Presented by:
Practical aPPlication in corPorate Water steWardshiPsePtember 2010
• Watercoversabout70%oftheEarth’ssurface.
• Mostofthiswaterisundrinkablebecause97%issaltwater.
• Only1%ofwaterisfoundinriversandstreams.
• Approximately1billionpeopledonothaveaccesstosafedrinkingwater.
• About6,000childrendieeverydayfromdiseasesassociatedwithlackofaccesstosafedrinkingwater.
• Mostofthecitieswherelargenumbersofpeoplelivewithouttapsandtoiletshaveplentifulwatersupplies.
• Freshwaterfishandotheraquaticanimalsareconsiderablymoreimperiledthanthosethatliveonlandorintheoceans.
• Ittakes1,000timesmorewatertogrowfoodforanindividualthantomeetthatperson’sneedsfordrinking.
• Irrigationincreasesyieldsformostcropsby100to400%.
• About70%offreshwaterwithdrawalsareusedforirrigation.
• Waterwithdrawalsforagriculture,assumingnogainsinefficiencyofuse,areexpectedtoincreaseby45%by2030.
• TheEarth’swaterisfinite,butitisinfinitelyrenewable.
Water = LifeBut did you know…
ACKNOWLEDGEMENTS
ThisreportistheresultofcollaborationbetweenThe Nature ConservancyandThe Coca-Cola Company.Italsorepresentstheproductofsignificantcontributionsofindividualsfromanumberofotherorganizations:
• TheWater Footprint NetworkprovidedsupportforpilotstudyeffortsandguidancethroughpublicationoftheWater Footprint Manual.
• Coca-Cola Enterprises Inc. (CCE) wasakeypartnerfortheCoca-Cola®waterfootprintpilotstudy,providingsignificantdataandotherresources.
• ResearchersattheTwente Water Centre, University of Twente, The NetherlandsconductedthetechnicalworkfortheCoca-Colawaterfootprintpilotstudy.
• Denkstatt,incooperationwiththe Institute for Water Quality, Resources and Waste Management at the Vienna University of Technology,conductedthebeetsugarwaterfootprintpilotstudy.
• LimnoTechconductedtheorangejuicewaterfootprintpilotstudiesandcontributedtechnicalexpertiseandwritingsupportforthisreport.
—BenjaminFranklin
TA B L E O F C O N T E N T S
ExECUTIVE SUMMARy ES-1
1.0 INTRODUCTION 1
1.1 ObjectivesofthisReport 2
1.2 GlobalFreshwaterChallenges 3
1.3 TheNatureConservancy’sFreshwaterConservationGoals 5
1.4 TheCoca-ColaCompany’sWaterStewardshipGoals 6
1.5 TheWaterFootprintConcept 8
2.0 PILOT STUDIES 11
2.1 WaterFootprintof0.5LiterCoca-Cola®inPETBottle 11
2.2 WaterFootprintofBeetSugarSuppliedto theCoca-ColaSystem’sEuropeanBottlingPlants 15
2.3 WaterFootprintofOrangeJuiceProducts 20
3.0 PERSPECTIVES 25
3.1 SettingGoalsandScope 25
3.2 WaterFootprintAccounting 27
3.3 WaterFootprintSustainabilityAssessment 30
3.4 WaterFootprintResponseFormulation 32
4.0 LOOKING FORWARD 37
4.1 TheCoca-ColaCompany’sWaterStewardship andSustainableAgricultureStrategy 37
4.2 TheNatureConservancy’sWaterStewardship 37
EXEC
UTI
VES
UM
MA
RY
Whenproperlymanaged,evenlargevolumesofwaterusecanbesustainableinlocationswheretheresourceissufficienttosupporttheuse.Theimpactsofawateruseneedtobeassessedinthecontextofallwaterusesinthewatershedinordertodefinecumulativeimpacts,sharedrisksandappropriateresponsestrategies.
Traditionally,calculationsofhowmuchwaterabusinessuseshavebeenbasedonthequantitiesuseddirectlyinproducingthatcompany’sproducts.Inrecentyears,businesseshavebeenencouragedtolookattheirwaterusemorecomprehensivelyandinvestigatethewaterusedthroughouttheirsupplychains.TogetherwithTheNatureConservancy(“theConservancy”),TheCoca-ColaCompany(“theCompany”)hasbeenoneofthecompaniesleadingthewayondevelopinga“waterfootprintassessment”methodologythroughactiveparticipationintheWaterFootprintNetwork.
Aproductwaterfootprintisthetotalvolumeoffreshwaterconsumed,directlyandindirectly,toproduceaproduct.Afullwaterfootprintassessmentconsiderstheimpactsofthiswaterconsumption,aswellasappropriateresponsestrategiestominimizethoseimpacts.
Waterfootprintingandcarbonfootprintingareverydifferentassessments.Withcarbonfootprints,onecancomparesimilarproducts(ifthesameboundariesandmethodologyareused)knowingthatlowercarbon(orzerocarbon)isbetter.Ontheotherhand,waterfootprintshelpidentifywherewaterisusedintheproductionofaproductandwhattypeofwaterisused.Waterislocalandthuswaterfootprintnumbersmustbeconsideredinthecontextofthelocalwatershed.Thenumberassociatedwithawaterfootprintisnottheendgame,butratherastartingpointtoaddressingthesustainabilityofthewatersource.
Thisreport,preparedbyTheNatureConservancyandTheCoca-ColaCompany,examinestheconceptofproductwaterfootprintinganditspracticalapplicationforaddressingthegrowingchallengesrelatedtofreshwater.ThreewaterfootprintassessmentswereconductedfortheCompany:
• Coca-Cola®1ina0.5literPETbottleproducedbyCoca-ColaEnterprisesInc.(CCE) intheNetherlands; • BeetsugarsuppliedtoCoca-ColabottlingplantsinEurope;and • MinuteMaid®orangejuiceandSimplyOrange®producedfortheNorthAmericanmarket.
Waterfootprintassessmentscanbehelpfulinsupportingcorporatewaterstewardshipeffortsbyprovidingatooltomeasureandunderstandwaterusethroughoutthesupplychain.Theycan
ES-1
1Coca-Colareferstotheproductbrand.
providevaluableinsightintothelargestcomponentsandlocationsofwaterconsumption,thepotentialeffectsonlocalwatersheds,andfuturewateravailabilitytoservethecollectiveneedsofcommunities,nature,producers,suppliersandcompanies.Inthisway,waterfootprintassessmentscancontributetoanincreasedunderstandingofabusiness’water-relatedrisksandvulnerabilities.
Generalobservationsandimplicationsforproductwaterfootprintingfollow:
• Thevalueofproductwaterfootprintingisitsabilitytodisaggregatewater usebycomponent(i.e.,directandindirectuse;green,blueandgrey).Itisimportantto
keepthecomponentsofawaterfootprintseparatesothatimpactscanbeassessedinthecontextofthelocalwatershedswherethewaterisbeingsourced.
• Thelargestportionoftheproductwaterfootprintsassessedaspartofthesepilotstudiescomefromthefield,notthefactory.TheCoca-ColaCompanyseessignificantopportunitytoengagemoredirectlywithitsagriculturalsuppliersinadvancingsustainablewateruse.Guidedinpartbytheseassessments,theCompanyisfocusingitsinitialeffortsonsustainablesourcingofsugarcaneandoranges.
• Whiletheoperationalwaterfootprintassociatedwithproductionwasfoundtobeaverysmallpercentageofthetotalwaterfootprint,itremainsimportantforbusinessestomanagetheirdirect/operationalimpactsonlocalwaterresources.Thisisespeciallytruewithregardtowastewatertreatment.
• Toreallygainanunderstandingofwhetherwateruseishavinganimpact,thevolumeofwaterconsumptionmustbeconsideredwiththecumulativeeffectofallusesofthesharedwaterresource.
• Whilewaterfootprintsareanexcellenttoolforcompaniestobegintounderstandtheirwateruse,caremustbetakenwhencommunicatingaboutwaterfootprintassessments.Numericwaterfootprintsonlabelsdonotprovideinformationneededtomakeinformedchoicesamongproducts.
WaterfootprintingishelpingTheCoca-ColaCompanyrefineitsapproachtoglobalwaterstewardship.Thepilotstudieshaveverifiedtheimportanceofexaminingdirectandindirectwateruseseparately.TheCompanyisfocusingfirstonoperationalwaterusebytakingactiontousewatermoreefficientlyandtreatallmanufacturingwastewater.ThestudiesalsoaffirmedtheCompany’seffortstounderstandthehealthofwatershedseverywhereitoperates.Importantly,waterfootprintingprovidescompellingsupportfortheneedtoengagemoredirectlywithsuppliers,governmentsandotherstakeholdersonresponsiblewaterstewardship.
ES-2
—EmperorYuofChina,1600B.C.
2Hoekstra,ArjenY.,A.Chapagain,M.Aldaya,andM.Mekonnen.2009.Water Footprint Manual;StateoftheArt2009.PublishedbytheWaterFootprintNetwork.3www.waterfootprint.org4The“Coca-Colasystem”referstobothTheCoca-ColaCompany(alsoreferredtoas“theCompany”inthisreport)anditsmorethan300bottlingpartners.5LimnoTechandTheNatureConservancy.2010.QuantifyingWatershedRestorationBenefitsinCommunityWaterPartnershipProjects.
Waterfootprintingisayoungscience,andthemethodsforcalculatingwaterfootprintsareevolvingthroughtheeffortsoftheWaterFootprintNetwork(WFN)3andvariousotherinitiatives.TheNatureConservancyandTheCoca-ColaCompanyareactivelyengagedineffortstotestthepracticalapplicationofthewaterfootprintmethodologyandexploreopportunitiesforimprovement.Bothorganizationshaveengagedinseparateinitiativesrelatedtowaterstewardshipandwaterfootprintingandhavecollaboratedonprojectsofmutualinterest.
Overthepasttwoyears,theCoca-Colasystem4hasundertakenthreewaterfootprintpilotstudiestoassessthepracticalapplicationofthemethodstoitsproducts.TogetherwithTheNatureConservancyandtheconsultingfirmLimnoTech,theCoca-Colasystemalsohasbeenexploringandquantifyingthebenefitsofwatershedrestorationactionstorestoreandsustainadequatewatersuppliesforthefullrangeofbeneficialuses.5Becausewater-relatedimpactsarelocalinnature,effortstoreduceoreliminateadverseimpactsarebestimplementedinthewatershedsinwhichtheimpactsareoccurring.
TheNatureConservancyisdrawntothiscollaborationbecauseitiscommittedtohelpingbuildsolutionstotheworld’swaterproblemssotherewillalwaysbeenoughforpeopleandnature.Helpingcorporationsfindbetterandmoreresponsiblewaysofusingwaterisanessentialsteponthepathwaytowatersustainability.TwosimplefactsdriveTheNatureConservancy’sinterest:
• Tremendousopportunitiesexisttoimprovethewaywaterisusedandmanaged,andtherebyalleviatewaterscarcityproblemsthataffectbothpeopleandnature.FosteringsuchimprovementsisahighpriorityfortheConservancy,becauseunsustainablewateruseisaleadingcauseofdeclinesinfreshwaterbiodiversity.
• Corporationscanprovideleadershipinimplementingsustainablewaterpractices.Theseimprovedwaterpracticesmakegoodsenseforbusinessesandcanbringsubstantialbenefitstofreshwaterecosystems.
TheCompanyisdrawntothiscollaborationbecauseitrecognizesthatengagingexternalpartnersisessentialtoitscommitmenttohaveapositiveimpactonthewaterchallengesfacingcommunitiesandnature.TheConservancybringsfocusedexpertiseinfreshwaterconservationscienceandanin-depthunderstandingoftheinterrelationshipsbetweenhealthyecosystemsandthecommunitiestheysustain.Throughthecollaboration,bothorganizationsareabletoleveragetheirstrengthstoaddresswaterchallengeslocally,ataglobalscale.
1
“People use lots of water for drinking, cooking and washing, but even more for producing things such as food, paper, cotton clothes, etc. The water footprint is an indicator of water use that looks at both direct and indirect water use of a consumer or producer. The water footprint of an individual, community or business is defined as the total volume of freshwater that is used to produce the goods and services consumed by the individual or community or produced by the business.”
Water Footprint Manual: State of the Art 20092
1.0
INTR
OD
UCT
ION
1.1 OBJECTIVES OF THIS REPORTThisreportwaspreparedforwaterresourcemanagers,waterfootprintpractitioners,partnersoftheWaterFootprintNetworkandothersinterestedinhowwaterfootprintingcanhelpinformacompany’swaterstewardshipprogram.Thepurposeistosharelessonslearnedandobservationsrelatedtowaterfootprintassessmentsandtheirpracticalapplication.TheNatureConservancyandTheCoca-ColaCompanyhopethattheinformationsharedinthisdocumentwillmakeapositivecontributiontotheongoingdevelopmentofthewaterfootprintassessmentmethodologyanditsapplication.
2
Maps such as this one show
the degree of stress for
different regions based on the
ratio of water use to water
availability (water replenished
naturally by precipitation
and snow melt). Water stress
indices are calculated in
different ways, as discussed
later in this report.
Degree of Water StressbyFreshwaterEcoregion
extreme stresshigh stressmoderate stresslow or no stressminimal water useUnassessed
1.2 GLOBAL FRESHWATER CHALLENGESWateristhecoreofourbeing.Two-thirdsofthehumanbodyismadeupofwater,andwemustcontinuallyreplenishit.Analogoustolosingoilinanautomobile,beingdownonlyafewquartsofwatercanbefatal.Butittakesalotmorethandrinkingwatertokeepushealthy.Weneedwaterforcookingandbathing.Weneedwatertogrowfoodandgenerateelectricity,toproducetheclothesonourbacksandthecountlessothergoodsweuseinourdailylives.
