20 August 2026

CCEP's Joe Franses on Long-term Sustainability Strategies

CCEP narrows climate and packaging goals after Philippines expansion

Coca-Cola Europacific Partners has tightened its environmental targets. The world's largest independent Coca-Cola bottler now reports a 19 percent absolute emissions cut against its 2019 baseline. At the same time, the company has woven the Philippines into its group sustainability framework following a 2024 acquisition.

Joe Franses, vice-president of sustainability at CCEP, argues that meaningful progress takes longer than many businesses expect. He also maintains that success depends on pairing technical know-how with collaboration across suppliers, regulators and infrastructure providers. His comments arrived during a company webinar in April 2026, where CCEP outlined its refreshed environmental plan.

The update matters because CCEP operates across Europe and Asia-Pacific. Consequently, its decisions on packaging, recycling and carbon reduction influence suppliers and shape policy debates beyond its own operations. For UK manufacturers and distributors watching regulatory pressure intensify, CCEP's approach offers a window into how large consumer-goods firms are reconciling growth with decarbonisation.

Emissions down 19 percent as net-zero deadline holds at 2040

CCEP confirmed in April 2026 that it had reduced absolute emissions by 19 percent compared with 2019, even as revenue grew. The company still aims to reach net-zero greenhouse gas emissions across its entire value chain by 2040. That timeline covers Scope 1, 2 and 3 emissions, which means direct operations, purchased energy and the wider supply chain.

In May 2026, CCEP published a revised environmental plan. The refresh followed the integration of Coca-Cola Beverages Philippines Inc., which CCEP acquired in 2024. The new framework narrows group-wide priorities to six measurable targets for 2030. These include a 30 percent absolute reduction in Scope 1, 2 and 3 emissions versus 2019, alongside goals for water replenishment, packaging collection and recycled content.

The company also disclosed plans to invest around €385 million in decarbonisation over three years. That figure, reported by BeverageDaily in July 2026, underlines the capital commitment required to meet the 2040 net-zero goal. Franses told the publication that CCEP cannot deliver these targets alone. He emphasised the need for coordinated action with suppliers, policymakers and local recycling systems.

Six 2030 priorities replace broader commitments

The May 2026 update replaced a longer list of ambitions with six specific 2030 priorities. The shift reflects a move from broad commitments to tighter, measurable outcomes. CCEP's sustainability plan, branded "This is Forward," now concentrates on the following targets:

A 30 percent absolute reduction in Scope 1, 2 and 3 emissions compared with 2019.
Full water replenishment across all operations by 2030.
An 85 percent packaging collection rate by 2030.
At least 30 percent recycled PET content in bottles by 2030.
Continued investment in deposit return schemes and extended producer responsibility where infrastructure supports them.
Integration of the Philippines into group-wide environmental reporting and target-setting.

The packaging collection target is particularly significant. An 85 percent rate requires robust reverse-logistics infrastructure, which varies widely across CCEP's territories. Deposit return schemes exist in some European markets, but others lack the regulatory framework or collection capacity to hit that threshold.

Similarly, the recycled PET goal depends on stable supplies of food-grade recycled resin. UK manufacturers face the same challenge. Demand for recycled plastic often outstrips domestic collection, especially when export restrictions tighten or virgin resin prices fall.

Philippines acquisition expands geographic scope and reporting complexity

CCEP completed the acquisition of Coca-Cola Beverages Philippines Inc. in 2024. The May 2026 sustainability update confirmed that the Philippines is now fully integrated into the group's environmental targets and reporting systems. This expansion adds operational complexity because the Philippines has different waste infrastructure, energy grids and water resources compared with CCEP's European base.

For example, deposit return schemes are well established in markets such as Germany and Norway. However, the Philippines relies more on informal waste collection and material recovery facilities. Consequently, CCEP must adapt its packaging and recycling strategy to fit local conditions while maintaining group-wide targets.

Water replenishment also becomes more challenging. The company has committed to replenishing 100 percent of the water it uses by 2030. In the UK, CCEP announced a three-year, £2.55 million water replenishment project in West Yorkshire in 2026. Similar projects in the Philippines will need to account for different hydrology, regulatory frameworks and community needs.

The integration shows how acquisitions can test the scalability of environmental strategies. UK businesses considering expansion into new markets face similar questions. A sustainability plan designed for one regulatory environment may not transfer neatly to another, particularly when infrastructure or policy support varies.

Why Franses emphasises patience and collaboration

Franses has repeatedly stressed that corporate sustainability takes longer than many expect. His comments reflect a broader reality in the sector. The biggest emissions reductions often depend on infrastructure that sits outside a company's direct control. These include grid decarbonisation, supplier engagement, recycling systems and policy frameworks such as carbon pricing or extended producer responsibility.

