Coca-Cola Co/The

The ESG and Public Policy Committee assists the Board in overseeing the company's policies and programs—and related risks to the company—that concern environmental, social, legislative, regulatory and public policy matters, including progress against the company's ESG goals. The Committee's scope includes public issues of significance that may affect the company's business, our shareowners, the broader stakeholder community or the general public. This entails evaluating and reviewing information pertaining to social, political and environmental trends, in addition to oversight of the company's ESG goals and human rights practices. In addition to its previously stated responsibilities, the ESG and Public Policy Committee of our Board of Directors oversees and reviews, at least annually, the company's public policy agenda, its position on significant public policy matters, political contributions, and lobbying activities. The Committee reviews shareowner proposals on issues within its purview and makes recommendations on the proposals to the Board. In addition, the Committee receives updates on priority ESG issues, including information on actions and progress toward goals. Annually, the Committee conducts a self-evaluation, which it presents to the full Board.

The ESG and Public Policy Committee of the Company's Board of Directors bears the highest level of direct responsibility for climate-related issues within The Coca-Cola Company. The Committee assists the Board in overseeing the company's environmental, social, legislative, regulatory and public policy matters, including progress against the company's sustainability goals. The Committee's scope includes oversight and monitoring of the company's science-based target which is to reduce absolute scope 1, 2 and 3 GHG emissions 25% by 2030 from a 2015 base-year across the Coca-Cola system. The Committee is also responsible for overseeing and responding to climate-related risks including physical risks from changes to weather and precipitation patterns, extreme weather events and water scarcity which can disrupt/limit production and availability of ingredients and raw materials, and the risks of transition to a low-carbon economy including regulatory and reputational risks. The Committee reports regularly to the full Board on these and other issues. The Committee has responsibility for climate issues because we believe that they have the potential to have a meaningful financial impact on the company and thus are a part of the Board's fiduciary duty. An example of a climate-related decision made in late 2021 (effective February 2022) by the Board includes the Board's Talent and Compensation Committee approving new ESG performance measures linked to annual and long-term incentive (LTI) programs for executives that promote achievement of Coca-Cola's environmental sustainability priorities. The additional measures make up 10% of the performance share unit award under the company's executive LTI program (alongside the other financial performance metrics - net operating revenue growth, earnings per share growth and cumulative free cash flow). The Board included performance metrics around the achievement of our recycled PET goal and water replenishment, which are both components of our climate strategy. Science-based target progress will be phased-in once the company completes its assurance review. [...] Political contributions, public policy advocacy and trade association memberships in the United States are governed as follows: Legal Compliance: Our political contributions and those of our affiliated Political Action Committees (PACs) are executed in compliance with all applicable U.S. laws, regulations and corresponding legal reporting requirements. To ensure compliance, as well as consistency, senior government relations leaders and senior legal counsel review and approve political contributions. Board and Management Oversight: The ESG and Public Policy Committee of our Board of Directors annually reviews and approves our advocacy efforts, including all U.S. political contributions from both PAC funds and, where allowed by applicable law, the Company's general treasury funds. Among other things, these reviews ensure that our activities align with our positions on public policies, serve the needs of our shareowners and also reflect our overall values (https://www.coca-colacompany.com/policies-and-practices/political-contributions). In addition – and for the same reasons – the ESG and Public Policy Committee reviews the Political Engagement Policy (https://www.coca-colacompany.com/policies-and-practices/public-policy-and-political-engagement). The ESG and Public Policy Committee's charter requires this periodic, annual review.

The Corporate Governance and Sustainability Committee has primary responsibility for overseeing the company's sustainability strategies and initiatives—and related risks—that concern environmental, social, legislative, regulatory and public policy matters, including progress toward the company's sustainability goals. The Committee assesses a range of issues relevant to the company's business, our shareowners, the broader stakeholder community or the general public. This entails evaluating and reviewing information pertaining to social, political and environmental trends, in addition to oversight of the company's sustainability goals and human rights practices. [...] The Committee also oversees and reviews, at least annually, the company's public policy agenda, its position on significant public policy matters, political contributions and lobbying activities. The Committee reviews shareowner proposals on sustainability issues to be included in the company's proxy statements and makes recommendations to the Board. In addition, the Committee receives updates on priority sustainability issues, including actions and progress toward goals. [...] The North America Operating Unit Vice President of Public Policy, Federal Government Relations & Political Engagement is responsible for management of our public policy agenda and political engagement, in consultation with the North America Operating Unit Senior Vice President & Chief of Public Affairs, Communications and Sustainability, and the Legal Department. Our political participation is conducted in an open and nonpartisan manner and in strict compliance with the Code of Business Conduct, the U.S. Political Engagement Policy, and applicable laws and regulations.

