The 3Ws of the Coca-Cola Foundation

As development practitioners, government representatives and business leaders converged on Stockholm, Sweden, to discuss how water-related issues can be addressed effectively and efficiently in the post-2015 development agenda, Coca-Cola made a proclamation of its own. On World Water Week, the beverage giant announced that it was close to hitting its goal of replenishing “all” of the water it has consumed in the production of its products. It was in 2007 when Coca-Cola made the decision to “return” the same amount of water it uses based on sales volume. For example, if it used 293.2 billion liters of water to produce 135 billion liters of Coca-Cola products — as is the case in 2011 — then it promises to return as much back. This initiative is part of the company’s water stewardship policy, a move some experts claim was prompted by the backlash it received in countries like India, where activists highlighted the negative impact of the beverage maker’s operations on communities such as in Kerala or Andhra Pradesh, where Coca-Cola’s use of groundwater allegedly dried up farm lands and water wells. Whether or not the initiative was launched in response to criticism or if it came as a result of an honest realization of how its operations are affecting water scarcity, water has become a key focus area not just of the beverage company but even its philanthropic arm as well. Apart from working to reduce its use of water through wastewater recycling, as part of its water stewardship policy, Coca-Cola engages and supports hundreds of projects focused on conservation, as well as those that address access issues, including smarter use of water resources such as through the installation of rainwater harvesting structures and water treatment systems. Many of these projects are funded through the Coca-Cola Foundation, which has awarded $24.98 million in grants to development organizations — including foundations, U.N. agencies and civil society groups — in the first half of 2015. One-third of these grants went to water and environment-related projects. Despite its clear focus on water, however, the Coca-Cola Foundation provides grant funding to projects in other sectors as well. Devex looked into the foundation’s 2014 project-level data to see how it disbursed grants that year. Consistent with the foundation’s list of priority areas — water, women and well-being — water received the highest grant funding in 2014. Well-being, which the foundation lists as active healthy living and covers activities promoting fitness, came in second with women’s empowerment placing fourth. Even as the foundation focuses on encouraging active healthy lifestyles, Coca-Cola was criticized in a New York Times article for promoting that exercise, not cutting calories, is the way to maintain a healthy weight. Obesity is a big problem not just in developed countries such as the United States, but also in developing nations. Some health experts argued this is a “desperate” move on the part of the beverage giant to boost sales amid calls to reduce soda consumption. Women empowerment — which, based on the grants data, focuses on helping women become economically self-sufficient and giving them opportunities to start their own businesses — accounts for just 6 percent of the total portfolio in 2014. Further, the bulk of these grants were awarded to projects in the United States. Education — the sector that received the third-largest grant funding in 2014 — was the foundation’s primary focus up until 2013, when it became part of Coca-Cola’s Office of Sustainability. Regional focus While the Coca-Cola Foundation funds projects in developing countries, the bulk of its grant disbursements in 2014 still went to North America, which received about a third of financing that year. This is followed by countries in Eurasia and Africa, which together $19.38 million. A closer look at the data however reveals disbursements focused heavily on three countries: Swaziland ($10.25 million), Russia ($1.05 million) and Turkey ($1.1 million). It’s difficult to assess which countries benefited from other large grants, such as one worth $2.5 million that is coursed through different organizations that include the U.N. Development Program, as they are meant to be implemented in multiple countries. Grants in Asia-Pacific and Europe are at $13.25 million and $12.29 million, respectively. Latin America and the Caribbean had the smallest share at $9.05 million. While grants data suggest that the foundation funds efforts mainly in middle- and high-income countries, supported projects in developing countries seem to underscore its focus on water. India, for instance, has the most number of grants for water-related projects — ranging from rainwater harvesting, groundwater replenishment and watershed management to providing access to safe drinking water and sanitation facilities to students in schools. In terms of dollar value, however, Swaziland absorbed the largest share of water-related grants. It received a single grant worth $7 million as part of Coca-Cola’s Replenish Africa Initiative. In April 2015, Coca-Cola announced an additional $35 million toward RAIN, bringing total commitments to $65 million. The initiative also covers sanitation and hygiene issues. While Coca-Cola has won praise for its commitment to water efficiency efforts, not everyone is impressed. Critics argue that while its efforts are laudable, its initiative shouldn’t be called “replenishment” as it doesn’t really return water to its source. Further, the company’s water-reduction efforts have failed to stem criticism in India. In mid-2014, following wide protests, local government ordered the closure of Coca-Cola’s bottling plant in Varanasi, India. Check out more funding trends analyses online, and subscribe to Money Matters to receive the latest contract award and shortlist announcements, and procurement and fundraising news.