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Climate Change: Mitigation and Adaptation The Coca-Cola Company’s Approach Joe Rozza, P.E., BCEE Global Water Resource Sustainability Manager The Coca-Cola Company Environment & Water Resources Atlanta, Georgia 30301, USA +01 404 676 4764 [email protected] The Coca-Cola Company by The Numbers 200 Countries 300+ Franchise Bottlers 400+ Brands Worldwide 900+ Manufacturing Plants 1,500,000,000 Moments of Happiness for Consumers Each Day 2 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 3 A Global Water Scarcity Crisis Extreme Scarcity Scarcity Stress Adequate Abundant Water Availability(m3/capita/year) Surplus 4 Mitigation & Adaptation: The Coca-Cola Company Mitigation Adaptation Understand Footprint Understand Risk Exposure Set Goals Develop Strategies Mitigation: Climate Protect/Energy Management Mitigation: Sustainable Packaging Adaptation: Global Water Stewardship Manage Metrics What is Our Carbon Footprint? Sales and Marketing Equipment 15 Packaging 14.5 Manufacturing Operations 4.86 Fleet 3.09 0 Agricultural Inputs Not Yet Included 10 Estimated Systemwide Greenhouse Gas Emissions (million metric tons of CO2-eq) 20 Carbon Footprint Analysis Contributions to CO2 Footprint from Primary Production and Transport Stages (Preliminary) Sugar (from sugar beet) 0.700 0.600 Secondary Packaging 0.500 0.400 Concentrate Facility Energy Input 0.300 0.200 Transport (Concentrate to Bottler) 0.100 Bottling Energy Input Hammersmith - Broadway Hammersmith - SB Road Fanta 500ml Fanta 6 pack Fanta 2L diet Coke 500ml diet Coke 6 pack diet Coke 2L Coke 500ml Coke 6 pack Coke 2L Fanta 500ml Fanta 6 pack Fanta 2L diet Coke 500ml diet Coke 6 pack diet Coke 2L Coke 500ml Coke 6 pack 0.000 Coke 2L kg CO2 Primary Packaging Transport (Bottler to Store) D Climate Protection & Energy Management Goals 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. MANUFACTURING Grow the business, not the carbon system-wide AND achieve a 5 percent reduction in developed (Annex I) countries REFRIGERATION EQUIPMENT 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 Packaging Goals Climate Benefits through Reduce, Recover and Reuse Energy Management in Manufacturing Significant Productivity Benefits Energy Breakout Savings Potential Lighting 10 % 25-50% Compressed Air 20% 20-30% Process Cooling 20% 20-30% Process Heating 20% 10-20% HVAC 5% 10-20% Production 10 % 5-10% Miscellaneous 15 % 5-10% Overall Savings 20% 20% Energy Use Ratio Improvement and a 22% reduction in CO2 emissions while providing a 17+% IRR. Our Sustainable Packaging Goals 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. REDUCE RECOVER REUSE TCCC strives to use the least amount of raw materials and energy required to meet customer and consumer packaging needs. 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. 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. Risk Management and Water Resource Sustainability Communications, Engagement & Alignment Execution Governance & Capability Development • 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) • 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 • Revised Corporate Standard • Updated Governance Model • Tools, Guidance, Training • Support Procuring Professional Services • Global Tracking System Standard Capability Audit Protocol 11 GIS/Spatial Analysis: Using Technology to Understand Risk Exposure 12 Risk Visualization Tools 13 Global Water Stewardship Strategic Framework Enabling Vision 2020 Global Leaders Sustainable Water Use Act Efficiency/Wastewater Risk Mgt Plant Performance Source Water Protection Watershed Protection Community Water Partnerships Replenish Sustainable Communities Enable Leadership Global Awareness & Partnerships 14 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. 15 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 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, UNHABITAT, CARE, UNDP, TNC, WWF, local governments and implementing NGOs. 16 Thank You