FIJI Green

• What is FIJI Green?

FIJI Green is our path to sustainability. Our mission is to deliver to you the finest tasting, mineral-rich natural artesian water with a commitment to do something great for the environment. We have partnered with Conservation International to become the first "carbon negative" product in our industry and to save the largest rainforest in Fiji, and we are also reducing the amount of packaging in our products and leading the charge to expand recycling programs and incentives. FIJI Green means we give back to the environment with every bottle.

• What is Sustainability?

Definitions of sustainability abound, but the most oft-cited definition is the one created by the Brundtland Commission, convened in 1983 by the United Nations to address the growing concern about the accelerating deterioration of the human environment and natural resources and the consequences of that deterioration for economic and social development. In the Brundtland Commission's final report, "Our Common Future," sustainable development is defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

• Why is FIJI Water focusing on Sustainability?

The environment is a concern to all of us. From the very beginning, FIJI Water has taken into consideration its unique status in the world of bottled waters and has conducted business in an environmentally responsible manner. We believe we can strengthen and expand our environmental leadership with a number of ambitious initiatives that will focus on greenhouse gas emissions, packaging, renewable energy and conservation efforts in Fiji.

FIJI Water's Sustainable Growth Initiative is a multi-pronged effort that includes several significant strategies:

• Reduction of CO2 emissions associated with our products' entire life cycle
• Purchase of permanent and verifiable carbon offsets to cover 120% of the emissions that cannot be reduced directly
• Protection in perpetuity of the largest remaining area of pristine rainforest in Fiji

We believe this is an important step in our long-term pursuit of holistic environmental solutions. Just as important to us is supporting the local Fijian economy and protecting and preserving the virgin ecosystem of Fiji, which is our greatest resource.

• What is FIJI Water's partnership with Conservation International?

Conservation International (CI) is a leading conservation organization that has partnered with FIJI Water to counsel us on our sustainability initiative and to develop an ambitious multi-benefit carbon offset plan that, in addition to reducing CO2 in the atmosphere, will also benefit Fiji's local communities and its biodiversity. Charity Navigator recently ranked Conservation International #1 in the fight against global warming.

The connection between FIJI Water and Conservation International goes back several years. Stewart Resnick, owner of FIJI Water, sits on the board of directors of CI.

In Fiji, we are partnering with Conservation International on a major initiative to protect the Sovi Basin, Fiji's most important land ecosystem, from logging for perpetuity. The Sovi Basin, located on the Fiji island of Viti Levu, covers over 50,000 acres of land and is the largest, most biologically diverse and most scenically outstanding of Fiji's natural forests. Fiji lies within the Polynesia/Micronesia biodiversity hotspot - one of 34 such hotspots around the world - and is home to a number of unique and diverse animal and plant species.

Carbon Negative

• What is a carbon footprint?

According to a June 2007 study by Integrated Sustainability Analysis UK Research & Consulting, the definition of carbon footprint varies widely from one source to another in the public and academic fields.¹ The common theme is that "the carbon footprint stands for a certain amount of gaseous emissions that are relevant to climate change and associated with human production or consumption activities." The Kyoto Protocol" considers the following greenhouse gases -- carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, HFCs and PFCs.

¹ http://www.isa-research.co.uk/docs/ISA-UK_Report_07-01_carbon_footprint.pdf

• How is a carbon footprint measured?

The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol Initiative is a decade-long partnership between the World Resources Institute and the World Business Council for Sustainable Development. The GHG Protocol provides the accounting framework for nearly every GHG standard and program in the world - from the International Standards Organization to the EU Emissions Trading Scheme to the California Climate Registry - as well as hundreds of GHG inventories prepared by individual companies.

• What is the carbon footprint of FIJI Water products?

Starting in 2008, FIJI Water will be able to offer a carbon negative product. To achieve this, FIJI Water will account for the carbon footprint throughout the entire lifecycle of our products and then, through a combination of meaningful reductions and carbon-reducing land use and renewable energy projects, the production and sale of each bottle of FIJI Water will actually result in a net reduction of carbon in the atmosphere by 120%.

