Understanding Our Water Risks

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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

Understanding Our Water Risks

DIRECT OPERATIONS, SUPPLY CHAIN AND WATERSHED

We seek to ensure that, over time, we maintain the integrity and quality of our water sources, and minimize our impacts on local communities and ecosystems. In 2008, we reported on the water risk assessments that we undertook in selected territories in partnership with The Coca-Cola Company. These assessments are part of the wider corporate ambition of the Coca-Cola system to act as responsible stewards of water.

During 2009, we continued to assess the vulnerability of our water sources and launched a program of Source Water Vulnerability Assessments (SVAs) for all of our production facilities in North America and Europe. SVAs investigate the likelihood that the water source will be affected by any quality and scarcity issues and allow us to look closely at any potential water risks to our business, the local communities, and the ecosystem. This initiative is a huge undertaking, which we aim to finish by 2013.

To date, we have completed SVAs at 12 of our production facilities — six in North America and six in Europe. By early 2010 all of our European production facilities will have completed this process and an additional eight in North America will have begun it.

To date, our SVAs have found no critical issues in terms of water availability or quality. Nevertheless, 23 production facilities — 21 in North America and two in Europe — are in areas of water stress. This issue is expected to affect two additional facilities in North America by 2025.

As a result of the SVAs completed to date, we have a deeper understanding of where our water comes from and what threatens the quality and quantity of our water supplies. More than 90 percent of the water we use comes from municipal sources; less than 10 percent of our water withdrawals come from on-site groundwater withdraws. Only three production facilities in North America and six in Europe extract groundwater using on-site wells.

Where we are using on-site wells, we take steps to avoid harming the water source and to avoid over-extracting. In Europe, our extraction is regulated by the government and we are required to have extraction licenses.

After production plants complete SVAs, the next step is to develop Source Water Protection Plans (SWPPs) for each facility in conjunction with water providers, government agencies, and community organizations to help address local water issues. SWPPs have already been developed in Europe at our facilities in Clamart, France, and Dongen, the Netherlands.

CEO WATER MANDATE

Our approach to water stewardship is anchored by the UN Global Compact’s CEO Water Mandate (CEOWM), which we signed in early 2009. This unique public-private partnership is helping companies around the world develop and implement water sustainability policies and practices. It helps us to better understand and manage water use in our operations.

We are working to implement the six core elements of the Mandate:

1. Direct Operations
2. Supply Chain and Watershed
3. Collective Action
4. Community Engagement
5. Public Policy
6. Transparency

Each section of this chapter relates to at least one of these six core elements. Collectively, our responses show our compliance with the sixth element: transparency. Below each section heading you will find one or more CEOWM subheadings, making this chapter our first Communication on Progress-Water (COP-Water), in accordance with the Mandate.

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