Water Stewardship at Coca-Cola Jon Radtke Water Resource Sustainability Manager Coca-Cola North America

And yet we’re truly a local business Coca-Cola: A Global Business with a Local Reach 200+ 300 400 1,000 1,600,000,000 Countries we operate in Franchise bottling partners Number of brands, worldwide Manufacturing plants Servings per day

Classified - Internal use TCCC Global Water Stress: 2008 Update Today Our Water Stewardship journey began by understanding the water risks to our business. This map highlights water withdrawals as a % of renewable supply. Note the yellow, orange or red areas are medium-high stress to extremely high stress. Our plants are plotted on the map. They say a picture is worth a 1000 words. The results are sobering. 45% of our volume is produced in extremely high water stress locations. This compares to 29% of volume in 2005. Certainly this helps to highlight the issue, but it is only part of the story. As our understanding and recognition of the global water challenges increased, we began to assess the risks to our business. For the first time, our understanding of the risks we face extended beyond our operations, to include the watersheds and communities where we operate. Our 4-part Water Stewardship Framework took shape – 1. building on what we can control – plant performance; 2. stepping outside the four walls of the plant to help protect the shared watersheds where we operate; 3. in partnership with others - helping to enable access to clean water in underserved communities and 4. using our voice, as a global leader, to raise awareness about this critical issue. Production Volume Classified - Internal use

Water Stress: North America Operations

Drought Analysis (1 Year-through late 2009): CCNA

Rate of Change from Climate, Population Growth and Development

Business Case Water is: The main ingredient in all of our beverages Essential to our manufacturing processes A life-sustaining resource for the communities and ecosystems that make our business possible A key component of many of our ingredients, including sugar “Water is not just important to our businesses. It is critical to the communities we serve. We cannot have a sustainable business unless the communities we serve are sustainable themselves.” E. Neville Isdell Key water messages: For TCCC, access to clean, fresh water is a first order environmental, humanitarian and business issue. As our business grows, we are committed to do our part to protect the world’s freshwater resources.

Assessment: Global Water Risk Assessment Sample Plant Water Risk Profile

A 10-year Vision for Water Stewardship Best-in-class in water use efficiency & compliance on wastewater management 1. Improve Plant Performance 3. Support Community Initiatives 2. Help Protect Watersheds 4. Make a Global Difference Support the protection of watersheds in water-stressed regions where we operate TNC Help enable equitable access to clean drinking water in underserved communities where we operate Help mobilize the International Community

Our Water Conservation Goal Our 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 REDUCE Water Efficiency Stringent Wastewater Treatment Standards RECYCLE Support Healthy Watersheds and Sustainable Community Water Programs REPLENISH

Watershed Partnerships Can Replenish Water Sources North America system has over 50 active watershed projects Example Flint River Basin partnership with The Nature Conservancy Funded by the TCCC Foundation Variable rate irrigation Reducing farm water use by 17% Project saves hundreds of millions of liters per year Watershed partnerships are another way we can make more water available for us and the communities in which we operate. The NA system has 33 active watershed projects. Here is just one example of a partnership that has produced results. The Flint River Basin partnership has improved the way farmers irrigate their fields, and has saved 10 billion gallons of water since 2003. 11

US Southeast Rivers and Streams Replenish: Conserving Freshwater Resources US Southeast Rivers and Streams Facing highest extinction rates in North America due to degraded water quality from population growth, poorly planned development, agriculture, mining and forestry operations Goal: To harmonize urban growth with the protection of the basin by increasing sustainable water policies and practices The rivers and streams of the Southeastern United States are a globally significant center of freshwater biodiversity. Work focuses on the Tennessee, Cumberland and Mobile River basins, which are among the world’s richest river ecosystems. The partnership goal is to harmonize rapid urban growth with the protection of freshwater ecosystems in the drought-threatened area by increasing the implementation of sustainable water policies and practices. Drought in the area underscored the importance for the partnership of freshwater resources for communities, and led to a focus on stormwater, which can lead to erosion and pick up debris, chemicals and other pollutants, and carry them to rivers and streams. As a result, water quality can be significantly degraded. We have developed a Stormwater Assessment tool that can be used by Coca-Cola bottlers to adopt stormwater management plans for their plants. Additionally, the team has created water conservation initiatives using rain barrels - more than 1,500 rain barrels from Coca-Cola have been distributed in middle Tennessee to capture water run off during rain events. Rain barrels are particularly useful in urban settings affected by drought. The capture of rain water also avoids using municipal water that goes through a treatment process for household use. The success of this program has initiated a national launch to local watershed groups and bottlers.

Assess: Source Vulnerability Assessment Process SVA Process Includes: Hydrology/Hydrogeology Land use Pollution sources Competing users Regional Water Supply Plans Climatic Effects i.e., drought susceptibility Water Rights, Permits and Policies Social/Community Issues Plant Water Resource Management Team Output – Source Protection Plan Agricultural land use represents the most common source of contamination for both groundwater and surface water, with nitrates being the primary contaminant. Most plants utilizing on-site groundwater wells have no data regarding water levels or the long term sustainability of their aquifer(s). Municipalities that rely on surface water supplies (i.e., reservoirs) often have THM and algae issues during summer months. Aging infrastructure (pipes) which needs replacing in the near future. Little or no relationship with their water provider (i.e., municipality, groundwater district, etc.).

Vulnerability Assessment – Land Use Restoration Recreation (hunt clubs) Silviculture Beef Cattle Row and Hay Crops* Dairy Operations* Sand Mining* Rural Residential Subdivisions* Old Phosphate Mining *Activities of high concern.

Ginnie Springshed Model Sustainability Healthy Watersheds

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