0281del coke citizenship report final -...

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Table of Contents

1. Business Profile

2. Framework and Principles

3. Environment Performance Report

4. Independent Third Party Assessment

5. Awards & Recognition

6. Verification statement by SGS India Ltd

7. Annexure

This 2007-08 Environment Report for Coca-Cola in India covers the environmental performance of the Company on four key parameters of water stewardship, sustainable packaging, energy management and

climate protection and solid waste management. Through bars and charts, this report depicts the environmental performance data of the Coca-Cola India system through the years 2004-2007. As regards the

other information in the report, we have made an effort to collate and publish the most current information available. More information about the Coca-Cola India operations is available on our website

www.coca-colaindia.com. Information about the global operations of The Coca-Cola Company is available on www.thecoca-colacompany.com

Dear Friend,

We at Coca-Cola have always believed that a sustainable

business thrives only amidst sustainable communities. This

simple approach is at the core of our business operations

worldwide and in India. We recognize that we need to be

part of the solution on global issues that threaten the

communities we serve and therefore need to be focused on

sustainability. Our view of sustainability is the same that a

United Nations Commission defined more than 25 years ago:

"Meeting the needs of the present without compromising the

ability of future generations to meet theirs."

In a March 2008 editorial, the then Chairman, Mr. Neville Isdell outlined the new realities for a 21st century Company and a

guiding belief that it needs to follow to be successful. First, business should help support the sustainability of the communities it

serves. Second, businesses must collaborate in new ways with governments and civil society. The challenges facing our planet

are too urgent and complex for government, business or NGOs to solve alone. Third, a successful business must be – in both

perception and reality – a functioning part of every community in which it operates. At Coca-Cola India it is our effort to align our

operations to this new paradigm.

In our march towards being a sustainable growth company, I am happy to present to you Coca-Cola India's first environmental

performance report. The report captures our efforts on environmental stewardship over the years 2004 to 2007 on the key

parameters of water stewardship, sustainable packaging performance, energy management & climate protection and solid

waste management.

We realize that a lot still remains to be done in areas of environmental stewardship and community development. By making this

information available to you, we are hoping that you will join us in our journey towards sustainability by offering your comments,

feedback and suggestions. I invite you to write to us at [email protected] and share your views. The steps that we take

today both individually and collectively will pay off for future generations.

Warm regards


Message from

The CEO

Atul Singh,

President & CEO, Coca-Cola India

The Coca-Cola Company re-entered India in

1993 and since then its operations have grown

rapidly through a model that supports local

businesses – this includes over 7,000

distributors and more than 1.3 million

retailers. Today, the Company is the country's

leading nonalcoholic beverage Company with a

unique portfolio of products – Coca-Cola,

Fanta, Limca, Sprite, Thums Up, Kinley, Maaza,

Minute Maid juice drinks, the Georgia range of

teas and coffees, and Vitingo (a beverage

fortified with micro-nutrients).


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In January 2009, Coca-Cola India announced a partnership with the NGO, Bharat Integrated Social

Welfare Agency (BISWA) to build awareness on Micro-nutrient malnutrition (or “Hidden Hunger”) in

the “bottom of the socio-economic pyramid” population in India. The two partners will work together

to establish a successful income-generation model for communities through Self Help Groups in

Sambalpur in Orissa and also provide them with affordable alternatives to alleviate “Hidden Hunger.”

The first product developed by Coca-Cola India to address the issue of “hidden hunger” is Vitingo, a

tasty, affordable and refreshing orange flavored beverage fortified with micro-nutrients.

At the core of our business in India, as in the rest of the world is our production and distribution network, which we call the “Coca-

Cola system.” Globally, the Coca-Cola system includes our Company and more than 300 bottling partners. The Coca-Cola

Company manufactures and sells beverage concentrates (sometimes referred to as “beverage bases”) and syrups, including

fountain syrups. Our bottling partners either combine our syrup with sweetener (depending on the product), water or carbonated

water to produce finished soft drinks. These finished soft drinks are packaged in authorized containers bearing our trademarks –

such as cans and refillable and non-refillable glass or plastic bottles – and are then sold to wholesalers or retailers.

For all the capabilities of our Company and our bottling partners, our beverages ultimately reach consumers through our

customers: the grocers, small retailers, hypermarkets, restaurants, convenience stores and millions of other businesses that

are the final points of distribution in the Coca-Cola system. What truly defines the Coca-Cola system, and indeed what makes it

unique among businesses, is our ability to create value for our customers and consumers.

Our Business Model

BUSINESS PROFILE

5

Manufacturing and Distribution Process


One of the early investors in India, we have invested more than USD 1 billion in our operations in India since its return

to India in 1993.

Our people are the face of our brands. They are talented and passionate, and they take immense pride in being a part of

this local Company with a global scale. In India, we employ nearly 5,500 people directly and nearly 150,000 people indirectly.

We strive to ensure that our work environment is safe and inclusive and there are plentiful opportunities for our people in India

and across the world.

In India, the Coca-Cola system comprises the Company that manufactures and sells beverage concentrates and syrups, the

Company-owned bottling entity Hindustan Coca-Cola Beverages Pvt Ltd; Privately owned bottling operations owned by Indian

entrepreneurs and businessmen; and an extensive distribution system of our customers, distributors and retailers. The

Company sells concentrate and syrups to bottling partners who are authorized to use these ingredients to produce our portfolio

of beverages. Our bottling partners independently develop local markets and distribute beverages to grocers, small retailers,

supermarkets, restaurants and numerous other businesses – the customers. In turn, these customers make our beverages

available to consumers across India.

