Global Water Stewardship and The Coca

Global Water Stewardship and

The Coca-Cola Company

©2005 Cola-Cola Company. All rights Reserved

GEF International Waters Conference

Salvador, Brazil

June 24, 2005

Dr.Daniel Vermeer

Director, Global Water Initiative

The Coca-Cola Company

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The Coca-Cola Company

200

300

400

900

1,500,000,000

Countries we operate in

Franchise bottling partners

Number of brands

Manufacturing plants

Servings per day

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Headlines to the Bottom Line

Business’ Thirst for Water Is Unsated

August 23, 2004

On World Water Day, One Billion

People Still Lack a Clean Supply

March 23, 2005

India: Fluid State of

Water Battles

January 31, 2005

-Central Coast, Australia

Bottled Water Plant

Runs into Opposition

April 7, 2005

Nine million Chinese Face

Drinking-Water Shortage

April 3, 2005

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Sub-national Water Availability: 2003

Extreme Scarcity

<500

Scarcity

500-1,000

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Stress

1,000-1,700

Adequate

1,700-4,000

Abundant

4,000-10,000 m 3 /person/year

Surplus

>10,000

Ocean/

Inland Water

No Data

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Freshwater in Crisis

“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.

“ 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.

©2005 Cola-Cola Company. All rights Reserved

5

Our Global Water Initiative

Assess and mitigate current system risks

Build collaborative water strategy for the system

Design & implement solutions

Establish platforms for leadership

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6

Risk Assessment methodology

3 lines of analysis

– Geo-spatial analysis

3 kinds of outputs

– Customized maps

– Comprehensive water survey and quantitative risk modelling

– Holistic assessment

– Risk profiles

14

12

10

8

6

4

2

0

1.5

1.0

0.5

0.0

3.0

2.5

2.0

Division bottling plants - risk profile

High Risk

Moderate Risk

Low Risk

Short-term target

Medium-term target

– Risk Reports

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Geospatial Analysis – E.g. Africa Divisions

Plant Locations, Production, and Water Use Ratio Relative to

Annual Renewable Freshwater Supply Per Capita

Tunisia

Morocco

Algeria

Libya

Egypt

Senegal

Mauritania

Mali Niger

Chad

Sudan

Guinea

Sierra

Leone

Liberia

Côte

D’Ivoire

Ghana

Nigeria

Cameroon

Gabon

Rep of the Congo

C. A. R.

Ethiopia

Kenya

Dem. Rep.

of the

Congo

Tanzania

Eritrea

Djibouti

Comoros

Angola

Zambia

Zimbabwe

Namibia

Botswana

Madagascar

Mozambique

South

Africa

Sources: ISciences, LLC;

University of New Hampshire; and,

Oak Ridge National Laboratory

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Process inputs - 2005 Water Risk Survey

Survey – Table of Contents

1.0 Production Facility Location and

Management

2.0 Water Supply

3.0 Water Infrastructure Issues

4.0 Water Use and Production

5.0 Water Quality and Treatment

6.0 Wastewater

7.0 Environment and Social Context

8.0 Conclusion and Feedback

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Background on risk categories

• Watershed –sustainability and quality of water resources for the region.

RISK MODEL

WATERSHED

SUPPLY

RELIABILITY

COMPLIANCE

SUPPLY

ECONOMICS

EFFICIENCY

SOCIAL &

COMPETITIVE

CONTEXT

©2005 Cola-Cola Company. All rights Reserved

• Supply Reliability – region’s institutional capacity to provide water to the industrial, agricultural, and domestic users.

• Efficiency – ability to sufficiently maximize the available water resources in meeting the needs of all users.

• Supply Economics – direct costs of water, including municipal water cost, fees, taxes, treatment, penalties, and related loss of production/revenue. Trends in water pricing are noted where readily identifiable.

• Compliance –compliance with Company and external standards and regulations are analyzed. Trends in water regulation and key legislation are noted where readily available.

• Social/Competitive – awareness of and conflict regarding water issues in a specified region, including the likelihood of targeted TCCC activity.

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Division #1 Risk Profile – risk contributors

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Our Water Stewardship Destination

Be the most efficient industrial water user in our peer class.

Improve Plant

Performance

Launch

Community

Initiatives

Help Protect

Watersheds

Make a

Global

Difference

Help enable access to clean drinking water in underserved communities where we operate.

Support the protection of watersheds in waterstressed regions where we operate.

Work with others to mobilize the International Community.

