Page 1

our environmental values the coca-cola company

2002

environmental report


table of contents

Our Commitment •

The Business Case

1 Introduction

2 Our Business

3 Environmental Governance

4 Our Environmental Performance •

Scope and Coverage of this Report •

Manufacturing Plants Performance Data •

Other Impacts Throughout Our Supply Chain

5 Conclusion

6 Data

the coca-cola company

 2

2002

environmental report


Our Commitment Douglas N. Daft Chairman and Chief Executive Officer

At The Coca-Cola Company we are aware that owning leading brands such as Coca-Cola brings responsibilities, and that our success in the market will be sustained only if we operate responsibly. Our Company’s size and reach make us global citizens. But our products are in shops and kiosks and kitchens everywhere; as such, we are local citizens as well. We need to address global issues such as water scarcity and climate change, while also understanding how they affect local communities and how we can help those communities build prosperity. Our business success depends on the prosperity and sustainability of the communities where we operate. Increasingly, the true measure of a well-managed company is not just whether it is financially successful, but how it achieves that success. Corporations have to be both profitable and accountable. Our corporate citizenship framework addresses this through four principles—providing quality in the marketplace, enriching the workplace, strengthening the community and preserving the environment.

the coca-cola company

 3

2002

environmental report


We intend to demonstrate our

commitment to the environment by establishing benchmarks and processes against which the Coca-Cola system can determine how to continuously improve our collective environmental performance. This report is about how we intend to protect and preserve the environment through the way we conduct our business. Our term for this objective is environmental stewardship, and we are committed to integrating these principles into our business decisions and processes wherever we operate. We have a presence in more than 200 countries, in very different local conditions, but we have standards of consistency that, like Coca-Cola itself, ensure the quality of what we do—wherever we do it. In the 34 years since I joined The Coca-Cola Company, I have lived on three continents and conducted business on six. Over that period, I have witnessed environmental decline in countries all over the world: the retreat of glaciers in Canada and Switzerland, the demise of trout streams in England and Australia, the entirely too-frequent smog alert days in The Coca-Cola Company’s hometown of Atlanta. Many of these developments, if allowed to continue, may increasingly affect the way we live and the way we do business. But I have also seen heartening progress with the successful reclamation and restoration of habitats, plants and animals throughout the world and with decisive actions by companies to progressively eliminate ozone-depleting substances. Yes, this is decidedly incremental progress, and on a global level things still seem to be deteriorating faster than they are improving. But as attitudes change among government officials,

the coca-cola company

consumers and business leaders, I believe we are approaching a positive tipping point for the environment. From our side, we believe we can and should do more to make our business sustainable. Some actions we can take ourselves, others require further work with governments, with consumers and with other business leaders. I am an environmental optimist. The Coca-Cola Company’s first environmental report reiterates our dedication to environmental stewardship and is a starting point for further improvement. For my colleagues and me, it is an opportunity to demonstrate our commitment to the environment by establishing benchmarks and processes against which the Coca-Cola system can determine how to continuously improve our environmental performance. We believe it is important for companies to look beyond the walls of their own plants, and that is what we have done in this first global environment report—by assessing the environmental performance of our whole business system, including our main business partners, the bottling companies that package and deliver our products. I do not underestimate the size of the task ahead. It will take time, resources and dedication. But, as in other areas of our corporate citizenship, we will work diligently to achieve our goals. And we will continue to share our progress with you, our stakeholders, in an open and transparent manner.

 4

2002

environmental report


The Business Case Steven J. Heyer President and Chief Operating Officer

Our goal is to reduce our environmental impact while increasing our efficiency and long-term profitability.

We developed the systemwide Environmental Performance Measurement (EPM) initiative in 2000 to help operations evaluate their progress and to collect the data in this report. EPM allows us to assess the environmental impacts of our business system. We use the data to encourage individual plants and our bottling partners to benchmark their current performance. This is a key management tool that allows us to highlight best practices, build training programs and drive environmental improvements. Today, we are implementing systems to ensure we minimize risks and capitalize on opportunities for our business and for the environment. Continuous improvement in efficiency and environmental performance is an essential component of our business strategy. We will demonstrate leadership in areas where we are able to have a positive influence, especially in our key areas of environmental impact: water, energy/greenhouse gas emissions and waste. Businesses have a duty to find new ways to operate so that the economic wealth we create is sustainable in the long term and contributes to an improved quality of life. We must not consume resources at the expense of future generations. This is a huge task, and there is a limit to what we can achieve on our own. However, we are committed to doing our best and to encouraging members of our supply chain and others in the food and beverage industry to join us. The initiatives in this report and others illustrate our approach to environmental issues—reducing our environmental impact while increasing our efficiency and long-term profitability.

The Coca-Cola Company is the world’s largest beverage company. We cannot sustain that success without considering the individuals, communities and natural environments where we do business. We believe that being a responsible steward of the environment is essential to The Coca-Cola Company’s successful future as a commercial enterprise. Our environmental policies and initiatives are more than just a commitment to protecting natural resources. They are also a fundamental part of our competitiveness as a commercial organization—reducing risks and operating costs, improving quality and nurturing our brands. Most environmentally beneficial practices improve business efficiency. Minimizing waste, for example, usually results in lower costs and higher yields. Solid waste, wastewater and emissions represent inputs that have been paid for but which are too readily thrown away, often with a disposal charge. Our aim is to minimize waste production in the first place, to reuse or recycle as much as we can—whether it is solid waste or used water—and dispose of what is left in an environmentally responsible way. Legal compliance is, of course, essential; and we have always tried to conduct our business with responsibility to the environment. In the 1950s, we were one of the first members of Keep America Beautiful, and in 1969 we were using a precursor to Life Cycle Analysis to evaluate environmental impacts related to our products. In 1993, we were among the first to receive recognition for our policy statement phasing out chlorofluorocarbons (CFCs) from refrigeration equipment and in 2000 we committed to do the same with hydrofluorocarbons (HFCs) as cost-efficient alternatives become available.

the coca-cola company

 5

2002

environmental report


chapter 1 : Introduction

1 Introduction

As part of our commitment to environmental stewardship, this report details the worldwide environmental impacts of the Coca-Cola system—The Coca-Cola Company and our bottling partners around the world. It also sets out our environmental policy and commitments and explains our environmental governance structures and management systems. Performance data in this report focuses mainly on our manufacturing plants and those in the Coca-Cola system, including independent bottlers. We also discuss other environmental impacts over which we have varying degrees of influence: such as distribution, marketing and suppliers’ and customers’ operations, although data is less readily available for these areas of the supply chain. Data covers 711 plants, producing 78.8 billion liters of nonalcoholic beverage products, equivalent to 74 percent of the 2002 end-product sales volume of the brands owned by our Company. We have estimated the overall impacts of our system by extrapolating from this data to our total volumes. The figures published here will form the baseline for future reporting. the coca-cola company

 6

2002

environmental report


chapter 2 : Our Business

2 Our Business

The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Finished beverage products bearing our trademarks, sold in the United States since 1886, are now sold in more than 200 countries and include the leading soft drink products in most of these countries.1 OUR COMPANY

OUR BOTTLING PARTNERS

The Coca-Cola Company manufactures a variety of beverage concentrates and syrups, as well as some finished beverages, which we sell to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. Our products include some of the world’s most valuable brands—more than 300 in all. The Company operates through five geographic segments (Africa; Asia; Europe, Eurasia and Middle East; Latin America and North America), which we call strategic business units, plus a corporate segment. Approximately 56,000 people worldwide are employed by The Coca-Cola Company.