Ingredients:Sugar, Citrus, Coffee, etc. that are cost-effectively sourced

WaterUsed in our beverages and in their production

PackagingBottles, cans, cardboard

trays etc., that are designed forefficiency and effectiveness

The Coca-Cola Company Produces the concentrate and beverage bases for

regular, low and no-calorie beverage products, develops marketing

and advertising for system

Bottling PartnersIndependent bottling partners and

company-owned facilities manufacure, package and distribute our final products

Creating a world in which our packagingis recovered and recycled and made avaluable resource for the future

Safely returning to nature an amount of waterequivalent to what we use in all of our beverages and their production

THE COCA-COLA SYSTEM SELLING OUR BEVERAGES

CustomersRetail, convenience stores,restaurants and others that

sell our products directly to consumers

Warehouses Collect and store

products for distribu-tion to retail outlets

Consumers Our beverages are

consumed 1.5 billion times a day around

the world

Vending Machines and CoolersEquipment placed in strategic locations

to meet consumer needs

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The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on

the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of

output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, the

NCAER study notes that “an extra production of 1000 cases generates an extra employment of 410 mandays.”

As a Company, our products are an integral part of the micro economy particularly in small towns and villages, contributing to

creation of jobs and growth in GDP. Coca-Cola in India is the largest domestic buyer of sugar. We procure nearly 250,000 tonnes

of sugar from selected mills and all our sugar is procured locally. We are also the largest buyer of mango pulp for domestic

consumption, purchasing more than 50,000 tonnes of Totapuri & Alphonso varieties. The Coca-Cola system is the largest buyer of

green coffee beans from within India buying more than 13,000 MT of coffee beans.

As an industry which has strong backward & forward linkages, our operations catalyses growth in demand for products like

glass, plastics, refrigeration, transportation, sugar, and chemicals, etc. Our operations also lead to incremental growth for

enterprises engaged in post production activities like merchandising, marketing and sales. In addition, we share best practices

and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall

standards of quality across industries.

The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company's

business should refresh the market; enrich the workplace; protect, preserve and enhance the environment; and strengthen the

community. We leverage our unique strengths to actively support and respond to local needs – be they the need for education,

health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness

on issues such as PET recycling, and our presence in communities to improve access to education and potable water. We have

now established a Coca-Cola Foundation with the sole purpose of taking up and partnering in projects that bring about inclusive

growth and development. For more details on activities of the Coca-Cola India Foundation, please visit www.yatn.net.

The Coca-Cola system in India is the largest buyer of mango pulp for domestic consumption. It is also the largest domestic buyer of sugar.

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ACTIVE BOTTLING PLANTS IN INDIA

?Hindustan Coca-Cola Beverages Pvt Ltd operates

22 bottling plants some of which are located in

economically underdeveloped areas of the country.

?The Coca-Cola system also includes 23 franchise

operated plants

?It has 1 facility that manufactures concentrates or

beverage bases

Franchise owned bottling operations

Company owned bottling operations

Contract Packaging units

We use internal and external frameworks, standards and principles to guide our approach to corporate responsibility and our

progress toward helping to build sustainable communities. The frameworks relevant to our efforts on environmental

stewardship are mentioned below. In addition to these, there are other internal and external frameworks that guide our efforts

to corporate responsibility and some of those are discussed in the annexure at the end of this document.

Our Mission declares our purpose as a Company. It is an enduring source of inspiration and motivation, continually reminding

us of who we are, why we exist and what we can uniquely accomplish together. It serves as the

standard against which we weigh our actions and decisions.

– To refresh the world in body, mind and spirit

– To inspire moments of optimism through our brands and actions

– To create value and make a difference everywhere we engage

Our Vision guides every aspect of our business by describing what we need to accomplish in order

to continue achieving sustainable growth. When we established our vision, we defined specific

goals for each of our six areas of focus or the “6Ps”. These “6Ps” are the key areas that must be in

balance in order to achieve sustainability:

The Coca-Cola Management System (TCCMS) is the framework around which we co-ordinate and

guide our activities for continual improvement and excellence in execution. Throughout the years,

the management system reflects the stewardship of our people, partners, planet, portfolio and

profit. Environmental, Quality and Safety management are the key facets of the TCCMS. All the three

facets (i.e., Environment, Quality and Safety) of the TCCMS have congruence with the international

standards, viz, Environment (ISO 14001), Quality (ISO 9001) and Safety (OSHAS 18001).

Throughout The Coca-Cola Company we are committed to making the pursuit of environmental

excellence a priority in the operation of our business. As part of TCCMS, Environmental stewardship

is a guiding principle in our determination to be good corporate citizens. To manage environmental

responsibilities, the Coca-Cola Environmental Management System offers a simplified structure of

Environmental Management System Standards and environmental management requirements.

Environment Statement

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.

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FRAMEWORKS AND PRINCIPLES


ENVIRONMENT PERFORMANCE REPORT

Scope of the Report

Our water stewardship strategy is built on the needs of our business and the communities where we operate and is informed by a

comprehensive water risk analysis of the Coca-Cola system. Our livelihood depends on water, and for us, there is no question

about our commitment to leading in the development of solutions that enable us to use water sustainably in our business.

The Coca-Cola system in India has improved its water use efficiency (water usage ratio) by nearly 7 percent since 2004. Water

Usage Ratio is defined as the amount in litres of water used for the production of 1 litre of finished beverage. Our system follows a

policy of Reduce and Recycle to continuously improve its water usage within the plants. Over the years, we have introduced

several innovations and improvised on the plant processes to bring down the water usage ratio.

Water Stewardship Performance

One of the simple interventions that have been made at our bottling plants to optimize water usage efficiency is to reduce the nozzle diameter in the bottle washer for optimal rinse water usage. The bottle washer sprays water into the refillable glass bottle at high pressure thereby cleaning the bottles. By minimizing the nozzle diameter, we have enhanced the cleaning efficiency of the nozzle and reduced the overall fresh water usage.

