Water Efficiency & Conservation at The Coca-Cola Company

Water Management Technology Best Management Practices and Innovations

Workshop for the Process Industries

Water Efficiency & Conservation at The Coca-Cola Company

Paul Bowen, Water Technology Director Environment and Water Resources

May 13, 2009

TEST YOUR KNOWLEDGE

1. What has the highest percentage of water?

a. Coca-Cola b. The human bodyc. The surface of the earthd. Concrete

2. Most of the world’s freshwater is located in

a. the oceansb. rivers and streams

5. What use generally consumes the most water?

a. Domestic/Residentialb. Commercialc. Agriculturald. Industrial

6. The Coca-Cola Company treats water for a. All soft drinksb. All sports drinksc All energy drinksb e s a d s ea s

c. glaciers and icecapsd. underground

3. What is NOT part of the Water Cycle?a. Evapotranspirationb. Surface Tensionc. Runoffd. Infiltration

4. What activity in the house uses the most water

a. washing dishesb. washing clothesc. flushing toiletsd. taking baths/showers

c. All energy drinksd. All of the Above

7. The Coca-Cola Company uses about how many liters of water to produce a liter of product?

a. 3.50b. 3.00c. 2.50d. 2.25

c

WHO USES THE MOST WATER PER YEAR?Atlanta

Chicago

Charlotte

31,244,000,000 gal

41,245,000,000 gal

74,761,000,000 gal

Denver

Los Angeles

Phoenix

The Coca-Cola Company

105,902,000,000 gal

161,695,000,000 gal

275,000,000,000 gal

876,000,000,000 gal

Three Things Today

●The Coca-Cola Company●Our Water Roadmap●Improving Plant Performance

4

The Coca-Cola Company – in context

200

300+

400+

900+

Countries we operate in

Franchise bottling partners

Number of brands, worldwide

Manufacturing plants

5

900+

1,500,000,000

Manufacturing plants

Moments of Happiness for consumers each day

Our Manufacturing SystemThe Coca-Cola Company & Our Bottling Partners

North America94

EurAsia138

European Union99

6Number Of Plants As Of December 2005 – Not Including CO-Packers

Latin America179

Pacific

150Africa154

Our Business At A Glance

Ingredients & Bulk

Packaging

Vending Machines & Coolers

7

Concentrate Plants

Ingredients & Packaging

Bottling Plants Warehouse

Transport

Customers

Consumers

Three Things Today


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Water Availability: 1975Water Availability: 1975Water Availability: 2000Water Availability: 2000Water Availability: 2025Water Availability: 2025Sub-national Water Availability: 2003

9Extreme Scarcity<500

Scarcity500-1,000

Stress1,000-1,700

Adequate1,700-4,000

Abundant4,000-10,000

Surplus>10,000

Ocean/Inland Water

No Data

m3/person/year

Water in the News…Water in the News…

April 16, 2007

Oklahoma’s Underground Water Resources Might Be

Disappearing

Coca-Cola Helps Provide Safe

WaterApril 19, 2007

Business’ Thirst for Water Is UnsatedAugust 23, 2004

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Bottlers, States and the Public Slug It Out in Water War

June 12, 2006

… reminds us we must act.

“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 in crisis

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“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

and subsequent years

246

152

134

32%

24%

10%Abundance

Water access is a business survival issue

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LocatedPlants

ReportedProduction

88

87

141

8%

9%

16%

Scarcity

Notes:• 11 plants not located• 14 plants (0.7% of reported production) in regions for

which water availability data is unavailable• 24 concentrate and beverage base plants not shownSources: ISciences, LLC; University of New Hampshire; and, Oak Ridge National Laboratory

Annual Renewable Freshwater Availability

Extreme Scarcity<500

Scarcity500-1,000

Stress1,000-1,700

Adequate1,700-4,000

Abundant4,000-10,000

Surplus>10,000

Ocean/Inland Water

No Data

m3/person/year

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Committing to Water Stewardship

Profit

2005 brought the strategic vision and direction of Manifesto for Growth. This added a renewed corporate philosophy on water stewardship to complement the water risk mitigation work. MFG further solidified the need to integrate water work across all functions (e.g., technical, PA/C, marketing, legal)

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SUSTAINABLEGROWTH

Being a responsible global citizen that makes a difference:•Water Stewardship•Packaging Leadership•Locally relevant initiatives

Planet People

Partners Portfolio

Productivity

Sustainable Communities

Global Leadership

Help enable access to clean drinking water in communities

• Integrate with Corporate Reputation and Company Brand strategies

• Distinctive leadership through strategic partnerships with WWF and GWC

JUST BEYOND THE FENCE

WAY BEYOND THE FENCE

Integrated Strategy With Global Partners & Programs

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Plant Performance

Watershed Protection

• Support the protection of watersheds in water-stressed regions where we operate

