1. Future 500 – New
Incentives for Industry
to P t t Water
t Protect W t
Building N
B ildi New ClClean W
Water
Networks in China: Challenges
and Opportunities for Protecting
Lake Tai
Matt Turner, Director, Water
Initiative (mturner@future500.org)
© 2009 Future 500

2. WHAT WE’LL COVER TODAY
 Who is Future 500?
 Case Study: Coca-Cola’s
Water Resource Management
Policies and Practices in India
 Coca-Cola’s Global Water
Stewardship
 What’s next for Industry and
Water?
© 2009 Future 500 2

3. Forges links between corporations and
Stakeholders to advance the triple bottom line
Stakeholders to advance the triple bottom line
Leadership
Trust
SAN FRANCISCO
Performance
TOKYO
BEIJING Amazon Defense Front
© 2009 Future 500

4. Future 500 Engages Stakeholders
on Four Leadership Issues
on Four Leadership Issues
GLOBAL STAKEHOLDER INITIATIVE (GSI)
C
CLIMATE WATER RESOURCES
SOU C S FACTORY LABOR
C O O
© 2009 Future 500 4

5. Future 500 Water Initiative
“Closes the Gap”
Closes the Gap
FACTS
Trust
Performance
KNOWLEDGE
A
© 2009 Future 500 5

6. Case Study: Coca-Cola’s Water
Management Policies and Practices in India
Harry O
y Ott:
 Future 500, Snr Fellow & Director of
Strategic Water Stewardship
 Retired from Coca-Cola company as
Director of Strategic Water Initiatives
 Spearheaded TCCC’s work concerning
stakeholder concerns over water in
India
 Led the development and
implementation of sustainable water
resources management
© 2009 Future 500 6

7. Case Study: Coca-Cola stakeholders challenges
in India
“Depletion of water table … is devastating local communities.”
Indians are " tti poisoned b pesticides," and CSE t t show C k
I di "getting i d by ti id " d tests h Coke,
Pepsi, and Nestle contribute to this toxic assault – Sunita Narain,
Business Week, 5-31-07
“Puts profit, greed, and exploitation above human dignity”
© 2009 Future 500

8. Case Study: Issue Background
 Late 2004, University student g p ( of M),
, y groups (U ),
NGOs and investors voiced concerns about
water resource management and
unsubstantiated reports of p
p pesticide residues
in products.
 U of M and TCCC agreed that an independent
assessment would provide information needed
to determine Company compliance with U-M
Vendor Code of Conduct.
 In March 2006 and in conference with
stakeholders, TCCC approached The Energy
and Resources Institute (TERI), a Delhi-based
NGO, b t
NGO about conducting th i d
d ti the independent thi d
d t third-
party assessment.
© 2009 Future 500

9. TCCC Case Study: Who is TERI?
 E t bli h d i 1974 TERI i a global NGO committed t
Established in 1974, is l b l itt d to
sustainable development.
 Led by Dr. R.K. Pachauri, who shared the Nobel Peace Prize with
y ,
former Vice President, Al Gore.
 Involved in a wide range of policy and scientific areas: water
resources,
resources global climate issues urban transport and pollution
issues, pollution,
energy efficiency.
 Over 700 staff drawn from multidisciplinary and highly specialized
p y g y p
fields.
 www.teriin.org
© 2009 Future 500

10. TCCC Case Study: The Assessment
 TERI conducted an independent, scientific
assessment of TCCC’s water management
practices in India to determine compliance w 1)
Indian govt’, 2)internatinal standards (WHO) and
3) TCCC’s own internal standards.
 TERI selected 6 plants representative of our
operations to study: Kaladera, Mehndiganj
Kaladera Mehndiganj,
Nabipur, Nemam, Pirangut, and Sathupalle.
 Assessment protocol was determined by TERI, as
p y
was the form and content of report.
 TERI engaged an expert Steering Committee to
oversee the work plan and methodology
methodology.
© 2009 Future 500

11. TCCC Case Study: The Assessment
 TCCC procedures and practices were
assessed on hundreds of criteria.
 The report confirmed that TCCC met
Indian
I di regulations and hi h TCCC
l i d higher
standards.
 Plants found to be generally in compliance
with all applicable Indian environmental
regulatory requirements.
 No pesticides were found in any of the
intake water, treated water used to make
TCCC beverages or effluent (U-M’s primary
concern)
© 2009 Future 500

12. Findings and Recommendations
Local Groundwater
 Report recommended increased consideration of
community water needs in plant siting and
operations at the l
i h local l
l level, i l di operations
l including i
in water scarce areas.
Effluent Treatment
 Although plants were found to be generally in
compliance with all applicable Indian regulations,
the report identified a need to strengthen our
internal standards with respect to bacteriological
presence in effluent water.
 Report suggested additional analysis with respect
to groundwater quality near four of the six plants
studied.
© 2009 Future 500