Our concentrates and syrups are generally sold to bottling partners, which are authorized by our Company to manufacture, distribute and sell our branded products. This business system—The Coca-Cola Company and our bottling partners —is referred to as “the Coca-Cola system,” or just “the system.” While this report covers the environmental performance of the system as a whole, it is not a single entity from a legal or a management point of view. We have three types of bottling relationships.The corresponding number represents the percent of worldwide unit case volume that each type of bottler produced and distributed in 2002: independently owned bottling operations, in which the Company has no ownership interest (23 percent) • bottlers in which the Company has a noncontrolling ownership interest (59 percent) • bottlers in which the Company has a controlling ownership interest (8 percent) Fountain operations and The Minute Maid Company produced and distributed approximately 10 percent of our 2002 worldwide unit case volume. •

At the end of 2002 we owned, held a majority interest in or operated: • •

33 beverage concentrate and/or syrup manufacturing plants 39 operations with 103 principal beverage bottling and canning plants outside the United States 8 juice and juice drink production facilities in the United States and Canada 1 facility in Florida that manufactures juice concentrates for food service use 51 percent of CCDA Waters, L.L.C.— a joint venture with Danone Waters of North America, Inc. and Danone Holdings, Inc.— which has five production facilities in the United States

the coca-cola company

 7

2002

environmental report


chapter 2 : Our Business

programs of these bottlers, but we have mutual self-interests and therefore work together to find common ground and take common action in many areas. This includes our environmental activities. Our ownership interests in Company bottling operations around the world are subject to change over time, depending on business and other considerations.

Our relationship with bottlers we do not own or control is one of collaboration and mutual support. These businesses have independent managements, policies and governance structures. Many are publicly traded companies with independent shareowner structures. Some are involved in businesses outside the nonalcoholic beverage sector. We do not control the policies and

OUR SYSTEM – THE COCA-COLA COMPANY AND OUR BOTTLING PARTNERS At the end of 2002, the Coca-Cola system owned, leased or operated 982 manufacturing facilities around the world, distributed as shown on the map.

Manufacturing Facilities Number of manufacturing facilities owned, leased or operated by companies comprising the Coca-Cola system

Europe, Eurasia and Middle East 202 MONGOLIA

North America 160 Asia and Pacific 218

Africa 174 Latin America 228

Summary of Manufacturing Facilities 33 concentrate and syrup plants 8

juice and juice-drink production facilities

5

CCDA water plants

1

food service juice concentrate plant

935 system bottle/can plants

Total 982 Plants

the coca-cola company

 8

2002

environmental report


chapter 2 : Our Business

OUR MANUFACTURING PROCESS Our Manufacturing Process and Its Environmental Impacts

water

1. used in our system’s plants as a product ingredient, as well as in operations for processes such as purification, washing and rinsing of packaging, cleaning of product mixing tanks and piping, steam production and cooling 2. wastewater from plants required by Company policy to be either treated on-site or discharged into public or private sewage systems for treatment before being returned to rivers and other natural bodies of water

Vending Machines & Coolers

Ingredients & Bulk e.g., lemon oil, Packaging vanilla & cherry flavor

Concentrate Plants

Bottling Plants

Warehouse

Consumers

Transport

Customers Ingredients & Packaging e.g., water, sweeteners & CO2

greenhouse gas emissions

1. from energy used in manufacturing operations, either directly (e.g., in-plant boilers fueled by gas or oil) or indirectly (power plants producing the electricity used in bottling plants) 2. from energy use and refrigerant leaks associated with the manufacture, operation and disposal of cold-drink equipment such as coolers and vending machines 3. from fuel used to power the fleets that deliver our products to retailers

waste

1. waste from our system’s production facilities includes ingredient containers, damaged product containers (typically refillable ones), shrink or stretch film that holds palletized products together, bio-solids from wastewater treatment plants, wood from damaged pallets and compostable material from ingredients such as tea leaves, etc. 2. waste arising from the disposal of sales and marketing equipment at the end of its useful life 3. packaging waste arising after consumers have enjoyed our products

This picture is an over-simplification of our manufacturing and distribution process. Please see endnote number 2 for details.

the coca-cola company

 9

2002

environmental report


chapter 3 : Environmental Governance

3 Environmental Governance

This section explains our Company’s approach to managing environmental issues—the governance and management systems that provide accountability, develop and implement policies and programs, measure performance and provide assurance. We also report how we engage on environmental matters with stakeholders and throughout the supply chain, especially with bottling partners. ACCOUNTABILITY

Our environmental management system, eKOsystem,3 establishes common operating standards for our Company on environmental stewardship and provides guidelines for our bottling partners around the world. It also ensures that environmental concerns are incorporated into our day-to-day operations, even in those regions where regulatory standards do not exist or may not be fully enforced. Our Company uses eKOsystem to reduce our environmental impacts, and for achieving environmental gains, reducing costs and increasing efficiencies.

Everyone in the Coca-Cola system is responsible for stewardship of the environment. At the local level, environmental coordinators in our strategic business units, divisions and production facilities are responsible for ensuring compliance and performance in their operations consistent with our environmental policy and standards. The Senior Vice President of our Quality Division has direct responsibility for environmental governance, supported by departmental staff who include environmental experts. This officer reports directly to the Chairman and Chief Executive Officer. The Board of Directors of The Coca-Cola Company has an Audit Committee, which is responsible for environmental governance and which oversees compliance with environmental policies.

The Coca-Cola Company Quality System Model

Quality Statement

Environment and safety are integral parts of The Coca-Cola Quality System. Our environmental policy is based on a simple overarching principle:

Policy Assur ance Contr ol

We will conduct our business in ways that protect and preserve the environment.

e nv i r

onm e

nt

The Coca-Cola Promise may be found on www.coca-cola.com.

the coca-cola company

 10

2002

Performance Standard

environmental report

y

ENVIRONMENTAL MANAGEMENT

The Promis e

qual i t

sa p r f e ty ev & en l tio oss n

Management System Standard


chapter 3 : Environmental Governance

In 2002, we focused on developing a simplified, modular management system that is better aligned with the international environmental standard ISO 14001. This structure was launched in 2003. Along with eKOsystem, our Company’s “Good Environmental Practices” documents (GEPs) set out specific requirements and guidelines for significant environmental aspects of our operations. GEPs have been developed for: • auditing environmental and safety systems • energy management • environmental due diligence • fleet management • managing hazardous materials • measuring and reporting environmental performance • ozone protection • wastewater quality • water resource management

eKOsystem is based on five values: A Commitment to Lead Our commitment to protecting and preserving the environment extends throughout our organization. Our officers, managers and employees assume responsibility for daily implementation of our environmental management system. • Compliance and Beyond Our commitment to the environment extends beyond compliance. We are determined to integrate sound environmental practices into our daily business operations. Even in the absence of specific regulatory requirements, we operate in an environmentally responsible manner in accordance with the environmental standards of The Coca-Cola Company.

