product water footprint assessments
TRANSCRIPT
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Presented by:
Practical aPPlication in corPorate Water steWardshiP
sePtember 2010
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Watercoversabout70%oftheEarthssurface.
Mostofthiswaterisundrinkablebecause97%issaltwater.
Only1%ofwaterisfoundinriversandstreams.
Approximately1billionpeopledonothaveaccesstosafedrinkingwater.
About6,000childrendieeverydayfromdiseasesassociatedwithlackofaccessto
safedrinkingwater.
Mostofthecitieswherelargenumbersofpeoplelivewithouttapsandtoilets
haveplentifulwatersupplies.
Freshwatershandotheraquaticanimalsareconsiderablymoreimperiledthan
thosethatliveonlandorintheoceans.
Ittakes1,000timesmorewatertogrowfoodforanindividualthantomeetthatpersonsneedsfordrinking.
Irrigationincreasesyieldsformostcropsby100to400%.
About70%offreshwaterwithdrawalsareusedforirrigation.
Waterwithdrawalsforagriculture,assumingnogainsinefciencyofuse,are
expectedtoincreaseby45%by2030.
TheEarthswaterisnite,butitisinnitelyrenewable.
Water = LieBut did you know
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ACKNOWLEDGEMENTS
ThisreportistheresultofcollaborationbetweenThe Nature ConservancandThe Coca-Cola Compan.
Italsorepresentstheproductofsignicantcontributionsofindividualsfromanumberofotherorganizations:
TheWater Footprint Networkprovidedsupportforpilotstudyeffortsandguidancethrough
publicationoftheWater Footprint Manual.
Coca-Cola Enterprises Inc. (CCE) wasakeypartnerfortheCoca-Colawaterfootprintpilot
study,providingsignicantdataandotherresources.
ResearchersattheTwente Water Centre, Universit o Twente, The Netherlands
conductedthetechnicalworkfortheCoca-Colawaterfootprintpilotstudy.
Denkstatt,incooperationwiththe Institute or Water Qualit, Resources and Waste
Management at the Vienna Universit o Technolog,conductedthebeetsugarwater
footprintpilotstudy.
LimnoTechconductedtheorangejuicewaterfootprintpilotstudiesandcontributedtechnical
expertiseandwritingsupportforthisreport.
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BenjaminFranklin
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TA B L E O F C O N T E N T S
ExECUTIVE SUMMARy ES-1
1.0 INTRODUCTION 1
1.1 ObjectivesofthisReport 2
1.2 GlobalFreshwaterChallenges 3
1.3 TheNatureConservancysFreshwaterConservationGoals 5
1.4 TheCoca-ColaCompanysWaterStewardshipGoals 6 1.5 TheWaterFootprintConcept 8
2.0 PILOT STUDIES 11
2.1 WaterFootprintof0.5LiterCoca-ColainPETBottle 11
2.2 WaterFootprintofBeetSugarSuppliedto theCoca-ColaSystemsEuropeanBottlingPlants 15
2.3 WaterFootprintofOrangeJuiceProducts 20
3.0 PERSPECTIVES 25
3.1 SettingGoalsandScope 25
3.2 WaterFootprintAccounting 27
3.3 WaterFootprintSustainabilityAssessment 30
3.4 WaterFootprintResponseFormulation 32
4.0 LOOKING FORWARD 37
4.1 TheCoca-ColaCompanysWaterStewardship andSustainableAgricultureStrategy 37
4.2 TheNatureConservancysWaterStewardship 37
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EXECUTIVESUM
MARY
Whenproperlymanaged,evenlargevolumesofwaterusecanbesustainableinlocationswhere
theresourceissufcienttosupporttheuse.Theimpactsofawateruseneedtobeassessedinthe
contextofallwaterusesinthewatershedinordertodenecumulativeimpacts,sharedrisksand
appropriateresponsestrategies.
Traditionally,calculationsofhowmuchwaterabusinessuseshavebeenbasedonthequantities
useddirectlyinproducingthatcompanysproducts.Inrecentyears,businesseshavebeenencouragedtolookattheirwaterusemorecomprehensivelyandinvestigatethewaterused
throughouttheirsupplychains.TogetherwithTheNatureConservancy(theConservancy),
TheCoca-ColaCompany(theCompany)hasbeenoneofthecompaniesleadingthewayon
developingawaterfootprintassessmentmethodologythroughactiveparticipationintheWater
FootprintNetwork.
Aproductwaterfootprintisthetotalvolumeoffreshwaterconsumed,directlyandindirectly,
toproduceaproduct.Afullwaterfootprintassessmentconsiderstheimpactsofthiswater
consumption,aswellasappropriateresponsestrategiestominimizethoseimpacts.
Waterfootprintingandcarbonfootprintingareverydifferentassessments.Withcarbonfootprints,
onecancomparesimilarproducts(ifthesameboundariesandmethodologyareused)knowingthatlowercarbon(orzerocarbon)isbetter.Ontheotherhand,waterfootprintshelpidentifywhere
waterisusedintheproductionofaproductandwhattypeofwaterisused.Waterislocalandthus
waterfootprintnumbersmustbeconsideredinthecontextofthelocalwatershed.Thenumber
associatedwithawaterfootprintisnottheendgame,butratherastartingpointtoaddressingthe
sustainabilityofthewatersource.
Thisreport,preparedbyTheNatureConservancyandTheCoca-ColaCompany,examinestheconcept
ofproductwaterfootprintinganditspracticalapplicationforaddressingthegrowingchallenges
relatedtofreshwater.ThreewaterfootprintassessmentswereconductedfortheCompany:
Coca-Cola1ina0.5literPETbottleproducedbyCoca-ColaEnterprisesInc.(CCE)
intheNetherlands;
BeetsugarsuppliedtoCoca-ColabottlingplantsinEurope;and
MinuteMaidorangejuiceandSimplyOrangeproducedfortheNorthAmericanmarket.
Waterfootprintassessmentscanbehelpfulinsupportingcorporatewaterstewardshipefforts
byprovidingatooltomeasureandunderstandwaterusethroughoutthesupplychain.Theycan
ES-1
1Coca-Colareferstotheproductbrand.
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providevaluableinsightintothelargestcomponentsandlocations
ofwaterconsumption,thepotentialeffectsonlocalwatersheds,and
futurewateravailabilitytoservethecollectiveneedsofcommunities,
nature,producers,suppliersandcompanies.Inthisway,waterfootprint
assessmentscancontributetoanincreasedunderstandingofabusiness
water-relatedrisksandvulnerabilities.
Generalobservationsandimplicationsforproductwaterfootprintingfollow:
Thevalueofproductwaterfootprintingisitsabilitytodisaggregatewater
usebycomponent(i.e.,directandindirectuse;green,blueandgrey).Itisimportantto
keepthecomponentsofawaterfootprintseparatesothatimpactscanbeassessedinthecontextofthelocalwatershedswherethewaterisbeingsourced.
Thelargestportionoftheproductwaterfootprintsassessedaspartofthesepilot
studiescomefromtheeld,notthefactory.TheCoca-ColaCompanyseessignicant
opportunitytoengagemoredirectlywithitsagriculturalsuppliersinadvancing
sustainablewateruse.Guidedinpartbytheseassessments,theCompanyisfocusing
itsinitialeffortsonsustainablesourcingofsugarcaneandoranges.
Whiletheoperationalwaterfootprintassociatedwithproductionwasfoundto
beaverysmallpercentageofthetotalwaterfootprint,itremainsimportantfor
businessestomanagetheirdirect/operationalimpactsonlocalwaterresources.This
isespeciallytruewithregardtowastewatertreatment.
Toreallygainanunderstandingofwhetherwateruseishavinganimpact,thevolume
ofwaterconsumptionmustbeconsideredwiththecumulativeeffectofallusesof
thesharedwaterresource.
Whilewaterfootprintsareanexcellenttoolforcompaniestobegintounderstand
theirwateruse,caremustbetakenwhencommunicatingaboutwaterfootprint
assessments.Numericwaterfootprintsonlabelsdonotprovideinformationneeded
tomakeinformedchoicesamongproducts.
WaterfootprintingishelpingTheCoca-ColaCompanyreneitsapproachtoglobalwater
stewardship.Thepilotstudieshaveveriedtheimportanceofexaminingdirectandindirectwater
useseparately.TheCompanyisfocusingrstonoperationalwaterusebytakingactiontousewatermoreefcientlyandtreatallmanufacturingwastewater.Thestudiesalsoafrmedthe
Companyseffortstounderstandthehealthofwatershedseverywhereitoperates.Importantly,
waterfootprintingprovidescompellingsupportfortheneedtoengagemoredirectlywithsuppliers,
governmentsandotherstakeholdersonresponsiblewaterstewardship.
ES-2
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EmperorYuofChina,1600B.C.
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2Hoekstra,ArjenY.,A.Chapagain,M.Aldaya,andM.Mekonnen.2009.Water Footprint Manual;StateoftheArt2009.PublishedbytheWaterFootprintNetwork.3www.waterfootprint.org4TheCoca-ColasystemreferstobothTheCoca-ColaCompany(alsoreferredtoastheCompanyinthisreport)anditsmorethan300bottlingpartners.5LimnoTechandTheNatureConservancy.2010.QuantifyingWatershedRestorationBenetsinCommunityWaterPartnershipProjects.
Waterfootprintingisayoungscience,andthemethodsforcalculatingwaterfootprintsareevolvingthrough
theeffortsoftheWaterFootprintNetwork(WFN)3andvariousotherinitiatives.TheNatureConservancy
andTheCoca-ColaCompanyareactivelyengagedineffortstotestthepracticalapplicationofthewater
footprintmethodologyandexploreopportunitiesforimprovement.Bothorganizationshaveengagedin
separateinitiativesrelatedtowaterstewardshipandwaterfootprintingandhavecollaboratedonprojects
ofmutualinterest.
Overthepasttwoyears,theCoca-Colasystem4hasundertakenthreewaterfootprintpilotstudiestoassess
thepracticalapplicationofthemethodstoitsproducts.TogetherwithTheNatureConservancyandthe
consultingrmLimnoTech,theCoca-Colasystemalsohasbeenexploringandquantifyingthebenetsof
watershedrestorationactionstorestoreandsustainadequatewatersuppliesforthefullrangeofbenecial
uses.5Becausewater-relatedimpactsarelocalinnature,effortstoreduceoreliminateadverseimpactsare
bestimplementedinthewatershedsinwhichtheimpactsareoccurring.
TheNatureConservancyisdrawntothiscollaborationbecauseitiscommittedtohelpingbuildsolutionsto
theworldswaterproblemssotherewillalwaysbeenoughforpeopleandnature.Helpingcorporationsnd
betterandmoreresponsiblewaysofusingwaterisanessentialsteponthepathwaytowatersustainability.
TwosimplefactsdriveTheNatureConservancysinterest:
Tremendousopportunitiesexisttoimprovethewaywaterisusedandmanaged,andtherebyalleviatewaterscarcityproblemsthataffectbothpeopleandnature.Fosteringsuchimprovements
isahighpriorityfortheConservancy,becauseunsustainablewateruseisaleadingcauseof
declinesinfreshwaterbiodiversity.
Corporationscanprovideleadershipinimplementingsustainablewaterpractices.Theseimproved
waterpracticesmakegoodsenseforbusinessesandcanbringsubstantialbenetstofreshwater
ecosystems.
TheCompanyisdrawntothiscollaborationbecauseitrecognizesthatengagingexternalpartnersis
essentialtoitscommitmenttohaveapositiveimpactonthewaterchallengesfacingcommunitiesand
nature.TheConservancybringsfocusedexpertiseinfreshwaterconservationscienceandanin-depth
understandingoftheinterrelationshipsbetweenhealthyecosystemsandthecommunitiestheysustain.
