The Coca-Cola Company's Observations, Responses and Outlook in a Changing Climate Greg Koch Director, Global Water Stewardship Office of Sustainability, The Coca-Cola Company

2 Classified -- Internal Use Water is Biggest Part of Our Supply Chain and it is Under Growing Stress Physical availability – surface or groundwater – and the sustainability of those sources Infrastructure existence, pressure, service area, metering Pricing – too cheap or too expensive Droughts Competing use and increased demand from more people and increased GDP Climate change Regulatory limits Social acceptance Water Risks in Manufacturing Locations Water Risks in Agricultural Supply Chain

Global Water Stress Classified - Internal use 3

EFFECTS 1.2/3 of world population in severe water stress 2.1/3 of world land area in severe water stress 3.Significant water quality degradation 4.Precipitation patterns change: more droughts and floods 5.Significant increase in competition for freshwater 6.More aggressive allocation, increased prices, conflict potential 7.Two billion more urban residents by Variable adaptation by public sector 9.Water infrastructure needs require $1 trillion+ between now and : Water Megatrends and Effects 4 MEGATRENDS POPULATION GROWTH Expected to increase by billion by 2020 CLIMATE CHANGE 0.8°C temperature increase by 2020 GLOBAL DEVELOPMENT Dramatic increase in number of developed economies

2020 Water Stress: Rate of Change 5

Classified - Internal use

Classifie - Internal Use Only

THIS IS NOT ONLY A DEVELOPING WORLD ISSUE Classified - Internal Use Only LAKE MEAD, NEVADA

Classified - Internal use

Recent Events within the Coca-Cola system Chronic Water Stress Drought Community Connection Local WRM Capacity Water Quality Local WRM Capacity Local Policy Plant Closure Find New Water Source Water Supply Reduction More Stringent Wastewater Treatment Requirements Poor Local Water Quality Social Reaction Political Reaction New Policy 10Classified - Internal use Increased Local Development Infrastructure Funding Policy Economic Scarcity

11 Classified -- Internal Use Global Risk Assessment and Analytics 2010 System-wide Water Risk Summary in Manufacturing

Our business can only be as healthy as the local communities where we operate; access to clean water is one of the most important barometers of a community’s health. Muhtar Kent Chairman & CEO The Coca-Cola Company “ ” Water is: –The main ingredient in all of our beverages and essential to our manufacturing processes –A life-sustaining resource for the communities and ecosystems that make any endeavor possible –A key component of many of our ingredients, including sugar and juices –Fundamental to our markets (non-export) 12 Why Are We On This Journey?

© Copyright 2010 The Coca-Cola Company. Confidential Global Water Stewardship Strategic Framework 13

14 Classified -- Internal Use Supply Reliability  Decreased water availability Local Social  Adverse social climate Water Resource Sustainability  Water resources under stress Human Health & Well-Being Safe Drinking Water Food Availability SanitationEconomics Ecological Health Aquatic Ecosystems & Species Terrestrial/Riparian Ecosystems & Species TCCC Risk Specific Activities Watershed Protection Water Access & Sanitation Education & Awareness Water for Productive Use From Risk Analysis to Action

To Date, We Have 468 Community Water Programs in over 100 Countries Replenishing 52% of Product Volume 15 Access to water and sanitation Education and awareness Water for productive use Watershed protection Includes Support For:

FOOD WATERENERGY POPULATION GROWTH Expected to increase by 1.5 billion to 8 billion by 2020 By 2030 the number of urban dwellers is expected to be about 1.8 billion more than in 2005 and to constitute about 60% of the world’s population CLIMATE CHANGE 0.8 o C temperature increase by 2020 Manifestation in water Unabated, climate change could cost the world at least 5% in GDP each year If current policies are maintained, global energy demands are expected to grow by as much as 55% through 2030 and further stress water resources GLOBAL DEVELOPMENT Dramatic increase in number of developed economies Surging middle class Food-Water-Energy Nexus 16 Water, Energy and Food: All Three are at the Heart of the Sustainability Challenge Water, Energy and Food: All Three are at the Heart of the Sustainability Challenge

Southeast Asia, Baseline Water Stress and Power Plants

Southeast Asia, Long Term Change in Water Stress and Power Plants (2025, IPCC Scenario A1B)

Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture

Southeast Asia, Change in Water Stress by 2025 in areas with Irrigated Agriculture (IPCC Scenario A1B)