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The information in this report is based on our Company data and data supplied to us by

our bottling partners. Charts and graphs depict average ratios for participating plants, as

well as estimated total system data. Numbers in charts and graphs have been minimally

rounded. Unless otherwise noted, performance data in the body of the report refers to

average ratios for participating plants.

The data reported in this document showcases a four year (2004-2007) progress on key

environment parameters such as Water Usage, Water Use Ratio (WUR), Energy usage,

Solid waste generation and solid waste recycling. These data sets are collected by our

bottling partners at respective units and uploaded to the global database known as Stewardship Data Warehouse (SDW). The

plausibility of the uploaded data and its variance over the data of previous years are validated on an annual basis by The Coca-

Cola Company through an independent third party.


The total annual water used by the Coca-Cola system in India shows a decline of 21.08%, 17.22% and 11.72% during 2005,

2006 and 2007 respectively in comparison to the total water used in 2004. In 2007 the total annual water used has gone up 6.6%

with reference to total water used during 2006 and this variation is due to a corresponding 6.5% increase in the production

volume in 2007 as compared to 2006.

Wastewater treatment – In our manufacturing plants, wastewater is a result of production processes, such as container-

washing systems, line lubrication and equipment cleaning. The generated wastewater is fully treated at the on-site Effluent

Treatment Plant (ETP) and this typically includes secondary treatment (including the collection of wastes, screening/settling of

solids, biological treatment to remove nutrients and disinfection and disposal) to meet The Coca-Cola Company and the Indian

Pollution Control Board (PCB) norms. 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 large number of units complies with “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 of the plant, such as toilet cleaning, floor wash etc which is in keeping with our

policy to Reduce water and use Recycled for secondary purposes within our plants.

The Coca-Cola Company is committed to ensure 100% compliance with regard to waste water treatment at all its bottling plants

across the world by 2010. Our global goal is to return all the water that we use for manufacturing processes to the environment at

a level that supports aquatic life and agriculture. In India, all our plants are already in compliance with this requirement on waste

water treatment.

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Water Use Total (KL)

5,615,879.64

4,431,996.00 4,648,981.00 4,957,680.84

0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

20042005

20062007

Water Usage Ratio3.91

3.74

3.663.66

3.5

20042005

20062007

3.55

3.6

3.65

3.7

3.75

3.8

3.85

3.9

3.95


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Water is critical to the existence of living species in the world. However,

freshwater resources are either dwindling or are not spread as evenly across the

globe. Over 1 billion people lack access to safe drinking water today. It is

estimated that by 2025, two-thirds of the world population is expected to live in

water-stressed areas. In India, the country has over 17 percent of the world's

population but less than 4 percent of the world's fresh water resources. Continued

usage and extraction of water is resulting in decline of per-capita availability of

water in India. Coca-Cola India believes that it can be a part of the solution on

water issues and therefore has undertaken the following projects in the area of

water conservation.

OUR WATER STEWARDSHIP INITIATIVES

Community Water Projects1. Rainwater Harvesting (RWH)

Recognizing the importance of water to Indian communities and for the Company's

own operations, the Coca-Cola system is partnering with the Central Ground Water

Authority (CGWA), State Ground Water Boards, NGOs and communities to combat

water scarcity and depleting groundwater levels with simple and effective

solutions. One of the methods used for ground water recharge is rainwater

harvesting (RWH). Rainwater harvesting is the process of collecting and storing

rain water and preventing its runoff, evaporation and seepage for its efficient

utilization and conservation. Harvesting helps use a large quantity of good quality

water which would otherwise go to waste. Harvesting is an age-old technique and

only requires a bore well and a row of soak pits or tanks concealed below the

ground. Open spaces, rooftops and ground can be used as catchment areas.

For the projects that the Coca-Cola India system undertakes, government officials and NGOs help identify priority areas and then

we collaborate with local resident welfare associations and communities to establish rainwater harvesting partnerships. NGO

specialists implement the projects and mobilize community members to ensure that local knowledge plays an important part in

planning and assessment, while the government authorities provide technical know-how.

Our 400 RWH projects are spread across 17 states and are in partnership with CGWA, State Ground Water Boards, Resident

Welfare Associations, Market Welfare Associations, Schools and Colleges, Industry Associations, NGOs and local communities.

These efforts are contributing to the Company's eventual target of being a 'net zero' user of groundwater by the end of 2009. By


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being a “net zero” user of groundwater, the Coca-Cola system in India will create a rainwater harvesting potential equivalent to

the amount of groundwater used for its operations in India. In effect, through rainwater harvesting, we will return as much

rainwater to the earth as the total amount of groundwater used for our operations in India


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At the end of 2007, the Coca-Cola system had created a rainwater harvesting potential equivalent to 75% of the groundwater used for its operations. The system has itself a target of reaching a “net zero” balance with respect to groundwater usage by the end of 2009. By being a “net zero” user of groundwater, the Coca-Cola system in India will create a rainwater harvesting potential equivalent to the amount of groundwater used for its operations in India.

2. Restoration of traditional water bodies

Historically, societies relied on natural or man-

made water bodies as their primary source of

fresh water. These water bodies stored rain water

while also working as a conduit to recharge the

aquifers. With the passage of time and advent of

modern systems of water distribution and storage,

most of these water bodies got neglected and are

now in ruins.

We believe that while we constantly need to find

new solutions for water resource management,

we also need to leverage the age-old wisdom and

avenues to conserve water. Revival of Bawaris (step wells) is one such means for water sustainability. In partnership with

numerous stakeholders, Coca-Cola India took up the challenge of reviving two Bawaris in Jaipur, Rajasthan (the Sarai Bawari

and Kale Hanuman ki Bawari at Amer near Jaipur on the Delhi – Jaipur Highway). In partnership with multiple stakeholders

including the local community and state government bodies, the Company restored the two Bawaris in Jaipur.

