It’s a given that Earth Day brings added attention to sustainability. That’s the goal, after all. But for Bea Perez, chief sustainability officer for The Coca-Cola Company, it demands 365-days-a-year focus.
Perez joined Coca-Cola in 1996 as an associate brand manager and worked in brand management, field operations and integrated marketing before becoming chief marketing officer for Coca-Cola North America in 2010. She has led the company’s sustainability efforts for nearly five years.
Ahead of Earth Day (Friday 22nd April, 2016), we spoke with Perez about her role, the impact of sustainability on the company and what she learned when two large trees crushed her house!
Can you tell us a little about what your job involves?
In a nutshell, I represent a lot of effort being done by teams around the world, out in the field and across our system. I view my role as keeping us organised and focused on things that matter to our business and that are relevant – areas where we can make a difference and where we can lead.
For example, the climate issue involves things that are deeply intertwined in our business: packaging, refrigeration and trucks on the street. Our work can amount to a big difference in over 200 countries if we're all moving in the same direction, versus moving independently and in siloes.
It’s not all about the environment, either. It’s about value creation, societal impact and putting people at the centre. It’s about leaving communities better than when we found them.
My role is simply to keep the trains on the tracks. It's the people in the operations in the communities who really make the difference and make this the success it is. My philosophy is that small actions can lead to big things.
Are you encouraged by some of the recent results?
Coca-Cola now has more than 1.9 million hydrofluorocarbon-free coolers deployed across its global system. The company just announced it has helped economically empower more than 1.2 million women entrepreneurs through its 5by20 initiative. And the 100th EKOCENTER recently opened in Vietnam to offer clean water, basic medical services and Internet access.
There is a lot to celebrate, but that actually makes me really nervous. You think about those bold, audacious, aggressive goals – replenishing 100% of the water we use by 2020. To be tracking five years ahead of schedule on that goal, that's a really big deal. I get nervous because we might all celebrate that accomplishment and we could easily forget that we have to keep working hard to maintain it. A big part of my role is to remain constructively discontent.
Is there ever a temptation to take your foot off the gas?
That's correct. It has to be everyone's business, everyone's responsibility. For example, we set the goal to empower five million women by 2020. We just announced 1.2 million in 60 countries. That means we have 3.8 million left to go. So even though we've achieved significant milestones, there's still so much more to do. It's important to keep our business thriving and communities thriving.
Earth Day is a global event, but what can an individual do to encourage sustainability?
As individuals, we can take the time to recycle, or turn off the light when we leave a room. We do it in our own homes – we should do it in our business. Turning the water off when you’re putting soap on your hands can make a real difference. A faucet leaking just one drop per second wastes over 1,300 gallons of water per year. All of these things add up.
Earth Day actually has very interesting meaning to me, because two big poplar trees fell on my house on Earth Day two years ago. How ironic is that? I learned from that that nature can be extremely powerful, yet fragile. Those two trees were powerful enough to destroy an entire house, but they were also vulnerable to weather and erosion. That was a reminder to me that we need to step back and recognise that our planet is fragile and not take it for granted. We need to treat it like it’s precious.
How do you set a good example to friends and family without coming across too preachy?
I don't like to preach. I really believe people want to do the right things. I try to get my family to role model. Honestly, my kids are taking this and running with it – keeping me accountable!
I know recycling can be a challenge sometimes. The main barriers to recycling are education – a lack of awareness around it – or inconvenience. So, if your shampoo bottles are upstairs but your recycling bin is downstairs, you have to separate your rubbish before bringing it downstairs. That’s a barrier. But if I don’t separate it, my kids will get on my case about it.
In a global company, one of the biggest challenges is making sure great ideas are shared quickly. How do you ensure that happens?
I think we still have a lot more work to do in that space. I have a real desire to get that right. There is so much great work being done around the world.
One thing I recognised when I came into this role is that I didn’t have to create something new. Getting people to replicate successes and “scale them up” is actually the most pressing task. Luckily, the worldwide system already had some mechanisms that can help do that.
For example, the Eurasia Africa Group had already started a bottler sustainability award. By competing for sustainability awards, they were having to put together best practices, share them with each other, and go through a judging panel. Now, those best practices are documented for any bottler to use. And you get the competitive juices flowing, which is a very powerful incentive.
Having a world-class business and world-class sustainability are complementary. Becoming more water-efficient helped us save more than $1.6 billion over the last several years. That’s a pretty significant accomplishment. Why wouldn't you do that?
Millennials are looking hard at the choices they make in life, who they work for and with. And that also translates into what they buy. Brands that embed sustainability into everything they do have a more compelling value proposition. This is where the consumer is going.
You mentioned the 'aggressive' goals Coca-Cola has set for sustainability. How is the company held accountable for meeting those goals?
We’ve recognised we need a rewards and consequences framework. We need the carrot and the stick. Within our system, we know who‘s falling short when measured against the goals, and who needs to step it up. We treat sustainability like a business. We measure, track and report. We’re one of the top companies using EY to assure our data. We can stand behind our numbers and be very proud of our progress because we know it’s real.
If we didn’t have that discipline and structure, we wouldn’t really know when we need to accelerate our efforts. There’s real power in being transparent and rigorous with your data.
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