Coca-Cola’s problems are different from Wal-Mart’s in that they are largely long-term. The key ingredient in Coke products is water. The company produces its beverages in about 200 countries through local franchises, all of which require a reliable local supply of clean fresh water.

But water supplies are under severe pressure around the world, with most already allocated for human use. The little remaining unallocated fresh water is in remote areas unsuitable for beverage factories, like Arctic Russia and northwestern Australia.

Coca-Cola can’t meet its water needs just by desalinizing seawater, because that requires energy, which is also increasingly expensive. Global climate change is making water scarcer, especially in the densely populated temperate-zone countries, like the United States, that are Coca-Cola’s main customers. Most competing water use around the world is for agriculture, which presents sustainability problems of its own.

Hence Coca-Cola’s survival compels it to be deeply concerned with problems of water scarcity, energy, climate change and agriculture. One company goal is to make its plants water-neutral, returning to the environment water in quantities equal to the amount used in beverages and their production. Another goal is to work on the conservation of seven of the world’s river basins, including the Rio Grande, Yangtze, Mekong and Danube  all of them sites of major environmental concerns besides supplying water for Coca-Cola.

These long-term goals are in addition to Coca-Cola’s short-term cost-saving environmental practices, like recycling plastic bottles, replacing petroleum-based plastic in bottles with organic material, reducing energy consumption and increasing sales volume while decreasing water use.

The third company is Chevron. Not even in any national park have I seen such rigorous environmental protection as I encountered in five visits to new Chevron-managed oil fields in Papua New Guinea. (Chevron has since sold its stake in these properties to a New Guinea-based oil company.) When I asked how a publicly traded company could justify to its shareholders its expenditures on the environment, Chevron employees and executives gave me at least five reasons.

Image Credit... Alain Pilon

First, oil spills can be horribly expensive: it is far cheaper to prevent them than to clean them up. Second, clean practices reduce the risk that New Guinean landowners become angry, sue for damages and close the fields. (The company has been sued for problems in Ecuador that Chevron inherited when it merged with Texaco in 2001.) Next, environmental standards are becoming stricter around the world, so building clean facilities now minimizes having to do expensive retrofitting later.