Water Sustainability:

The Coca-Cola Story From Risks to Opportunities

Paul T. Bowen, Ph.D.

Director, Sustainable Operations

The Coca-Cola Company

pbowen@coca-cola.com 404.676.0132

2014 South Carolina Environmental Conference

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Risks to Opportunities

• The Coca-Cola Company

• How our water journey began

• Where we are now

• Goals and the future

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6. What use generally consumes the most water? a. Domestic/Residential b. Commercial c. Agricultural d. Industrial

7. Water is the only thing found naturally on earth as a

gas, liquid, and a solid. a. True b. False

8. What percentage of the hospital beds in the world are

occupied by patients suffering from diseases associated with lack of access to safe drinking water, inadequate sanitation and poor hygiene

a. 40% b. 50% c. 60% d. 70%

9. The leading cause of death in children under 5 is

a. AIDS b. Malaria c. Diarrhea d. Measles

10. What city has the lowest average water bill for a family

of four using 150 gpd? a. Charlotte b. Chicago c. Dallas d. Seattle

1. What has the highest percentage of water? a. Coca-Cola b. The human body c. The surface of the earth d. Blood

2. What percentage of the world’s water is surface water?

a. 70% b. 75% c. 80% d. 85%

3. To get water, most of the world’s people

a. Turn on the tap in their home b. Use a central tap in their village c. Walk 3 – 5 miles to a water source d. Most don’t have access to water

4. What activity in the house uses the most water

a. Leaks b. washing clothes c. flushing toilets d. Taking showers

5. What percent dehydration causes thirst

a. 2 b. 4 c. 6 d. 8

14% 22%

27%

17%

95% 66%

75% 92%

Test Your Knowledge

$117.33

$78.24

$65.30 $36.18

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WHO USES THE MOST WATER PER YEAR? (Can you match each with their water use?)

Atlanta

Chicago

Charlotte

Los Angeles

Paris

Phoenix

The Coca-Cola Company

31,244,000,000 gal

41,245,000,000 gal

53,032,529,000gal

82,686,000,000 gal

161,695,000,000 gal

275,000,000,000 gal

876,000,000,000 gal

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We are the world’s

largest non-

alcoholic

beverage company

with the world’s

most recognized

brand.

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The Coca-Cola Company in context

200+

300+

500+

900+

2,800+

1,800,000,000

Countries we operate in

Franchise bottling partners

Number of brands, worldwide

Manufacturing plants

Products worldwide

Moments of Happiness for consumers each day

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Our Business At A Glance

Ingredients & Bulk

Packaging

Concentrate Plants

Ingredients & Packaging

Bottling Plants Warehouse

Transport

Vending Machines & Coolers

Customers

Consumers

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“As we enter the Twenty-First Century a

global water crisis is threatening the security,

stability and environmental sustainability of

all nations, particularly those in the

developing world.” - UN World Water Development Report, 2003.

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“Water is the main ingredient

in every product… and is also

a limited natural resource

facing unprecedented

challenges from over-

exploitation, increasing

pollution and poor

management.”

- The Coca Cola Company SEC 10-K

Report, 2004 and subsequent years

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Socio-Economic Water Stress: Today’s Conditions

© Copyright 2010 The Coca-Cola Company. Confidential

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Committing to Water Stewardship

Being a responsible global citizen that makes a difference:

•Water Stewardship

•Packaging Leadership

•Locally relevant initiatives

• 2005 brought the strategic vision and direction of Manifesto for Growth.

• This added a renewed corporate philosophy on water stewardship to

complement the water risk mitigation work.

• MFG further solidified the need to integrate water work across all

functions (e.g., technical, PA/C, marketing, legal)

SUSTAINABLE GROWTH

Planet

Profit

People

Partners Portfolio

Productivity

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Goals for Water Stewardship - 2006

Improve Plant

Performance

Launch

Community

Initiatives

Help Protect

Watersheds

Make a Global

Difference Support the protection of

watersheds in water-stressed

regions where we operate

Help enable equitable

access to clean

drinking water in

underserved

communities where we

operate

Best-in-class in water

use efficiency &

compliance on

wastewater

management

Help mobilize the International

Community

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Strategic Framework - 2008

Plant

Performance

Watershed Protection

Sustainable Communities

Global Awareness &

Action

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Summary of Results 2008/09 Global Water Risk Assessment

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Global Water Stewardship Strategic Framework - 2010

Plant Performance

Watershed Protection

Sustainable Communities

Global Awareness & Partnerships

Enable

Act

Global Leaders

Sustainable Water Use

Efficiency/Wastewater

Risk Mgt

SVA

SWP

CWP

Replenish Leadership

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Global Leader in Sustainable Water Use

Plant Performance

Watershed Protection

Sustainable Communities

Global Awareness & Partnerships

WATER EFFICIENCY

WASTEWATER TREATMENT

SOURCE WATER PROTECTION / WATER RESOURCE SUSTAINABILITY

REPLENISH / COMMUNITY WATER PARTNERSHIPS

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Performance Targets

Our water conservation goal is to return to communities and nature an amount of water equivalent to what we use in all of our beverages and their production.

