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Corporate Social Responsibility

Report1 January 2011 - 31 December 2011

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Contents

About the Report

Message from the CEO

CCI 2020 Vision and Strategic Framework

Achievements in 2011

CCI Journey of Sustainability

CCI at a Glance

Corporate Social Responsibility Approach

Energy Management and Climate Protection

Water Management

Sustainable Packaging

Our Workplace

Product Responsibility

Community

Performance Indicators

Glossary

CCI Water, Energy Use and Carbondioxide Emissions Reporting Guidance

United Nations Global CompactCommunication on Progress Index

GRI Indicators Table

Independent Limited Assurance Letter

GRI Approval

Legal Disclaimer

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Coca-Cola ecekCorporate Social Responsibility Report 1

About the ReportCCI corporate social responsibility andsustainability performance has been reported since2008. This reporting implementation is prepared tomeet the information requirements of 18 differentstakeholder groups presented in our stakeholdermap. These requirements are determined by theCCI Sustainability Study Group, while consideringfeatured demands and needs of stakeholdergroups, such as covering expectations of certaingroups in more detail. In this regard, the target

audience of our report includes our employees,distributors and sellers, consumers, unions,non-governmental organizations, media andopinion leaders.

The positive or negative performance resultsobtained in all areas, determined in the context ofCCIs sustainability management, are announcedtransparently in this report.

The range of this report includes implementationsand performance results obtained from January1st, 2011 - December 31st, 2011. Thus wehave achieved our annual reporting target,determined in the last reporting period (January1st, 2009 - December 31st, 2010). In addition to thisprogress, we reported performance results in 4countries, namely Turkey, Jordan, Kazakhstanand Azerbaijan, with the addition of some goodpractices and efforts from our Pakistan operationsthis year. During the calculation and constitution

of performance data for the report, we utilizedmethodologies and standards such as the GlobalReporting Initiative (GRI), the United NationsGlobal Compact (UNGC), International LaborOrganization (ILO), Universal Declaration ofHuman Rights, United Nations Convention against

Corruption and Green House Gas Protocol (GHG).In addition to these implementations, performancedata is analyzed by generating numbers per unitproduced, and deducting this number from theproduction amount, so that readers are providedwith better analysis and accessibility. Ourreport refers to GRI G3 reporting principles andcovers A+ implementation level requirements.Further, the report received independent limitedassurance from an international independent audit

organisation (PwC) as described in the AssuranceEngagements Other Than Audits or Reviews ofHistorical Financial Information (ISAE 3000).Within the context of this implementation, the totalenergy amount, relevant total carbon emissions,related energy consumption per product,total water consumption and relevant waterconsumption per liter of production at CCI Turkeyplants in 2011 was assessed.

While preparing the report, we adhered to theUNGC principles and GRI G3 standards. TheUNGC Communication on Progress ReportingPrinciples and the statement of approval of GRIimplementation level, are available at the end ofthe report and at our corporate internet address;www.cci.com.tr.

Collecting stakeholder feedback is a veryimportant process that helps us to improve bothour implementations and reporting processes.

We closely examine every issue that comesto our attention and we use the feedback ofour stakeholders to continuously improve ourimplementations. Accordingly, our stakeholderscan send their opinions, suggestions andcomplaints to [email protected].

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Message from the CEO1 L of product to 1.42 L/L in Turkey, to 1.74 L/L inAzerbaijan, to 1.70 L/L in Kazakhstan, and to 2.00 L/L inJordan. We will continue our efforts to preserve waterresources during the next reporting period.

Another priority for CCIs sustainability strategy is energymanagement. Here we pushed forward to reduce our energyconsumption and carbon footprint by reengineering ourpackaging and our manufacturing, distribution, and coolingoperations. We continued our efforts to raise awarenessof sustainability amongst employees and collaborationwith international organizations. During the next reporting

period, we aim to reduce our water and energy usageratios, which exceeded or remained equal to the 2010year ratios in some of our operations, as a consequenceof the trial productions and start-up of new productlines during 2011. In addition, CCI aims to improve ourenvironmental performance through operational excellenceimplementations and to ensure the deployment of goodpractices across our operations.

In 2011, as part of our on climate protection strategy, CCIparticipated in the Climate Platform - Turkey ClimateChange Leaders Group which supports a low carboneconomy and carries out studies on climate change. Also

during the same period, after participating in the CarbonDisclosure Project (CDP) as the first company from Turkeysfood and beverage sector and providing transparencyin reporting, CCI emerged as one of the top five carbondisclosure leaders in Turkey. In addition to this, CCI signedthe 2C Challenge Communiqus, aiming at maximizing theefforts of governments and corporations towards sustainingprogress in climate protection.

With CCIs sustainable packaging implementations, anotherpriority of our sustainability strategy, we run an effectivematerial and waste management model while increasingthe usage of recycled materials. During this reporting

period, we increased material recycling rates by 0.58%in Turkey, 2.89% in Jordan, and 0.97% in the Azerbaijanoperation.

CCI quality management systems and efficiencyimplementations, in addition to the economic andenvironmental advantages, help us fulfill our promiseto consumers by serving them products of the highestquality produced at the highest safety standards. Duringthe reporting period, CCI Ankara plants high qualityperformance in the implementation of the EFQM ExcellenceModel was awarded with the Grand Quality Award at theKalDer 2011 National Quality Awards in the operational

unit category. Additionally, seven CCI plants obtained theISO 22000 Food Safety Management System Certificate(FSSC) and three plants obtained the ISO 50001 EnergyManagement Systems Standard Certificate. It is our goal

Dear Stakeholders,

Despite difficult market conditions and political andeconomic instability prevailing throughout a large partof our operating geography, we are delighted to haverecorded a positive growth in 2011. Due to our competitivebusiness model and opportunities related to our operationalgeography, which still maintains high developmentpotential, we realized consolidated sales volume of 761.7million unit cases, representing volume growth of 14.5%and EBITDA expansion of 11.9%. Also, in 2011, internationaloperations grew by 25.7% and our Turkey operation by

10.6%, lending momentum to our acceleration.Recently, we have witnessed a period in which local andglobal stakeholder expectations have gradually affectedthe ways companies do business. At CCI, we recognizedthis opportunity, understood the expectations of ourstakeholders, and have endeavored to implement oureconomic, social and environmental projects in compliancewith their requirements. With this report, we present to ourstakeholders our goals, performance results, and projectsrealized last year in line with our vision and sustainabilitystrategy.

As part of our transparency strategy, which is one ofour fundamental business principles, we share thefinancial, environmental and social consequences of ouroperations with our stakeholders. We endeavor to increaseour transparency level each year with annual reports,economic impact studies, carbon disclosure reports andcorporate social responsibility reports. This year, with ourcorporate social responsibility report, we succeeded inobtaining A+ level GRI approval. We included four countriesrepresenting 85% of our total business volume; Turkey,Azerbaijan, Jordan and Kazakhstan in the scope of our2011 report. Additionally, some good practices and effortsof our Pakistan Operation, which was acquired in 2008,

were included. CCI has instigated many improvements inenvironmental and social areas in a very short time acrossour operating region, yet we acknowledge that there aremany opportunities for improvement and we are determinedto work towards those opportunities.

Water management is the most critical part of CCIssustainability strategy, and as we are one of the fastestgrowing business partners in the worlds largest beveragesystem, we are ever-conscious that one of the main effectsof a growing population and industrialization on human lifeand nature is diminishing water resources. Consideringour implementations as a raft in the context of our

environmental management model, operational excellenceand innovation studies, we endeavor to minimize waterconsumption per product. As a result of studies carried outduring this reporting period, we reduced water usage per

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CCI Target Fields

People and Organizational LeadershipBuild a highly capable organization and be theemployer of choice

Commercial LeadershipProfitably deliver superior value to consumers andcustomers at the optimal cost to serve

Operational ExcellenceCreate a culture of Operational Excellence to supportcontinuous improvement of our business process andsystems

Supply ChainTo be the best in class consumer demand fulfillmentorganization that exceeds customer expectationshighest in quality, lowest in cost, in a sustainable,socially responsible manner

SustainabilityEnsure the long-term viability of our business bybeing proactive and innovative in protecting theenvironment and be recognized as one of the mostresponsible corporate citizens by all stakeholders

Embed sustainability in our culture to achieve ourcommitments

Environment: Minimize our carbon footprint andwater usage by reducing packaging, water and energyMarketplace: Consistently provide the highest qualityand food safety compliant beveragesWorkplace: Ensure a safe place to work, respectinghuman rights and be fully compliant with workplacerightsCommunity: Make a difference in our localcommunities by encouraging employee volunteerismand by corporate involvement

Develop all employees and business partners tobecome proud ambassadors of our products andcompany

Vision

Be the outstanding Beverage Company leadingthe market, inspiring people, adding value throughexcellence

Mission

Build a sustainable and profitable business through

refreshing consumers, partnering with customers,delivering superior value to shareholders and beingtrusted by communities

Values

PassionWe put our hearts and mind into what we do AccountabilityWe act with a high sense of responsibility and holdourselves accountable IntegrityWe are open, honest, ethical and we trust and respecteach other TeamworkWe collaborate for our collective success

The Building Blocks of our Culture

Trust in each other Focus on the customer Embrace your work Inspire innovation Collaborate for success Be agile Be participative Enjoy working

CCI 2020 Vision and Strategic Framework

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Achievements in 2011

1 Operational Excellence is a management model which consists of lean management, 6 sigma methodology andbest practices of TCCC.

