Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020

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Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
Our Planet
Protecting the only bubble that matters

SodaStream Environmental Overview 2020
Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
2     SodaStream Environmental Overview 2020

    Welcome                                    SodaStream
    From Our CEO                               at a Glance
                                               From the start, SodaStream was an                         1903                                         80,000
    “At the heart of our company               innovator, an inventor, a disruptor of the             SodaStream was                                  Our products are
     lies an ambitious vision: To              beverage industry, and we soon became a                founded in 1903                               available at more than
                                               purpose-driven organization, committed to                 in the UK                                80,000 retail stores across
     Change the Way the World                  promoting sustainable business practices                                                                  45 countries
     Drinks. SodaStream’s magic of             long before they were fashionable. Today,
     transforming water into fresh,            we put the planet at the very center of
                                               our business model, striving to eliminate
     sparkling water excites millions          single-use plastic waste, defeating
     of consumers around the world,            inequalities and helping to build stronger
     knowing they are also saving              communities for a sustainable future.
     thousands of single-use plastic
     bottles every year.
                                               Our values                                                    5,000+
                                               We believe corporations play a vital role in                    employees1
                                               generating change, which is why we put
    We invite you to join our
                                                                                                                                                                 3,000
                                               sustainability and social purpose at the
    revolution, and add some                   core of everything we do. SodaStream
    sparkle to your life.”
                                                                                                                                 Our
                                               believes in:
                                                                                                                                                          With one reusable bottle,
                                                                                                                                                          we can save a family up to
                                                 Business courage
                                                 Being driven by our dreams
                                                 not by our fears
                                                                                                                                Vision                     3,000 disposable bottles
                                                                                                                                                               every four years
                                                                                                                               Changing the Way
                                                 Creativity                                                                   the World Drinks
                                                 Encouraging the crazy ideas
                                                 that fuel innovation                               Our
                                                 Initiative and urgency
                                                 Making every day count
                                                                                                   Mission
                                                                                                Revolutionizing the global
                                                 Excellence of execution                     beverage industry by providing
                                                 Taking no shortcuts to success
                                                                                                  choices that are better
                                                 Optimism and energy                               for consumers and
                                                 Daring to dream and pursue                              the planet
                              Eyal Shohat
                                 CEO,
                                                 the “impossible”
                              SodaStream         One SodaStream
                                                 Celebrating our differences
                                                 and acting as ONE
                                                                                                                                                      1 Includes permanent and temporary employees.
Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
3    SodaStream Environmental Overview 2020

    Our Environmental                                                                                       By 2023
    Impact                                                             200M
                                                                                                          start producing
                                                                                                          sparkling water
                                                                                                        makers from recycled
                                                                      Avoid an additional
                                                                      200 million single-                 or plant-based
                                                                                                             materials
    Sustainability is at the very core of                           use plastic bottles by
                                                                   transitioning our flavors
    our product. One reusable SodaStream                Our            to a metal bottle
    bottle replaces the need for thousands         Environmental            by 2025
    of single-use plastic bottles.                    Targets

                                                                                                        78B
    Our sparkling water makers enable
    consumers to create sparkling drinks
                                                                                                By 2025, we will avoid the
    at home using just tap water, our refillable                                                use of 78 billion single-use
    gas cylinders and our flavor options, thus                                                 plastic bottles1 by expanding
    reducing packaging, carbon emissions                                                       our business (an increase of
                                                                                                11 billion from our original
    and transport pollution.                                                                        2020 commitment)

    In addition to our efforts to reduce
    single-use plastic waste, we are taking
    steps to reduce our carbon footprint.
    This includes shortening the distances
    traveled by some of our products to
    reach partners and consumers.

