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Water is Biggest Part of Our Supply Chain and it is Under Growing Stress
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The Coca-Cola Company's Observations, Responses and Outlook in a Changing Climate Greg Koch Director, Global Water Stewardship
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The Coca-Cola Company's Observations, Responses and Outlook in a Changing Climate Greg Koch Director , Global Water Stewardship Office of Sustainability, The Coca-Cola Company. Water is Biggest Part of Our Supply Chain and it is Under Growing Stress. - PowerPoint PPT Presentation
Transcript of Water is Biggest Part of Our Supply Chain and it is Under Growing Stress
The Coca-Cola Company's Observations, Responses and Outlook in a Changing Climate
Greg KochDirector, Global Water StewardshipOffice of Sustainability, The Coca-Cola Company
2Classified -- Internal Use
Water is Biggest Part of Our Supply Chain and it is Under Growing Stress• Physical availability – surface
or groundwater – and the sustainability of those sources
• Infrastructure existence, pressure, service area, metering
• Pricing – too cheap or too expensive
• Droughts
• Competing use and increased demand from more people and increased GDP
• Climate change
• Regulatory limits
• Social acceptance
Water Risks in Manufacturing Locations
Water Risks in Agricultural Supply Chain
Global Water Stress
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EFFECTS1. 2/3 of world population in severe water stress2. 1/3 of world land area in severe water stress3. Significant water quality degradation4. Precipitation patterns change: more droughts
and floods5. Significant increase in competition for freshwater6. More aggressive allocation , increased prices,
conflict potential7. Two billion more urban residents by 20308. Variable adaptation by public sector9. Water infrastructure needs require $1 trillion+
between now and 2025
2020: Water Megatrends and Effects
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MEGATRENDS
POPULATION GROWTHExpected to increase by
1.5 - 8 billion by 2020
CLIMATE CHANGE0.8°C temperature increase by 2020
GLOBAL DEVELOPMENTDramatic increase in
number of developed economies
2020 Water Stress: Rate of Change
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Classified - Internal use
Classifie - Internal Use Only
THIS IS NOT ONLY A DEVELOPING WORLD ISSUE
Classified - Internal Use OnlyLAKE MEAD, NEVADA
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Recent Events within the Coca-Cola system
•Chronic Water Stress•Drought•Community Connection•Local WRM Capacity
•Water Quality•Local WRM Capacity•Local Policy
PlantClosure
Find New Water Source
Water SupplyReduction
More StringentWastewater Treatment
Requirements
•Poor Local Water Quality•Social Reaction•Political Reaction•New Policy
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• Increased Local Development• Infrastructure Funding Policy•Economic Scarcity
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Global Risk Assessment and Analytics
2010 System-wide Water Risk Summary in Manufacturing
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Our business can only be as healthy as the local communities where we operate; access to clean water is one of the most important barometers of a community’s health.
Muhtar Kent Chairman & CEO The Coca-Cola Company
“
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Water is: – The main ingredient in all of
our beverages and essential to our manufacturing processes
– A life-sustaining resource for the communities and ecosystems that make any endeavor possible
– A key component of many of our ingredients, including sugar and juices
– Fundamental to our markets (non-export)
Why Are We On This Journey?
© Copyright 2010 The Coca-Cola Company. Confidential
Global Water Stewardship Strategic Framework
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Supply Reliability Decreased water availability
Local Social Adverse social climate
Water Resource Sustainability Water resources under stress
Human Health & Well-Being
Safe Drinking Water
Food Availability
Sanitation Economics
Ecological Health
Aquatic Ecosystems & Species
Terrestrial/Riparian Ecosystems & Species
TCCC Risk
Specific Activities
Watershed Protection
Water Access & Sanitation
Education & Awareness
Water for Productive Use
From Risk Analysis to Action
To Date, We Have 468 Community Water Programs in over 100 Countries Replenishing 52% of Product Volume
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Access to water and sanitation
Education and awareness
Water for productive use
Watershed protection
Includes Support For:
FOOD
WATERENERGY
POPULATION GROWTH• Expected to increase by 1.5 billion
to 8 billion by 2020• By 2030 the number of urban
dwellers is expected to be about 1.8 billion more than in 2005 and to constitute about 60% of the world’s population
CLIMATE CHANGE• 0.8oC temperature increase by 2020• Manifestation in water• Unabated, climate change could cost the
world at least 5% in GDP each year• If current policies are maintained, global
energy demands are expected to grow by as much as 55% through 2030 and further stress water resources
GLOBAL DEVELOPMENT• Dramatic increase in number
of developed economies• Surging middle class
Food-Water-Energy Nexus
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Water, Energy and Food:All Three are at the Heart of the Sustainability Challenge
Southeast Asia, Baseline Water Stress and Power Plants
Southeast Asia, Baseline Water Stress and Power Plants
Southeast Asia, Long Term Change in Water Stress and Power Plants (2025, IPCC Scenario A1B)
Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture
Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture
Southeast Asia, Change in Water Stress by 2025 in areas with Irrigated Agriculture (IPCC Scenario A1B)