Reduce Recycle Replenish

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Goal: Be the most efficient water user among peer companies. Reduce water consumption by 20% by 2012 (baseline 2004).

Progress: Successfully met goal of 20% reduction in WUR

Reduce

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Goal: Align our entire global system with stringent wastewater treatment standards which require returning all water used in our manufacturing processes to the environment at a level that supports aquatic life by the end of 2010

Progress: With 97% of operations aligned with the standard, we are on track to achieve compliance with our wastewater treatment requirement by the end of 2013

Issues: Permits, Civil Unrest, Finances, Acquisitions, Weather

Recycle

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Replenish Communities and Watersheds

• “Replenish” is the manifestation of our community and watershed partnership work, with

the aim to offset the water we use in finished products

• Locally relevant projects that support communities and nature, from source water

protection implementation to rainwater harvesting projects

- = Total amount

of water

used in

Manufacturing

Treated

Wastewater

Product Volume

and Amount to

Replenish

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Goal: Expand global support of healthy watersheds and sustainable community water partnerships.

Progress: Over 468 projects with over 530 partners investing over $250M in over 100 countries

Replenish

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2020: Water Megatrends and Effects

EFFECTS

1. 2/3 of world population in severe water stress

2. 1/3 of world land area in severe water stress

3. Significant water quality degradation

4. Precipitation patterns change: more droughts

and floods

5. Significant increase in competition for

freshwater

6. More aggressive allocation , increased prices,

conflict potential

7. Two billion more urban residents by 2030

8. Variable adaptation by public sector

9. Water infrastructure needs require $1 trillion+

between now and 2025

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Water is Biggest Part of Our Supply

Chain and it is Under Growing Stress

• Physical availability – surface

or groundwater – and the

sustainability of those sources

• Infrastructure existence,

pressure, service area, metering

• Pricing – too cheap or too

expensive

• Droughts

• Competing use and increased

demand from more people and

increased GDP

• Climate change

• Regulatory limits

• Social acceptance

Water Risks in Manufacturing Locations

Water Risks in Agricultural Supply Chain

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Global Water Stress: Today vs. 2020

Source: The Coca-Cola Company, 2011

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Mill

ions o

f K

ilolit

ers

Enabling Vision 2020:

Accessing Sufficient Water

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Enabling Vision 2020: Global Water Stewardship Strategic Framework

Plant

Performance

Watershed Protection

Sustainable

Communities

Global

Awareness & Partnerships

Efficiency/Wastewater

Risk Mgt

SVA

SWP

CWP

Replenish Leadership

ACT

Global Leaders Sustainable Water Use

ENABLE

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Enabling Vision 2020: Global Water Stewardship Strategic Framework

E2E Value Chain Water

Sustainability Performance

Watershed Protection

Sustainable

Communities

Global

Awareness & Partnerships

Efficiency/Wastewater

Risk Mgt

SVA

SWP

CWP

Replenish Leadership

ACT

Global Leaders Sustainable Water Use

ENABLE

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Enabling Vision 2020: Global Water Stewardship Strategic Framework

E2E Value Chain Water

Sustainability Performance

Watershed Protection

Sustainable

Communities

Global

Awareness & Partnerships

Agriculture SC

Water

Sustainability

Manufacturing

Plant

Performance

Customer &

Consumer

Engagement

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Metrics and Targets for 2020

Metric Goal

Water Efficiency

1.7 WUR Global : 25% improvement

(2010 baseline, 2.26)

Water Reuse

(Internal)

Stage 1: Establish baseline

Stage 2: Set quantifiable targets

Recycle (Return) Wastewater Treatment

Maintain 100% Compliance

Focus on maturity of governance toward total

compliance with discharge standards and storm

water management.

Replenish Meet existing full balance goal

While meeting goals of doubling profitability & volume

and being a global leader in sustainable water use.

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500+ 100+

$270+M

206

1.83M

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108.5B Liters of

water

replenished

in 2013

4.4M Metric tons of

sediment reduced in

runoff during 2013

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62% 62% of

33%

100%

99% 99%

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Risks to Opportunities

• The Coca-Cola Company

• How our water journey began

• Where we are now

• Goals and the future

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Some see the bottle half empty…

I choose to see it half full!

Thank you.