    Through our environmental sustainability
    work we contribute to these SDGs:

                                                                                                      1 Data per 0.5L bottles.
Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
4      SodaStream Environmental Overview 2020

Products That Make a Difference

Positive impact on health                               Bottles and flavors
                                                                                                            Pepsi flavors: the new
and wellness                                            Our reusable bottles are unique, allowing
                                                                                                            and iconic
The positive impact of SodaStream on health             consumers to carbonate and drink from the
and wellness has been well demonstrated: in a           same bottle. At present, 30% of our bottles are     Since 2020, our consumers have been
2021 study, 81% of participants who owned a             made from reusable glass, a figure we expect to     able to make their favorite PepsiCo drinks
SodaStream sparkling water maker increased              increase in the years ahead. In total, 37% of all   using their SodaStream Sparkling Water
their water intake by an average of 52%.1               our bottles are dishwasher safe, thus enabling      Maker from the comfort of their own home
                                                        consumers to reduce water usage.                    in an Earth-friendly way. Five iconic flavours
                                                                                                            – Pepsi, 7UP, Mirinda, Mountain Dew and
Revolutionizing our sparkling                           At the end of 2021, we will start transitioning
                                                                                                            Schwip Schwap – along with their diet
water makers                                            our flavors from plastic packages to metal.
                                                                                                            and sugar-free alternatives are available
                                                        Metal is currently the easiest and most
Our sparkling water makers are produced to                                                                  in ten markets.
                                                        commonly recycled material in the world,
the highest standard of quality and designed to         making metal bottles an immediately available,      In January 2021, we launched bubly™ drops
deliver the ultimate beverage experience.               environmentally friendly alternative.               for SodaStream in the USA followed by
In 2020, we launched the DUO, our most                                                                      Canada, representing the first partnership
advanced sparkling water maker to date, and the                                                             with PepsiCo’s brands in North America.
                                                                                                            The new collaboration brings the beloved
                                                                              Reusable
only one in our portfolio that allows consumers
to carbonate in both glass and reusable plastic                                                             bubly™ brand’s bright flavors and bold
bottles. The DUO decreases plastic consumption                                Each of our reusable          personality to the SodaStream platform,
of consumers while enabling convenient usage                               bottles are BPA-free and         offering another way for consumers to enjoy
indoors and outdoors.                                                   replace the need for thousands      bubly™ beverages at home while continuing
                                                                          of single-use plastic bottles     to avoid single-use plastic.
We are investing robust resources to implement
                                                                               while also reducing
recycled and renewable plant-based materials
                                                                             carbon emissions and
into our sparkling water makers by 2023. This
                                                                                    pollutions
move will further reduce plastic waste and lower
carbon emissions in the production process.

1 Based on an online survey in the USA and UK. Random
  sample of 600 SodaStream Active users (owners that
  use the machine once a month or more), males and
  females aged 18+.
Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
5     SodaStream Environmental Overview 2020

                                                                                                        Sustainable Operations

Cylinders: refilling and recycling                                                                      Shortening the supply chain                            Recycling waste
                                                       Repurposing and recycling
Our CO2 cylinders are designed to be reused.
                                                       in Australia
                                                                                                        through local filling stations                         We’re always looking for ways to recover and
SodaStream cylinders are produced – and                                                                                                                        reuse waste materials. Wherever possible, we
designed to remain – in a closed loop. The life        In July 2020, we launched an exciting
                                                                                                        and operations                                         filter and reuse our oil waste, regrind and reuse
cycle begins with manufacturing, to filling, use       repurposing and recycling project in Australia   SodaStream currently has seven CO2 cylinder            plastic waste, and recycle and separate water
and return by consumers, cleaning and refilling,       aimed at reducing SodaStream’s contribution      filling stations worldwide, and will open its eighth   from production waste. In addition, we use carts
and reintroduction into the local market for           to waste and landfill. The project’s two key     in Japan in 2021. We carefully consider all our        rather than cardboard cartons for local product
redistribution. All cylinders meet required country-   objectives are: redirecting returned sparkling   station locations to ensure that the distance          transfers, and melt our discarded brass into
specific standards, undergoing extensive in-           water makers back onto the market, and           between our inputs and end users is as small           new reusable rods.
house safety tests before entering or returning to     when this isn’t possible, recycling sparkling    as possible. For example, our Netherlands
the market. Our consumers can exchange empty           water makers, thus preventing 4 tons of          site consolidates activities previously carried
cylinders through local retail partners or through     plastic going to landfill. Machines that were    out across seven different locations and thus

