Background and Genesis of the Independent Assessment

In late 2004, the University of Michigan, USA initiated an enquiry into the Coca Cola Company’s water management practices in India. The University of Michigan and Coca Cola agreed that an independent assessment would provide the information needed for the University to move ahead with its enquiry and agreed that TERI, a New Delhi based international research organization, would conduct the assessment guided by a Steering Committee comprising eminent experts. In addition, the parties agreed that the credibility of this effort would be strengthened if a neutral mediation and facilitation organization were called upon to facilitate the interactions between Coca Cola and TERI, and to help the parties ensure that the appropriate protocols and procedures were in place that would preserve and protect TERI’s and the study’s independence. The parties agreed that the Meridian Institute, an internationally recognized neutral mediation organization based in the United States, would be the appropriate organization to fill that role.

TERI’s Role and Approach

In late August 2006, the Scope of Work was finalized for TERI to conduct the independent assessment of Coca-Cola’s corporate policies and governance procedures related to water resources management and of Coca-Cola’s current water management practices and water quality at selected facilities in India. According to the Scope of Work, TERI was responsible for the:

a) Formation of an expert and credible Steering Committee to oversee and review implementation of the work plan and methodology.
b) Plant level on-site assessment of water management at six Coca Cola facilities in India. The on-site assessment included: primary monitoring of water balance and water quality; surveys; and interviews with key personnel from each facility, the community within the defined area, and other stakeholders to address the relevant issues associated with water stewardship.
c) Corporate-level assessment of Coca Cola’s policies, procedures, management systems, and compliance mechanisms relating to environmental protection and water resource management, and questionnaire-based secondary data collection from selected Coca Cola facilities in India.

In this context a Steering Committee of eminent persons headed by Prof.Yoginder K Alagh, eminent scholar and former minister in the Government of India, was constituted which approved the methodology, various protocols, and has periodically advised and guided the study.

A strong multi-disciplinary team of over 50 professionals has conducted the detailed assessment of the six plants, which is contained in the Report along with recommendations for corrective action wherever required.