Analysis of Four of the First Regulated Reports under CSRD – Part 2: Coca-Cola and Its Business Hand in Hand with Sustainability

The first sustainability reports prepared in line with the new ESRS standards are now appearing on the market. The professional community has been eagerly awaiting them since 2022, when the CSRD Directive was adopted. These reports are now being published by companies from the so-called first wave — that is, businesses that were already required to disclose certain non-financial information in their annual reports under the 2014 NFRD (Non-Financial Reporting Directive), or that later became subject to this obligation.

Expectations were high: the first reports were anticipated to set the standard for how ESG reporting should work in practice for large companies. This article, however, does not focus on evaluating their quality but instead highlights examples of approaches that can serve as inspiration for further developing sustainability practices.

Our analysis, which we presented at this year’s 3rd Czech & Slovak Sustainability Summit, focused on four companies from different industries and European countries: the Danish energy company Ørsted, Slovakia’s Tatra Bank, the Dutch firm ASM, and the Swiss-based Coca-Cola holding, which we take a closer look at in this article.

Business and Sustainability in Synergy

The European division of food and beverage giant Coca-Cola, headquartered in Switzerland, placed particular emphasis on the visual aspect of its sustainability report. Across an extensive 134 pages, it seeks to demonstrate how sustainability is inseparably linked to the company’s business strategy.

How Coca-Cola Addresses Materiality – and Where Questions Remain

In assessing double materiality, Coca-Cola chose a top-down approach — the parent company first defined key impacts, risks, and opportunities, which were then adapted by individual subsidiaries according to their specific conditions. The group-level materiality analysis also involved a broad range of stakeholders. An interesting and at the same time surprising outcome, however, is that the area of Governance was evaluated as non-material. Given the size of the company and the potential risks, this conclusion is rather unexpected.

Uncertainty also arises from the way the company assessed impacts. According to the standards, all impacts should be evaluated in terms of severity (scale, scope, and irremediability) and likelihood, with the criterion of irremediability not applying to positive impacts. Coca-Cola, however, applied these parameters only to negative impacts. For positive ones, it instead used the criterion of “materiality,” which is supposed to be the result of the entire assessment, not one of its inputs. It therefore remains unclear what the company specifically understands by this concept.

From the climate plan to recycling

When it comes to environmental topics, the report goes into considerable depth. In addition to its climate transition plan and goal of achieving carbon neutrality, it provides a detailed analysis of water management – a key resource for beverage production. The ESG report outlines relevant policies as well as specific commitments through which the company seeks to reduce its environmental impact, both now and in the future. Circular economy and waste management also receive significant attention. Moreover, Coca-Cola formulates all its targets with regard to specific countries and regions, demonstrating its awareness of differing market conditions and regulatory frameworks, and adapting its approach accordingly.

We will bring you details on the approaches of other companies soon – the full analysis, covering not only the Swiss holding Coca-Cola and the Danish energy company Orsted, which we looked at previously, but also Slovakia’s Tatra Banka and the Dutch company ASM, is already available on the Ekonews platform.

Get Ready for ESG Reporting

At Frank Bold Advisory, we help you navigate the current requirements of the European CSRD directive as well as the ongoing changes brought by the so-called Omnibus regulation. We guide you through the preparation of an effective ESG report in line with ESRS standards – whether you're just starting out or looking to improve existing processes.

We work with both major market players and smaller companies within supply chains – from initial analysis and selection of key indicators to final reporting.