Climate Change: Mitigation and AdaptationThe Coca-Cola Company’s Approach

Joe Rozza, P.E., BCEEGlobal Water Resource Sustainability ManagerThe Coca-Cola CompanyEnvironment & Water ResourcesAtlanta, Georgia 30301, USA+01 404 676 4764jrozza@na.ko.com

The Coca-Cola Company by The Numbers

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200 Countries300+ Franchise Bottlers400+ Brands Worldwide900+ Manufacturing Plants1,500,000,000 Moments of Happiness for Consumers Each Day

2020: Water Megatrends and Effects

EFFECTS1. 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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4

A Global Water Scarcity Crisis

Water Availability(m3/capita/year)

ExtremeScarcity

Scarcity Stress Adequate SurplusAbundant

Mitigation & Adaptation: The Coca-Cola Company

Mitigation Adaptation

UnderstandFootprint

UnderstandRisk Exposure

Set Goals

ManageMetrics

DevelopStrategies

Mitigation: Climate Protect/Energy Management

Mitigation: Sustainable Packaging

Adaptation: Global Water Stewardship

3.09

4.86

14.5

15

0 10 20

Fleet

ManufacturingOperations

Packaging

Sales and MarketingEquipment

Estimated Systemwide Greenhouse Gas Emissions(million metric tons of CO2-eq)Agricultural

Inputs Not Yet Included

What is Our Carbon Footprint?

D

Contributions to CO2 Footprint from Primary Production and Transport Stages (Preliminary)

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

Cok

e 2L

Cok

e 6

pack

Cok

e 50

0ml

diet

Cok

e 2L

diet

Cok

e 6

pack

diet

Cok

e 50

0ml

Fan

ta 2

L

Fan

ta 6

pac

k

Fan

ta 5

00m

l

Cok

e 2L

Cok

e 6

pack

Cok

e 50

0ml

diet

Cok

e 2L

diet

Cok

e 6

pack

diet

Cok

e 50

0ml

Fan

ta 2

L

Fan

ta 6

pac

k

Fan

ta 5

00m

l

Hammersmith - Broadway Hammersmith - SB Road

kg C

O2

Sugar (fromsugar beet)

SecondaryPackaging

PrimaryPackaging

ConcentrateFacility EnergyInput

Transport(Concentrate toBottler)

Bottling EnergyInput

Transport(Bottler to Store)

Carbon Footprint Analysis

Climate Protection & Energy Management Goals

Grow the business, not the carbon system-wide AND achieve a 5 percent reduction in developed (Annex I) countries

Take action to improve energy efficiency and reduce emission of greenhouse gases in cold drink equipment with focus on conversion to HFC-free insulation materials and refrigerant, plus improving energy efficiency

MANUFACTURING

REFRIGERATION EQUIPMENT

Climate Protection and Energy Management

Grow the business, not the carbon in our manufacturing operations. Improve the energy efficiency and reduce emission of GHGs in cold drink equipment.

PackagingGoals

Climate Benefits through Reduce, Recover and Reuse

Energy Management in ManufacturingSignificant Productivity Benefits

Energy Management in ManufacturingSignificant Productivity Benefits

20%

10 %

Compressed Air

Energy Breakout

Lighting

5%

20%Process Cooling

20%Process Heating

10 %

15 %

Production

Miscellaneous

HVAC

25-50%

20-30%

20-30%

10-20%

10-20%

5-10%

5-10%

SavingsPotential

Overall Savings20%

20% Energy Use Ratio Improvement

and a 22% reduction in CO2 emissions

while providing a 17+% IRR.

Our Sustainable Packaging Goals

TCCC strives to use the least amount of raw materials and energy required to meet customer and consumer packaging needs.

TCCC is committed to “closing the loop” on our packaging by advancing cost-effective ways to return recycled materials to the production process for reuse.

TCCC helps to increase the recovery of used packaging materials around the world by supporting our own collection operations, national recovery organizations and strategic recovery partners.

REDUCE

REUSE

RECOVER

Sustainable Packaging

We envision a world in which our packaging is no longer seen as waste, but as a valuable resource for future use. One of the ways we are taking action to realize this vision is our goal to recover or reuse 100 percent of the equivalent bottles and cans we place in market.

Risk Management and Water Resource Sustainability

•Risk Assessment Participation: 840 Plants All BUs, All T2T Bottlers

•Briefed CEO and BOD (PPCR Council)

•Reports to all Group/BU Presidents, CEOs of Top Franchise Bottlers

•Validation, Alignment & Planning Meetings with Key Directors and Managers (300+ Individuals)

Communications, Engagement &

Alignment

•Current Operations:•Source

Water Vulnerability Assessments

•Provide Decision Support for Locally Relevant Priorities

•Source Water Protection Plans

•Plant, BU, Bottler, Cross Functional Execution

•Infrastructure Planning: SC Rationalization / Greenfields

•Connect to Annual Business Planning

Execution

•Revised Corporate Standard

•Updated Governance Model

•Tools, Guidance, Training

•Support Procuring Professional Services

•Global Tracking System

Governance & Capability

Development

Capability

Audit Protocol

Standard

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GIS/Spatial Analysis: Using Technology to Understand Risk Exposure

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13

Risk Visualization Tools

Global Water Stewardship Strategic Framework Enabling Vision 2020

Plant Performanc

e

Watershed Protection

Sustainable Communiti

es

Global Awareness

& Partnership

s

14Enable

Act

Global LeadersSustainable Water Use

Efficiency/WastewaterRisk Mgt

Source Water Protection

Community Water Partnerships

ReplenishLeadership

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.

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Replenish: Communities and Watersheds

We are engaged in 250 community water projects in

70 countries to protect and preserve water

resources and help enable greater access to water

and sanitation. Our partners include USAID, UN-

HABITAT, CARE, UNDP, TNC, WWF, local

governments and implementing NGOs.

• “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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Thank You