProjEct
In June 2017, we launched a pilot in Region 1 (Austria,
Czech and Slovakia, Hungary, Italy and Switzerland
Business Units) to help leaders understand the
behaviours that affect their, and their team’s, energy.
The aim was for leaders to value their energy and to
role model behaviours for their teams that helped their
team members stay energized.
We partnered with The Energy Project to share simple
but effective strategies to renew and improve energy
levels. The working session in June highlighted the
importance of ‘micro experiments’ to help test ways
that teams can become more energized, positive
and focused. To build on the workshop, the Regional
leadership team and each country’s leadership
team started to define their personal and team
commitments throughout July and August. Monthly
follow-up calls with the leadership teams ensure
continued focus on those commitments and a one-day
Energy Renewal session is planned for Q4 2017.
The energy initiative covered more than one pillar of
our wellbeing framework. Group and country-level
Initiatives focused on specific pillars are outlined below.
Emotional WEllbEing
Stress management: research suggests managers
have a critical role to play in managing work-related
stress. We, therefore, developed a guide to help
managers recognize, prevent and manage stress in
themselves and their teams. To support roll out and
use of the guide, training is being provided to HRBPs
in a ‘train the trainer’ approach on helping managers
manage stress.
Our Global Employee Recognition Platform will be
relaunched with the intention to address our retention
strategy for individuals and teams by recognizing
behaviours that reinforce our values, driving results
through a high-performance mindset, which is an
integral part of CCHBC’s DNA, and supporting growth
through entrepreneurship and innovation.
social WEllbEing
To maximize the impact of Family Days on engagement,
we created a toolkit with a common CCHBC visual
identity, messaging and the theme of charitable
contributions to our communities. In addition, we
developed a CCHBC intranet platform to share the
Family Days across our countries.
To reinforce the social wellbeing of our employees,
CCHBC provides dependents’ support through an
umbrella approach for dependent care benefits
targeting child and elderly care for all countries that
thE coca-cola hbc WEll-bEing FramEWork
4 Employee Engagement and Wellbeing
includes three strategic pillars, each with a number of
initiatives: time off for child or other dependent care,
subsidies for school supplies or after-school activities,
or nursing care. Countries provide one or more benefits
under the pillars that best fit their local employees’
needs and cultural differences.
Physical WEllbEing
To drive focus on health and preventative care, we
have also established an umbrella approach for health
care benefits for all countries covering three strategic
pillars, each with a number of initiatives: private medical
insurance and health checks, targeted health programs
and paid sick leave. Options include free or subsidized
private medical insurance, health checks, vaccinations,
or on-site doctor visits. As with dependent care,
countries provide one or more benefits under the pillars
that best fit their local employees’ needs and cultural
differences.
COUNTRY-LEvEL INITIATIvES
Our countries have undertaken a wide range of
initiatives around wellbeing. Regarding physical
wellbeing, these include employee medical and health
insurance benefits; vaccination programmes, cancer
screening and other preventative health measures;
on-site sports and gym facilities, as well as subsidized
gym memberships, and nutrition information. To
help employees financially, as well as benefits such
as pensions and savings scheme and life insurance,
measures have included financial planning and literacy
and a variety of partner discount programmes.
Countries have also covered emotional wellbeing
through onsite counselling, relaxation techniques,
and energy balance programs; and social wellbeing
with Family Days, Christmas events, employee bonding
days and team building events.
My daughter is getting transformed into a butterfly at the face painting for kids. It is Family Day in the production plant Edelstal and, as each year, we are part of it. Weeks before, my children get super excited and look forward to this special day. My husband loves to join us as well and so it became a mandatory date for all of us. It is a lovely sunny day with plenty activities. One of the highlights is the plant tour, which perfectly shows the changes of Edelstal into a mega plant. Especially the automated warehouse with the laser guided vehicles is outstanding and emphasizes the innovativeness of our production plant… It is nice to get to know my colleague’s families. We have good conversations and a great time.
Julie Wernie, Commercial Trainee, Austria
humanWe work continually to develop the competencies, capabilities and talent of our people, a critically important asset.
naturalWater, energy and other natural resources are important inputs to our value creation processes, and we seek to use them efficiently.
social and relationshipSocial and relationship capital includes our reputation and our ability to earn and maintain the trust of key stakeholders.
FinancialWe seek to use all funds efficiently, whether obtained through financing or generated from operations or investments.
intellectualOur knowledge-based assets include our brands and brands we license, as well as proprietary technology, standards, licences and processes.
manufacturedWe carefully manage our stock of manufactured capital, including equipment and buildings, held to produce and distribute our products.
