Coca-Cola Commits to Climate-Friendly Refrigeration Through Engagement with Greenpeace

(BUSINESS WIRE)--Days before the United Nations summit on climate change begins in Copenhagen, The Coca-Cola Company and its bottling partners today announced that 100 percent of their new vending machines and coolers will be hydrofluorocarbon-free (HFC-free) by 2015. Coca-Cola is committing to use its scale to aggregate demand and encourage supply as a means of accelerating the transition to HFC-free refrigeration equipment. This announcement is a direct result of work with Greenpeace that began in 2000, and a demonstration that phasing out the use of HFCs is a tangible and near-term action corporations can take to protect the climate.

The transition to HFC-free refrigeration will reduce the equipment’s direct greenhouse gas emissions by 99 percent. A recent peer-reviewed report by top scientists shows that HFCs will be responsible for between 28 percent and 45 percent of carbon-equivalent emissions by 2050 if society reduces carbon dioxide while leaving HFCs unchecked. Eliminating HFCs in the commercial refrigeration industry would be equivalent to eliminating the annual greenhouse gas emissions of Germany or Japan.

“Climate change is real and the time to act on solutions is now,” said Muhtar Kent, Chairman and CEO of The Coca-Cola Company. “Greenpeace has played a critical role in raising our awareness about the need for natural refrigeration. Our announcement today demonstrates a commitment to use our influence in the marketplace to drive innovation and help shape a low-carbon future.”

This step by Coca-Cola will help accelerate a market shift in commercial refrigeration away from HFCs. The Coca-Cola Company has invested more than $50 million in research and development to advance the use of climate-friendly cooling technologies. In 2010, The Coca-Cola Company and its bottling partners will purchase a minimum of 150,000 units of HFC-free equipment, effectively doubling the current rate of purchase to enable alignment with an interim goal to purchase 50 percent of all new coolers and vending machines without HFCs by 2012.

The Company and its bottling partners have approximately 10 million coolers and vending machines in place today around the world, comprising the largest element of the Coca-Cola system’s total climate impact. As a result of the commitment to eliminate the use of HFCs in this equipment, carbon emission reductions will exceed 52.5 million metric tons over the life of the equipment – the equivalent of taking more than 11 million cars off the road for one year.

“We welcome Coca-Cola’s commitment to help tackle climate change; large enterprises have both an opportunity and responsibility to change the game and Coca-Cola’s action leaves no excuse for other companies not to follow,” said Kumi Naidoo, Executive Director, Greenpeace International.

Coca-Cola currently utilizes two HFC-free solutions. Hydrocarbon refrigeration is used in smaller refrigeration equipment and carbon dioxide (CO2) is used in larger equipment. CO2 is a safe, reliable and energy efficient alternative with positive characteristics as a refrigerant. It does not deplete the ozone layer and it is 1,430 times less damaging to the climate than a typical HFC.

Already, as a direct result of Coca-Cola’s supply chain engagement, a major supplier has communicated its intention to build a dedicated CO2 compressor production facility, helping to meet the growing demand for HFC-free refrigeration options throughout the industry.

“Addressing climate change requires leadership and collaboration,” said Dr. Rajendra Pachauri, Chairman of the Intergovernmental Panel on Climate Change. “Just days away from the negotiations in Copenhagen, this announcement by Coca-Cola and Greenpeace demonstrates that investments in low-carbon technologies can make business sense.”

This announcement is a direct result of discussions with Greenpeace that began in the run-up to the 2000 Sydney Olympics. Greenpeace challenged Coca-Cola to go HFC-free in all of the equipment it supplied to the Games. By the Torino Games in 2006 and the Beijing Games in 2008, the Company was using all HFC-free technology at Olympic venues. For the past five years, the relationship between Greenpeace and Coca-Cola has become increasingly cooperative as both sought a cost-effective alternative to HFCs.

