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https://www.ritimo.org/The-Plachimada-Struggle-against-C
oca-Cola-in-Southern-India
3. Greenhouse Gas Emissions from Refrigeration eco-friendly brands. This could hurt Coca-Cola’s
Coca-Cola’s biggest impact on climate change comes from market value and future success.
keeping its drinks cold. The refrigerators it uses worldwide
consume a lot of electricity and rely on refrigerants, which Key Events and Timeline of Plachimada
are chemicals that cool the machines but also trap heat in
the atmosphere. ● 1998-2000: Hindustan Coca Cola Beverages
Private Limited (HCCBPL), the Indian subsidiary
In the past, Coca-Cola used CFCs (chlorofluorocarbons), of Coca-Cola, acquired 34.4 acres of farmland in
which were later banned because they damaged the ozone Plachimada, Kerala, and started building a
layer. The company then switched to HFCs bottling plant. Operations began in March 2000,
(hydrofluorocarbons), which don’t harm the ozone but are drawing around 2 million liters of groundwater
powerful greenhouse gases—some are more than 1,000 daily.
times worse than carbon dioxide in terms of global ● Within 6 months (2000): Villagers noticed the
warming. groundwater became contaminated (milky white,
brackish) and unsafe for drinking and cooking.
Environmental groups, like Greenpeace, pushed for safer Farmers reported wells drying faster and reduced
options. One solution was Greenfreeze technology, which crop yields. Toxic sludge from the plant was
uses hydrocarbons like isobutane and propane. These are dumped on roadsides after initially being sold or
much better for the climate. Coca-Cola was hesitant at first given as fertilizer.
because of safety concerns (flammability), but eventually ● April 22, 2002: Local residents, mostly
began using these alternatives. indigenous adivasis, formed the "Coca Cola
Virudha Janakeeya Samara Samithy"
By 2020, 83% of new Coca-Cola refrigerators were free of (Anti-Coca-Cola People's Struggle Committee)
HFCs, using CO₂ or hydrocarbons instead. However, since and started protests and blockades demanding the
all these machines still need electricity—often produced by shutdown of the plant.
burning fossil fuels—they still contribute heavily to climate ● 2002 Protests: Multiple protests and rallies were
change organized, often met with police arrests and
violence. Protesters used symbolic acts like
throwing cow dung on the plant walls. Despite
repression, protests continued.
Impact of These Issues on the Company’s Operations ● April 7, 2003: The local governing body,
and Reputation Perumatty Panchayat, canceled Coca-Cola’s
license citing excessive groundwater use and
1. Disruptions and Higher Costs pollution. The company legally challenged this.
If Coca-Cola keeps having problems like water ● 2003-2004 Legal Battles: Several legal
shortages or stricter energy rules, it might not be proceedings took place, with the Kerala High
able to make or deliver its drinks on time. This Court and other government bodies involved.
could slow down production, raise costs, or even Mixed rulings were given on water extraction
shut down some factories—just like what limits and license renewals, often favoring the
happened in Plachimada. company temporarily.
● January 23, 2004: The "Plachimada
2. Bad Public Image and Protests Declaration" was adopted at a World Water
Coca-Cola has already been criticized for plastic Conference, emphasizing water as a fundamental
waste and hurting Indigenous lands. If the human right and opposing its commercialization.
company doesn’t fix these problems, more people ● February-March 2004: Kerala government
could protest or stop buying their products. This declared Palakkad district drought-affected and
could damage their brand and trust with restricted Coca-Cola’s groundwater use. The
customers. company stopped operations on March 9, 2004.
● 2005: The High Court ordered the Panchayat to
3. Losing Support from Investors and Buyers issue a license multiple times; the Panchayat
Today, many investors and shoppers care about complied reluctantly with short-term licenses.
the environment. If Coca-Cola doesn’t show real The company resumed operations but ignored
progress, people might stop investing in the regulations.
company, and consumers might choose more
● August 19, 2005: Kerala State Pollution Control 💧 1. Improve Water Efficiency in Bottling Plants
Board found toxic cadmium levels in plant sludge
and ordered Coca-Cola to stop production again. ● Use clean-in-place (CIP) systems that recycle
● November 2005: New groundwater laws cleaning water.
declared Plachimada an overexploited area, ● Install smart flow meters and sensors to
banning commercial water extraction. Coca-Cola monitor leaks or excessive use.
ceased operations permanently thereafter. ● Reuse rinse water from one stage to another
● 2010-2011: Kerala government set up a legal where hygiene standards allow.