The Corporate Governance and Sustainability Committee has primary responsibility for overseeing the company's sustainability strategies and initiatives—and related risks—that concern environmental, social, legislative, regulatory and public policy matters, including progress toward the company's sustainability goals. The Committee assesses a range of issues relevant to the company's business, our shareowners, the broader stakeholder community or the general public. This entails evaluating and reviewing information pertaining to social, political and environmental trends, in addition to oversight of the company's sustainability goals and human rights practices. The Corporate Governance and Sustainability Committee oversees our plans and strategies on climate-related issues. For a deeper dive into our climate governance, visit the Climate section. The Committee also oversees and reviews, at least annually, the company's public policy agenda, its position on significant public policy matters, political contributions and lobbying activities. The Committee reviews shareowner proposals on sustainability issues to be included in the company's proxy statements and makes recommendations to the Board. In addition, the Committee receives updates on priority sustainability issues, including actions and progress toward goals. [...] The Corporate Governance and Sustainability Committee of the Board of Directors annually reviews our public policy agenda and advocacy program. These reviews ensure that our activities align with our business interests and serve the needs of our shareowners and broader stakeholder community. The North America Operating Unit Vice President of Public Policy, Federal Government Relations & Political Engagement is responsible for management of our public policy agenda and political engagement, in consultation with the North America Operating Unit Senior Vice President & Chief of Public Affairs, Communications and Sustainability, and the Legal Department. Our political participation is conducted in an open and nonpartisan manner and in strict compliance with the Code of Business Conduct, the U.S. Political Engagement Policy, and applicable laws and regulations.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We act responsibly in all of our political activities – as detailed below. The SVP and Chief Communications, Sustainability and Strategic Partnerships Officer oversees our activities.  But we also go a step further, ensuring that the ESG and Public Policy Committee of our Board of Directors has complete visibility into all our activities and actively reviews them. As with other public companies, our Board has ultimate oversight of our operations and performance.
Political contributions, public policy advocacy and trade association memberships in the United States are governed as follows:
Legal Compliance:  Our political contributions and those of our affiliated Political Action Committees (PACs) are executed in compliance with all applicable U.S. laws, regulations and corresponding legal reporting requirements. To ensure compliance, as well as consistency, senior government relations leaders and senior legal counsel review and approve political contributions.
Board and Management Oversight:  The ESG and Public Policy Committee of our Board of Directors annually reviews and approves our advocacy efforts, including all U.S. political contributions from both PAC funds and, where allowed by applicable law, the Company's general treasury funds.  Among other things, these reviews ensure that our activities align with our positions on public policies, serve the needs of our shareowners and also reflect our overall values (https://www.coca-colacompany.com/policies-and-practices/political-contributions).
In addition – and for the same reasons – the ESG and Public Policy Committee reviews the Political Engagement Policy (https://www.coca-colacompany.com/policies-and-practices/public-policy-and-political-engagement). The ESG and Public Policy Committee's charter requires this periodic, annual review.
Political Giving Criteria:  Our responsibility to help create a better shared future extends into our political contributions from both a company and Coca-Cola Political Action Committee (PAC) perspective. Coca-Cola PAC and corporate political contributions are based on multiple criteria and are not determined solely on the basis of political party affiliation. The company and the Coca-Cola PAC make political contributions in a bipartisan fashion.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, and we do not plan to have one in the next two years

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Integrity, transparency and nonpartisanship underpin our approach to engagement in the public policy and political process. In the United States and Canada, we promote public policy solutions about key issues for our business that include environmental sustainability, consumer preference, tax and trade, and workplace and economic inclusion. Our advocacy often involves education, participation and thought leadership within industry, business and policy forums. When significant to our business interests, we share our policy positions through advocacy initiatives.