Reducing Our Core Emissions-Facilities

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Commitment 2020 About This CRS Report A Message from Our Chairman and CEO Our Business at a Glance Corporate Responsibility and Sustainability at CCE CRS Governance CRS in Action

Energy Conservation/Climate Change Overview Understanding Climate Risks Our Energy Conservation/Climate Change Strategy Reducing Our Core Emissions Our Carbon Footprint Our Product Footprints Reducing Emissions from Our Sales and Marketing Equipment Partnerships and Public Policy

Water Stewardship Overview Understanding Our Water Risks Our Water Stewardship Strategy Reducing Our Water Use and Improving Our Efficiency Our Water Footprint Recycling, Reclaiming, and Responsible Treatment Protecting and Replenishing Our Watersheds Partnerships and Public Policy

Sustainable Packaging/Recycling Overview Understanding Our Packaging Challenges Our Sustainable Packaging/Recycling Strategy Reducing Our Packaging Reusing Materials and Increasing Recycled Content Developing Renewable Resources Recycling at Our Facilities Effective Recovery and Consumer Recycling Partnerships and Public Policy

Product Portfolio/Balanced and Active Lifestyle Overview Understanding Our Product Portfolio Challenges Our Product Portfolio Strategy Providing Choice A Selection of New 2009 Products Nutritional Labeling School Beverage Guidelines Implementation Responsible Sales and Marketing Supporting Balanced and Active Lifestyles Partnerships and Public Policy

Diverse and Inclusive Culture Overview Understanding Our Diverse and Inclusive Culture Challenges Our Diverse and Inclusive Culture Strategy Measuring Diversity Building Our Diversity and Inclusion Infrastructure Recruitment Retention and Promotion Safety Providing Equal Opportunities Partnerships and Public Policy

Stakeholder Engagement NGOs and Public-Private Partnerships Employees Our Suppliers Customers Consumers Our Communities Public Policymakers Our Shareowners

Energy Conservation/Climate Change Overview

Understanding Climate Risks

Our Energy Conservation/Climate Change Strategy

Reducing Our Core Emissions
Facilities
Fleet

Our Carbon Footprint

Our Product Footprints

Reducing Emissions from Our Sales and Marketing Equipment

Partnerships and Public Policy

Reducing Our Core Emissions—FACILITIES

Our core emissions result from facilities and fleet that we own and operate, and from the electricity and fuel they use. To reduce these emissions, we are promoting energy efficiency in every possible area of our operations.

Our Facilities
We reduced our consumption to 6,377 terajoules of energy. This reduction represents an absolute decrease in energy use of approximately 2.9 percent since 2007. We continue to find areas to reduce our facilities’ energy use through monitoring and targeting programs and by investing in energy-saving technologies.

Monitoring and Targeting
We closely monitor energy use at every production site through scorecards that provide senior management with a performance summary of energy efficiency in all facilities. This approach allows them to see which facilities are excelling and which are underperforming. Each facility measures its absolute energy consumption, as well as the number of kilowatt hours used per 1,000 liters of product produced.

In Europe, we have installed monitoring and targeting systems that allow us to track real-time energy use at each stage of production. Each production facility in Great Britain now has up to 150 sub-meters that monitor the plant’s energy usage. Sub-meters are placed on production lines, with separate meters on particularly energy-intensive equipment, such as bottle blowers, compressors, and chillers.

The monitors help us to determine where and how energy is used, which can vary by package, beverage type, or time of day. Using this information, we pinpoint areas of inefficiency, set targets, and review real-time performance against optimal efficiency. We are also using these systems to reduce water use and hope to extend the system to monitor carbonation CO₂ losses, also known as fugitive CO₂.

Through the use of these systems we can reduce site energy consumption by up to 7 percent year on year. We already have systems in place at six of our facilities in Great Britain and will install an additional four throughout Europe in 2010. In North America, we will pilot a similar system in our Grand Rapids, Michigan, facility during 2010. We are proud to be leading the industry in the scale of our installation.

Renewable Energy in Our Facilities
To reduce our use of traditional energy from the electrical grid, we are piloting renewable and low-carbon technologies. These new technologies are often considerably more expensive than traditional energy, so we strive to make the most strategic investments by seeking tax incentives and grants where possible. Currently, these technologies yield only small impacts on our overall carbon footprint, but, with time, programs will be scaled up to produce greater savings.