We also provide guidance to employees, operations and facilities on managing specific environmental issues. In addition to technical manuals addressing specific environmental activities, our Company also offers environmental training programs. For example, Waste$MART (Systemwide Minimization and Reduction Techniques) trains employees to identify cost-saving opportunities in the areas of water, energy and waste reduction.

• Minimizing Impact, Maximizing Opportunity We use the results of research and new technology to minimize the environmental impact of our operations, equipment, products and packages, taking into account the associated cost or profit for each environmental benefit. We minimize the discharge of waste materials into the environment by employing responsible pollution prevention and control practices.

AUDIT PROGRAM Since 1993, the Company’s Legal Division has managed a corporate environmental and safety audit program. All Company-owned facilities are periodically 4 audited to assess compliance with applicable legal and Company requirements. The program also assesses the effectiveness of the operations’ environmental management. As part of our management review process, audit reports are provided by the Legal Division to those executives responsible for the audited facilities or operations. Issues identified during an audit are addressed through a corrective action program that provides a defined, systematic process to ensure prompt and effective resolution. The status of corrective actions is regularly tracked. To date, we have undertaken more than 200 audits of our Company-owned facilities.

• Accountability We are accountable for our actions. The Coca-Cola Company conducts audits of its environmental and safety performance and practices, documents the findings and takes necessary improvement actions. • Citizenship We seek to cooperate with public, private and governmental organizations in identifying solutions to environmental challenges. We direct our Company’s skills, energies and resources to those activities and issues where we can make a positive and effective contribution.

the coca-cola company

 11

2002

environmental report


chapter 3 : Environmental Governance

ENGAGING OUR STAKEHOLDERS

In early 2002, we established an Environmental Advisory Board of outside experts to inform our Company on existing and emerging environmental issues. Through this Board, our Chairman and our Executive Committee receive candid, independent advice on environmental matters and on our environmental policies, programs and performance.8

Bottling Partners Our products are part of a larger business system and affect the environment in a variety of ways. Our interest in environmental stewardship therefore extends beyond Company-owned facilities. We work with our bottling partners to develop consistent policies and to achieve continuous improvement in the environmental performance of our system. As such, we promote environmental activities with them, including coaching and training. The Coca-Cola Environmental Council also has been established to help develop new environmental standards across our system. The Council will promote improvements by building a network of individuals to mobilize best practices and training.

The following are currently members of the Environmental Advisory Board: The Right Honorable John Gummer, MP – Chairman

Supply Chain

Mr. Saburo Kato

Chairman Sancroft

President Research Institute for Environment and Society

Professor Daniel Esty

Dr. Amory Lovins

Director of the Center for Environmental Law and Policy Yale University

Chief Executive Officer Rocky Mountain Institute

Ms. Julia Marton-Lefèvre

We will continue to work with our partners to extend our environmental values throughout our supply chain. Our commercial relationships with suppliers are governed by our Supplier Guiding Principles program5, which requires compliance with environmental laws and regulations. We are also working with many suppliers to develop new environmentally beneficial technologies. To date our collective efforts have yielded reduced packaging weight, higher recycled packaging content and greater energy efficiency for cooling equipment.

Dr. Calestous Juma Director of the Science, Technology and Innovation Program Center for International Development Harvard University

Executive Director Leadership for Environment and Development ( LEAD) International

Mr. William McDonough Ms. Yolanda Kakabadse President IUCN–The World Conservation Union

Architect and Founding Partner William McDonough + Partners

Communities and Organizations We conduct our business in local markets around the world. It is therefore essential that we understand the needs of the communities where we operate and their expectations of our system. As such, we recognize that our practices should reflect local priorities. This is particularly true for environmental issues where local impacts can be as significant as global ones. We believe many environmental issues can only be addressed properly through a partnership among companies, government authorities and local communities. We believe we have a duty to listen to others, to engage in constructive and honest dialogue with external stakeholders and to respect their opinions. We have a strict Code of Business Conduct 6 that governs our relations with public authorities and the way we pursue our interests. At the international level, we belong to several organizations searching for solutions to global environmental problems. These include the World Business Council for Sustainable Development; the Global Environmental Management Initiative; the Society for Organizational Learning’s Sustainability Consortium7; and European Partners for the Environment. At the national and regional levels, we are members of many environmental organizations dedicated to package recycling and anti-litter campaigns. These include ERRA/ASSURRE in Europe; Keep America Beautiful; the Buy Recycled Business Alliance in Australia; and CEMPRE in Brazil.

the coca-cola company

Doug Daft participates in a meeting of the Environmental Advisory Board in London.

 12

2002

environmental report


chapter 4 : Our Environmental Performance

4 Our Environmental Performance

This section of the report covers the worldwide environmental impacts of The Coca-Cola Company and our bottling partners. It provides an overview of our current performance data, and details some of the steps we are taking to address our impacts. SCOPE AND COVERAGE OF THIS REPORT

Data has been collected from:

As this is our first global environmental report, we do not have reliable comparative figures from previous years. The data published here will form the basis for future comparisons. Unless otherwise noted, this report covers manufacturing plants owned by the Company and our bottling partners. Offices, laboratories, research and development facilities and warehouses are not included. Data provided by our bottling partners offers a more comprehensive picture of the environmental impacts of our business system. This more difficult approach has resulted in less than 100 percent data collection. The numbers and ratios in this section relate to the plants that have participated in our exercise.9 For each main impact category, we have estimated the overall impacts of our Company’s operations and those of our bottling partners by extrapolating the data to our total system production volumes.10 At time of publication, allegations concerning our environmental business practices in India had been raised. We intend to address these issues in a future report.11

Manufacturing Facilities

the coca-cola company

33 Coca-Cola concentrate and syrup plants 7 plants in our juice and juice-drinks production facilities • 1 food service juice concentrate plant • 670 bottling and canning plants throughout the world— most of which are independent businesses in which we may or may not have a stake. Collectively, the end-product volume covered by these 711 plants is 78.8 billion liters of nonalcoholic beverage products, and represents 74 percent of the 2002 end-product sales volume of the brands owned by the Company, 106 billion liters. • •

Marketing and Distribution We have limited environmental data for sales and marketing equipment, as their energy use is typically out of the management control of our Company and bottling partners. However, laboratory testing and simulation models allow us to estimate the related environmental impacts. Our 2002 data on distribution fleet performance represents 37 percent of total production, which we do not consider sufficiently representative to extrapolate to our system. The complex distribution structure and significant third-party ownership of vehicles complicated the datagathering process. We have also estimated other environmental impacts over which the Coca-Cola system has a certain degree of control. Other impacts occurring “upstream” and “downstream” in suppliers’ and customers’ operations are explained and assessed, but we are unable to provide data for these aspects which are beyond our control.