                                                                                                                                                                            Lowering
online exchanges.                                      no longer in use and returned to store by        reduces transport impacts between our sites
                                                       consumers were collected, retested and – if      in Western Europe. Similarly, our Japanese

                                                                                                                                                                           Consumption
                                                                                                        filling station will cut the environmental costs of
Packaging                                              appropriate – refurbished for resale. Since
                                                                                                        moving millions of CO2 cylinders every year to
                                                       the project’s launch, almost a quarter (24%1)
We believe in protecting our products and                                                               and across the Asian market.
                                                       of returned machines have been successfully                                                                        We have minimized and found
the planet, and consider the environmental
                                                       refurbished, and all of the Refurb Machines                                                                         alternative solutions for the
impact of every single component in our designs.
In 2019, we removed the plastic handles from all
                                                       were sold to external parties. Machines that     Renewable energies                                                 use of single-use plastic in
our packaging (reducing approximately 6 tons
                                                       could not be refurbished and repurposed          and savings                                                         our factories, offices and
                                                       were separated for parts (metal, plastics,                                                                           production plants around
of plastic waste a year), and we’re currently                                                           As production at our flagship factory in Israel
                                                       batteries, etc.) and recycled.                                                                                                the globe
exploring innovative packaging options to reduce                                                        grows, we plan to meet 10% of the plant’s total
our paper waste. Our packaging is made                                                                  energy requirements with solar energy by 2022,
from recycled cartons and is already at least                                                           a five-fold increase from 2% in 2020. We aim to
90% recyclable.                                                                                         achieve this by installing additional solar panels
                                                                                                        to the rooftop array at the site.
                                                                                                        Through these investments, we are proud to
                                                                                                        contribute in the near term to PepsiCo’s goal
                                                                                                        of transitioning to 100% renewable energy for
                                                                                                        company-owned operations globally by 2030.
                                                                                                                                                                           Energy
                                                                                                                                                                           Boost
                                                                                                                                                                        We plan to boost our
                                                                                                                                                                      inputs from solar energy
                                                                                                                                                                        five-fold to 10% over
                                                                                                                                                                          the next two years

                                                                                                        1 Data based on Jul20-Feb21.
Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
6   SodaStream Environmental Overview 2020

    Our Carbon Footprint and Beyond
                                                                                                    84.9%
                                                                                               reduction in single-use
                                                                                                plastic by SodaStream
                                                                                                     consumers1

                         76.3%                                               Reusable
                   of consumers became                                       Closed-loop
                   more environmentally                                 cylinders are reused
                 conscious after purchasing                               many times over
                       a SodaStream1                                                                                 17.1
                                                                                                                   kgCO2e
                                                                                                                  cradle-to-gate
                                                                                                                footprint (kgCO2e
                                                       Thousands                                                per kit over whole          0.044
                                                       of bottles saved                                              lifespan)             kgCO2e
                                                       by 1 SodaStream
                                                                                                                                       footprint per 1L
                                                       bottle over 4 years
                                                                                                                                       of drink from the
                                                                                                                                        Fizzi/Spirit kit2
                      0.059
                     kgCO2e
                   footprint per 1L
                  of drink from the
                      DUO kit2
                                       28.5
                                      kgCO2e
                                    cradle-to-gate
                                  footprint (kgCO2e
                                  per kit over whole
                                       lifespan)

                                                                                                                           1B
                                                                                                                             ased on a customer survey conducted
                                                                                                                            in the UK and USA 2021.
                                                                                                                           2C
                                                                                                                             radle-to-gate footprint analysis certified by the
                                                                                                                            Carbon Trust.
Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
7     SodaStream Environmental Overview 2020

