Coca-Cola’s Cape Town Crisis: Examining Companies’ Water Rights Obligations in a Changing Climate

Abstract

While Coca-Cola portrays itself as a ‘water neutrality’ leader, its failures during Cape Town’s water crisis exemplify the changing nature of corporate human rights obligations in the face of climate change. Between 2015 and 2018, drought conditions plunged Cape Town into a crisis, leading to increasingly strict household water restrictions and depriving families of their constitutionally guaranteed water allowance.1 However, in December 2017, when Cape Town officials called for a 45% reduction in commercial water use, Coca-Cola’s local independent bottler – Coca-Cola Peninsula Beverages (CCPB) – refused to reduce its 44 million-litre monthly withdrawals.2 The city subjected households to water restrictions and price increases up to 556%, while businesses only saw a 104% price increase with no consumption restrictions.3