 13

2002

environmental report


chapter 4 : Our Environmental Performance

Scope and Data Coverage

Vending Machines & Coolers

Ingredients & Bulk Packaging e.g., lemon oil, vanilla & cherry flavor Concentrate Plants

Bottling Plants

Warehouse

Transport

Consumers

Customers

Ingredients & Packaging e.g., water, sweeteners & CO2

Impacts by concentrate plants owned by The Coca-Cola Company scope of reported data Impacts by bottling plants, owned and operated by bottlers Impact by other bottling system operations (e.g., sales and marketing equipment and fleet) Impacts up/downstream, which we can influence (e.g., packaging manufacturing/recycling) Impacts up/downstream, where we have limited influence (e.g., home refrigeration, commodity ingredients) This picture is an over-simplification of our manufacturing and distribution process. Please see endnote number 12 for details.

MANUFACTURING PLANTS PERFORMANCE DATA This section describes the environmental performance of our manufacturing operations and most of the manufacturing operations owned by our bottling partners. Water by this report used a total of 213.9 billion liters of water to produce 68.6 billion liters of product.14 This total includes products in cans and bottles, which are directly sold to consumers, and fountain syrup, which must be mixed with water and carbonation in retail fountain equipment before being sold to consumers. Extrapolating our water use ratios to the part of our production not directly covered by our data suggests an estimated global water consumption by the whole business system of 307 billion liters in 2002.15

Water is the main ingredient in the nonalcoholic beverage products that bear our trademarks. It is also used in production for such purposes as washing and rinsing packaging, cleaning mixing tanks and piping, steam production and cooling. There are also nonmanufacturing uses, such as dining and restroom facilities, truck washes and landscape irrigation. Water used for these purposes is then, as required, passed through wastewater treatment plants, whose output may be reused for non-product applications. The average water use of the operations covered in this report is 3.12 liters of water per liter of product 13. The 711 plants covered

the coca-cola company

 14

2002

environmental report


chapter 4 : Our Environmental Performance

Average Water Use Ratio Our system’s composite average water use ratio is 3.12 liters per liter of product

[1 liter]

goes into our products

[3.12 liters]

[2.12 liters]

water used in manufacturing and bottling applications such as water purification, washing and rinsing of packaging, cleaning of product mixing tanks and piping, steam production, cooling, etc.

goes into wastewater treatment

and then is returned to the natural environment

This picture is an over-simplification of our process. Please see endnote number 16 for details.

Water efficiency in plants depends on a variety of factors, including the kind of product produced and the packaging used. For example, plants exclusively producing products in refillable bottles, which have to be washed and cleaned, tend to use much more water—on average 4.4 liters of water per liter of product, compared to as little as 1.3 liters per liter17 of product where bottles are not reused. Product mix can have a decisive influence on the water use ratio, too. For example, plants that manufacture beverages such as teas and coffees tend to report higher water use ratios, due to the pasteurization and related processes needed for these products.

the coca-cola company

Wastewater Our Company policy requires compliance with all applicable laws and regulations regarding wastewater treatment. Further, the policy requires that wastewater discharged from our facilities into rivers or other natural bodies of water be treated to a level capable of supporting fish life. This is achieved through on-site wastewater treatment or by discharging to a municipal or privately-owned treatment system that engages in adequate treatment. In 2002 more than three quarters, 76.5 percent, of plants in the Coca-Cola system achieved this standard, up from 69 percent in 2000. We aim for all plants to comply with this standard. We continue to seek additional opportunities to reuse treated waters.

 15

2002

environmental report


chapter 4 : Our Environmental Performance

Energy Roughly 95 percent of the energy consumed by our system powers bottling operations, including equipment such as boilers, chillers and air compressors. In some locations these operations also manufacture packaging, such as polyethylene terephthalate (PET) plastic blow molding. In 2002, our system consumed 38.5 billion megajoules (MJ) of energy to produce 67.1 billion liters of products in the plants covered by our reporting exercise.18 Average energy use was 0.57 MJ per liter of product.19 Extrapolation of the energy use ratios to production volumes not directly covered by our data suggests an estimated energy consumption of 56 billion MJ in 2002 by our whole business system.20 We estimate that this leads to direct and indirect emissions of 5.7 million metric tons of carbon dioxide.21 Energy consumption ratios are a function of specific manufacturing operations. For example, because of pasteurization, juice manufacturing uses more energy than fountain syrup. Energy use is also determined by a variety of local factors, such as climate, plant size, packaging type and use of blow-molding equipment. Plants in our system use a variety of energy sources, depending on specific needs and local conditions. Energy sources in our system, as related to production volumes of reporting plants, is explained in the picture below.

case study: United

Our bottling partner in Great Britain, Coca-Cola Enterprises Ltd., participates in the British government’s program for Climate Change reduction with all six of its manufacturing sites. This initiative encourages companies to enter voluntary agreements to reduce energy consumption over a 10-year period. Our bottler recognized that it could improve its energy efficiency performance by participating in the program. A team of experts from across the business was charged with examining opportunities and developing action plans to meet the first government target in 2002. Reducing the use of compressed air, which is produced by electric compressors, emerged as the best opportunity. Compressed air accounts for more than a quarter of all energy used in these bottling plants. Leakage detection and prevention programs were developed and implemented, and in some cases older, inefficient compressors were replaced with more efficient models. The bottler exceeded targets for energy reduction in 2002 by reducing overall energy consumption around 7 percent from 2001. Coca-Cola Enterprises Ltd. is on course to meet the 10-year targets and is reinvesting some of the savings made in new projects.

Energy Split

34% 37%

23%

Electricity

Fuel oil/ kerosene

5% Natural gas/ propane

1%

Coal

Other (including geothermal, purchased steam, etc.)

the coca-cola company

Kingdom

Voluntary Agreement on Energy Reduction

 16

2002

environmental report


chapter 4 : Our Environmental Performance

In 2002, the production of 58.87 billion liters of products in the plants covered by our reporting exercise22 yielded 738 kilotons of solid waste.23 On average, 12.54 grams of solid waste per liter of product was generated.24 Our system reused or recycled more than three quarters, or 76 percent, of all solid waste produced in these plants. We discarded an average of 3 grams of solid waste per liter of product. Extrapolation of waste ratios suggests an estimated total generation of industrial solid waste by our business system of 1.24 million metric tons in 2002.25 Of this total, 947,000 metric tons were reused or recycled, and 291,000 metric tons were discarded. As with energy consumption, the range of solid waste production ratios throughout our system is a function of local conditions. These include product mix (e.g., tea leaves in tea plants) and packaging mix.

case study: Australia

Greenhouse Challenge Cuts Energy Use

Coca-Cola Amatil (CCA), our bottling partner in Australia, installed a range of energy-saving devices, such as dimming systems, switching systems and energy-efficient lamps, which decreased electricity consumption for lighting by 30-40 percent. As a result of this initiative, CCA expects its energy saving program to reduce greenhouse gas emissions from its Australian sites by more than 2,000 tons of carbon dioxide a year. Lighting represents a significant cost for CCA, accounting for 15-20 percent of total electricity consumption. In 1999, lighting at CCA’s plants was operated by an inefficient “one on, all on” system and therefore had potential for significant savings. The initial investment into this initiative was between $110,000 and $130,000 (AUD) per site. With anticipated savings of between $30,000 and $50,000 (AUD) per year at some plants, this program is now on its way to paying for itself. The CCA initiative was conducted under the Australian government’s voluntary Greenhouse Challenge program, which encourages companies to reduce greenhouse gas emissions and make substantial savings in energy costs. CCA joined the initiative in 1999.