Therewouldbeenoughwatertosupportallofhumanity,nowandfordecadestocome,ifitwereevenlydistributedaroundtheglobeanddeliveredfromtheskiesataconstantrate.Ataglobalscale,weconsumelessthan10%ofallthewaterthatreplenishesrivers,lakesandaquiferseachyear.
3
Map from TheAtlasofGlobalConservation(University of California Press, 2010). For more information, please go to: The Nature Conservancy, www.nature.org/atlas.
Butalltoooften,raincomesasadelugeornotatall,makingitscaptureandstorageelusive.Italsoisnotdistributedevenly.TheAtacamaDesertinnorthernChilemaygoformorethan20yearswithoutrain,whereasMt.WaialealeonKauaiintheHawaiianIslandsaveragesmorethan12metersofrainayear.Perhapsmostimportantly,thegrowthofourglobalpopulationhasnotfollowedtherain.
Thesefactsoflifeexplainthepatchinessofwaterscarcityandabundance.Today,nearly1billionpeoplelackaccesstocleanwater.Ifcurrentwaterconsumptionpatternscontinue,two-thirdsoftheworld’spopulationwillliveinwater-stressedconditionsby2025.
Thehighlyvariabletapestryofwaterscarcityandtheconflicts,impactsandrisksthatderivefromitmustultimatelybeaddressedinlocalwatersheds.Governancepoliciesatvariousgeopoliticallevelscancertainlyinfluencehowwaterisused,butthegreatspatialvariabilityinwateravailabilityanduse,alongwithotherinfluencesonhydrologicsystems,includinglocallanduse,demandthatanyassessmentofpotentialimpacts,risksandsustainabilityofwaterusebeframedbythephysicalboundsofthewatershed.
ThisexplainstherecenttrendwithintheWaterFootprintNetworktowardafocusonevaluatingtheconsequencesofwaterfootprintsinlocalwatersheds.Ongoingcalculationsofthewaterfootprintsofindividualproductsorwholenationshaveincreasedawarenessthatwaterisconsumedthroughoutthesupplychainintheproductionofallconsumergoods.Thisinformationwillcontinuetoserveanimportantroleininformingpublicpolicyaroundwateruseandmanagement.Withinthecorporateworld,waterfootprintsenableagreaterunderstandingofthevolumeofwaterembeddedinproducts,thepotentialeffectsonlocalwatershedscausedbythewateruseandtheprobabilitiesoffuturewateravailabilitytoservethecollectiveneedsofthecompany,communitiesandnature.Notunderstandingthecollectiveimpactsofwateruseonthelocalwatershedscanincreaseriskstothebusiness.Asdiscussedlaterinthisreport,boththeConservancyandtheCompanyhaveembracedandcontinuetosupportthisimportantevolutioninwaterfootprinting.
Fromacorporateperspective,growingwaterscarcityandtheneedtousewaterinbusinessoperationsandsupplychainsposerisksofvarioustypes.Thesebusinessriskscanbeviewedfromtwoperspectives:onelooksat“upstream”risks,andtheotherfocuseson“downstream”risks.
4
Upstreambusinessrisksaregenerallycenteredonthequestionofwhetherornotacompanycanexpecttohavesufficientsuppliesofcleanwaterinthefuturetosupportitsbusiness.Thisareaofriskcanbeinfluencedbyincreasingcompetitionforwaterresources,growingwaterscarcity,drought,climatechange,watersourcecontamination,infrastructurefailure,poorlymanagedwaterallocationsystems,ineffectivepublicsectormanagementcapacity,insufficientwaterresourcemanagementpolicyandotherfactors.Downstreambusinessrisksstemfromthefactthatacompany’swateruseandwastewatertreatmentpracticesmayimpactotherwaterusersandstakeholders.
Water-relatedrisksmustbeaddressedwithinthecontextofthelocalwatersheds.Itisimportanttoconsidertheimpactofacompany’swateruseinconjunctionwiththeimpactsfromallwaterusersinthewatershed,asimpactsarecumulative.Theriskofwaterscarcityand/orpoorqualityisnotonlyabusinessrisk,butarisksharedwiththecommunityandotherusers.Efficiencyimprovementsareimportant,butthemostappropriateresponseactionsmaynotalwaysinvolvereductionofthewaterfootprint(sometimesareductionofawaterfootprintisnotpossible).Inmanycases,policyandregulatoryengagementtosupportimprovedmanagementofthesharedresourcemaybeamoreappropriateresponse.
Whenwaterresourcesareadverselyaffectedbythecumulativeimpactsfrommultipleuses,whetherthoseimpactsarearesultofacompany’suse,realorperceived,itcanaffectthatcompany’ssociallicensetooperate.Italsomaytriggerregulatoryresponsesfromgovernments.Thesesocialandpoliticalreactionscanleadtoincreasedwateracquisitionandtreatmentcosts,reducedwatersupply,morestringentwastewatertreatmentrequirements,riskierinfrastructureplanningandcapitalinvestmentsandpotentialreputationdamage.Inrarecases,thebusinessmaybeshutdownbythelocalgovernmentormayotherwisenolongerbeviableandvoluntarilyshutdown.
TheConservancyandtheCompanyhavebeencollaboratingonanexplorationofvariousapproachesandtoolsforassessingandmanagingwater-relatedrisk.Wearelearningaswego.Thisreportsummarizessomeofourearlyfindings.
1.3 THE NATURE CONSERVANCy’S FRESHWATER CONSERVATION GOALSTheNatureConservancyisaninternationalnon-governmentalorganizationdedicatedtotheconservationofbiologicaldiversity.TheConservancy’smissionistopreservetheplants,animalsandnaturalcommunitiesthatrepresentthediversityoflifeonEarthbyprotectingthelandsandwaterstheyneedtosurvive.TheConservancy’son-the-groundconservationworkiscarriedoutinall50statesintheU.S.andinmorethan30othercountries,anditissupportedbyapproximatelyonemillionindividualmembers.TheNatureConservancyhasprotectedmorethan47millionhectaresoflandandhundredsofriversandlakesaroundtheworld.
WhiletheConservancy’smissionisfocusedonsustainingtheEarth’sdiversityofplantsandanimals,theorganization’sbroadercontributiontosocietyisintheprotectionofthelifesupportsystemsofourplanet–wecannotprotectthediversityoflifeonthisplanet,includinghumanlife,withoutprotectingtheecosystemsthatsustainusall.Naturalecosystemsprovidehumanitywithcleanwater,foodandfiber.Naturalresourcesderivedfromecosystemssupportmajorsectorsofoureconomy,whetherintheformoffisheriesthatsustaincoastalcommunitiesorthroughtourismeconomiesthatrelysoheavilyuponnature-basedrecreation.Healthynaturalecosystemsperformanarrayofvaluableserviceswithsubstantialeconomicvalues,includingpurifyingourwatersupplies,sequesteringcarbonandhelpingtoregulatetheclimateandhydrologiccyclesofourplanet.
5
6
Throughitsworkonmorethan600freshwaterprojectsaroundtheworld,theConservancyhaslearnedwhatittakestomakeriversandlakeshealthyandkeepthemhealthy.Theorganizationhasdeeprootsincommunitiesaroundtheworld,bringingresources,expertiseandtoolsthatempowerpeopletoprotectwatersthatsustainfamilies,livelihoodsandwaysoflife.Especiallyfortheworld’spoor,partneringwiththemtopreservetheirnaturalsourcesofwater,foodandothernecessitieshelpspreservetheircultures,theireconomicpotentialandtheirpowerofself-determination.Someofthesefreshwaterprojectsfocusoniconicwatersthatarethelifebloodofnations,liketheGreatLakesandYangtzeRiver.Somearelesserknown,yetarehubsofinnovation,likethePenobscotRiverinMaine,whichisaprovinggroundforsolutionsthatcanaccelerateandimproveprotectionofriversandlakesaroundtheworld.
TheConservancyunderstandsthattoreachitsgoals,theorganizationmustalsoequippeoplewithbetterwaystousethewaterresourcesnaturegivesus.DoingsobenefitsnotonlytheConservancy’sfreshwaterprojects,italsocreatesaripple-effectthatbenefitscountlessotherriversandlakesaroundtheworld.Therefore,akeyaspectoftheConservancy’sworkisgivingleadersingovernmentandbusinesspragmaticalternativestowastefulanddestructivewaysofusingriversandlakes.TheConservancy’scommitmenttotheadvancementofwaterfootprintingsupportstheseobjectives.
Throughitsworkinwatershedsaroundtheworldandcollaborationswithgovernments,corporationsandlocalcommunities,theConservancyexpectsthatby2015,itwillbringenhancedprotectionandrestorationtomorethan1.5millionkilometersofriverandimprovedwater,foodandelectricitysecuritytomorethan200millionpeople.
1.4 THE COCA-COLA COMPANy’S WATER STEWARDSHIP GOALSWaterisakeyingredientinalloftheCompany’sproducts.ItisessentialtotheCompany’soperationsandthewell-beingofthecommunitiesandecosystemswheretheCompanyoperates.Inresponsetotheveryrealandgrowingvulnerabilityofthefreshwaterthatsustainsthebusiness,theCompany’saimistoestablishatrulywater-sustainablebusinessonaglobalscalethroughacommitmenttowaterstewardship.
TheCompany’swaterstewardshipjourneybeganwithafocusonwateruseinitsownoperations,whereithasgreaterinfluence.In2005,theCompanyconductedglobalwaterriskassessmentstogainabetterunderstandingofthepotentialwaterrisksfacingthebusiness,localcommunitiesandecosystems.ThisledtotheestablishmentoftheCompany’swaterstewardshipframework,whichfocusesonplantperformance,watershedprotection,sustainablecommunitiesandraisingglobalawarenessandactionaroundwaterchallenges(Figure 1).
Riskassessmentswereupdatedin2008,andasystem-widerequirementwentintoeffectthatallCoca-Colasystembottlingplantsevaluatethesustainabilityofthewaterresourcesusedtoproducetheirbeverages,aswellasthesustainabilityofthewaterresourcesusedbythesurroundingcommunity.Theseevaluationsincludedetailedassessmentsofthevulnerabilitiesassociatedwithquantityandqualityoflocalwaterresources,andtheyresultinthedevelopmentofsourcewaterprotectionplansinpartnershipwithcivilsocietyandgovernments.Allplantsarerequiredtocompletethisprocessandbeactivelyimplementingtheirprotectionplansby2013.Thesesourcewaterprotectionplansaddresscriticalwaterchallengesatawatershedlevel,fromhydrologicalvulnerabilitiestolocalgovernmentmanagementcapacity.
7
Inaddition,theCompanysetanaspirationalgoalin2007tosafelyreturntocommunitiesandnatureanamountofwaterequivalenttowhatisusedinallofitsbeveragesandtheirproduction.Theformulationofthistargetcamefromdialoguewiththeinternationalwaterstakeholdercommunityandsetmetricsforwaterstewardship.
the company has set targets to guide its water stewardship in three areas:
• REDUCEtheCompany’swateruseratiowhilegrowingtheunitcasevolume,withatargettoimprovewaterefficiencyby20%over2004levelsby2012.By2009,theCompanyhadachieveda12.6%improvementoverthe2004baseline.6
• RECyCLEthewaterusedinoperationsbyreturningtreatedprocesswatertotheenvironmentatalevelthatsupportsaquaticlifebytheendof2010.In2009,89%ofCoca-Colasystemfacilities(approximately95%ofreportedvolume)wereincompliancewiththeCompany’swastewatertreatmentstandards.6
• REPLENISHthewaterusedinfinishedbeveragesbyparticipatinginlocallyrelevantprojectsthatsupportcommunitiesandnature,andmeetandmaintainthisgoalby2020.Estimatesarethatbytheendof2009,theCompanywasreplenishingapproximately22%ofthewaterusedinitsfinishedbeveragesthroughthesupportofsome250communitywaterprogramsinapproximately70countries.6,7,8,9
TheCompany,recognizingthatwateruseinagricultureisasignificantcomponentofthewaterfootprint,hasestablishedasustainableagricultureprogram.Thestrategyextendsbeyondwaterresourcesandconsidersenvironmentalimpacts,socialimplicationsandeconomicpressures.TheCompany’sapproachtosustainableagricultureismulti-dimensionalandfoundedonprinciplestoupholdworkplacerights,protecttheenvironmentandhelpbuildsustainablecommunities.
PLANT PERFORMANCE
WATERSHEDPROTECTION
SUSTAINABLECOMMUNITIES
GLOBALAWARENESSAND ACTION
Figure 1. The Coca-Cola Company’s Water Stewardship Framework
6SupportingdocumentscanbefoundonTheCoca-ColaCompany’swebsite:www.thecoca-colacompany.com/citizenship/community_initiatives.html.7TheCoca-ColaCompany.2010.ReplenishReport.8LimnoTechandTheNatureConservancy.2010.QuantifyingWatershedRestorationBenefitsinCommunityWaterPartnershipProjects.9GlobalEnvironment&TechnologyFoundationwithDr.AlbertWright.2009.QuantifyingWaterAccessBenefitsinCommunityWaterPartnershipProjects.
