1. denkstatt GmbH Hietzinger Hauptstraße 28 · A-1130 Wien · Austria T (+43)1 786 89 00 F (+43)1 786 89 00-15 E office@denkstatt.at W www.denkstatt.at Water Footprint Sustainability Assessment The new trend in addressing the sustainability of sugar sourcing in Europe for Coca-Cola May 15th, 2012 Karl Resel

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

3. Folie 3 denkstatt locations denkstatt Austria denkstatt Hungary denkstatt Slovakia denkstatt Bulgaria denkstatt Romania denkstatt Spain denkstatt Serbia DENKSTATT Hungary Környezettechnológiai és -management Tanácsadó Kft. Vörösmarty u. 64. 1064 Budapest, Hungary Tel.: + 36 12391206 Email: denkstatt@denkstatt.hu Web: www.denkstatt.hu Denkstatt GmbH Hietzinger Hauptstraße 28 1130 Vienna, Austria Tel.: +43 178689000 TDZ Ennstal Eisenstraße 75 4462 Reichraming, OÖ Telefon: +43 725420580 Email: office@denkstatt.at Web: www.denkstatt.at Denkstatt Romania SRL Piata Unirii Nr. 6 300085 – Timisoara, Romania Tel.: +40 256434397 Email: office@denkstatt.ro Web: www.denkstatt.ro Denkstatt Bulgaria OOD 115 Arsenalski blvd., ent. 1, fl. 5, app. 7 1421 Sofia, Bulgaria Tel.: +35 924707508 Email: office@denkstatt.bg Web: www.denkstatt.bg DENKSTATT España S.L. C/ Pintor Picasso 6, 1° D 28807 Alcalá de Henares, Madrid, Spain Tel.: +34 620318001 Email: marta.marcos@denkstatt.es Web: www.denkstatt.es Victoria Consulting d.o.o. Gandijeva 196/19, 11070 Novi Beograd Tel.: +381 112288688 Email: dragana@victoriaconsulting.co.rs Web: www.victoriaconsulting.co.rs Denkstatt Slovensko s.r.o. BC Kerametal - Jašíkova 2, Nr. 128 821 03 Bratislava, Slovakia Tel.: +421 248291462 Email: ernst.pichler@denkstatt.sk Web: www.denkstatt.sk denkstatt & enertec GmbH Hietzinger Hauptstraße 11 1130 Vienna, Austria Tel.: +43 19094577 Email: office@denkstatt-enertec.at Web: www.denkstatt-enertec.at denkstatt & enertec

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

5. Folie 5 Regions with water stress

6. Folie 6 Water Footprint

7. 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

8. 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

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

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

11. 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: www.thecoca- colacompany.com/dynamic/press_center /2010/ 09/water-footprint-report.html

12. 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

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

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

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

16. 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

17. 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

18. 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

19. 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

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