Managing Our Industrial Solid Waste 100%

76% Reused or recycled

24% Non-recycled

0%

Solid Waste 97 percent of our system’s solid waste is generated during the bottling process. Our waste may include materials such as: • empty ingredient containers (e.g., drums, pails, jugs) • cardboard slip sheets that separate layers of palletized cans as they arrive • shrink or stretch film and/or plastic strapping that holds palletized products together • bio-solids from wastewater treatment plants • glass or plastic from damaged bottles • wood from damaged pallets • ingredient waste, such as tea leaves

the coca-cola company

Other impacts from plants Company-owned plants included in this report had 13 notices of violation, and paid fines or other penalties of $107,410 in 2002. There was one reportable toxic release in 2002 pursuant to the Company’s United States Toxic Release Inventory reporting: one pound of ozone from our concentrate plant in Puerto Rico.

 17

2002

environmental report


chapter 4 : Our Environmental Performance

Sales and Marketing Equipment We estimate that worldwide there are a total of about nine million coolers, vending machines and fountain dispensers carrying the Coca-Cola trademark. These three main categories of equipment deliver products, at the right temperature for consumption, directly to consumers. Most of these machines keep products cold, but some also contain hot products, such as ready-to-drink coffee or tea.

case study: Ireland

Best Practice in Industrial Package Recycling

Sales and Marketing Equipment

In Ireland, one of our Company’s concentrate manufacturing plants has implemented a waste minimization and recycling program that is a model for other production plants. This plant recycled approximately 87 percent of its packaging waste in 2002. This effort was a valuable contribution toward Ireland’s 50 percent packaging recovery target for 2005. A key element of the plant’s approach is to separate materials as soon as possible. This ensures that the material remains clean, therefore easier to recycle. Repak, the Irish Waste Management Compliance Scheme, has praised the plant for its well-planned and developed waste management program, and has cited it as an example of a recycling best practice.

Coolers These are commercial refrigerators, typically in retail outlets, generally with glass doors, where product is displayed on the shelves. They represent 51 percent of all sales and marketing equipment in our system.

Vending Machines These machines are used for self-service purchases. They typically have a coin mechanism or other automatic payment system, and are usually located in offices, railway stations, airports, sport venues, etc. They represent 38 percent of sales and marketing equipment.

OTHER IMPACTS THROUGHOUT OUR SUPPLY CHAIN Delivering our Company’s products to customers and consumers requires distributing packaged product to warehouses and retailers, and operating sales and marketing equipment. We estimate that greenhouse gas emissions related to sales and marketing equipment (coolers, vending machines and fountain dispensers) are almost three times those from system plants, while greenhouse gas emissions from distribution are roughly one-third of those generated in system plants. While we do not have complete data on these activities, the following discussion may provide a broader perspective on the environmental implications of our system.

the coca-cola company

Fountain Dispensers Fountain machines are typically located on counters in restaurants. When used for carbonated soft drinks, they mix syrup with chilled carbonated water to supply product into cups or glasses for immediate consumption. They represent 11 percent of our sales and marketing equipment.

 18

2002

environmental report


chapter 4 : Our Environmental Performance

hydrofluorocarbons (HFC-134a) as suitable substitutes for CFCs. However, HFC-134a is now included in the list of greenhouse gases targeted under the Kyoto Protocol addressing global climate change. In June 2000, we announced our intention to no longer purchase new cold-drink equipment containing HFCs wherever cost-efficient alternatives are commercially available by the 2004 Olympic Summer Games in Athens. This initiative applies to refrigerant gases and insulation foam. We also intend to have new equipment that will be 40-50 percent more energy efficient than machines in 2000 by the end of the decade. By the end of 2002, we spent approximately $10 million on research and development to find suitable refrigeration alternatives, in cooperation with technology providers and sales and marketing equipment suppliers. We are testing three new refrigeration technologies: hydrocarbon refrigeration for small and medium-sized coolers; helium-based “Stirling-cycle” technology for small and medium-sized commercial equipment; and carbon dioxide refrigeration for large-sized equipment. Our system continues to explore other technological developments.

The environmental impacts of coolers, vending machines and fountain dispensers are related to the refrigerants used, the energy consumed and the solid waste generated at disposal. Our Company launched its ozone protection strategy in 1992. Since January 1995, Company policy requires that our operations no longer purchase new equipment containing or made with chlorofluorocarbons (CFCs)—because they are strong ozone depleting substances. We also implemented a robust capture/recovery program for all refrigerants. Because sales and marketing equipment can remain in use between 10 and 20 years, some CFC-containing equipment is still being utilized. However, the proportion has fallen steadily over the last few years, and we expect the phase out and decommissioning of existing CFC-containing machines to be essentially complete by 2007, consistent with the Montreal Protocol which governs CFC phase-out. We estimate that by phasing out CFCs we have thus far reduced the overall global warming impact of our system’s sales and marketing equipment by over 640,000 metric tons of carbon dioxide equivalent. When the Montreal Protocol was adopted, industry identified

Percent of CFC-Containing Sales and Marketing Equipment Remaining in the Marketplace Worldwide

100% 90 80 70 60 50 40 30 20 10 0

91

92

93

94

95

96

97

98

the coca-cola company

99

 19

2002

00

01

02

03

environmental report

04

05

06

07


chapter 4 : Our Environmental Performance

The remaining 14 percent of our volume is sold as concentrated syrup in fountain outlets. Syrup packaging is usually “bag in the box” or 5-gallon stainless steel containers. Over the last 30 years our system has made packaging significantly lighter, reducing the amount of raw materials needed and making transport more efficient.

Transport Due to the complexity of our system, it is difficult to estimate the number of distribution vehicles that we, our bottlers and contract distributors use. However, we believe the system uses approximately 180,000 vehicles. Environmental impacts result from exhaust emissions and maintenance, which is usually carried out at system facilities or by third-party specialists. Road transportation is the predominant delivery mode for our finished products; however, the delivery of concentrate from The Coca-Cola Company to our bottling partners depends substantially on marine transport. We work with our bottling partners to reduce the environmental impacts of fleets wherever possible. Steps taken so far include evaluating new technologies and modes of transport and delivery, vehicle retrofits and improving existing fleets through better maintenance and route scheduling. We intend to concentrate more effort on the transportation area and to provide more data and analysis in future reporting initiatives.