Throughthecollaboration,bothorganizationsareabletoleveragetheirstrengthstoaddresswater
challengeslocally,ataglobalscale.
People use lots o water or drinking, cooking and washing, but even more or
producing things such as ood, paper, cotton clothes, etc. The water ootprint is
an indicator o water use that looks at both direct and indirect water use o a
consumer or producer. The water ootprint o an individual, communit or business
is defned as the total volume o reshwater that is used to produce the goods and
services consumed b the individual or communit or produced b the business.
Water Footprint Manual: State o the Art 2009 2
1.
0
INTRO
DUCTION
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1.1 OBJECTIVES OF THIS REPORT
Thisreportwaspreparedforwaterresourcemanagers,waterfootprintpractitioners,partnersoftheWaterFootprintNetworkandothersinterestedinhowwaterfootprintingcanhelpinformacompanyswater
stewardshipprogram.Thepurposeistosharelessonslearnedandobservationsrelatedtowaterfootprint
assessmentsandtheirpracticalapplication.TheNatureConservancyandTheCoca-ColaCompanyhopethat
theinformationsharedinthisdocumentwillmakeapositivecontributiontotheongoingdevelopmentofthe
waterfootprintassessmentmethodologyanditsapplication.
2
Maps such as this one show
the degree o stress or
dierent regions based on the
ratio o water use to water
availability (water replenished
naturally by precipitation
and snow melt). Water stress
indices are calculated in
dierent ways, as discussed
later in this report.
Degree o Water StressbyFreshwaterEcoregion
ex
hg
m
lw
m w u
U
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1.2 GLOBAL FRESHWATER CHALLENGES
Wateristhecoreofourbeing.Two-thirdsofthehumanbodyismadeupofwater,andwemustcontinuallyreplenishit.Analogoustolosingoilinanautomobile,beingdownonlyafewquartsofwatercanbefatal.
Butittakesalotmorethandrinkingwatertokeepushealthy.Weneedwaterforcookingandbathing.We
needwatertogrowfoodandgenerateelectricity,toproducetheclothesonourbacksandthecountless
othergoodsweuseinourdailylives.
Therewouldbeenoughwatertosupportallofhumanity,nowandfordecadestocome,ifitwereevenly
distributedaroundtheglobeanddeliveredfromtheskiesataconstantrate.Ataglobalscale,weconsume
lessthan10%ofallthewaterthatreplenishesrivers,lakesandaquiferseachyear.
Map fromTheAtlasofGlobalConservation (University of California Press, 2010).
For more information, please go to: The Nature Conservancy, www.nature.org/atlas.
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Butalltoooften,raincomesasadelugeornotatall,makingitscaptureandstorageelusive.Italsois
notdistributedevenly.TheAtacamaDesertinnorthernChilemaygoformorethan20yearswithoutrain,
whereasMt.WaialealeonKauaiintheHawaiianIslandsaveragesmorethan12metersofrainayear.
Perhapsmostimportantly,thegrowthofourglobalpopulationhasnotfollowedtherain.
Thesefactsoflifeexplainthepatchinessofwaterscarcityandabundance.Today,nearly1billionpeople
lackaccesstocleanwater.Ifcurrentwaterconsumptionpatternscontinue,two-thirdsoftheworlds
populationwillliveinwater-stressedconditionsby2025.
Thehighlyvariabletapestryofwaterscarcityandtheconicts,impactsandrisksthatderivefromitmust
ultimatelybeaddressedinlocalwatersheds.Governancepoliciesatvariousgeopoliticallevelscancertainly
inuencehowwaterisused,butthegreatspatialvariabilityinwateravailabilityanduse,alongwith
otherinuencesonhydrologicsystems,includinglocallanduse,demandthatanyassessmentofpotentialimpacts,risksandsustainabilityofwaterusebeframedbythephysicalboundsofthewatershed.
ThisexplainstherecenttrendwithintheWaterFootprintNetworktowardafocusonevaluatingthe
consequencesofwaterfootprintsinlocalwatersheds.Ongoingcalculationsofthewaterfootprintsof
individualproductsorwholenationshaveincreasedawarenessthatwaterisconsumedthroughoutthe
supplychainintheproductionofallconsumergoods.Thisinformationwillcontinuetoserveanimportant
roleininformingpublicpolicyaroundwateruseandmanagement.Withinthecorporateworld,water
footprintsenableagreaterunderstandingofthevolumeofwaterembeddedinproducts,thepotential
effectsonlocalwatershedscausedbythewateruseandtheprobabilitiesoffuturewateravailability
toservethecollectiveneedsofthecompany,communitiesandnature.Notunderstandingthecollective
impactsofwateruseonthelocalwatershedscanincreaseriskstothebusiness.Asdiscussedlaterinthisreport,boththeConservancyandtheCompanyhaveembracedandcontinuetosupportthisimportant
evolutioninwaterfootprinting.
Fromacorporateperspective,growingwaterscarcityandtheneedtousewaterinbusinessoperationsand
supplychainsposerisksofvarioustypes.Thesebusinessriskscanbeviewedfromtwoperspectives:one
looksatupstreamrisks,andtheotherfocusesondownstreamrisks.
4
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Upstreambusinessrisksaregenerallycenteredonthequestionofwhetherornotacompanycanexpect
tohavesufcientsuppliesofcleanwaterinthefuturetosupportitsbusiness.Thisareaofriskcanbe
inuencedbyincreasingcompetitionforwaterresources,growingwaterscarcity,drought,climatechange,
watersourcecontamination,infrastructurefailure,poorlymanagedwaterallocationsystems,ineffective
publicsectormanagementcapacity,insufcientwaterresourcemanagementpolicyandotherfactors.
Downstreambusinessrisksstemfromthefactthatacompanyswateruseandwastewatertreatment
practicesmayimpactotherwaterusersandstakeholders.Water-relatedrisksmustbeaddressedwithinthecontextofthelocalwatersheds.Itisimportantto
considertheimpactofacompanyswateruseinconjunctionwiththeimpactsfromallwaterusersinthe
watershed,asimpactsarecumulative.Theriskofwaterscarcityand/orpoorqualityisnotonlyabusiness
risk,butarisksharedwiththecommunityandotherusers.Efciencyimprovementsareimportant,butthe
mostappropriateresponseactionsmaynotalwaysinvolvereductionofthewaterfootprint(sometimesa
reductionofawaterfootprintisnotpossible).Inmanycases,policyandregulatoryengagementtosupport
improvedmanagementofthesharedresourcemaybeamoreappropriateresponse.
Whenwaterresourcesareadverselyaffectedbythecumulativeimpactsfrommultipleuses,whetherthose
impactsarearesultofacompanysuse,realorperceived,itcanaffectthatcompanyssociallicenseto
operate.Italsomaytriggerregulatoryresponsesfromgovernments.Thesesocialandpoliticalreactionscanleadtoincreasedwateracquisitionandtreatmentcosts,reducedwatersupply,morestringentwastewater
treatmentrequirements,riskierinfrastructureplanningandcapitalinvestmentsandpotentialreputation
damage.Inrarecases,thebusinessmaybeshutdownbythelocalgovernmentormayotherwisenolonger
beviableandvoluntarilyshutdown.
TheConservancyandtheCompanyhavebeencollaboratingonanexplorationofvariousapproachesand
toolsforassessingandmanagingwater-relatedrisk.Wearelearningaswego.Thisreportsummarizes
someofourearlyndings.
1.3 THE NATURE CONSERVANCyS FRESHWATER CONSERVATION GOALSTheNatureConservancyisaninternationalnon-governmentalorganizationdedicatedtotheconservationof
biologicaldiversity.TheConservancysmissionistopreservetheplants,animalsandnaturalcommunities
thatrepresentthediversityoflifeonEarthbyprotectingthelandsandwaterstheyneedtosurvive.The
Conservancyson-the-groundconservationworkiscarriedoutinall50statesintheU.S.andinmorethan30
othercountries,anditissupportedbyapproximatelyonemillionindividualmembers.TheNatureConservancy
hasprotectedmorethan47millionhectaresoflandandhundredsofriversandlakesaroundtheworld.
WhiletheConservancysmissionisfocusedonsustainingtheEarthsdiversityofplantsandanimals,
theorganizationsbroadercontributiontosocietyisintheprotectionofthelifesupportsystemsofour
planetwecannotprotectthediversityoflifeonthisplanet,includinghumanlife,withoutprotecting
theecosystemsthatsustainusall.Naturalecosystemsprovidehumanitywithcleanwater,foodandber.
Naturalresourcesderivedfromecosystemssupportmajorsectorsofoureconomy,whetherintheformof
sheriesthatsustaincoastalcommunitiesorthroughtourismeconomiesthatrelysoheavilyuponnature-
basedrecreation.Healthynaturalecosystemsperformanarrayofvaluableserviceswithsubstantial
economicvalues,includingpurifyingourwatersupplies,sequesteringcarbonandhelpingtoregulatethe
climateandhydrologiccyclesofourplanet.
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Throughitsworkonmorethan600freshwaterprojectsaroundtheworld,theConservancyhaslearned
whatittakestomakeriversandlakeshealthyandkeepthemhealthy.Theorganizationhasdeeprootsin
communitiesaroundtheworld,bringingresources,expertiseandtoolsthatempowerpeopletoprotect
watersthatsustainfamilies,livelihoodsandwaysoflife.Especiallyfortheworldspoor,partneringwith
themtopreservetheirnaturalsourcesofwater,foodandothernecessitieshelpspreservetheircultures,
theireconomicpotentialandtheirpowerofself-determination.Someofthesefreshwaterprojectsfocus
oniconicwatersthatarethelifebloodofnations,liketheGreatLakesandYangtzeRiver.Somearelesserknown,yetarehubsofinnovation,likethePenobscotRiverinMaine,whichisaprovinggroundforsolutions
thatcanaccelerateandimproveprotectionofriversandlakesaroundtheworld.
TheConservancyunderstandsthattoreachitsgoals,theorganizationmustalsoequippeoplewithbetter
waystousethewaterresourcesnaturegivesus.DoingsobenetsnotonlytheConservancysfreshwater
projects,italsocreatesaripple-effectthatbenetscountlessotherriversandlakesaroundtheworld.
Therefore,akeyaspectoftheConservancysworkisgivingleadersingovernmentandbusinesspragmatic
alternativestowastefulanddestructivewaysofusingriversandlakes.TheConservancyscommitmentto
theadvancementofwaterfootprintingsupportstheseobjectives.
Throughitsworkinwatershedsaroundtheworldandcollaborationswithgovernments,corporationsand
localcommunities,theConservancyexpectsthatby2015,itwillbringenhancedprotectionandrestorationtomorethan1.5millionkilometersofriverandimprovedwater,foodandelectricitysecuritytomorethan
200millionpeople.
1.4 THE COCA-COLA COMPANyS WATER STEWARDSHIP GOALS
WaterisakeyingredientinalloftheCompanysproducts.ItisessentialtotheCompanysoperations
andthewell-beingofthecommunitiesandecosystemswheretheCompanyoperates.Inresponsetothe
veryrealandgrowingvulnerabilityofthefreshwaterthatsustainsthebusiness,theCompanysaimisto
establishatrulywater-sustainablebusinessonaglobalscalethroughacommitmenttowaterstewardship.
TheCompanyswaterstewardshipjourneybeganwithafocusonwateruseinitsownoperations,whereithasgreaterinuence.In2005,theCompanyconductedglobalwaterriskassessmentstogainabetter
understandingofthepotentialwaterrisksfacingthebusiness,localcommunitiesandecosystems.Thisled
totheestablishmentoftheCompanyswaterstewardshipframework,whichfocusesonplantperformance,
watershedprotection,sustainablecommunitiesandraisingglobalawarenessandactionaroundwater
challenges(Fgu 1).
