{"id":11903,"date":"2016-11-04T15:38:53","date_gmt":"2016-11-04T19:38:53","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/coca-cola-is-opening-happiness-sustainable\/"},"modified":"2016-11-04T15:38:53","modified_gmt":"2016-11-04T19:38:53","slug":"coca-cola-is-opening-happiness-sustainable","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/coca-cola-is-opening-happiness-sustainable\/","title":{"rendered":"Coca-Cola: is \u201copening happiness\u201d sustainable?"},"content":{"rendered":"

\"ko-monkey-pic\"<\/a><\/p>\n

 <\/p>\n

Is \u201copening happiness\u201d sustainable?<\/strong><\/p>\n

Coca-Cola (NYSE: KO) is the largest beverage company in the world, with a market capitalization nearing $200bn (as of 12\/31\/2015), a corresponding net income of $7.4bn, and unparalleled brand awareness. The company has approximately 500 brands to its name, a distribution network that spans over 200 countries, and an aggregate 3800+ products globally. With such global scale, we would be remiss not to ask what they are doing to mitigate their global environmental footprint. [1]<\/p>\n

Ingredients for impact? <\/strong>[2]<\/p>\n

\"water-stewardship\"<\/a><\/p>\n

Though water is a key ingredient for Coca-Cola\u2019s product portfolio, it is also a finite resource that is increasingly in demand. Climate change exacerbates the issue by impacting both quality and quantity of water available for human consumption. [3] With that in mind, Coca-Cola aims not only to optimize its use of water, but also to protect freshwater resources and watersheds globally.<\/p>\n

\"packaging\"<\/a><\/p>\n

Given the high proportion of non-biodegradable materials used in Coca-Cola\u2019s packaging (e.g. aluminum, plastic), the company is especially focused on supporting recycling initiatives and incorporating renewable materials into its production process, e.g. the PlantBottle, shown below.<\/p>\n

\"plant-bottle\"<\/a><\/p>\n

\"energy-and-climate\"<\/a><\/p>\n

To reduce negative environmental externalities associated with \u201cmanufacturing processes, packaging formats, delivery fleet, refrigeration equipment and ingredient sourcing,\u201d the company is committed to improving its energy efficiency across while leveraging partnerships across non-profit, corporate, and government agencies.<\/p>\n

\"agri\"<\/a><\/p>\n

In addition to water, Coca-Cola products involve numerous agricultural ingredients (e.g. sugar, coffee, tea, fruit and corn). It is important that these products be produced in a sustainable way that mitigates impact on the environment. To do so, Coca-Cola has partnered with the World Wildlife Fund and Cargill \u201cto help local farmers increase corn yields, reduce post-harvest waste and reduce their environmental footprints.\u201d<\/p>\n

Goals & Progress?<\/strong> [2] [4]<\/p>\n

\"water-stewardship\"<\/a><\/p>\n

Goal:<\/strong> \u201cBy 2020: safely return to communities and nature an amount of water equivalent to what KO uses in finished beverages and production.\u201d Progress:<\/strong> \u201cAhead of target.\u201d From 2005 \u2013 2014: KO balanced approximately 94% of the equivalent amount of water used in finished beverages, i.e. ~154bn liters of water replenished.<\/p>\n

\"water-1\"<\/a><\/p>\n

Goal:<\/strong> \u201cBy 2020, improve water efficiency in manufacturing operations by 25% vs. 2010.\u201d Progress:<\/strong> \u201cOn track.\u201d Manufacturing water efficiency has improved for twelve consecutive years.<\/p>\n

\"water-2\"<\/a><\/p>\n

\"packaging\"<\/a><\/p>\n

Goal:<\/strong> \u201cWork with partners to recover and recycle equivalent of 75% of bottles and cans introduced by KO into developed markets by 2020.\u201d Progress: <\/strong>\u201cOn track.\u201d The company estimates a recovery rate of 61% in developed economies.<\/p>\n

Goal:<\/strong> \u201cRecover and recycle 50% of the equivalent bottles and cans introduced globally.\u201d Progress: <\/strong>\u201cOn track.\u201d Approximately 48% equivalent of KO bottles and cans are recovered and subsequently recycled.<\/p>\n

Goal:<\/strong> \u201cSource 25% of PET plastic from recycled or renewable material by 2015.\u201d Progress:<\/strong> \u201cOff track.\u201d Only 12.4% of packaging materials globally are made with renewable or recycled material. \"x-graphic\"<\/a><\/p>\n

\"energy-and-climate\"<\/a><\/p>\n

Goal:<\/strong> \u201cReduce carbon footprint of the \u2018drink in your hand\u2019 by 25% by 2020.\u201d Progress:<\/strong> Tentative reduction targets established through 2020. \"x-graphic\"<\/a><\/p>\n

