The beverage industry is increasingly highlighting the problem of global water scarcity as a major ingredient.
In addition, water is vital for the production of the agricultural ingredients that many companies in the beverage industry rely on in their manufacturing processes.
It is also critical to the prosperity of the communities these companies serve and the ecosystems in which they operate.
Globally, water use has been increasing by approximately 1% per year for the past 40 years, according to the United Nations World Water Development Report.
It is also estimated that, due to population growth, socioeconomic development and changes in consumption patterns, water use will continue to grow at a similar rate between now and 2050. This increase is particularly concentrated in low- and middle-income countries, especially in emerging economies.
Beverage industry
For The Coca-Cola Company, water is a limited resource in many regions. These areas face unprecedented challenges. Overexploitation, rising demand for food, and other consumer and industrial products are major factors. These sectors rely on water for manufacturing processes.
The company also highlighted the increase in pollution. Growing concerns about potential contaminants have emerged. Moreover, poor water management and limited physical resources are significant issues. Financial access to water is also a challenge.
Additionally, socio-political tensions arise due to the lack of public infrastructure in certain regions. The impacts of climate change further worsen the situation.
As demand for water continues to increase around the world, and as water becomes scarcer and the quality of available water deteriorates, The Coca-Cola Company (TCCC) and its bottling partners may incur higher costs or face capacity constraints and the potential for reputational damage.
Carbon dioxide
There is growing concern that the gradual increase in global average temperatures, driven by higher concentrations of carbon dioxide and other greenhouse gases in the atmosphere, is causing significant changes in weather patterns worldwide. This has led to an increase in the frequency and severity of natural disasters.
As a result of changes in weather patterns, agricultural productivity in certain regions may decline, limiting the availability or raising the cost of key agricultural commodities such as sugarcane, corn, sugar beets, citrus, coffee, and tea.
Furthermore, climate change could exacerbate extreme weather events, leading to water shortages or flooding, and further deteriorate water quality in affected regions, potentially limiting water availability.