Strategy and Management

As CCA broadened and diversified its business and product portfolio even further in 2007-2008, we continued to strengthen our approach to sustainability, deepening engagement with stakeholders and embedding sustainability considerations into business processes. While we publically report our sustainability work and targets to a number of voluntary agencies and have done so for several years, with the advent of new legislation in Australia in the lead-up to the Carbon Pollution Reduction Scheme (or Emissions Trading Scheme), we are now mandated to report our direct carbon dioxide equivalent emissions to the Federal Government.

As a fast-moving consumer goods company with a strong focus on responsible manufacturing, CCA has set continuous improvement targets for quality, environment and OHS performance for several years. Environmental sustainability, particularly in the largest part of our business, the Australian beverage operations, is an integral part of our business strategy. Testament to this long-term commitment was our achievement, in 2006, in becoming one of the world’s most efficient users of water in the non-alcoholic beverage manufacturing industry.

Under this strategy we will continue to reduce our direct environmental impacts and increasingly focus on co-operative activities with our customers. View our policies (Environment Policy; Purchasing Policy and Water Policy - Australia) at www.ccamatil.com.

While energy costs are a small component (3 per cent) of CCA’s production costs, energy reduction is a key component of business plans in Australia and New Zealand, and renewed focus is being placed on energy in Indonesia, Fiji and Papua New Guinea in 2008.

Governance

CCA reports key sustainability metrics under our four pillars – Environment, Marketplace, Workplace and Community - to the Compliance and Social Responsibility Committee of the Board. Each quarter, the Group provides reports to the Committee on compliance with laws including Occupational Health and Safety, environmental protection, product safety and trade practices. With social responsibility, the Committee reviews reports and makes recommendations to the Board, where appropriate, in respect to political donations, community support and any sustainability issues that are relevant to CCA.

In 2007, CCA’s Board consisted of eight members – seven non-executive directors and one executive director. They are David Gonski AC (Chairman, a non- executive director and independent of TCCC); Jillian Broadbent AO, Wal King AO, David Meiklejohn and Mel Ward AO (all independent non-executive directors); Irial Finan and Geoffrey Kelly (TCCC’s nominees and non-executive directors) and Terry Davis (CCA’s Group MD and an executive director). In 2008 Catherine Brenner joined the Board as a non- executive director.

For a full overview of CCA’s corporate governance structure see our Annual Report (www.ccamatil.com).

CCA donates to both major political parties in Australia, and all donations are disclosed on www.aec.gov.au.

Internal and External Standards

CCA’s environmental risk management and climate change response stems from the ongoing maintenance of our ISO 14001:2004 certified environmental management systems (EMS). This firm platform is in place across the Group for key beverage manufacturing operations and covers all aspects of environmental impact with a specific emphasis on continuous improvement. The key elements of the ISO 14001:2004 standard can be found at www.iso.org.

All of our Australia and New Zealand beverage operations are ISO 14001:2004 certified. Neverfail Springwater’s operations are currently preparing for certification.

CCA’s major production operations in Australia, New Zealand and Fiji have qualified for compliance with the TCCC Management System for Quality and Environment and all sites across the Group are working towards The Coca-Cola Quality System (TCCQS) Level 3 certification for Quality, Environment and Safety by the end of 2009.

Verification

Third party audit and verification of our integrated management systems (Quality, Environment and Safety) is currently performed by LRQA (Lloyds Register Quality Assurance) which audits against TCCQS requirements which has incorporated all of the key elements of ISO 9001 (Quality); ISO 14001 (Environment) and ISO 18001 (Safety) management system standards.

In addition to compliance audits, CCA uses Energetics Pty Ltd to compile its annual National Pollutant Inventory (NPI) and Greenhouse Gas (GHG) Challenge Plus reports. Furthermore, the major NSW Northmead beverage plant environmental and safety performance data was independently reviewed, and confirmed as compliant, by BECO, a leading Dutch environmental audit company.

Reporting

CCA regularly participates in independent surveys, which assess our commitment to environmental, social and community initiatives.

Dow Jones Sustainability Index (now called the Australian SAM Sustainability Index)

Launched in 1999, the Dow Jones Sustainability Index was the first global index to track the financial performance of the leading sustainability-driven companies worldwide. The index assesses leading companies based on a set of economic, environmental and social criteria. CCA has been included in the portfolio of sustainable companies since 2002 and was a “cluster” leader in 2008.

The index is prepared by Sustainability Asset Management (SAM). To find out more visit www.aussi.net.au.

Government reporting is undertaken as required and includes:

Energy Efficiency Opportunities Assessment & Reporting Schedule

The program encourages large energy- using businesses to develop greater energy efficiency through improving the identification, evaluation and implementation of cost effective energy savings opportunities. All CCA operations in Australia and New Zealand have undergone an EEO level 3 and level 2 energy audits respectively. To find out more visit www.energyefficiencyopportunities.gov.au.

The National Greenhouse and Energy Reporting Scheme (NGERs)

Mandated public reporting of energy and GHG emissions for Australian companies which will form the basis of the Carbon Pollution Reduction Scheme, or Emissions Trading Scheme. While CCA is a low energy user and a relatively low GHG emitter, our manufacturing business triggers the threshold under the National Greenhouse and Energy Reporting Scheme and we are required by law to report our energy use and GHG emissions to the Federal Government.

CCA began collating data for the start of the reporting period in July 2008. To find out more visit www.climatechange.gov.au.

The National Pollutant Inventory (NPI)

The NPI provides the community, industry and government with free information about substances emissions in Australia. The NPI shows emission estimates of 93 toxic substances and the source and location of these emissions. CCA has been fulfilling its mandatory reporting obligations in this area since 1999. To find out more visit www.npi.gov.au.

CCA also undertakes additional reporting on specific environmental initiatives, such as the following:

Greenhouse Challenge Plus

CCA Australia is a signatory to the Federal Government’s Greenhouse Challenge Plus Program. This is a voluntary agreement formed by Federal Government and industry to abate greenhouse gases. To read CCA’s annual Greenhouse Challenge Plus Reports see www.environment.gov.au.

Carbon Disclosure Project

The Carbon Disclosure Project (CDP) provides a secretariat for the world’s largest institutional investor collaboration on the business implications of climate change. Through the CDP, many institutional investors collectively sign a single global request for disclosure of information on Greenhouse Gas Emissions.

In 2006, CCA Australia voluntarily participated in the CDP for the first time. CCA’s CDP Report outlines the key issues and challenges CCA may face as a result of climate change and details measures we are taking to address these. We submitted our 2007 data to CDP6, and were included in the Australia/New Zealand Goldman Sachs JBWere Climate Leaders Index 2007, which recognises demonstrated leadership in disclosure to the investment community across a range of investment-relevant climate change issues. This puts us in the Top 25 of 141 ASX100 and NZX50 participating companies.

To visit the CDP go to www.cdproject.net.

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