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A Case Analysis
On
Sustainability Practices of Coca-Cola

Submitted by Group 2:

Ankit Rastogi

Arun Sharma

Arun Tomar

Ashwani Gupta

Shruti Sehgal
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About the company

The Coca-Cola Company is the world‘s largest beverage company operating in more than 200
countries with a market portfolio of more than 3,500 beverage products including sparkling drinks and
still beverage such as water, juices and juice drinks, teas, coffees, sport drinks and energy drinks.

Headquartered in Atlanta, Georgia,it employs 139,600 associates across six operating groups-
Eurasia & Africa, Europe, Latin America, North America and bottling investment in addition to
corporate.

COCA-COLA HISTORY:
Coca-Cola, often referred to as Coke (generic trademark), is a carbonated beverage that is available
in stores, restaurants, and vending machines across the world. Invented in Atlanta, Georgia, by
Doctor John Pemberton, a pharmacist, in 1886, it has become as one of the global market leaders in
the beverage industry. However, Pemberton died in 1888, without realizing the success of his
product. The beverage has easily captured the local market by focusing on the different local cultures
and backgrounds and easily associated it with their happiness. The motto was to benefit and refresh
everyone it touches, so that people include the drink in their happiness

The formula for coke was invented by Doctor John Pemberton, in a three-legged brass kettle in his
backyard, in May 1886. The name for the drink was given by his bookkeeper Frank Robinson. Frank
Robinson gave the first cursive script of Coca-Cola, the flowing letters that remain a part of its
famous logo till date.He can be regarded as the first ad-man for the launch and promotion of Coke,
as it was his suggestion to give away thousands of free drink coupons and plastering the city of
Atlanta with publicity banners and streetcar signs.
Coca-Cola was first sold at the soda fountain in Jacob's Pharmacy, in Atlanta, on May 8, 1886.
Surprisingly, the expenses in making it were $20 higher than the price it was sold for, thus a loss for
its maker. It was sold at a price of 5 cents per glass.It was supposed to cure diseases like morphine
addiction, dyspepsia, neurasthenia, headache, and impotence. By 1888, there were three versions of
Coca-Cola in the market that were sold by three separate businesses. Asa Griggs Candler bought
the formula from Pemberton for $2300 and incorporated it as the Coca Cola Company in 1888.
In 1888, Pemberton sold the rights of the formula to four more businessmen - J.C. Mayfield, A.O.
Murphey, C.O. Mullahy and E.H. Bloodworth. Candler, the current corporation of Coca Cola
Company, was then re-established by Candler in 1892, after buying exclusive rights of the formula
from John Pemberton, Margaret Dozier and Woolfolk Walker. On March 12, 1894, Coca Cola was,
for the first time, sold in bottles, along with the first outdoor wall advertisement in Cartersville,
Georgia. The first advertisement for the beverage ran the same year, on May 29, in the Atlanta
Journal.
The aggressive marketing of Coca Cola by Candler made it as one of the most popular drinks of
America. The syrup was further sold to independent bottling companies that were licensed to sell the
drink by Candler‘s company. In 1891, first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at
the Biedenharn Candy Company, with Joseph A. Biedenharn as its proprietor. The principle of selling
syrup to independent bottling companies is still followed by the US soft drink industry.
In 1899, Chattanooga became the site of the first Coca-Cola bottling company. The soft drink was
marketed as a tonic by the producer, containing extracts of cocaine as well as the caffeine-rich kola
nut, until 1905.The drink also functioned in curing nausea and mildly upset stomach and was sold as
coke syrup in pharmacies in US and Canada. The advertising agency, McCann-Erickson, had been
long associated with Coca-Cola Company. In 1969, it replaced the popular ‗Things Go Better with
Coke‘ campaign, with the slogan ‗It's the Real Thing‘.
On January 18, 1971, the song "I'd Like to Buy The World a Coke" was broadcasted on Radio. It was
written by Billy Davis and Roger Cook with ideation of Backer. Though it flopped at first, Backer
persuaded McCann to convince Coca-Cola executives to give it a visual dimension as well. The idea
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soon clicked with the audience, making it a major hit among the consumers. The song continued to
be popular for the next 30 years and remained as one of the best commercials of all time.
It was on April 23, 1985 that the ‗New Coke‘ formula was released. However, owing to the nostalgia
associated with the previous drink, the company had to return to the old formula under the name
Coca-Cola Classic on July 10, 1985. On February 7, 2005, the Coca-Cola Company announced ‗Diet
Coke‘ for its health conscious consumers, proclaiming that it will give less calories to its consumers,
as it was sweetened with the artificial sweetener sucralose (a zero calorie sugar substitute).
In 2005, a new diet product was launched, Coca-Cola Zero, that was sweetened partly with a blend
of aspartame and acesulfame potassium. In July 2005, Coca Cola Company planned to resume its
operations in Iraq, as the company was boycotted by the Arab League in 1968. In 2007, ‗Diet Coke
Plus‘ was launched with vitamins B6, B12, magnesium, niacin, and zinc. Since then, coke has been
producing different beverages under its brand name, like Caffeine-Free Coca-Cola, Coca-Cola
Raspberry, Coca-Cola Citra, Coca-Cola Black Cherry Vanilla etc. The drink, today, is devoured at the
rate of more than 1 billion drinks per day.