Serving customers effectivelyWe manage customer relationships as well as promotions and displays at the point of sale. Our customers rely on us to have a full range of quality products on the shelves every day, so that they can satisfy consumers’ refreshment needs. In order to give our customers the best possible service, we segment each market and serve each customer based on size and need, taking into account prevalent market conditions.
serving consumers and communitiesWe offer a range of beverages to satisfy evolving consumer preferences. By providing products that meet consumer needs and operating a responsible, sustainable business, we create value for the communities where we operate.
Working with partnersOur partnership with The Coca-Cola Company gives us exclusive rights to manufacture, sell and distribute their branded products in our territory. They also produce and supply our Company with the concentrate, or syrup, that is the main ingredient for our beverages.
Working with suppliersWe rely on our supply chain for many types of inputs to our business, including equipment and machinery and consultancy services and soft-ware. Partnering with responsible, dependable, efficient suppliers allows our Company to focus on what we do best – producing and distributing beverages that bring smiles to consumers.
Producing cost‑efficientlyUsing concentrate from The Coca-Cola Company, and other ingredients, we produce, package and distribute products. We produce nearly all of the products we sell at our production facilities that also have distribution centres and warehouses. Utilising these facilities wisely helps us produce products responsibly and is key to our profitability.
capitals engaged Value added by Value created
EmployeesDeveloping, recognising and rewarding our people secures a skilled and motivated workforce.
customersOur efforts to produce products efficiently and responsibly build value for our customers’ businesses.
shareholdersThrough the process of managing all inputs to our business well, we create profits which benefit shareholders through dividend payments and share value.
suppliersAs we create value, we support businesses throughout our value chain, and support job creation beyond our business.
communitiesWhen our business is profitable, sustainable and responsible, the communities where we operate benefit through job creation, tax payments to governments, useful products and services, and minimisation of environmental impact. We also have a commitment to invest 2% of our pre-tax profits in programmes to support communities in our territory.
By running a profitable, sustainable, responsible business, we create value which is subsequently both retained by our business, making it stronger, and shared with all of our stakeholders.
Direct employment
31,083Met or exceeded customers’ expectations
94.8%Net profit
€344m
Supplier spend
€3,138m
Total taxes
€281m
our business model is at the heart of everything we do. it supports our growth and defines the activities we engage in, the relationships we depend on and the outputs and outcomes we aim to achieve in order to create value for all of our stakeholders in the short, medium and long term. Leveraging
our growth model
Createdemand
Grow thetop-line
Investin the
business
Expandmargins
marketing
in-market execution
cost efficiencies
Use of cash
Price and mix improvements
Leverage top-line growth
Brand investment – The Coca-Cola Company
Growth in category volume
Investment in production optimisation
Working capital management
In-store activation – Coca-Cola HBC
Share gains
Operatingexpense reduction
Disciplined CapExinvestment
EnhancedEBITDA growth
BUSINESS MODEL
Find all of our locations:www.coca-colahellenic.com/ interactivemap
Our broad geographic footprintWe operate across 28 countries and three continents. Our territories extend from as far west as the Dingle Peninsular in County Kerry, Ireland, to Petropavlovsk, the easternmost point of Russia, and from the Arctic Circle to the tropics of Nigeria. This breadth provides attractive growth opportunities and reduces our dependence on any particular market.
28 countries 136 brands 2,058 million unit cases €518 m EBIT 31,000 employees
3continents
56plants
264warehouses
and distributioncentres
595 millionconsumers
Established markets• Austria• Cyprus• Greece• Italy• Northern Ireland• Republic of Ireland• Switzerland
Developing markets• Croatia• Czech Republic• Estonia• Hungary• Latvia• Lithuania• Poland• Slovakia• Slovenia
Emerging markets• Armenia• Belarus• Bosnia & Herzegovina• Bulgaria• FYROM• Moldova• Montenegro• Nigeria• Romania• Russia• Serbia• Ukraine
OUR MISSIONWe seek to refresh our consumers,
partner with our customers, reward ourstakeholders and enrich the lives of the people
in our local communities.
OUR PUPOSEBring togetherness, spread happinessand inspire a better future motivatesour employees to make a meaningfulcontribution to business and society.
OUR VISIONTo become the undisputed leader
in every market in which we compete.
inFormation aboUt thE comPanyCoca-Cola HBC is ranked food, beverage and tobacco industries’ leader in the Dow Jones Sustainability World and Europe Indices. It is also included in the FTSE4Good Index and has a AAA rating on its ESG performance by MSCI. Coca-Cola HBC has a premium listing on the London Stock Exchange (LSE: CCH) and its shares are listed on the Athens Exchange (ATHEX: EEE).
PlEasE contact Us atPanagiotis vergis Group sustainability policy and reporting manager Coca-Cola HBC AG E: [email protected] T: +30 210 6183146