matt turner

Future 500 – New Future 500 New Incentives for Industry t P t t W tto Protect WaterB ildi N Cl W Building New Clean Water Networks in China: Challenges and Opportunities for Protecting and Opportunities for Protecting Lake Tai

Matt Turner, Director, Water Initiative ([email protected])

© 2009 Future 500

WHAT WE’LL COVER TODAY

Who is Future 500?

Case Study: Coca-Cola’s Water Resource Management Water Resource Management Policies and Practices in India

Coca-Cola’s Global Water Stewardship

What’s next for Industry and Water?Water?

© 2009 Future 500 2

Forges links between corporations and

Stakeholders to advance the triple bottom lineStakeholders to advance the triple bottom line

Leadership

Trust

Performance

Trust

SAN FRANCISCOTOKYOTOKYO

BEIJING Amazon Defense Front

© 2009 Future 500

Future 500 Engages Stakeholders on Four Leadership Issueson Four Leadership Issues

GLOBAL STAKEHOLDER INITIATIVE (GSI)GLOBAL STAKEHOLDER INITIATIVE (GSI)

CLIMATE WATER RESOURCES FACTORY LABORC SOU C S C O O

© 2009 Future 500 4

Future 500 Water Initiative“Closes the Gap”Closes the Gap

FACTS

Trust

Performance

KNOWLEDGEKNOWLEDGE

© 2009 Future 500

A5

Case Study: Coca-Cola’s Water Management Policies and Practices in India

Harry Ott:y O

Future 500, Snr Fellow & Director of Strategic Water StewardshipStrategic Water Stewardship

Retired from Coca-Cola company as Director of Strategic Water InitiativesDirector of Strategic Water Initiatives

Spearheaded TCCC’s work concerning stakeholder concerns over water in stakeholder concerns over water in India

Led the development and Led the development and implementation of sustainable water resources management

© 2009 Future 500 6

Case Study: Coca-Cola stakeholders challengesin India in India

“Depletion of water table … is devastating local communities.”

I di " tti i d b ti id " d CSE t t h C k Indians are "getting poisoned by pesticides," and CSE tests show Coke, Pepsi, and Nestle contribute to this toxic assault – Sunita Narain, Business Week, 5-31-07

“Puts profit, greed, and exploitation above human dignity”

© 2009 Future 500

Case Study: Issue Background

Late 2004, University student groups (U of M), , y g p ( ),NGOs and investors voiced concerns about water resource management and unsubstantiated reports of pesticide residues p pin products.

U of M and TCCC agreed that an independent assessment would provide information needed assessment would provide information needed to determine Company compliance with U-M Vendor Code of Conduct.

In March 2006 and in conference with stakeholders, TCCC approached The Energy and Resources Institute (TERI), a Delhi-based NGO b t d ti th i d d t thi dNGO, about conducting the independent third-party assessment.

© 2009 Future 500

TCCC Case Study: Who is TERI?

E t bli h d i 1974 TERI i l b l NGO itt d t Established in 1974, TERI is a global NGO committed to sustainable development.

Led by Dr. R.K. Pachauri, who shared the Nobel Peace Prize with y ,former Vice President, Al Gore.

Involved in a wide range of policy and scientific areas: water resources global climate issues urban transport and pollution resources, global climate issues, urban transport and pollution, energy efficiency.

Over 700 staff drawn from multidisciplinary and highly specialized p y g y pfields.

www.teriin.org

© 2009 Future 500

TCCC Case Study: The Assessment

TERI conducted an independent, scientific assessment of TCCC’s water management practices in India to determine compliance w 1) Indian govt’, 2)internatinal standards (WHO) and 3) TCCC’s own internal standards.

TERI selected 6 plants representative of our operations to study: Kaladera Mehndiganj operations to study: Kaladera, Mehndiganj, Nabipur, Nemam, Pirangut, and Sathupalle.

Assessment protocol was determined by TERI, as p ywas the form and content of report.

TERI engaged an expert Steering Committee to oversee the work plan and methodologyoversee the work plan and methodology.

© 2009 Future 500

TCCC Case Study: The Assessment

TCCC procedures and practices were TCCC procedures and practices were assessed on hundreds of criteria.

The report confirmed that TCCC met I di l i d hi h TCCC Indian regulations and higher TCCC standards.

Plants found to be generally in compliance Plants found to be generally in compliance with all applicable Indian environmental regulatory requirements.

No pesticides were found in any of the intake water, treated water used to make TCCC beverages or effluent (U-M’s primary concern)

© 2009 Future 500

Findings and Recommendations

Local Groundwater Local Groundwater

Report recommended increased consideration of community water needs in plant siting and

i h l l l l i l di i operations at the local level, including operations in water scarce areas.