ICF International, a global leader in analyzing emissions inventories and providing advice on climate strategy, will independently review and verify the company's carbon footprint. To ensure transparency of our carbon negative commitment, FIJI Water will work with ICF International to publicly report our progress against the above targets on an annual basis.

By 2010 the company's products, across our entire lifecycle, will deliver the following sustainability benefits (compared to a July 2006-June 2007 baseline):

• 25% reduction in CO2 emissions
• 50% of energy used in the production process to come from renewable sources
• 20% reduction in product packaging
• 33% reduction in waste from the production facility in Fiji
• How will FIJI Water products be carbon negative?

Remaining carbon emissions that cannot be managed out of the product lifecycle will be mitigated through a portfolio of forest carbon (e.g., reforestation) and renewable energy offset projects developed jointly with Conservation International. These verifiable and permanent carbon offsets will exceed total company CO2 emissions by 20%, delivering one of the first consumer products that truly goes beyond carbon neutral and leaves a negative carbon footprint.

• How does this compare to other companies/brands?

No other major beverage brand has ever made a similar carbon negative commitment to help mitigate the effects of climate change.

• Does FIJI Water buy points to offset its carbon emissions?

FIJI Water is focused first and foremost on managing and reducing greenhouse gas emissions throughout our supply chain, both in Fiji and around the world. To meet our commitment to provide a product that is carbon negative, we will purchase forest carbon and renewable energy offsets developed jointly with Conservation International. These verifiable and permanent carbon offsets will exceed total company CO2 emissions by 20%, delivering one of the first consumer products that truly goes beyond carbon neutral and leaves a negative carbon footprint.

Investing in offsets allows us to take immediate responsibility for our emissions, and our intention is to replace the purchase of offsets with carbon-reducing projects we develop directly, with support from Conservation International.

Transportation

• How is FIJI Water transported?

We do not fly our product. Instead we ship our product via container ship, which is considered one of the most climate friendly options available. According to the World Business Council for Sustainable Development's (WBCSD) Greenhouse Gas Protocols, of the major modes of transportation - ocean freight, air freight, trucking, and rail - ocean freight is the most fuel-efficient and produces the fewest emissions per ton carried and mile traveled. It is the most preferable method of transporting the product from Fiji to the U.S. Compared to ocean freight, air freight produces 57 times more CO2 emissions, trucking produces 7 times more, and diesel locomotive produces twice as much.

However, we take every measure to reduce our impact on the environment due to transportation. For example, FIJI Water produces its bottles and caps on site at the plant, so transport of these packaging components to the bottling site is not necessary. Transport of the raw materials used to manufacture these components is more fuel efficient than transport of pre-fabricated bottles and caps.

Cases of FIJI Water are loaded into containers, and then transported via truck to Lautoka or Suva, the two major shipping ports in Fiji. From those ports, FIJI Water travels by ship to markets around the world.

Once the product arrives at its destination ports, it is transported by rail or truck to third-party warehouses, and from those third-party warehouses to our customers.

As part of our commitment to become a carbon negative product, we are looking into using bio-fuels wherever possible throughout the transportation process and we will optimize our logistics to make greater use of low carbon shipping modalities (primarily ocean freight and rail). In addition, we will account for all CO2 emissions generated by transporting our product around the world through post consumer handling and will offset these emissions by 120%.

• Is energy conserved during the transport of FIJI Water?

FIJI Water's bottle cross-sections are square rather than round as is often seen with other bottled beverages. This design was originally intended to optimize transport efficiency (and therefore fuel consumption) by enabling a greater amount of water to fit into cases, pallets and shipping containers. As a result, we are shipping nearly 10% fewer containers a year, totaling close to 1,000 containers worth of savings this year alone.

We invested tens of millions of dollars in equipment to produce our own pre-forms and blow our own bottles at the plant, and as a result we do not ship empty bottles or pre-forms into Fiji. By doing this we have eliminated the need for over 10,000 containers of raw materials shipments into Fiji in 2007 alone, and we have significantly reduced emissions of greenhouse gases and other pollutants caused by transportation.

Because we bottle only in plastic, we are able to transport our water far more efficiently than if we used glass bottles. Liter for liter, PET bottles require 24% less energy to produce, generate 40% less solid waste, and emit 46% less carbon during shipping than glass bottles.