Activism – Raising Our Voice for the Planet
Sustainability is in our DNA and we are               Earth Day and World Cleanup Day                       AUSTRALIA                                                       GERMANY AND AUSTRIA
committed to using our voice and brand to
                                                      Every year on Earth Day and World Cleanup             “Ocean Heroes” school program                                   World Schlepp-Championship
advocate for change. As a company that is often
at the forefront with innovative ideas and actions,
                                                      Day, millions of people and thousands of              In 2019, we launched “Ocean Heroes” in Australia,               Virtual Run
                                                      organizations around the world pledge to support      a free half-day primary school program developed
we make a point to be leaders in matters that                                                                                                                               In 2020, we organized the Schlepp-Championship’s
                                                      a cleaner, healthier planet and a more sustainable    and delivered by sustainability professionals, to
are important to us.                                                                                                                                                        first Virtual Run for the Environment (a socially
                                                      future. At SodaStream, we make our contribution       engage and inform children about the potential                  distanced adaptation of our 2019 event).
                                                      in different ways: local environmental initiatives,   impact of single-use plastic. The interactive
Global campaigns                                      financial contributions to nongovernmental            program includes an immersive underwater
                                                                                                                                                                            Hundreds of participants from all over Germany
                                                                                                                                                                            and Austria took part in this challenge. For every
Our environmental message is integral to all          organizations (NGOs) and educational campaigns.       virtual reality experience, engaging and thought-               kilometer “schlepped,” SodaStream made a
our communication campaigns. During the                                                                     provoking group discussions, and hands-on
                                                      When the COVID-19 pandemic made access                                                                                financial contribution to the NGO OceanCare.
September climate strike, we shut down all our                                                              activities showing how to repurpose plastic waste.
                                                      to water and good hygiene more important than
facilities and operations for 24 hours, with our                                                                                                                            CANADA
                                                      ever, we contributed to the international NGO         AUSTRIA
website streaming the message: “Global Climate
                                                      WaterAid. Our short film One Home, One Planet                                                                         The Great Gulp Campaign
Strike in Solidarity with the Young Generation for
                                                      reached more than 30 million people, sharing          Hasta la vista, goodbye
a Better Future.” Toward the 2020 holiday season,                                                                                                                           Also in 2020, we sponsored the Great Gulp
we released an environmental advert featuring
                                                      the message to stay at home and take better           to plastic!                                                     Campaign across Canada, raising awareness
                                                      care both of each other and our planet.               In 2019, we joined Arnold Schwarzenegger,                       in schools, offices and homes of the importance
the artist Snoop Dogg raising awareness of
the “Small Things” people can do to live a more       In France, we partnered with local NGO No             Greta Thunberg, Werner Boote1 and other                         of drinking water and reducing single-use
sustainable lifestyle.                                Plastic in My Sea to raise funds in support of        experts making real proposals for plastic                       plastic waste.
                                                      its activities. We also organized local cleanup       reduction at the R20 Austrian World Summit.
                                                                                                            In addition, throughout the two-day summit,                     SWEDEN
                                                      initiatives involving our employees, their families
                                                      and the public.                                       we displayed an eye-catching exhibit of a                       Non-Plastic Waste Innovation
                                                                                                            three-meter-high globe drowning in a sea of
                                                                                                            single-use plastic bottles (called “The Sunken
                                                                                                                                                                            of the Year
                                                                                                            World”) in front of the Hofburg, seat of the                    In 2019, SodaStream launched the Non-Plastic
                                                                                                            Austrian government in Vienna.                                  Waste Innovation of the Year competition for
                                                                                                                                                                            the very first time in Sweden. The purpose of
                                                                                                            FRANCE                                                          the competition was to promote young Swedes’
                                                                                                                                                                            entrepreneurial spirit and drive interest in
                                                                                                            Mont-Blanc Ultra Trail                                          sustainability solutions for the single-use plastic
                                                                                                            In 2019 in France, we partnered with the                        waste problem. Hundreds of participants from
                                                                                                            organizers of the Mont-Blanc Ultra Trail to                     all over the country submitted ideas. For the
                                                                                                            reduce the use of plastic bottles both on the                   2021 edition of the competition, SodaStream
                                                                                                            Trail and at sporting events in general. During                 Nordics will scale the competition to Norway
                                                                                                            the event, refreshment stations were equipped                   and Denmark.
                                                                                                            with SodaStream machines and reusable bottles,
                                                                                                            eliminating the need for single-use plastic bottles.

                                                                                                            1 The Austrian film director who presented the documentary film Plastic Planet in 2009.
Our Planet Protecting the only bubble that matters - SodaStream Environmental Overview 2020
Go to our website and learn
more about our activity and
how you can save the planet.

sodastream.com

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