Mission

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

Vision

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's
desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable
communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Values

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

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Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

Mission Statement Evaluation Matrix

Concern for Survival,

Products or Services

Growth, Profitability

Concern for Public

Self-Concept
Organization

Concern for
Technology

Employees
Philosophy
Customers

Markets

Image
Coca Cola
Statement

Yes

Yes

Yes

Yes

Yes

Yes
No

No

No
Analysis

Coca Cola‘s mission statement is too wide considering the Sustainability factor followed by
Corporate Social Responsibility (CSR) factor into consideration Coca Cola needs a modified
mission statement which primarily focus on CSR topics like concern for self concept, Concern
for Employees.

Business Description:

 The company produces concentrate, which is sold to licensed Coca-Cola bottlers throughout
the world. The bottlers, who hold territorially exclusive contracts with the company, produce
finished product in cans and bottles from the concentrate in combination with filtered water
and sweeteners.

COCA-COLA PRODUCT LINE:

COCA-COLA Company offers a product portfolio of more the 3500 products in more then 200
countries. Its product line includes. With a portfolio of more than 3,500 beverages, from diet and
regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters,
sports and energy drinks, teas and coffees, and milk-and soy-based beverages, our variety spans the
globe.

1) Soft drinks: The amount of calories varies in soft drinks, depending on the sweetener used.
Soft drinks get their fizz from the carbon dioxide added under pressure into the beverage
solution. The pop that occurs upon opening a soft-drink container is the sound of carbon
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dioxide being released in the form of bubbles. The unique flavor profile and refreshing quality
of a sparkling beverage is at its best when there is a good balance of carbonation in the drink.
In liquids, carbonation helps give sparkling beverages a characteristic "biting" taste. Sparkling
beverages also contain small amounts of sodium, primarily from the water used to produce the
beverage. Soft drinks may also supply phosphorus and small amounts of potassium. (Sprite,
Fanta, Diet Coke with Lime, Sprite Remix, Minute Maid Regular, Diet Vanilla Coke, Caffeine
Free Coke Classic, Diet Coke with Lemon & many more)
2) Energy drinks: Depending on the energy drink selected, the ingredients and nutrient content
may vary considerably. The caffeine content of energy drinks ranges from 50-160 mg of
caffeine per 250-mL serving depending on the brand. (IFIC, 2008) Most of our U.S. brands
contain about100 mg caffeine per 8 fl. oz. (240 mL).(Burn, gladiator, mother etc)
3) Juice drinks: Many countries and regions of the world have established specific dietary
guidelines for their populations. For example, food based diatry guidelines for South Africa
have been established, and in the United states for diatry guidelines for America have been in
place since 1980. Regardless of the country or region, there are broad recommendations that
people consume plenty of fruits and vegetables. Fruit and vegetable juices can help provide a
portion of the recommended daily intake. In addition to various vitamins and minerals juices
contain polyphenols . Polyphenols are a class of compounds that are believed to have
antioxidant properties. Research is ongoing to better understand their mechanism of action
and function in the body. And, because 100% juices are derived from fruit, they naturally
contain fructose, glucose, and sucrose, sugars found in fruit that provide carbohydrates and
calories (energy). From orange juice to apple juice and everything in between, this popular
beverage comes in a variety of forms, including, pulp-free, not-from-concentrate, from
concentrate, frozen concentrate, flavored juice blends, fortified, and those that contain other
beneficial ingredients, such as plant sterols.(bright & early, fuze etc).
4) Sports drinks: Most sports beverages are formulated to provide recommended amounts of
carbohydrates to support optimal performance during prolonged physical activity and to help
maintain fluid balance by replacing the fluids and electrolytes, including sodium, potassium,
and chloride, lost through perspiration. To learn more about the nutritional content of sports
drinks, be sure to read product labels which will provide, in accordance with local or regional
labeling guidelines, valuable nutrition information. Our policy is to provide nutrition labeling
information for all of our products, with the exception of certain returnable bottles, fountain
beverages and waters (unsweetened, unflavored), for which nutrition information is provided
by alternate means, e.g., via corporate websites.We believe in the importance and power of
'informed choice,' and continue to support fact based nutrition labeling and education and
initiatives that encourage people to live active, healthy lifestyles.
5) TEA & Coffee: Plain coffee and espresso do not contain significant amounts of calories or
vitamins and minerals. Add cream, milk, sugar or other popular flavorings like chocolate and
syrups to coffee drinks and you're likely to see a big jump in the number of calories. While an 8
fl oz (240 mL) cup of black coffee may contain 4 to 7 calories, the same size mocha latte
gourmet coffee has approximately 230 calories. As most of us know, coffee also contains
caffeine. But how much?