● Invest in reforestation, wetland restoration, or Despite ongoing challenges, there have been some positive
river cleanups near its facilities. steps. In February 2023, the Brazilian government
● Work with NGOs and governments to replenish officially recognized 13 new Indigenous territories,
more water than it uses. covering about 1 million hectares. However, the Guarani
🤝 6. Engage with Communities Transparently environmental protection. Their ongoing efforts highlight
the need for continued support and advocacy to protect
their rights and preserve their culture.
● Share water usage data openly.
Questions:
Fair and Ethical Sourcing Standards – In Simple
Terms:
1. How did Coca-Cola survived from all
these controversies?
1. Respect for Human Rights
- Coca-Cola has survived numerous global
controversies—such as water depletion in
Suppliers must treat workers fairly, with:
Plachimada, India, and land grabbing issues in
Brazil involving its sugar supplier
● No child labor
Bunge—through a mix of strong crisis
● No forced labor
management, brand power, and corporate
● Safe and healthy working conditions
influence. When faced with backlash, the
● Fair wages and reasonable working hours
company often distanced itself from direct
blame, implemented ethical sourcing policies,
and launched public relations campaigns to pesticide exposure and respecting Indigenous
restore its image. territories. Coca-Cola has committed to fair and
- For example, through its “World Without ethical sourcing standards that include verifying
Waste” campaign, Coca-Cola pledged to collect suppliers do not violate Indigenous rights or
and recycle one bottle or can for every one cause environmental harm.
sold by 2030, use 100% recyclable packaging,
and increase the use of recycled PET
(rPET)—all widely promoted to boost its public
image. It also adopted strict ethical sourcing 3. Should corporations be responsible after closing
policies, including the Supplier Guiding damaging facilities?
Principles and Human Rights Policy, which
require suppliers to respect land rights, obtain Yes, corporations should remain responsible even after
Free, Prior, and Informed Consent (FPIC) closing facilities that have caused environmental or social
from Indigenous peoples, and ensure compliance damage. Closing a harmful facility does not erase the
with labor laws. Its iconic global brand and negative impacts it may have had on local communities,
emotional connection with consumers helped ecosystems, or public health. Corporations have an ongoing
maintain customer loyalty despite criticism. ethical and sometimes legal obligation to remediate the
Additionally, Coca-Cola’s economic damage, compensate affected communities, and prevent
contributions, such as job creation and similar issues in the future. Accountability after closure
investments in local markets, gave it influence demonstrates corporate responsibility and commitment to
with governments, which made strict penalties sustainable and fair business practices, helping rebuild trust
or operational bans less likely. These factors with stakeholders and reduce long-term harm.
helped Coca-Cola remain resilient and continue
thriving as one of the world’s most powerful Ethical sourcing policies are guidelines or rules that
beverage companies. companies follow to ensure the products or raw materials
they buy are produced in a way that respects people,
communities, and the environment. This means the
company makes sure that their suppliers:
2. Who is responsible for addressing
pesticide exposure on Indigenous ● Treat workers fairly and safely (no child labor,
lands? fair wages, good working conditions)
The responsibility for addressing pesticide exposure on ● Respect the rights and lands of Indigenous
Indigenous lands related to Bunge and Coca-Cola involves peoples and local communities
multiple parties:
● Use environmentally friendly and sustainable
a. Bunge – As a major global agribusiness and farming or manufacturing practices
supplier of raw materials like sugar and soy,
Bunge is responsible for ensuring that its ● Avoid harmful practices like pollution,
agricultural practices, including pesticide use, deforestation, or exploitation
comply with environmental and human rights
standards. This means Bunge should implement
sustainable farming practices, reduce harmful In short, ethical sourcing means choosing suppliers who act
pesticide use, and respect Indigenous land rights. responsibly and ethically throughout their production
They are also expected to conduct due diligence process, so the final product doesn’t come at the cost of
to avoid sourcing from farms that harm human rights or the environment.
Indigenous communities.
WHY CHOSE COCA-COLA
b. Coca-Cola – As a large buyer and user of
agricultural commodities supplied by companies 1. Global Influence and Visibility:
like Bunge, Coca-Cola holds responsibility for Coca-Cola is one of the most recognizable and
overseeing its supply chain. Coca-Cola must influential brands in the world, operating in
ensure that suppliers like Bunge follow ethical over 200 countries and serving billions of
sourcing policies, including minimizing beverages daily. Its large-scale operations
make it a significant case study for management in practice.
understanding the environmental impact of
multinational corporations.