3. Construction of Check Dams and restoration of lakes and ponds

Check dams are an effective means of storing water as well as of ground water recharge. However, over time the buildup of silt in

the catchment areas results in the emergence of flat plains which no longer store water. In partnership with state government

and local communities, the Company has undertaken the reconstruction of check dams at Nandergul Village (Saroor Nagar), in

Andhra Pradesh, Kalahasti in Chittoor, Andhra Pradesh at Ramnagaram near Bangalore and at Wada near Mumbai.


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BEFORE AFTER

In addition to check dams, the Company is also actively supporting the restoration of lakes and ponds across the country. In

North India, the Company is partnering with the local community to restore the Sarang Pond at Sarnath and Lehartara Pond in the

city of Varanasi. In South India, the Company is partnering with the NGO PROCEED and the Department of Mines & Geology,

Government of Karnataka, to restore the Hosurkare lake at Bidadi near Bangalore. This lake has a catchment area of 3 sq. KMs

and has the potential to store 45000 cubic meters of water. In the Nidumukkala village at Guntur, Andhra Pradesh, the Company –

in partnership with Nidukummala Village Committee, Thadikonda Mandal Praja Parishad, Andhra Pradesh Ground Water

Department, Andhra Pradesh Irrigation Department and Nilagiri Foundation (an NGO) – has restored three ponds in the village.

These ponds have been interconnected and a pipeline laid from the Nagarjuna Sagar Canal to one of these ponds. The pipeline

now feeds these ponds and is proving to be of immense benefit to the local communities.

4. Agricultural water use efficiency projects

India is primarily an agrarian economy with

the majority of its people dependent upon

agriculture. Over 70 percent of the population

lives in villages. Agriculture is the main

occupation and is still mainly dependent upon

rainwater. Agriculture also uses more than 80

percent of the total available ground water. This

makes sustainable livelihood a challenge,

particularly in view of the growing threat of

freshwater crisis predicted by experts. Optimal

utilization of available rainwater and appropriate

usage of ground water thus become basic

requirements to support the farmers.

a. 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 Distt., Tamil Nadu (under Nanguneri Taluk), namely, Upoorni and Parparmalpuram.

The main objectives of this project were 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.

b. Drip Irrigation project – Public-Private-People partnership

Coca-Cola in India has joined hands with farmers and Krishi Vigyan Kendra (KVK – a government agency), Chomu to build a three-

way partnership to promote drip-irrigation for water efficient agriculture in Kaladera area. Drip irrigation, also known as trickle

irrigation or micro irrigation is an irrigation method which minimizes the use of water and fertilizer by allowing water to drip

slowly to the roots of plants, either onto the soil surface or directly onto the root zone, through a network of valves, pipes, tubing,

and emitters. The Company provides part funding to farmers to install the equipment while the government agency provides the

knowhow, training and insights to the farmers to carry out drip irrigation based farming. So far 27 drip-irrigation projects spread

over an area of 13.82 hectares have been installed and these have led to an estimated savings of 9,738 Kilolitres of water over

three cropping cycles.


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In late 2004, in response to the concerns of some of its students, The University of Michigan began conducting a review of The

Coca-Cola Company's India operations. The University and The Coca-Cola Company agreed that an independent assessment

would provide the information needed for the University, and that The Energy and Resources Institute (TERI), a New Delhi-based

international research organization, would conduct the assessment, guided by a Steering Committee comprising eminent

experts.

The University and The Coca-Cola Company also agreed that the credibility of this effort would be strengthened if a neutral

mediation and facilitation organization were called upon to facilitate the interactions between the Company and TERI. This

neutral group would also help the parties ensure that the appropriate protocols and procedures were in place that would

preserve and protect TERI's and the study's independence. The parties agreed that the Meridian Institute, an internationally

recognized neutral mediation organization based in the United States, would be the appropriate organization to fill that role.

While The Coca-Cola Company has its own rigorous environmental management system, we agreed to this additional

assessment to provide an independent perspective.

In January 2008, TERI released findings of an in-depth assessment of our Company's water resources management practices in

India. TERI conducted its assessment at six plants in India, including Company-owned and independently-owned bottling partner

facilities. In addition to an overall assessment of our water resource management practices, TERI's key tasks were to review and

evaluate our treatment processes; the quality of water in our products; our impact on groundwater supplies; and our efforts to

support India's water preservation efforts in the communities surrounding our plants.

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 Coca-Cola 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.

In the process, while TERI validated our compliance with regulations and standards, we have also gained greater insight and

perspective on our water resources management practices. This will allow us to go beyond compliance in the future, taking a

broader view as we continue to better understand our role in society and evolve our business to reflect that understanding. The

TERI assessment is an important part of that way forward.

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INDEPENDENT THIRD-PARTY ASSESSMENT

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. The detailed report, findings and recommendations of the

assessment can be found at www.teriin.org. As a result, the Company has been leading several efforts to improve operations

globally as well as in India.

Steps Coca-Cola India has taken to respond to specific recommendations include:

?We are placing a higher priority on water conservation and corporate responsibility in all activities, including the goal to

be a “net zero” user of groundwater in India by the end of 2009. By being a “net zero” user of groundwater, the Coca-Cola

system in India will create a rainwater harvesting potential equivalent to the amount of groundwater used for its

operations in India. In effect, through rainwater harvesting, we will return as much rainwater to the earth as the total

amount of groundwater used for our operations in India.

We also are supporting projects on drip irrigation in agriculture, and are making relevant interventions to improve the

efficiency and productivity of water used for irrigation. Drip irrigation is known to significantly reduce water

consumption.