Goal:<\/strong> \u201cBy 2015: all new cold-drink equipment will be HFC-free globally.\u201d Progress:<\/strong> \u201cOff track.\u201d 2014: Only ~30% of new equipment purchases were HFC-free. \"x-graphic\"<\/a><\/p>\n

Goal:<\/strong> \u201cGrow business\u2014but not carbon emissions from manufacturing\u2014through 2015.\u201d Progress:<\/strong> \u201cOff track.\u201d 2014: total emissions were 16% above 2004 figures. \"x-graphic\"<\/a><\/p>\n

Goal: <\/strong>\u201cBy 2015, reduce emissions from manufacturing in developed countries by 5% vs. 2004.\u201d Progress: <\/strong>\u201cAchieved.\u201d 2014: emissions 13% lower versus 2004.<\/p>\n

\"agri\"<\/a><\/p>\n

Goal:<\/strong> \u201cBy 2020, sustainably source key agricultural ingredients.\u201d Progress:<\/strong> \u201cOn track.\u201d Key ingredients to be sourced in accordance with Sustainable Agriculture Guiding Principles. \"x-graphic\"<\/a><\/p>\n

In conclusion\u2026<\/strong><\/p>\n

Coca-Cola\u2019s effort to mitigate its environmental impact is admirable. That said, many of the goals stated by the company are not only subjective, but also set for completion by 2020, calling into question the veracity of initiatives deemed to be \u201con track.\u201d Even still, many of their initiatives appear to be \u201coff track\u201d despite that they themselves set for the goals and corresponding timelines.<\/p>\n

What more can Coca-Cola do?<\/strong><\/p>\n

Plant bottles are still plastic. <\/strong>\u00a0Despite a more environmentally friendly production process, using ethanol from renewable sources (i.e. sugar cane), the output remains basically unchanged: a non-biodegradable plastic bottle. And unfortunately, consumers only recycle a small fraction of those bottles that they use.<\/p>\n

Recyclable does not mean recycled. <\/strong>In addition to company-led measures to offset environmental impact, Coca-Cola would be wise to amplify its efforts by educating its consumers on the importance of their participation in this same process.<\/p>\n

Corporate and consumer collaboration is not enough. <\/strong>[5] Coca-Cola has been proactive about establishing partnerships in order to move their environmental initiatives forward. They should pursue a similar strategy with to partner with state and foreign governments in support of bottle bills, \u201cstate legislation that creates a deposit system for beverage containers. In the 10 states where they’re enacted, bottle recycling rates range from 60 percent to 80 percent, dramatically higher than the national average.\u201d<\/p>\n

(796 words.)<\/p>\n

 <\/p>\n

Sources:<\/strong><\/p>\n

[1] http:\/\/www.coca-colacompany.com\/our-company\/infographic-coca-cola-at-a-glance<\/a><\/p>\n

[2] http:\/\/www.coca-colacompany.com\/content\/dam\/journey\/us\/en\/private\/fileassets\/pdf\/2015\/09\/2014-2015-sustainability-report.pdf<\/a><\/p>\n

[3] https:\/\/www3.epa.gov\/watersense\/docs\/ws_qanda508.pdf<\/a><\/p>\n

[4] http:\/\/www.coca-colacompany.com\/content\/dam\/journey\/us\/en\/private\/fileassets\/pdf\/2016\/Scorecard-2020SustainabilityCommitments.pdf<\/a><\/p>\n

[5] http:\/\/www.slate.com\/articles\/health_and_science\/green_room\/2011\/06\/plastic_by_any_other_name.html<\/a><\/p>\n

Photo credits: <\/strong><\/p>\n

http:\/\/www.coroflot.com\/jessica_tan\/ecoca-cola?city=Singapore&specialty=3&<\/a><\/p>\n

http:\/\/www.ibtimes.com\/coca-cola-company-ko-busted-greenwashing-plantbottle-marketing-exaggerated-1402409<\/a><\/p>\n

http:\/\/allinallnews.com\/wp-content\/uploads\/2014\/06\/green-coke.png<\/span><\/u><\/p>\n","protected":false},"excerpt":{"rendered":"

Has Coca-Cola taken measurable steps toward becoming a more sustainable business, or have they simply greenwashed their real environmental impact?<\/p>\n","protected":false},"author":2063,"featured_media":11929,"comment_status":"open","ping_status":"closed","template":"","categories":[1222,1218,1221,1162,1226],"class_list":["post-11903","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-beverage-industry","category-climate-change","category-coca-cola","category-global-giant","category-global-warming"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nCoca-Cola: is \u201copening happiness\u201d sustainable? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/coca-cola-is-opening-happiness-sustainable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coca-Cola: is \u201copening happiness\u201d sustainable? 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