We make an effort to ship to ports nearest our destination customers and minimize land transport which is less fuel-efficient than maritime transport. Carriers that operate the shipping routes between Fiji and the U.S. are working to conserve energy and reduce environmental impact by:

• Minimizing CO2 emissions by applying policies for "steady running," etc.
• Experimenting with low sulfur content fuel
• Using NOx efficient technology in their engines
• Reducing particulate matter emission via slide type fuel injection valve and new cylinder lubrication technology

Once on land, we ship the product to our third-party warehouses and customers via rail which is more fuel efficient than trucks.

We are looking into using bio-fuels wherever possible throughout the transportation process. Where we are unable to manage the carbon emissions out of the process, we will be working with Conservational International on a carbon offsets program that can be monitored and verified and will actually result in a net reduction of carbon in the atmosphere.

• How much energy is used to transport FIJI Water from Fiji to the U.S.?

According to the World Business Council for Sustainable Development's Greenhouse Gas Protocols, transporting by container ship is one of the most environmentally-friendly options available compared to trucking and long haul flights which contribute 7 and 57 times more carbon emissions respectively.

In addition, FIJI Water travels from Fiji to the U.S. on shipping lanes that were in place before the inception of the company. No additional ships have joined the lanes for FIJI Water's volume. In other words, the cargo ships would travel from Fiji to the rest of the world regardless of FIJI Water. These ships use nearly the same amount of fuel with or without FIJI Water, since (1) about 75% of a ship's fuel usage is required to power the ship even without cargo, and (2) FIJI Water represents less than 10% of a given ship's cargo. Therefore, FIJI Water's incremental impact on the fuel used is small, approximately 2% of the total fuel used by each ship.

We are looking into using bio-fuels wherever possible throughout the transportation process. Where we are unable to manage the carbon emissions out of the process, we will be working with Conservational International on a carbon offsets program that can be monitored and verified and will actually result in a net reduction of carbon in the atmosphere.

• How does the transportation of FIJI Water compare to other brands/products?

As part of our Sustainable Growth Initiative, we are committed to making our products carbon negative and will account for the carbon footprint throughout the entire lifecycle of our products. Through a combination of meaningful reductions and carbon-reducing land-use and renewable energy projects, the production and sale of each bottle of FIJI Water will actually result in a net reduction of carbon in the atmosphere. No other major beverage brand has made a similar commitment to help mitigate the effects of climate change.

• Has FIJI Water considered other methods of transportation?

Of the major modes of transportation - ocean freight, air freight, trucking, and rail - ocean freight is the most fuel-efficient and produces the fewest emissions per ton carried and mile traveled. It is the most preferable method of transporting the product from Fiji to the U.S. Compared to ocean freight, air freight produces 57 times more CO2 emissions, trucking produces 7 times more, and diesel locomotive produces twice as much.

We continue to work with our logistics suppliers to track and minimize emissions resulting from the transport of our product.

Bottling in PET

• What is the impact of using PET to create FIJI Water bottles?

There has been much debate about the use of petroleum in the making of plastic water bottles. Our environmental impact is minimal, however, particularly compared to that of other industries. More importantly, it is constantly improving. First, FIJI Water is bottled in 100 percent recyclable containers. As an industry, making plastic water bottles accounts for a miniscule 0.02 percent of America's oil consumption, and plastic water bottles contribute only one-third of 1 percent to the municipal waste stream.

Nonetheless, FIJI Water has always been an industry leader and we are constantly working to improve our environmental footprint. We are committed to reducing the material in our packaging by 20% by 2010, becoming more energy efficient and improving recycling rates in the U.S. and all of our key markets.

• What type of energy is used to create FIJI Water bottles?

Our plant is a self-sufficient power producer, using generators to supply electricity for the bottling process. As part of our carbon negative commitment, over the next three years, FIJI Water will reduce the amount of energy required throughout the lifecycle of its products through a number of efforts including engineering projects to increase the energy efficiency of its bottling facility in Fiji. By 2010, 50% of remaining energy demands will be met with renewable energy such as wind to power our bottling facility in Fiji, and bio-diesel to replace traditional diesel use in transportation and other applications.