Riskassessmentswereupdatedin2008,andasystem-widerequirementwentintoeffectthatall
Coca-Colasystembottlingplantsevaluatethesustainabilityofthewaterresourcesusedtoproducetheir
beverages,aswellasthesustainabilityofthewaterresourcesusedbythesurroundingcommunity.These
evaluationsincludedetailedassessmentsofthevulnerabilitiesassociatedwithquantityandqualityoflocal
waterresources,andtheyresultinthedevelopmentofsourcewaterprotectionplansinpartnershipwith
civilsocietyandgovernments.Allplantsarerequiredtocompletethisprocessandbeactivelyimplementing
theirprotectionplansby2013.Thesesourcewaterprotectionplansaddresscriticalwaterchallengesata
watershedlevel,fromhydrologicalvulnerabilitiestolocalgovernmentmanagementcapacity.
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Inaddition,theCompanysetanaspirationalgoalin2007tosafelyreturntocommunitiesandnaturean
amountofwaterequivalenttowhatisusedinallofitsbeveragesandtheirproduction.Theformulation
ofthistargetcamefromdialoguewiththeinternationalwaterstakeholdercommunityandsetmetricsfor
waterstewardship.
t cp g gu w wp :
REDUCEtheCompanyswateruseratiowhilegrowingtheunitcasevolume,withatargetto
improvewaterefciencyby20%over2004levelsby2012.By2009,theCompanyhadachieveda
12.6%improvementoverthe2004baseline.6
RECyCLEthewaterusedinoperationsbyreturningtreatedprocesswatertotheenvironmentatalevelthatsupportsaquaticlifebytheendof2010.In2009,89%ofCoca-Colasystemfacilities
(approximately95%ofreportedvolume)wereincompliancewiththeCompanyswastewater
treatmentstandards.6
REPLENISHthewaterusedinnishedbeveragesbyparticipatinginlocallyrelevantprojects
thatsupportcommunitiesandnature,andmeetandmaintainthisgoalby2020.Estimatesarethat
bytheendof2009,theCompanywasreplenishingapproximately22%ofthewaterusedinits
nishedbeveragesthroughthesupportofsome250communitywaterprogramsinapproximately
70countries.6,7,8,9
TheCompany,recognizingthatwateruseinagricultureisasignicantcomponentofthewaterfootprint,
hasestablishedasustainableagricultureprogram.Thestrategyextendsbeyondwaterresourcesandconsidersenvironmentalimpacts,socialimplicationsandeconomicpressures.TheCompanysapproachto
sustainableagricultureismulti-dimensionalandfoundedonprinciplestoupholdworkplacerights,protect
theenvironmentandhelpbuildsustainablecommunities.
PLANT
PERFORMANCE
WATERSHED
PROTECTION
SUSTAINABLE
COMMUNITIES
GLOBAL
AWARENESS
AND ACTION
Figure 1. The Coca-Cola Compans Water Stewardship Framework
6SupportingdocumentscanbefoundonTheCoca-ColaCompanyswebsite:www.thecoca-colaco mpany.com/citizenship/communit y_initiativ es.html.7TheCoca-ColaCompany.2010.ReplenishReport.8LimnoTechandTheNatureConservancy.2010.QuantifyingWatershedRestorationBenetsinCommunityWaterPartnershipProjects.9GlobalEnvironment&TechnologyFoundationwithDr.AlbertWright.2009.QuantifyingWaterAccessBenetsinCommunityWaterPartnershipProjects.
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Waterfootprintassessmentscanbehelpfulinsupportingthesewaterstewardshipeffortsbyprovidinga
toolforunderstandingandmeasuringwaterusethroughouttheCoca-Colasystemsdirectoperationsandits
supplychain.TheCompanyhasbeenactivelyinvolvedintheexplorationoftheconceptofwaterfootprinting
forseveralyears,anditwasinstrumentalinformingtheWaterFootprintWorkingGroup(WFWG)that
commissionedseveralearlystudiesaddressingwaterfootprintsandwateroffsets.TheWFWGevolvedinto
theWaterFootprintNetwork(WFN)in2008,andtheCompanycontinuestobeanactivememberofandan
integralcontributortothedevelopmentprocess.TheCompanyalsoisengagedinactivitiesoftheBeverageIndustryEnvironmentalRoundtable(BIER),
acoalitionofglobalbeveragecompaniesworkingtogethertodrivecontinuousimprovementinwater
conservationandresourceprotection.TheCompanyisamemberofaworkinggroupofBIERthatis
developingsector-specicguidelinesforcalculatingthewaterfootprintofabeverageproductorenterprise.
Inaddition,TheCoca-ColaCompanybecameoneoftherstcompaniestocommittotheUnitedNations
GlobalCompactsCEOWaterMandate.Thisprogramisdesignedtohelpcompaniesbettermanagewater
useintheirdirectoperationsandthroughouttheirsupplychains.TheCompanyisanactiveparticipantin
threeworkstreamson:ResponsibleBusinessEngagementwithWaterPolicyandManagement,Waterand
HumanRights,andCorporateWaterDisclosure.
1.5 THE WATER FOOTPRINT CONCEPT
Waterfootprintingbuildsontheconceptofvirtualwater,whichreferstothewaterembeddedina
product;thatis,waterthatisconsumedindirectoperationsandthroughoutthesupplychain.Awater
footprintofaproductconsidersbothdirect(operational)andindirect(supplychain)wateruse.Italsorefers
towhereandwhenthewaterwasused.Awaterfootprinthasthreecomponents:
Thegreen water ootprintreferstoconsumptionofgreenwaterresources(rainwaterstored
inthesoilasmoisture);
Theblue water ootprintreferstoconsumptionofbluewaterresources(surfaceand
groundwater);
Thegrey water ootprintreferstopollutionandisdenedasthevolumeoffreshwaterthatis
requiredtoassimilatetheloadofpollutantsbasedonexistingambientwaterqualitystandards.
Thetermconsumptionwithrespecttogreenwaterreferstorainwaterlosttotheatmospherefromthe
landsurfacewhenitistakenupandtranspiredbyplants(evapotranspiration),plusrainwaterincorporated
intotheharvestedcrop.Thetermconsumptionwithrespecttobluewaterreferstosurfacewater
orgroundwaterthatisevapotranspired,incorporatedintoaproduct,returnedtoadifferentwatershed
orreturnedduringadifferenttimeperiod.Together,thegreenandbluewaterfootprintsmakeupthe
consumptivewaterfootprint.Thiswaterisnotavailabledownstreamforotheruses.
Greywaterresultsfromgreenorbluewaterthatisnotconsumed.Forinstance,whenrain(greenwater)
fallsonagriculturallandandthenrunsofftheeld,itmaycarryerodedsoilorchemicals,suchasfertilizers,
intoanadjacentwaterbody,therebycreatinggreywater.Whenbluewateriswithdrawnfromariver,lakeor
aquiferandusedinmanufacturingprocesses,itmaybereturnedtoawaterbodyasgreywater,containing
moreorlesspollutantsthanthewaterthatwasoriginallywithdrawn.Thecalculationofagreywater
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footprintisbasedonthequantityofwaternecessarytodiluteorassimilatepollutantsinthegreywaterto
suchadegreethatthewaterbecomessuitableasbluewaterforotherdownstreamuses.Green,blueand
greywaterfootprintsareallrepresentedaswatervolumes.
Fgu 2depictsthecomponentsofawaterfootprint.Foraproduct,thedirectwaterfootprintrefersto
waterconsumedinoperations.Indirectwaterusereferstowaterconsumedinthesupplychaintoproduce
thematerialspurchasedbytheproducer.10Bothdirectandindirectwaterfootprintsarecomprisedofgreen,
blueandgreywaterfootprints.Waterfootprintaccountingdiffersfromthetraditionalstatisticsonwateruse,whichaccountonlyfordirectbluewaterwithdrawalsand/ornon-consumptivewateruse(returnow).
TheWaterFootprintNetworkhasdevelopedmethodsforcalculatingwaterfootprints,andithasbegun
toformulateapproachesforassessingtheirpotentialimpactsanddesigningresponsestrategies.These
methodsaredocumentedintheWater Footprint Manual.Asdescribedinthemanualandshownin
Fgu 3,awaterfootprintassessmentisconductedthroughfourphases.
Duringtherstphase,thescopeoftheassessmentisdenedbasedongoalsandobjectives.WaterfootprintaccountingisconductedduringPhase2.Thesustainability11ofthewaterfootprintisevaluated
duringPhase3,andresponseactionstomitigateimpactsareformulatedduringPhase4.
ThreewaterfootprintassessmentpilotstudiesfortheCoca-Colasystemsproductsaredescribedinthe
followingsection.
WaterConsumption
WaterPollution
DIRECTWATER
FOOTPRINT
INDIRECTWATER
FOOTPRINT
GREEN WATER
FOOTPRINT
GREEN WATER
FOOTPRINT
BLUE WATER
FOOTPRINT
BLUE WATER
FOOTPRINT
GREY WATER
FOOTPRINT
GREY WATER
FOOTPRINT
Non-consumptivewater use (return flow)
Water Withdrawal
Figure 2. Components o a Water Footprintsu: Water Footprint Manual(2009)
Figure 3. Phases o a Water Footprint Assessmentsu: Water Footprint Manual(2009)
sg g
p
W
fp
ug
Wfp
u
W
fp
p
fu
10Theendusewaterfootprint,waterusedbyaretailerand/orconsumer,mayalsoberelevanttosomeproductwaterfootprints(e.g.,soaps,detergents).11ThisphasewasnamedImpactsAssessmentatthetimeofthethreepilotstudiesdiscussedinSection2.
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JacquesCousteau
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Thethreepilotstudiesdescribedinthissectionwereconductedfrom2008to2010followingthe
methodologyoftheWaterFootprintNetwork.Thestudieswereundertakenearlyinthewaterfootprint
developmentprocesswiththeintenttotestthemethodology,informthescienceandhelpincrease
understandingofthewaterfootprintconcept.
TherstwaterfootprintassessmentfocusedontheCompanysmostpopularsparklingbeverage,Coca-Cola.
Akeyndingofthisstudywasthatthewaterfootprintofsugarisasignicantcomponentofthetotalwater
footprint.Basedonthisresult,thesecondstudyexaminedthewaterfootprintofrenedsugarfromsugarbeetssuppliedtotheCoca-ColasystemsEuropeanbottlingplants.Thethirdpilotstudyexploredthewater
footprintoftwoorangejuiceproductsproducedfortheNorthAmericanmarkettobetterunderstandwater
usethroughoutthesupplychainforanon-sparklingbeverage.
2.1 WATER FOOTPRINT OF 0.5 LITER COCA-COLA IN PET BOTTLE
AlogicalchoicefortherstwaterfootprintassessmentwastheCompanyssignaturedrink,Coca-Cola.
ThestudywasconductedbyresearchersattheUniversityofTwenteintheNetherlandsincollaboration
withCoca-ColaEnterprisesInc.(CCE)andCoca-ColaEurope.Theproductselectedforstudywasa0.5liter
PET-bottleofCoca-ColaproducedatCCEsDongenbottlingplantintheNetherlands.Thespecicproductselectedforthispilotstudywasdrivenbytheresearchersproximitytoandfamiliaritywiththelocal
industriesandthesupportofthelocalbottlerandbusinessunit.
Water Footprint Accounting
AwaterfootprintofCoca-Colaisthesumofindirectwateruseinthesupplychainplusdirectoperational
wateruse(Fgu 4).
Indirect WaterUse in theSupply Chain
Direct OperationalWater Use Water Footprint
Bottling Plant
Ingredients
Packaging
PET Bottle,Closure, Label,
Tray Carton, TrayShrink Film,
Pallet StretchWrap, Pallet
Beet Sugar,
Phosphoric Acid,Caramel,
Caffeine, C02
Cleaning, Mixing,Blending, Filling
Figure 4.Indirect and Direct Water Footprint Components
2.