6) Depending on how coffee is brewed, an 8 fl oz (240 mL) serving of regular drip coffee has
about 65-120 mg (100 mg typical) of caffeine. A 1.5 fl oz (44 mL) 'shot' of espresso has
between 30 to 100 mg caffeine. Even decaffeinated coffee contains a small amount of
caffeine, about 2 to 4 mg per 8 fl oz (240 mL) serving.Coffee beans, like many other plant-
based foods, naturally contain polyphenols. Polyphenols are a class of compounds that are
believed to have antioxidant properties. Research is ongoing to better understand their
mechanism of action and function in the body. TEA Black and green teas, in particular, contain
flavonoids, substances believed to have antioxidant properties. Tea is nearly free of calories
and carbohydrates, and has no protein or fat. However, anything added to tea, like sugar,
syrup, or milk, can change those nutritional values.
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7) WATER: There are a number of varieties and types of water available. National governments
have regulations for the various types of water that are sold on the market. The regulations
specify the name that must be used for the water product, as well as requirements for safety,
packaging and labeling. These definitions generally vary, country-to-country. The examples
below illustrate various types of water sold in the United States. Varity of water: Bottle water,
Spring water, Tap water, Sparkling Bottled water, Tonic water.
Other drinks: So much more than soft drinks. Our brands also include milk products, soup, and
more so you can choose a Coca-Cola Company product anytime, anywhere for nutrition,
refreshment or other needs
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The Coca-Cola Company, its global philanthropic arm, The Coca-Cola Foundation, and its regional
foundations strive daily to be responsive to the citizenship priorities in the global communities where
we live and work

The Coca-Cola Company recognizes that a healthy and growing business can not be sustained
unless the communities it operates in are served with healthy products. As a global beverage
company, we have committed ourselves to improving the quality of life in the communities where we
do business. Our community investment priorities reflect the global and local nature of our business
and focuses on those global pillars where The Coca-Cola Company can make a unique and
sustainable difference: water stewardship, active healthy living, community recycling, and education.

FOCUS AND PRIORITIES:

CUSTOMER AND CONSUMER CONFIDENCE : The company carries out regular surveys and takes
part in Reputation Barometers, in which consumers‘ perception are compared with other rival
companies as well as with the perception of Coca-Cola in a number of countries around the world.

The results show that Coca-Cola is seen as a well-organized and profitable company with clear
visions.

FOCUS ON THE MOST IMPORTANT ELEMENTS: stakeholders of Groups and players that the
company particularly needs to listen and identified through internal discussions. The things they had
in common included reciprocal influence, opportunities for cooperation and expectations of our
sustainability work. Interviews were then conducted with around ten selected representatives of
corporate customers, non-governmental organisations and authorities.