?In March 2008, The Coca-Cola Company released guidelines for operating in water-stressed locations; bottling

facilities in India and across the world will follow these guidelines including for new acquisitions or major expansions

of its facilities.

?We 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

in India has identified sources of bacteriological presence in treated wastewater and has identified technologies to

ensure faecal coliform count within limits in treated wastewater.

?The Company has commissioned new scientific studies on groundwater/effluent to understand impact of plant 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 that embeds CSR objectives into

Business Unit managers' annual performance plans.

?As far as our operations in Kaladera, as the TERI report notes, TCCC is a relatively small user of water in Kaladera. The

plant taps far less than one percent of the area's available water. However, as a business that depends on water and has

deep expertise in water resource management, we believe we can continue to be a net positive contributor to water


Results and Recommendations

17

resource management in the area. The plant has already demonstrated that it is net water positive with respect to its own

operations from a watershed perspective and it has undertaken several initiatives to improve water use efficiency. In

Kaladera, the rainwater harvesting systems we have installed have the potential to recharge 15 times the amount of water the

plant uses currently for its operations, assuming normal rainfall (560 mm/year). Even in recent years when the rainfall has

been below average, actual recharge has been more than 5 times the water used for production of our beverages. Agriculture

remains the most significant user of water in the watershed. We believe that one way to respect all rights and claims to water

in the local area is to support efforts to help farmers use water more efficiently. Accordingly, we are exploring ways we can

contribute to more efficient use of water in irrigation. Specifically, we 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 we will expand that work.

More questions and answers on the third-party assessment by TERI is available online at

http://www.thecoca-colacompany.com


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SUSTAINABLE PACKAGING PERFORMANCE


We aim to be amongst the most

efficient users of consumer-

preferred packaging in the global

beverage industry and in India. This

begins in our package development

stage, where we work to use the

least amount of natural resources

necessary to protect product quality

and meet consumer needs.

One of the ways we conserve

natural resources is by “light

weighting” – taking weight and

material out of our packaging. Our packaging innovation teams are continually testing packages and looking for new ways to

decrease our raw material use while also reducing costs. In India, over the last 10 years, we have successfully reduced the

weight of our glass bottles used for packaging sparkling beverages by over 25 percent and that of our PET bottles by nearly 8

percent.

Reduce

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Most consumer goods depend on some form of packaging for transportation, display and shopper convenience. In food and

beverage products, packaging also provides important safety benefits, such as spoilage reduction and tamper resistance.

From an environmental perspective, a well-designed package actually helps to prevent waste by reducing breakage, maintaining

product quality and meeting functional needs of consumers. However, packaging can also have significant environmental

impacts related to natural resource consumption and waste disposal.

Our vision is to advance a packaging framework in which our packaging is no longer seen as waste, but instead as a valuable

resource for future use. To realize this “zero waste” vision, we are guided by a commitment to continuous improvement. In 2007,

we continued 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.

Another aspect of our package development

process is to work with the industry

associations and all others involved in the

recycling value chain to recover and recycle

packages after they are used. We work in

partnership with local communities to help

develop economically and environmentally

effective solutions tailored to meet their

specific needs. The majority of our packages

is 100 percent recyclable and among the

most recycled consumer packages in the

world. This is a result of our selection of

materials that have an established

economic value, justifying their collection

and reuse. In a bid to promote the recycling of PET packages, the Company periodically sources merchandise like T-shirts made

from recycled PET and distributes it to its employees such that they become ambassadors of the cause.

Recover and Recycle


In partnership with The Ocean Conservancy International and The Indian Coastguard, Coca-Cola in India undertook a coastal cleanup program on the International Coastal Clean Up Day 2008. Students, NGOs and the local community participated in the cleanup program in Vishakhaptnam and Chennai, cleaning more than three kilometers of the coastline.

20

RGB PET CAN Fountain Others

0.50%0.79%

42.45%

10.50%

45.76%

ENERGY MANAGEMENT & CLIMATE PROTECTION

At Coca-Cola we believe that climate change is a profound challenge that will require concerted action by government, business

and civil society. We also recognize that climate change may have long-term direct and indirect implications for our business and

supply chain. We have a role to play in working to use the best possible mix of energy sources while improving the energy

efficiency of our manufacturing and distribution processes.

Our climate protection efforts start inside the Company, with a combination of action and education in the three areas where we

have the biggest climate protection opportunity:

?Cold-drink equipment - Improving the efficiency of our coolers, vending machines and fountain equipment, and

reducing greenhouse gas emissions produced by this equipment.

?Facilities and bottling plants - Increasing our energy efficiency and productivity and reducing manufacturing

emissions.

?Transportation - Managing our distribution fleet to incorporate more fuel-efficient modes of product delivery.

Climate Protection

21


We are working continuously to reduce our total

energy consumption in all our manufacturing plants.

Energy usage is one of the key matrices monitored by

our plants as a part of environmental performance.

The higher energy consumption is warranted when

the production increases as well as energy based

engineering interventions increase. However the

above graph indicates that total annual energy use

shows a decrease of 17.41% & 8.24% during 2005 &

2006 respectively and an increase of 4.02% during

2007 with reference to total annual energy use during 2004. Compared to 2006, the total energy use has gone up by 13.36% when

the production volume during the same period has increased by 6.5%. Realizing the need to address this, the Coca-Cola System in

India has started using renewable energy source such as biomass briquettes in place of Furness 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.

Energy Management

-

1,055,196,205.48

871,436,191.60 968,231,405.06

1,097,633,656.50

200,000,000.00

400,000,000.00

650,000,000.00

800,000,000.00

1,000,000,000.00

1,200,000,000.00

20042005

20062007Total Energy Used (KWH)


With climate change most closely associated with burning fossil fuels, it surprises

many people to learn that a portion of our emissions of greenhouse gases comes

from the cooling equipment that keeps our beverage products cold. With an aim to

improve the energy efficiency of our cooling equipment to reduce the emissions, we

have developed a proprietary device called “energy management system (EMS).”