0
PILOTSTUDIES
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Theaccountingprocessbeganwithwaterusedinthesupplychaintoproduceingredientsandother
components(e.g.,bottles,labels,packingmaterials).Ingredientsincludesugarmadefromsugarbeetsgrown
intheNetherlands,carbondioxide(CO 2),caramel,phosphoricacidandcaffeine.Thenamesandquantitiesof
ingredientsinnaturalavoringsaretradesecretsandwerenotincludedintheassessment,buttheabsence
ofthesedatashouldnotimpactthecasestudyorrelatedconclusionsbecausethewaterfootprintsassociated
withsuchnaturalavoringarenotexpectedtobematerialinnature.12Thesupplychainwaterfootprintalso
includesoverhead,whichaccountsforwaterusedtoproducetheenergythatpowerstheplants,buildingmaterials,ofcepaper,vehicles,fuelandotheritemsnotdirectlyrelatedtooperations.
Waterusedinoperationsconsistsofthewaterincorporatedintotheproductasaningredientandwater
usedinproductionprocesses.ThroughouttheCoca-Colasystem,theprocesswateristreatedtorigorous
standardsbeforeitisreusedinsideaplantorreturnedtocommunitiesandnature.
Theestimatesarethatthegreenwaterfootprintofthe0.5literCoca-Colabeverageis15liters,theblue
waterfootprintis8litersandthegreywaterfootprintis12liters.Thegreenandblue(consumptive)water
footprintsareprimarilyassociatedwithsugarbeetproduction.Thesugarbeetsarelargelyrainfed(green),
andsomeexternal(blue)watersupplyisrequiredforirrigation.Theblueplusgreenwaterfootprintsfor
DutchsugarbeetsfromdifferentregionsareshowninFgu 5.Greenwatermakesupapproximatelytwo-
thirdsoftheconsumptivewaterfootprint.
Noordelijke klei
Noordelijk dal/veen
Gelderland
Limburg
Oost-BrabantWest-Brabant
Zeeuws-Vlaanderen
Zeeuwse-Eilanden
Noord en Zuid-Holland
Oost en Zuid Flevoland
Noordoostpolder
Noordelijk zand
1531
1429
1530
1533
17
3812
23
1323
11
19
1119
818
816
510
Figure 5.Consumptive Water Footprints or Dutch Sugar Beets
12NaturalavoringsreportedinarecentreporttitledAPilotinCorporateWaterFootprintAccountingandImpactAssessment:TheWaterFootprintofaSugar-ContainingCarbonatedBeverage(Ercin,etal.2009.UNESCO-IHEInstituteforWaterEducation,ValueofWaterResearchReportSeriesNo.39)arenotbasedonappropriateassumptionsforCoca-Cola.
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Thegreywaterfootprintisassociatedwiththesupplychain.Aportionofthenitrogenappliedasfertilizer
tothesugarbeeteldsisreleasedtoreceivingwaters.CoolingwaterassociatedwithPETbottleproduction
resultsinathermalload,whichisconsideredinthegreywatercomponent.
Theoperationalwaterfootprint(0.4liters)isentirelybluewater,representingwateraddedasaningredient.
Theoverheadwaterfootprintassociatedwithoperations(waterusedfordomesticpurposesintheDongen
plant)wasdeterminedtobezerobecauseallwastewateristreatedinapublicwastewatertreatmentplant
andreturnedtotheenvironment.13Thesupplychainoverheadwaterfootprintwasalsocalculatedandfoundtobenegligible.Theoverallresults,includingallcomponents,areshowninFgu 6.14
Impacts Assessment
Toassesspotentialimpactsfromthesewaterfootprints,theresearchersfocusedonthelargestcomponent:
sugarbeetsgrownintheNetherlands.Dutchsugarbeetsaregrowninaregionofrelativewaterabundance,
andthecropsareprimarilyrain-fed.Theneedforexternalwatersupplyislow,sotheuseofbluewateris
minimal.Forthesereasons,thereappearstobenosignicantadverseimpactsofgreenandbluewateruse
associatedwithsugarbeets.
13Thegreywaterfootprintmethodologyisevolving;theseresultsreecttheapproachatthetimeofthisstudy.14Asubsequentmoredetailedstudyofthesugarbeetwaterfootprint(describedinsection2.2ofthisreport)indicatesthatinfactthebluewaterfootprintismuchsmaller,reectingactuallowirrigationwateruseintheNetherlands.
Figure 6.Water Footprint o a 0.5 liter o Coca-Cola in Dongen, the Netherlands
Packaging(7 Liters)
Ingredients(28 Liters)
Supply ChainWater Footprint
OperationalWater Footprint
TotalWater Footprint
Blue | 100%
Grey | 83%
Green | 13%Blue | 4%
Grey | 20%
Blue | 28%Green | 52%
Grey | 34%
Blue | 23%
Green | 43%
(12 Liters)
(15 Liters)
(8 Liters)(0.4 Liters)
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Intermsofgreywater,iftheappliedratesofnutrientsarehigherthantheuptakeofthecrop,excess
fertilizerscanrunoffandleadtoeutrophication,theenrichmentofsurfacewaterswithnutrientsthat
promoteexcessivegrowthofalgae.Potentialconsequencesincludeshkillsanddegradationofthewater
qualityofrecreationalsurfacewaterssuchasswimmingareas.Nitrateleachingfromfarmlandcanalso
contaminatedrinkingwatersupplies.TheaveragefertilizerapplicationrateintheNetherlandsisoneof
thelowestamongtheEuropeansugarbeetproducingcountries15,andthegovernmentregulatesfertilizer
application16,minimizingtheriskofexcessiveapplication.Nevertheless,accordingtotheNetherlands
EnvironmentalAssessmentAgency17,eutrophicationisaconcernintheNetherlands.Theimpacts
assessmentindicatedthattheremaybeaneedtoengagewithgovernmentsandotherstakeholderstodiscussbettermanagementmeasurestoaddressthisissue.
What was learned rom the Coca-Cola water ootprint study?
More than two-thirds o the total water ootprint o a 0.5 liter PET bottle
o Coca-Cola rom the Netherlands comes rom blue and green water used
in the supply chain to grow sugar beets.Nearlyhalfofthetotalwaterfootprintis
rainwater(green)usedbysugarbeetsinthiswater-richtemperateclimate.Bluewateraccountsfor
approximatelyone-quarterofthetotalwaterfootprint.18
Approximately one-third o the total water ootprint is grey water
associated with the supply chain.Somenitrogenassociatedwithfertilizerusedonsugarbeeteldsisreleasedtotheenvironment.Thegreywaterfootprintalsoisassociatedwithcooling
waterforPETproduction,whichresultsinathermalload.
15FAO(FoodandAgricultureOrganization).2008.FERTISTATDatabase-Fertilizerusebycropstatisticsdatabase.16InternationalInstituteforBeetResearch(IIRB).2004.SugarbeetinEurope:Anenvironmentallyfriendlycropforsustainableplantproductionsystems.17NetherlandsEnvironmentalAssessmentAgency.2008.EnvironmentalPressureintheNetherlands,EutrophicationTheme:IntroductionandPolicy.18Asubsequent,moredetailedstudyofthesugarbeetwaterfootprint(describedinsection2.2ofthisreport)indicatesthatinfact,thebluewaterfootprintismuchsmaller,reectingactuallowirrigationwateruseintheNetherlands.
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The operational water ootprint comprises only about 1% o the total
water ootprint. Theoperationalwaterfootprintisallblueandrepresentswateraddedas
aningredient.Theoperationalgreywaterfootprintiszero,becausethewastewateristreated
tomeetorexceedwastewatertreatmentstandards.UnderTheCoca-ColaCompanysRecycle
commitment,allplantswillattainlocalandtheCompanysrigorousglobaltreatmentstandards.
The overhead water ootprint or the products evaluated is negligible.This
wasoneoftherststudiestoquantifytheoverheadwaterfootprintofaproduct.Priortothestudy,therewasrecognitionthattheoverheadcomponentisapartoftheoverallwaterfootprintofa
product,butitwasunclearhowrelevantitwas.
What are the implications or the Coca-Cola system?
The results o this pilot study suggest that a closer look at the water
ootprints o sugar produced rom sugar beets, as well as other sweeteners
supplied to the Coca-Cola system across Europe, is warranted. Thesugar
beetpilotstudydescribedinthefollowingsectionwasconductedwiththeintenttoincrease
understandingofwateruseassociatedwithsugarbeetsproducedinEurope.
This study highlighted the need to look at the components o waterootprints separately, because an aggregated number can hide the
importance o reducing the direct water ootprint.TheCoca-Colasystemwill
continuetofocusonimprovingwaterefciencyandensuringthatallprocesswateristreatedto
rigorouswastewatertreatmentstandardswithindirectoperations.Theseactionshaveapositive
impactonthewaterfootprint.
Beyond sugar beets, the Company has established a sustainable agriculture
program.Thispilotstudyreafrmedtheimportanceofincludingagriculturalingredientsina
waterfootprint.TheCompanyisactivelyengagedwithWorldWildlifeFund(WWF)andothersin
theBetterSugarcaneInitiative(BSI),amulti-stakeholderinitiativeworkingtodevelopacertication
forsustainablysourcedsugarcane.
2.2 WATER FOOTPRINT OF BEET SUGAR SUPPLIED TO THE COCA-COLA SySTEMSEUROPEAN BOTTLING PLANTS
Basedontheresultsoftherstwaterfootprintassessmentofa0.5literPETbottleofCoca-Colainthe
Netherlands,Coca-ColaEuropewasinterestedinexaminingthewaterfootprintandassociatedimpactsfor
naturalsweetenerssuppliedtoits112Europeanbottlingplants.Thisongoinganalysisisbeingconducted
bydenkstattincooperationwiththeInstituteforWaterQuality,ResourcesandWasteManagementatthe
ViennaUniversityofTechnology.
Todate,thewaterfootprintaccountingforsugarbeetshasbeencompleted.Workonsugarcaneandhighfructosecornsyrup(HFCS)isunderway.Approximately70%ofrenedsugarpurchasedfortheCoca-Cola
systeminEuropeisfromsugarbeetsgrownin19Europeancountries.
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Water Footprint Accounting
Allrelevantactivitiesthatusewaterintheproductionofbeetsugarwereaddressedintheaccounting
process,asshowninFgu 7.Rawbeetsareprocessedatsugarbeetreningfactoriesintoseveral
products,includingbeetpulp,molassesandsucrose.
ThemethodologyoutlinedintheWater Footprint Manualwasfollowedwithsomemodications.In
particular,thebluewaterfootprintwascalculatednotasthedifferencebetweenthecropwaterrequirement
(CWR)andgreenwater,butratherthroughsite-specicdataprovidedbythesugarcompanies.Theresults
indicatethatlesswaterisactuallyappliedforirrigationthanprojected,andingconsistentwithirrigation
strategiesfocusedonmaintainingconsistentharvestsratherthanmaximumyields.
Thegreywaterfootprintforsugar
beetswascalculatedbasedon
thepollutantloaddividedbythe
maximumacceptableconcentration
fornitrogen,consideredanindicator
oftheimpactoffertilizeronwater
quality.19Itwasassumedthat10%
oftheappliednitrogenfertilizer
leachestogroundwater.Theamount
ofdilutionwaterwascalculated
usingthewaterstandardoftheU.S.EnvironmentalProtectionAgency(EPA)
fornitrogen(10mg/liter)20,whichis
wellwithintherangeofacceptable
ground/drinkingwaterrequirements
19Aldaya,M.M.andA.Y.Hoekstra.2010.TheWaterNeededtoHaveItaliansEatPastaandPizza.AgriculturalSystems.103:351-360.20NationalPrimaryDrinkingWaterRegulations.CodeofFederalRegulations(CFR)Title40;Part141.
