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Water is Biggest Part of Our Supply Chain and it is Under Growing Stress

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.

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Water is Biggest Part of Our Supply Chain and it is Under Growing Stress

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  1. The Coca-Cola Company's Observations, Responses and Outlook in a Changing ClimateGreg KochDirector, Global Water StewardshipOffice of Sustainability, The Coca-Cola Company

  2. 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 • Climate change • Regulatory limits • Social acceptance Water Risks in Manufacturing Locations Water Risks in Agricultural Supply Chain

  3. Global Water Stress Classified - Internal use

  4. 2020: Water Megatrends and Effects MEGATRENDS EFFECTS • 2/3 of world population in severe water stress • 1/3 of world land area in severe water stress • Significant water quality degradation • Precipitation patterns change: more droughts and floods • Significant increase in competition for freshwater • More aggressive allocation , increasedprices,conflictpotential • Two billion more urban residents by 2030 • Variable adaptation by public sector • Water infrastructure needs require $1 trillion+ between now and 2025 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

  5. 2020 Water Stress: Rate of Change

  6. Classified - Internal use

  7. Classifie - Internal Use Only

  8. This is not only a developing world issue Lake mead, NEVADA Classified - Internal Use Only

  9. Classified - Internal use

  10. Recent Events within the Coca-Cola system • Chronic Water Stress • Drought • Community Connection • Local WRM Capacity Plant Closure 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

  11. Global Risk Assessment and Analytics 2010 System-wide Water Risk Summary in Manufacturing

  12. Why Are We On This Journey? • Water is: • 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) • 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 “ ”

  13. Global Water Stewardship Strategic Framework

  14. From Risk Analysis to Action Ecological Health TCCC Risk Aquatic Ecosystems & Species • Water Resource Sustainability • Water resources under stress Terrestrial/Riparian Ecosystems & Species Human Health & Well-Being • Supply Reliability • Decreased water availability Safe Drinking Water Food Availability • Local Social • Adverse social climate Sanitation Economics Specific Activities Watershed Protection Water Access & Sanitation Water for Productive Use Education & Awareness

  15. 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

  16. Food-Water-Energy Nexus Water, Energy and Food: All Three are at the Heart of the Sustainability Challenge FOOD • CLIMATE CHANGE • 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

  17. Southeast Asia, Baseline Water Stress and Power Plants

  18. Southeast Asia, Baseline Water Stress and Power Plants

  19. Southeast Asia, Long Term Change in Water Stress and Power Plants (2025, IPCC Scenario A1B)

  20. Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture

  21. Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture

  22. Southeast Asia, Change in Water Stress by 2025 in areas with Irrigated Agriculture(IPCC Scenario A1B)

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