The EMS is a device which is fixed at the front bottom of a cooler that reduces energy

consumption of a cooler (approximately 35%) by allowing the temperature inside the

cooler to rise (between 7°C to 14°C) during periods when the outlet is closed and

maintains the correct cooler temperature (between 0°C and 7°C) during the active

hours of the outlet. The EMS manages this by detecting the people movement in-front

of the cooler through a sensor eye & through the operations of the cooler door

opening and closing. The unit is totally self managing and does not require any special

interference of the user. It can substantially reduce the number of service calls

whilst saving on average 35% energy (when compared with a 24hr running cooler

without EMS).

Additionally, the EMS facilitates longer life to the compressor, fans and lights in a

cooler, by protecting against High voltage (> 250V) & Low voltage (< 180V) supplies

and saves maintenance cost of the cooler owner. The cooling equipment having more

than 250 liters capacity that we buy now are 100% fitted with EMS which is also

mentioned on the cooler body (labels).

Cold-Drink Equipment

Achieving energy efficiency is a continuous process and we are consistently working on fixing the basics -- fixing leaks, insulating

pipes, reducing pressure and optimizing temperatures, as well as investing in efficient lighting, compressor optimization and

heat recovery. At some of our bottling plants, we have converted the conventional boilers into biomass-based briquette boilers

such that there are fewer emissions. Such conversions have already been carried out in five bottling facilities within the

Coca-Cola India system.

Facilities and bottling plants

22


23

As a product, beverages have an extensive presence in India and are widely distributed. Such a distribution system requires

efficient management of the distribution fleet to keep our carbon emission levels low. As a beginning and with a view to be more

environment-friendly, 60 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 in the event of

a spill (natural gas is lighter than air, and disperses quickly when released). CNG is made by compressing natural gas (which is

mainly composed of methane [CH4]), to less than 1% of its volume at standard atmospheric pressure.

Transportation

24


SOLID WASTE MANAGEMENT PERFORMANCE

Various types of solid wastes are generated in our plants. As a part of our environmental initiative most of the materials used are

recyclable. The various wastes generated by our 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.

We are committed to minimizing the discharge of waste

and its impacts on the environment, and to ensuring that

wastes are managed in an environmentally friendly and

safe manner. Therefore the system tracks and reports

all waste materials generated at the plant including

production wastes (hazardous and non-hazardous) and

wastewater treatment plant sludge. The solid waste

generation figures measured and reported also include

materials which are destined for recycling or recovery.

The recovery or recycling ratio is computed separately. Solid Waste Ratio (Gm/L)

21.9420.84

0

5

10

15

20

25

30

35

40

20042005

23.53

35.1

20062007

Solid Waste Generated (metric tonnes) and Solid waste Recycled or Recovered (metric tonnes)

The solid waste, generated during the manufacturing

process, could be hazardous or non-hazardous depending

on its chemical composition and is categorized as per the

local Pollution Control Board (PCB) norms. Sometimes, the

solid waste generation could increase steeply, as in the

year 2007, which is mainly due to glass culling initiatives

initiated by the Plants. Glass culling is a practice by the

company, to replace the old glass beverage bottles by new

ones. It is pertinent to note here that with the increase in

solid waste generation in 2007, the solid waste recovery

has also increased as the culled glass was disposed to

glass recyclers.

As per the company policy and respective Pollution Control Board requirements, solid wastes from the plants are safely disposed

of to a permitted waste disposal facility.

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

50,000.00

2004 2005 2006 2007

Solid waste generated (MTonnes)

Solid waste Recycled or recovered(MTonnes)

23,875.24 24,442.0626,661.99

44,552.50

20,460.58 21,461.6323,559.50

38,864.05

?Golden Peacock Global CSR Award for 2008 in recognition of the Company's water conservation/management practices

and community development initiatives

?Atul Singh, President and CEO, Coca-Cola India was conferred the distinguished fellowship by Institute of Directors

(IOD) for his outstanding business leadership and contribution to society

?Coca-Cola Bottling plant at Atmakuru, Andhra Pradesh received the Golden Peacock Award for water management and

conservation

?Coca-Cola Bottling Plant at Atmakuru, Andhra Pradesh received the CII National Award for Excellence in Water

Management 2008

?Coca-Cola India was recognized by the Cultural Council of the Kaladera Community in Rajasthan for outstanding

citizenship initiatives

AWARDS AND RECOGNITIONSThe following awards and recognitions received by the Coca-Cola system in India during the year 2008 is testimony to the

Company's efforts to achieve the highest standards of excellence in its practices and business operations.

25


Verification Statement (Independent Third party)

26


SGS India Pvt Ltd, has verified the Environment Performance Report, 2007 being published by Coca Cola India, Enkay Towers,

Udyog Vihar V, Gurgaon – 122016, Haryana on the basis of third party validated data provided for the following parameters:

1. Water use & Water use ratio;

2. Energy use & Energy use ratio;

3. Solid waste and Solid waste ratio; and

4. Packaging index.

The verification has been made as per the verification statement and the verification report.

Authorized by

Shivananda Shetty

Director – Environmental Services

June 29, 2009

SGS Accredited AffiliateAddress

Contact details www.sgs.com

VERIFICATION STATEMENT

?Coca-Cola India, Enkay Towers, Udyog Vihar V, Gurgaon – 122016, Haryana (hereinafter referred to as CCI), has commissioned SGS India Pvt Ltd, Gurgaon

(hereinafter referred to as SGS ) to provide an independent verification of annual environmental performance report for the year 2007 of all the bottling plants

operative in India for specified parameters on the basis of third party validated data provided by CCI.