Cultivation of main rawmaterials (sugar beet)
Transport of main rawmaterials to the sugar plant
Sugar production
Transport of sugar toCoca-Cola system bottling plants
Figure 7.Beet Sugar Water Footprint Calculation Stages
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forEuropeminusanassumednaturalbackgroundconcentration.Forsugarreneries,EuropeanUnion
BestAvailableTechnique(BAT)emissionvaluesforthefoodindustry 21wereusedtocomputethegrey
waterfootprint.
TheaveragegreenwaterfootprintforsugarfromsugarbeetsacrossallregionsofEuropeisestimatedto
be375liters/kgsugar,or67%ofthetotalwaterfootprint.Theaveragebluewaterfootprintis54liters/kg,
or10%ofthetotal.Theaveragegreywaterfootprintis128liters/kg,comprising23%ofthetotalwater
footprint.Themagnitudeandcolorcompositionofthewaterfootprintdependsonthesourcingregion,
asshowninFgu 8.Theresultsinthegureareclusteredaccordingtoclimate.Theamountofwater
requiredbysugarbeetsishighestinGreece,Romania,ItalyandSpain.Threeofthesecountrieshavesignicantlylargerbluewaterfootprints(associatedwithirrigation)thantheothergrowingregions.
Thisstudyalsoevaluatedthewaterconsequencesofusingthelandforagriculturalpurposesascompared
tonaturalforest.Thiscaninformtheimpactsassessment,becauseitprovidesinformationonthe
evapotranspirationdemandfromnativevegetationifthesugarbeetcropswerenotcultivated.Thenatural
vegetationaroundthesugarproductionareasismostlyforest,buttheresearchersdeterminedthatthe
standardapproachforwaterfootprintcalculations(Penman-Monteith 22)isnotsuitableforforestsbecause
transpirationandinterceptionevaporationcannotbedenedappropriately.Inordertoconductthecalculation,
thestandardgrasssurface 23wasusedasareferenceratherthanthenaturalvegetation.Thisisaconservative
assumption,becausethewaterdemandforforestsishigherthanforgrasslands.Theresultssuggestthatuse
ofthelandforgrowingsugarbeetsconsumeslesswaterthanwouldbeconsumedbynaturalvegetation.
ThewaterfootprintofsugarfrombeetsgrownintheNetherlands(incombinationwithBelgiumandthe
UK)isapproximately12%lowerthantheestimatemadefortheCoca-Colawaterfootprintstudy.Thelarger
estimateassumesthatthedifferencebetweencropwaterrequirementandavailabilityofgreenwateris
coveredbyirrigation(bluewater).Instead,theinputsusedforthesugarstudyarebasedonactualirrigation
L
iters/Kg
Sugar
1 ,200
1 ,000
80 0
60 0
40 0
20 0
0
Austr
ia,Hu
ngary
Serbi
a
Roma
niaPo
land
Czech
Repub
lic,Lit
huania
Greece
France
Finlan
d,Swe
denSpain Ita
ly
Denm
ark
Switze
rland,
Germ
any
Belgiu
m,Ne
therla
nds,Unite
dKing
dom
= Transport/Energy = Grey Water = Blue Water = Green Water
Figure 8.Water Footprints o Beet Sugar Across Growing Regions
21EuropeanCommission.2006.IntegratedPollutionPreventionandControl:ReferenceDocumentonBestAvailableTechniquesintheFood,DrinkandMilkIndustries.22Allen,R.G.,L.S.Pereira,etal.1998.Cropevapotranspiration-Guidelinesforcomputingcropwaterrequirements.FAOIrrigationanddrainagepaper56.23Ibid.
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dataobtainedfromthesugarindustry,whichindicatedthatalmostnobluewaterisusedtoproducebeet
sugarintheNetherlands.Thebluewatercomponentwasfoundtocompriselessthan1%ofthetotalwater
footprintofDutchsugarbeets,comparedtothe28%estimatefromtheCoca-Colastudy.
Whenthelowerestimatesfromthebeetsugarstudyareusedtocomputethewaterfootprintofa0.5liter
PETbottleofCoca-ColaproducedintheNetherlands,thebluewaterfootprintdecreasesfrom8litersto
1liter,andthetotalwaterfootprintdecreasesby9%.Theseresultshighlighttheimportanceofobtaining
site-specicdatawherepossible.AsFigure8indicates,thewaterfootprintofthisproductwillbehighlydependentonthelocationwherethesugarissourced.
Uncertaint Assessment
Thispilotstudyidentiedachallengeassociatedwithgreywaterfromsugarreneries:apartfroma
standardfornitrogen,thereisnocommonreceivingwaterstandardforthebeet-growingcountriesin
Europe.Theresearchersexploredthesensitivityofthegreywaterfootprintcalculationbasedonthree
differentwaterqualitystandards.Thisexerciseshowedthatthetypeoftreatmenthasasignicantimpact
onthegreywaterfootprint,asexpected.Forsugarfactorieswithlowlevelsoftreatment(i.e.,mechanical
ornotreatment),thechoiceofstandardwasfoundtohaveaverysignicantinuenceontheresult.For
sugarplantswithadequatetreatment,thechoiceofstandardwasfoundtohavelesserinuenceonthe
greywaterfootprint.Thisexercisedemonstratesthesensitivityofthegreywaterfootprintcalculationtothe
choiceofstandard.
Wh did the water ootprint o Coca-Cola decrease?
ThewaterfootprintofCoca-ColadescribedinSection2.1wasrecalculatedbasedontherened
waterfootprintestimatesfromthesugarbeetpilotstudy.Theresultingtotalwaterfootprintwas
foundtobesmallerthantheoriginalestimate,andtheblue(irrigation)waterfootprintdecreased
signicantly.Thedifferenceisduetotherobustnessoftheinputs.Forthesugarbeetwaterfootprint
study,completedquestionnaireswerereceivedfrom65Europeansugarplantsthatsupplythe
Coca-Colasystem.Questionnairesrequesteddetailedinformationonsugarbeetcultivationand
sugarfactoryoperations.Incontrast,theoriginalestimateswerebasedonpublicdatasets,andit
wasassumedthatthedifferencebetweenthecropwaterrequirementandtheavailabilityofgreen
waterwascoveredbyirrigation(bluewater).Themorerobustdatasetindicatedthatisnotthecaseand
thatlessirrigationwaterisactuallyapplied.
-9%
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What was learned rom the beet sugar water ootprint study?
The water ootprint associated with beet cultivation is the largest
component o the total water ootprint o beet sugar. Onaverageacrossthe
growingregions,thewaterfootprintofthebeetcropsmakesup97%ofthetotalwaterfootprintof
beetsugar.
European sugar beets are generally grown in water-rich temperate climates
using mainly green water.MostEUcountriesuseverylittleirrigation(blue)watertogrow
sugarbeets,withsomenotedexceptionsintheMediterraneanregion.
Dierences in the consumptive (green plus blue) water ootprint between
countries can be more than three-old.Thetotalconsumptivewaterfootprintsrange
from279liters/kg(France)to974liters/kg(Greece).Thecountrieswiththelargestconsumptive
waterfootprinthavehighevapotranspirationratesand/orlowyields.
Grey water ootprints in the sugar beet supply chain come mainly rom
the feld, not the actory.However,sugarplantsinsomecountrieshavelargegreywater
footprintsduetolowlevelsofwastewatertreatment.Almostthree-quartersofthewaterfootprint
forsugarfactoriesisgrey. The use o supplier-based data provides a more realistic picture o water
use in the supply chain compared to ootprints based on public data. Public
dataarebasedonassumptions,whereassupplierdataarebasedonactualperformance.Actual
cropmanagementpracticesforsugarbeetsgrowninEuropeutilizedlessirrigationwaterthan
indicatedbypublicdata.Thisisbecauseperiodsofsoilmoisturedecitduringthelastmonthsof
growthareallowedinordertooptimizeyields.
In the cultivation areas, natural vegetation uses as much as or more green
water than sugar beets.Thereplacementofnaturalvegetationwithsugarbeetcrops
appearstoresultinlowerwaterconsumption.
What are the implications or the Coca-Cola system?
Sugar beets grown in the Netherlands are a water-efcient crop.
Thislocalsourceisgrowninawater-richtemperateclimateusingmainlygreenwater.
There is a wide variation in the water ootprint o sugar beets grown in
dierent regions.Theremaybeopportunitiesinsomegrowingregionsforbetteruseofwater
resourcesassociatedwithwatersupplyforbeetcultivation.Theanalysisalsohighlightspotential
opportunitiestoaddresspoorwastewatertreatmentandassociatedwaterqualityproblemsfor
somesugarprocessingplants.
The fndings o this pilot study helped defne uture actions related to
supply chain sustainability.TheCompanyhasnowinitiatedfurtherworkinEuropeto
trialawaterfootprintsustainabilityassessmentcoveringenvironmental,socialandeconomic
impactsforrenedsugarmadefromsugarbeets.TheCompanyisengagingwithselected
Europeanstakeholders,includingbeetsugarsuppliers,forconsultationandadviceduring
theproject.
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2.3 WATER FOOTPRINT OF ORANGE JUICE PRODUCTS
TheCoca-ColaCompanyistheworldslargestproducerofjuiceandjuicedrinks,with100brandsof
juiceand1,100juiceproductssoldin145countries.Havingrecentlycompletedawaterfootprintofthe
Companyssignaturesparklingbeverage(Coca-Cola)andawaterfootprintofakeysweetener(sugarbeets),
theCompanyalsowantedtoexplorethewaterfootprintofajuicebeverage.Twoorangejuiceproducts
producedfortheNorthAmericanmarketwereselectedforthewaterfootprintpilotstudy:
SimplyOrange(notfromconcentrate)in59oz.PETcarafe
MinuteMaidOriginal(reconstitutedfromconcentrate)in64oz.ber-basedboardgable-topcarton
Thecalculationsconsiderallwaterconsumedingrowingorangesandwaterconsumedinprocessingand
packagingthenalorangejuiceproducts(Fgu 9).TheorangesforSimplyOrangearegrowninFlorida
andthestateofSaoPaulo,Brazil.TheorangesforMinuteMaidOriginalaregrownprimarilyinFloridaand
CostaRica.Theprocessingoforangesintojuiceorconcentrateoccursintheregionswheretheorangesare
grown.Thepercentoforangessourcedfromeachregionvariesbyyear,anddifferentsourcingscenarios
wereevaluatedtoreectthisvariability.BothproductsarepackagedintheU.S.atmultiplelocations.Data
werenotavailableforwateruseassociatedwithmanufacturingofthepackagingmaterialsinthesupply
chain,soonlyoperationalwaterusewasaccountedforinthepackagingplants.Admittedly,thesemissingdatamayormaynotmateriallyimpactthecasestudyortherelatedconclusions,sofuturefollow-upto
includeandreectsuchdataiswarranted.
Water Footprint AccountingWaterfootprintswerecalculatedaccordingtotheaccountingmethodoutlinedintheWater Footprint
Manualandbasedonavailableinformation.PublicdatawereusedforBrazilandtollotherdatagaps
wheresupplierdatawerenotavailable.
Thewaterfootprintassociatedwithorangegrowingmakesupapproximately99%ofthetotalwater
footprintforbothproducts,andtheremainderisassociatedwithprocessingandpackaging.Thegreen,blue
andgreywatercomponentsforeachproductareshowninFgu 10.
