Valuing Water in The Coca-Cola Company

Water replenishment & Creating Natural Capital through Nature-Based Solutions

The Coca-Cola Company has set a goal for replenishing 100% of water used in finished beverages. Water restoration is not just about water volumes. Through restoring nature and providing ecosystem services, water replenishment can bring many additional societal benefits.

For The Coca-Cola Company, water replenishment projects are an instrument for managing risks in the watersheds in which they operate. Through the co-benefits of ecosystem services, water replenishment projects in fact act as Nature-Based Solutions to societal challenges. TCCC wants to understand the added value of these co-benefits for nature in order to be able to better optimise project investment and prioritisation.

The potential of Nature-Based Solutions is clear, but the challenge lies in measuring, understanding and managing this potential across the diverse range of projects worldwide.

About the project:

The Coca-Cola Company undertakes over 250 water replenishment projects worldwide, focused on nature restoration and community access to water & sanitation. TCCC routinely collects information on m3 of water restoration, but not for other natural capital benefits.

This project concerned developing a methodology for routinely

• collecting natural capital data, and
• valuation of natural capital benefits from water replenishment projects, all in line with the requirements of the Natural Capital Protocol.

This included:

• Materiality assessment – based on screening 40 projects in TCCC’s European business units
• Methodology development – setting data collection requirements that are realistic for nature restoration specialists (but not valuation experts) to implement. Combining this with state-of-the-art science for economic valuation of ecosystem services.
• Piloting the methodology for 7 projects diverse projects throughout Europe, including detailed sensitivity analysis of results and each methodology.
• Developing an in-depth methodological guidance document

Benefits for The Coca-Cola Company:

• Using the developed methodology, the water replenishment can be measured for any future project. In addition to providing water, these co-benefits include carbon sequestration, water quality improvement, flood protection, recreation, as well as food & raw materials provisioning.
• Managing water replenishment projects as Nature-Based Solutions allows to integrate their benefits in other company activities, for example for carbon strategy and community investment projects.

The results and findings of the project can be found in this White Paper, created in collaboration with denkstatt group and Easton Consulting. Furthermore, the methodology was externally verified by two independent reviewers.
Additional information on Coca‑Cola Europe’s water replenishment projects can be found here.

Country: Europe
Industry: Food and Beverage 

Carbon in the cycle – CO₂ from cement manufacture for plastic production

“denkstatt has made an important contribution to the development of the C2PAT pilot project through its high level of expertise in the field of renewable energies and national and international funding regimes.” (Dr. Joseph Kitzweger, Director Sustainable Development – Lafarge Zementwerke GmbH)

In a joint research project, the companies Lafarge, OMV, VERBUND and Borealis are taking a major step towards climate change mitigation by planning a carbon capture and utilisation (CCU) plant, which uses the CO2 from cement production as a raw material for renewable plastics. In the project “Carbon2ProductAustria” (C2PAT), a cross-sector value chain is to be created that combines the know-how and the plants of the companies and jointly contributes to innovative emission reduction.

The full-scale pilot plant intends to capture almost 100% of the annually emitted 700,000 tons of CO2 at Lafarge’s cement plant in Mannersdorf, Austria.
In an upstream demonstration plant, CO2 quantities of 10,000 t/a are to be captured and converted into renewable plastic as early as 2024. Hydrogen is used for the process. The captured gas will be processed into plastic in the plant built by the consortium Lafarge, OMV, Verbund and Borealis.
This project requires the further development of processes such as the safe transport of hydrogen and the use of “waste CO2” as a raw material for chemistry and can thus also serve as a sink for carbon.

denkstatt was supporting the project consortium in the drafting of the Technical Feasibility Study for the application of EU Innovation Fund support.

Country: Austria
Industry: Manufacturing Industry

UNIQA – Answering the CDP questionnaire

“We appreciate the expertise of the colleagues from denkstatt and their experience in dealing with CDP rating processes, which we were able to use well for the further development of climate-oriented disclosure.” (Andreas Rauter, Head of Sustainability, Ethics & Public Affairs)

The Carbon Disclosure Project (CDP) is a non-profit organisation founded in London in 2000. CDP manages the world’s most comprehensive disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Notably, it is a voluntary disclosure of data on environmental issues. The data is collected annually from the participants by means of a questionnaire. The data provided is subjected to an evaluation process that provides information on the progress of companies and cities with regard to measures in the areas of climate change, forests and water security. The questionnaires are divided into 3 separate sections, which are answered independently of each other. A company can also choose to answer only one questionnaire.
On the one side, the rating provides investors with information about the company’s commitment to the environment. On the other side it provides companies, cities and national and regional governments with basic information about their current status quo so that they can make the right decisions to help shape a sustainable economy that works positively for people and the planet in the long term.

denkstatt Austria and sustainable AG, member of denkstatt group located in Germany, had the pleasure to support the UNIQA Group in their first disclosure process on the CDP Climate Questionnaire in 2020.

