EHS management systems

We are committed to achieving the highest standards in Environment, Health and Safety (EHS). Our EHS policy and Standards help us manage issues such as energy and water use and waste, as well as the safety of those involved in making and selling our brands. Effective management of these is part of our long-term commitment to sustainability.

In 2004 we updated our EHS Standards, building upon previous achievements and raising the bar at all of our sites. These new standards are based on international ISO 14001 and OHSAS 18001 standards and in many parts of the world they are much more demanding than the local legislation requires. Nonetheless, we are determined to keep on improving our EHS performance. Our aim is for our manufacturing sites to have fully implemented and embedded these EHS standards by 2008.

All of our company-owned manufacturing sites are audited by our EHS assurance team to our own benchmark. Some sites are also externally audited and certified to one, or both, of the above international standards.

Percentage of manufacturing by tonnage covered by an externally certified Environmental Management System

The data on this chart does not take into account the sale of Europe Beverages, nor the acquisition of the Dr Pepper/Seven Up Bottling Group in early 2006. In the future, we will exclude Europe Beverages and include Dr Pepper/Seven Up Bottling Group.

We are continuing to invest in our systems, processes and facilities to improve the Company's environment, health and safety performance. Each month our businesses send their EHS data electronically to our central EHS team. This data is consolidated and checked before being reported to our Global Supply Chain Leadership Team for review quarterly and annually. It is also reviewed at least twice a year by our Board and Chief Executive's Committee.

We collect EHS data from company-owned manufacturing sites and from associated businesses where we have an equity stake and exercise management control. We do not yet include franchise bottlers in this process. Data for the Dr Pepper Seven Up Bottling Group, which we bought in April 2006, is not included in this report.

Independent assessment

In 2005 we made the decision to have our Environment, Health and Safety data collection processes independently assessed. This helps us test the robustness of our data reporting processes so that we can understand any areas that may require improvement. We appointed consultants, ERM, to verify our 2005 EHS data at site and regional level along with our data management and monitoring systems. We have also asked the Sustainability Team at Deloitte to provide assurance on the Group EHS performance data.