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Illustrative Community & Watershed Projects

SBUs

AFRICA

WATERSHED

Mau Forest reforestation –WWF

(Kenya)

WWF Zambezi

Nairobi River Basin –

UNEP (Kenya)

EFFICIENCY/

CONSERVATION

EDUCATION/

AWARENESS

HEALTH/

SANITATION

Safe Water System & community health & sanitation (Kenya)

ACCESS/ INFRA-

STRUCTURE

Roundabouts (SA)

GDA/TCCC projects

(Mali; Egypt)

Water, sanitation, sustainable agriculture

(Kenya)

African Devt Bank/TCCC projects (TBD)

ASIA

Mekong - WWF

Rainwater harvesting

(India)

EEME

LA

Danube

Mediterranean (incl

Spanish Valencia) o X-list E/A

Bolivia

Amazon (proposed)

Brazil Eco-region -

WWF

Guatemala

Watershed - WWF

NA

SE Rivers/River

Network

Ginnie Springs watershed model

GLOBAL

WWF Freshwater

Map

©2005 Cola-Cola Company. All rights Reserved

WaterSavers - WWF

Water Supply CD-ROM -

WWF

Awareness campaign

(Spain)

USAID/GDA - Global Partnership

Bawadi restoration

(India)

Community Access

(Vietnam)

WATER

RESOURCE

MGMT.

Water resource mgmt. (Nigeria)

Water efficient technologies (India proposed)

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TSUNAMI RECOVERY - WATER SYSTEM

DEVELOPMENT & REHABILITATION

Indonesia/Maldives/Sri Lanka/Thailand

PARTNERS: UN Foundation

UN Agencies (UNDP, UNICEF)

Coca-Cola Divisions and Bottlers

Local/National Governments

Local Communities and Stakeholders

PILOT PROJECTS (Under development):

– Thailand: Water Resources Management on Lanta Island

• Construction of check dams and irrigation ponds

• Household wastewater treatment

• Upgrade reservoir to distribute potable metered water

– Indonesia: Hydrological survey of freshwater resources followed by holistic water/sanitation initiatives in select communities

– Sri Lanka: Water/sanitation initiatives in Sustainable Communities program in conflict north and eastern regions affected by tsunami

– Maldives: Water/sanitation projects as part of Adopt an Island program

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RAINWATER HARVESTING

India

PARTNERS: Central & State Groundwater Authority

Local Municipal government

Village Committees

Local NGOs

PROGRAM ELEMENTS:

– Rainwater harvesting – NGO specialists execute project

– Surface runoff: Check dams, Johads (ponds),

Wells, Roads, storm water drains etc

– Rooftop runoff: with or without catching surface run offs

BENEFICIARIES :

– Over 100,000 people benefit by either increased availability of ground water or reduced decline in ground water level. Many villagers/ community also benefit from awareness campaigns

©2005 Cola-Cola Company. All rights Reserved

Rainwater Harvesting

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BAWADI RECONSTRUCTION

(Step Well, Surface Water Reservoir)

India

Before

PARTNERS : Rajasthan Ground Water Dept.

Village Committee

Local community

NGOs

PROGRAM ELEMENTS:

– Repairing embankments

– Reworking catchments

– Restoring civil structures

– Desilting over 4 underground floors

During

After

BENEFICIARIES:

– 3000 local villagers directly benefit from using water for daily needs

– Thousands more indirectly benefit

Baawdi Reconstruction

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COMMUNITY WATER & SANITATION

Mali

PARTNERS: USAID

Local Bottler

Minister for Environment & Sanitation

West Africa Water Initiative

Local community

PROGRAM ELEMENTS:

– System investment in wastewater treatment

– Provision of community access to clean water for drinking and household garden irrigation

– Education and awareness raising programs on water, hygiene, sanitation, health

BENEFICIARIES:

– Residents of Bamako, Mali

©2005 Cola-Cola Company. All rights Reserved

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WATERSHED PROTECTION

Bolivia

PARTNERS: USAID

Coca-Cola Bottling partners

Protecci ón del Medio Ambiente Tarija

Centrode Promocion de Tacnologias Sostenibles

Local community

PROGRAM ELEMENTS:

– Support local conservation efforts

– Introduce best management practices in agriculture and clean production options in industry

– Develop new local policy initiatives

– Increase stakeholder participation

BENEFICIARIES:

– City of Tarija and nearby communities serviced by the

Sama Biological Reserve (~145,000 people)

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Potential Partnership Opportunities

Get to know each other and build trust.

Identify and evaluate specific regional projects for collaboration.

Understand and leverage each other’s assets around shared objectives.

©2005 Cola-Cola Company. All rights Reserved

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Aspiring to be a responsible global citizen that makes a difference

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