Objective and Scope of Verification Process

The key objectives of the verification process included reviewing;

?Completeness of data provided;

?Annual variation in environment performance; and

?Effectiveness of data collection and data management system.

The scope of work for verification process included the reviewing of the completeness and validity of environment parameter such as water use & water use ratio,

energy use & energy use ratio, solid waste & solid waste ratio and packaging index for the year 2007 and comparison of same with the previous annual data up to

2004. Observations regarding the data management system were also made.

Criteria of Auditing

SGS has developed a set of protocols for the verification study based on internationally accepted current best practice guidance and standards for environment

quality and management system.

SGS has not been involved in the development of CCI's environment reports, environment programs, data collection and management system. In case of

discrepancy observed in the data provided by CCI, we engaged with CCI to explain and same was incorporated in the verification report for conclusion. The

verification statement provided herein by SGS is not intended to be used as advice or as the basis for any decisions, including, without limitation, financial or

Verification Statement (Independent Third party)

27


investment decisions.

The data, on the basis of which verification report is prepared, are the responsibility of the management of CCI. SGS has not been involved in the process of data collection and

compilation of any of the data included in the verification report. Our responsibility is to express an opinion on the data within the scope of verification set out below.

Statement of Independence and Competence

The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management

systems and service certification; quality, environmental, social and ethical auditing and training; environmental, social sustainability report assurance. SGS India affirms our

independence from CCI, being free from bias and conflict of interest with organization, its subsidiaries and stockholders. The verification team was assembled based on

knowledge, experience and qualification for this assignment.

Verification Method

As a first step, CCI has provided the following to accomplish the task:

?Explanation and demonstration of adopted data management system such as Picasso and Compass and validation of environment data by third party;

?Steward Data warehouse – Release 1 (SDW R1)2009 – document adopted for calculation and reporting system

?Environment data for all operative plant for specified parameter from 2004 to 2007

The verification process included the following:

Data Collection Process

?Understanding the data collection, validation and management system adopted;

?Checking the data, information and documents, which have been made available as per procedures defined in Steward Data warehouse – Release 1 (SDW R1)2009; and

?Assessing the status of adequacy of data with respect to procedures defined in documents.

Completeness of Environment Data

?Reviewing the plant wise environment data for given parameters from the year 2004 to 2007 for all bottling plants operative in India.

?Analyzing the data for all bottling plants which included calculating, recalculating and comparing the data with previous years;

?Verifying the data by cross-verification, data interpretation, adherence to the principle of completeness and follow up telephone calls & meetings for clarifying

discrepancies.

Preparation of Verification Report

?Preparation of verification report for the specified parameters and comparing with the performance during previous years.

Conclusion

On the basis of the methodology described and the verification work performed; SGS did not identify any issue related that can threaten the accuracy and completeness of

environment performance report 2007 except for the following:

1. Data for some bottling plants as a whole and for individual specified parameter in case of some plants were missing in the data management system;

2. Variation as evident in energy performance and solid waste generation needs attention; and

3. Supportive document for the basis for data calculation in case of packaging index was not provided.

Note: This Statement is issued, on behalf of CCI, by SGS India Pvt. Ltd. Gurgaon (“SGS”) under its General Conditions for Environment Consultancy Services available at

http://www.sgs.com/terms_and_conditions.htm on the basis of findings recorded hereon are based upon an verification audit performed by SGS. A full copy of this statement,

the findings and the supporting documents may be consulted at Coca Cola India, Enkay Towers, Udyog Vihar V, Gurgaon, Haryana. This Statement does not relieve CCI from

compliance with any bylaws, federal, national or regional acts and regulations or with any guidelines issued pursuant to such regulations. Stipulations to the contrary are not

binding on SGS and SGS shall have no responsibility vis-à-vis parties other than its Client.


ANNEXURES

The sustainability of our business is inextricably linked to the sustainability of the communities in which we operate. Our

presence in millions of communities, touching billions of lives each day through our brands and programs means we have a

responsibility and an opportunity to make a positive difference.

In our effort to help build sustainable communities and act as a responsible corporate citizen, we use a number of internal and

external frameworks, standards & principles and stakeholder inputs to guide our approach to corporate responsibility and our

progress toward helping to build sustainable communities. Some of these are mentioned below.

Corporate Governance and EthicsCoca-Cola India operations are fully integrated into the governance structure of The Coca-Cola Company, including two

important codes:

(a) The Code of Business Conduct outlines expectations for employees to comply with the law and act ethically in all

matters. The Code remains applicable to all employees of The Coca-Cola Company and its majority-owned subsidiaries. More

details on the code can be accessed at our corporate website http://www.thecoca-colacompany.com/ourcompany/

business_conduct.html

(b) The Code of Business Conduct for Suppliers seeks to extend and clarify similar ethical expectations to our suppliers.

The Supplier Code became effective in February 2008. Both the Code of Business Conduct and the Supplier Code highlight the

EthicsLine reporting service, through which individuals can confidentially ask questions or report concerns to an independent

administering party. More details on the Code of Business Conduct for Suppliers can be accessed at

http://www.thecoca-colacompany.com/citizenship/pdf/COBC_Suppliers.pdf

More information is available online at www.thecoca-colacompany.com.

Workplace RightsIn 2007, The Coca-Cola Company implemented our

Workplace Rights Policy and Human Rights Statement.

