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

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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 12391206Email: denkstatt@denkstatt.huWeb: www.denkstatt.hu

Denkstatt GmbHHietzinger Hauptstraße 281130 Vienna, AustriaTel.: +43 178689000

TDZ EnnstalEisenstraße 754462 Reichraming, OÖTelefon: +43 725420580

Email: office@denkstatt.atWeb: www.denkstatt.at

Denkstatt Romania SRL Piata Unirii Nr. 6300085 – Timisoara, Romania Tel.: +40 256434397 Email: office@denkstatt.roWeb: www.denkstatt.ro

Denkstatt Bulgaria OOD115 Arsenalski blvd., ent. 1, fl. 5, app. 71421 Sofia, BulgariaTel.: +35 924707508Email: office@denkstatt.bg Web: www.denkstatt.bg

DENKSTATT España S.L.C/ Pintor Picasso 6, 1° D28807 Alcalá de Henares, Madrid, SpainTel.: +34 620318001Email: marta.marcos@denkstatt.esWeb: www.denkstatt.es

Victoria Consulting d.o.o.Gandijeva 196/19, 11070 Novi BeogradTel.: +381 112288688Email: dragana@victoriaconsulting.co.rs Web: www.victoriaconsulting.co.rs

Denkstatt Slovensko s.r.o.BC Kerametal - Jašíkova 2, Nr. 128821 03 Bratislava, SlovakiaTel.: +421 248291462Email: ernst.pichler@denkstatt.skWeb: www.denkstatt.sk

denkstatt & enertec GmbHHietzinger Hauptstraße 111130 Vienna, AustriaTel.: +43 19094577 Email: office@denkstatt-enertec.atWeb: www.denkstatt-enertec.at

denkstatt & enertec

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Product Sustainability

Sustainable Development

Climate Protection & Energy

Management Systems

Social Design

Waste & Resources

Our services

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Regions with water stress

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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

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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

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Water Stewardship and Water Footprinting

Total WFP for a 0,5l PET regular Coke, produced in the Netherlands: ~35l

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Water Footprint of Sugar

Source: Product Water Footprint Assessments, The Coca Cola Company & The Nature Conservancy 2010

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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

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Assessing the impacts within a watershed

Quelle: Product Water Footprint Assessments, The Coca Cola Company & The Nature Conservancy 2010

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Assessing blue water footprint sustainability

Quantity issue? Share of beet?

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Assessing grey water footprint sustainability

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Share of beet?Quality issue?

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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

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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

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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

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Sustainable Development

„Nothing is more powerful than an idea whose time has come“

Victor Hugo