Environmental Design Lightweighting

Glass Bottles We have reduced the weight of our 250 ml nonrefillable glass bottle from 225 grams to 190 grams in certain markets. A 170 gram bottle we are using in Mexico is nearly 25 percent lighter than the standard weight of a 250 ml bottle, 225 grams. We have also been working to incorporate lightweight technology in our refillable glass packages. Recently, ABI/SABMiller and SABCO—two of our African bottlers—have been using a new 300 ml bottle that is almost 20 percent lighter than the older bottle (from 380 to 305 grams per bottle).

Packaging In addition to facilitating handling and delivery for consumers, packaging provides other important benefits: • maintaining product safety and integrity • protecting products during transportation • providing convenience for consumers • marketing and advertising • communicating product values • communicating information on nutrition and on recycling Packaging can have a substantial environmental impact because it becomes waste after use and can cause litter problems. Manufacture of packaging also consumes energy and natural resources and produces waste. Our system is working to reduce its environmental impact by: • using lighter weight and less energy-intensive packaging (including use of recycled content) • improving recycling in our operations • using materials that make recycling easier and more economically sound • supporting cost-effective and efficient local solutions to litter abatement and to recovery and recycling of packaging waste

Polyethylene Terephthalate (PET) bottles Our system introduced PET bottles in 1978. In 2002, 2 liter PET bottles in North America weighed 47.2 grams versus 67.1 grams in 1978, a cumulative reduction of 30 percent.

Aluminum Cans When Coca-Cola bottlers first used aluminum in 1965, a 12-ounce can weighed 24.9 grams. By 2002, we had developed a 12-ounce aluminum can weighing 13.2 grams, a reduction of 47 percent.

Packaging Material Our system uses a wide range of packaging materials. Stainless steel and polyethylene plastics in sizes from 1 gallon to more than 1,000 liters are used to supply ingredients to bottling plants. Our bottling partners, in turn, deliver our products in either bottles, cans and other packaging that generally is recyclable, 52 percent of total sales, or in refillable bottles, 34 percent.

the coca-cola company

Steel Cans The weight of steel cans in Europe, one of our key markets for this package, has dropped by more than 30 percent over the last two decades.

 20

2002

environmental report


chapter 4 : Our Environmental Performance

to work with customer account managers to look for future opportunities to use the cups in locations where composting infrastructures exist. We also work to ensure that our packaging materials are compatible with recycling systems. In the United States, for example, we worked with recyclers to develop a light-blue Dasani bottle that can be recycled as clear plastic. This is important because clear plastic material is more common in the recycling system and therefore, more readily recyclable.

Over the past few years improvements in syrup packaging for North America have reduced the impact on the environment. These include: significantly reducing the use of shrink wrap from our single soft drink syrup “bag in the box” packaging (mid 1990s) • removing metal spring out of the valve to make the “bag in the box” recyclable (1997) • specifying 35 percent post-consumer recycled content in corrugated components (late 1990s/early 2000s) • optimizing the dimensions of our bags for a 4-6 percent material reduction (2000) •

case study: Colombia

Making Clothes From Recycled PET Bottles Hazardous Materials Consumer safety is a fundamental aspect of our business system. We review materials on an on-going basis to avoid using hazardous materials that could be released when packaging is recovered or recycled, and to avoid substances that may hinder recyclability. Recycled Materials We aim to maximize opportunities for using recycled materials where practical. This allows us to reduce the use of energy and other natural resources. It also helps us increase the amount of recycling by providing an end-market use for recycled materials. Overall, we estimate that our system purchases more than $4 billion worth of goods containing recycled content each year. For example, since the 1998 Olympic Winter Games in Nagano, all new uniforms for salespeople and plant employees in our Japanese division and bottling operations have been made from recycled PET bottles. In 1991, The Coca-Cola system along with supplier Hoechst Celanese were the first to commercialize in the beverage industry a PET beverage container made with post-consumer recycled content. We use recycled content PET in certain key markets, including Australia, Europe, Latin America and North America.26 Our goal is to achieve 10 percent recycled content in all PET bottles by 2005 in North America. A cross-functional team from The Coca-Cola Company has been working with our bottling partners and our two PET bottle-manufacturing cooperatives to meet this commitment.27 In 2002, The Coca-Cola Company and our project partners were recognized for the substantial progress we made toward this goal. We have won awards from the Society of Plastics Engineers, the Association for Post-Consumer Plastic Recyclers and the Plastic Redesign Project for this work.

In Colombia, The Coca-Cola Company has helped establish a system for converting recycled plastic bottles into clothing. This is reducing waste and the impact of packaging on the environment. This project makes economic sense because it transforms waste plastic into a valuable product that can be sold for profit. Our system uses nearly 350 tons of PET bottles each month in Colombia. Used PET bottles are collected and sorted by a local recycling company, providing employment for approximately 300 people. Labels and other colored bottle parts are used to make brooms and roof tiles. The rest of the bottle is made into chips that are sold to textile manufacturers. The chips are then turned into a fiber used to make fabric. It takes about two PET bottles to yield one T-shirt. A uniform requires up to 10 PET bottles.

Innovative Materials Our Company tested biodegradable, compostable soft-drink cups at the 2002 Olympic Winter Games in Salt Lake City. We continue

the coca-cola company

 21

2002

environmental report


chapter 4 : Our Environmental Performance

Post-Consumer Recovery and Recycling Packaging is one of the most recycled consumer items in the world. We support recycling initiatives and waste-recovery efforts to minimize the environmental impact of packaging after use. Our efforts are tailored to local communities because waste management, recovery and recycling activities vary from one country to another. We also support comprehensive waste collection and disposal efforts where consumers and companies are charged for the volume of waste they generate, and market-based incentives to stimulate efficiency and the use of recycled materials. We do not support discriminatory measures aimed at particular products or materials, such as forced deposits, packaging bans or mandatory use of refillable containers. We believe these approaches tend to impose costs disproportionate to the environmental benefit, act as barriers to trade and typically focus solely on beverage containers, which puts our sector at a competitive disadvantage. Also, our experience is that such legislation tends to be too rigid and hampers innovation.

case study: Antarctica

Mission Antarctica

Our Company is working with Mission Antarctica, a not-for-profit organization, to help employees improve teamwork and leadership skills and to encourage them to take action for the environment. Mission Antarctica was founded by Robert Swan, the first person to walk both the North and South Poles. Mission Antarctica was born as a result of Mr. Swan’s participation at the first World Summit in Rio de Janeiro in 1992 where world leaders charged him to develop an inspirational project that involved young people, business and the environment. The project resulted in the cleaning and removal of many tons of scrap metal and other waste from the shores of Antarctica. Through our Company’s partnership with Mission Antarctica, a number of employees have participated in a series of teamwork events building greater awareness and understanding of the complex issues relating to the environment. These included helping organize an awardwinning exhibit at the World Summit for Sustainable Development in Johannesburg and participating in a clean-up effort along a stretch of the Jukskei River in South Africa.

