Global Water Stewardship and The CocaCola Company GEF

Global Water Stewardship and The Coca-Cola Company GEF International Waters Conference Salvador, Brazil June 24, 2005 © 2005 Cola-Cola Company. All rights Reserved Dr. Daniel Vermeer Director, Global Water Initiative The Coca-Cola Company 1

The Coca-Cola Company 200 Countries we operate in 300 Franchise bottling partners 400 Number of brands 900 Manufacturing plants 1, 500, 000 © 2005 Cola-Cola Company. All rights Reserved Servings per day 2

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 Water Crisis Hits Africa the Hardest April 1, 2005 -Central Coast, Australia India: Fluid State of Water Battles Bottled Water Plant Runs into Opposition January 31, 2005 Nine million Chinese Face Drinking-Water Shortage April 3, 2005 Water Sc a looming rcity: a crisis? De cember 1 9, 2004 April 7, 2005 a s e Tim i d n I of na n e h i Coc es C v a Le sty a l o 5 a-C Thir 00 , 2 il 25 Apr 3

Water Availability: 1975 2000 2025 Sub-national Water Availability: 2003 Extreme Scarcity <500 500 -1, 000 © 2005 Cola-Cola Company. All rights Reserved 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 4

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 © 2005 Cola-Cola Company. All rights Reserved 6

Risk Assessment methodology 3 lines of analysis 3 kinds of outputs – Geo-spatial analysis – Customized maps – Comprehensive water survey and quantitative risk modelling – Risk profiles – Holistic assessment – Risk Reports © 2005 Cola-Cola Company. All rights Reserved 14 12 10 8 6 4 2 0 7

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 Mauritania Mali Senegal Niger Eritrea Chad Djibouti Sudan Guinea Nigeria Sierra Leone Ethiopia C. A. R. Liberia Côte Ghana D’Ivoire Cameroon Kenya Dem. Rep. of the Congo Gabon Rep of the Congo Tanzania Comoros Angola Zambia Zimbabwe Namibia Botswana South Africa © 2005 Cola-Cola Company. All rights Reserved Sources: ISciences, LLC; University of New Hampshire; and, Oak Ridge National Laboratory Madagascar Mozambique 8

Process inputs - 2005 Water Risk 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 © 2005 Cola-Cola Company. All rights Reserved 9

Background on risk categories - RISK MODEL • Watershed –sustainability and quality of water resources for the region. • 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. WATERSHED SUPPLY RELIABILITY COMPLIANCE SUPPLY ECONOMICS EFFICIENCY SOCIAL & COMPETITIVE CONTEXT © 2005 Cola-Cola Company. All rights Reserved 10

Our Water Stewardship Destination Improve Plant Performance Launch Community Initiatives Help Protect Watersheds Make a Global Difference Be the most efficient industrial water user in our peer class. 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. © 2005 Cola-Cola Company. All rights Reserved 12

Illustrative Community & Watershed Projects SBUs AFRICA WATERSHED EFFICIENCY/ CONSERVATION EDUCATION/ AWARENESS Mau Forest reforestation –WWF (Kenya) WWF Zambezi Nairobi River Basin – UNEP (Kenya) HEALTH/ SANITATION Safe Water System & community health & sanitation (Kenya) ACCESS/ INFRASTRUCTURE Roundabouts (SA) GDA/TCCC projects WATER RESOURCE MGMT. Water resource mgmt. (Nigeria) (Mali; Egypt) Water, sanitation, sustainable agriculture (Kenya) African Devt Bank/TCCC projects (TBD) ASIA EEME Mekong - WWF Danube Mediterranean (incl Rainwater harvesting Bawadi restoration Water efficient (India) Community Access (Vietnam) technologies (India proposed) Water. Savers - WWF Awareness campaign (Spain) Spanish Valencia) o. X-list E/A Bolivia Amazon (proposed) Brazil Eco-region - LA WWF Guatemala Watershed - WWF NA SE Rivers/River GLOBAL WWF Freshwater Network Ginnie Springs watershed model Map © 2005 Cola-Cola Company. All rights Reserved Water Supply CD-ROM WWF USAID/GDA - Global Partnership 13

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 © 2005 Cola-Cola Company. All rights Reserved 14

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 Rainwater Harvesting 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 15

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 © 2005 Cola-Cola Company. All rights Reserved 16

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 17

WATERSHED PROTECTION Bolivia PARTNERS: USAID Coca-Cola Bottling partners Protección 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) © 2005 Cola-Cola Company. All rights Reserved 18

Potential Partnership Opportunities • Get to know each other and build trust. • Identify and evaluate specific regional projects for collaboration. • Understand leverage each other’s assets around shared objectives. © 2005 Cola-Cola Company. All rights Reserved 19