We increased the material recycle ratio by 2.89% inthe Jordan operation, 0.39% in the Azerbaijanoperation and 0.58% in the Turkey operation.

The 10.5 g short neck 500 ml Pet Water Bottlereduced our environmental impact by using29.5%less material and was one of the winners of theWorldstar Packaging Awards.

Water consumption ratio in the Turkey operationswas 1.42 L/L.

As a result of Operational Excellence (OE)1 projects,we recycled/reused 571,897 m3 of water in Turkey,Kazakhstan, Pakistan and Jordan.

We collected 1,500 m3 rain water in Izmir and5,000 m3 in the Kazakhstan Plant with rain waterharvesting project.

We established a central Occupational Health andSafety (OHS) organization and conducted situationanalysis with regard to health & safety in all officesand factories in Turkey.

We provided130,915 hours of training to a total of18,826 employees in Turkey, Azerbaijan, Kazakhstan,Jordan and Pakistan.

Energy consumption rate in the Turkey Operationwas 0.255 MJ/L.

CCI was chosen as one of the five Carbon DisclosureLeaders in Turkey by the Carbon Disclosure Project.

We achieved energy savings of121,903,311 kWh due to investments in coolers that do not use Hydro-Fluoro-Carbon (HFC) and10,447,999 kWh as aresult of Operational Excellence (OE) performancesin the Turkey, Azerbaijan, Jordan, Kazakhstan andPakistan operations in 2011.

We provided over1,500 employees with EverythingYou Wanted to Know about Coca-Cola training andinformed these employees about our productionprocesses and the ingredients of our products.

7 factories in Turkey and our Jordan factoryachievedFSSC 22000 Food Safety Certificate.

We took action in the first 24 hours through Kzlayand supplied drinking water for victims of theVan earthquake in Turkey. Then we continued oursupport with drinking water, clothes and cash with thecontribution from our employees and the Coca-Colafoundation.

We sponsored the Under-13 League & SchoolBoys Cup in accordance with our partnership withthe Azerbaijan Football Federation for 5 years.

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1994: TCCC (The Coca-Cola Company)

water usage savings commitment 1997: First ISO 9001 Quality Certificate and

Certificate of Compliance TCCQS (Mersin Plant)

2002: First Environmental Policy

2002: First ISO 14001 Environmental ManagementSystem Document (Ankara Plant)

2003: Coca-Cola Eurasia Africa GroupPresidency Quality Award (Ankara Plant)

2003: First OHSAS 18001 Occupational Health andSafety Management System Certificate (Ankara Plant)

2004: First HACCP TS 13001 Food SafetyQuality Management System (Izmir Plant)

2006: ISO 22000 Food Safety QualityManagement System (Ankara Plant)

2007: 6 Sigma Projects

2007: The Fifth place in AccountabilityRating in Turkey

2008: Establishment of Corporate Governance Committee

2008:The first GRI approved CSR report in Turkey

2009: First Place in Accountability Rating in Turkey

2009: Corporate Governance Rating 8.3/10

2009: Establishment of SustainabilityCouncil and Work group

2009: Sustainability Management Approach

2009: Signing United Nations Global Compact

2009: Signing Copenhagen Communiqu withregard to combating climate change

2009: First PAS 220: 2008 Food Safety

pre-requisite program document (orlu Plant)

2010: Defining 2020 Vision and Strategic Framework

CCI Journey of Sustainability

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2010: TCCC Eurasia & Africa Group President's

Environmental Award (Izmir Plant)2010: TCCC Eurasia & Africa Group Environment Award

for Best Country Bottling Operations (CCI)

2010: KalDer National Quality AchievementAward (Ankara Plant)

2010: Second CSR Report: Turkeys first B-Levelreport in the scope of Turkey, Kazakhstan, and Jordan

2010: Signing the Cancun Communiqu againstclimate change


2011: KalDer National Quality Award(Ankara Plant)

2011: First FSSC 22000 Certificate (Izmir Plant)

2011: First ISO 50001 Energy ManagementSystem Certification (orlu Plant)

2011: The first third of the category of MostInnovative Company of the Year Stevie'sAwards (CCI)

2011: Worldstar 2011-2011 Award and the24th TSE Golden Package Award

2011: Occupational Health and safetyManagement Award (CCI Jordan)


2011: 3. CSR Report: Turkey, Kazakhstan, Jordan,and Azerbaijan are included in the scope of the report

2011: Climate Platform Membership

2011: CCI, Climate Platform - Charter Member of the ClimateChange Leaders Group

2011: The first food company to participate in theCarbon Disclosure Project and one of the five leading companies

2011: Signing the 2 Communiqu against climate change

CDP Trkiye-100 Raporu 2011

71 trilyon dolar deerindekivarl yneten 551 kurumsalyatrmc adna

CDPTrkiyeOrta RaporSponsoruSponsor

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CCIs Operating GeographyCCI Plant

CCI at a Glance

Per Capita SparklingPercentage of Sparkling Beverage

Population GNP per Beverage Market Population in Under 30 Capita ($) Consumption Share of CCI (millions)(2) (2011)(2) (2011)(3) (L) (2011)(4) (2011)(5)Turkey 74.7(1) 52% 10,576 45 70%Pakistan 177.8 65% 1,164 12 28%Kazakhstan 16.4 51% 10,951 32 37%

Azerbaijan 9.4 50% 7,510 29 57%Turkmenistan 5.1 59% 4,362 38 -Kyrgyzstan 5.4 61% 970 16 -Tacikistan 7.0 68% 862 7 -Jordan 6.4 67% 4,542 50 -Syria 20.9 65% 3,050 17 -Iraq 32.8 70% 3,306 23 -

Source: (1) TK,(2) BM,(3) IMF,(4) CCI Estimate,(5) NIELSEN

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10 Countries20 Factories

9,000 Employees

360 Million Consumers1,154 Million Production Capacity

720,000 Sales Points

* CCI exports to the Tajikistan market.

Sales Volume

Sales Volume Increase 14.5%

10.6%

25.7%

14.5%

494.4

665.4

171.0

546.8

761.7

215.0

Sales Volume Distribution of International Operations

2011

Azerbaijan15%

Pakistan31%

Syria 1%Iraq 11%

Turkmenistan 6%

Jordan 6%

Kyrgyzstan5%

Kazakhstan 25%

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Detailed information about our brands, operations andthe countries we operate is available at:http://www.cci.com.tr/tr/bizi-taniyin/kapsadigimiz-cografya

CCI is the 6th largest bottler in the Coca Cola Systemworldwide in terms of sales volume. CCIs corebusiness is to produce, sell and distribute sparklingand still beverages of The Coca Cola Company (TCCC).CCI employs close to 9,000 people and has operationsin ten countries. CCIs shares are traded on theIstanbul Stock Exchange under the CCOLA.IS ticker.

You can visit:http://cci.com.tr/tr/yatirimci-iliskileri/bir-bakista-cci to obtain detailed information aboutour affiliates and partnership structure.

Distribution of Products Operations

TURKEY KAZAKHSTAN JORDAN AZERBAIJANCoca-Cola Coca-Cola Coca-Cola Coca-ColaCoca-Cola Zero Coca-Cola Zero Coca-Cola Light Coca-Cola LightCoca-Cola Light Coca-Cola Light Fanta FantaFanta Fanta Sprite SpriteSprite Sprite Cappy BonAquaSenSun Piko Arwa Fuse Tea

Schweppes Fuse Tea BurnCappy Schweppes CappyDamla BonAquaPowerade CappyFuse TeaBurnGladiatorDoadan

Turkey Market Shares (2011)

2011 RankingSparkling Beverages 70% 1Water 9% 2Fruit Juices & Nectars 25% 1

Sparkling Beverages Market Sales

2011 Ranking

Kazakhstan 37% 1Azerbaijan 57% 1Pakistan 28% 2Turkmenistan - 1*Kyrgyzstan - 1*

Source: Nielsen, * CCI Estimate

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Corporate Social Responsibility ApproachThe CCI Sustainability Working Group operates withthe participation of all CCI Function Heads and playsa critical role in making sure that sustainabilitymanagement is connected to field operations andthe upper level management structure. The strategicorientation and objectives that emerge from upperlevel management processes are conveyed tofunctional management by the Work Group in orderto be transformed into field applications. The workgroup provides feedback to upper level management

and develops performance communication practicessuch as a CSR report for internal and externalstakeholders. The fundamental role of the CCISustainability Work Group is to identify sustainabilitypriorities and key stakeholder groups.

At the Sustainability Work Group Meeting in thisreporting period, participants from inside andoutside the company gave presentations, evaluatedwhere CCI stands today in terms of sustainability,and discussed work completed throughout the

industry. During the meeting, a self-assessmentwas performed with regard to CCI sustainabilitystrategy and implementations. The most importantsustainability goal our internal stakeholders wereconcerned about was that the CCI sustainabilitymanagement model is a leader in both the sector andthe business world.