Anti-Litter and Clean-Up Campaigns Beverage packaging is a visible and easily identifiable portion of typical litter. Data from the United States indicates that beverage containers constitute from 8.6 to 12.6 percent of all litter. According to the Ocean Conservancy, metal beverage cans and plastic and glass bottles accounted for nearly 18 percent of the litter collected from more than 100 countries during the 2001 International Coastal Clean-Up. We support programs and organizations that address the problem of litter through education and awareness, advertising campaigns and clean-up programs. The Coca-Cola Company participates in a number of these programs around the world, including The Beverage Industry Environment Council in Australia; Collect-A-Can in South Africa; Keep America Beautiful; Saubere Landschaft in Germany; Vacances Propres in France; and the International Coastal Clean-up. Many of our bottling partners sponsor local litter collection efforts such as Adopt-A-Highway programs in which employees pick up and dispose of litter along a stretch of roadway.

Supply Chain The goods and services our system uses to manufacture, market, distribute and sell our brands originate from a diverse range of suppliers and sources. We encourage our suppliers to share our commitment to the environment. Our Supplier Guiding Principles communicate the high priority our Company places on workplace policies that comply with applicable environmental laws and with other areas of corporate responsibility. We believe the Supplier Guiding Principles help raise suppliers’ awareness and focus their attention on environmental practices that can directly benefit their operations and relationships with local communities.

the coca-cola company

 22

2002

environmental report


chapter 5 : Conclusion

5 Conclusion

The Coca-Cola Company believes our environmental initiatives are more than a commitment to protecting our natural resources. They are a fundamental part of our competitiveness as an organization—enhancing productivity, reducing expense, improving quality and nurturing our brands. This 2002 Environmental Report—the first of its kind for our Company at a global level—is one element of our environmental efforts. In the years ahead we intend to continue collecting and reporting environmental impact data on our Company and our system, enabling us to highlight performance trends over time and to spell out targets for improvement. We also aim to demonstrate our commitment to continuous progress on the issues identified in this report, both in our plants and in the communities in which we operate. Working with our bottlers and with our partners we will strive to continuously improve our environmental performance, while increasing our efficiency and long-term profitability—creating a stronger and more sustainable future for our business and for the communities we serve.

the coca-cola company

 23

2002

environmental report


chapter 6 : Data

6 Data 28

SUMMARY OF 2002 IMPACTS FROM MANUFACTURING PLANTS IN THE COCA-COLA SYSTEM29 average for plants supplying data

estimated systemwide impact

comments

Water

3.12 liters/liter of product

307 billion liters

Ratios vary depending on plant activity

Energy

0.57 megajoules/liter

56 billion megajoules

Estimated carbon dioxide emissions (direct and indirect) of 5.7 million tons

Solid waste

12.54 grams/liter

1.24 million metric tons

76 percent of all solid waste was reused or recycled, leaving 3 grams per liter discarded

IMPACTS BY TYPE OF PRODUCTION Water operation

water use ratio

Concentrate & Beverage Base

0.015 liters of water per equivalent liter of finished product

Bottle/Can

3.16 liters of water per liter of finished product

Juices

2.43 liters of water per liter of juice

Fountain Syrup31

1.12 liters of water per liter of syrup

Energy operation

energy use ratio

Concentrate & Beverage Base32

0.007 megajoules per equivalent liter of finished product

Bottle/Can

0.56 megajoules per liter of finished product

30

Juices Fountain Syrup

0.86 megajoules per liter of juice 0.38 megajoules per liter of syrup

33

Solid Waste operation

solid waste ratio

Concentrate & Beverage Base

0.1 grams per equivalent liter of finished product

34

Bottle/Can

12.74 grams per liter of finished product

Juices Fountain Syrup

9.79 grams per liter of juice 2.74 grams per liter of syrup

35

the coca-cola company

 24

2002

environmental report


chapter 6 : Data

Data Beyond Our Operations Post-consumer packaging recycling levels around the world (percentage of recycling volumes compared with volumes put on the market)

glass

paper

metals

plastics

total

Austria

97.3

87

49.4

26.2

68.1

Belgium

79.7

82.1

70.3

25.5

62.5

Brazil

40

71

35/73

21

Not Available

France

49.7

59

49.2

11.2

42.2

Germany

83.6

90.5

76.7

55.2

78.1

Italy

46.9

45.5

44.6

16.1

38.4

Japan

82

Not Available

85.2/82.8

40.1

Not Available

Mexico

50

Not Available

55

13

Not Available

Netherlands

80.1

70.9

78.2

22.9

58.8

South Africa

20

Not Available

64

11

Not Available

Spain

31.3

58.2

33.9

17.2

39.3

United Kingdom

33.2

48.8

29.7

12.8

36.7

United States

32.8

Not Available

54.4

35.1

49.5

Figures in this chart come from different organizations that measure recycling levels in very different ways. They are therefore very difficult to compare. Please see endnote 36 for more information

the coca-cola company

 25

2002

environmental report


endnotes

This Environment Report may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company’s historical experience and our present expectations or projections. These risks include, but are not limited to, changes in economic and political conditions; changes in the nonalcoholic beverages business environment, including actions of competitors and changes in consumer preferences; foreign currency and interest rate fluctuations; adverse weather conditions; the effectiveness of our advertising and marketing programs; fluctuations in the cost and availability of raw materials; our ability to achieve earnings forecasts; regulatory and legal changes; our ability to penetrate developing and emerging markets; litigation uncertainties; and other risks discussed in our Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements. References in this report to The Coca-Cola Company or the Company are intended to refer collectively to The Coca-Cola Company and its operating divisions and subsidiaries. References to the Coca-Cola bottling system or the system are intended to refer collectively to the several different types of beverage bottling entities and operations more completely discussed and explained in the report, including independently owned bottlers, bottlers in which the Company owns an investment but non-controlling ownership interest, and bottlers in which the Company owns a controlling ownership interest. Coca-Cola, Aquarius, Dasani, diet Vanilla Coke, Fanta, Fruitopia, Minute Maid, Powerade and Sprite are trademarks of The Coca-Cola Company. Nestea is a trademark of Société des Produits Nestlé, S.A. under license to Beverage Partners Worldwide, S.A., a joint venture between The Coca-Cola Company and Nestlé, S.A. © 2003 The Coca-Cola Company. All rights reserved.

1

For details on our brands, sales and financial performance, please refer to our 2002 Form 10-K Report, which you may access from www.coca-cola.com.

16

The water use ratio picture has been simplified to give readers an easy understanding of our main water flows: readers should not rely on it to have detailed information about our performance, but rather should look at the main text for precise data. In particular, note the following: 1. The picture represents several examples of packaging, therefore it does not represent the amount of product made with 1 liter of water. 2. The quantity of water that goes into 1 liter of Coca-Cola is not 1 liter, but slightly less; the rest is due to other ingredients dissolved in the product (such as concentrate, sweetener, etc.). 3. Not all plants’ wastewater goes through a wastewater treatment plant, (for details, see page 15).