In 2009, we installed Solyndra’s cutting-edge cylindrical solar technology (see "Our Low-Carbon and Renewable Technologies") in our Macon, Georgia, sales facility. At times, this technology provides “net-metering,” where we produce more energy than is used by the facility, allowing us to sell energy back to the grid. In 2010, we launched this technology at our facility in Coachella, California, and will monitor its effectiveness in the year to come. Two additional facilities in California use conventional solar technology to generate electricity.

In partnership with UTC Power, we are installing two fuel cell systems (see "Our Low-Carbon and Renewable Technologies") at our production facility in Elmsford, New York. These fuel cells will generate enough energy and heat to provide an estimated 30 percent of the facility’s operational needs. Site preparation took place in 2009, and the systems will be operational by the end of 2010.

Lighting Replacement
In our 2008 CRS Report, we discussed a substantial high-bay fluorescent lighting retrofit at 244 of our 338 facilities. In 2009, we completed the three-year program and have now retrofitted all of the eligible facilities in North America, meeting our objective.

Our new high-performance energy-efficient lighting program has accounted for our greatest reduction in electricity consumption so far. This new technology turns off or dims the lights to a quarter of their capacity when not needed, helping to reduce lighting energy consumption by approximately 50 percent. This program has reduced our energy consumption by approximately 88 million kilowatt hours per year. Energy-efficient lighting is also being installed in our European facilities.

Orion Apollo solar light pipes (see "Our Low-Carbon and Renewable Technologies") are further helping us reduce energy use by channeling daylight to replace electrical light in our facilities. We have piloted these light pipes in four facilities in the U.S. In tests, the pipes provided sufficient daylight for up to 10 hours each day, significantly reducing our electricity use.

We have continued our lighting energy reduction program by piloting energy-efficient exterior lighting in our parking lots and building grounds. In 2009, we tested, measured, and verified savings from efficient exterior lights and then retrofitted our entire Milwaukee, Wisconsin, site. In 2010, we will finish the retrofitting of our Macon, Georgia, site and complete additional testing at our site in Memphis, Tennessee.

In 2009, we reduced our energy use by 127 million kilowatt hours from our lighting initiatives. This change relieves pressure from the grid and reduces our annual CO₂e emissions by approximately 80,000 metric tons.

Green Buildings


	CCE’s first LEED certified facility, Coachella, California

According to the U.S. Green Building Council, buildings account for 38 percent of CO₂e emissions in the U.S. Therefore, we are reevaluating the way our buildings are designed, constructed, and operated.

Our new Coachella, California, facility was designed to achieve basic Leadership in Energy and Environmental Design (LEED) certification. Through an integrated design process, we maintained our original budget and schedule, while surpassing the basic certification and achieving the second highest certification level, LEED Gold, in early 2010. By integrating the U.S. Green Building Council’s LEED requirements, the facility has less impact on the environment and is a healthier workplace for employees. These requirements include energy savings and CO₂e emissions reduction, as well as water efficiency, improved indoor environmental quality, and stewardship of resources. We plan to integrate such considerations into our standards for design, construction, and management of new buildings.

One of our corporate office buildings in Atlanta, Georgia, is now LEED Core and Shell certified, and another is awaiting certification. LEED Core and Shell certification covers building elements such as the structure, envelope, and heating and cooling system. We are also currently planning work on a LEED Existing Building certification for our facility in Wilsonville, Oregon. In Europe, in early 2010, we leased an award-winning green building, Voltaic, in Dagenham, England. The building, which will be used as a distribution hub for East London, incorporates many environmentally friendly and sustainable features in its design, such as photovoltaic roof panels.

Other Facility Initiatives
Following successful pilot programs, we are expanding our use of heat recovery in Europe and investigating its effectiveness in North America. By reusing heat energy from boilers in other production processes, we are able to reduce our use of natural gas. We are also optimizing the use of compressed air in production processes.

Our energy-savings toolkit helps our facilities collect and benchmark their performance data, as well as identify potential reductions and efficiencies. In Europe, we are helping to develop a catalog of new and emerging energy-savings technologies for the Coca-Cola system.

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