• Why are FIJI Water bottles in plastic rather than glass?

The quality and integrity of our water relies on our respect for the pristine Fijian environment. We bottle our remarkable water in plastic because we believe it is the most responsible environmental choice. FIJI Water's bottle uses polyethylene terephthalate (PET), the highest grade and most recyclable plastic. A comparison of plastic vs. glass packaging shows:

• PET bottles require 24% less energy to produce, generate 40% less solid waste, and emit 46% less carbon during shipping than glass bottles.²
• Glass sanitization produces 23% more waterborne waste and 60% more atmospheric emissions.
• Transportation of glass bottles from mainland would require 42% more shipping vessels than currently used.

In our production process, the PET resin is blow-molded into signature square bottles and filled within a controlled environment. FIJI Water is drawn through a sealed delivery system directly into the PET bottle. The temperature within the filling room is regulated and the air is filtered to prevent the introduction of dust and other airborne particles. This protects the quality and safety of our water against particles, dust and other contaminants.

Because it is lightweight and shatter-resistant, PET is ideal for storage and portability. Filled PET bottles conserve container weight as compared to glass bottles, allowing FIJI Water to ship its product efficiently. Also, high grade PET has an extremely high melting point at 470 degrees Fahrenheit, ensuring the bottles maintain their strength and durability in a wide range of temperature conditions. Furthermore, PET's lightweight and shatter resistant properties facilitate recycling in hotels, spas and restaurants where they can be easily compacted and crushed for recycling.

PET is easy to recycle and has many uses. The demand for recycled PET is extremely high due to its use as a replacement for polyester, which can be used in carpeting, clothing material and textile products such as "polar fleece." Some companies turn PET into fiberfill for sleeping bags, toys and jackets. FIJI Water is also looking into the option of using recycled PET (rPET).

² Franklin Associates, The Environmental Impact of Soft Drink Delivery Systems, 1995.

• What are the different classes of PET? What does each classification mean?

FIJI Water uses the highest grade of PET resin for its bottles, which provides strong polymer quality that ensures packaging integrity. Our use of the highest grade resin yields bottles of the greatest clarity and strength that protect the water's pristine quality and taste.

In contrast, some beverages use lower grade resins that can impart a plastic taste. Lower grades of PET, while sufficiently strong and stable to carry liquid beverages, may release minute quantities of acetaldehyde into the liquid, which could impact the taste. Rather than risk this issue, FIJI Water chooses to use the highest quality of PET resin available in the world today.

FIJI Water prioritizes the safety of its product for consumption and the well-being of its consumers, and the company will not change the packaging material from PET to anything else unless the new material can preserve the integrity of the product at a level comparable to PET.

• Does FIJI Water plan to use less plastic?

We are committed to reducing the amount of packaging we use by 20% by the end of 2010.

Just as important is capturing the bulk of waste stream and we are committed to a 33% reduction in waste from our production facility in Fiji by 2010. Since all of our packaging is fully recyclable, we are committed to promoting recycling amongst our consumers and employee base. FIJI Water supports and promotes U.S. legislation such as curbside recycling and container deposit laws that will boost overall recycling rates.

• What does FIJI Water do to promote recycling?

Since all of our packaging is fully recyclable, we are committed to promoting recycling amongst our consumer and employee base in Fiji and around the world. In Fiji, we are helping fund one of the most ambitious recycling programs in the country. This program makes it possible to re-use our bottles in other applications, and is also a source of income for a large number of people in Fiji.

We are looking into programs that promote recycling amongst our consumers in the U.S. For example, a combined system of curbside recycling and container deposits give consumers two opportunities to recycle. That is why FIJI Water sees an active role for itself in advocating the importance of legislation that will boost overall recycling rates via expanded curbside recycling programs and container deposit laws that include bottled water and other non-carbonated beverages.

• Only half of the U.S. population is covered by curbside recycling programs, a number that has not changed over the past decade despite the increase in PET plastic usage.
• The evidence is clear that container deposit laws work. According to the Container Recycling Institute, consumers in states with container deposit laws recycle 2.6 times more containers than their counterparts in other states. Today, only 11 states have such laws, but they account for 60% of recycled bottles in the U.S. Michigan, with a 10-cent deposit, has recycling rates close to 100%. Unfortunately only four states include bottled water in their deposit programs, and we want to see this change.