Indirect WaterUse in the
Supply ChainDirect Operational
Water Use Water Footprint
PackagingPlant
Ingredients
Packaging
Container (PETbottle or fiber-
based boardgable top carton),
closure, label,
packagingmaterials to ship
products
Oranges andprocessing
of frozenconcentratedand not-from-
concentratejuice
Cleaning, Blending,
Filling
Figure 9.Indirect and Direct Water Footprint Components
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MostoftheorangesaresourcedfromFlorida,sotherelativeproportionsofgreen,blueandgreywater
footprintsforeachproductshowninFigure10aresimilar.Thewaterfootprintoforangesvariesacross
growingregions,asshowninFgu 11.Basedonthisanalysis,thetotalwaterfootprintappearstobe
largestinBrazil.However,consideringonlythetotalwaterfootprintcanbemisleading.Theresultsshow
thatintermsofconsumptivewateruse(greenplusbluewater),Floridahasthelargestwaterfootprint.Most
importantly,FloridahasasignicantlylargerbluewaterfootprintthanBrazilandCostaRica.Thisisbecause
thecalculatedcropwaterrequirementsaresubstantiallygreaterforFloridacomparedtoCostaRicaand
Brazil.ThesedifferencesreectthehigherevapotranspirationratesinFloridaandexplainwhyirrigationisa
necessityinmostFloridagroves.
Asecondandimportantreasonforthedifferencesinconsumptivewaterfootprintrelatestothevariance
incropyieldsbetweengrowingregions.AveragecropyieldsforFloridaare18%greaterthanCostaRica
and86%greaterthancropyieldsinBrazil.Therecanbemanyreasonsfortheseloweryields,including
disease,lackofirrigationand/orfertilization,soilconditions,speciesoforangesandlengthofthegrowing
season.Cropyieldswereidentiedasanareaofuncertaintyintheanalysis,andtheseresultsillustratewhy
accuratecropyieldinformationiscriticaltocalculatingwaterfootprints.
Grey | 16%
Blue | 24%
Green | 60%
Grey | 18%
Blue | 20%
Green | 62%
Simply OrangeFlorida
Simply OrangeFlorida and Brazil
Minute Maid OriginalFlorida and Costa Rica
Grey | 16%
Blue | 22%
Green | 62%
(100 Liters)
(386 Liters)
(154 Liters)
(117 Liters)
(407 Liters)
(127 Liters)
(84 Liters)
(319 Liters)
(115 Liters)
Figure 10.Water Footprint or a Liter o Orange Juice Product
CubicMetersP
erTon
50 0
45 0
40 0
35 0
30 0
25 0
20 0
15 0
10 0
50
0
= Grey Water = Blue Water = Green Water
Florida Brazil Costa Rica
Figure 11.Water Footprints or the Three Growing Regions
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Thegreywaterfootprintforgrowingorangesrelatestofertilizerapplicationandassociatedexcessnutrients
reachingsurfacewaterorgroundwatersupplies.Nitrogenwasconsideredthemostcriticalpollutant.
PollutantloadinformationwasavailableforFloridaorangegroves,andsimilarratesoffertilizerapplication
wereassumedforBrazilandCostaRicainordertoestimatethegreywaterfootprintforallregions.Inthe
absenceofsite-specicinformationforleachingratesandpollutantloadsinrunoff,a10%leachingratewasassumedforalllocations,asrecommendedintheWater Footprint Manual.Themagnitudeofthegrey
waterfootprintisstronglyinuencedbythecropyieldsthatwereassumedfortheanalysis.Thelargergrey
waterfootprintshownforBrazilisadirectfunctionoftheloweryieldsusedforBrazil,comparedtoyields
usedforFloridaandCostaRica.
Impacts Assessment
ThiswaterfootprintpilotdifferedfromtheothertwostudiesinthattheCompanysorangejuiceproducts
havelargeandcomplexsupplychains.Theorangegrovesandprocessingplantsarespreadacrossvast
areasinnumerouswatershedsofthreecountries.Forthisreason,therewasaneedforascreeningtoolto
helpfocustheimpactsassessmentonprioritywatersheds,andtheutilityofwaterstressindicesforthis
purposewasexploredaspartofthestudy.
Avarietyofwaterstressindiceshavebeenusedtoreectthescarcityofwaterinaregion,basedonvarious
metricsthatcanbecalculatedindifferentways.Theycanbeusedasindicatorsoflocationswhereacloser
lookmaybewarranted.Theindicesarebasedonfactorssuchaspopulationandtotalrunoff,volumeof
waterwithdrawals,andvariationinprecipitation.
Waterstressindiceswerecalculatedforthethreecitrusgrowingregions,becauseitwasdeterminedduring
theaccountingphasethatthelargestwaterfootprintisassociatedwiththeorangegroves.Theresults
suggestedthatthegreenandbluewaterfootprintimpactsarepotentiallymostsignicantforgrowing
orangesinFlorida.However,theseindicesareonlyindicativeofpotentialimpacts.Amoredetailedanalysis
revealedthat,ingeneral,wateruseassociatedwithcitrusgrowinginFloridaismanagedthroughtheWaterManagementDistrictsstrongenvironmentalowandwaterqualityprotectionprograms,andthereislittle
evidenceofsignicanthydrologicimpactfromcitrusgrowinginFlorida.Thewaterstressindicesthatwere
evaluateddonotrecognizethesewaterresourcemanagementmeasures,whicharedesignedtoprotect
waterquantityandwaterquality.However,waterstress,climatefactorsanddevelopmentpressuresarean
ongoingconcerninFlorida.Policyandregulatoryengagementwillbeimportanttoensurethesustainability
ofthewaterresource.
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Uncertaint Assessment
Conductingwaterfootprintassessmentsforproductswithcomplexsupplychainsrequiressignicant
data.Inordertofocuseffortsonthekeydatarequirements,anuncertaintyassessmentwasconducted
tohighlightthosefactorsthathavethegreatestinuenceonthewaterfootprint.Bycalculatingwater
footprintsoverarangeofreasonablevariabilityforselectedinputparameters,theuncertaintyininput
parametersthatmattermosttothecalculationresultscanbeidentied.Theuncertaintyassessmentcan
helpinunderstandingwhatthenumbersmeanandhowrobusttheyare,focusingfuturedatacollectionandmanagementeffortsonthosefactorsthathavethegreatestinuenceonthewaterfootprints.
Twoinputparameterswereidentiedthatsignicantlyaffecttheoverallmagnitudeofthewaterfootprints
oforangejuice,bothrelatedtothesourcecrops:cropyieldsandparametersforgreywaterassociatedwith
growingtheoranges.
What was learned rom the orange juice water ootprint study?
Approximately 99% o the total water ootprint or both orange juice
products is associated with orange growing.TheCoca-Colasystemspackaging
operationscontributeinsignicantly(
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AmericanIndianProverb
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Thethreepilotstudiesdescribedintheprevioussectionprovideinsightintoseveralimportanttopics
relatedtowaterfootprinting.Theprimarylessonslearnedandobservationsarediscussedbelow,organized
accordingtothefourphasesofawaterfootprintassessment.
3.1 SETTING GOALS AND SCOPE
Waterfootprintstudiescanbetimeconsumingandresourceintensive,andbeforeembarkingonastudy,itisimportanttobeclearaboutthegoalsofthestudy.TheCompanyinvestedinwaterfootprintpilotstudies
formultiplereasons.Broadlyspeaking,theCompanywasinterestedingainingabetterunderstandingofthe
methodologyandhowitmightsupportitsaimtoestablishatrulywater-sustainablebusinessonaglobal
scale.TogetherwithTheNatureConservancy,therewasinterestinexploringtheutilityandpracticalityof
themethodologyforunderstandingwaterusethroughoutthevaluechainandtheimpactsthatusemayhave
onlocalwatersheds.Italsowasanticipatedthattheknowledgegainedthroughwaterfootprintpilotsmight
identifylocationswhereresponseeffortsshouldbedirectedatmoresustainableagriculturalpractices.The
potentialvalueofwaterfootprintingasanexternalcommunicationtoolwasalsoofinterest.Finally,The
NatureConservancyandtheCompanyhopethattheoutcomesofthepilotstudieswillcontributetogreater
understandingofthewaterfootprintassessmentmethodology.
Twoperspectivesrelatedtothesegoalsweregainedthroughthepilotstudies,asdiscussedinthefollowing
sections:
Waterfootprintassessmentscanimproveinternalunderstandingofwateruse.
Externalengagementandcommunicationsaboutwaterusecanbeinformedbywaterfootprintanalysis.
Water ootprint assessments can improve internal understanding o water use.
Theknowledgegainedthroughthethreepilotstudiesprovidesvaluableinsightintothelargestcomponents
ofwaterconsumptionintheproductionoftheproductsselectedforstudy.Theassessmentresults
demonstratethatfocusingonoperationalwateruseisimportant,butitprovidesanincompletepictureofaproductsfullwateruseandimpact.Itisimportanttoaddressfreshwaterusethroughoutthesupplychain.
Waterfootprintaccountingcanprovideusefulknowledgeandinsightsaboutwateruseandthegreen,blue
andgreycomponents.Theresultscanalsobeusedtohelpdirectacompanyseffortstoencourageimproved
waterstewardshipinthesupplychain.Forexample,thesugarbeetpilotstudyindicatedthatsomesugar
processingplantshavelargegreywaterfootprintsduetolowlevelsoftreatment,highlightingapotential
areaforfutureengagementwithsuppliers.Theassessmentalsocanhelpidentifytheneedformore
sustainableagriculturalpracticesrelatedtowaterusebyprovidinginformationonwherethemostwateris
usedandwheretheremaybethegreatestpotentialforadverseimpactsonwaterresources.
Waterfootprintingisahelpfultooltobegintoidentifypotentialwater-relatedissuesandrisks.Toreally
gainanunderstandingofwhetherwateruseishavinganimpact,thevolumeofwaterconsumptionmust
beplacedinthecontextofthelocalwatershed,andthecumulativeeffectofallusesofthesharedwater
resourceneedstobeconsidered.Thestateofthescienceatthepresenttimeisstillinsufcienttoaddress
thefullarrayofwater-relatedimpacts,butthewaterfootprintmethodologyisexpandingtoincludeamore
robustimpactsassessment.
3.
0
PERS
PECTIVES
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TheCompanyreliesonitsriskassessmentprogramtounderstandandmanagewater-relatedissuesand
risksforitsdirectoperations.TheriskassessmentprogramhasbeeninstrumentalinshapingtheCompanys
waterstewardshipframework,whichincludesrequirementsforthedevelopmentofSourceVulnerability
AssessmentsandSourceWaterProtectionPlansforallbottlingfacilities.
External engagement and communications about water use can be inormed by water
ootprint analysis.
Discussionsaroundwaterareevolvingrapidlyacrossmanyaudiences,includingpolicymakers,corporate
investorsandshareholders,NGOs,communitiesandothers.Waterisacomplexresourcetounderstandand
manage,andwaterimpactsdifferfundamentallyfromcarbonemissions,wherelocalreleasescanhaveglobal
impacts.Whentalkingaboutawaterfootprint,itisimportanttorecognizethattherearevariedapplications
ofitsuseandtobeclearaboutthetypeofwaterfootprintinvolved,aswellastheneedsoftheaudience.
Thevalueofproductwaterfootprintingisitsabilitytoexaminedisaggregatedwaterusebycomponent;
thatis,bysupplychainandoperationaluse,andbygreen,blueandgreywater.Itisimportanttokeep
thecomponentsofawaterfootprintseparate,sothattheycanbeassessedinthecontextofthelocal
watershedswherethewaterisbeingsourced.Whiletheconceptofwaterfootprintinghassuccessfully
raisedpublicawarenessofthevariousdimensionsofwateruse,consumersandmanyopinionleadersoften
focusonlyontheaggregatednumbers,withanaturalreactionthattheyneedtobemadesmaller,regardless
ofthecontext.However,aproductwaterfootprintnumberbyitselflacksimportantcontext,andthiscan
sendthewrongmessagethatanywateruseisbad,whichmayleadtoaninappropriateresponsestrategy.
Asmallwaterfootprintinadrought-pronewatershedmayhaveasignicantimpact,whilealargewater
footprintinawater-richregionmayhavelittleornoimpact.