At the workshop to state improvement needsand their effects on CCI, short, medium andlong-term targets related to CCI sustainabilitypriorities were designated and relevant actionplans were developed. The main topics identifiedfor improvement were occupational healthand safety, road and driving safety, communityinvestments, risk management and internal audit,preserving water resources, and sustainableprocurement and reducing carbon emissions dueto fleet transportation and business travel. Weplan to initiate improvement studies pertaining tothese topics during the 2012/2013 period and tosubmit them for our stakeholders perusal throughpublished reports.

Our most important responsibility is to fulfill theexpectations of our stakeholders and to continuouslyimprove our social, environmental, and economicalperformance while ensuring the sustainability andoperational success of our company. The CorporateSocial Responsibility (CSR) approach is our mainguiding principle in this matter. We evaluate all of ouroperations and their impacts on the 10 countries, inwhich we operate, while considering social, economic,ethical and environmental impacts.

CCI accepts 10 principles of the UN Global Compact,which outlines business principles for companiesin social, economic and environmental areas. Inthis context, we evaluate performance results andexpectations of stakeholders, define our priorities anddetermine improvement targets in conformity with ourCSR approach that aims at continuous improvement.

As in all operational processes throughout ourcompany, corporate social responsibility is managedtogether with our main working strategy. Thereby, itis aimed to effectively deploy the CSR concept fromupper level management implementations to all fieldoperations. Our corporate sustainability organizationperforms a very important function in implementationof our sustainability model formed in line with ourCSR approach. Information about our corporatesustainability organization is available at

www.cci.com.tr.

The CCI Board of Directors, Corporate GovernanceCommittee is responsible for the approval of oursustainability strategy and performance monitoring.This responsibility is undertaken by the CCISustainably Committee, headed by the CEO, andcomprised of senior management. The fundamentalrole of the Sustainability Committee is to identifylong-term sustainability targets and set sustainability

criteria.

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As CCI identifiessustainability prioritiesand long-term objectivesas part of the globalCoca-Cola System,CCI also takes into

account the sustainabilitypriorities identifiedby TCCC.The necessary coordination is ensured by meetingsthat are attended by senior CCI and TCCC executives.In 2010, CCI formulated its 2020 Vision and thefundamental principles of this framework in parallel.For all CCIs operations and implementations, wedetermined five main topics of our vision and aimed atbeing a leading and model company for the businessworld, stakeholders and the Coca-Cola System as

People and Organizational Leadership," CommercialLeadership," Supply Chain, Operational Excellenceand Sustainability." CCI determined our sustainabilityapproach so as to ensure the long-term viabilityof our business by being proactive and innovative inenvironmental protection and to be recognized asone of the most responsible corporate citizens by allstakeholders." We remain in line with TCCCs LifePlus framework and have established our prioritysustainability performance areas.

The fundamental objective of the Life Plus strategicframework is to provide all of the sustainabilityprograms in the system with an integrated structureand visibility. This framework consists of TCCCssustainability priorities, defined under the pillarsof Marketplace, Workplace, Environment andCommunity. In this report, we shared all componentsof the CCI Life Plus Sustainability Framework underthe titles of energy management, water management,sustainable packaging, workplace, productresponsibility and community.


EmployeeRights

EconomicDevelopment

EnergyManagementand ClimateProtection

SustainablePackaging

WaterManagement

SocialDevelopment

ProductionProcesses

OurValueChain

ConsumersSupplier

Audits

PreferredWork- place

EmployeeEngagement

and InternalCommunication

OccupationalHealth and

Safety

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ENERGY MANAGEMENT AND CLIMATEPROTECTION

We aim to reduce the amount of energy we

consume, to minimize our carbon footprint,to be a leading company in climate protectionwhile working with community, universitiesand local governments.

WATER MANAGEMENT

A key business strategy is basedon establishing a sustainable watermanagement model and minimizing ourwater footprint, while also reducing theamount of water we consume per product inall operation fields.

SUSTAINABLE PACKAGING

We aim to minimize the environmentalimpact of packaging and increase recycledmaterials use.

WORKPLACE

We aim to provide a fair and safe workingenvironment for employees while

implementing projects and programsthat support personal and professionaldevelopment.

PRODUCT RESPONSIBILITY

We aim to form our purchase, productionand marketing practices with a sustainablecorporate governance perception, creatingsurplus value for our entire value chain.

COMMUNITY

We aim to support sustainable developmentin communities where we operate andcontribute to the welfare of the society.

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Stakeholder engagementconstitutes one of themain objectives of oursustainability concept.While targeting thedevelopment of long-termrelationships with strongfoundations through positiveand solution-orienteddialogues, we work to buildup a democratic base withwhich our stakeholderscan participate in the

management of businessimplementations andinfluence the businessoperations of the company.

We conduct our stakeholder engagement effortswithin the framework of international principles andsystem applications. Therefore, we prefer to usethe stakeholder engagement principles and toolsrecommended by the AA1000SES Standard in ourpractices. CCIs areas of high priority sustainabilityperformance, forming the basis of stakeholderengagement efforts, include reciprocal dialogues, joint initiatives, and stakeholder panels. The followingchapters of this report will explore the formulationof practices to meet stakeholder expectations in thebroadest possible fashion and produce comprehensivesolutions using a holistic perspective on theirproblems.

The CCI Sustainability Working Group isresponsible for identifying key stakeholders anddevising engagement plans. Related planning andimplementation processes are constantly updated.Detailed information related to our corporatestakeholder map, participation, and dialogueplatforms with our stakeholders can be accessed viathe annual report on our corporate website.

CCI enriches our stakeholder engagementimplementations via both voluntarily undertakenmemberships and industrial association and unionmemberships. CCI is a part of voluntary undertakingssuch as the Turkish Climate Platform - TurkishClimate Change Leaders Group, the United NationsGlobal Compact and the 2 Degree Communiqu.Additionally, CCI actively participates in a numberof associations and unions such as EVKO, TSAD,YASED, TABA, KALDER, DEK, SUDER, MEYED, TED,TYD, TOBB, MEDER, TGDF and Marka KorumaGrubu (Brand Protection Group).

Stakeholder Engagement


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CCI sustainability management, formulated withthe corporate social responsibility approach, issupported by the CCI corporate management culture.This culture is based on the principles of fairness,transparency, accountability and responsibility. It aimsto foster open communication with all stakeholderswho are within its area of impact throughout itsoperational geography.

Detailed information regarding shareholderrelations, information disclosure policy, duties andresponsibilities of the Board of Directors and itscommittees and the issues of Risk Managementand Internal Audit, is available in the CorporateGovernance Compliance Report published at ourcorporate website (www.cci.com.tr).

In 2011, as in every year, CCI demonstrated its

commitment to the principles of corporate governancewith the evaluation of a third party institution. OurCorporate Governance Rating rose from 8.43 to 8.5 outof 10. We also intend to maintain our steady upwardtrend, which is evidence of the importance CCI placeson corporate governance principles and the successof our implementations based on the improvements itmakes in this area in the coming years.

During the reporting period, according to the resultsof the 3rd Turkish Investor Relations Awardsconducted by Acclaro and Thomson Reuters ExtelSurvey, which aims to rate excellence in governancerelations, the CFO of Coca-Cola ecek wasawarded Turkeys best CFO." Additionally, CCI wasnominated for 6 awards, including third place in theBest Annual Report category.

CCIs Business Code of Ethics (Code of Ethics) isextremely important for the continuity of sustainabilitymanagement implementations and the properimplementation of corporate governance principlesacross our operational geography. In the Code ofEthics, our values, responsibilities and actions to betaken in the event of possible conflicts of interests andresponsibilities of our employees are meticulouslydefined.

CCI organizes regular meetings together with allsales offices, factories and central offices to informemployees about the Code of Ethics. These meetingsare carried out by representatives from the InternalAudit and Legal Departments, supported by theHuman Resources Department. CCI plans to organizeCode of Ethics informational meetings, includinglocal cases, to all international operations during

2012 and in the following years. In addition to theseapplications, CCI aims to publish a revised Code ofEthics, to establish a complaint reporting systemabout related subjects and to form a report linewithin the context of the Code of Ethics InformationProgram in 2012.

In order to prevent corruption and apply ethics, allCCI employees are informed about the Code of Ethics,must sign and attest that they have read and agreedto the related rules.

The CCI Code of Ethics is available athttp://cci.com.tr/tr/yatirimci-iliskileri/kurumsal-yonetim/is-etigi-kodu/.

Corporate Governance

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The Internal Audit Department, and compliance of thesystem with the company standards, is audited onceevery five years by an independent organization.

In all projects supporting our companys 2020 vision,the Internal Audit Department plans to provide adviceand assurance in the fields of risk management,control and corporate management to the relevantmanagement levels. CCI also has future plans tolaunch an effective, reliable and sustainable regionalInternal Audit Process.

Business ContinuityWe use the Incident Management and CrisisResolution (IMCR) Program which is a part of TCCCsGlobal Asset Protection Strategy, to administer ourentire system from a single point and to create acorporate long-term memory where our processesare stored. Thus, we assure our business continuityagainst exceptional circumstances such as data loss

or other issues that may occur. Set as a target in lastyears report, we installed the program in 7 countries.Validation of the program was achieved in all 7countries in 2011. Together with the implementationof the program in Turkmenistan, the number ofcountries covered by the program will be increased to8 in 2012.

