The Coca-Cola Company's
Observations, Responses
and Outlook in a Changing
Climate
Greg Koch
Director, Global Water Stewardship
Office of Sustainability, The Coca-Cola Company
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
Water Risks in Manufacturing Locations
• Climate change
• Regulatory limits
• Social acceptance
Water Risks in Agricultural Supply Chain
Classified -- Internal Use
2
Global Water Stress
Classified - Internal use
3
2020: Water Megatrends and Effects
MEGATRENDS
POPULATION GROWTH
Expected to increase by
1.5 - 8 billion by 2020
CLIMATE CHANGE
0.8°C temperature
increase by 2020
GLOBAL DEVELOPMENT
Dramatic increase in
number of developed
economies
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
4
2020 Water Stress: Rate of Change
5
Classified - Internal use
Classifie - Internal Use Only
THIS IS NOT ONLY A
DEVELOPING WORLD
ISSUE
LAKE MEAD, NEVADA
Classified - Internal Use Only
Classified - Internal use
Recent Events within the Coca-Cola system
Plant
Closure
•Chronic Water Stress
•Drought
•Community Connection
•Local WRM Capacity
Find New
Water Source
•Water Quality
•Local WRM Capacity
•Local Policy
Water Supply
Reduction
•Increased Local Development
•Infrastructure Funding Policy
•Economic Scarcity
More Stringent
Wastewater
Treatment
Requirements
•Poor Local Water Quality
•Social Reaction
•Political Reaction
•New Policy
Classified - Internal use
10
Global Risk Assessment and Analytics
2010 System-wide Water Risk Summary in Manufacturing
Classified -- Internal Use 11
Why Are We On This Journey?
Water is:
“
Our business can only
be as healthy as the local
communities where we
operate; access to clean
water is one of the most
important barometers
of a community’s health.
”
Muhtar Kent
Chairman & CEO
The Coca-Cola Company
– The main ingredient in all of
our beverages and essential to
our manufacturing processes
– A life-sustaining resource for
the communities and
ecosystems that make any
endeavor possible
– A key component of many of
our ingredients, including sugar
and juices
– Fundamental to our markets
(non-export)
12
Global Water Stewardship Strategic Framework
© Copyright 2010 The Coca-Cola Company. Confidential
13
From Risk Analysis to Action
TCCC Risk
Water Resource Sustainability
Water resources under stress
Supply Reliability
Decreased water availability
Local Social
Adverse social climate
Ecological Health
Aquatic Ecosystems &
Species
Terrestrial/Riparian
Ecosystems & Species
Human Health & Well-Being
Safe Drinking
Water
Food
Availability
Sanitation
Economics
Specific Activities
Watershed
Protection
Water Access &
Sanitation
Water for
Productive Use
Education &
Awareness
Classified -- Internal Use 14
To Date, We Have 468 Community Water Programs in over 100
Countries Replenishing 52% of Product Volume
Includes Support For:
 Access to water and sanitation
 Education and awareness
 Water for productive use
 Watershed protection
15
Food-Water-Energy Nexus
Water, Energy and Food:
All Three are at the Heart of the Sustainability Challenge
CLIMATE CHANGE
FOOD
• 0.8oC temperature increase by 2020
• Manifestation in water
• Unabated, climate change could cost the
world at least 5% in GDP each year
• If current policies are maintained, global
energy demands are expected to grow
by as much as 55% through 2030 and
further stress water resources
POPULATION GROWTH
• Expected to increase by 1.5 billion
to 8 billion by 2020
• By 2030 the number of urban
dwellers is expected to be about
1.8 billion more than in 2005 and
to constitute about 60% of the
world’s population
ENERGY
WATER
GLOBAL DEVELOPMENT
• Dramatic increase in number
of developed economies
• Surging middle class
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Southeast Asia, Baseline Water Stress and Power Plants
Southeast Asia, Baseline Water Stress and Power Plants
Southeast Asia, Long Term Change in Water Stress and Power Plants
(2025, IPCC Scenario A1B)
Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture
Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture
Southeast Asia, Change in Water Stress by 2025 in areas with Irrigated Agriculture
(IPCC Scenario A1B)