Environment Statement of Coca Cola

A healthy environment is vital to our business and the communities where we

operate. We view the protection of the environment as a journey and not a
destination. We believe that each employee has a responsibility for stewardship of
our natural resources and must strive to conduct business in ways that protect
and preserve the environment. Our employees, business partners, suppliers and
consumers must all work together to continuously find innovative ways to foster
the efficient use of natural resources, the prevention of waste and the sound
management of water. Doing so not only benefits the environment, it also makes
good business sense.

Initiatives taken for Environment Protection

I. Water Stewardship Performance

The Coca-Cola system in India has improved its water use efficiency (water usage
ratio) by over 14 percent since 2004. Water Usage Ratio is defined as the
amount in litres of water used for the production of one litre of finished beverage.
Their system follows a policy of Reduce and Recycle to continuously improve its
water usage within the plants.

II. Wastewater treatment

Wastewater is a result of production processes, such as container washing

systems, line lubrication and equipment cleaning. The generated wastewater from
our productions processes is fully treated at an on-site Effluent Treatment Plant
(ETP).

The Coca Coka has set its own norms and it also follows the norms of Pollution
Control Board. Additionally, all the discharged waste water is measured and also
used in many plants for developing green belt inside the plants. Thus, the treated
waste water in a large number of our plants complies with the “Zero Discharge”
norm of the PCB where in all the treated waste water is utilized within the plant
premises for on-land discharge. The treated wastewater is also used for
secondary purposes at the plant, such as toilet cleaning, floor washing etc.

Their global goal is to return all the water that we use for manufacturing
processes to the environment at a level that supports aquatic life. In India, all our
plants are already in compliance with this requirement on waste water treatment.

III. Rain Water Harvesting

The Coca-Cola system had created a rainwater harvesting potential equivalent to

78% of the groundwater used for its operations in India. The system is working
towards reaching a “zero water balance” with respect to groundwater usage. By
achieving a “zero water balance” with respect to groundwater usage, the Coca-
Cola system in India will create a rainwater harvesting potential equivalent to the
amount of groundwater used for its operations in India.

Zero water balance means all the quantity of used ground water is returned back
to ground.

IV. Agricultural water use efficiency project

The Coca Cola company takes projects to help farmers for effective utilization of
water.
V. Rural Livelihoods and poverty alleviation project

In order to contribute to the Government’s efforts to improve rural livelihoods and

alleviate poverty, Coca-Cola India partnered with Confederation of Indian Industry
(CII) and The International Crops Research Institute for the Semi-Arid Tropics
(ICRISAT) on two watershed projects. The location of these projects, identified by
CII and ICRISAT, were five villages in Dungarpur, Rajasthan (under Charwada
Panchayat) namely, Mordungara, Annpura, Charwada, Balvania, Adiwat, and two
villages in Tirunelveli District, Tamil Nadu (under Nanguneri Taluk), namely,
Upoorni and Parparmalpuram.
The main objectives of this project is to increase water use efficiency by adopting
an integrated genetic and natural resource management approach for enhancing
agricultural productivity; to provide availability of drinking water; to facilitate
enhanced rural incomes; and to train farmers in the area of sustainable natural
resource management and livelihood options.

VI. Sustainable Packaging

Their initiative is to advance a packaging framework in which packaging is no

longer seen as waste, but instead as a valuable resource for future use. To realize
this “zero waste” vision, they are guided by a commitment to continuous
improvement. They started in 2008 to make strides by advancing packaging
initiatives focused on three goals:

Reduce - To design consumer-preferred packages that use the least

amount of resources, while maintaining product quality.
Recover - To build packaging management systems to collect post-
consumer packaging.
Reuse - To use post-consumer packaging and packaging materials again
to deliver sustainable value.