“At Coca-Cola, we are deploying our scale and working with suppliers to deliver cost effective alternatives to HFC, for us and for others,” said Rick Frazier, Vice President, Supply Chain, The Coca-Cola Company.

“Greenpeace increasingly works with businesses to make fundamental manufacturing and sourcing changes by connecting regulation, economies of scale and supply chain security,” said Amy Larkin, Director of Greenpeace Solutions. “Coca-Cola’s commitment today runs ahead of regulation and takes some fear out of rapid change.”

Coolers and vending machines impact the climate in three ways: through direct energy use (operating the machine), through chemicals used in the machine's insulation foam, and by leakage or improper end-of-life disposal of the refrigerant gas used in the cooling system. In addition to its refrigerant gas commitment, Coca-Cola developed a proprietary energy management system (EMS) that delivers energy savings of up to 35 percent and has placed over 1.7 million of these units around the world. In 2006, the Company completed the transition to HFC-free insulation foam for all new purchases of refrigeration equipment. Together, HFC-free insulation and HFC-free refrigerant will generate 99 percent fewer direct greenhouse emissions than traditional equipment.

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UPS Offers Shippers “Green” Option to Offset Carbon Dioxide

(BUSINESS WIRE)--UPS (NYSE:UPS) today became the first small package carrier to offer its customers the ability to offset the carbon dioxide emissions generated by the transport of their packages within the United States.

Under the UPS carbon neutral program, UPS will offer U.S. shippers the option of paying a small fee to calculate and offset the climate impact of the shipment of each of their packages. Detailed information about UPS carbon neutral services is available at www.ups.com/carbonneutral.

The per-package price for the optional service is $0.05 for UPS Ground services and $0.20 for UPS Next Day Air®, UPS 2nd Day Air® and UPS 3 Day Select® services. Based on customer feedback, a flat fee is used to make it simple and convenient for those wishing to participate. The price includes the cost of calculation, administrative costs associated with the service and the cost of the offsets.

Offsets will be purchased based on the carbon associated with participating customer shipments. To encourage customers to participate in this flat fee program, UPS will match the offset purchases, effectively doubling the offsets purchased in 2009-2010, up to $1 million.

The calculation to measure the CO2 impact of the customers’ shipments is based on a variety of current and historical operational data, including distance and transport mode. UPS’s calculation methodology and processes are verified by Société Générale de Surveillance (SGS), an inspection, verification, testing and certification company. The calculator is based on Greenhouse Gas Protocol, the most widely used international standard for carbon accounting and reporting. In addition, the carbon offset process is also certified by The CarbonNeutral Company.

“Our customers told us they wanted an easy, credible way to join us in our efforts to reduce the environmental impact of their supply chains,” said Bob Stoffel, senior vice president, engineering, strategy, supply chain and sustainability. “These services complement UPS’s own sustainability efforts while offering customers a new option to address the environmental challenges of their supply chains.”

The UPS carbon neutral service initially is available to the roughly 1 million U.S. customers who use UPS Internet Shipping with their UPS account number. UPS plans to extend the program to other UPS customers in 2010.

UPS Internet Shipping users simply check a box for carbon neutral shipping when they near the completion of their transaction on ups.com. UPS then will purchase high-quality certified carbon offsets. Initially, these will include offsets certified to the “Gold Standard,” “Voluntary Carbon Standard” or “Climate Action Reserve.”

In a second, related move, UPS also announced a carbon analysis service for its high-volume customers. Under this plan, available only on a contract basis, UPS will calculate the carbon impact of a customer’s entire UPS shipping activity. The calculations then can be used by the shipper to purchase offsets directly or through UPS. The proprietary calculator used for this service also is verified by SGS.

“We believe these steps are important not just for UPS, but also for our customers,” Stoffel noted. “Our global economy depends upon reliable transportation, so we all have a responsibility to do everything we can to reduce our carbon footprint on the environment.”

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