• Drive water stewardship with the supply chain

water in communities where we operate

Best-in-class in water use efficiency & compliance on wastewater management

JUST BEYOND THE FENCE

INSIDE THE FENCE

• Community Water Partnership Grants

• Metrics and Evaluation Tool

Sustainable Communities

Global Leadership

• WWF, Global Water Challenge

Water Stewardship Framework

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Plant Performance


• Source Protection Mgmt Tool• Disaster Response Preparedness• Drought Prediction Maps• Water Safety Plans

• Water Efficiency Tool Kit• Wastewater Treatment Design and Operations• Water Quality Support Program3.12

2.92.72

2.592.532.48

200220032004200520062007

Water Use Ratioliters/liters of product

20.5%

Safely return to communities and nature an amount of water

Water Stewardship

Safely return to communities and nature an amount of water equivalent to what we use in all of our beverages and their production.

Our Water Conservation Goal

Our 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.

TCCC will set specific water efficiency targets for global operations by 2008 to be the most efficient user among peer companies.

REDUCE

On a global basis we will expand support of healthy watersheds and sustainable community water programs to balance the water used in our finished beverages.

TCCC will align our entire global system with stringent wastewater treatment standards which require returning all water that is used in our manufacturing processes to the environment at a level that supports aquatic life by the end of 2010.

REPLENISH

RECYCLE

Three Things Today


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FIXING THE BASICS:

WATER EFFICIENCY &

20

WATER EFFICIENCY & WASTEWATER TREATMENT

Stopping Drips and Leaks Can Reduce Water Use By 10%

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Pipe Wrench Approach

● Tighten all valves, fittings, and spigots● Stop all leaks● Anticipated savings >10% Drip gauge Measure volume after 5

sec

22

If full after 5 sec73 gpd = 26,645 gpy$399.68

If full in less than 2 sec> 150 gpd > 50,000 gpy>$750.00

Conservation Checklist

Repair leaks Tighten all leaking valves & fittings in plant Meters Pump seals Automate all sprays and lube jets Adj st filter back ash freq enc

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Adjust filter backwash frequency Reclaim filter backwash water Utilize reject from membrane systems Capture flushes from CIP Capture and reuse can/bottle rinse water or

convert to air rinsers All hoses should have automatic nozzles

Incoming Water$2.34/k-gal

Incoming Water$2.34/k-gal

Softened B il MUSoftened B il MU

Water Cost Breakdown –Identifying the Value StreamsWater picks up cost as it travels through a facility. Value (cost ) streams, identified in Aquacheck, are an important measure for impact analysis.

Water in Beverage

$5.72/k-gal

Water in Beverage

$5.72/k-gal

Nano Filt. Water

$5.72/k-gal

Nano Filt. Water

$5.72/k-gal

Hot Water (700F rise)

$4.32

Hot Water (700F rise)

$4.32

Effluent $23.12/kgal




Boiler MU$3.34/k-galBoiler MU

$3.34/k-gal



STEAM$68.32/k-gal

Condensate to drain

$24.64/kgal

Condensate to drain

$24.64/kgal

WW Discharge cost = $2.46 + surcharges $16.34 = $18.80/ k-gal



Incoming Water$3.63/Kgal

Incoming Water$3.63/Kgal

Soft Water $4.29/KgalSoft Water $4.29/Kgal

Water Value Stream Breakdown

Waterin Beverage$6.00/Kgal

Waterin Beverage$6.00/Kgal

Soft Boiler MU$6.11/Kgal

Soft Boiler MU$6.11/Kgal

Dasani Water$9.41/Kgal

Dasani Water$9.41/Kgal

Dasani RO Water $9.41/Kgal

Dasani RO Water $9.41/Kgal

Treated Water $6.00/Kgal

Treated Water $6.00/Kgal

Effluent $10.21/Kgal

Effluent $10.21/Kgal

Effluent $8.50/Kgal

Effluent $8.50/Kgal

Steam$92.64/Kgal

Steam$92.64/Kgal

*sum of incoming and effluent cost not including surchargesEffluent cost is $4.21

Effluent 7.84/KgalEffluent

7.84/KgalEffluent

$13.62/KgalEffluent

$13.62/KgalCondensate to drain

11.52/KgalCondensate to drain

11.52/Kgal

Biggest Water Users - Weekly Basis

Filler Cooling Spray (D)

CIP Room (D)

CIP (P)

CIP (T)

Boilers (S)

0.00 2,500.00 5,000.00 7,500.00 10,000.00

Cost, $ per week

volume, kgalscost, $

0.00 300.00 600.00 900.00 1200.00

Water In Beverage (P)

Bottle Rinsing (P)

Water In Beverage (T)

Mechanic Shop (D)

Utilities (D)

Water Pre-Treatment (P )

Filler Cooling Spray (D)