Supply Chain and Financial ERP System (SAP),Commercial Practices System (BASIS), MobileSystems, Reporting and Decision Supporting Systems,as well as IMCR, are used in the Istanbul Data Center,managed by IBM. The Disaster Recovery Center wasestablished outside the city so that it would be ableto take action in case of emergency and to ensurebusiness continuity. It was restructured in line withinternational standards during the reporting period.Consequently, this center, which records data frominternational operations, is now capable of providing,within 24 hours, data service to a maximum of theprevious 72 hours of data. In addition, the FinancialERP system used in our Pakistan operations wasestablished in the related region and is backed up by aDisaster Recovery Center in another city.

The Internal Audit Department, which is alsoconsidered to be the insurance of corporategovernance, unless otherwise specified by theAudit Committee, covers all company activities andprovides assurance to Senior Management about theappropriateness and effectiveness of internal auditsystems formed to achieve the targets. The InternalAudit Department provides advice regarding issuesconcerning risk management, control and ethics tothe relevant management levels, when necessary.In this context, the Internal Audit Department is alsoresponsible for risk assessment, Code of EthicsAwareness Training, violation investigations and thespecial demands of management.

The CCI Internal Audit Department overviewsinternal control systems in all process audits. Whileevaluating the risks that may result in bribery orcorruption and may affect the company's reputation,and all other operational and financial risks duringthese processes, this department determines thecontrols intended to eliminate these risks, and auditsthe effectiveness and appropriateness of thesecontrols. For this reason, processes for internationaloperations are reviewed each year and domesticoperations are completely reviewed every 3 years. Allinternational and domestic operations were auditedaccording to the audit plan in 2011.


CCI won the Internal AuditingQuality Assurance award by TIDE,within the context of the InternalAuditing Awareness Awards.These awards were designed tohelp internal audit implementationsmeet international standardsand attain excellencelevels in Turkey.

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Effectively managing the environmental impact ofour activities, and accordingly signing exemplaryenvironmentally friendly implementations for oursector and the Coca-Cola System, are the mostimportant principles that guide us on our journeyof sustainability. CCIs three primary focus areaswith regard to the management of its environmentalimpacts are, Water Management, SustainablePackaging and Energy Efficiency and ClimateProtection." We aim to minimize water consumption

in our operations, control our carbon footprint witheffective energy consumption and to preserve naturalresources with our sustainable packaging processesand high waste management performances.

In all of our operations;

We carefully monitor our environmental impactand target a performance that exceeds legalrequirements.

We conduct operations by respecting theenvironment and considering the value of theresources that future generations will need.

We believe that minimizing our impact on theenvironment is a requirement to conduct business inthe best way possible.

We place the issue of water usage, which isfundamental to our business, at the heart of our

environmental policy and aim to be an exemplarycompany in this regard.

We prioritize energy efficiency in every area ofour operations, from supply to production and fromdistribution to sale, measure our carbon footprint andtake the necessary measures to reduce it.

We implement processes to reduce the consumptionof resources by increasing reuse and recycling.

We aim to dispose of the waste generated from ouroperations preventing pollution.

We develop environmental awareness in ourworkplace and we aim to create the same awarenessin all stakeholders through joint projects andinitiatives.

We comply with legal environmental requirements,environmental and energy management systemsand TCCC standards and we accept best industrialpractices where possible. We pay attention to fulfillingthe expectations of stakeholders while accepting highstandards to protect the environment as a responsibleworld citizen.

As part of our 2020 vision, our performance goalsregarding water, energy and solid waste recyclingrate, which form the basis of our environmentalapproach, are illustrated below:

Our Environmental Approach

2012 and 2020 Environmental Goals

Turkey Jordan Azerbaijan Kazakhstan 2012 2020 2012 2020 2012 2020 2012 2020

Solid Waste Recycling Ratio (%) 95 98 89 95 94 98 90 96

Water Consumption Ratio (L/L) 1.40 1.20 1.85 1.50 1.78 1.40 1.65 1.25

Energy Consumption Ratio (MJ/L) 0.24 0.23 0.39 0.35 0.34 0.30 0.32 0.24

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EnergyManagementand ClimateProtection

CCIs climate change strategy is to fulfill ourresponsibilities working with internationalcompanies and society, in addition to our effortsto reduce our operational greenhouse gasemissions. At CCI, we focus on meeting ourgrowth targets without increasing our carbonfootprint. While continuing innovative projectsand clean technology investments initiated toreach our goal of reducing energy consumptionas part of our energy management system, wetry to expand our system establishment studiesand our efficient practices to other country

operations.Ali Hrolu - CCI SupplierChain Services Director

18

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We achieved 121,102 kWh energy consumption and58,120.4 kg CO2 emissions reduction with green IT projectsincluding server consolidation, server virtualization,distribution optimization, imprint and display. CCI participated in the Carbon Disclosure Project (CDP) in2011 as the first company in the Turkish food and beverageindustry and became one of the five Carbon DisclosureLeaders. The orlu, Izmir, and Elaz plants, respectively, becamethe first CCI plants in Turkey to obtain the ISO 50001 EnergyManagement Certificate. CCI orlu plant was the firstplant in the Istanbul region to obtain the ISO 50001 EnergyManagement Certificate, and the second in Turkey.

Analysis of 2011 Performance ResultsThe reflections of Operational Excellence (OE) projectson 2011 performance indicators, relating to energyconsumptions at production lines and equipment performedin Turkey and Kazakhstan in 2011, were reviewed.Accordingly, improvement projects reduced the energyconsumption rate per liter of product by 4% in Turkey, andby 7% in Kazakhstan. The reasons for the increase in energyconsumptions per liter of product that were realized in 2011despite the improvements were analyzed:

Establishment of new production lines: There areefficiency reductions during trial operations and start-up periods of new products. Establishment of tunnel

pasteurization and hot fill lines in Bursa; trial productionand hotfill lines in Kazakhstan and PET bottle lines inAnkara and Elaz are regarded as some examples. Increase in aseptic fruit juice productions. Increase in energy consumption due to crystal sugar usage.

2012 Targets We aim to start to monitor CO2 emissions caused bybusiness travel in 2013. We aim to achieve energy consumption per liter of productproduced in 2012 as 0.24 MJ/L in our Turkey operation, 0.39MJ/L in the Jordan operation, 0.32 MJ/L in the Kazakhstanoperation and 0.34 MJ/L in the Azerbaijan operation. We aim to launch the project reducing the pressure inPET bottle blowing operations first in Izmir and aim tospread the practice throughout all CCI operations in Turkeyand in other countries. We aim to reduce our energy consumption by implementingthe Lightweight (packaging weight reduction) Project inother country operations during 2012-2013. In 2012, we aim to assure that 100% of the CCI Turkeyoperation possesses the energy management systemcertificate when the Ankara, Mersin, Sapanca, Bursa, andKyceiz plants obtain the ISO 50001 Energy ManagementSystem Certificate.

Energy management and climate protectionare the priorities of CCIs sustainabilitystrategy. We continue working towardsincreasing energy efficiency and reducingemission rates in order to minimizeour environmental impact. With theawareness of our responsibility to reduceCO2 emissions generated as a resultof the consumption of non-renewableenergy sources, we do not considerenergy efficiency and climate protectionperformances as separate concepts andwe aim for continuous improvement in thisfield.

2011 Targets

To establish the CCI Environmental Management Unit ofTurkey. To achieve energy consumption per liter of productproduced in 2011 of 0.216 MJ/L in our Turkey operation, 0.47MJ/L in the Jordan operation, 0.34 MJ/L in the Kazakhstanoperation and 0.23 MJ/L in the Azerbaijan operation. To reduce CO2 emissions per liter of product produced to6.2% in our Turkey operation, 8% in the Jordan operation,7.3% in the Kazakhstan operation and 8.6% in the Azerbaijanoperation. To reduce energy consumption and CO2 emissions withGreen IT applications. To participate in the Carbon Disclosure Project Turkeyin 2011 and disclose our carbon emissions and climateprotection policies.

What we Achieved

We established the CCI Environmental Management Unitof Turkey at the beginning of 2011. We achieved energy consumption per liter of productproduced in 2011 of 0.255 MJ/L in our Turkey operations,0.455 MJ/L in the Jordan operation, 0.333 MJ/L in theKazakhstan operation and 0.222 MJ/L in the Azerbaijanoperation.3 CO2 emissions g per liter of product decreased by22.66% in the Jordan operation, 13.08% in the Kazakhstanoperation, 7.66% in the Azerbaijan operation and increasedby 3.97% in our Turkey operation.4,5,6

3 Energy Consumption Rate refers to the energy consumed during the core bottling operation and excludes consumption from preform injection and

CO2 production.4 CO2 emissions rate refers to all production processes.5 CO2 emissions rates were calculated by using indirect energy CO2 emissions conversion factors defined annually by the International EnergyAgency. The results obtained influence the determination factors which are revised annually. For example, the conversion factor used for Azerbaijanincreased 6.47% compared to last years factor.6 2010 - 2011 CO2 conversion factors are available in the Performance Indicators Section, p 72.

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20 Energy Management and Climate Protection

Climate Protection and EmissionManagement

According to scientific and economic evidence,risks caused by climate change causes majorsocioeconomic, and environmental effects, whilethreatening earths future global welfare. Its onlypossible to minimize these costs with a transition to alow carbon economy.