A DRUG-FREE WORKPLACE

In 2007 Coca-cola developed the alcohol and drugs policy and introduced several activities to make it
clear that we distance ourselves from drugs and abuse. Drug testing is carried out when new
employees are recruited. All managers responsible for staff were involved in the information and
training meetings and all staff has been informed of and received the new policy in the form of a
folder.

Empowering 5 million Women by 2020 (5 by 20)

In September 2010 it announced a 10-year global initiative to empower 5 million women through the
Coca-Cola system. The initiative aims to help women in its global business system, break down the
barriers that can prevent them from growing their businesses.

The company‘s success rests on the shoulders of millions of women who run small businesses
selling and distributing Coca-Cola products every day. The aim is to reach them with training, access
to financing and links to networks of peers and mentors.

Environment Statement of Coca-Cola

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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

Water Stewardship

Water remains a high priority for the Coca-cola system. Coca-cola has identified three focus areas:
improve its water efficiencies, recycle the water used in its operation (waste water treatment; and
replenish through community water access and watershed restoration and protection.

The Coca-cola system has pledged to improve its water use ratio 20 percent by 2012 – compared
with a 2004 baseline - CCE are on track to meet this goal.

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.

Total Water Use 309.1 B liters, 100%

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Key Highlights

CCE (Coca-cola enterprise) has installed recycle-and –reclaim loops in 12 of its water treatment
systems in North America and Europe. These loops allow facilities to reuse processed water in
cooling tower, boiler or cleaning, saving an average of 220 million liters of water per system annually.
The goal is to equip 30 facilities with these loops by 2012.

Since 2005, the Coca-cola system has engaged in more than 250 community water partnership
projects in more than 70 countries. In 2009, a total of 54 projcets were completed, and 33 new
projects were initiated.

In 2009, coca-cola announced Replenish Africa Initiative (RAIN) – a six year, $30 million
commitment to provide access to safe drinking water to communities throughout Africa. RAIN
implemented by the Coca-cola Africa Foundation, will provide at least 2 million Africans with clean
water and sanitation by 2015.

In partnership with other private and social sector organizations, Coca-cola formed the 2030 Water
Resource Group to contribute new insights to the increasingly critical issue of water resource
security.

Partnering with WWF extends through 2012 and includes nearly $24 million in funding support.

Partnership with United Nations development Programme, UNDP to identify, support and
address water-related challenges in communities across Eastern Europe and Eurasia.

II. Wastewater treatment

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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 Cola 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

At present CCE has three priority areas for effectively preventing waste: optimizing packaging
efficiency; increasing our use of renewable and recycled materials; and eliminating waste to landfills
through recycling.
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CCE has a commitment to fully understanding the entire scope of its product and packaging impacts,
and CCE working to advance its Product Lifecycle Management (PLM) leadership. CCE currently
implementing a multimillion dollar product data management system that will provide foundational
PLM capabilities to manage and track global data for the entire lifecycle of our portfolio – from raw
materials through to design, manufacturing, consumer use and disposal. Having this data will enable
the Coca-Cola system to further optimize products and quality, reduces wastes, and improves
efficiency and traceability across our product lifecycle.

In its Global efforts, CCE targeted to recover the equivalent of 50% of the bottles and cans sell
worldwide annually by 2015. In 2009, CCE‘s system supported the direct recovery of 36% of the
bottles and cans we placed in the market.

Key Highlights:

The 111 Chair, the result of a joint venture between CCE and the furniture manufacturer Emeco, is
created by combining 111 Coca-Cola PET bottles and a combination of other materials, including
pigment and glass fiber, for strength. It estimated that more than 3 million PET plastic bottles will be
repurposed annually for the production of 111 navy chairs. In addition to chairs, its growing recycled
PET retail merchandise includes bags, caps, notebooks and T-shirts.

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
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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 its coolers, vending machines and fountain
equipment and reducing greenhouse gas emission by this equipment.

Facilities and bottling plants - Increasing its 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 Assessment 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.
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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.

