Climate Change: Mitigation and Adaptation The Coca-Cola Company’s Approach Joe Rozza, P.E., BCEE Global Water Resource Sustainability Manager The Coca-Cola Company Environment & Water Resources Atlanta, Georgia 30301, USA Joe Rozza, P.E., BCEE Global Water Resource Sustainability Manager The Coca-Cola Company Environment & Water Resources Atlanta, Georgia 30301, USA

The Coca-Cola Company by The Numbers Countries 300+ Franchise Bottlers 400+ Brands Worldwide 900+ Manufacturing Plants 1,500,000,000 Moments of Happiness for Consumers Each Day

2020: Water Megatrends and Effects 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

4 A Global Water Scarcity Crisis Water Availability(m 3 /capita/year) Extreme Scarcity StressAdequateSurplusAbundant

Mitigation & Adaptation: The Coca-Cola Company MitigationAdaptation Understand Footprint Understand Risk Exposure Set Goals Manage Metrics Develop Strategies Mitigation: Climate Protect/Energy Management Mitigation: Sustainable Packaging Adaptation: Global Water Stewardship

Agricultural Inputs Not Yet Included What is Our Carbon Footprint?

D Carbon Footprint Analysis

Climate Protection & Energy Management Goals Grow the business, not the carbon system-wide AND achieve a 5 percent reduction in developed (Annex I) countries Take 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 MANUFACTURING REFRIGERATION EQUIPMENT Climate 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. Packaging Goals Climate Benefits through Reduce, Recover and Reuse

Energy Management in Manufacturing Significant Productivity Benefits Energy Management in Manufacturing Significant Productivity Benefits 20% 10 % Compressed Air Energy Breakout Lighting 5% 20% Process Cooling 20% Process Heating 10 % 15 % Production Miscellaneous HVAC 25-50% 20-30% 10-20% 5-10% Savings Potential Overall Savings 20% 20% Energy Use Ratio Improvement and a 22% reduction in CO2 emissions while providing a 17+% IRR.

Our Sustainable Packaging Goals TCCC 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 REUSE RECOVER Sustainable 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.

Risk Management and Water Resource Sustainability Risk Assessment Participation: 840 Plants All BUs, All T2T Bottlers Briefed CEO and BOD (PPCR Council) Reports to all Group/BU Presidents, CEOs of Top Franchise Bottlers Validation, Alignment & Planning Meetings with Key Directors and Managers (300+ Individuals) Communications, Engagement & Alignment Current Operations: Source Water Vulnerability Assessments Provide Decision Support for Locally Relevant Priorities Source Water Protection Plans Plant, BU, Bottler, Cross Functional Execution Infrastructure Planning: SC Rationalization / Greenfields Connect to Annual Business Planning Execution Revised Corporate Standard Updated Governance Model Tools, Guidance, Training Support Procuring Professional Services Global Tracking System Governance & Capability Development Capability Audit Protocol Standard 11

GIS/Spatial Analysis: Using Technology to Understand Risk Exposure 12

13 Risk Visualization Tools

Global Water Stewardship Strategic Framework Enabling Vision 2020 Plant Performance Watershed Protection Sustainable Communities Global Awareness & Partnerships 14 Enable Act Global Leaders Sustainable Water Use Efficiency/Wastewater Risk Mgt Source Water Protection Community Water Partnerships Replenish Leadership

Performance Targets 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. 15

Replenish: Communities and Watersheds We 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 products Locally relevant projects that support communities and nature, from source water protection implementation to rainwater harvesting projects Total amount of water used in Manufacturing Treated wastewater Product Volume and amount to replenish 16

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