Investing in Fiji's Future

• How is FIJI Water protecting Fiji's "virgin ecosystem?"

Recognizing that the pristine ecosystem of the Fijian island of Viti Levu is our greatest resource, we take every measure to protect and preserve the surrounding environment. The very livelihood of our company relies on the health and well-being of our source aquifer and the surrounding environment.

FIJI Water has undertaken a major initiative in partnership with Conservation International, a leading conservation organization, for the protection and preservation of the Sovi Basin rainforest in Fiji. The Sovi Basin, located on the Fiji island of Viti Levu, covers over 50,000 acres of land and is the largest remaining lowland rainforest in Fiji. Fiji lies within the Polynesia/Micronesia biodiversity hotspot - one of 34 such hotspots around the world -- and is home to a number of unique and diverse species.

Logging concessions had already been issued to this precious rainforest area. This logging activity would have not only displaced or destroyed its unique flora and fauna, but also released carbon dioxide into the atmosphere, thereby contributing to global warming.

This conservation effort will keep the Sovi Basin off limits to logging, thus keeping 10 million tons of carbon stored in the forest permanently. This is the equivalent of keeping about 2 million passenger cars off the roads for an entire year.

The FIJI Water Foundation, launched through a grant from FIJI Water owners Lynda and Stewart Resnick and supported by contributions from 700 FIJI Water employees around the world, will provide funding to endow the Sovi Basin trust fund. CI's Global Conservation Fund will also donate funding towards the trust fund. The trust fund will make annual disbursements that not only offset the cash value of the otherwise available logging payments to local land owners in the Sovi Basin, but also pay for land leases and create jobs.

• How does FIJI Water help the economy and people of Fiji?

We respect the Fijian community and take every measure to support its economy, environment and development. FIJI Water is one of the largest employers on the islands and a major contributor to the country's Gross National Product. It produced over 15% of Fiji's exports in 2006 and continues to grow as a part of Fiji's export economy.

Over 300 local Fijians are employees at the Yaqara plant; they comprise over 95% of the plant's total workforce. Committed to the long-term employment and development of our employees, FIJI Water provides training, education and internal promotion opportunities. Economic benefits to the people of the local communities include a reliable income source, sufficient wages to support families and extended relatives and the ability to improve the educational level of the next generation. With low attrition in its workforce over the last ten years and hundreds of applications for employment on a weekly basis, FIJI Water is the employer of choice in Fiji.

We recognize that excellence is measured not only in dollars and cents, but also in the well-being of the community where we work. FIJI Water has supported various local education, health, sanitation and environment initiatives through a trust funded by the company's gross revenues. The board of trustees is comprised of residents from all six villages that surround the bottling plant. The trust's achievements include:

• Construction of five kindergartens
• Scholarships for teachers to study early childhood development
• Provision of teaching materials
• Building and installation of playground equipment
• Development of village buildings & infrastructure
• Recycling of solid waste
• Installation of fresh water supply systems
• Sewage treatment
• Establishment of women's crisis center
• Disaster relief activities

FIJI Water received the U.S. State Department's Award for Corporate Excellence for Outstanding Corporate Citizenship, Innovation and Exemplary International Business Practice in 2004. This award recognized FIJI Water for the vital role it plays in Fiji.

• Do the people of Fiji have clean drinking water?

We believe that Fiji is home to the best water on the planet, and the people of Fiji should be able to enjoy it as much as the rest of the world does. Reliable access to clean, safe drinking water is common throughout much of Fiji, but there are still remote villages where infrastructure is lacking. FIJI Water has taken direct responsibility for providing water access to the villages that surround our source in the Yaqara Valley. We have completed projects that serve the towns of Drauniivi and Togovere, and by the end of 2008 we will complete similar projects in Naseyani, Nananu and Rabulu.

In addition, FIJI Water has partnered with the Rotary Club to fund the Pacific Water for Life Trust, which will provide the infrastructure, expertise and skills necessary to deliver safe, clean and sustainable water to over 100 additional communities, schools, health centers and nursing stations throughout Fiji over the next two years.