NEW YORK STOCK EXCHANGE KO
Coca-Cola’s Energy Management & Climate Protection strategy focuses on three principal components of operational impact: cold drink equipment, manufacturing plants and the system-wide (including bottling partners) vehicle ﬂeet. The company’s vending machines and coolers produce three times the estimated emissions of its manufacturing facilities and more than ﬁve times the emissions from its ﬂeet. Therefore, Coca-Cola’s sustainable refrigeration program has been the cornerstone of the company’s climate protection eﬀorts. The company has also set a goal “to grow our business, but not the carbon,” which applies to system-wide manufacturing operations.
Summary Score: 65
The Coca-Cola Company owns four of the top ﬁve soft-drink brands (Coca-Cola, Diet Coke, Fanta and Sprite). The company makes or licenses more than 400 drink products in more than 200 nations. Other brands include Barq’s, Minute Maid, POWERade and Dasani water, while the company also sells Groupe Danone’s Evian and Dr Pepper Snapple Group brands in certain countries. Coke owns 35 percent of Coca-Cola Enterprises; 32 percent of Mexico’s bottler Coca-Cola FEMSA; and 23 percent of European bottler Coca-Cola Hellenic Bottling. The company had approximately 90,500 employees as of December 2007. Contact Information Chairman: E. Neville Isdell CEO: Muhtar Kent Website: www.thecoca-colacompany.com Address: 1 Coca-Cola Plaza, Atlanta, GA 30313-2499, United States
Board Committee/Member Board Role Audit Committee and Public Issues and Diversity Review Committee
Coca-Cola’s Audit Committee and Public Issues and Diversity Review Committee share responsibility for overseeing environmental-related policies and performance, including issues related to climate change. The Public Issues and Diversity Review Committee receives regular reports on issues of corporate responsibility from the executive-level Public Policy and Corporate Reputation Council. None identiﬁed. Score: 16 Chairman E. Neville Isdell says in his introductory letter to the company’s 2006 Corporate Responsibility Review, “We have one planet, and many parts of it are under stress — from population growth, shrinking supplies of clean water, climate change and conﬂict…Working together is the only way that we can create solutions equal to the issues we all face.” Isdell has spoken at numerous public forums on sustainability issues and climate change, such as the Global Compact Leaders Summit and the World Economic Forum. Isdell recently spoke at the Inaugural Greenpeace China Business Lecture where he issued a call to action to the commercial refrigeration industry to join Coca-Cola in investing in CO2-refrigeration systems to replace HFC-based systems. Isdell said, “We cannot wait for consumers or governments or
Corporate Governance and Climate Change: Consumer and Technology Companies
The Coca-Cola Company
technology or price to move us towards sustainable solutions. Instead, we must use another lever to make progress — collective choice.” Company Strategy Coca-Cola’s Energy Management & Climate Protection strategy applies to both the CocaCola Company and bottling partners. The strategy focuses on three principal components of operational impact: cold drink equipment, manufacturing plants and the system-wide vehicle ﬂeet. Energy eﬃciency is viewed as a central part of each of these areas. In addition to this mitigation strategy, Coca-Cola has also adopted a climate change adaptation strategy focused on water – the Global Water Stewardship program. The company also updated in 2007 its Position Statement on Climate Protection, which states, “Across the Coca-Cola system, we recognize that climate change may have long-term direct and indirect implications for our business and supply chain.” The Executive Leadership Team,...