8
WaterfootprintassessmentscanbehelpfulinsupportingthesewaterstewardshipeffortsbyprovidingatoolforunderstandingandmeasuringwaterusethroughouttheCoca-Colasystem’sdirectoperationsanditssupplychain.TheCompanyhasbeenactivelyinvolvedintheexplorationoftheconceptofwaterfootprintingforseveralyears,anditwasinstrumentalinformingtheWaterFootprintWorkingGroup(WFWG)thatcommissionedseveralearlystudiesaddressingwaterfootprintsandwateroffsets.TheWFWGevolvedintotheWaterFootprintNetwork(WFN)in2008,andtheCompanycontinuestobeanactivememberofandanintegralcontributortothedevelopmentprocess.
TheCompanyalsoisengagedinactivitiesoftheBeverageIndustryEnvironmentalRoundtable(BIER),acoalitionofglobalbeveragecompaniesworkingtogethertodrivecontinuousimprovementinwaterconservationandresourceprotection.TheCompanyisamemberofaworkinggroupofBIERthatisdevelopingsector-specificguidelinesforcalculatingthewaterfootprintofabeverageproductorenterprise.
Inaddition,TheCoca-ColaCompanybecameoneofthefirstcompaniestocommittotheUnitedNationsGlobalCompact’sCEOWaterMandate.Thisprogramisdesignedtohelpcompaniesbettermanagewateruseintheirdirectoperationsandthroughouttheirsupplychains.TheCompanyisanactiveparticipantinthreeworkstreamson:ResponsibleBusinessEngagementwithWaterPolicyandManagement,WaterandHumanRights,andCorporateWaterDisclosure.
1.5 THE WATER FOOTPRINT CONCEPTWaterfootprintingbuildsontheconceptof“virtualwater,”whichreferstothewater“embedded”inaproduct;thatis,waterthatisconsumedindirectoperationsandthroughoutthesupplychain.Awaterfootprintofaproductconsidersbothdirect(operational)andindirect(supplychain)wateruse.Italsoreferstowhereandwhenthewaterwasused.Awaterfootprinthasthreecomponents:
• Thegreen water footprintreferstoconsumptionofgreenwaterresources(rainwaterstoredinthesoilasmoisture);
• Theblue water footprintreferstoconsumptionofbluewaterresources(surfaceand groundwater);
• Thegrey water footprintreferstopollutionandisdefinedasthevolumeoffreshwaterthatisrequiredtoassimilatetheloadofpollutantsbasedonexistingambientwaterqualitystandards.
Theterm“consumption”withrespecttogreenwaterreferstorainwaterlosttotheatmospherefromthelandsurfacewhenitistakenupandtranspiredbyplants(“evapotranspiration”),plusrainwaterincorporatedintotheharvestedcrop.Theterm“consumption”withrespecttobluewaterreferstosurfacewaterorgroundwaterthatisevapotranspired,incorporatedintoaproduct,returnedtoadifferentwatershedorreturnedduringadifferenttimeperiod.Together,thegreenandbluewaterfootprintsmakeupthe“consumptive”waterfootprint.Thiswaterisnotavailabledownstreamforotheruses.
Greywaterresultsfromgreenorbluewaterthatisnotconsumed.Forinstance,whenrain(greenwater)fallsonagriculturallandandthenrunsoffthefield,itmaycarryerodedsoilorchemicals,suchasfertilizers,intoanadjacentwaterbody,therebycreatinggreywater.Whenbluewateriswithdrawnfromariver,lakeoraquiferandusedinmanufacturingprocesses,itmaybereturnedtoawaterbodyasgreywater,containingmoreorlesspollutantsthanthewaterthatwasoriginallywithdrawn.Thecalculationofagreywater
9
footprintisbasedonthequantityofwaternecessarytodiluteorassimilatepollutantsinthegreywatertosuchadegreethatthewaterbecomessuitableasbluewaterforotherdownstreamuses.Green,blueandgreywaterfootprintsareallrepresentedaswatervolumes.
Figure 2depictsthecomponentsofawaterfootprint.Foraproduct,thedirectwaterfootprintreferstowaterconsumedinoperations.Indirectwaterusereferstowaterconsumedinthesupplychaintoproducethematerialspurchasedbytheproducer.10Bothdirectandindirectwaterfootprintsarecomprisedofgreen,blueandgreywaterfootprints.Waterfootprintaccountingdiffersfromthetraditionalstatisticsonwateruse,whichaccountonlyfordirectbluewaterwithdrawalsand/ornon-consumptivewateruse(returnflow).
TheWaterFootprintNetworkhasdevelopedmethodsforcalculatingwaterfootprints,andithasbeguntoformulateapproachesforassessingtheirpotentialimpactsanddesigningresponsestrategies.ThesemethodsaredocumentedintheWater Footprint Manual.AsdescribedinthemanualandshowninFigure 3,awaterfootprintassessmentisconductedthroughfourphases.
Duringthefirstphase,thescopeoftheassessmentisdefinedbasedongoalsandobjectives.WaterfootprintaccountingisconductedduringPhase2.Thesustainability11ofthewaterfootprintisevaluatedduringPhase3,andresponseactionstomitigateimpactsareformulatedduringPhase4.
ThreewaterfootprintassessmentpilotstudiesfortheCoca-Colasystem’sproductsaredescribedinthefollowingsection.
WaterConsumption
WaterPollution
DIRECT WATER
FOOTPRINT
INDIRECT WATER
FOOTPRINT
GREEN WATER FOOTPRINT
GREEN WATER FOOTPRINT
BLUE WATER FOOTPRINT
BLUE WATER FOOTPRINT
GREY WATER FOOTPRINT
GREY WATER FOOTPRINT
Non-consumptive water use (return flow)Water Withdrawal
Figure 2. Components of a Water Footprintsource: Water Footprint Manual (2009)
Figure 3. Phases of a Water Footprint Assessmentsource: Water Footprint Manual (2009)
setting goals and scope
Water footprint
accounting
Water footprint
sustainabilityassessment
Water footprint response
formulation
10Theendusewaterfootprint,waterusedbyaretailerand/orconsumer,mayalsoberelevanttosomeproductwaterfootprints(e.g.,soaps,detergents).11Thisphasewasnamed“ImpactsAssessment”atthetimeofthethreepilotstudiesdiscussedinSection2.
—JacquesCousteau
11
Thethreepilotstudiesdescribedinthissectionwereconductedfrom2008to2010followingthemethodologyoftheWaterFootprintNetwork.Thestudieswereundertakenearlyinthewaterfootprintdevelopmentprocesswiththeintenttotestthemethodology,informthescienceandhelpincreaseunderstandingofthewaterfootprintconcept.
ThefirstwaterfootprintassessmentfocusedontheCompany’smostpopularsparklingbeverage,Coca-Cola.Akeyfindingofthisstudywasthatthewaterfootprintofsugarisasignificantcomponentofthetotalwaterfootprint.Basedonthisresult,thesecondstudyexaminedthewaterfootprintofrefinedsugarfromsugarbeetssuppliedtotheCoca-Colasystem’sEuropeanbottlingplants.ThethirdpilotstudyexploredthewaterfootprintoftwoorangejuiceproductsproducedfortheNorthAmericanmarkettobetterunderstandwaterusethroughoutthesupplychainforanon-sparklingbeverage.
2.1 WATER FOOTPRINT OF 0.5 LITER COCA-COLA® IN PET BOTTLEAlogicalchoiceforthefirstwaterfootprintassessmentwastheCompany’ssignaturedrink,Coca-Cola.ThestudywasconductedbyresearchersattheUniversityofTwenteintheNetherlandsincollaborationwithCoca-ColaEnterprisesInc.(CCE)andCoca-ColaEurope.Theproductselectedforstudywasa0.5literPET-bottleofCoca-ColaproducedatCCE’sDongenbottlingplantintheNetherlands.Thespecificproductselectedforthispilotstudywasdrivenbytheresearchers’proximitytoandfamiliaritywiththelocalindustriesandthesupportofthelocalbottlerandbusinessunit.
Water Footprint AccountingAwaterfootprintofCoca-Colaisthesumofindirectwateruseinthesupplychainplusdirectoperationalwateruse(Figure 4).
Indirect Water Use in the
Supply ChainDirect Operational
Water Use Water Footprint
Bottling Plant
Ingredients
Packaging
PET Bottle, Closure, Label,
Tray Carton, Tray Shrink Film,
Pallet Stretch Wrap, Pallet
Beet Sugar, Phosphoric Acid,
Caramel, Caffeine, C02
Cleaning, Mixing, Blending, Filling
Figure 4. Indirect and Direct Water Footprint Components
2.0
PIL
OT
STU
DIE
S
12
Theaccountingprocessbeganwithwaterusedinthesupplychaintoproduceingredientsandothercomponents(e.g.,bottles,labels,packingmaterials).IngredientsincludesugarmadefromsugarbeetsgrownintheNetherlands,carbondioxide(CO2),caramel,phosphoricacidandcaffeine.Thenamesandquantitiesofingredientsinnaturalflavoringsaretradesecretsandwerenotincludedintheassessment,buttheabsenceofthesedatashouldnotimpactthecasestudyorrelatedconclusionsbecausethewaterfootprintsassociatedwithsuchnaturalflavoringarenotexpectedtobematerialinnature.12Thesupplychainwaterfootprintalsoincludesoverhead,whichaccountsforwaterusedtoproducetheenergythatpowerstheplants,buildingmaterials,officepaper,vehicles,fuelandotheritemsnotdirectlyrelatedtooperations.
Waterusedinoperationsconsistsofthewaterincorporatedintotheproductasaningredientandwaterusedinproductionprocesses.ThroughouttheCoca-Colasystem,theprocesswateristreatedtorigorousstandardsbeforeitisreusedinsideaplantorreturnedtocommunitiesandnature.
Theestimatesarethatthegreenwaterfootprintofthe0.5literCoca-Colabeverageis15liters,thebluewaterfootprintis8litersandthegreywaterfootprintis12liters.Thegreenandblue(consumptive)waterfootprintsareprimarilyassociatedwithsugarbeetproduction.Thesugarbeetsarelargelyrainfed(green),andsomeexternal(blue)watersupplyisrequiredforirrigation.TheblueplusgreenwaterfootprintsforDutchsugarbeetsfromdifferentregionsareshowninFigure 5.Greenwatermakesupapproximatelytwo-thirdsoftheconsumptivewaterfootprint.
Noordelijke klei
Noordelijk dal/veen
Gelderland
Limburg
Oost-BrabantWest-Brabant
Zeeuws-Vlaanderen
Zeeuwse-Eilanden
Noord en Zuid-Holland
Oost en Zuid Flevoland
Noordoostpolder
Noordelijk zand
1531
1429
1530
1533
1738
1223
1323
1119
1119
818
816
510
Figure 5. Consumptive Water Footprints for Dutch Sugar Beets
12Naturalflavoringsreportedinarecentreporttitled“APilotinCorporateWaterFootprintAccountingandImpactAssessment:TheWaterFootprintofaSugar-ContainingCarbonatedBeverage”(Ercin,etal.2009.UNESCO-IHEInstituteforWaterEducation,ValueofWaterResearchReportSeriesNo.39)arenotbasedonappropriateassumptionsforCoca-Cola.
13
Thegreywaterfootprintisassociatedwiththesupplychain.Aportionofthenitrogenappliedasfertilizertothesugarbeetfieldsisreleasedtoreceivingwaters.CoolingwaterassociatedwithPETbottleproductionresultsinathermalload,whichisconsideredinthegreywatercomponent.
Theoperationalwaterfootprint(0.4liters)isentirelybluewater,representingwateraddedasaningredient.Theoverheadwaterfootprintassociatedwithoperations(waterusedfordomesticpurposesintheDongenplant)wasdeterminedtobezerobecauseallwastewateristreatedinapublicwastewatertreatmentplantandreturnedtotheenvironment.13Thesupplychainoverheadwaterfootprintwasalsocalculatedandfoundtobenegligible.Theoverallresults,includingallcomponents,areshowninFigure 6.14
Impacts AssessmentToassesspotentialimpactsfromthesewaterfootprints,theresearchersfocusedonthelargestcomponent:sugarbeetsgrownintheNetherlands.Dutchsugarbeetsaregrowninaregionofrelativewaterabundance,andthecropsareprimarilyrain-fed.Theneedforexternalwatersupplyislow,sotheuseofbluewaterisminimal.Forthesereasons,thereappearstobenosignificantadverseimpactsofgreenandbluewateruseassociatedwithsugarbeets.
13Thegreywaterfootprintmethodologyisevolving;theseresultsreflecttheapproachatthetimeofthisstudy.14Asubsequentmoredetailedstudyofthesugarbeetwaterfootprint(describedinsection2.2ofthisreport)indicatesthatinfactthebluewaterfootprintismuchsmaller,reflectingactuallowirrigationwateruseintheNetherlands.
