From Our CEO

Dear Stakeholders:

As the world’s largest beverage system, and as a company that is global and local, Coca-Cola has a unique opportunity to make a positive difference in the communities we proudly serve. We take this opportunity seriously and feel an abiding responsibility to make the most of it.

We support the United Nations Global Compact, and see our sustainability efforts first and foremost as the right thing to do – the continuation of responsible corporate citizenship that began in our earliest days as a company. At the same time, we know that sustainability is also a business imperative: our company can only be as healthy as the people and communities we strive to refresh. If we are to achieve our 2020 Vision goal of doubling system revenue and servings over the course of this decade, we will need to grow in a way that continues to enrich the world around us. I am pleased to report that we have made solid progress toward that end since our last sustainability report, the 2009/2010 Sustainability Review.

In May 2011, Coca-Cola took an important and exciting step in its sustainability journey by announcing the formation of a new global Office of Sustainability led by Bea Perez, our first Chief Sustainability Officer. While we have been making solid progress in recent years, this new appointment gives us an opportunity to create a unified team along with a more focused sustainability strategy.

In October 2010, we announced another important change in our Company that will shape our sustainability efforts and reporting, particularly in North America: our acquisition of the North American operations of Coca-Cola Enterprises Inc. (CCE) and the sale of our Norway and Sweden bottling operations to a new entity, Coca-Cola Enterprises, Inc. (New CCE). We believe this important renewal will result in an evolved franchise system that will enable us to better serve the unique needs of the North American market.

As Chairman and Chief Executive Officer, I regularly visit markets around the world. Over the past 18 months, I have had the opportunity to travel to more than 20 countries across four continents. I have seen firsthand how our commitment to sustainability is playing out in places all over the world. I have been gratified to find dozens of “reasons to believe.” Here are just a few from the last year:

In 2010, we improved our water use efficiency for the eighth consecutive year, reducing the average amount of water required to produce each beverage serving. Since 2005, we estimate that we have replenished 23 percent of the water used in our finished products, and we are gaining momentum toward achieving our goal of water neutrality by 2020. We also aspire to treat all wastewater from our manufacturing processes. As of the end of 2010, we had achieved 93 percent alignment, and by the end of 2011 we estimate 96 percent alignment with our stringent standards. To read more about our water stewardship efforts, please refer to the Water Stewardship section of this report.
In 2010, our system reduced its global carbon emissions by 2 percent, even as our production volume increased, putting us a step closer to our goal of growing our business but not our carbon footprint. We exceeded our goal of installing 150,000 hydrofluorocarbon (HFC)-free coolers in 2010, for a cumulative total of 277,000 such units. We increased that total to 400,000 by August 31, 2011. To read more about our efforts to conserve energy and cut carbon emissions, please refer to the Energy Efficiency and Climate Protection section of this report.
Our PlantBottle^TM technology, which allows us to replace 100 percent petroleum-based PET plastic with PET plastic that contains up to 30 percent material derived from plants, is becoming more widely used around the world. In 2010, we distributed 2.5 billion PlantBottle^TM packages in 10 major markets, saving more than 60,000 barrels of oil and sequestering the equivalent of nearly 30,000 metric tons of carbon dioxide from our PET plastic bottles. By the end of 2011, we expect to have shipped more than 7 billion PlantBottle^TM packages. To read about our progress in sustainable packaging, please refer to the Sustainable Packaging section of this report.
Our goal is to give back at least 1 percent of our operating income to communities worldwide through The Coca-Cola Company and The Coca-Cola Foundation. We exceeded that goal in 2010, giving $102 million. We provided earthquake relief in Japan and flood relief in the United States. In 2011, we also used our supply chain and logistics expertise to help deliver critical medicines to people in Tanzania. To read more about our corporate giving, please refer to the Corporate Giving section of this report.
We began to gain real traction with our 5 BY 20 initiative to empower 5 million women entrepreneurs by 2020. To read more about 5 BY 20, please refer to the Economic Opportunity section of this report. Furthermore, we have continued our commitment to promoting agricultural practices that are better for both farmers and the environment.
We continued working to make The Coca-Cola Company—and our entire system—a great place to work, starting with an unwavering commitment to workplace and human rights. We have increased the number of women in system leadership roles, going from 23 percent in 2008 to just over 27 percent in 2010. And we will build on this progress through employee development and recruitment. To read more about our workplace initiatives, please refer to the Great Place to Work section of this report.
We take seriously that people want a variety of beverages and packages to meet their needs and lifestyles. Since 2000, our average calories per serving have decreased by 9 percent globally. We have more than 800 low- and no-calorie beverages—nearly 25 percent of our global portfolio. We have committed to include calorie information on the front of nearly all our packages by the end of 2011 and to have a physical activity program in every country in which we operate by 2015. Today we support physical activity initiatives in more than 100 countries.

As I hope you will see as you review this report, we are making steady progress, but we are far from satisfied. As we work toward our 2020 Vision, we will challenge ourselves to quicken the pace of our progress. I look forward to sharing future updates with you. Thank you for your interest in our exciting journey of sustainable growth and sustainable communities.

Very truly yours,

Muhtar Kent
Chairman of the Board and Chief Executive Officer