13. Findings and Recommendations
Community Engagement
 Report notes that TCCC’s social responsibility
initiatives could benefit from greater strategic
focus.
 Report notes that in all but one of the six plant
sites (Nemam), there were consistent
stakeholder concerns expressed about water
availability and quality.
 R
Report recommends i
t d increased community
d it
engagement around water issues, especially in
water scarce areas.
© 2009 Future 500

14. TCCC Action Plan: Shaping policies
in India and China, and elsewhere
in India and China and elsewhere
Groundwater Use:
 Global standards and guidelines for siting plants are being revised to
include extensive water resource evaluations and impact of the plant on
the community.
 New global guidelines for operating plants in areas facing serious and
chronic water shortages to be issued. Working to reach zero
groundwater balance in India by 2009.
 Efforts focus on reducing the water used to produce our beverages,
recycling water used for beverage manufacturing processes, replenishing
water in communities and nature.
 Routine inspections of rainwater harvesting facilities instituted;
measurement devices installed to verify volume of recovered water.
 Created the Coca-Cola India Foundation to support activities that
support sustainable development and focus on issues related to water,
environment, healthy living and social advancement.
© 2009 Future 500

15. TCCC Action Plan
Pesticides:
 TCCC co-sponsored an internationally recognized
panel of residue analysis experts, under the aegis
experts
of the Association of Analytical Chemists (AOAC),
to develop science-based, objective protocols for
pesticide testing in finished soft drinks.
© 2009 Future 500

16. Communicating the Findings
 TERI’ b
TERI’s observations continue to guide TCCC’s
i i id TCCC’
efforts to make a positive mark on communities
and minimize our impact on the environment in
ways that improve lives, fuel local economies and
h l f ll l d
protect the environment.
 TERI’s report is part of an ongoing global process
TERI s report is part of an ongoing, global process
of continual evaluation and improvement to
achieve our sustainability commitments.
 Assessment is another important step in ensuring
that TCCC water management practices are among
the best in the world.
 As TCCC moves forward, the Company’s operations
and water stewardship efforts will be informed by
many of the findings in the TERI report.
many of the findings in the TERI report
© 2009 Future 500

17. 2006 2007 2008 2009
Community Using our Brands Demonstrating
Plant Outreach + to Global Leadership
Integrated Performance Helping Protect Communicate
Communications Key Watersheds
 employee
communications
 stakeholder
engagement System-wide Leading the Industry Mobilizing Others
roadmap Engaging in  On-pack  Partnering with
Partnerships customers
 media relations grounded by messaging
to educate consumers
plant  Cause marketing
performance  Repurposing DME  Engaging our
 marketing supply chain with
water efficiency goals
 Mobilizing other
 customer activation p
companies/industries
“Return the
 supply chain Drops we Use”
activation
#2 purchaser
of glass
Do the advance w h a t w e d o
work to start
precisely
+ credibly Engage and
Take a stand Raise the volume inspire others
© 2009 Future 500

18. Coca-Cola, a leader in corporate water
stewardship
Plant Performance
Reduce
Watershed Protection
Recycle
Supporting Community Initiatives
Replenish
Global Awareness and Action
© 2009 Future 500

19. Increased Corporate Accountability
and Risks for Industry
© 2009 Future 500

20. Questions
© 2009 Future 500 20

21. Thank you
San Francisco – Tokyo – Beijing
www.future500.org
f 500
Harry Ott – hott@future500.org
Matt Turner – mturner@future500.org
© 2009 Future 500

22. Addtl’ Slides
© 2009 Future 500 22

23. Available Tools and Programs -- Reduce
20.00
15.00 14.66
14 66
10.00 10.01
5.00 5.69
3.72
0.00 0.00
-3.26
5 00
-5.00 -6.22
-7.05 -7.82
-10.00 -9.45
-13.46
-15.00
-16.99
-20.00 -19.23
-25.00
2002 2003 2004 2005 2006
Water usage ratio 0.00 -7.05 -13.46 -16.99 -19.23
Water usage 0.00 -3.26 -7.82 -9.45 -6.22
Sales Volume 0.00 3.72 5.69 10.01 14.66
Water usage ratio Water usage Sales Volume
Continued improvement can be achieved with the WWF-TCCC Water Efficiency Toolbox
© 2009 Future 500

24. &
Partnership Workstreams
1. Plant Performance & Efficiency ‐‐ all plants participate, setting goals on
efficiency and stewardship
2. Supply Chain Water Stewardship – initial focus on sugar suppliers we all
share
3. Improve watershed health
and sustainability ‐‐ in seven, iconic river basins
y ,
4. Climate Change – all plants participate through energy efficiency
5. Marketing and Communication – the leverage the reputational benefits
and inspire action
… linking powerful brands in conservation and
© 2009 Future 500
commercial products.