Country: Austria
Industry: Financial sector

METRO AG – Sustainable Value Creation

METRO is an internationally leading specialist in wholesale, operating more than 750 wholesale stores in 25 countries. As such, METRO has a significant global presence. However, this presence extends far beyond store doors; the activities that METRO induces along its value chain can have significant impacts. There activities have implications for environmental and social sustainability, but they also contribute to economic benefits for hundreds of suppliers and thousands of customers. Understanding the breadth of METRO’s global influence required a holistic approach – how can we compare the economic value generated by suppliers and customers with the impacts on human and ecosystem health and well-being from harmful emissions, resource use and potentially exploitative labour? And how can we do so for all impacts from farm to plate? From the rearing and planting of agricultural resources, through the entire process of converting them to products that METRO sells, the activities of operating METRO’s stores, down to the impacts of the businesses that METRO supplies – those in the HoReCa (hotels, restaurants and catering) and Traders (reseller) sectors? This challenge was met with a Sustainability Accounting assessment of the value chain of METRO’s product assortment – a measurement of economic, social and environmental impacts conducted in the language business best understands – that of monetary value. This enabled METRO to compare many different types of impacts on common footing. The results of the study indicated that for every €3 of economic value created by METRO, these is an associated €1 of negative impacts on society and the environment from the use of natural and social capital. Viewed as a net result, METRO’s activities across the value chain bring slightly less that €1 of net positive impacts for each €1 of turnover. Stated simply – METRO’s global contribution is net positive. This study was prepared using the guidance of the Natural Capital Protocol and the draft version of the Social & Human Capital Protocol. The results of such an assessment are not intended to be interpreted in the same way as financial results; they do not represent a cost or liability to METRO in conventional sense. Rather, they are a novel and more holistic way of estimating a business’ influence on the economy, environment and ultimately society. The impact of the project: Our project was recognised as a “Leading Practice Example” in the food sector by RobecoSAM and contributed to METRO winning the title of Industry Leader in the “Food and Staples Retailing” category of the Dow Jones Sustainability Index, for the 4th year in a row. This project built on our previous work with METRO, which again contributed to METRO being crowned Industry Leader by the DJSI.

Country: Bulgaria Industry: Food

E.ON Hungária

When we identified our needs, our primary vision was to obtain stable, functional and transparent software which simplifies the company’s environmental tasks and processes. Record keeping should be practical, and preparation of the analyses should be carried out only with “a few clicks”. Due to the diversity of environmental data, we needed a package covering almost all branches of our environmental issues (waste management, water protection, air protection and groundwater). In addition, it supports our Environmental Management System. After a selection among market participants, we chose the E-Toolbox which was developed and operated by denkstatt Hungary. E.ON Hungária and its subsidiary is active in most parts of the country. In its operational area 19 big units operate as well as a large number of smaller sites. Before having been introduced to the software it was a huge challenge to record environmental data and to perform a variety of data services. In most cases our processes are multi-stakeholder processes, so there was a need for a system that could handle a variety of situations in order to simplify the duties of the environmental staff. The introduction of the E-Toolbox software was carried out in several stages in our company. First, the application data from previous years was implemented in order to create a database which we were already able to build up in the year of introduction. The data were provided by the Environmental Department to the staff of Denkstatt Hungary, who filled in our database. After the development of the databases, we started by making the Waste Management module compulsory for the relevant staff. Subsequently, this has been followed by the introduction of other modules of the software.