Effluent TreatmentEffluent Treatment

Although plants were found to be generally in compliance with all applicable Indian regulations, the report identified a need to strengthen our internal standards with respect to bacteriological presence in effluent water.

Report suggested additional analysis with respect to groundwater quality near four of the six plants studied

© 2009 Future 500

studied.

Findings and Recommendations

Community EngagementCommunity Engagement

Report notes that TCCC’s social responsibility initiatives could benefit from greater strategic focus.

Report notes that in all but one of the six plant sites (Nemam), there were consistent sites (Nemam), there were consistent stakeholder concerns expressed about water availability and quality.

R t d i d it Report recommends increased community engagement around water issues, especially in water scarce areas.

© 2009 Future 500

TCCC Action Plan: Shaping policies in India and China and elsewherein India and China, and elsewhere

Groundwater Use:

Global standards and guidelines for siting plants are being revised to include extensive water resource evaluations and impact of the plant on the community.

New global guidelines for operating plants in areas facing serious and chronic water shortages to be issued. Working to reach zero groundwater balance in India by 2009.

Efforts focus on reducing the water used to produce our beverages, recycling water used for beverage manufacturing processes, replenishing water in communities and nature.

Routine inspections of rainwater harvesting facilities instituted; measurement devices installed to verify volume of recovered water.

Created the Coca-Cola India Foundation to support activities that support sustainable development and focus on issues related to water, environment, healthy living and social advancement.

© 2009 Future 500

TCCC Action Plan

Pesticides:Pesticides:

TCCC co-sponsored an internationally recognized panel of residue analysis experts under the aegis panel of residue analysis experts, under the aegis of the Association of Analytical Chemists (AOAC), to develop science-based, objective protocols for pesticide testing in finished soft drinks.

© 2009 Future 500

Communicating the Findings

TERI’ b i i id TCCC’ TERI’s observations continue to guide TCCC’s efforts to make a positive mark on communities and minimize our impact on the environment in

h l f l l l dways that improve lives, fuel local economies and protect the environment.

TERI’s report is part of an ongoing global processTERI s report is part of an ongoing, global process of continual evaluation and improvement to achieve our sustainability commitments.

Assessment is another important step in ensuring that TCCC water management practices are among the best in the world.

As TCCC moves forward, the Company’s operations and water stewardship efforts will be informed by many of the findings in the TERI report

© 2009 Future 500

many of the findings in the TERI report.

2007 2008 20092006

Demonstrating Global Leadership

Using our Brands to

Community Outreach + Plant Global LeadershipCommunicateOutreach + Helping Protect Key Watersheds

PerformanceIntegrated Communications employee communicationscommunications

stakeholder engagement

media relations

Mobilizing Others Partnering with customers

Leading the Industry On-pack messaging

Engaging in Partnerships

System-wide roadmap grounded by media relations

marketing

customer activation

to educate consumers Engaging our supply chain with water efficiency goals Mobilizing other companies/industries

messaging Cause marketing Repurposing DME

Partnershipsgrounded by plant performance

supply chain activation

p

#2 purchaserof glass

#2 purchaserof glass

“Return the Drops we Use”

Engage andinspire othersRaise the volumeTake a stand

Do the advance work to start precisely + credibly

w h a t w e d o

© 2009 Future 500

inspire othersRaise the volumeTake a stand

Coca-Cola, a leader in corporate water stewardshipstewardship

Plant Performance

ReduceWatershed Protection

Supporting Community Initiatives

Recycle

ReplenishGlobal Awareness and Action

© 2009 Future 500

Thank you

San Francisco – Tokyo – Beijingf 500www.future500.org

Harry Ott – [email protected] Turner – [email protected]

© 2009 Future 500

Available Tools and Programs -- Reduce

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-13.46-16.99

-19.23

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Water usage ratio 0.00 -7.05 -13.46 -16.99 -19.23

Water usage 0.00 -3.26 -7.82 -9.45 -6.22

Sales Volume 0.00 3.72 5.69 10.01 14.66

2002 2003 2004 2005 2006

Water usage ratio Water usage Sales Volume

Sales Volume

Continued improvement can be achieved with the WWF-TCCC Water Efficiency Toolbox

© 2009 Future 500

&

Partnership Workstreams

1. Plant Performance & Efficiency ‐‐ all plants participate, setting goals on efficiency and stewardship

2. Supply Chain Water Stewardship – initial focus on sugar suppliers we all share

3. Improve watershed healthand sustainability ‐‐ in seven, iconic river basins y ,

4. Climate Change – all plants participate through energy efficiency

5. Marketing and Communication – the leverage the reputational benefits and inspire action

© 2009 Future 500

… linking powerful brands in conservation andcommercial products.

matt turner

Technology