Figure 6. Water Footprint of a 0.5 liter of Coca-Cola® in Dongen, the Netherlands
Packaging(7 Liters)
Ingredients(28 Liters)
Supply Chain Water Footprint
Operational Water Footprint
Total Water Footprint
PackagingBlue | 100%
Grey | 83%
Green | 13%Blue | 4%
Grey | 20%
Blue | 28%Green | 52%
Grey | 34%
Blue | 23%
Green | 43%
(12 Liters)(15 Liters)
(8 Liters)(0.4 Liters)
14
Intermsofgreywater,iftheappliedratesofnutrientsarehigherthantheuptakeofthecrop,excessfertilizerscanrunoffandleadtoeutrophication,theenrichmentofsurfacewaterswithnutrientsthatpromoteexcessivegrowthofalgae.Potentialconsequencesincludefishkillsanddegradationofthewaterqualityofrecreationalsurfacewaterssuchasswimmingareas.Nitrateleachingfromfarmlandcanalsocontaminatedrinkingwatersupplies.TheaveragefertilizerapplicationrateintheNetherlandsisoneofthelowestamongtheEuropeansugarbeetproducingcountries15,andthegovernmentregulatesfertilizerapplication16,minimizingtheriskofexcessiveapplication.Nevertheless,accordingtotheNetherlandsEnvironmentalAssessmentAgency17,eutrophicationisaconcernintheNetherlands.Theimpactsassessmentindicatedthattheremaybeaneedtoengagewithgovernmentsandotherstakeholderstodiscussbettermanagementmeasurestoaddressthisissue.
What was learned from the Coca-Cola water footprint study?
• More than two-thirds of the total water footprint of a 0.5 liter PET bottle of Coca-Cola from the Netherlands comes from blue and green water used in the supply chain to grow sugar beets.Nearlyhalfofthetotalwaterfootprintisrainwater(green)usedbysugarbeetsinthiswater-richtemperateclimate.Bluewateraccountsforapproximatelyone-quarterofthetotalwaterfootprint.18
• Approximately one-third of the total water footprint is grey water associated with the supply chain.Somenitrogenassociatedwithfertilizerusedonsugarbeetfieldsisreleasedtotheenvironment.ThegreywaterfootprintalsoisassociatedwithcoolingwaterforPETproduction,whichresultsinathermalload.
15FAO(FoodandAgricultureOrganization).2008.FERTISTATDatabase-Fertilizerusebycropstatisticsdatabase.16InternationalInstituteforBeetResearch(IIRB).2004.SugarbeetinEurope:Anenvironmentallyfriendlycropforsustainableplantproductionsystems.17NetherlandsEnvironmentalAssessmentAgency.2008.EnvironmentalPressureintheNetherlands,EutrophicationTheme:IntroductionandPolicy.18Asubsequent,moredetailedstudyofthesugarbeetwaterfootprint(describedinsection2.2ofthisreport)indicatesthatinfact,thebluewaterfootprintismuchsmaller,reflectingactuallowirrigationwateruseintheNetherlands.
• The operational water footprint comprises only about 1% of the total water footprint. Theoperationalwaterfootprintisallblueandrepresentswateraddedasaningredient.Theoperationalgreywaterfootprintiszero,becausethewastewateristreatedtomeetorexceedwastewatertreatmentstandards.UnderTheCoca-ColaCompany’s“Recycle”commitment,allplantswillattainlocalandtheCompany’srigorousglobaltreatmentstandards.
• The overhead water footprint for the products evaluated is negligible.Thiswasoneofthefirststudiestoquantifytheoverheadwaterfootprintofaproduct.Priortothestudy,therewasrecognitionthattheoverheadcomponentisapartoftheoverallwaterfootprintofaproduct,butitwasunclearhowrelevantitwas.
What are the implications for the Coca-Cola system?
• The results of this pilot study suggest that a closer look at the water footprints of sugar produced from sugar beets, as well as other sweeteners supplied to the Coca-Cola system across Europe, is warranted.ThesugarbeetpilotstudydescribedinthefollowingsectionwasconductedwiththeintenttoincreaseunderstandingofwateruseassociatedwithsugarbeetsproducedinEurope.
• This study highlighted the need to look at the components of water footprints separately, because an aggregated number can hide the importance of reducing the direct water footprint.TheCoca-Colasystemwillcontinuetofocusonimprovingwaterefficiencyandensuringthatallprocesswateristreatedtorigorouswastewatertreatmentstandardswithindirectoperations.Theseactionshaveapositiveimpactonthewaterfootprint.
• Beyond sugar beets, the Company has established a sustainable agriculture program.Thispilotstudyreaffirmedtheimportanceofincludingagriculturalingredientsinawaterfootprint.TheCompanyisactivelyengagedwithWorldWildlifeFund(WWF)andothersintheBetterSugarcaneInitiative(BSI),amulti-stakeholderinitiativeworkingtodevelopacertificationforsustainablysourcedsugarcane.
2.2 WATER FOOTPRINT OF BEET SUGAR SUPPLIED TO THE COCA-COLA SySTEM’S EUROPEAN BOTTLING PLANTSBasedontheresultsofthefirstwaterfootprintassessmentofa0.5literPETbottleofCoca-ColaintheNetherlands,Coca-ColaEuropewasinterestedinexaminingthewaterfootprintandassociatedimpactsfornaturalsweetenerssuppliedtoits112Europeanbottlingplants.ThisongoinganalysisisbeingconductedbydenkstattincooperationwiththeInstituteforWaterQuality,ResourcesandWasteManagementattheViennaUniversityofTechnology.
Todate,thewaterfootprintaccountingforsugarbeetshasbeencompleted.Workonsugarcaneandhighfructosecornsyrup(HFCS)isunderway.Approximately70%ofrefinedsugarpurchasedfortheCoca-ColasysteminEuropeisfromsugarbeetsgrownin19Europeancountries.
15
16
Water Footprint AccountingAllrelevantactivitiesthatusewaterintheproductionofbeetsugarwereaddressedintheaccountingprocess,asshowninFigure 7.Rawbeetsareprocessedatsugarbeetrefiningfactoriesintoseveralproducts,includingbeetpulp,molassesandsucrose.
ThemethodologyoutlinedintheWater Footprint Manualwasfollowedwithsomemodifications.Inparticular,thebluewaterfootprintwascalculatednotasthedifferencebetweenthecropwaterrequirement(CWR)andgreenwater,butratherthroughsite-specificdataprovidedbythesugarcompanies.Theresultsindicatethatlesswaterisactuallyappliedforirrigationthanprojected,afindingconsistentwithirrigationstrategiesfocusedonmaintainingconsistentharvestsratherthanmaximumyields.
Thegreywaterfootprintforsugarbeetswascalculatedbasedonthepollutantloaddividedbythemaximumacceptableconcentrationfornitrogen,consideredanindicatoroftheimpactoffertilizeronwaterquality.19Itwasassumedthat10%oftheappliednitrogenfertilizerleachestogroundwater.TheamountofdilutionwaterwascalculatedusingthewaterstandardoftheU.S.EnvironmentalProtectionAgency(EPA)fornitrogen(10mg/liter)20,whichiswellwithintherangeofacceptableground/drinkingwaterrequirements
19Aldaya,M.M.andA.Y.Hoekstra.2010.TheWaterNeededtoHaveItaliansEatPastaandPizza.AgriculturalSystems.103:351-360.20NationalPrimaryDrinkingWaterRegulations.CodeofFederalRegulations(CFR)Title40;Part141.
Cultivation of main raw materials (sugar beet)
Transport of main raw materials to the sugar plant
Sugar production
Transport of sugar toCoca-Cola system bottling plants
Figure 7. Beet Sugar Water Footprint Calculation Stages
17
forEuropeminusanassumednaturalbackgroundconcentration.Forsugarrefineries,EuropeanUnionBestAvailableTechnique(BAT)emissionvaluesforthefoodindustry21wereusedtocomputethegreywaterfootprint.
TheaveragegreenwaterfootprintforsugarfromsugarbeetsacrossallregionsofEuropeisestimatedtobe375liters/kgsugar,or67%ofthetotalwaterfootprint.Theaveragebluewaterfootprintis54liters/kg,or10%ofthetotal.Theaveragegreywaterfootprintis128liters/kg,comprising23%ofthetotalwaterfootprint.Themagnitudeandcolorcompositionofthewaterfootprintdependsonthesourcingregion,asshowninFigure 8.Theresultsinthefigureareclusteredaccordingtoclimate.TheamountofwaterrequiredbysugarbeetsishighestinGreece,Romania,ItalyandSpain.Threeofthesecountrieshavesignificantlylargerbluewaterfootprints(associatedwithirrigation)thantheothergrowingregions.
Thisstudyalsoevaluatedthewaterconsequencesofusingthelandforagriculturalpurposesascomparedtonaturalforest.Thiscaninformtheimpactsassessment,becauseitprovidesinformationontheevapotranspirationdemandfromnativevegetationifthesugarbeetcropswerenotcultivated.Thenaturalvegetationaroundthesugarproductionareasismostlyforest,buttheresearchersdeterminedthatthestandardapproachforwaterfootprintcalculations(Penman-Monteith22)isnotsuitableforforestsbecausetranspirationandinterceptionevaporationcannotbedefinedappropriately.Inordertoconductthecalculation,thestandardgrasssurface23wasusedasareferenceratherthanthenaturalvegetation.Thisisaconservativeassumption,becausethewaterdemandforforestsishigherthanforgrasslands.Theresultssuggestthatuseofthelandforgrowingsugarbeetsconsumeslesswaterthanwouldbeconsumedbynaturalvegetation.
ThewaterfootprintofsugarfrombeetsgrownintheNetherlands(incombinationwithBelgiumandtheUK)isapproximately12%lowerthantheestimatemadefortheCoca-Colawaterfootprintstudy.Thelargerestimateassumesthatthedifferencebetweencropwaterrequirementandavailabilityofgreenwateriscoveredbyirrigation(bluewater).Instead,theinputsusedforthesugarstudyarebasedonactualirrigation
Lite
rs/K
g S
ugar
1 , 200
1 ,000
800
600
400
200
0
Austria, Hungary
SerbiaRomania
Poland
Czech Republic, LithuaniaGreece
France
Finland, SwedenSpain Italy
Denmark
Switzerland, Germany
Belgium, Netherlands, United Kingdom
= Transport/Energy = Grey Water = Blue Water = Green Water
Figure 8. Water Footprints of Beet Sugar Across Growing Regions
21EuropeanCommission.2006.IntegratedPollutionPreventionandControl:ReferenceDocumentonBestAvailableTechniquesintheFood,DrinkandMilkIndustries.22Allen,R.G.,L.S.Pereira,etal.1998.Cropevapotranspiration-Guidelinesforcomputingcropwaterrequirements.FAOIrrigationanddrainagepaper56.23Ibid.
18
dataobtainedfromthesugarindustry,whichindicatedthatalmostnobluewaterisusedtoproducebeetsugarintheNetherlands.Thebluewatercomponentwasfoundtocompriselessthan1%ofthetotalwaterfootprintofDutchsugarbeets,comparedtothe28%estimatefromtheCoca-Colastudy.
Whenthelowerestimatesfromthebeetsugarstudyareusedtocomputethewaterfootprintofa0.5literPETbottleofCoca-ColaproducedintheNetherlands,thebluewaterfootprintdecreasesfrom8litersto1liter,andthetotalwaterfootprintdecreasesby9%.Theseresultshighlighttheimportanceofobtainingsite-specificdatawherepossible.AsFigure8indicates,thewaterfootprintofthisproductwillbehighlydependentonthelocationwherethesugarissourced.
Uncertainty AssessmentThispilotstudyidentifiedachallengeassociatedwithgreywaterfromsugarrefineries:apartfromastandardfornitrogen,thereisnocommonreceivingwaterstandardforthebeet-growingcountriesinEurope.Theresearchersexploredthesensitivityofthegreywaterfootprintcalculationbasedonthreedifferentwaterqualitystandards.Thisexerciseshowedthatthetypeoftreatmenthasasignificantimpactonthegreywaterfootprint,asexpected.Forsugarfactorieswithlowlevelsoftreatment(i.e.,mechanicalornotreatment),thechoiceofstandardwasfoundtohaveaverysignificantinfluenceontheresult.Forsugarplantswithadequatetreatment,thechoiceofstandardwasfoundtohavelesserinfluenceonthegreywaterfootprint.Thisexercisedemonstratesthesensitivityofthegreywaterfootprintcalculationtothechoiceofstandard.
Why did the water footprint of Coca-Cola decrease?ThewaterfootprintofCoca-ColadescribedinSection2.1wasrecalculatedbasedontherefinedwaterfootprintestimatesfromthesugarbeetpilotstudy.Theresultingtotalwaterfootprintwasfoundtobesmallerthantheoriginalestimate,andtheblue(irrigation)waterfootprintdecreasedsignificantly.Thedifferenceisduetotherobustnessoftheinputs.Forthesugarbeetwaterfootprintstudy,completedquestionnaireswerereceivedfrom65EuropeansugarplantsthatsupplytheCoca-Colasystem.Questionnairesrequesteddetailedinformationonsugarbeetcultivationandsugarfactoryoperations.Incontrast,theoriginalestimateswerebasedonpublicdatasets,anditwasassumedthatthedifferencebetweenthecropwaterrequirementandtheavailabilityofgreenwaterwascoveredbyirrigation(bluewater).Themorerobustdatasetindicatedthatisnotthecaseandthatlessirrigationwaterisactuallyapplied.
-9%
19
What was learned from the beet sugar water footprint study?
• The water footprint associated with beet cultivation is the largest component of the total water footprint of beet sugar.Onaverageacrossthegrowingregions,thewaterfootprintofthebeetcropsmakesup97%ofthetotalwaterfootprintofbeetsugar.
• European sugar beets are generally grown in water-rich temperate climates using mainly green water.MostEUcountriesuseverylittleirrigation(blue)watertogrowsugarbeets,withsomenotedexceptionsintheMediterraneanregion.
• Differences in the consumptive (green plus blue) water footprint between countries can be more than three-fold.Thetotalconsumptivewaterfootprintsrangefrom279liters/kg(France)to974liters/kg(Greece).Thecountrieswiththelargestconsumptivewaterfootprinthavehighevapotranspirationratesand/orlowyields.
