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Climate Change: Mitigation and Adaptation The Coca-Cola Company’s Approach. Joe Rozza , P.E., BCEE Global Water Resource Sustainability Manager The Coca-Cola Company Environment & Water Resources Atlanta, Georgia 30301, USA +01 404 676 4764 [email protected]. - PowerPoint PPT Presentation
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Climate Change: Mitigation and AdaptationThe Coca-Cola Companys ApproachJoe Rozza, P.E., BCEEGlobal Water Resource Sustainability ManagerThe Coca-Cola CompanyEnvironment & Water ResourcesAtlanta, Georgia 30301, USA+01 404 676 [email protected]
1Water is the single largest (and most irreplaceable) component of our Supply Chain. It is also a shared resource under growing stress around the world.
We can have all the crowns and caps and concentrate in the world, but without water we and our bottlers have no business.
Demographic trends, economic growth and climate change will stress water resources significantly to 2020 and beyond.
Understanding and managing this vital resource is critical to the sustainable growth of our business.
As Muhtar has stated in the 2020 Vision work, we need to prepare today for tomorrow. And on no issue is this more relevant than water.
The Coca-Cola Company by The Numbers2
22020: Water Megatrends and EffectsEFFECTS2/3 of world population in severe water stress1/3 of world land area in severe water stressSignificant water quality degradationPrecipitation patterns change: more droughts and floodsSignificant increase in competition for freshwaterMore aggressive allocation , increased prices, conflict potentialTwo billion more urban residents by 2030Variable adaptation by public sectorWater infrastructure needs require $1 trillion+ between now and 2025
334A Global Water Scarcity Crisis
Water Availability(m3/capita/year)ExtremeScarcityScarcityStressAdequateSurplusAbundant
4Mitigation & Adaptation: The Coca-Cola Company
MitigationAdaptationUnderstandFootprintUnderstandRisk ExposureSet GoalsManageMetricsDevelopStrategiesMitigation: Climate Protect/Energy ManagementMitigation: Sustainable PackagingAdaptation: Global Water Stewardship5
Agricultural Inputs Not Yet IncludedWhat is Our Carbon Footprint?6Head start on measuring emissions system wide
Work to be doneD
Carbon Footprint Analysis7Climate Protection & Energy Management GoalsGrow the business, not the carbon system-wide AND achieve a 5 percent reduction in developed (Annex I) countriesTake action to improve energy efficiency and reduce emission of greenhouse gases in cold drink equipment with focus on conversion to HFC-free insulation materials and refrigerant, plus improving energy efficiency
MANUFACTURINGREFRIGERATION EQUIPMENTClimate Protection and Energy Management
Grow the business, not the carbon in our manufacturing operations. Improve the energy efficiency and reduce emission of GHGs in cold drink equipment. PackagingGoalsClimate Benefits through Reduce, Recover and Reuse
8ManufacturingSince 2002, our energy use efficiency has improved by 16 percent
Investing in lighting, compressed air, process cooling, process heating, HVAC and more to eliminate energy waste and cut CO2 emissions
We will hold our 2015 emissions at our below the emissions we had in 2004 (4.7 million metric tons) despite projected business growth
Refrigeration Equipment:Coolers and vending machines make up the largest component of our Systems emissions
We have completed the transition to HFC-free insulation for new purchases of refrigeration equipment This new insulation generates 2/3 fewer direct greenhouse gas emissions as compared with traditional equipment
We have made significant research and development investments to identify a cost-effective alternative to HFC refrigerant Carbon dioxide technology generates1/3 fewer direct greenhouse gas emissions from refrigerants
We have developed an energy management system that delivers energy savings of up to 35 percent
Combined, these technologies will reduce direct and indirect carbon emissions by over 3 tons over the lifetime of each typical machine.
Energy Management in ManufacturingSignificant Productivity Benefits
20%10 %Compressed AirEnergy BreakoutLighting5%20%Process Cooling20%Process Heating10 %15 %ProductionMiscellaneousHVAC25-50%20-30%20-30%10-20%10-20%5-10%5-10%SavingsPotentialOverall Savings20%20% Energy Use Ratio Improvementand a 22% reduction in CO2 emissionswhile providing a 17+% IRR.9System has improved the energy efficiency of our manufacturing operations by 16 percent since 2002
Our Sustainable Packaging GoalsTCCC strives to use the least amount of raw materials and energy required to meet customer and consumer packaging needs.TCCC is committed to closing the loop on our packaging by advancing cost-effective ways to return recycled materials to the production process for reuse.TCCC helps to increase the recovery of used packaging materials around the world by supporting our own collection operations, national recovery organizations and strategic recovery partners.REDUCE REUSERECOVERSustainable Packaging
We envision a world in which our packaging is no longer seen as waste, but as a valuable resource for future use. One of the ways we are taking action to realize this vision is our goal to recover or reuse 100 percent of the equivalent bottles and cans we place in market. 10Risk Management and Water Resource Sustainability1111GIS/Spatial Analysis: Using Technology to Understand Risk Exposure12
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Risk Visualization Tools
13Global Water Stewardship Strategic Framework Enabling Vision 202014EnableActGlobal LeadersSustainable Water Use
We took this risk data and built a framework of action
Beginning within our operations to increase efficiency and meet wastewater standards
Looking beyond the 4 walls of our plants to understand the watershed issues which impact us
And looking at the communities that share this vital resource with us
And lastly to build on our commitment by lending our voice to the growing public awareness and debate. 14Performance TargetsOur water conservation goal is to return to communities and nature an amount of water equivalent to what we use in all of our beverages and their production.
15We also then shaped goals to dive improved performance.
The overarching water goal, announced in June 2007, is to give back to nature and communities as much water as we use.An ethic of sustainability underpins that global commitment : that the more we use, the more we will give back.
There are three Rs that build out that commitment:
Reduce: to become 20% more efficient in water use by 2012 and we are on track on that
Recycle: to have 100% of our facilities meet wastewater treatment standards by the end of 2010 and we are on track on that
Replenish: to give back what we use as product water through our support for watershed replenishment, rainwater harvesting, reforestation, drip irrigation and community access programs and projects.
The next slide explains that in more detail.15
Replenish: Communities and WatershedsWe are engaged in 250 community water projects in 70 countries to protect and preserve water resources and help enable greater access to water and sanitation. Our partners include USAID, UN-HABITAT, CARE, UNDP, TNC, WWF, local governments and implementing NGOs.Replenish is the manifestation of our community and watershed partnership work, with the aim to offset the water we use in finished productsLocally relevant projects that support communities and nature, from source water protection implementation to rainwater harvesting projects
16The commitment is to give back what we use in two ways:
By fully treating all the process water so it can be returned to nature or waterways safely
And by offsetting the resulting balance of water we use in finished products. This can be achieved in a number of ways rainwater harvesting, reforestation, drip irrigation, etc.
We are working with respected partners to establish an accepted methodology for water footprint offset -- including World Business Council for Sustainable Development, WWF, Nestle, University of Twente in The Netherlands and others.
We should have an Key draft methodology this year, and we are continuing to work across the System to document what we are doing and to measure impact. We have not set a timeframe for achieving this goal yet.
Our leadership on this has opened the way for others to follow including PepsiCo and Cadbury Schweppes16
Thank You17