These affirm our commitment to fostering dignity, fairness

and respect for our employees at work and in the

communities in which we operate. Both the Policy and

Statement codify our efforts to uphold the Universal

Declaration of Human Rights, the International Labor

Organization's (ILO) Declaration on Fundamental

Internal and External Frameworks

28

29


Principles and Rights at Work and the United Nations Global Compact. Our Workplace Rights Policy contains our principles

on freedom of association, forced labor, child labor, discrimination, work hours and wages, safe and healthy workplaces,

workplace security and community and stakeholder engagement. It applies to all operations of The Coca-Cola Company and its

majority-owned entities, guarantees employees the right to confidentially report ethics issues and violations and is enforceable

through assessments by an external auditor. More details on the Global Workplace Rights Policy is available online at

http://www.thecoca-colacompany.com/citizenship/workplace_rights_ policy.html

Our Supplier Guiding Principles (SGP) are the foundation of our commitment to promote the respect of labor rights

among our business partners. The SGP are a requirement for all direct suppliers of goods and services to the Coca-Cola India

System and all suppliers of materials that are specifically authorized by The Coca-Cola Company for use by our suppliers. The SGP

are included or where necessary, incorporated by reference in all supplier contracts, and many suppliers receive training to

facilitate implementation. Global policy requires that suppliers be assessed for compliance at least once every three years by an

authorized external auditing agency. If non-compliance is found, we provide a timeframe and offer expertise for corrective action

by the facility. We also require follow-up assessments of non-compliant facilities as frequently as every six months. Suppliers

have offered positive feedback on the SGP program, including the observation that it supports the transition of their Human

Resources teams from an administrative function to a professional department. Following the implementation of the new Labor

Contract Law, we've also received feedback on the value of offering support and education regarding the relevant laws and

compliance. We do recognize that some suppliers may view the audit process as time- and resource-intensive. To alleviate

inefficiencies for suppliers who sell to ours and other companies, we are willing to review and accept results of third-party audits

completed for other companies with comparable supplier codes, and we encourage our suppliers to share our audit results with

their other customers. More details on Supplier Guiding Principles are available on

http://www.thecoca-colacompany.com/citizenship/supplier_guiding_principles.html

30


CITIZENSHIP@COCA-COLA

Citizenship@Coca-Cola provides a framework for how we conduct our business in four broad areas of: workplace, marketplace,

environment and community. Within this broad framework, we have identified several key areas that are of concern to both our

business and society. In these areas, we believe we have a special opportunity and capability to help – offering our expertise,

local knowledge and global networks in support of collaborative efforts to find sustainable solutions.

CSR Vision For India Business Unit To be a trusted partner contributing to the social, economic and environmental

progress.

MISSION To socially and economically empower communities around our operations, by creating an enabling environment

and through sustainable projects that lead to the betterment of communities.

?We will work towards attaining the most efficient and optimum usage of water

?We will endeavor to achieve a Net Zero balance with respect to groundwater usage i.e. strive to recharge ground water

equivalent to the same used in our operations.

?We will strive to facilitate access to clean drinking water to the communities around our plants and support protection of

watersheds in such areas.

?We will have measurable goals to conserve the environment in collaboration with local communities.

?We will endeavor to recycle all our solid wastes materials including PET articles

?We will strive to conserve energy and will comply with national and applicable international standards/practices.

?We will dispose off and manage bio solids as per law of the land and prevailing regulations, to minimize the impact on the

environment and adopt environmentally friendly practices.

?We will attempt to establish partnership with Government, NGOs and communities and other relevant agencies, to launch

and manage CSR projects in communities around our operations.

?We will work closely with our bottling partners and share resources - technical, human and financial - for CSR activities

amongst local communities.

?We stand committed towards our associates, their families and the communities around our operations, to improve their

quality of life as a whole through health, education, and water management programs.

?We will promote healthy and active lifestyle in the workplace and amongst local communities.

CSR Guidelines for Coca-Cola India

31


Ours is a Company committed to achieving the highest standards of governance, and we continuously engage with our

stakeholders, seeking their inputs to further refine our strategy and operations. As part of our commitment, Coca-Cola India

has constituted three boards:

India Advisory Board – The India Advisory Board guides our Company on various issues including future strategies,

corporate citizenship, and corporate governance. Mr. Naresh Chandra, former Ambassador of India to the United States,

who also headed the Government of India committee on Corporate Governance, is the Chairman of the Board. The Advisory

Board meets three to four times a year and reviews the performance of the Company. It also guides our Company's

management on various operational and environment-related matters to help us formulate short- and long-term strategies.

Advisory Council on Environment & Sustainability – The Environment Advisory Council (EAC) guides our company

to preserve, protect and enhance the environment and natural resources. The EAC also helps to ensure that our Company uses

our resources and capabilities to provide active leadership on environment-related matters relevant to its business. The

Council is chaired by General V.P. Malik (Retd), Former Chief of Indian Army, who has also been a member of the National

Security Advisory Board and Honorary Advisor to the Centre for Policy Research, New Delhi.

Health and Wellness Advisory Council – We believe that our industry has a role to play in helping Indian consumers'

lead healthier lives. Coca-Cola is committed to developing and launching a portfolio of products that enable the Indian

consumer to lead healthier lives. The Health and Wellness Advisory Council (H&WAC) shares this belief and guides and

assists our Company to (a) identify and highlight the evolving nutritional needs of Indian Consumers (b) suggest viable

health & wellness solutions for beverage applications and (c) support consumer education programs that promote a

healthy and active lifestyle.

More details on the three boards and their members are available on our website

http://www.coca-colaindia.com/aboutus/ aboutus_cgovernance.aspx

?We will incorporate our social responsibility as a part of the Company’s business plan.

?We will promote and encourage employee volunteerism in community work.

?We shall commit appropriate funds as a part of our annual business plan for CSR initiatives.

Advisory Boards


Coca-Cola and Coke are the registered trademarks of The Coca-Cola Company.

For any feedback and further information, please write to:

This report is published by Coca-Cola India Pvt. Ltd. for private circulation.

email: [email protected] India, Enkay Towers, Udyog Vihar, Gurgaon-122 018, Haryana.For more information on our operations, please visit our website www.coca-colaindia.com.

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