VII. Annual Coastal Cleanup

Coca-Cola in India annually undertakes the coastal cleanup program on the

International Coastal Clean Up Day. Thousands of volunteers from different
segments of the society – school and college students, NGOs, government
agencies and the local community - participate in this cleanup program collecting
waste and debris along the coastlines, thereby reiterating their commitment to
environment sustainability.

VIII. Energy Management

They are continuously working towards using alternative fuels in their

manufacturing operations such as biomass briquettes in place of Furnace Oil (FO)
in the boilers. Similarly, other initiatives such as heat recovery systems, natural
day lighting in plant buildings are being introduced in the plants to economise
overall energy usage.

IX. Climate Protection

They have identified biggest climate protection opportunity in following area and
started efforts:
Cold-drink equipment - Improving the efficiency of our coolers, vending
machines and fountain equipment and reducing greenhouse gas emission
by this equipment.

Facilities and bottling plants - Increasing our energy efficiency and

productivity and reducing manufacturing emissions.
 Transportation - Managing our distribution fleet to incorporate more fuel-
efficient modes of product delivery.

X. Emission reduction in transportation

As a beginning and with a view to be more environment-friendly, 137 product

delivery vehicles owned by our bottling partners in Delhi now operate on
Compressed Natural Gas (CNG). CNG is a fossil fuel substitute for gasoline
(petrol), diesel or propane fuel. Although its combustion does produce greenhouse
gases, it is a more environmentally clean alternative to those fuels and it is much
safer than other fuels.

XI. Solid waste management

Various types of solid wastes are generated in plants. As a part of our

environmental initiative most of the materials used are recyclable. The various
wastes generated by operations are Cardboard boxes, Gunny bags, Polybags,
plastic scrap, wooden scrap, metal scrap etc. All the above scraps are segregated
and stored in designated places in the scrap yard for easy handling and better
recycling.

Environmental Initiative Assesment by International

Research Organisation (TERI)
TERI's assessment covered:
1. Corporate-level assessment of The Coca-Cola Company's policies,
procedures, management systems and compliance mechanisms relating to
environmental protection and water resource management and
questionnaire-based secondary data collection from selected Coca-Cola
facilities in India.

2. Plant level on-site assessment of water management at six bottling

facilities in India. The on-site assessment included: primary monitoring of
water balance and water quality; surveys; and interviews with key
personnel from each facility, the community within the defined area
(surrounding villages/Panchayat/ward), and other stakeholders to address
the relevant issues associated with water stewardship.

Results and Recommendations

The TERI report verified that Coca-Cola in India is on balance in compliance with
government regulations as well as the Company’s standards. The report also
confirmed that there were no pesticides in the water used to make our products
and that we are on the right track with the operational and efficiency
improvements made over the last few years. The report provided
recommendations for further changes and improvements.

Importnat Steps Coca-Cola India has taken to respond to specific

recommendations include:

• Placing a higher priority on water conservation and corporate responsibility

in all activities, including the goal of reaching a zero water balance with
respect to ground water usage in India.

• In March 2008, The Coca-Cola Company released guidelines for operating

in water-stressed locations; bottling facilities in India and across the world
are following these guidelines including for new acquisitions or major
expansions of its facilities.
• They have completed a revision of wastewater quality requirement
standards - including on-land discharge of treated wastewater and
soil/water quality monitoring, as well as limits on coliform count in treated
wastewater.

• The Company has commissioned new scientific studies on

groundwater/effluent to understand the impact of our plants’ treated
wastewater on regional water quality in two prioritized locations. These
locations are Mehandiganj (near Varanasi) and Kaladera (Jaipur) out of four
suggested locations.

• We have rolled out our corporate social responsibility (CSR) Vision and
guidelines embedding CSR objectives into Business Unit managers’ annual
performance plans.

• They are exploring ways we can contribute to more efficient use of water
in irrigation. Specifically, they have supported 27 drip irrigation projects in
partnership with farmers and government agencies to improve the
efficiency and productivity of water used for irrigation in the local area,
and they will expand that work.