Innovative financial mechanisms and water related collective action for watershed conservation: The role of the private sector

April 13, 2015

• Greg Koch, Senior Director, Global Water Stewardship • gkoch@coca-cola.com• @gregjkoch1

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Water is Biggest Part of Our Supply Chain, Under Growing Stress, and Vital to Our Business Model

Physical availability and sustainability -- surface and especially groundwater

Infrastructure – nonexistent, crumbling, financing

Pricing -- too cheap, too expensive

Changing climate – droughts, floods

Competing use and increased demand -- more people and increased GDP

Policy – nonexistent, conflicting, Nexus challenges

Water Risks in Manufacturing Locations

Water Risks in Agricultural Supply Chain

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Global Risk Assessment

© Copyright 2010 The Coca-Cola Company. Confidential

Global Water Stewardship Strategic Framework

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Partners and Progress

Reduce – Efficiency and Reuse• Met our 2012 water efficiency goal of a 20% improvement, versus

2004

• On track to meet a further 25% improvement by 2020, versus 2010

Recycle – Wastewater Treatment and Stormwater

Management• US$1 billion+ invested

• Full treatment onsite and reuse on- and off-site for productive

purposes

Replenish – To Communities and Nature• We are replenishing 68% of production volume towards 100% by

2020, 509 hundred projects in over 100 countries

• Watershed protection, WaSH, reforestation, agri water efficiency,

aquifer recharge, leak management, policy, PES/water funds

Risk Management• Plant-level and community source vulnerability assessments and

source protection plans

• Drives collective action at the local level

Including:

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Project Financing

Direct, business planning• In-plant water efficiency and reuse

• Stormwater management and wastewater treatment

• Source water protection

• Agriculture supply chain sustainability

Foundation• Support for WaSH, water for productive use, and conservation

• More easily allows for multi-year projects

• Facilitates co-funding by private foundations and donors

Leverage• Can be a part of direct or foundation projects

• Amplifies resources and beneficial impact

• Donor community (e.g., USAID, UNDP)

• Governments and peer industry

• Example for RAIN: $30MM leveraged $45MM

Policy• Investments in advocacy and multi-lateral engagement

• Beneficial impacts of policy reform

Water Funds

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Water Funds

Water Funds are financial and governance mechanisms that enable long term,

efficient, and sustained watershed restoration and conservation

Replenish Coalition: Balance of Consumptive Water Use

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Bottling Plant

Reduce Water Use Ratio

[Improve 25% by 2020]

ReplenishProduct Volume =

136 Billion liters[Balance 100% by 2020]

RecycleWastewater Treatment

Volume = 177 Billion liters

[100% Compliance]

Total WaterTotal:

313 Billion Liters

Replenish Project Selection & Implementation

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Identify Water Risks Identify Ecosystem Issues

Relate to Water Issues

Collect Data

Identify Locally Relevant Activities

Seek Funding & Implementing Partners

Implement Project Quantify Benefits

1. Agricultural land practice changes

2. Storm water management

3. Land use alterations

4. Hydraulic/hydrologic water body alterations

5. Recaptured leakage from water systems

6. Wastewater treatment

7. Biologic management

8. Water reuse

9. Rainwater harvesting and aquifer recharge

10. Safe water and sanitation access for communities

Potential Replenish Activities

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Water Quantity Impact

Water Quality Impact

Water Quality Benefits

Water Quantity Benefits