Country: Hungary Industry: IT Solutions

LeadSUS

One world leader said: “Leadership and learning are indispensable to one another.” (John F. Kennedy). The general objective of the project was to transfer and integrate sustainability leadership skills at the level of European industry and institutions. The main project aim of LeadSUS was to support organizational leaders and employees in understanding the strategic implications of sustainability by using innovative and creative approaches. The training drove leadership understanding, strategic business approaches, enthusiasm, innovation and the consideration of environment and social aspects as key issues toward sustainable development. The project target group were managers and employees, representatives of private organizations (industry-related) and public organizations with environmental, social or business development-related responsibilities, and employed Master’s degree students. During the project lifetime, the new Sustainability Managers developed new competences and skills on the following topics: All participating trainees had the opportunity to certify their newly acquired skills and competences within the ECQA (European Certification and Qualification Association) framework, on two performance levels: foundation and/or advanced. The training platform is linked to the ECQA organization, and can be reached via http://leadsus.bicero.com/trainings/online-training. LeadSUS was funded by the EU as part of the Leonardo da Vinci program and was deployed in 2013-2015. The project has generated new perspectives on sustainability issues and created a new qualification, namely the EU Sustainability Manager, an EU-certified qualification within the ECQA body. More than 200 participants (online and in class) from across Europe were trained with the help of 20 trainers in Romania, France and Slovenia.

Country: Romania

MAM – baby care

denkstatt advised MAM, a manufacturer of baby products, during the construction phase of their sustainability report. In the course of the definition of the most important topics within the range of sustainability relevant for MAM, the carbon footprint of their most significant products was calculated at the customer’s request. In this process, the whole emergence of CO2 during the product’s lifetime cycle is examined, and it is also determined during which stages (primary production, production, transport, utilisation or disposal) the largest amount incurs. In the course of this analysis and through detailed observation of a single product during its lifetime, it was discovered that the biggest energy expenditure and thereby onset of CO2 in connection with typical MAM products like comforters and baby bottles does not lie in the production or transport, as originally believed, but in the utilisation stage. So it is not about how laboriously the products are manufactured (it is about this as well of course, but not primarily), but more about how they are used. Therefore, the biggest wastage lies with the consumer and not the manufacturer. Of course this does not apply to every product, but in this case it did. Especially while heating, cleaning and sterilising MAM baby bottles, 98 percent of CO2 emissions incur. (Find more details here.) The basis of calculations (database) and their accompanying realisations made it possible for our customer MAM to work determinedly on the optimisation of energy consumption in the utilisation stage. With the achievement of an incremental product innovation. Due to the relevant data the different processes along the life cycle were evaluated and an interesting item of information was discovered: the box used for transport and sterilization of the comforter not only provides a good way to transport the comforter; it also leads to huge energy and CO2 savings (up to 77% ). If you fill the box with water, put the comforter in and heat it in the microwave you have a perfect and sustainable sterilization method. MAM was not only able to use this knowledge and the necessary data and facts for the development of a new add-on which makes a considerable difference to the efficiency of the existing product, but also for communication with its consumers. A CO2 data processor that can calculate their energy and CO2 efficiency is available for parents. (www.mambaby.com/at/co2-rechner) With the aid of concrete data it could be shown that not the production itself, but the utilisation stage is energy intensive. With this, MAM not only demonstrated where the biggest impact lies, but also made use of the chance to develop and provide a solution. Because MAM’s main target group are young parents, this action as well as the increased transparency led to a great increase in trust and thus benefits for the image of the brand.

Country: Austria
Industry: Manufacturing Industry

Lignorefinery

Using lignified biomass as raw material for the production of new materials. The three projects Lignorefinery I and II and ITACON were intended to develop strategies for the complete use of lignified biomass as a raw material. This work was conducted by the University of Natural Resources and Life Sciences (BOKU) Vienna, denkstatt GmbH, Österreichische Bundesforste, the TDZ Ennstal and the technology partner Fermtech.

The focus is on utilizing lignocellulose biomass in a modular way and on making various products that, in the past, could only be manufactured from petroleum. For instance, it is possible to make dimensionally stable aerogels based entirely on lignin. Aerogels are ultra-light, highly porous materials with a growing number of technical applications, such as high-performance thermal and acoustic insulation, substrate for catalysts and filter systems, and electrode material for electrochemical applications. The second major stream was the production of lactic acid and itaconic acid from biomass sources. Itaconic acid, another precursor for polymers, could until now only be produced under very specialized conditions. Itaconic acid and its derivatives can be employed as building blocks in chemical synthesis. For instance, it can be decarboxylated and then esterified to make methyl methacrylate, which is then turned into plexiglass.

denkstatt’s task in this 5-year long series of projects was overall project management and the development of the business plan as well as the ecological assessment of a theoretical lignorefinery. The final goal was to attract investors for the idea and find a production site for actually producing these new materials. Our worked showed that the production is economically competitive on an industrial level and has better ecological performance than the compared product based on petroleum. 

Country: Austria