Thereisaperceptionbysomethatwaterfootprintsonproductlabelscanbeusedtohelpconsumersmake
productchoices.Whilewaterfootprintsareahelpfultoolforcompaniestobegintounderstandtheirwater
use,numericwaterfootprintsonproductlabelsdonotprovidetheinformationthatconsumersneedto
makeinformedchoicesamongproductsandconsumptionpractices.Awaterfootprintlabelwouldprovide
anumber,butitwouldnotreectthecomplexitiesbehindit,orconveytheimpactthatthewaterusedtoproducethatproductishavingonthelocalwatershed.
Caremustbetakenwhencomparingwaterfootprintstoensurethattheyreectthesamescope(operational
and/orsupplychain).Furthermore,whensite-specicdataarelimited,asisoftenthecase,theuseofpublic
datasourceswillleadtothesamewaterfootprintsforsimilarproducts.Asanexample,intheabsence
ofsite-specicdata,orangejuiceproducedbytwocompaniesthatsourcefromthesamecountrieswill
havethesamewaterfootprintbecauseoperationalwaterfootprintsaresmall,andanydifferenceswillbe
overwhelmedbythecropwaterfootprint.
ThewatercerticationprogramunderdevelopmentbytheAllianceforWaterStewardship(AWS) 24and
discussedinSection4.2holdspromiseasamoreeffectiveandappropriatecommunicationtool.Thisprogram
willrecognizecompaniescontributingtosustainablewaterpracticesandoperatinginhealthywatersheds.BothTheNatureConservancyandTheCoca-ColaCompanyareparticipatingintheactivitiesoftheAWS.
24www.allianceforwaterstewardship.org
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3.2 WATER FOOTPRINT ACCOUNTING
Thecoreofthewaterfootprintassessmentisaccounting.Duringthisphase,thesupplychainismappedout,
relevantdataarecollected,andthecolorsofthewaterfootprintarecalculated.Ingeneralandacrossall
threepilotstudies,theaccountingprocessprovidedanincreasedunderstandingofthegreen,blueandgrey
componentsofthewaterfootprint.Theprimarylessonslearnedandobservationsrelatedtotheaccounting
phasearediscussedbelow:
Supplierinformationiscriticaltoconductingawaterfootprintassessment;
Thewaterfootprintsfortheproductsstudiedcomemainlyfromtheeld,notthefactory;
Thespatialandtemporalresolutionofthebluewaterfootprintiscritical;
Waterfootprintsarehighlysensitivetojustafewinputparameters;
Furtherdevelopmentandstandardizationofthemethodologyforcalculatingthegreywater
footprintisneeded;and
Theoverheadwaterfootprintwasfoundtobeaninsignicantcomponentoftheproductwaterfootprints.
Supplier inormation is critical to conducting a water ootprint assessment.
Waterfootprintaccountingrequiresasignicantamountofdata.ManyoftheCompanysproductsare
producedthroughcomplexsupplychainsinvolvingnumerousgrowers,processorsandbottlersspread
acrossmultiplecontinents.Consequently,noonepersonhasaccesstoalloftherequireddata.Itcan
beextremelydifculttomapthesupplychaintotheeldlevel,duetothefactthatcertainingredients
arepurchasedfromdistributorsorcooperativesthatstockpileproductsfromhundredsoffarms.Further
complicationderivesfromthefactthatthelocationsofwateruseorfarmingcanchange,meaningthat
theowofmaterialsisever-changing.Thischallengewasaddressedintheorangejuicewaterfootprint
assessmentbyselectingrepresentativefarmsandplantsforanalysis.Whiledataneedswerestill
substantial,thishelpedfocustheanalysis.
Foragriculturally-derivedproducts,mostofthedatarequiredforanassessmentresideswithsuppliers.
Thisinformationmaybeconsideredcondentialforcompetitivereasonsorbecauseofconcernsabout
comparisonwithintheirindustry.Forexample,cropyields,whichcanhaveasignicantimpactonthe
magnitudeofthewaterfootprint,alsohaveimplicationsforsuppliersalesandpricingstrategies.
Specicinformationaboutinternalprocessesatmanufacturingplantsmayalsobeconsideredproprietary.
Somesupplierswerewillingtoshareinformationwiththethirdpartythatconductedthewaterfootprint
assessmentafteracondentialityagreementhadbeensigned.Othersuppliersexpressedmorewillingness
toworktogetherthroughanindustryassociationtodevelopawaterfootprintforaregion.Ineithercase,
gettingtheneededdataistime-consumingandmayincreaseprojectcosts.Thisfactorcanalsolimitthe
levelofinformationdetailthatcanbeshared.
Whenitisnotpossibletoacquiresite-specicdata,regionalaveragesfromglobaldatasetsmaybetheonlyavailablesourceofinformation.Forexample,intheabsenceofdataforthecitrus-growingregionof
Brazil,datawereobtainedfromreadily-availabledatasets.25,26,27Thisraisesthequestionofwhetherall
waterfootprintswilllookthesameforsimilaragriculturally-derivedproductswhensite-specicdataare
unavailableandinputsaredrawnfromthesameglobaldatabases.
25FoodandAgricultureOrganization(FAO).2009.FAOSTATDatabase.FoodandAgricultureOrganization.Rome.http://faostat.fao.org26FAO,2009.CLIMWAT2.0model,Rome.www.fao.org/nr/water/infores_databases_climwat.html27USDA(UnitedStatesDepartmentofAgriculture)ForeignAgriculturalService.2008.GAINReportNo.BR8021.BrazilCitrusAnnual2008.December19,2008.http://www.fas.usda.gov/gainles/200812/146306943.pdf
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The water ootprints or the products studied come mainly rom the feld, not the actory.
Theresultsofthethreepilotstudiesrevealthatthegreen,blueandgreywaterfootprintsforCoca-Cola,
Europeansugarbeetsandorangejuicecomemainlyfromtheeld.Thelargestcontributortothebluewater
footprintisirrigationwaterusedtogrowthecrops.Thegreywaterfootprintstemsprimarilyfromfertilizerandpesticideuse,withsomegreywaterassociatedwiththemanufacturingofpackagingmaterials.Thisgeneral
nding,withrespecttotheratioofoperationaltosupply-chainwaterfootprintsandtherelativeimportanceof
ingredients,packagingandoverhead,canlikelybeextendedtoothersimilaragriculturally-derivedproducts.
Theseresultshighlighttheimportanceofincludingthefullsupplychaininawaterfootprintassessment.
Foragriculturally-derivedproducts,companieswithacomprehensiveoperationalwaterusemanagement
programinplacemaybeabletofocustheireffortsonencouragingmoresustainablepracticesforkeycrops
inthesupplychain.
The spatial and temporal resolution o the blue water ootprint is critical.Toaccuratelyassessthepotentialforimpacts,itisimportanttounderstandhowwaterscarcityina
watershedvariesthroughouttheyearanditsrelationshiptothecropwaterneeds/use.Thebluewater
footprintiscommonlypresentedasasinglenumberthatcanmaskimportantspatialandtemporal
considerations.Forinstance,todevelopappropriateresponsestrategies,itwillbenecessarytounderstand
whetherthebluewateriscomingfromandbeingdischargedtoariver,lake,aquiferormultiplesources.
Thevariabilityofthebluewaterfootprintisalsoobscuredwhenonlyanannualaveragenumberis
presented.Particularlyforagriculturalproductsoringredients,waterusecanvaryconsiderablyoverthe
courseofayear,ascanwateravailability.Insum,thevalueofwaterfootprintingforimpactandrisk
assessmentswillincreasegreatlywhenfootprintcomponentsaredisaggregatedbywatersource.Further,
understandingtheseasonalityofwateruseandavailabilityhelpsprovideabasisfordevelopingappropriateresponsestrategies.
Water ootprints are highly sensitive to just a ew input parameters.
Sensitivityanalyseswereconductedaspartoftwoofthethreepilotstudiestoidentifytheuncertaintyin
inputparametersthatmattermosttothecalculationresults.Asensitivityanalysisthatcalculateswater
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footprintsoverarangeofreasonablevariabilityforselectinputparameterscanbeusedtofocusfuturedata
collectionand/ormanagementeffortsonthosefactorsthathavethegreatestinuenceonthewaterfootprints.
Cropyieldwasfoundtobethesinglemostimportantparameteraffectingthewaterfootprintcalculations.
Yieldscanvarywidelyfromyeartoyear,asaresultofclimate,disease,speciesoforangesandotherfactors
thatintroduceyear-to-yearvariability.Yieldsalsoareconsideredcondentialbysuppliers,aspreviouslynoted,
andpublicly-availableaveragescanintroducelargeuncertaintyintotheresults.Thesensitivityanalysesalso
indicatedthatchangesininputdataforthegreywaterfootprintcanhaveasignicanteffectonthewater
footprintresults.Dataonfertilizerapplicationandleachingandrunoffratesforgrowingoperationswerenot
generallyavailableforthepilotstudies,sosimplifyingassumptionsweremade.Therefore,thegreywater
componentsrelatedtotherunoffandinltrationofpesticidesandfertilizersarehighlyuncertain.Thechoice
ofwaterqualitystandardforgreywaterfootprintcalculationsrelatedtooperationscanalsohaveasignicant
impactontheresults,asdemonstratedbythesensitivityanalysisconductedaspartofthesugarbeetstudy.
Further development and standardization o the methodology or calculating the grey water
ootprint is needed.
AtechnicalworkinggroupoftheWaterFootprintNetworkiscurrentlyfocusingonthistopic,andthe
Companyisactivelyengagedintheprocess.Importantquestionsarebeingexplored,includingtheplaceofthegreywaterfootprintinwaterfootprintaccounting,theselectionofnaturalandmaximumcontaminant
concentrationsforthecalculation,theempiricalformulasusedtodetermineleachingandrunoff,and
pollutantimpactsinreceivingwaterbodies.Thendingsofthistechnicalworkinggroupwillbeaddressedin
the2010revisedversionofthe Water Footprint Manual.
WherescreeningcalculationsusingtheWFNmethodindicatethatthegreywaterfootprintofaproductis
largeandmaybehavinganimpact,furtherevaluationusinglocation-specicwaterqualitystudiesanddata
isrecommendedtoconrm(orrefute)thepreliminaryconclusionsandtodevelopabetterunderstandingof
localizedwaterqualityimpactsandtheeffectivenessofpossiblemanagementpracticesinreducingimpacts.
The overhead water ootprint was ound to be an insignifcant component o the
product water ootprints.
Overheadinthesupplychainincludeswaterconsumptionassociatedwithconcreteandsteelusedin
buildings,energyproduction,vehicles,ofcesuppliesandothermaterials.Operationaloverheadincludes
domesticwateruse(e.g.,forcleaning,toilets,kitchenuse,gardens).Overheadwasfoundtobeavery
smallcomponentofthetotalwaterfootprintinthepilotstudieswhereitwasaddressed.Bothsupplychain
andoperationaloverheadwerecomputedaspartofthepilotstudyfora0.5literbottleofCoca-Colaand
foundtobeanegligiblecomponentofthetotalwaterfootprint.Forthesugarbeetpilotstudy,thewater
footprintrelatedtofuelconsumptionforagriculturalmachineryandenergyconsumptioninthefactories
wasincludedintheanalysis,aswellastransportfromtheeldtothesugarfactoriesandfromthesugarfactoriestothebottlingplants.Thesecomponentswerefoundtobenegligiblecomparedtothetotalwater
footprints.Energyusewasexcludedfromtheorangejuicestudybecausebiofuel,biomasscombustionand
hydropowerwerenotidentiedsourcesofenergyfortherepresentativefacilities. 28Informationondomestic
wateruseattheFloridaprocessingplantwasavailableandwascalculated,butitwasdeterminedtobe
insignicant.Discussionswithothersinthewaterfootprintcommunitysuggestthatthesendingsmayapply
toagriculturally-derivedproductsingeneral.