CCI is aware of the risks created by climate change onthe sustainability of energy, agricultural products andwater resources. Detailed evaluations relevant to thistopic are available in our report released within thecontext of the 2011 Carbon Disclosure Project.(www.cdproject.net)

The climate protection approach is one of thepriorities of our sustainability strategy. We havedetermined that this approach both minimizes climatechange risks and leads to low carbon economy

transition in our operational geography.

We always aim to be proactive and innovative inthe face of hazards created by climate change. Thefocuses of our strategy are;

To increase the energy efficiency in our plants andoffices. To reduce logistics based emissions with effectivefleet and fuel management. To reduce indirect emissions by focusing on our

climate friendly refrigeration applications. To increase awareness on climate protection bycollaborating with stakeholders.

As a proof of CCIs sensibility on sustainability,accountability and transparency, we share ourenergy consumption rates, measured by usingverifiable techniques, within the context of our energymanagement system and CO2 emissions ratesmeasured using conversion factors released by theInternational Energy Agency, with our stakeholders.

At CCI, while informing our stakeholders directlyabout these assets; we aim to be a model companyparticipating in voluntary undertakings launched inclimate protection.

CCI was named among the five CarbonDisclosure Leaders of Turkey

In 2011, CCI became the first company from thefood and beverage sector in Turkey to be includedin the Carbon Disclosure Project (CDP). CCI wasnamed among the five carbon disclosure leaders inTurkey alongside the largest banks, communicationand energy companies, obtaining a total disclosurescore over 70. This score was awarded as a resultof an evaluation in the first CDP Turkey-100 Report,published after a survey by Ernst & Young among theIstanbul Stock Exchange 100 companies in November2011.

CCI Turkey signed the 2C Communiqu

CCI strongly supports efforts to develop an effective,robust, and egalitarian global activity plan with regardto climate change. CCI signed the 2C ChallengeCommuniqu after the Copenhagen and CancunDeclarations signed in 2009 and 2010 respectively.Developed by the private sector in 2011, the 2CChallenge Communiqu is the fifth such declarationon climate change, and highlights the progressive anddecisive stance of the international business world onthis issue.

CDP Trkiye-100 Raporu 2011

71 trilyon dolar deerindekivarl yneten 551 kurumsalyatrmcadna

CDPTrkiyeOrta RaporSponsoruSponsor

46,56

78,67

28,3649,4449,4656,03

30,10

20062005 2007 2008 2009 2010 2011

TrkiyerdnKazakistanAzerbaycan

161,57

CO2 Emissions (g/L)

46.56

78.67

28.3649.4449.4656.03

30.10

20062005 2007 2008 2009 2010 2011

TurkeyJordanKazakhstanAzerbaijan

161.57

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Reducing material consumption and waste output,and recycling and recycled material usage, are themain elements of CCIs climate change combatstrategy. We conduct research and developmentstudies to improve our CO2 emissions processperformances, and strive to reduce our environmentalfootprint with hi-tech applications. We aim to maintainCO2 emissions at the same level while raising ourvolumes, and we have obtained exceptional results forthe entire Coca-Cola System with implementations inthis field in Turkey.

Energy Management

CCI carries out different projects while systematicallyevaluating and implementing energy effectivenessopportunities in our operations. Our energymanagement policy is based on achieving the greatestamount of production with the least amount of energy.We aim to reduce the amount of energy we consumein production, distribution and cooling processes,which constitute the bulk of our energy consumption,by pursuing improvement measures, and at the sametime enhancing quality.

Energy consumption and related processes aremanaged together with the CCI EnvironmentManagement System, as part of the CCI energymanagement system, Operational Excellence (OE)model, and key performance indicators of corporatebusiness plans. Related performance resultsare monitored and evaluated regularly by seniormanagement. Energy coordinators were assigned toadminister the energy management system effectivelyin all Turkey plants. The Izmir, orlu, and Elazplants passed the audits and obtained the ISO 50001Energy Management Systems certificate. In 2012,we aim to obtain this certificate for all of our Turkishplants.

As part of Operational Excellence (OE)practices in all country operations, wecontinue to obtain positive results in termsof energy efficiency:

In the Kazakhstan operation, with a project gearedtowards usage of steam generated in electricitygeneration area in low season, we succeeded inreducing energy consumption from 0.89 MJ/L to 0.86MJ/L in the hot filling processes and from 0.22 MJ/Lto 0.21 MJ/L in other processes.

In Azerbaijan, we secured a reduction in dieselfuel consumption and improved the preform (PETbottle) production process, both of which produce CO2 emissions, in order to obtain results in 2012.

In Pakistan, within the context of OperationalExcellence projects, we achieved a total savingsof 1,042,848 kWh of energy with projects such asblowing pressure optimization, raising the filling heat

of cooling weight in Sidel lines and elimination of hotregenerated air from injection machines.

We reduced our fuel consumption by 20% with theJordan Electrical Forklift Project.

0,33

Energy Consumption Ratio* (MJ/L)

1.69

2005 2006 2007 20092008 2010 2011

0.4550.333

0.2220.2550.28

0.27

0.33

Turkey

JordanKazakhstan

Azerbaijan

* Kazakhstan belongs to the years of 2009-2011 data.

Least Environmental Effect

CCI Energy Management Approach

Reducing thePET Bottle BlowingPressure

Lightweight OE Projects

Reduction at

Source

UtilizingProcess Heatand SteamRecycling

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22

We Enhanced Our PET Bottle BlowingProcesses and Now We Consume LessEnergy

We continued improvements with regard to PETbottle blowing process in 2011, which was firstlaunched in the Izmir plant in 2009. The overallpressure was lowered from 35 bars to 17 bars inthis extent. As a result of the improvements made

between 2008 and 2011, the Izmir plant achievedenergy savings of 5,514,857 kWh and prevented therelease of 2,416 tons of CO2 gases, based on 2007values. The Izmir plant managed to blow 200 ml PETbottles with a pressure of 10 bars in November 2011.In 2010, this project was recognized as the Best

Project Implemented in the Coca-Cola System andstarted to be applied in all plants. With this project,we automatized the compressor selection andreduced the blowing pressure by optimizing heatingand cooling temperatures, activating the air recoverysystem and writing software for minimum functionsof air conveyors. In this way, CCI formed a systemthat consumes less electricity without lowering ourproduct quality. CCI achieved a total energy savings of8,245,473 kWh and emissions reduction of 3,818 tonsof CO2 as part of this project launched in the orlu,Ankara, Bursa, Mersin and Sapanca plants as well asIzmir between 2008 and 2011. The project also startedto be implemented in the Elaz and Kyceiz plants.The savings by years are illustrated below:

CO2 EmissionsSavings (kWh) Savings (ton)

2008 4,348,728 1,9062009 566,425 2712010 2,805,451 1,3892011 524,869 252Total 8,245,473 3,818

The above values were calculated according to theprevious years parameters. We started to implementthe PET bottle blowing pressure optimization processin our other country operations. During 2011, as aresult of the implementation of this project in Turkey,Jordan, Kazakhstan and Pakistan operations, weachieved a total savings of 1,974,270 kWh energy anda reduction of 960 tons of CO2 emissions as total.

2011 Pet Bottle Blowing Pressure OptimizationProject Savings in Operations

Countries Savings (kWh) CO2 (ton)Kazakhstan 670,000 322Jordan 235,872 137Pakistan 543,529 249Turkey 524,869 252Total 1,974,270 960

As a result of the improvements employed during2006-2011 in the Turkey operation, we improvedenergy consumption by 42.6% per 1 PET bottleblowing, reducing it from 0.037 kWh to 0.021 kWh.

We Consume Less Energy as a Result of OurEnergy Efficiency Implementations

In 2011, we saved a total of 10.5 million kWh of energyas a result of energy efficiency projects in all of ouroperations in Turkey, Kazakhstan, Jordan, Azerbaijanand Pakistan.

Energy Consumption Improvements between2005-2011 (MJ/L)

2005

2011

Turkey

0,274

6.93%73.1%

16.8% 20.7%

0,4000,2800,255 0,333 0,222

1,690

0,455

Jordan AzerbaijanKazakhstan


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In 2011, as a result of OE projects implemented in CCI Turkey plants we achieved app6,951,147 kWh savings in energy consumption and 3,336 tons of reduction in CO2 gas emission.

Energy Efficiency Projects in 2011

CCI launched and implemented OE, and a numberof innovative projects which competed in the CCIInventor Competition in 2011. CCI achieved totalenergy savings of 6,951,147 kWh as a result ofimprovement processes such as using more efficient

reflectors and refractors for bottle blowing machines,establishing an automation system to turn off ovenlights during pauses, and using CO2 pyrolysis forcooling in the Ankara plant; improving electricityconsumption in aseptic and bottle blowing processesin the orlu plant; lowering the temperatures ofthe packaging oven and glass line washing process,and insulated cap implementation on packagingmachines in the Izmir plant; providing washingmachine insulation, changing blower, conveyor andvacuum pumps, savings of CO2 gassing evaporator,automation of line-3 conveyor fan, and deactivationof blowers in the Mersin plant; renovation of pipeinsulation, economizer, and revision of coolingsystems in the Bursa plant; lowering PET bottleblowing pressure, adjusting packaging temperatures,transition to the 2 cooling system, and optimization ofmaterial warehouse layout to reduce material transferservices in the Sapanca plant; and lowering the PETbottle blowing pressure in the Elaz plant.