• Grey water footprints in the sugar beet supply chain come mainly from the field, not the factory.However,sugarplantsinsomecountrieshavelargegreywaterfootprintsduetolowlevelsofwastewatertreatment.Almostthree-quartersofthewaterfootprintforsugarfactoriesisgrey.
• The use of supplier-based data provides a more realistic picture of water use in the supply chain compared to footprints based on public data.Publicdataarebasedonassumptions,whereassupplierdataarebasedonactualperformance.ActualcropmanagementpracticesforsugarbeetsgrowninEuropeutilizedlessirrigationwaterthanindicatedbypublicdata.Thisisbecauseperiodsofsoilmoisturedeficitduringthelastmonthsofgrowthareallowedinordertooptimizeyields.
• In the cultivation areas, natural vegetation uses as much as or more green water than sugar beets.Thereplacementofnaturalvegetationwithsugarbeetcropsappearstoresultinlowerwaterconsumption.
What are the implications for the Coca-Cola system?
• Sugar beets grown in the Netherlands are a water-efficient crop. Thislocalsourceisgrowninawater-richtemperateclimateusingmainlygreenwater.
• There is a wide variation in the water footprint of sugar beets grown in different regions.Theremaybeopportunitiesinsomegrowingregionsforbetteruseofwaterresourcesassociatedwithwatersupplyforbeetcultivation.Theanalysisalsohighlightspotentialopportunitiestoaddresspoorwastewatertreatmentandassociatedwaterqualityproblemsforsomesugarprocessingplants.
• The findings of this pilot study helped define future actions related to supply chain sustainability.TheCompanyhasnowinitiatedfurtherworkinEuropetotrialawaterfootprintsustainabilityassessmentcoveringenvironmental,socialandeconomicimpactsforrefinedsugarmadefromsugarbeets.TheCompanyisengagingwithselectedEuropeanstakeholders,includingbeetsugarsuppliers,forconsultationandadviceduring
theproject.
20
2.3 WATER FOOTPRINT OF ORANGE JUICE PRODUCTSTheCoca-ColaCompanyistheworld’slargestproducerofjuiceandjuicedrinks,with100brandsofjuiceand1,100juiceproductssoldin145countries.HavingrecentlycompletedawaterfootprintoftheCompany’ssignaturesparklingbeverage(Coca-Cola)andawaterfootprintofakeysweetener(sugarbeets),theCompanyalsowantedtoexplorethewaterfootprintofajuicebeverage.TwoorangejuiceproductsproducedfortheNorthAmericanmarketwereselectedforthewaterfootprintpilotstudy:
• SimplyOrange(notfromconcentrate)in59oz.PETcarafe
• MinuteMaidOriginal(reconstitutedfromconcentrate)in64oz.fiber-basedboardgable-topcarton
Thecalculationsconsiderallwaterconsumedingrowingorangesandwaterconsumedinprocessingandpackagingthefinalorangejuiceproducts(Figure 9).TheorangesforSimplyOrangearegrowninFloridaandthestateofSaoPaulo,Brazil.TheorangesforMinuteMaidOriginalaregrownprimarilyinFloridaandCostaRica.Theprocessingoforangesintojuiceorconcentrateoccursintheregionswheretheorangesaregrown.Thepercentoforangessourcedfromeachregionvariesbyyear,anddifferentsourcingscenarioswereevaluatedtoreflectthisvariability.BothproductsarepackagedintheU.S.atmultiplelocations.Datawerenotavailableforwateruseassociatedwithmanufacturingofthepackagingmaterialsinthesupplychain,soonlyoperationalwaterusewasaccountedforinthepackagingplants.Admittedly,thesemissingdatamayormaynotmateriallyimpactthecasestudyortherelatedconclusions,sofuturefollow-uptoincludeandreflectsuchdataiswarranted.
Water Footprint AccountingWaterfootprintswerecalculatedaccordingtotheaccountingmethodoutlinedintheWater Footprint Manualandbasedonavailableinformation.PublicdatawereusedforBrazilandtofillotherdatagapswheresupplierdatawerenotavailable.
Thewaterfootprintassociatedwithorangegrowingmakesupapproximately99%ofthetotalwaterfootprintforbothproducts,andtheremainderisassociatedwithprocessingandpackaging.Thegreen,blueandgreywatercomponentsforeachproductareshowninFigure 10.
Indirect Water Use in the
Supply ChainDirect Operational
Water Use Water Footprint
Packaging Plant
Ingredients
Packaging
Container (PET bottle or fiber-
based board gable top carton),
closure, label, packaging
materials to ship products
Oranges and processing
of frozen concentrated and not-from-
concentrate juice
Cleaning, Blending, Filling
Figure 9. Indirect and Direct Water Footprint Components
21
MostoftheorangesaresourcedfromFlorida,sotherelativeproportionsofgreen,blueandgreywaterfootprintsforeachproductshowninFigure10aresimilar.Thewaterfootprintoforangesvariesacrossgrowingregions,asshowninFigure 11.Basedonthisanalysis,thetotalwaterfootprintappearstobelargestinBrazil.However,consideringonlythetotalwaterfootprintcanbemisleading.Theresultsshowthatintermsofconsumptivewateruse(greenplusbluewater),Floridahasthelargestwaterfootprint.Mostimportantly,FloridahasasignificantlylargerbluewaterfootprintthanBrazilandCostaRica.ThisisbecausethecalculatedcropwaterrequirementsaresubstantiallygreaterforFloridacomparedtoCostaRicaandBrazil.ThesedifferencesreflectthehigherevapotranspirationratesinFloridaandexplainwhyirrigationisanecessityinmostFloridagroves.
Asecondandimportantreasonforthedifferencesinconsumptivewaterfootprintrelatestothevarianceincropyieldsbetweengrowingregions.AveragecropyieldsforFloridaare18%greaterthanCostaRicaand86%greaterthancropyieldsinBrazil.Therecanbemanyreasonsfortheseloweryields,includingdisease,lackofirrigationand/orfertilization,soilconditions,speciesoforangesandlengthofthegrowingseason.Cropyieldswereidentifiedasanareaofuncertaintyintheanalysis,andtheseresultsillustratewhyaccuratecropyieldinformationiscriticaltocalculatingwaterfootprints.
Grey | 16%
Blue | 24%
Green | 60%Grey | 18%
Blue | 20%
Green | 62%
Simply OrangeFlorida
Simply OrangeFlorida and Brazil
Minute Maid OriginalFlorida and Costa Rica
Grey | 16%
Blue | 22%
Green | 62%
(100 Liters)
(386 Liters)
(154 Liters)
(117 Liters)
(407 Liters)
(127 Liters)
(84 Liters)
(319 Liters)
(115 Liters)
Figure 10. Water Footprint for a Liter of Orange Juice Product
Cub
ic M
eter
s P
er T
on
5 00
450
400
350
300
250
200
150
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= Grey Water = Blue Water = Green Water
Florida Brazil Costa Rica
Figure 11. Water Footprints for the Three Growing Regions
22
Thegreywaterfootprintforgrowingorangesrelatestofertilizerapplicationandassociatedexcessnutrientsreachingsurfacewaterorgroundwatersupplies.Nitrogenwasconsideredthemostcriticalpollutant.PollutantloadinformationwasavailableforFloridaorangegroves,andsimilarratesoffertilizerapplicationwereassumedforBrazilandCostaRicainordertoestimatethegreywaterfootprintforallregions.Intheabsenceofsite-specificinformationforleachingratesandpollutantloadsinrunoff,a10%leachingratewasassumedforalllocations,asrecommendedintheWater Footprint Manual.Themagnitudeofthegreywaterfootprintisstronglyinfluencedbythecropyieldsthatwereassumedfortheanalysis.ThelargergreywaterfootprintshownforBrazilisadirectfunctionoftheloweryieldsusedforBrazil,comparedtoyieldsusedforFloridaandCostaRica.
Impacts AssessmentThiswaterfootprintpilotdifferedfromtheothertwostudiesinthattheCompany’sorangejuiceproductshavelargeandcomplexsupplychains.Theorangegrovesandprocessingplantsarespreadacrossvastareasinnumerouswatershedsofthreecountries.Forthisreason,therewasaneedforascreeningtooltohelpfocustheimpactsassessmentonprioritywatersheds,andtheutilityofwaterstressindicesforthispurposewasexploredaspartofthestudy.
Avarietyofwaterstressindiceshavebeenusedtoreflectthescarcityofwaterinaregion,basedonvariousmetricsthatcanbecalculatedindifferentways.Theycanbeusedasindicatorsoflocationswhereacloserlookmaybewarranted.Theindicesarebasedonfactorssuchaspopulationandtotalrunoff,volumeofwaterwithdrawals,andvariationinprecipitation.
Waterstressindiceswerecalculatedforthethreecitrusgrowingregions,becauseitwasdeterminedduringtheaccountingphasethatthelargestwaterfootprintisassociatedwiththeorangegroves.TheresultssuggestedthatthegreenandbluewaterfootprintimpactsarepotentiallymostsignificantforgrowingorangesinFlorida.However,theseindicesareonlyindicativeofpotentialimpacts.Amoredetailedanalysisrevealedthat,ingeneral,wateruseassociatedwithcitrusgrowinginFloridaismanagedthroughtheWaterManagementDistricts’strongenvironmentalflowandwaterqualityprotectionprograms,andthereislittleevidenceofsignificanthydrologicimpactfromcitrusgrowinginFlorida.Thewaterstressindicesthatwereevaluateddonotrecognizethesewaterresourcemanagementmeasures,whicharedesignedtoprotectwaterquantityandwaterquality.However,waterstress,climatefactorsanddevelopmentpressuresareanongoingconcerninFlorida.Policyandregulatoryengagementwillbeimportanttoensurethesustainabilityofthewaterresource.
23
Uncertainty AssessmentConductingwaterfootprintassessmentsforproductswithcomplexsupplychainsrequiressignificantdata.Inordertofocuseffortsonthekeydatarequirements,anuncertaintyassessmentwasconductedtohighlightthosefactorsthathavethegreatestinfluenceonthewaterfootprint.Bycalculatingwaterfootprintsoverarangeofreasonablevariabilityforselectedinputparameters,theuncertaintyininputparametersthatmattermosttothecalculationresultscanbeidentified.Theuncertaintyassessmentcanhelpinunderstandingwhatthenumbersmeanandhowrobusttheyare,focusingfuturedatacollectionandmanagementeffortsonthosefactorsthathavethegreatestinfluenceonthewaterfootprints.
Twoinputparameterswereidentifiedthatsignificantlyaffecttheoverallmagnitudeofthewaterfootprintsoforangejuice,bothrelatedtothesourcecrops:cropyieldsandparametersforgreywaterassociatedwithgrowingtheoranges.
What was learned from the orange juice water footprint study?
• Approximately 99% of the total water footprint for both orange juice products is associated with orange growing.TheCoca-Colasystem’spackagingoperationscontributeinsignificantly(<1%)totheoverallwaterfootprint.Thepackagingplantsthatwerepartofthispilotstudyhaveadoptedsignificantwaterefficiencymeasures,andallprocesswaterisreturnedtotheenvironmentatalevelthatsupportsaquaticlife.
• Florida orange trees require approximately 70% more water than trees grown in Costa Rica and twice as much water as trees grown in Brazil.Floridaissunnierandwindierandhashigherevapotranspirationrates.Floridaalsohaslessrainfallandasignificantlylargerbluewaterfootprint(associatedwithirrigation)thanBrazilandCostaRica.
• The calculations are highly sensitive to crop yields.EstimatedyieldsforFloridaare18%greaterthanCostaRicaand86%greaterthanBrazil.Thedifferencesinthewaterfootprintbetweenregionsreflectthesedifferencesinyields.
• Uncertainty in the grey water calculation is large.Thiscomponentisthefocusofongoingdebate,andtheresultsmaychangeasthemethodologymatures.
• A full understanding of impacts requires an assessment of cumulative impacts on shared resources.Waterstressindicescanhelpfocusstudyonareaswithpotentialimpacts,butmoredetailedassessmentisrequiredtofullyunderstandwhetherthewateruseiscontributingtocumulativeimpactsinawatershed.
What are the implications for the Coca-Cola system?
• The study highlights potential opportunities for improvement related to orange growing.Thesensitivityofthewaterfootprintcalculationtocropyieldssuggeststheneedforgreaterunderstandingofthefactorsimpactingyieldsacrossgrowingregionsinordertotakeadvantageofopportunitiesforimprovement.
• Despite tight management and controls, the greatest water-related risks may be associated with oranges sourced from Florida.WhileimpactsarenotreadilyapparentinFlorida,factorsincludingwaterstress,competingandincreasingpressuresforwaterresources,andclimatechangemayaffectsupply.Engagementwithotherstakeholderstohelpensurethatthesharedwaterresourceismanagedsustainablywillcontinuetobeimportant.
—AmericanIndianProverb
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Thethreepilotstudiesdescribedintheprevioussectionprovideinsightintoseveralimportanttopicsrelatedtowaterfootprinting.Theprimarylessonslearnedandobservationsarediscussedbelow,organizedaccordingtothefourphasesofawaterfootprintassessment.