III. Environmental and Sustainability Risk
2. Environmental Impact and Controversies: Management
The company has faced ongoing scrutiny for its
environmental practices, especially regarding: A. Corporate Policies and Environmental Programs
Water consumption and scarcity
Plastic waste and packaging pollution Coca-Cola has four major environmental goals:
Carbon emissions and climate impact
1. Cutting Carbon Emissions: The company aims
to reduce its carbon emissions by 25% across its
These issues make Coca-Cola a relevant subject value chain by 2030. It follows global climate
for examining the balance between business standards through the Science Based Targets
operations and environmental responsibility. initiative (SBTi).
Coca-Cola was selected because it exemplifies a globally 3. Sustainable Sourcing: It works with certified
influential company facing significant environmental groups like Bonsucro (for sugar) and Rainforest
challenges, making it ideal for evaluating the Alliance (for tea) to ensure ingredients are
effectiveness of corporate sustainability and risk grown ethically and sustainably.
4. Packaging Waste Management: Coca-Cola explore plastic-free alternatives.
launched its “World Without Waste” campaign.
○ These innovations show the company is
Coca-Cola launched its “World Without Waste” looking for long-term solutions to
campaign in 2018 with the goal of helping reduce plastic plastic pollution.
pollution worldwide. The company committed to collecting
and recycling one bottle or can for every one it sells by
2030. It also aims to make 100% of its packaging C. External Validation and Accountability (In Simple
recyclable by 2025 and to use at least 50% recycled Terms)
content in all packaging by 2030. To support this,
Coca-Cola is redesigning its bottles to use less plastic, 1. Third-Party Audits and Reporting
creating plant-based bottles like the PlantBottle, and
increasing the use of reusable and returnable packaging, Coca-Cola doesn’t just check its own progress—it asks
with a target of 25% of its drinks sold in refillable outside experts like DNV GL and Ernst & Young to
containers by 2030. review what it’s doing for the environment. These
companies double-check Coca-Cola’s efforts, such as
The company is also working with partners like the Ellen how much water and energy it saves or how much pollution
MacArthur Foundation, World Wildlife Fund (WWF), it reduces.
and Ocean Conservancy to improve recycling systems in
over 200 countries. In the U.S., Coca-Cola added a clear Coca-Cola also shares this information with the public by
“Recycle Me Again” message to bottles and eliminated 80 releasing a Sustainability Report every year. This report
million pounds of new plastic, which is equal to around 2 shows what the company has done, what it plans to do, and
billion bottles. While these steps are seen as progress, whether it’s reaching its environmental goals.
critics argue that Coca-Cola should reduce its use of
single-use plastic more aggressively and focus more on 2. Global Commitments and Certifications
reusable solutions. Still, World Without Waste reflects
Coca-Cola’s effort to take responsibility for its packaging Coca-Cola has joined RE100, a global group of companies
and support a more sustainable, circular economy. that promise to use 100% renewable energy (like wind or
solar power) instead of energy that causes pollution.
Goal: Make 100% of packaging recyclable by 2025. By
2030, collect and recycle the equivalent of every bottle or The company also gets certifications to prove it’s
can sold. following sustainable practices:
2. Sustainable Packaging Innovation: Coca-Cola Because of this, Coca-Cola is now investing more in
introduced PlantBottle™, made with up to 30% reusable bottles and containers, especially in places like
plant-based material and fully recyclable. Latin America and Europe. But critics say the company
is not moving fast enough or doing enough to truly reduce
○ In 2023, Coca-Cola Europe tested a the harm it causes to the environment.
paper bottle prototype to
IV. Evaluation and Analysis (Simplified and Specific) 2. How Coca-Cola Does It
A. Are Coca-Cola’s Sustainability Efforts Real or Just Coca-Cola uses a plan called the Principles for
for Public Image? Sustainable Agriculture (PSA). To follow this, they do
the following:
Coca-Cola claims strong environmental actions in its 2023
sustainability update: a. Work with Certified Suppliers
1. Water Management Coca-Cola buys from farms that are certified by trusted
groups like:
○ Returned 148% of the water used in
finished beverages to nature and ● Rainforest Alliance (for tea and coffee)
communities. ● Bonsucro (for sugarcane)
● Fairtrade (for sugar, cocoa, etc.)
○ Improved water efficiency: now uses ● SAI Platform (for fruits and other crops)
1.78 liters of water per 1 liter of
beverage (10% better than in 2015). These groups check farms to make sure they meet high
standards.
How do they return water?
b. Audits and Checks
They return water by:
● Coca-Cola and outside experts visit farms to
● Helping build wells or water systems for check if they are following the rules.
people. ● They look at things like how much water is
● Cleaning and releasing water back into rivers used, how workers are treated, and if the land
after using it. is being protected.
● Planting trees or protecting wetlands, which
help store water in nature. c. Training Farmers