In 2011, within the context of OE, CCI energyefficiency studies were continued swiftly in allother country operations. We provided an energysavings of 1,042,848 kWh in our Pakistan operation

by the elimination of hot regenerated air in injectionprocesses, optimizing the air blower pressure, aircurtain, and operating coding machines (4 lines)efficiently. In our Kazakhstan plant 1,707,542 kWh ofenergy was saved by optimizing PET bottle blowingpressure, lowering the operation temperatureof the blowing machine tunnel during the coldseasons, efficient operation of optimized dryers onthe aluminum can lines, efficient usage of steam inelectricity production area during the cold seasons,and automatic shut-down of compressed air in candryer. 529,872 kWh was saved in our Jordan plant

by the optimization of PET bottle blowing pressure,reusing the air used in the blowing process,increasing the efficiency of energy consumption of thecompressor by using a speed changer 216,590 kWhwas saved in Azerbaijan plant by the cooling energysavings by increasing the filling temperature andimprovements in lighting systems at plant territory.

We prefer low carbon technologies to

reduce our carbon footprint to support our

climate change strategy. In this scope,

our Kazakhstan Plant opened its firstco-generation unit in 2005. Co-generation

plants generate power, using natural gas,

recovering the generated heat energy in

heating and cooling instead of wasting as

done in conventional power plants. In 2011

we achieved 13% savings in natural gas

consumption for CO2 production due to the

import of flue gas from power plant which is

equal to 321 tons.

CCI Kazakhstan Plant Co-generation Unit

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24

In 2011, with all OE projects mentioned above, we hadan energy consumption improvement of around 10,5million kWh in Turkey, Pakistan, Kazakhstan, Jordanand Azerbaijan operations. This number correspondsto a decrease of approximately 5000 tons of CO2 emissions.

In 2012, we aim to further reduce energy consumptionto a minimum of 3 million kWh in Kazakhstan,Pakistan, Jordan and Azerbaijan operationswith projects such as, efficient operations of the

wastewater treatment plant blowers, lowering theoperation temperatures of blowing machines athot filling lines, optimization of PET bottle blowingpressures, isolation of cooling lines, optimizationof pumps, efficient usage of speed changers andcompressor units, efficient usage of pressureconvertors and cooling tower fans, optimization ofoperation periods of well pumps, increasing thenumber of environmental friendly coolers, reducingthe energy consumption at preform production and airconveyors, and daylight utilizations in factory buildingsand lighting improvements.

It was possible to blow 27.31 bottles with 1 kWhenergy in 2006. A 42.6% improvement raised thisnumber to 47.58 bottles in 2011.

* Numbers refer to Turkey operation.

CCI Invention / Innovation Competition

"The CCI Innovation Competition" is aimed to spreada culture of innovation and sustainability amongemployees and to ensure that they are more efficientusing less resources. The competition has instigated517 projects since 2008, and 119 of these projectswere received during 2011.

The Ankara Plant, with their innovation projectEstablishment of Number 5 Production Line, solelyused the available systems in hand without buying anynew equipment or machinery. The project won firstprize in the 2011 Invention/Innovation Competition."

The Mersin Plant, with their innovation projectRunner (Automated Pallet Carrier), aimedto transfer tetra packages to the warehouseautomatically while reducing forklift traffic. Theimplementation led to lighter forklift traffic, a twothirds reduction in LPG usage (from 15,900 kg/year to5,300 kg/year), greatly reduced occupational accidentrisk, and a fall in CO2 emissions of 59,000 kg/year. Theproject won the second prize in the 2011 Invention/Innovation Competition."

The Ankara plants innovation project Preform BagBox Minimization brought about material savingsby reducing the weight of bags used in preformboxes from 440 grams to 240 grams. With thisimplementation, solid waste savings came in at 30,391kg/year. This project won the third prize in the 2011Invention/Innovation Competition."

The Mersin Plant won the first prize with Line-4Palletizer Capacity Increase project in the

replication category of 2011 "Invention/InnovationCompetition."

The orlu plant implemented their innovationproject 48 g-46 g Conversion in 2.5 L SW Bottles,"and used 46 g preform instead of 48 g in theproduction of 2.5 L SW bottles in blowing machines.

The Sapanca Plants replication project, LoweringPET Bottle Blowing Pressures, aimed to reducebottle blowing costs. The implementation of theproject, saved 200,000 kWh energy which amountsto approximately 10 months worth of electricityconsumption at Mahmudiye Ky.

Consumed kWh per 1 PET bottle blowing*

2006

0.0370.032

0.0260.027

0.025 0.021

2007 2008 2009 2010 2011


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Our main goal, in line with the energy consumption and CO2 emissions reduction strategies,is to minimize the number of daily movement of our vehi

Managing the Impact of Transportation andLogistics

Every morning, we transport thousands of CCIemployees to production and management centersfrom their homes, transfer goods bought fromsuppliers to our plants, and products to points of ourcustomers and distributors, and we travel as part ofthe nature of our business in the geography in whichwe operate. As an international company operatingin a dynamic sector, managing transportation andlogistics operations in the most accurate way affectsboth the effectiveness and profitability of our businessand environmental performance. In this respect,with our implementations, we reduce resourceconsumption and our carbon footprint by consumingless fuel.

Our main objective in line with the energyconsumption and CO2 emissions reduction strategiesis to minimize the number of daily movement ofour vehicles. Therefore we optimize our routeswith computer technologies used in both personneltransportation and logistics operations, and we aimto ensure the maximum amount of product deliverieswith minimum truck movements. Besides theseimplementations, as a part of our environmentalmanagement approach, we renew our vehicles forbetter fuel mileage and lower emissions, as well asstriving for effective driving habits throughout CCI.

* Calculating emissions from the fleet in 2011 distributed the product (L) is based on the amount of fuel consumed per diesel equivalent.

In 2011, we reduced CO2 gas emissions by 6,457tons as a result of opting to use vehicles with Euro 5motors for the distribution of our products.

In 2012, in Kazakhstan and Azerbaijan, we aimto complete the studies to start the DistributionOptimization implementation, successfully appliedin the Jordan operation during the last reportingperiod and targeted to minimize energy consumptionand emissions resulting from transportation

vehicles, while providing full performance indistribution channels.

We reduced our fuel consumption rate to 5.67 L/KL in our Turkey operation, 6.81 L/KL in the Jordanoperation, 5.21 L/KL in the Azerbaijan operationand 2.61 L/KL in the Kazakhstan operation by

implementing above practices in 2011.** Fuel consumption rate = total fuel use (diesel equivalent liters) / totalvolume of distributed product (kiloliters)

2010 - 2011 Fleet Emissions

Turkey Jordan Kazakhstan AzerbaijanFleet Emissions* 2010 2011 2010 2011 2010 2011 2010 2011CO2 (g/l) 11.71 15.3 58.48 21.09 3.2 7.05 10.24 13.37NOx (g/l) 190.57 249.17 598.58 342.69 52.1 114.81 115.79 143.19PM (g/l) 7.36 9.63 24.18 13.24 2.01 4.44 4.79 6.01HC (g/l) 7.83 10.21 61.91 14.02 2.13 4.7 9.15 12.21

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26

Cooling Practices

We have coolers or vending machines with coolerunits at thousands of our sales points. Coolersare very important for us in order to implementcorrect sales procedures at the correct salespoints, and they are also the most significantcomponents of our carbon footprint. Since 74.2% ofthe energy consumption that takes place throughoutthe CCI Turkey operation is due to coolers, allimplementations in this field substantially affectour environmental performance. In line with ourenvironmental management approach, we actresponsibly in selecting eco-friendly coolers withadvanced technology that reduce our environmentalimpact.

During the reporting period, we began replacing thecoolers that we use in our Turkey operation withcoolers that are equipped with energy managementdevices (EMD), custom designed for theCoca-Cola System, and use R600, a known eco-friendly refrigerant. In 2010, the ratio of coolers thatdo not contain HFCs (Hydro-Fluoro-Carbon) to allcoolers was raised to 11%, and we succeeded inboosting this ratio to 24% in 2011. Additionally, weincreased the percentage of EMD equipped coolersfrom 13% to 35%. Thus we became one of theoperations that achieved the fastest improvement ineco-friendly cooling practices performance among allTCCC bottlers. Annual energy consumption related tocooling was reduced by 109,296,576 kWh at the endof the reporting period. This reduction is equivalentto the total energy requirements of eight plants at thesize of CCIs Izmir plant. Furthermore, the refrigerantgases used by CCI are known to pose no threat to theozone layer.

Purchasing the coolers in a responsibleway and preferring devices that havethe least environmental effects whileutilizing technology are solid examples of

our environment management approach.In 2011, as a result of our investments inclimate friendly coolers at our Turkey,Azerbaijan, Jordan and Kazakhstanoperations, we achieved 121,903,311 kWhimprovement in energy consumptionand 58,338 tons of improvement in CO2 emissions.

* Figures cover the performances of Pakistan and 4 countries in the reporting scope.

