Beverage industry: water scarcity and climate change 

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, it is clear that water is a limited resource in many parts of the world, facing unprecedented challenges due to overexploitation, growing demand for food and other consumer and industrial products whose manufacturing processes require water.

In this regard, the company also highlighted the increase in pollution and growing awareness of potential contaminants, poor management, lack of physical resources or financial access to water, socio-political tensions due to the lack of public infrastructure in certain areas of the world, and the effects of climate change. 

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 a gradual increase in global average temperatures due to a higher concentration of carbon dioxide and other greenhouse gases in the atmosphere is causing significant changes in weather patterns around the world and an increase in the frequency and severity of natural disasters. 

Decreased agricultural productivity in certain regions of the world as a result of changes in weather patterns may limit the availability or increase the cost of key agricultural commodities, such as sugarcane, corn, sugar beets, citrus, coffee and tea.

Climate change may exacerbate extreme weather, resulting in water shortages or flooding, and cause further deterioration of water quality in affected regions, which could limit water availability.