28TherecommendationintheWater Footprint Manualisthatthewaterfootprintofenergyshouldbeaccountedforiftheenergyissourcedfrombiofuelsorfromelectricityfrombiomasscombustionorhydropowerbecausethoseformsofenergyhavearelativelylargewaterfootprintperunitofenergy.
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3.3 WATER FOOTPRINT SUSTAINABILITy ASSESSMENT
Waterisaniteresource,butitisinnitelyrenewable.Whenproperlymanaged,evenlargevolumesof
waterusecanbesustainableinlocationswheretheresourceissufcienttosupporttheuse.Theimpacts
ofwateruseneedtobeassessedinthecontextofallwaterusesinthewatershedinordertodene
cumulativeimpacts,sharedrisksandappropriateresponsestrategies.Improvedefcienciesandwastewater
treatmentareimportantwherepossible,butimpactscanalsobeaddressedthroughpolicyandregulatory
engagementtosupportimprovedmanagementofthesharedwaterresource.
Methodsforidentifyingimpactsofwaterfootprintsonwaterresourcesareevolvingandthesubjectof
muchattention.ASustainabilityAssessmentWorkgroupoftheWaterFootprintNetwork(hereafter,WFN
workgroup)iscurrentlyfocusingonthistopic.TheNatureConservancyandTheCoca-ColaCompany
areactiveparticipants,drawingfromconsiderablereal-worldexperienceinwatershedprotectionand
restoration.Twokeyrecommendationsarediscussedbelow:
Impactsshouldbescreenedatmultiplelevelsofspatialandtemporalresolution.
Theboundariesofanimpactassessmentneedtobeclearlydened.
Impacts should be screened at multiple levels o spatial and temporal resolution.Asdiscussedearlier,aproductwaterfootprintanalysisenablesonetotracewaterthroughoutthesupply
chaintothelocalwatershed.However,forproductwaterfootprintswithhighlycomplexsupplychains,it
canbeoverwhelmingtoassesseverysinglewatershed.Therefore,itisnecessarytobeabletoscreenthis
informationtodeterminewhereacompanyshouldfocusitseffortsandfurtherresearch.Recentdiscussions
withintheWFNworkgroupsuggestthatathree-stepprocessforassessingpotentialriskscanhelp
maximizetheefciencyofscreeningefforts.
Atthecoarsestlevel,aglobalscreeningexercisecanbeconductedusingindicatorsofstressand
vulnerabilityattheriverbasinleveltoprioritizeareasfordeeperanalysis.TheWorldBusinessCouncilon
SustainableDevelopmenthasdevelopedaGlobal Water Tool29thatisappropriateforsuchhigh-levelglobal
screening.Asthisandsimilarglobaltoolsareimprovedwithner-scaleriverbasindelineation,month-by-monthwaterscarcityanalysis,andadditionalindicatorsofwaterstressandsustainability,theywill
becomeever-moreusefulforimpactandriskscreening.TheWater Footprint Assessment Tool,nowunder
developmentbytheWaterFootprintNetwork,isexpectedtoprovidesuchenhancedcapabilities.
Thesecondstepshouldbeconductedatthelocalwatershedlevelforwatershedsprioritizedintherststep.
Inthisstep,threepossibleindicatorsareexamined,dependinguponwhichwatersourcesareinuencedby
thecompanyswaterconsumptionandpollutiondischarge:
historicalchangesinriverow;
changesinlakeoraquiferlevels;and
violationsofwaterqualitystandards.
TheproposeddesignoftheWater Footprint Assessment Toolwillgreatlyfacilitateassessmentsofthese
threeimpactindicators.
29TheWBCSDsGlobalWaterToolisavailableat:http://www.wbcsd.org.
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Thosewatershedsthatappeartobeadverselyimpactedbasedontheseindicatorswillrequirefurther
analysistodetermineappropriateresponsestrategies.Thethirdstepinvolvesasite-specicassessment
ofnotonlywaterquantityandqualityimpacts,butalsoecologicalandsocialimpacts.Suchassessment
typicallyemployscomputerizedhydrologicsimulationmodelsand/ormulti-disciplinaryteamsofexperts
(e.g.,eco-hydrology,socialscienceandeconomics).
Thislevelofdetailedassessmentmaybedoneaspartofawaterfootprintassessmentorasaseparate
effort.Asanexample,TheCoca-ColaCompanyhasinitiatedpilotprojectsinpartnershipwithWorldWildlife
Fund(WWF)forsustainableagriculturalmanagementpracticesforsugarcane.Improvedpracticesfromthis
andotherpilotprojectswillinformthedevelopmentofbettermanagementpractices,helpingtoensurea
moresustainablesupplychain.
The boundaries o an impact assessment need to be clearly defned.
Theimpactscreeningprocessdescribedaboveisbasedonthepremisethatwater-relatedimpactsmustbe
evaluatedonawatershedbasisforthereasonsdiscussedinSection1.2.Forcoarse-levelimpactscreening,
pre-determinedriverbasinboundaries,suchasthoseemployedintheWBCSD Global Water Tool,may
sufce,butaccurateimpactassessmentwillrequiremoredetailedanalysisofthelocalwatershed.
DraftguidancefromtheWFNworkgrouprecommendsthatthelocalwatershedandareaofinuence
bedelineatedasdepictedinFgu 12.Thepointatwhichacompanyisextractingwaterordischarging
wastewaterdenesapointoforiginfromwhichacontributingwatershedcanbedelineatedupstream
ofthispoint.Theareaofinuencedepictstheboundarywithinwhichpotentialecologicalandsocial
cumulativeimpactsshouldbeassessed.Whilethisexampledepictsawatershed-basedassessment,similar
logiccanbeappliedtowaterextractionsfromanaquiferorlake.
Watershedcontributingto companyswater supply
Area of influenceextendingdownstream frompoint of origin
Location ofcompanys waterextraction or returnflow = point of originfor area of influence
Figure 12.Conceptual Diagram o Impact Assessment Boundaries
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3.4 WATER FOOTPRINT RESPONSE FORMULATION
Theresponseformulationphaseaddressesthequestion:What can be done about the impacts
caused by a water ootprint?Clearly,alllifetakeswater,anditisvitalforcommunities,industry,power
generation,navigation,recreationandotherpurposes.Whereawaterusehasbeendeterminedtobe
unsustainable,theoptionsforaddressingthischallengeinclude:minimizingwaterusethroughimproved
efciencymeasuresandreuseofprocesswater;treatingprocesswatersothatitcanbereturnedtothe
environmentsafely;andengagingwithcommunities,governmentsandotherstakeholdersoneffective
managementofthelimitedresourcetohelpensureanadequatesupplyofcleanwaterforallusers.
TheCoca-ColaCompanyswaterstewardshipframeworkstartswithensuringthesustainableuseofwater
withinthewatershedswhereitsplantsarelocated.Specicengagementactionsassociatedwithmanaging
abottlingfacilitysoperationalwaterfootprintmaybeinsidetheplantorontheplantgrounds,ortheymay
addresscommunityorwatershedissues.Priorityforengagementisgiventobottlingfacilitieslocatedin
water-stressedregionswheresocialandecologicalimpactsmaybeoccurring.TheCoca-Colasystemalsois
takingactiontoensurethesustainabilityofagriculturalpracticesforitskeyingredients.
Twospecicobservationsrelatedtoresponseformulationfromthewaterfootprintpilotsandwater
stewardshipstrategyarediscussedbelow:
Responseactionsshouldstartwithacompanysownoperationsandincludecollaborativeeffortstohelpprotectthelocalwatershedswhereitoperates.
Companiesthatproduceagriculturally-derivedproductsneedtounderstandwateruseinthesupply
chainandsupportsustainablepractices.
Response actions should start with a companys own operations and include collaborative
eorts to help protect the local watersheds where it operates.
Avaluablecharacteristicofthewaterfootprintmethodologyisthatitbreaksoutoperationaland
supplychainwateruseandexaminesthethreecolorsofawaterfootprintseparately.Bykeepingthese
componentsseparateratherthancombiningthemintooneaggregatedwaterfootprintnumber,operationalwateruseandefciencymeasuresremainvisibleandarenotoverwhelmedbythecropwaterfootprint.
Initscommitmenttowaterstewardship,theCoca-Colasystemhasfocusedrstonitsglobaloperations,
meaningnotonlyitsbottlingplantsbutalsothewatershedsandcommunitieswheretheCoca-Colasystem
operates.AllplantsintheCoca-Colasystemarerequiredtodeterminethesourceoftheirwaterandthatof
thesurroundingcommunity,assessthevulnerabilitiestothequalityandquantityofthiswater,andworking
withcivilsocietyandgovernments,developandimplementasourcewaterprotectionplan.
Therstandmostimportantactionacompanyshouldtakeistoaddressitsownwateruseinoperations
whereithasdirectinuence.Waterconsumptioninoperationsshouldbeminimizedandallprocesswater
treatedtowaterqualitystandardsbeforeitisreturnedtotheenvironment.Forindustrieswhereproduction
generateswastematerial,productiveuseofthewastethroughproductionofbyproductsisanothermeans
ofreducingtheoperationalwaterfootprint.Asanexample,allpartsofanorangeareusedintheproduction
oforangejuiceanditsbyproducts,andthewaterfootprintisallocatedacrossbyproductsaccordingtotheir
weightandvalue.
UnderstandinganylocalimpactsoftheCoca-Colasystemswateruseandensuringsustainablesuppliesof
waterforallstakeholdersisintegraltothiseffort.Theremaybeaneedforwateraccessprojectstohelp
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providecleanandreliablesourcesofdrinkingwaterorrestorationmeasuresthataddresswaterquantityand
waterqualityissuesinawatershed.ThesetypesofReplenishactivitiesarebeingimplementedaspartof
theCoca-ColasystemsCommunityWaterPartnership(CWP) 30projects.TheConservancyandtheCompany
haveidentiedninecategoriesofactionsthatmaybeimplementedaspartofitsCWPprojectsoranywater
stewardshipprogram.Scienticallycrediblemethodsforquantifyingtheeffectsofthesemeasuresonwater
quantity(hydrologicalpathwaysandstorage)andwaterqualityhavebeenidentiedanddocumented,and
thebenetsgeneratedbytheseactivitieshavebeenquantiedtoassessprogressinattainingtheCompanys
Replenishtarget.
30TheCoca-ColaCompany.ReplenishReport.January2010.
COCA-COLA SySTEM WATER RESOURCE SUSTAINABILITy
Coca-ColasystembottlingfacilitiesworldwidearerequiredtohaveformalWaterResourceSustainability
programswithSourceWaterProtectionPlansthatareauditedthroughtheglobalgovernanceprogram.
Program Goals
Topromoteandsupportthesustainabilityandsupplyreliabilityofwaterresourcesinthe
watershedsandcommunitieswheretheCoca-Colasystemoperates; Tounderstandandaddressenvironmental,social,political,regulatoryandeconomicissues
associatedwithsecuringsufcientfreshwatertomeetcurrentandfuturebusinessandlocal
communityneeds;and
Tohelpprotectproductqualityandsafety.
Eachfacilityisrequiredtoconductanin-depthSourceWaterVulnerabilityAssessmentanddevelopand
implementaSourceWaterProtectionPlanforthebusinessandlocalcommunitywatersources,ifsuch
sourcesaredifferentfromtheplantssourceofwater.
Source Water Vulnerabilit Assessments
Conductarigoroustechnicalassessmentoflocalwaterresourcesustainability,includingdetailedwatershedmappingandhydrologic/hydrogeologicmodelingoflocalwatershedand
groundwaterbasin.
Identifycontributingareas,rechargeareas,protectionzonesandthreatstotheavailabilityand
qualityofwaterresources.Thisincludesdevel