2009

4,676,52435,632,170

121,903,311

2010 2011 2009

2,236 17,560

58,338

2010 2011

Cooler Energy Savings(kWh)*

Cooler EmissionReductions (ton CO2)*


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Green IT

Green IT is the name we have given to all of ourenvironmental impact reduction practices ininformatics. We aim to optimize resources by usingcomputers, servers and other associated subsystems

effectively and efficiently, and ensuring that electric-electronic wastes are recycled with no impact onthe environment. Within the scope of our Green ITpractices, we opt to purchase electronic devices andsystems that are more efficient in terms of energy,while also choosing electronic media implementationsand teleconference meetings to minimize businesstravel, optimizing product transportation and recyclingelectronic equipment that have reached the end oftheir economic life cycle, all in order to minimize ourenvironmental footprint.

We Consume less Energy at Work

As a result of the Print and Display Project welaunched in June 2011, we made our printingequipment more centralized, manageable, andtraceable. With the help of optimization processes, wereduced the number of printers from 420 to 290. Withthis project, we achieved a total of 14,000 kWh energysavings during the reporting period. In addition, wesucceeded in reducing paper consumption by 24%,by adjusting printer default settings to double-sided

printing and not allowing users to obtain printoutswithout identifying themselves.

Server Consolidation and ServerVirtualization

With the implementation in the reporting period, weconsolidated our existing servers and centralizedoperations by replacing 24 rack servers with 10

blade-type servers. In this way, we reduced energyconsumption and at the same time we ensured easeof administration and increased data security. Wecompleted the consolidation project in June 2011 andactivated it in July 2011.

With this project, we achieved total energy savings of39,902 kWh by the end of the year. We aim to achievetotal energy savings of 119,706 kWh with this project,which secured energy reduction of 56% by the end of2012.

Another implementation during the reporting periodwas the server virtualization application. Withinthe context of the project, a virtual infrastructureconsisting of 40 virtual servers was establishedby using 4 physical servers. Under normalcircumstances, this infrastructure needs 40 physicalservers, but now it is distributed via 4 servers byvirtualization. This project provides an approximateenergy savings of 90%. As a result of the projectlaunched in September 2011, we achieved energysavings of 67,200 kWh within 4 months.

As a consequence of all the Green IT projectsmentioned above, we achieved a reduction in annualenergy consumption of 121,102 kWh, and CO2 emissions of 58,120.4 kg in 2011.

CCI recycles the electrical andelectronic wastes (computers,monitors, printers, electricalcables, electronic equipmentetc.) sending them to companieswhich received licence from theMinistry of Environment andForestry.

During the reporting period, we consolidated our existing servers and centralized opby replacing 24 rack servers with 10 blade type serve

Total number ofprint

Paper consumption

The average annual household electricity consumption

420

290

24%2010

2011

14,000 KWh

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WaterManagement

A key business strategy is based on reducing theamount of water we consume and minimizing ourother environmental impacts while succeedingin sustainable production processes and waterreclamation. With this respect, we aim to be 'thebest' in water consumption and we always supportoperations related to preserving and developing waterresources.

Burak Baarr - CCI Turkey Region President

28

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What we Achieved

In 2011, we reclaimed 273,784 m3 of water as aresult of numerous projects that were a part of OEduring the reporting period in our Ankara, orlu,Mersin, and Adana plants.

We achieved a 70% savings in clean water byoperating high-pressured jets used for bottle cleaningin the Jordan plant. We reclaimed a total of 56,338m3 of water by recycling the water used for directwashing of carbon tanks and rinsing water in theAnkara plant.

We achieved a savings of 35,000 m3 of water byrecycling water through the reverse osmosis projectin the Izmir plant.

We reclaimed an annual total of 1,500 m3 of waterin the Izmir plant and 5,000 m3 of water in theKazakhstan plant with the Rain Water HarvestingProject.

We achieved a water consumption rate of 1.42L/L in our Turkey operation, 2.00 L/L in the Jordanoperation, 1.74 L/L in the Azerbaijan operation, and1.70 L/L in the Kazakhstan operation.

2012 Targets

We aim to reduce the water consumption rate to1.40 L/L as a result of OE water minimization projectsperformed in all the plants in Turkey.

We aim to reduce water consumption rates ininternational operations to 1.85% in the Jordan

operation, 1.78% in the Azerbaijan operation, and1.65% L/L in the Kazakhstan operation during the nextreporting period.

We aim to achieve a savings of 70,000 tons of water byreclaiming cleaning water in the Izmir plant.

We aim to save 9,000 m3 of water by using peroxidewater discharged from tetra lines for cleaning in theMersin plant.

We aim for a total reduction of 25,000 m3 water

consumption in our Kazakhstan, Jordan, and Azerbaijanplants with the application of a dry belt slider, the useof sampling water analyzed in garden irrigation, withoptimization projects of water used in reverse osmosis inAzerbaijan and of rinsing water in our Jordan plant.

As a vital source of life for human beings and a

fundamental ingredient of our products, water is alimited resource. Global warming, rapid populationgrowth and consumption, and other dangers to dwindlingwater supplies intensify the pressure on this limitedresource. CCIs operational geography is one of theregions in which this pressure is felt at its greatest.

Therefore, water management is the most importantaspect of the sustainability framework for CCI. With thegoal of "producing more beverages by consuming lesswater," we aim to maximize the efficient use of waterin our production facilities, to preserve water qualityin water basins, and to be an example in this area byperforming waste water management to the highestpossible level.

As part of the Coca-Cola System, CCI supports theultimate goal of "replenishing every drop of waterused by the help of global water management studies"focusing on the following points:

1. Reducing water consumption / Reuse.2. Reclamation / Safe discharge.

3. Replenish.4. Supporting studies devoted to preserving andimproving water basins.5. Supporting studies raising the awareness of society,together with public institutions and non-governmentalorganizations.

Yield 88% with water recovered from the reverse osmosis system.

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30 Water Management

Reducing Water Consumption

We believe that our ultimate responsibility is tomaintain the efficiency of water consumptionand management processes in our operations.Therefore, we constantly endeavor to find differentways of reducing the amount of the water we use.Despite the increase in production quantities andthe product portfolio range, CCIs aim to reduce theamount of water used per 1 liter of product is activelyfollowed in all country operations every year. We areconducting OE studies with the aim of reducing waterconsumption rates in all countrys operations withinthe context of this report.

Water consumption distributions and improvementsin the water consumption ratios (L/L) according to ouroperational sources covered by the report since 2006are as follows:

During 2011, we continued to improve waterconsumption processes in our operations. Inthe Kazakhstan plant, with the help of dry oilingconveyors, we achieved 2,000 m3 water savings.Meanwhile, also in the Kazakhstan plant, we haveachieved a savings of 3,500 m3 in rinsing water sinceMay, 2011.

CCI Kazakhstan Plant

Reducewater use

Re-useReductionat Source

Reuse aftertreatment

Dischargetreated water to

the environment

Recycle

Rain watercollection Garden irrigation Water sourcesupplement to aplace with

polluted or nowater source

Replenish


Water Management at CCI

2006-2011 Water Consumption Reduction (%)

2006

20111.74

2.10 2.10

3.44

1.42

1.70 1.742.00

18.39%41.86% 19.05% 17.14%

Turkey Jordan AzerbaijanKazakhstan

Water Consumption Ratio (L/L)

2006 2007 2008 2009 2010 2011

3.44

2.1

1.74

2.001.741.70

1.42


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Despite the increase in production quantities and product portfolio range, CCI's aim the amount of water used per 1 liter of product is actively followed in all

operations every year.

We continue to reduce our water consumption inthe orlu plant by using air cleaning technologyfor bottles since 2006. At the same time, we alsoachieved an annual water savings of 12,000 m3 withthe dry conveyor lubrication implementation, and

80,000 m3 by filling operation without rinsing in theorlu plant. In our Izmir plant, we achieved an annual

water savings of 35,000 m3 with the Active Carbon &Reverse Osmosis Exit Mixture implementation.

Wastewater Management and Reclamation

While we manage our operations using the concept ofthe zero wastewater generation and reclamation,we reduce our environmental impact by dischargingwastewater after purification in our plants and/or inlocal purification plants. We also closely monitor thequality of wastewater released from the production.At CCI, we comply with legal and TCCC wastewaterlimits determined for bottler operations, control ourwastewater parameters with periodic analyses andfurthermore, we evaluate our wastewater treatmentperformances.

In the above figure, % of total water use at theoperations within the scope of this report ispresented.

CCIs Turkey Operationis one of the bestoperations, with thelowest water consumption

rates, and aims toachieve a rate of 1.40 L/Lby the end of 2012.Reducing this rate to1.40 (L/L) would equate to122,000 tons of annualwater savings.

Izmir Plant

There was no leakage resulting from our operationsduring the reporting period.

Total Water use by Sources (%)*

Municipal Water

Groundwater

Spring Water

11%

Total4,805,034 m3

7%

82%

* Totally 4,805,034 m3 water has been used in the Turkey,Azerbaijan, Kazakhstan and Jordan operations.