3.1 SETTING GOALS AND SCOPEWaterfootprintstudiescanbetimeconsumingandresourceintensive,andbeforeembarkingonastudy,itisimportanttobeclearaboutthegoalsofthestudy.TheCompanyinvestedinwaterfootprintpilotstudiesformultiplereasons.Broadlyspeaking,theCompanywasinterestedingainingabetterunderstandingofthemethodologyandhowitmightsupportitsaimtoestablishatrulywater-sustainablebusinessonaglobalscale.TogetherwithTheNatureConservancy,therewasinterestinexploringtheutilityandpracticalityofthemethodologyforunderstandingwaterusethroughoutthevaluechainandtheimpactsthatusemayhaveonlocalwatersheds.Italsowasanticipatedthattheknowledgegainedthroughwaterfootprintpilotsmightidentifylocationswhereresponseeffortsshouldbedirectedatmoresustainableagriculturalpractices.Thepotentialvalueofwaterfootprintingasanexternalcommunicationtoolwasalsoofinterest.Finally,TheNatureConservancyandtheCompanyhopethattheoutcomesofthepilotstudieswillcontributetogreaterunderstandingofthewaterfootprintassessmentmethodology.
Twoperspectivesrelatedtothesegoalsweregainedthroughthepilotstudies,asdiscussedinthefollowingsections:
• Waterfootprintassessmentscanimproveinternalunderstandingofwateruse.
• Externalengagementandcommunicationsaboutwaterusecanbeinformedbywaterfootprintanalysis.
Water footprint assessments can improve internal understanding of water use.
Theknowledgegainedthroughthethreepilotstudiesprovidesvaluableinsightintothelargestcomponentsofwaterconsumptionintheproductionoftheproductsselectedforstudy.Theassessmentresultsdemonstratethatfocusingonoperationalwateruseisimportant,butitprovidesanincompletepictureofaproduct’sfullwateruseandimpact.Itisimportanttoaddressfreshwaterusethroughoutthesupplychain.
Waterfootprintaccountingcanprovideusefulknowledgeandinsightsaboutwateruseandthegreen,blueandgreycomponents.Theresultscanalsobeusedtohelpdirectacompany’seffortstoencourageimprovedwaterstewardshipinthesupplychain.Forexample,thesugarbeetpilotstudyindicatedthatsomesugarprocessingplantshavelargegreywaterfootprintsduetolowlevelsoftreatment,highlightingapotentialareaforfutureengagementwithsuppliers.Theassessmentalsocanhelpidentifytheneedformoresustainableagriculturalpracticesrelatedtowaterusebyprovidinginformationonwherethemostwaterisusedandwheretheremaybethegreatestpotentialforadverseimpactsonwaterresources.
Waterfootprintingisahelpfultooltobegintoidentifypotentialwater-relatedissuesandrisks.Toreallygainanunderstandingofwhetherwateruseishavinganimpact,thevolumeofwaterconsumptionmustbeplacedinthecontextofthelocalwatershed,andthecumulativeeffectofallusesofthesharedwaterresourceneedstobeconsidered.Thestateofthescienceatthepresenttimeisstillinsufficienttoaddressthefullarrayofwater-relatedimpacts,butthewaterfootprintmethodologyisexpandingtoincludeamorerobustimpactsassessment.
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TheCompanyreliesonitsriskassessmentprogramtounderstandandmanagewater-relatedissuesandrisksforitsdirectoperations.TheriskassessmentprogramhasbeeninstrumentalinshapingtheCompany’swaterstewardshipframework,whichincludesrequirementsforthedevelopmentofSourceVulnerabilityAssessmentsandSourceWaterProtectionPlansforallbottlingfacilities.
External engagement and communications about water use can be informed by water footprint analysis.
Discussionsaroundwaterareevolvingrapidlyacrossmanyaudiences,includingpolicymakers,corporateinvestorsandshareholders,NGOs,communitiesandothers.Waterisacomplexresourcetounderstandandmanage,andwaterimpactsdifferfundamentallyfromcarbonemissions,wherelocalreleasescanhaveglobalimpacts.Whentalkingaboutawaterfootprint,itisimportanttorecognizethattherearevariedapplicationsofitsuseandtobeclearaboutthetypeofwaterfootprintinvolved,aswellastheneedsoftheaudience.
Thevalueofproductwaterfootprintingisitsabilitytoexaminedisaggregatedwaterusebycomponent;thatis,bysupplychainandoperationaluse,andbygreen,blueandgreywater.Itisimportanttokeepthecomponentsofawaterfootprintseparate,sothattheycanbeassessedinthecontextofthelocalwatershedswherethewaterisbeingsourced.Whiletheconceptofwaterfootprintinghassuccessfullyraisedpublicawarenessofthevariousdimensionsofwateruse,consumersandmanyopinionleadersoftenfocusonlyontheaggregatednumbers,withanaturalreactionthattheyneedtobemadesmaller,regardlessofthecontext.However,aproductwaterfootprintnumberbyitselflacksimportantcontext,andthiscansendthewrongmessagethatanywateruseisbad,whichmayleadtoaninappropriateresponsestrategy.Asmallwaterfootprintinadrought-pronewatershedmayhaveasignificantimpact,whilealargewaterfootprintinawater-richregionmayhavelittleornoimpact.
Thereisaperceptionbysomethatwaterfootprintsonproductlabelscanbeusedtohelpconsumersmakeproductchoices.Whilewaterfootprintsareahelpfultoolforcompaniestobegintounderstandtheirwateruse,numericwaterfootprintsonproductlabelsdonotprovidetheinformationthatconsumersneedtomakeinformedchoicesamongproductsandconsumptionpractices.Awaterfootprintlabelwouldprovide“anumber,”butitwouldnotreflectthecomplexitiesbehindit,orconveytheimpactthatthewaterusedtoproducethatproductishavingonthelocalwatershed.
Caremustbetakenwhencomparingwaterfootprintstoensurethattheyreflectthesamescope(operationaland/orsupplychain).Furthermore,whensite-specificdataarelimited,asisoftenthecase,theuseofpublicdatasourceswillleadtothesamewaterfootprintsforsimilarproducts.Asanexample,intheabsenceofsite-specificdata,orangejuiceproducedbytwocompaniesthatsourcefromthesamecountrieswillhavethesamewaterfootprintbecauseoperationalwaterfootprintsaresmall,andanydifferenceswillbeoverwhelmedbythecropwaterfootprint.
ThewatercertificationprogramunderdevelopmentbytheAllianceforWaterStewardship(AWS)24anddiscussedinSection4.2holdspromiseasamoreeffectiveandappropriatecommunicationtool.Thisprogramwillrecognizecompaniescontributingtosustainablewaterpracticesandoperatinginhealthywatersheds.BothTheNatureConservancyandTheCoca-ColaCompanyareparticipatingintheactivitiesoftheAWS.
24www.allianceforwaterstewardship.org
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3.2 WATER FOOTPRINT ACCOUNTINGThecoreofthewaterfootprintassessmentisaccounting.Duringthisphase,thesupplychainismappedout,relevantdataarecollected,andthecolorsofthewaterfootprintarecalculated.Ingeneralandacrossallthreepilotstudies,theaccountingprocessprovidedanincreasedunderstandingofthegreen,blueandgreycomponentsofthewaterfootprint.Theprimarylessonslearnedandobservationsrelatedtotheaccountingphasearediscussedbelow:
• Supplierinformationiscriticaltoconductingawaterfootprintassessment;
• Thewaterfootprintsfortheproductsstudiedcomemainlyfromthefield,notthefactory;
• Thespatialandtemporalresolutionofthebluewaterfootprintiscritical;
• Waterfootprintsarehighlysensitivetojustafewinputparameters;
• Furtherdevelopmentandstandardizationofthemethodologyforcalculatingthegreywaterfootprintisneeded;and
• Theoverheadwaterfootprintwasfoundtobeaninsignificantcomponentoftheproductwaterfootprints.
Supplier information is critical to conducting a water footprint assessment.
Waterfootprintaccountingrequiresasignificantamountofdata.ManyoftheCompany’sproductsareproducedthroughcomplexsupplychainsinvolvingnumerousgrowers,processorsandbottlersspreadacrossmultiplecontinents.Consequently,noonepersonhasaccesstoalloftherequireddata.Itcanbeextremelydifficulttomapthesupplychaintothefieldlevel,duetothefactthatcertainingredientsarepurchasedfromdistributorsorcooperativesthatstockpileproductsfromhundredsoffarms.Furthercomplicationderivesfromthefactthatthelocationsofwateruseorfarmingcanchange,meaningthattheflowofmaterialsisever-changing.Thischallengewasaddressedintheorangejuicewaterfootprintassessmentbyselectingrepresentativefarmsandplantsforanalysis.Whiledataneedswerestillsubstantial,thishelpedfocustheanalysis.
Foragriculturally-derivedproducts,mostofthedatarequiredforanassessmentresideswithsuppliers.Thisinformationmaybeconsideredconfidentialforcompetitivereasonsorbecauseofconcernsaboutcomparisonwithintheirindustry.Forexample,cropyields,whichcanhaveasignificantimpactonthemagnitudeofthewaterfootprint,alsohaveimplicationsforsuppliersalesandpricingstrategies.Specificinformationaboutinternalprocessesatmanufacturingplantsmayalsobeconsideredproprietary.Somesupplierswerewillingtoshareinformationwiththethirdpartythatconductedthewaterfootprintassessmentafteraconfidentialityagreementhadbeensigned.Othersuppliersexpressedmorewillingnesstoworktogetherthroughanindustryassociationtodevelopawaterfootprintforaregion.Ineithercase,gettingtheneededdataistime-consumingandmayincreaseprojectcosts.Thisfactorcanalsolimitthelevelofinformationdetailthatcanbeshared.
Whenitisnotpossibletoacquiresite-specificdata,regionalaveragesfromglobaldatasetsmaybetheonlyavailablesourceofinformation.Forexample,intheabsenceofdataforthecitrus-growingregionofBrazil,datawereobtainedfromreadily-availabledatasets.25,26,27Thisraisesthequestionofwhetherallwaterfootprintswilllookthesameforsimilaragriculturally-derivedproductswhensite-specificdataareunavailableandinputsaredrawnfromthesameglobaldatabases.
25FoodandAgricultureOrganization(FAO).2009.FAOSTATDatabase.FoodandAgricultureOrganization.Rome.http://faostat.fao.org26FAO,2009.CLIMWAT2.0model,Rome.www.fao.org/nr/water/infores_databases_climwat.html27USDA(UnitedStatesDepartmentofAgriculture)ForeignAgriculturalService.2008.GAINReportNo.BR8021.BrazilCitrusAnnual2008.December19,2008.http://www.fas.usda.gov/gainfiles/200812/146306943.pdf
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The water footprints for the products studied come mainly from the field, not the factory.
Theresultsofthethreepilotstudiesrevealthatthegreen,blueandgreywaterfootprintsforCoca-Cola,Europeansugarbeetsandorangejuicecomemainlyfromthefield.Thelargestcontributortothebluewaterfootprintisirrigationwaterusedtogrowthecrops.Thegreywaterfootprintstemsprimarilyfromfertilizerandpesticideuse,withsomegreywaterassociatedwiththemanufacturingofpackagingmaterials.Thisgeneralfinding,withrespecttotheratioofoperationaltosupply-chainwaterfootprintsandtherelativeimportanceofingredients,packagingandoverhead,canlikelybeextendedtoothersimilaragriculturally-derivedproducts.
Theseresultshighlighttheimportanceofincludingthefullsupplychaininawaterfootprintassessment.Foragriculturally-derivedproducts,companieswithacomprehensiveoperationalwaterusemanagementprograminplacemaybeabletofocustheireffortsonencouragingmoresustainablepracticesforkeycropsinthesupplychain.
The spatial and temporal resolution of the blue water footprint is critical.
Toaccuratelyassessthepotentialforimpacts,itisimportanttounderstandhowwaterscarcityinawatershedvariesthroughouttheyearanditsrelationshiptothecropwaterneeds/use.Thebluewaterfootprintiscommonlypresentedasasinglenumberthatcanmaskimportantspatialandtemporalconsiderations.Forinstance,todevelopappropriateresponsestrategies,itwillbenecessarytounderstandwhetherthebluewateriscomingfromandbeingdischargedtoariver,lake,aquiferormultiplesources.Thevariabilityofthebluewaterfootprintisalsoobscuredwhenonlyanannualaveragenumberispresented.Particularlyforagriculturalproductsoringredients,waterusecanvaryconsiderablyoverthecourseofayear,ascanwateravailability.Insum,thevalueofwaterfootprintingforimpactandriskassessmentswillincreasegreatlywhenfootprintcomponentsaredisaggregatedbywatersource.Further,understandingtheseasonalityofwateruseandavailabilityhelpsprovideabasisfordevelopingappropriateresponsestrategies.
Water footprints are highly sensitive to just a few input parameters.
Sensitivityanalyseswereconductedaspartoftwoofthethreepilotstudiestoidentifytheuncertaintyininputparametersthatmattermosttothecalculationresults.Asensitivityanalysisthatcalculateswater
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footprintsoverarangeofreasonablevariabilityforselectinputparameterscanbeusedtofocusfuturedatacollectionand/ormanagementeffortsonthosefactorsthathavethegreatestinfluenceonthewaterfootprints.
