Macroeconomic Monitor
Home / Society / Environment / How green is the red can?

How green is the red can?

coca_cola_in_the_green_by_princesssaphron-d32qlmd

Eight years ago, Coca-Cola set a goal to return all of the water it uses in its products to nature by 2020. On August 24, 2015, the company announced that it had achieved its goal five years ahead of schedule.

Unlike the environmental dramas we are bombarded with daily – resources are running out, the end of the world is near, etc. – this news was not covered at all in the Bulgarian media, and appeared only in highly specialized publications around the world. This is one of thousands of good examples, but despite them, the end result is that humanity lives in a state of constant psychosis and a sense of doom, which are due primarily to media rule number one: “Good news is bad news.”

But let’s get back to the news to understand what it actually means for the complex relationship between Coca-Cola and water. In 2014, the company used over 300 billion liters of water in its production. Of these, 162 billion liters go into its products, and the rest is discharged as wastewater into rivers, lakes, swamps and seas. To get an idea of the scale – this is more than the volume of the Belmeken Dam (144 billion liters), but much less than that of the Iskar Dam (650 billion liters).

Historically, wastewater treatment has been a top priority. The reason is clear – polluted water makes both people and aquatic ecosystems sick. The company aims to return only purified water to nature, imposes extremely strict standards on itself, and today practically all plants comply with them (>99%). In many countries, they are the first, and in some remain the only operating wastewater treatment plants built to date.

In 2004, the drama unfolded in the state of Kerala, India, where the company was accused of “draining” farmers’ water and its plant was closed by local authorities. Subsequently, the drought, of course, continued, since the deep horizons from which Coca-Cola draws have no connection with the surface aquifers used for irrigation, and the long-awaited rainfall simply did not come. However, the blow to its reputation was painful and the company stepped up its global program to increase water efficiency. As a result, water consumption for the production of a liter of drink fell from 2.68 (2004) to 2.03 l. (2014; target – 1.75 l., 2020), thanks to optimizations in all processes and bottling plants. In addition, all plants make assessments of the vulnerability of their water sources, implement plans for their protection and assist local communities in solving water problems. The price of water is practically irrelevant - these investments almost never have a return of less than 10-15 years. The goal is clear - minimizing the withdrawal of water from local sources and preventing a second such incident.

Later, the concept of product responsibility throughout the life cycle appeared. As a result of calculating the so-called water footprint, for example, it turns out that the water used to grow, process and produce sugar is about 25 times more than that in the red can itself, and the pollution in the entire process is much greater than that of bottling plants. No other factor has contributed so much to the purification of the global sugar industry as a polite request for data from Coca-Cola. In business, when your most important customer is talking, it is wise to listen… and take preventive measures.

So much for normal business logic. Minimum pollution, maximum efficiency, good local relations, product responsibility – what more can a company that exists to make a profit do? It turns out it can.

In 2007, the company decided that it had to return to nature all the water it used in its products. It is clear that every consumer returns to nature in one way or another. However, the company wants to ensure that for every liter produced, one liter of water goes exactly where it is needed most – primarily to the most valuable wetlands around the world. Wetlands – lakes, swamps, marshes, old riverbeds, mangrove forests, etc. – are both the richest in life and the most endangered ecosystems on a global scale. And Coca-Cola has quickly become a global environmental activist – today the company finances a total of 209 restoration projects, which are being implemented with partner organizations in 61 countries. Everywhere, maximum benefits are sought for both biodiversity and local people. And the search for even better ways continues and will never stop…

The news from Coca-Cola practically means that from today onwards, the company will operate with zero net impact on the planet's water and aquatic ecosystems. It means that the most significant steps in protecting the environment happen not when someone with a lot of power decides so, but when the free market, consumers and reputational risk pressure global companies to change, to change the environment and solve problems.

It means you can sleep peacefully the next time you read somewhere about how dire the water situation is and how it will run out tomorrow - many people work daily to ensure that these ominous predictions remain only in the media.

And the best thing is that everything described so far is happening in Bulgaria too – the plant in Kostinbrod has a modern treatment plant, even its sludge is now used to produce energy; its efficiency reaches 1.9 l. of water per liter of produced beverage (3.2 l., 2004); the water supply system in the city was built and repaired by the company; projects for the restoration of wetlands along the Danube are being implemented jointly with WWF.

And not just in terms of water: Coca-Cola is a leader in solving all kinds of environmental issues that are relevant to its business - from resource efficiency and the implementation of biodegradable packaging to sustainable agriculture and reducing greenhouse gas emissions.

And not just at Coca-Cola: No global consumer brand can lag behind for long, because it cannot afford to disappoint the ubiquitous customer who wants to live in a better world.

And we all want it. [2]

 

[1] The author has a Master's degree in Environmental and Natural Resources Management, is a Managing Partner at denkstatt, and is a consultant to The Coca-Cola Company, Coca-Cola Hellenic, and Coca-Cola HBC Bulgaria on sustainable development, environmental management, and water management. He knows both the companies and their projects well. He is proud to do and talk about what he believes in and understands.

[2] The TEAM has no commercial relationship with Coca-Cola.

Did you like it? Take a minute to support the EKIP on Patreon!
Become a patron at Patreon!

About Boyan Rashev

Boyan Rashev is one of the leading experts on sustainable development in Bulgaria. Since 2007, he has been a managing partner at denkstatt, a consulting company that helps businesses and institutions manage their impact on natural, social and human capital.

Read more

Populism is attacking: what else can we nationalize to make it (slower) for us?*

It is not private hospitals that need the reins of the Public Health Act, but public hospitals that need the freedom of the market...

4 коментара

  1. It would be interesting to explain HOW and WHERE Coca-Cola "returns" the used water. Presented like this, it sounds a bit like a "carbon footprint" scheme - here's a bundle of cash, let's say we've recovered. And as weak PR for an anyway useless drink...

  2. Nikolay Mladenov

    This is called PR puff in English - those that have nothing to do with the facts are highlighted in bold. How, as Andrey asks, exactly (without nonsense like "Coca-Cola in a negative amount of time becomes a global environmental protection factor - today the company finances a total of 209 projects for their restoration, which are implemented with partner organizations in 61 countries.") does the water "return"???

    Such "master" writers are a shame for science. Taking money to consult business is OK. Writing (and publishing!) such nonsense, underestimating the intelligence of the audience, is a lack of good taste!

  3. What Coca-Cola is funding are actually existing projects of conservation organizations. The general scheme is as follows: Many wetlands around the world are dried up => huge loss of biodiversity and ecosystem functions => they need to restore connections to water sources in order to flood regularly, as it was in the past => the projects actually represent restoration of these connections and the company estimates the amounts of water that the wetlands in question receive. Read the story of Lake Srebarna - it is similar. A technical report on the matter is available here: http://assets.coca-colacompany.com/e1/42/f74e22fc4599aace62d8fcc0f680/quantifying-water-replenish-benefits-in-community-partnership-projects.pdf
    What we are doing with Coca-Cola is the next step (in addition to the many other projects)... But I can't comment on that yet 🙂

  4. A person cannot create water, earth and air!!! I don't know how they do it?! Probably with magic :)