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32

While striving to use the wastewater generated asa result of production processes in different fieldsvia different implementations and projects, we alsoconstantly try to improve both water usage efficiencyand wastewater reclamation rates. In this respect,our production plants implement a number ofwater reclamation projects. In the Ankara plant, byreclaiming the wastewater generated as a result ofwashing carbon tanks and rinsing, we achieved a totalof 56,338 m3 wastewater reclamation. In the orlu

plant, we reclaimed 25,000 m3 of wastewater withthe help of forward/backwashing of sand and activecarbon filters in 2011. This amount equates to 3.3%of total water used during the process. Similarly,we achieved 20% reclamation by reusing returnablebottle and sanitation wastewater by reverse osmosiswastewater and by the rain water harvesting projectin the Izmir plant, and an 11.82% reclamation bybackwash water of softening tanks, reclamationof waste water used before line 3 jet coding, andcancellation of showers before and after line 1 fillingprojects in the Mersin plant. We are planning to applyreclamation projects in the Bursa, Sapanca, Kyceizand Elaz plants in 2012.

In 2011, we developed and implemented variousprojects to lower the water consumptions in ourcountry operations as part of OE. We recovered atotal of 427,086 m3 of water by recovering sand andactive carbon straight/reverse washing water andother optimization projects realized at our Pakistan

operation. A total of 12,835 m3

of water was recoveredby projects such as sand and active carbon straight/reverse washing and optimization of hot fillingwashing water at our Kazakhstan plant.

With Rain Water Harvesting Projects, we collected1,500 m3 rain water in the Izmir plant and 5,000 m3 rain water in the Kazakhstan plant. We aim tocollect 500 m3 rain water with implementations inthe orlu plant during 2012.orlu Plant

CCI Mersin Plant sandand activated carbonfilter system

Wastewater Treatment Channels*

Wastewater treated and discharged in CCIwastewater treatment system (m 3)

Wastewater treated and discharged in localwastewater treatment system (m 3)

* Based on 2010 data. During the reporting period totally 1,289,863 m3 water was treated and discharged in TR, AZ, Kaz and Jordan operations.

43%

57%

Total1,289,863 m3

Wastewater Discharge between 2006 and2011 (L/L)

2006 2007 2008 2009 2010 2011

1.040.920.580.330.39

0.87

1.16

2.43


Water Management

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We act in concert with stakeholders and in line with their expectations throughout our geograp to carry out projects that preserve and improve water resources, in terms of both quality and

Preserving Water Resources

Today, the situation of water resources is one ofthe biggest environmental problems in the world.As an international company, we accept that oursteps regarding this issue are very important forthe environment, and we care about being a modelcompany for others in our geography with our positiveactions. We act in concert with stakeholders and inline with their expectations throughout our geographyin order to carry out projects that preserve andimprove water resources, in terms of both quality andquantity. The evaluation of the impacts of our ownoperations on water resources and taking necessaryactions in this field are the fundamental componentsof our practices.

We are aware of our impacts on water basins, whichalso affect natural life and bio-diversity aroundwater resources. Therefore, with the Water SourceVulnerability Assessment Studies, we perform riskanalyses pertaining to water basins and determinerisks of water basins and the contamination level.In consideration of these results, and as one of themain principles of the KORE system, which TCCCimplements throughout the world, we initiated theSource Water Protection Plan to take precautionson the plant basis. In order to implement these plans,teams from different departments of the companycome together to prepare and implement long termaction plans.

The Coca-Cola Systems clear commitment to ourstakeholders on water management is to supplyand reclaim all of the water that we use in ourproducts and during production without harmingthe environment. Thus, we continuously expandour regions of evaluation in line with this principle.

During the reporting period, while performingplanned studies on water resources in our Bursa,Elaz, Sapanca, Kyceiz, and Jordan plants, weaim to complete studies pertaining at the Karachi,Faisalabad, Multan, and Gujranwala plants in 2012.

We support environmental projects in order toincrease awareness with respect to water basinpreservation, especially among young people. Detailedinformation about the work of the Coca-Cola LifePlus Foundation in this field can be found in theCommunity section of this report.

In September 2010,approximately 1,500 m3 waterwas collected with the rain

water harvesting systeminstalled on 2,000 m2 of roofspace at the Izmir Plant. Thecollected water has been usedfor garden irrigation.

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SustainablePackaging

One of the strategic goals of our business model

is using less resource and generating less wastewhile producing more. Within this framework, CCIplants lead by example with model implementationsamong the thousands of Coca-Cola plants through theworld.

Ali Hrolu - CCI Supply Chain Services Director

34

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What we Achieved

We managed to increase the packaging recyclingrate by 0.58% in the Turkey operation, 2.89% inthe Jordan operation and 0.39% in the Azerbaijanoperation, and we reduced 0.72% in the Kazakhstanoperation. We achieved a 94.45% recycling rate inTurkey, 88.9% in Jordan, 85.34% in Kazakhstan and92.47% in the Azerbaijan operations.

We increased the recycling rate of packaging wasteto 38% in our Turkey operations.

2012 Targets We aim to increase the packaging waste recyclingrate: 95% in the Turkey operation,89% in the Jordan operation,90% in the Kazakhstan operation and94% in the Azerbaijan operation.

We aim to increase the recycling rate of packagingwaste to 40% in the Turkey operation.

We aim to spread Lightweight implementationsthroughout our all country operations. We aim to use24.5 g material instead of 29.9 g in 1.5 L PET bottles,

10.5 g material instead of 14.9 g in 500 ml PETbottles, 10.5 g material instead of 12.5 g in 330 ml PETbottles.

We aim to reuse 87 tons of waste in our Bursa plantas part of the pallet reuse project in 2012.

Packaging plays an important role in various

processes from production to distribution and fromrecycling to waste disposal, and directly affects thesustainability of all these processes. Product qualityand safety are the most significant aspects of ourbusiness. However, reducing the environmentalimpacts of our packages plays a critical role inour sustainable packaging strategy. Our approachregarding sustainable packaging consists of threecomponents:

Continuously reducing the material amount andenergy used in package manufacturing and usingrecycled materials as much as food safety principlesand technology allow.

Reducing material use and increasing reuse andrecycle rates.

Working together with stakeholders in order toestablish an environment friendly and economicallysustainable infrastructure for reclamation, reusing,

and recycling of product packaging.2011 Targets

To increase the material recycling rate by 0.5% inTurkey, 0.7% in Jordan, 4.7% in Kazakhstan, and 1% inAzerbaijan operations.

To increase the rate of packaging waste recycling to38% in our Turkey operations.

Re-design Lightweight Ultra Bottle

Reductionat Source

RB Deposit Re-usablepallets

Re-use

Recycling bycollection fromthe market Preformrecycling

Incinerationby energyrecovery

StorageRecycle

SafeDisposal


Waste Management in CCI

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36 Sustainable Packaging

previous periods. We achieved a savings of 1,413 tonsof resin by implementing this project in the Turkey,Jordan, and Kazakhstan operations.

2.5 L PET Bottle

In 2.5 L PET Bottle production, circular pre-formwas changed to conical pre-form. As a result of thischange, we both saved raw material and enhanced theresistance of the package to stress breakages due toexternal factors.

With the former improvements, we lowered the weightof the 2.5 L PET bottle from 60 g to 54.1 g. Thanks tothe latest development, we have now reduced thisweight to 52.8 g. Therefore, we expect an annual rawmaterial (resin) savings of 333 tons. Considering that1,200 kWh energy is used in raw material production,we will save a total of 399,600 kWh energy. In 2011,the energy saved as a result of the injection andblowing processes was approximately 235,200 kWhand because of this savings approximately 113 tons ofCO2 emissions was prevented.

In 2011, we continued to implement lightweightprojects in all CCI plants in Turkey. With this project,preform savings achieved in 2011 were around 1,205tons. In our orlu and Ankara plants, the producers ofpreform for the entire operations, we saved 196 tonswith the preform reduced to 52.8 g, 644 tons with 10.5g, 81 tons with 46 g, and 23 tons with 24.5 g, as well as261 tons of resin by recycling implementations.

In addition to the above savings, as part of the projectthat will continue in our Turkey operation in 2012, itis expected that we will save a total of 2,977 tons ofmaterial by reducing the PET 2.5 L bottle from 52.8 gto 51.5 g.

Glass Bottle Implementations

In 2011, we continued the Ultra Bottle project whichwas initiated in 2010 with the purpose of reducingthe consumption of glass materials, and achieveda total savings of 1,359 tons of glass in our Turkeyoperations. We then implemented the project inJordan and Pakistan and saved a total of 3,281 tons ofglass and prevented approximately 5,250 tons of CO2 gas emissions.

In 2012, we will continue improvements byimplementing the above projects in all of ouroperations.

Reducing Material Usage in ProductPackaging

Damla PET 500 ml Bottle

We renewed the Damla Spring Water package in2011. The new packaging brings together a slew ofadvantages in terms of material and energy savingswith a 29.5% lighter structure, short neck productionand high storage resistance. Our packaging helps usstock our products to the highest level possible, and

high quality and reduced weight have not changed thisfeature.

As a result of the design change, the weight ofthe 500 ml package was lowered from 14.9 g to10.5 gr, the lightest weight used in the Coca-ColaSystem in Turkey and around the world. After thedesign change, we expect to achieve an annual rawmaterial (resin) savings of 1,658 tons. While keepingin mind that 1,200 kWh energy is used per ton ofraw material production, we will achieve an annualsavings of 1,989,600 kWh energy. This will result in theprevention of 960 tons of CO2 emissions, which equalsa savings of approximately 9,500 trees.

CCI Turkey Won Two Awards

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