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Climate Change: Mitigation and AdaptationThe Coca-Cola Companys ApproachJoe Rozza, P.E., BCEEGlobal Water Resource Sustainability ManagerThe Coca-Cola CompanyEnvironment & Water ResourcesAtlanta, Georgia 30301, USA+01 404 676 4764jrozza@na.ko.com

1Water is the single largest (and most irreplaceable) component of our Supply Chain. It is also a shared resource under growing stress around the world.

We can have all the crowns and caps and concentrate in the world, but without water we and our bottlers have no business.

Demographic trends, economic growth and climate change will stress water resources significantly to 2020 and beyond.

Understanding and managing this vital resource is critical to the sustainable growth of our business.

As Muhtar has stated in the 2020 Vision work, we need to prepare today for tomorrow. And on no issue is this more relevant than water.

The Coca-Cola Company by The Numbers2

22020: Water Megatrends and EffectsEFFECTS2/3 of world population in severe water stress1/3 of world land area in severe water stressSignificant water quality degradationPrecipitation patterns change: more droughts and floodsSignificant increase in competition for freshwaterMore aggressive allocation , increased prices, conflict potentialTwo billion more urban residents by 2030Variable adaptation by public sectorWater infrastructure needs require $1 trillion+ between now and 2025

334A Global Water Scarcity Crisis

Water Availability(m3/capita/year)ExtremeScarcityScarcityStressAdequateSurplusAbundant

4Mitigation & Adaptation: The Coca-Cola Company

MitigationAdaptationUnderstandFootprintUnderstandRisk ExposureSet GoalsManageMetricsDevelopStrategiesMitigation: Climate Protect/Energy ManagementMitigation: Sustainable PackagingAdaptation: Global Water Stewardship5

Agricultural Inputs Not Yet IncludedWhat is Our Carbon Footprint?6Head start on measuring emissions system wide

Work to be doneD

Carbon Footprint Analysis7Climate Protection & Energy Management GoalsGrow the business, not the carbon system-wide AND achieve a 5 percent reduction in developed (Annex I) countriesTake action to improve energy efficiency and reduce emission of greenhouse gases in cold drink equipment with focus on conversion to HFC-free insulation materials and refrigerant, plus improving energy efficiency

MANUFACTURINGREFRIGERATION EQUIPMENTClimate Protection and Energy Management

Grow the business, not the carbon in our manufacturing operations. Improve the energy efficiency and reduce emission of GHGs in cold drink equipment. PackagingGoalsClimate Benefits through Reduce, Recover and Reuse

8ManufacturingSince 2002, our energy use efficiency has improved by 16 percent

Investing in lighting, compressed air, process cooling, process heating, HVAC and more to eliminate energy waste and cut CO2 emissions

We will hold our 2015 emissions at our below the emissions we had in 2004 (4.7 million metric tons) despite projected business growth

Refrigeration Equipment:Coolers and vending machines make up the largest component of our Systems emissions

We have completed the transition to HFC-free insulation for new purchases of refrigeration equipment This new insulation generates 2/3 fewer direct greenhouse gas emissions as compared with traditional equipment

We have made significant research and development investments to identify a cost-effective alternative to HFC refrigerant Carbon dioxide technology generates1/3 fewer direct greenhouse gas emissions from refrigerants

We have developed an energy management system that delivers energy savings of up to 35 percent

Combined, these technologies will reduce direct and indirect carbon emissions by over 3 tons over the lifetime of each typical machine.

Energy Management in ManufacturingSignificant Productivity Benefits

20%10 %Compressed AirEnergy BreakoutLighting5%20%Process Cooling20%Process Heating10 %15 %ProductionMiscellaneousHVAC25-50%20-30%20-30%10-20%10-20%5-10%5-10%SavingsPotentialOverall Savings20%20% Energy Use Ratio Improvementand a 22% reduction in CO2 emissionswhile providing a 17+% IRR.9System has improved the energy efficiency of our manufacturing operations by 16 percent since 2002

Our Sustainable Packaging GoalsTCCC strives to use the least amount of raw materials and energy required to meet customer and consumer packaging needs.TCCC is committed to closing the loop on our packaging by advancing cost-effective ways to return recycled materials to the production process for reuse.TCCC helps to increase the recovery of used packaging materials around the world by supporting our own collection operations, national recovery organizations and strategic recovery partners.REDUCE REUSERECOVERSustainable Packaging

We envision a world in which our packaging is no longer seen as waste, but as a valuable resource for future use. One of the ways we are taking action to realize this vision is our goal to recover or reuse 100 percent of the equivalent bottles and cans we place in market. 10Risk Management and Water Resource Sustainability1111GIS/Spatial Analysis: Using Technology to Understand Risk Exposure12

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Risk Visualization Tools

13Global Water Stewardship Strategic Framework Enabling Vision 202014EnableActGlobal LeadersSustainable Water Use

We took this risk data and built a framework of action

Beginning within our operations to increase efficiency and meet wastewater standards

Looking beyond the 4 walls of our plants to understand the watershed issues which impact us

And looking at the communities that share this vital resource with us

And lastly to build on our commitment by lending our voice to the growing public awareness and debate. 14Performance TargetsOur water conservation goal is to return to communities and nature an amount of water equivalent to what we use in all of our beverages and their production.

15We also then shaped goals to dive improved performance.

The overarching water goal, announced in June 2007, is to give back to nature and communities as much water as we use.An ethic of sustainability underpins that global commitment : that the more we use, the more we will give back.

There are three Rs that build out that commitment:

Reduce: to become 20% more efficient in water use by 2012 and we are on track on that

Recycle: to have 100% of our facilities meet wastewater treatment standards by the end of 2010 and we are on track on that

Replenish: to give back what we use as product water through our support for watershed replenishment, rainwater harvesting, reforestation, drip irrigation and community access programs and projects.

The next slide explains that in more detail.15

Replenish: Communities and WatershedsWe are engaged in 250 community water projects in 70 countries to protect and preserve water resources and help enable greater access to water and sanitation. Our partners include USAID, UN-HABITAT, CARE, UNDP, TNC, WWF, local governments and implementing NGOs.Replenish is the manifestation of our community and watershed partnership work, with the aim to offset the water we use in finished productsLocally relevant projects that support communities and nature, from source water protection implementation to rainwater harvesting projects

16The commitment is to give back what we use in two ways:

By fully treating all the process water so it can be returned to nature or waterways safely

And by offsetting the resulting balance of water we use in finished products. This can be achieved in a number of ways rainwater harvesting, reforestation, drip irrigation, etc.

We are working with respected partners to establish an accepted methodology for water footprint offset -- including World Business Council for Sustainable Development, WWF, Nestle, University of Twente in The Netherlands and others.

We should have an Key draft methodology this year, and we are continuing to work across the System to document what we are doing and to measure impact. We have not set a timeframe for achieving this goal yet.

Our leadership on this has opened the way for others to follow including PepsiCo and Cadbury Schweppes16

Thank You17