Reducing Our Water Use and Improving Our Efficiency

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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

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

Reducing Our Water Use and Improving Our Efficiency

DIRECT OPERATIONS

As a beverage manufacturer, we are a significant user of water. Although we cannot reduce the volume of water in our products, we can focus on minimizing the water we use in our cleaning and manufacturing processes. In 2009, we used 33 billion liters of water, a reduction of more than 2 billion liters from 2008.


	Water Use Ratio – click IMAGE to enlarge –

While our ultimate goal is to achieve water-sustainability in our operations, our 2020 target is to achieve an average ratio of 1.3 liters of water to produce one liter of beverage. Our water use ratio is composed of one liter of water that goes into the beverage and .3 liters that is wastewater, which we treat to standards that support aquatic life and return to the municipality. In 2009, we used 1.67 liters of water for each liter of finished beverage, a 3.5 percent improvement over 2008 — and a 14.5 percent improvement since 2005. Eleven facilities have already reached a water use ratio of 1.4 or less, with some of our facilities achieving efficiencies around 1.3 liters. It is essential to note that to go much beyond this point will require new technology or a possible water/energy trade-off. We continue to investigate this issue and will pilot new technologies as they become available to achieve even greater efficiencies.

Conserving Water

DIRECT OPERATIONS, SUPPLY CHAIN AND WATERSHED

To reduce our water use, we have increased our conservation efforts in our plants. As part of a $40-million investment program, we are introducing and installing water-saving technologies where possible and commercially viable. Using a phased approach, we have decided to target the areas with the most impact first.

Our water-saving programs being deployed across all eligible production lines include the following:


	Dry lube replaces soapy water on our can lines, helping us reduce our water use ratio. – click IMAGE to enlarge –

Dry Lube — We are using a silicon-based lubricant, rather than soapy water, to move containers along our production lines. In Europe, we installed dry lube on most production lines in 2009. We converted an additional 33 production lines in North America in 2009, completing 125 of 186 lines, and we will finish installation on our applicable North American lines in 2010.

Air Rinsers — We have begun converting our production lines to use deionized air instead of water to rinse bottles and pre-forms. We have now completed 161 of 186 production lines in North America and will work to convert all lines in 2010. In Europe we are optimizing existing rinsing equipment to increase its efficiency and will replace this technology with air rinsers over time.

Can Warmers — Using approved chemistry designed to maintain water quality, we are able to replace water in our can warmers less frequently. In North America we have converted 25 production lines. This change will be completed in 2010 in both North America and Europe, at which point we will evaluate similar changes for our PET systems.

“My observation is that Coca-Cola Enterprises is serious about their water targets and the programs they’re putting in place to reduce their water footprint. This is not work just to greenwash or get simple accolades. I believe that Coca-Cola Enterprises is doing this because it really is important for their bottom line. I think this is one of those situations where the environmental vision the company is putting in place is completely aligned with the necessary vision for successful performance for the company going forward.”

—CRAIG HANSON, DIRECTOR OF THE PEOPLE AND ECOSYSTEMS PROGRAM
AT THE WORLD RESOURCES INSTITUTE

In Europe we are saving water through monitoring and targeting systems, which allow us to monitor our water use in real-time. So far, participating facilities have been able to reduce their water use by approximately 7 percent. We will complete installation in all facilities in 2010.

In addition to these system initiatives, we have also created a water conservation toolkit that helps individual production facilities identify further local water-saving opportunities through a series of annual audits and project suggestions. Through their use of the water conservation toolkit, our production facilities in the Central Business Unit made significant water efficiency investments in 2009. Our Lenexa, Kansas, facility, for example, installed a monometer, which monitors pressure and signals when to wash and filter rather than doing so at regular intervals. Solenoids have been added to ensure water is not wasted during line interruptions.

All of the water conservation measures implemented in 2009 will yield annualized savings of 300 million liters of water.