denkstatt GmbH Hietzinger Hauptstraße 28 · A-1130 Wien · Austria T (+43) F (+43) E W Water Footprint Sustainability Assessment The new trend in addressing the sustainability of sugar sourcing in Europe for Coca-Cola May 15th, 2012 Karl Resel

Folie 2 „We shape sustainable economy, ecology and society“ denkstatt stands for  economic success through  ecological innovation and  social responsibility. Our philosophy

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Folie 4 Product Sustainability Sustainable Development Climate Protection & Energy Management Systems Social Design Waste & Resources Our services

Folie 5 Regions with water stress

Folie 6 Water Footprint

Folie 7 Water initiatives at Coca Cola  Water Stewardship at Coca Cola: Protect, Reduce, Recycle & Replenish water used in the operations  Water Footprint: understand and manage water use across the supply chain Source: Accenture UNCG Studie 2010

Folie 8 Water Footprint - components Grey water: volume of water is required to dilute pollutants to such an extent that the quality of the water remains at or above agreed water quality standards    Green water: volume of rainwater evaporated during the production process Blue water: volume of surface and groundwater consumed as a result of the production of a good or service

Folie 9 Water Stewardship and Water Footprinting Total WFP for a 0,5l PET regular Coke, produced in the Netherlands: ~35l

Folie 10 Water Footprint of Sugar Source: Product Water Footprint Assessments, The Coca Cola Company & The Nature Conservancy 2010

Folie 11 Footprinting drives attention to the agricultural supply chain  80% of sugar use in Europe group comes from locally grown beet  little irrigation; overall WFP driven by yields  What are the actual impacts, what guidance for action? Summary report: colacompany.com/dynamic/press_center /2010/ 09/water-footprint-report.html

Folie 12 Sustainability assessments drive focus to impacts and action  6 countries/ 10 regions  50% of total European beet sugar use  Objective:  To assess water footprint impacts  To locate sustainability risks  To guide business action

Folie 13 Assessing the impacts within a watershed Quelle: Product Water Footprint Assessments, The Coca Cola Company & The Nature Conservancy 2010

Folie 14 Assessing blue water footprint sustainability Quantity issue?Share of beet?

Folie 15 Assessing grey water footprint sustainability 15 Share of beet?Quality issue?

Folie 16 Results per region Scorecards for each region summarise key impacts Matrix system helps orientation between general issues and crop- specific impacts Critical to highlight caveats and limitations

Folie 17 European topline results Blue WFP  4 / 10 no quantity issues and low beet impacts  2 / 10 not confirmed due to lack of data, but unlikely to have major quantity issue or impacts  2 / 10 severe issues and/or severe share of beet growing Grey WFP:  Widespread phosphor issues, but no direct link to beet  Widespread nitrate issues, but role of beet might be overstated

Folie 18 Business action Focus action on ‘hotspot’ areas identified: Engage suppliers Understand local realities Discuss practical water sustainability response plans Define areas of collaboration Leverage best practice: Share best practice within supply chain Leverage best practice across industry Support supplier-owned initiatives

Folie 19 Summing up… A good method to show where to act if you take a holistic approach to water protection: Identifying hot spots! Methodology requiring water quantity data on riverbasin level (might not be available) Young science requiring more reality-checks (e.g. nitrate leaching) Industry response on field-level required

Folie 20 Sustainable Development „Nothing is more powerful than an idea whose time has come“ Victor Hugo