Important 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.
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Through strategic partnership and innovative problem solving, Coca-Cola continue to identify and
leverage new technologies to reduce carbon emissions. It incorporates energy efficiency and climate
protection targets into its business plans. Coca-cola focussing its effort to reduce carbon emission in
three key areas: manufacturing, fleet/transportation and sales equipment (coolers and vending
machines).

Key highlights:

Global engagement on climate Change: In 2009, the coca-cola system played a significant role at
the UN Climate Change Conference (COP15). The company also participated in WWF‘s ―Let the
clean economy begin‖ campaign, along with other Climate Saver members.

Advancing Refrigeration technologies: In 2009, through engagement with Greenpeace, the Coca-cola
system pledged to transition to 100% HFC-free equipment for all new coolers and vending machines
by the end of 2015. As of September 2010, Coca-cola had placed 127,191 units with HFC-free
refrigeration systems. It also installed more than 3.1 million intelligent energy management devices
that reduce energy consumption by monitoring energy use on its refrigeration units.

Investing in Fuel Cell technology: Coca-cola is a foundation partner with Bloom Energy, a firm that
manufactures fuel cell using a core technology originally developed for NASA to convert natural gas
into electricity. In its Odwalla juice packaging plant in Dinuba, California, these cells are expected to
provide 30% of the plant‘s power needs while reducing its carbon footprint by 35%.
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Coca-cola has committed to invest $70 million in clean technology venture capital funds to identify
and support more environmentally focused technologies and services.

Supporting Earth Hour CCE and many of its bolting partners commemorate WWF‘s Earth Hour
annually by switching off all nonessential lights.

FINANCIAL PERFORMANCE:

1) Lager volumes of 213 million hectolitres (hl), in line with the prior year on a organic basis; share
gains in many markets.

2) Group revenue up 4% and EBITA up 6% with margin growth of 30 basis points (bps) driven by
robust pricing and cost efficiencies.

3) EBITA1 increases in all regions except Asia:

Latin America delivers strong EBITA1 growth of 17% through pricing and cost productivity.

Solid pricing and cost management in Europe drive EBITA1 growth of 4% despite lower volumes.

Cost synergies deliver EBITA1 growth of 7% in North America.

Resilient lager volume growth in Africa underpins EBITA1 growth of 4%.

Asia EBITA1 level as strong China growth is offset by constraints in India.

South Africa Beverages EBITA1 grows 2% despite increased market investment.

4) Adjusted EPS up 17% with operating performance enhanced by lower finance costs and a
reduced tax rate

5) Strong free cash flow2 of US$2,010 million, with dividends per share5 up 17%
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Coca-Cola presents sustainability as a way to create competitive advances and manage risk. After
protest over water usage disrupts its operations in India, Coca-Cola has made global leadership in
sustainable water use a strategic priority. The company sustainability agenda as a way to create
competitive advantages and its 2012 target to improve water efficiency by 20 percent.

THE COCA-COLA COMPANY‘S TOP 7 LESSONS LEARNED

The Coca-Cola Company is clearly leading the charge around creating more sustainable business
processes. So the obvious question now is: What lessons can the rest of us draw from this
experience? insiderPROFILES asked Seabright this very question. Here are the seven pieces of
advice he offered:
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1. SUSTAINABILITY STARTS AT THE TOP.

I am lucky to work at a company where the senior management really understands this, and it makes
a huge difference. It‘s also part of the history of The Coca-Cola Company and the connection our
business has in communities around the world. If you listen to Muhtar Kent, our CEO, talk about
sustainability, he clearly sees himself as the chief sustainability officer. He‘s not there just to engage
with environmental do-gooders, but also to get it right for the business. The ultimate responsibility for
the reputation of the company and the integrity of our brands rests on his desk, and so does
sustainability. This is a tremendous asset.

2. EMBEDDING SUSTAINABILITY INTO YOUR BUSINESS STRATEGY REQUIRES TARGETS AND QUANTIFIABLE
METRICS .

Measuring and monitoring your environmental performance is an area of growing importance.

Software and environmental accounting tools, like those offered by SAP, allow you to intelligently
understand and react to interrelationships among different variables. For example, we might see an
energy consumption pattern emerging in one plant that‘s different from others. With the right data, we
can correlate this to water-use efficiency. Once you spot a pattern, you can be proactive rather than
lagging, which in turn creates efficiencies that lower your costs.

