Coca Cola Launches Water Conservation Initiative in China

Throughout history, explorers and later marketers have entered new territories to find new markets. But the carrying of one country’s customs to another can lead to both good and bad. Fortunately, American companies are beginning to realize that when they open manufacturing plants on other continents to tap those lucrative markets and supply them with American products, such as computers and soft drinks, they also have to think about the demands they make on the new market’s natural resources.

Again, the most interesting aspect of this to me is the way corporate boardrooms are taking the lead on examining the sustainability of their corporate operations. This week, Coca Cola announced a major environmental initiative in China aimed at water conservation. Coke will reduce the amount of water used in rinsing and sanitizing its bottles, and will also recycle waste water.

This is not an insignificant move. The amount of water Coca Cola uses a year in its products amounts to a two month supply of water for New York City, and Coke has begun to look at water use as a strategic factor in the sustainability of its business.

The Chinese government has also begun to look at the practices of multinational corporations that look at China as a new, lucrative market and create environmental problems as they tap that market. The companies are responding with both social programs and creative sustainability initiatives like Coca Cola’s.

Our client in China, PetroChina, is one of the most forward-thinking local Chinese companies on the issue of sustainability. It is rolling out Essential Suite™ across all of its sites, allowing it to track information and create new strategies. Perhaps China will be better at its sustainability initiatives than the U.S. was in the beginning of its own industrialization.

Add comment June 12th, 2007