Cropyieldwasfoundtobethesinglemostimportantparameteraffectingthewaterfootprintcalculations.Yieldscanvarywidelyfromyeartoyear,asaresultofclimate,disease,speciesoforangesandotherfactorsthatintroduceyear-to-yearvariability.Yieldsalsoareconsideredconfidentialbysuppliers,aspreviouslynoted,andpublicly-availableaveragescanintroducelargeuncertaintyintotheresults.Thesensitivityanalysesalsoindicatedthatchangesininputdataforthegreywaterfootprintcanhaveasignificanteffectonthewaterfootprintresults.Dataonfertilizerapplicationandleachingandrunoffratesforgrowingoperationswerenotgenerallyavailableforthepilotstudies,sosimplifyingassumptionsweremade.Therefore,thegreywatercomponentsrelatedtotherunoffandinfiltrationofpesticidesandfertilizersarehighlyuncertain.Thechoiceofwaterqualitystandardforgreywaterfootprintcalculationsrelatedtooperationscanalsohaveasignificantimpactontheresults,asdemonstratedbythesensitivityanalysisconductedaspartofthesugarbeetstudy.
Further development and standardization of the methodology for calculating the grey water footprint is needed.
AtechnicalworkinggroupoftheWaterFootprintNetworkiscurrentlyfocusingonthistopic,andtheCompanyisactivelyengagedintheprocess.Importantquestionsarebeingexplored,includingtheplaceofthegreywaterfootprintinwaterfootprintaccounting,theselectionofnaturalandmaximumcontaminantconcentrationsforthecalculation,theempiricalformulasusedtodetermineleachingandrunoff,andpollutantimpactsinreceivingwaterbodies.Thefindingsofthistechnicalworkinggroupwillbeaddressedinthe2010revisedversionoftheWater Footprint Manual.
WherescreeningcalculationsusingtheWFNmethodindicatethatthegreywaterfootprintofaproductislargeandmaybehavinganimpact,furtherevaluationusinglocation-specificwaterqualitystudiesanddataisrecommendedtoconfirm(orrefute)thepreliminaryconclusionsandtodevelopabetterunderstandingoflocalizedwaterqualityimpactsandtheeffectivenessofpossiblemanagementpracticesinreducingimpacts.
The overhead water footprint was found to be an insignificant component of the product water footprints.
Overheadinthesupplychainincludeswaterconsumptionassociatedwithconcreteandsteelusedinbuildings,energyproduction,vehicles,officesuppliesandothermaterials.Operationaloverheadincludesdomesticwateruse(e.g.,forcleaning,toilets,kitchenuse,gardens).Overheadwasfoundtobeaverysmallcomponentofthetotalwaterfootprintinthepilotstudieswhereitwasaddressed.Bothsupplychainandoperationaloverheadwerecomputedaspartofthepilotstudyfora0.5literbottleofCoca-Colaandfoundtobeanegligiblecomponentofthetotalwaterfootprint.Forthesugarbeetpilotstudy,thewaterfootprintrelatedtofuelconsumptionforagriculturalmachineryandenergyconsumptioninthefactorieswasincludedintheanalysis,aswellastransportfromthefieldtothesugarfactoriesandfromthesugarfactoriestothebottlingplants.Thesecomponentswerefoundtobenegligiblecomparedtothetotalwaterfootprints.Energyusewasexcludedfromtheorangejuicestudybecausebiofuel,biomasscombustionandhydropowerwerenotidentifiedsourcesofenergyfortherepresentativefacilities.28InformationondomesticwateruseattheFloridaprocessingplantwasavailableandwascalculated,butitwasdeterminedtobeinsignificant.Discussionswithothersinthewaterfootprintcommunitysuggestthatthesefindingsmayapplytoagriculturally-derivedproductsingeneral.
28TherecommendationintheWater Footprint Manualisthatthewaterfootprintofenergyshouldbeaccountedforiftheenergyissourcedfrombiofuelsorfromelectricityfrombiomasscombustionorhydropowerbecausethoseformsofenergyhavearelativelylargewaterfootprintperunitofenergy.
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3.3 WATER FOOTPRINT SUSTAINABILITy ASSESSMENTWaterisafiniteresource,butitisinfinitelyrenewable.Whenproperlymanaged,evenlargevolumesofwaterusecanbesustainableinlocationswheretheresourceissufficienttosupporttheuse.Theimpactsofwateruseneedtobeassessedinthecontextofallwaterusesinthewatershedinordertodefinecumulativeimpacts,sharedrisksandappropriateresponsestrategies.Improvedefficienciesandwastewatertreatmentareimportantwherepossible,butimpactscanalsobeaddressedthroughpolicyandregulatoryengagementtosupportimprovedmanagementofthesharedwaterresource.
Methodsforidentifyingimpactsofwaterfootprintsonwaterresourcesareevolvingandthesubjectofmuchattention.ASustainabilityAssessmentWorkgroupoftheWaterFootprintNetwork(hereafter,WFNworkgroup)iscurrentlyfocusingonthistopic.TheNatureConservancyandTheCoca-ColaCompanyareactiveparticipants,drawingfromconsiderablereal-worldexperienceinwatershedprotectionandrestoration.Twokeyrecommendationsarediscussedbelow:
• Impactsshouldbescreenedatmultiplelevelsofspatialandtemporalresolution.
• Theboundariesofanimpactassessmentneedtobeclearlydefined.
Impacts should be screened at multiple levels of spatial and temporal resolution.
Asdiscussedearlier,aproductwaterfootprintanalysisenablesonetotracewaterthroughoutthesupplychaintothelocalwatershed.However,forproductwaterfootprintswithhighlycomplexsupplychains,itcanbeoverwhelmingtoassesseverysinglewatershed.Therefore,itisnecessarytobeabletoscreenthisinformationtodeterminewhereacompanyshouldfocusitseffortsandfurtherresearch.RecentdiscussionswithintheWFNworkgroupsuggestthatathree-stepprocessforassessingpotentialriskscanhelpmaximizetheefficiencyofscreeningefforts.
Atthecoarsestlevel,aglobalscreeningexercisecanbeconductedusingindicatorsofstressandvulnerabilityattheriverbasinleveltoprioritizeareasfordeeperanalysis.TheWorldBusinessCouncilonSustainableDevelopmenthasdevelopedaGlobal Water Tool29thatisappropriateforsuchhigh-levelglobalscreening.Asthisandsimilarglobaltoolsareimprovedwithfiner-scaleriverbasindelineation,month-by-monthwaterscarcityanalysis,andadditionalindicatorsofwaterstressandsustainability,theywillbecomeever-moreusefulforimpactandriskscreening.TheWater Footprint Assessment Tool,nowunderdevelopmentbytheWaterFootprintNetwork,isexpectedtoprovidesuchenhancedcapabilities.
Thesecondstepshouldbeconductedatthelocalwatershedlevelforwatershedsprioritizedinthefirststep.Inthisstep,threepossibleindicatorsareexamined,dependinguponwhichwatersourcesareinfluencedbythecompany’swaterconsumptionandpollutiondischarge:
• historicalchangesinriverflow;
• changesinlakeoraquiferlevels;and
• violationsofwaterqualitystandards.
TheproposeddesignoftheWater Footprint Assessment Toolwillgreatlyfacilitateassessmentsofthesethreeimpactindicators.
29TheWBCSD’sGlobalWaterToolisavailableat:http://www.wbcsd.org.
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Thosewatershedsthatappeartobeadverselyimpactedbasedontheseindicatorswillrequirefurtheranalysistodetermineappropriateresponsestrategies.Thethirdstepinvolvesasite-specificassessmentofnotonlywaterquantityandqualityimpacts,butalsoecologicalandsocialimpacts.Suchassessmenttypicallyemployscomputerizedhydrologicsimulationmodelsand/ormulti-disciplinaryteamsofexperts(e.g.,eco-hydrology,socialscienceandeconomics).
Thislevelofdetailedassessmentmaybedoneaspartofawaterfootprintassessmentorasaseparateeffort.Asanexample,TheCoca-ColaCompanyhasinitiatedpilotprojectsinpartnershipwithWorldWildlifeFund(WWF)forsustainableagriculturalmanagementpracticesforsugarcane.Improvedpracticesfromthisandotherpilotprojectswillinformthedevelopmentofbettermanagementpractices,helpingtoensureamoresustainablesupplychain.
The boundaries of an impact assessment need to be clearly defined.
Theimpactscreeningprocessdescribedaboveisbasedonthepremisethatwater-relatedimpactsmustbeevaluatedonawatershedbasisforthereasonsdiscussedinSection1.2.Forcoarse-levelimpactscreening,pre-determinedriverbasinboundaries,suchasthoseemployedintheWBCSD Global Water Tool,maysuffice,butaccurateimpactassessmentwillrequiremoredetailedanalysisofthelocalwatershed.
DraftguidancefromtheWFNworkgrouprecommendsthatthelocalwatershedand“areaofinfluence”bedelineatedasdepictedinFigure 12.Thepointatwhichacompanyisextractingwaterordischargingwastewaterdefinesa“pointoforigin”fromwhichacontributingwatershedcanbedelineatedupstreamofthispoint.The“areaofinfluence”depictstheboundarywithinwhichpotentialecologicalandsocialcumulativeimpactsshouldbeassessed.Whilethisexampledepictsawatershed-basedassessment,similarlogiccanbeappliedtowaterextractionsfromanaquiferorlake.
Watershed contributing to company’s water supply
Area of influence extending downstream from point of origin
Location of company’s water extraction or return flow = point of origin for area of influence
Figure 12. Conceptual Diagram of Impact Assessment Boundaries
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3.4 WATER FOOTPRINT RESPONSE FORMULATIONTheresponseformulationphaseaddressesthequestion:What can be done about the impacts caused by a water footprint?Clearly,alllifetakeswater,anditisvitalforcommunities,industry,powergeneration,navigation,recreationandotherpurposes.Whereawaterusehasbeendeterminedtobeunsustainable,theoptionsforaddressingthischallengeinclude:minimizingwaterusethroughimprovedefficiencymeasuresandreuseofprocesswater;treatingprocesswatersothatitcanbereturnedtotheenvironmentsafely;andengagingwithcommunities,governmentsandotherstakeholdersoneffectivemanagementofthelimitedresourcetohelpensureanadequatesupplyofcleanwaterforallusers.
TheCoca-ColaCompany’swaterstewardshipframeworkstartswithensuringthesustainableuseofwaterwithinthewatershedswhereitsplantsarelocated.Specificengagementactionsassociatedwithmanagingabottlingfacility’soperationalwaterfootprintmaybeinsidetheplantorontheplantgrounds,ortheymayaddresscommunityorwatershedissues.Priorityforengagementisgiventobottlingfacilitieslocatedinwater-stressedregionswheresocialandecologicalimpactsmaybeoccurring.TheCoca-Colasystemalsoistakingactiontoensurethesustainabilityofagriculturalpracticesforitskeyingredients.
Twospecificobservationsrelatedtoresponseformulationfromthewaterfootprintpilotsandwaterstewardshipstrategyarediscussedbelow:
• Responseactionsshouldstartwithacompany’sownoperationsandincludecollaborativeeffortstohelpprotectthelocalwatershedswhereitoperates.
• Companiesthatproduceagriculturally-derivedproductsneedtounderstandwateruseinthesupplychainandsupportsustainablepractices.
Response actions should start with a company’s own operations and include collaborative efforts to help protect the local watersheds where it operates.
Avaluablecharacteristicofthewaterfootprintmethodologyisthatitbreaksoutoperationalandsupplychainwateruseandexaminesthethreecolorsofawaterfootprintseparately.Bykeepingthesecomponentsseparateratherthancombiningthemintooneaggregatedwaterfootprintnumber,operationalwateruseandefficiencymeasuresremainvisibleandarenotoverwhelmedbythecropwaterfootprint.Initscommitmenttowaterstewardship,theCoca-Colasystemhasfocusedfirstonitsglobaloperations,meaningnotonlyitsbottlingplantsbutalsothewatershedsandcommunitieswheretheCoca-Colasystemoperates.AllplantsintheCoca-Colasystemarerequiredtodeterminethesourceoftheirwaterandthatofthesurroundingcommunity,assessthevulnerabilitiestothequalityandquantityofthiswater,andworkingwithcivilsocietyandgovernments,developandimplementasourcewaterprotectionplan.
Thefirstandmostimportantactionacompanyshouldtakeistoaddressitsownwateruseinoperationswhereithasdirectinfluence.Waterconsumptioninoperationsshouldbeminimizedandallprocesswatertreatedtowaterqualitystandardsbeforeitisreturnedtotheenvironment.Forindustrieswhereproductiongenerateswastematerial,productiveuseofthewastethroughproductionofbyproductsisanothermeansofreducingtheoperationalwaterfootprint.Asanexample,allpartsofanorangeareusedintheproductionoforangejuiceanditsbyproducts,andthewaterfootprintisallocatedacrossbyproductsaccordingtotheirweightandvalue.
UnderstandinganylocalimpactsoftheCoca-Colasystem’swateruseandensuringsustainablesuppliesofwaterforallstakeholdersisintegraltothiseffort.Theremaybeaneedforwateraccessprojectstohelp
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providecleanandreliablesourcesofdrinkingwaterorrestorationmeasuresthataddresswaterquantityandwaterqualityissuesinawatershed.Thesetypesof“Replenish”activitiesarebeingimplementedaspartoftheCoca-Colasystem’sCommunityWaterPartnership(CWP)30projects.TheConservancyandtheCompanyhaveidentifiedninecategoriesofactionsthatmaybeimplementedaspartofitsCWPprojectsoranywaterstewardshipprogram.Scientificallycrediblemethodsforquantifyingtheeffectsofthesemeasuresonwaterquantity(hydrologicalpathwaysandstorage)andwaterqualityhavebeenidentifiedanddocumented,andthebenefitsgeneratedbytheseactivitieshavebeenquantifiedtoassessprogressinattainingtheCompany’sReplenishtarget.