Are

a

Volume, kgals per week

Reduce Tools and Capability Building

0.00

-7.05

-13.46-16.99

-19.23 -20.51

0.00-3.26

-7.82 -9.45-6.22

-2.280.00

3.725.69

10.01

14.66

21.39

-20.00

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

● With WWF and bottling partners, we developed an interactive, plant-level water efficiency toolkit, harvesting best practices from throughout our system

● Between 2002 and 2007, reduced global water consumption by almost 10% while sales volume increased by

-25.00

Water usage ratio Water usage Sales Volume

Water usage ratio 0.00 -7.05 -13.46 -16.99 -19.23 -20.51

Water usage 0.00 -3.26 -7.82 -9.45 -6.22 -2.28

Sales Volume 0.00 3.72 5.69 10.01 14.66 21.39

2002 2003 2004 2005 2006 2007nearly 20% (2007 preliminary data)

WWF/TCCC WATER

EFFICIENCY TOOLBOX

28

29

30

31

32

33

0.00

-7.05

0.00-3.26

-7.82 -9.45-6.22

-2.280.00

3.725.69

10.01

14.66

21.39

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

25.00TCCC Water Use Improvement

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-13.46-16.99

-19.23 -20.51-25.00

-20.00

-15.00

Water usage ratio Water usage Sales Volume

Water usage ratio 0.00 -7.05 -13.46 -16.99 -19.23 -20.51

Water usage 0.00 -3.26 -7.82 -9.45 -6.22 -2.28

Sales Volume 0.00 3.72 5.69 10.01 14.66 21.39

2002 2003 2004 2005 2006 2007

Water Use and Efficiency PerformancePercent Change Over Base Year

40%

50%

Total Beverage

BIER Water Efficiency Performance, 2005-07Beverage Industry Environmental Roundtable

● BIER Members have improved their water use efficiency more than 4% in the past year

‐20%

‐10%

0%

10%

20%

30%

40%

2005 2006 2007

Total BeverageProduction

Total WaterConsumption

Water Use Ratio

● This improvement has allowed the industry to avoid the use of 19 billion liters of water

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Community Water Projects Globally…

37… 70 projects in 40 countries.

Bolivia – Protecting the Urban Environment of Tarija- Watershed rehabilitation and improved

collaborative management

Mali – Water, Sanitation, and Productivity for the Poor- Hygiene promotion, water supply

and sanitation infrastructure

Project Examples: Developing Markets

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and sanitation infrastructure, bottler wastewater treatment

Indonesia – Upper and Lower Bekasi River Cleanup- Hygiene promotion, reforestation,

and “Go Green Schools”

… watershed, supply/sanitation, productive use, education/awareness.

Sustainable Communities● Goal

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

● Progress to date- Launched Community Water Challenge

Grant program in 2005- Invested in water-focused tsunami relief in

partnership with UN Foundationpartnership with UN Foundation– Identifying additional partners and resource needs for larger scale initiative– Initial focus on Africa, Asia, and Latin America (with pilots in India, Bolivia,

Mali, Nigeria, South Africa, and Vietnam)– Safe Water for Primary Schools – Kenya– Community Water & Sanitation – Mali– Rainwater Harvesting – India– Tsunami Recovery – Water System Development & Rehabilitation -

Indonesia/Maldives/Sri Lanka/Thailand– Bawadi Reconstruction (Step Well, Surface Water Reservoir) - India– Roundabout Play Pumps - South Africa


● Goal - Support the protection of watersheds

in water-stressed regions where we operate

● Progress to date- In the early stages of developing and

implementing new source water standards and partnerships across the system.Mobilizing key partners and- Mobilizing key partners and resources. Rainwater Harvesting in India

– Implementing successful partnership with WWF, Conservation International and others to protect watersheds.

– Sierra de las Minas – conservation – Guatemala – Sama Reserve – land use change and reforestation – Bolivia– Nevado de Toluca National Park – reforestation – Mexico – Improved watershed health and sustainability World Wildlife Fund

U.S. Southeastern Rivers and Streams Rivers and Springs of the Chihuahuan Desert Mekong River Basin Zambezi Basin

Make a Global Difference

● Goal - Work with others to mobilize the

international community to act collectively in addressing the world’s water problems.

● Progress to date- Exploring ways to use our marketing

creativity to mobilize the international community on water issues.

- Creating new “mind space” on safe water working with global partners

CCHBC Community Water Project Nigeriaworking with global partners

– Desire to help incubate a global/regional learning environment, a joint strategy, and a multi-partner implementation plan.

• USAID

• UNDP

• WWF

• CARE

• Africa– Mali– Kenya– East Africa Lakes & Rivers– Nigeria– Malawi

• Asia– Thailand– Indonesia– Sri Lanka– Maldives– Mekong– Yangtze– Nepal

• Latin America– Bolivia– Mexico– Guatemala– Ecuador

• North America– SE Rivers & Streams

• Europe– Danube– Eurasia

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Documents

Water Efficiency & Conservation at The Coca-Cola Company