2

The Coca-Cola Company recognizes that there are other environmental impacts associated with the business system. However, this graphic focuses on water, greenhouse gas emissions and waste.

3

KO is the common stock ticker symbol for The Coca-Cola Company.

4

The Coca-Cola Company policy is that production facilities are audited at least every three years. All other facilities are audited at least every five years.

5

Our Supplier Guiding Principles may be found on www.coca-cola.com.

6

Our Code of Business Conduct may be found on www.coca-cola.com.

17

Some plants producing exclusively packaged water exhibit ratios less than 1.3 liters per liter. However, they have been excluded from this comparison.

7

Member as of July 2003.

18

See endnote 14.

8

Environmental Advisory Board members were consulted about this report. However, The Coca-Cola Company is solely responsible for its content.

19

9

Data in this report relating to or attributable to the operations of independent bottlers, those in which the Company has no ownership interest and those in which the Company has a noncontrolling ownership interest, was contributed voluntarily by bottlers in the spirit of collaboration and mutual support described on page eight. The Company was not involved in or responsible for the generation, or site-specific verification of this data. Although this portion of the data set originates outside the ownership or control of The Coca-Cola Company, we consider the aggregated figures shown in the report to be indicative of the overall environmental performance of the Coca-Cola system.

Environment reports by other companies use various measurement units. Gigajoules per ton of production is common and is equivalent to our MJ/l ratio. When applied to electricity production only, the numerator is often expressed in kWh. 1 kWh is equivalent to 3.6 megajoules

20

See endnote 10.

21

This estimate is computed using estimation factors published by the Intergovernmental Panel on Climate Change and other recognized sources. Some companies only report direct CO 2 emissions (i.e., on-site burning of fossil fuels). Our figure also includes indirect emissions of CO 2 from the power plants from which we purchase electricity.

22

See endnote 14.

23

Reported figures were based on standardized average conversion factors between volume and mass, in order to allow comparability between different measurement practices (e.g., 150 kg for 1m3 of loose waste and 450 kg for 1m3 of compacted solid waste).

24

Many environmental reports express the waste generation ratio in kg per ton of production, which is equivalent to the ratio we use here. Some only measure waste that is sent for disposal and do not include waste that is reused or recycled. This is equivalent to our figure of 3 grams/liter.

25

See endnote 10.

26

Our bottlers currently use recycled-content PET bottles in the following markets: Australia, Belgium, Chile, Fiji, Luxembourg, The Netherlands, New Zealand, Papua New Guinea, Sweden, Switzerland, United States.

27

The PET bottle cooperative system is unique within our North America business. The “coops,” as we call them, are owned by our bottlers and supply around 90% of our PET bottles within North America. This enables close collaboration on packaging design, development and commercialization.

10

Our extrapolations were calculated by multiplying the water use ratio, energy use ratio, solid waste generation ratio and recycling ratio of reporting plants by the corresponding total production volumes for each category of production (concentrate and beverage base, bottle/can, juice, fountain syrup) and summing them.

11

As most of these allegations occurred in 2003, they are not addressed in this 2002 Environmental Report. Please visit our India Division website, www.myenjoyzone.com/press1/index.htm, for more information.

12

The Coca-Cola Company recognizes that there are other environmental impacts associated with the business system. However, this report focuses on water, energy and waste.

13

Many companies issuing environmental reports express water use ratios as cubic meters per ton of product, which is equivalent to the liter/liter ratio we use here.

14

Total production volumes by reporting plants vary between the “Water”, “Energy” and “Solid Waste” sections. This is because not all plants reported all environmental indicators.

15

See endnote 10.

the coca-cola company

 26

2002

environmental report


endnotes

28

Ratios in this section have been calculated by measuring separately water and energy use and solid waste generation in all reporting plants of a specific type and comparing them with the production volumes of plants of that type. The ratios related to overall volumes by reporting plants, explained in chapter four, are not a simple arithmetic average of these four values. The overall ratios are weighted according to the relative production volumes of the four categories of products.

29

See endnote 12.

30

We measure concentrate and beverage base production by using an internal measure known as a “Standard Unit of Concentrate”. The denominator in the ratios for concentrate and beverage base production is calculated on the basis of the average amount of finished product (e.g., carbonated soft drink) that can be made using a Standard Unit of Concentrate (the exact amount may vary from one product to another). The numerator indicates the amount of water used in concentrate manufacturing only; the amount of water used to transform concentrate into a final packaged product is accounted for in the line item “bottle/can”.

31

The “Fountain Syrup” figure includes the performance of the dedicated fountain syrup manufacturing (and juice concentrate for food service) plants in the United States. Fountain syrup in other markets, produced by the bottlers, represents only 6 % of the volume and is consolidated into the bottle/can results.

32

See endnote 30.

33

See endnote 31.

34

See endnote 30.

35

See endnote 31.

36

There is no single source of post-consumer packaging recycling statistics in the world and existing national or regional statistics differ widely in the way data are collected and computed. Data in our chart should therefore not be compared with each other without checking what those numbers represent and how they were calculated. We urge readers to refer to the original sources of our data for more information. Data from EU countries are taken from ASSURRE, Analysis of Trends of Packaging and Packaging Waste 1998-2000, June 2003 (available on www.assurre.be); they are based on official 2000 data provided by EU member states to the EU Commission and cover all packaging (including industrial packaging). Brazil data are from CEMPRE (www.cempre.org) and are related to 1999; metal data refer to steel/aluminum; the number for plastic is related to PET only. Japan data concern beverage containers only and are from 2001; figures for metals are steel/aluminum; the plastic figure only concerns PET; sources are the following: Japan Steel Can Recycling Association (www.rits.or.jp/steel can/), Glass Bottle Recycling Promoter Association (www.glass-recycleas.gr.jp), Japan Aluminum Can Recycling Association (www.alumcan.or.jp), The Council for PET Bottle Recycling (www.petbottle-rec.gr.jp). Mexico data are from APREPET (www.aprepet.org.mx) and INARE; plastic figure only concerns PET. South Africa data are from Collect-A-Can (www.collectacan.co.za) and www.glassrecycling.co.za; the PET figure is an estimate by The Coca-Cola Company; the metal figure only concerns beverage cans. United States data are a collection of 2001 statistics from various sources, collected by NSDA (www.nsda.com); they refer to soft drink containers only; the plastic figure only refers to PET.

The Coca-Cola Company has asked URS Verification Limited (URSVL) to undertake limited third party verification of this 2002 Environment Report. For information on the scope of URSVL’s verification activities and their opinion on this report, please contact us through the Environmental Report feedback button, which may be accessed in the web version of this report at www.environmentalreport.coca-cola.com.

the coca-cola company

 27

2002

environmental report


Environmental report  
Read more
Read more
Similar to
Popular now
Just for you