He also argues that technical expertise must combine with cross-functional leadership. In practice, this means sustainability teams need to work closely with procurement, operations, finance and government affairs. For instance, switching to recycled PET requires procurement teams to secure supply, operations teams to adjust bottling lines, and finance teams to manage cost volatility.

This approach contrasts with the view that sustainability can be solved through a single technology or a one-off capital investment. Instead, Franses frames it as a long-horizon discipline that requires continuous adaptation and collaboration. UK manufacturers will recognise the challenge. Decarbonisation rarely happens through a single project. It typically involves a mix of energy efficiency, renewable power contracts, supplier engagement and process redesign.

How CCEP's plan aligns with UK policy and procurement requirements

CCEP's emissions and packaging targets align with several UK policy drivers. The government has set a legally binding target to reach net zero by 2050, and many public sector tenders now require suppliers to demonstrate carbon reduction plans. PPN 06/21, published by the Cabinet Office, mandates carbon reduction plans for central government contracts above £5 million per year.

CCEP's 2040 net-zero goal sits ahead of the UK's 2050 deadline. However, the interim 2030 targets are more relevant for suppliers navigating current procurement rules. A 30 percent Scope 1, 2 and 3 reduction by 2030 shows measurable progress, which is what buyers increasingly expect to see in tender submissions.

The packaging targets also reflect UK regulations. Extended producer responsibility for packaging came into force in 2023, and deposit return schemes for drinks containers are expected to launch in England and Northern Ireland in 2025. CCEP's 85 percent collection target and 30 percent recycled content goal anticipate these rules, but they also raise the bar for suppliers and smaller bottlers who must meet similar standards.

For UK manufacturers, CCEP's approach offers a useful reference point. The company is setting targets that exceed regulatory minimums, which can create competitive advantage in tenders and reduce compliance risk as rules tighten. However, the plan also shows the capital and operational commitment required to deliver on those targets.

Investment and infrastructure dependencies

CCEP's €385 million decarbonisation investment spans three years. That budget covers energy efficiency, renewable energy, low-carbon transport and supplier engagement. The figure highlights the capital intensity of deep emissions cuts, particularly for Scope 3, which includes raw materials, packaging and distribution.

Energy remains the largest emissions source for many manufacturers. CCEP is investing in energy efficiency at bottling plants and switching to renewable power where contracts allow. However, grid decarbonisation varies by region. Countries with high coal dependence will take longer to deliver low-carbon electricity, which affects the pace of Scope 2 reductions.

Packaging and recycling infrastructure also require coordinated investment. Deposit return schemes work well where governments mandate them and fund collection infrastructure. In markets without such systems, CCEP must rely on kerbside collection or voluntary take-back schemes, which often achieve lower recovery rates.

Water replenishment projects add another layer. CCEP's £2.55 million West Yorkshire project shows the scale of investment needed to replenish water at a local level. Replicating that model across all territories, including the Philippines, requires significant capital and long-term partnerships with water utilities, NGOs and local authorities.

What UK manufacturers should consider

CCEP's experience offers several lessons for UK businesses, particularly those in manufacturing, food and drink, or supply-intensive sectors. First, emissions reductions depend on factors beyond direct operations. Scope 3 emissions typically account for the majority of a company's carbon footprint, yet they sit in the supply chain and require supplier engagement, not just internal projects.

Second, measurable interim targets matter more than distant net-zero pledges. CCEP's 2030 goals provide accountability and help track progress. For businesses bidding on public sector contracts, a clear trajectory to 2030 is more credible than a 2050 commitment without interim milestones. Our net-zero program for carbon reporting compliance helps UK SMEs develop credible plans that meet procurement requirements.

Third, packaging and waste regulations are tightening. Extended producer responsibility and deposit return schemes shift costs and compliance burdens onto manufacturers. CCEP's packaging targets anticipate these rules, but smaller firms may struggle to meet collection and recycled content thresholds without industry collaboration or infrastructure investment.

Fourth, acquisitions and geographic expansion complicate sustainability plans. Integrating new markets with different infrastructure, regulations and stakeholder expectations requires flexibility. Businesses expanding internationally should audit environmental risks and infrastructure gaps early, rather than assuming that a domestic sustainability plan will transfer smoothly.

Finally, patience and long-term discipline are essential. Franses's comments reflect the reality that deep decarbonisation takes years, not quarters. It requires capital, cross-functional alignment and external partnerships. UK manufacturers should plan for multi-year timelines and avoid the temptation to overcommit without the resources or infrastructure to deliver.