Coke: First Steps on HIV/AIDS in Africa

Coke Applauded by Religious Shareholders for First Steps
on HIV/AIDS in Africa

Board Urging "Yes" Vote on Resolution Seeking Report to Shareholders

NEW YORK, N.Y.//March 9, 2004//Religious shareholders who are members of the Interfaith Center of Corporate Responsibility (ICCR) today declared victory in the wake of the decision by global beverage giant Coca-Cola (NYSE: KO) to support a shareholder resolution focusing on the HIV/AIDS pandemic in Africa.

The board of Coca-Cola is urging its shareholders to vote "yes" on Item 3, a resolution asking the company to review the economic impact on its operations of the HIV/AIDS pandemic in Africa. The filers of the resolution include the Adorers of the Blood of Christ of Wichita, KS (primary filer), Sisters of St. Joseph of Philadelphia, PA, the Congregation of the Sisters of Charity, Incarnate Word of Houston, TX, the Sisters of Charity of the Blessed Virgin Mary of Chicago, IL, the Society of Jesus - Detroit Province, and the Service Employees International Union Master Trust Fund (SEIU). Coca-Cola is one of ten companies facing ICCR-backed shareholder resolutions on the global HIV/AIDS pandemic.

"This is an impressive first step for Coca-Cola," said Sister Vicki Bergkamp, ASC, of The Adorers Of The Blood Of Christ. "We look forward to working with Coke to ensuring that this reporting step is fully and properly implemented. Investors need to know that the board at Coca-Cola has fully considered the risks and opportunities the company faces in the public health crisis in Africa, and has effective policies and processes in place to deal with the related challenges."

The resolution filers ask that the board of Coca-Cola review the economic effects on its operations of the HIV/AIDS pandemic, as well as tuberculosis and malaria. Filers asked for a report to shareholders within six months of the company's 2004 annual meeting, which is set for April 21st.

Sister Doris Gormley, consultant to the Society of Jesus - Detroit Province, said: "About 18 months ago, Coca-Cola and the Coca-Cola Foundation committed to ensuring that bottlers provide anti-retroviral treatment for HIV-infected employees and agreed to devote marketing money to spreading the AIDS awareness message throughout Africa. Currently, Coca-Cola provides treatment for its own employees, but bottlers who want to treat their workers must pay 50 percent of the cost. All bottlers have agreed to do so in principle, but slow implementation of the program has frustrated us. However, we are now very excited to see that the board has made the decision to move forward in a real and concrete way on this vital issue."

On March 4th, 2004, Coca-Cola issued a statement which read, in part, as follows: "It is in [a] spirit of collaboration that we welcome this opportunity to work with our share owners in coordinating additional resources and skills in the fight against HIV/AIDS ... Upon its publication, the report recommended in the proposal will also be available on our website for review by share owners. The Board of Directors recommends a vote FOR the proposal regarding report related to global HIV/AIDS pandemic."

BACKGROUND

More than 42 million people worldwide currently live with HIV/AIDS, over 95 percent of whom live in the developing world. Effective treatments for HIV/AIDS exist, but only four percent of those who need treatment have access to it. According to UNAIDS, the HIV/AIDS pandemic is "creating or aggravating poverty among millions of people, eroding human capital, weakening government institutions and threatening business activities and investment." The World Bank reports that in southern Africa and other affected regions "a complete economic collapse will occur" unless there is a response to the HIV/AIDS pandemic. Even "a delay in responding to the outbreak of the epidemic, however, can lead to collapse."

Business leaders at the 2002 World Economic Forum committed themselves to the fight against AIDS as a business priority. The 2002 King Report on Corporate Governance for the Johannesburg Stock Exchange calls for listed companies to disclose the nature and extent of plans, policies and strategies which manage the potential impact of HIV/AIDS in the company's activities.

The Global Reporting Initiative's HIV/AIDS Project, funded by the Bill and Melinda Gates Foundation, was established to develop a resource document for organizations to use when publicly disclosing information on their HIV/AIDS practices, policies, and performance. In June 2003, the Global Reporting Initiative released the HIV/AIDS Resource Document for use by corporations reporting on HIV/AIDS issues. It is available online at http://www.globalreporting.org.

CONTACT: Stephanie Kendall, for Interfaith Center on Corporate Responsibility (ICCR), (703) 276-3254 or skendall@hastingsgroup.com or ICCR Public Health Program Director Daniel Rosan, ICCR, (212) 870-2317 (office), or (510) 914-6398 (cell) or drosan@iccr.org.