30TheCoca-ColaCompany.ReplenishReport.January2010.
COCA-COLA SySTEM WATER RESOURCE SUSTAINABILITy
Coca-ColasystembottlingfacilitiesworldwidearerequiredtohaveformalWaterResourceSustainabilityprogramswithSourceWaterProtectionPlansthatareauditedthroughtheglobalgovernanceprogram.
Program Goals • Topromoteandsupportthesustainabilityandsupplyreliabilityofwaterresourcesinthe
watershedsandcommunitieswheretheCoca-Colasystemoperates; • Tounderstandandaddressenvironmental,social,political,regulatoryandeconomicissues
associatedwithsecuringsufficientfreshwatertomeetcurrentandfuturebusinessandlocalcommunityneeds;and
• Tohelpprotectproductqualityandsafety.
Eachfacilityisrequiredtoconductanin-depthSourceWaterVulnerabilityAssessmentanddevelopandimplementaSourceWaterProtectionPlanforthebusinessandlocalcommunitywatersources,ifsuchsourcesaredifferentfromtheplant’ssourceofwater.
Source Water Vulnerability Assessments • Conductarigoroustechnicalassessmentoflocalwaterresourcesustainability,including
detailedwatershedmappingandhydrologic/hydrogeologicmodelingoflocalwatershedandgroundwaterbasin.
• Identifycontributingareas,rechargeareas,protectionzonesandthreatstotheavailabilityandqualityofwaterresources.Thisincludesdevelopmentofwatershed“budgets”tounderstandwatersupplyanddemand,andbasininflowsandoutflows(includinginter-basintransfers).
• Engagewaterresourcemanagementagencies,localcommunitiesandenvironmental organizationstounderstandcommunityneedsandlocalwaterresourcemanagement policiesandregulations. • DeterminethepotentialimpactofCoca-Colasystemfacilitiesontheavailabilityorqualityof
waterforthepeopleinthelocalcommunity.
Source Water Protection Plans • Developandimplementaplantoaddresschallengestolocalwaterresourcesustainability;
includingengagementandcollaborationwithlocalcommunities,stakeholdersandimplementingpartners.
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Companies that produce agriculturally-derived products need to understand water use in the supply chain and support sustainable practices.
ThepilotstudiesconductedbytheCoca-Colasystemandotherstodatehaveindicatedthatthelargestcomponent(approximately80%ormore)ofthewaterfootprintforagriculturally-derivedproductsisassociatedwithgrowingthecrops.Forthisreason,andwhetherornotawaterfootprintassessmentisconducted,itisimportanttoconsiderthesustainabilityofagriculturalinputs.
Appropriateresponsemeasuresinthesupplychainmaybelessclearthanmeasurestoaddresswaterefficienciesandwastewaterinoperationalwateruse.Ifingredientsaresourcedfromawater-stressedregion,acompanyneedstocarefullyexamineitsoptionsandthebusinessimplicationsofvarioussourcingalternatives.Whereacompanycaninfluencesuppliers,importantquestionsincludewhethertosourcefromadifferentregionorinsteadworktoimprovehowthewaterresourceismanaged.Thesechoiceshavesocialandeconomicimplicationsthatareimportanttoconsideralongwithenvironmentalimpacts.
Thegreenwaterfootprintcanbealargecomponentofthetotalwaterfootprint,andtheremaybeopportunitiestoreduceit.31Whilefarmershavenocontroloverthequantityofrainthatfallsontheirland,theefficiencyoftheuseofthatwatermayinsomecasesbeimproved.Forexample,improvedsoilmanagementorbettercovercropsmaydecreaseevaporation.Agriculturalpracticesthatincreasecropyields(forexample,plantingdifferentvarietiesorplantingtreesclosertogether)may,insomecases,decreasethegreenwaterfootprint.Ifproductivity(tonsperacreorperliter)isincreased,therewillbelessofaneedtoproduceelsewhere,therebyreducingthepressureonlandandpotentiallyreducingthebluewaterfootprintforcropproduction.However,therearelimitationstowhatcanbedoneinthisregard.Forexample,productioncontrolsmaynotbedesignedformaximumyields,asisthecaseforsugarbeetsgrowninsomeregionsofEurope.Consumertasteswillconstrainthevarietiesoforangesgrownfororangejuice,andcropdiseasesmaykeepyieldslowerthandesired.
TheCoca-ColaCompanyisfocusingonkeyagriculturalinputsinthesupplychainandtakingaholisticapproach.TheCompany’ssustainableagriculturestrategyextendsbeyondwaterresourcesandaddressesthethreepillarsofsustainability:environmentalimpacts;socialimplications;andeconomicpressures.Thestrategyevaluateskeyagriculturalinputs,withaninitialfocusonsugarcane.Sugarcaneisamongthegroupofcropsnotedforitssubstantialwaterconsumption.TheCompany’sapproachtosustainableagricultureismulti-dimensionalandfoundedonprinciplestoupholdworkplacerights,protecttheenvironment,andhelpbuildsustainablecommunities.Moreinformationontheseactivitiesisprovidedintheboxonthefollowingpage.
31Seeforexample,InternationalWaterManagementInstitute(IWMI).2007.WaterforFood;WaterforLife.AComprehensiveAssessmentofWaterManagementinAgriculture.DavidMolden,editor.
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THE COCA-COLA COMPANy’S FRAMEWORK FOR SUSTAINABLE AGRICULTURAL INGREDIENTS
TheCompany’ssustainableagriculturestrategyfocusesonagriculturalcommoditieswithintheCompany’ssupplychain.TheCompany’ssustainableagricultureframeworkseeksto:
• MITIGATE RISKSbyworkingwithpartnersandsupplierstoaddressenvironmentalandsocialchallengestoingredientavailability,qualityandsafety;
• MEET CUSTOMER AND CONSUMER DEMANDSforlifestylesofhealthand sustainability;and
• MANAGE COSTS AND REALIzE NEW OPPORTUNITIESbyleveragingrelationshipswithsuppliersandcommunities.
Thestrategyisbuiltonthreeelements:
• PARTNER ENGAGEMENT:IdentifykeypartnersandamplifyresourcesinordertoidentifyrisksandopportunitieswithintheCompany’ssupplychain.
• FOSTER INNOVATION: Initiatepilotprojectsinkeymarketstoaddresspresentandfuturechallengesandcreateopportunities.
• SUPPLy CHAIN SUSTAINABILITy VALIDATION:Engageinvalidationmechanisms,includingcertificationinsomecases,toverifyandvalidateapplicablecriteria,gaincredibilityandmeetcustomerrequirements.
TheCompany’sglobalpartnershipwithWorldWildlifeFund(WWF)isacriticalpartofitssustainableagriculturestrategy.Thepartnershipteamisfocusedonconservingfreshwaterandfosteringbetterperformancefortargetedagriculturally-derivedingredientswithinthesupplychain,withaninitialfocusonsugarcane,orangesandcorn.
Currently,thereareanumberofsugarcanepilotprojectsunderwayinAustralia,Belize,Brazil,ElSalvador,Guatemala,HondurasandSouthAfrica.Asanexample,theGreatBarrierReef(GBR)SustainableFreshwaterRevitalizationProject(ProjectCatalyst)isafive-yearinitiativedirectedatinnovativepracticestosustainablyimprovethequalityandquantityoffreshwateracrosstheMackay/Whitsundaycatchments,whichflowdirectlyintotheGreatBarrierReef.Todate,19canegrowershaveadoptedimprovedsoil,nutrient,pesticide,irrigationandstormwatermanagementon4,800hectaresofcaneproduction.Morethan24,000MLofrunoffanddrainagewaterhasimprovedwaterqualityduetotheseimprovedpractices.
ThepartnershipteamisworkingwiththeBetterSugarcaneInitiative(BSI)toimprovetheglobalperformanceofthesugarcaneindustry.BSIisacollaborationofsugarretailers,investors,traders,producersandNGOscommittedtoreducingthesocialandenvironmentalimpactofsugarcaneproduction,whileenhancingtheeconomicstatusoffarmers.Theinitiativeworkstoestablishstandards,evaluatesuppliersandsetmeasurablegoalswithagriculturepartnerstoreduceimpactstoacceptablelevels.
—JohnF.Kennedy
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Thewaterfootprintpilotstudiesprovideimportantinsightsintowaterusethroughoutthesupplychainandhighlightthatwateruseassociatedwithagriculturalingredientsisthelargestcomponentoftheproductwaterfootprintsassessedinthisreport.Intheyearsahead,TheNatureConservancyandTheCoca-ColaCompanywillcontinuetoworktogethertowardanimprovedunderstandingofwater-relatedimpactsinlocalwatersheds,appropriateresponseactionstoaddressadverseimpacts,andthemethodsforquantifyingReplenishbenefits.
TheCoca-ColaCompanyandTheNatureConservancyalsowillcontinuetoengagewiththeWaterFootprintNetworkandcontributetotheadvancementofthescienceofwaterfootprintinganditspracticalapplicationforbusinesses.Eachorganizationalsowillsupportseparateinitiatives,asdescribedinthefollowingsections.
4.1 THE COCA-COLA COMPANy’S WATER STEWARDSHIP AND SUSTAINABLE AGRICULTURE STRATEGyTheCompanywillcontinuetoactivelyworktowarditsaimtoestablishawater-sustainablebusinessonaglobalscale.TheCompany’swaterstewardshipstrategywillremainfocusedfirstonminimizingitsoperationalwaterfootprintbymeetingorexceedingitswaterefficiencyandwastewatertreatmenttargets.SourceVulnerabilityAssessmentsandSourceWaterProtectionPlansarebeingdevelopedforeachplanttoidentifyandaddresslocalwaterresourceissuesandrisks.
TheCompanywillcontinuetoinvestinandquantifythebenefitsoflocallyrelevantReplenishprojectsthataredirectedatrestoringandsustainingadequatewatersuppliesforthefullrangeofbeneficialuses.ThisquantificationworkiscontributingtotheWaterFootprintNetwork’songoingdevelopmentofmethodologiesrelatedtosustainabilityassessmentandformulationofresponsestrategies.
TheCompany’sresponsetosupplychainwaterfootprintassessmentswillfocusonkeyagriculturalingredientsasanintegralpartofitssustainableagricultureprogram.Therearesignificantopportunitieswithintheglobalsupplychaintodevelopandencouragemoresustainablepracticestobenefitsuppliers,customers,consumersandlocalwatersheds.Thecurrentareasoffocusincludesugarcane,orangesandcorn.Coca-ColaEuropewillcompleteitsstudyofsweetenerssuppliedtoitsEuropeanbottlingplantsoverthenextsixmonths.
4.2 THE NATURE CONSERVANCy’S WATER STEWARDSHIP PROGRAMTheNatureConservancyisfocusingonthreestrategiesdesignedtodriveadoptionofsustainablewaterpracticesbycorporations.
First,theConservancywillcontinuetoworkwiththeWaterFootprintNetworkandotherpartnerstofurtherdevelopassessmentmethodologiesandtoolstosupportwaterfootprintassessmentsandguidecompaniestowardappropriateandeffectiveriskmanagementandwatershedrestorationactivities.
Second,theConservancywillcontinuetoworkwithindividualcorporationsandpublicandprivatewaterutilitiestoapplynewapproachesandtoolsinthewatershedsinwhichtheyoperateorfromwhichtheysourcetheirsupplychainingredients.Thiswatershed-basedworkenablestheConservancytorigorouslytesttheefficacyandpracticalityofvarioussustainabilityapproachesandbestpracticesforimprovingwaterflows,waterquality,andecologicalandsocialwell-being.Disseminatinglessonslearnedwillbekeyinmotivatingothercompaniestoapplythemostpromisingapproaches.
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Third,thelessonslearnedfromtheConservancy’son-the-ground,watershed-basedworkwillfeeddirectlyintodiscussionsaboutsustainabilitystandardsandcertificationbeingfacilitatedbytheAllianceforWaterStewardship(AWS).ThemissionoftheAWSistopromoteresponsibleuseoffreshwaterthatissociallyandeconomicallybeneficial,aswellasenvironmentallysustainable.TheAWS,workingwithstakeholdersfromaroundtheworld,isprovidingaplatformforthedevelopmentofaglobalwaterstewardshipprogram.Attheheartofthisworkisthedevelopmentofstandardsandacertificationprogram.TheAWSintendstocreateaprogramthatrecognizesandrewardswaterusersandmanagerswhotakemajorstepstominimizetheimpactsoftheirwateruseandmanagement.TheConservancy,afoundingpartneroftheAWS,believesthatawell-designedcertificationprogramwillmotivatecompaniesandutilitiesaroundtheworldtoimplementsustainablewaterpractices,therebybringingtremendousbenefittoecologicalhealthandsocialwell-being.
What is the Alliance for Water Stewardship?The Alliance aims to establish a global water stewardship program that will recognizeand reward responsible water managers and users by creating opportunities for enhancedcommunitystandingandcompetitiveadvantage.
Over the next few years, the Alliance will work with water authorities, companies, localcommunities and environmentalists to establish a voluntary certification program for watermanagersandusersbasedonthefollowing:
• Internationalstandardsdevelopedthroughanequitable,transparent, science-based,multi-stakeholderprocess.
• Verificationtodeterminewhetherthesestandardshavebeenmet.
• Aglobalbrandthatallowsmanagers,usersandorganizationsto demonstratetheircompliancewithorsupportforwaterstewardship.
• Trainingandeducationtopromoteachievementofwaterstewardship.
Moreinformationcanbefoundat:www.allianceforwaterstewardship.org
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