If you want to drive sustainability as a real business imperative, then you must treat it as such. You
need targets and quantifiable metrics. For example, we want to improve our water efficiency 20% by
2012. None of our goals would be achievable or actionable if they didn‘t have metrics standing
behind them.

3. CONNECT WITH EMPLOYEES.

For a company to be successful, its employees need to feel good, motivated, and excited about
coming to work every day. You see this happen around sustainability agendas. I get comments in the
cafeteria, people coming up saying, ―I work in the finance department, and I‘m so excited about what
we‘re doing. I feel proud to be part of it.‖ That kind of reaction from people reinforces everyone‘s
commitment to the workplace. So, get the word out. We‘ve actually developed an internal language
for sustainability at The Coca-Cola Company called Live Positively, which embodies the values that
we aspire to deliver on every day as a business.

4. MEET IN THE MIDDLE .

I mentioned that sustainability starts at the top. But you can‘t succeed with a sustainability agenda
and make it a value driver for your business with only a top-down approach. It also requires a bottom-
up commitment from employees. You need the understanding of your senior management, but they
need to feel confident that employees have their hands around the business at the plant level and the
operating unit level. If the people at the plant level, who have 1,000 tasks they need to complete
every day, don‘t get a signal that sustainability is valued up the management chain, they will gravitate
to what‘s important to their management. A meeting in the middle of senior management and
employees is how you get successful engagement around sustainability.

5. ENGAGE YOUR SUPPLIERS .

We had a terrific supplier sustainability summit in Atlanta this past September with the leadership of
our top 30 suppliers. The group included agricultural, packaging, and refrigeration equipment
companies. We asked them to work together with us to innovate sustainability solutions and create
value for our customers. We‘ve received hundreds of ideas from our suppliers on how we can work
more closely to drive a shared sustainability agenda. The results will have a marked impact on our
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environmental footprint and our bottom line. We reached back into our supply chain for inspiration
and innovation as opposed to contracting it out to a consulting firm.

6. GAIN A MASTERY OF BOTH THE TECHNICAL AND THE POLITICAL FACETS OF SUSTAINABILITY.

To gain the trust of all stakeholders, you need a mastery of two things. One is technical and the other
is political — or on the policy side of sustainability. A lot of this work is technical. In my case, I need
to be able to talk about biological oxygen demand for treated wastewater effluent parameters and to
engage in the blocking and tackling of environmental sustainability and workplace safety issues.

At the same time, you‘ve got people at the highest levels — from the secretary-general of the United
Nations to the president of the United States to the Pope — talking about sustainability. It‘s in the
news every day. It‘s very political, and it can be polarizing in some places. The policy engagement —
understanding how all this fits together — is critical, especially as sustainability becomes a more
integrated aspect of the workplace.

If you‘re purely technical, you‘re probably not going to seize all the opportunities. If you‘re purely
policy-oriented, you probably won‘t get as much traction as you need to. Every organization has its
own center of gravity culturally, and it‘s important to understand what that is. The Coca-Cola
Company is clearly built on brands, and so marketing, reputation, and public affairs are very
important to us. Each company has a different set of priorities. So master the technical and political
issues that enable you to play to the center of gravity of your business.

7. UNDERSTAND THAT CORPORATE ENVIRONMENTAL ACTION HAS EVOLVED .

Sustainability is no longer a compliance or public relations issue. It is not sufficient to provide grants
to environmental projects and mention sustainability in an environmental report. Sustainability needs
to be fully embedded in the business and treated as a truly integrated element of business strategy,
P&Ls, brand stewardship, and the people side of the business.

All departments need to be involved: legal, PR, research and development, manufacturing, logistics,
finance, marketing, sales, and even HR. Go to an MBA recruiting tour these days, and you quickly
find that you need a way to explain why coming to work at your company offers an opportunity, not
just for a rewarding career financially, but also to do some meaningful work as part of an organization
that‘s making a positive difference in the world.

Sustainability is not a compliance or check-the-box issue. It‘s about understanding the challenges
and opportunities that will shape the business landscape for all of us going forward — and the
winners will be those companies that understand and navigate that landscape well, integrate it into
their business, and stay the course.