chris hedemann, cdp water disclosure
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CDP WATER DISCLOSURE
GLOBAL WATER RISKCanadian Water SummitJune 14, 2011
Chris Hedemann
CDP Water [email protected]+44 (0)20 7415 7073www.cdproject.net/water-disclosure
Lead Sponsors
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Overview
Global water risk– Greater and delocalised impact– How can we manage global risk?
CDP Water Disclosure– Our structure and mission– The business need for water information
Our first year’s findings– What businesses are doing about water– How are businesses in Canada engaging on
water?
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Global risks have greater impacts
The Deepwater Horizon Spill(Source: Reuters)
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Global risks have delocalised impacts
Marooned flood victims in Pakistan try to escape on helicopter side bars(Source: Reuters)
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We need collective action to tackle global risk
While individual organizational efforts will be critical in helping to address the water challenge, collective efforts – across sectors and societal spheres – will also be required.
– CEO Water Mandate, Preamble and Core Elements, January 2011
While individual organizational efforts will be critical in helping to address the water challenge, collective efforts – across sectors and societal spheres – will also be required.
– CEO Water Mandate, Preamble and Core Elements, January 2011
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We need relevant information to tackle global risk
We recommend that investors assess the reliance of their portfolios on water resources and their vulnerability to problems of water availability and pollution
The financial impact of water shortages on sectors and companies is unclear, because information on water use data and impacts is spotty and partial
– JP Morgan, Watching Water, April 2008
We recommend that investors assess the reliance of their portfolios on water resources and their vulnerability to problems of water availability and pollution
The financial impact of water shortages on sectors and companies is unclear, because information on water use data and impacts is spotty and partial
– JP Morgan, Watching Water, April 2008
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CDP seeks corporate water disclosure on behalf of investors
354 Investorsrepresenting $43 trillion
408 Corporationsfrom Global 500, Australia
100, South Africa 100
Authority
Information
Information
Authority
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CDP uses a 3-part questionnaire
• 1. Water management & governance
• 2. Risks & opportunities
• 3. Water accounting
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CDP seeks corporate water disclosure on behalf of investors
354 Investorsrepresenting $43 trillion
408 Corporationsfrom Global 500, Australia
100, South Africa 100
Authority
Information
Information
Authority
1010
NBIM – Investor Expectations
A: Clear Water Management Strategy Clear strategy regarding water management Water footprint and risk analysis Preventive and corrective action plan for
identified risk
B: Sustainable Water Management Monitoring systems for environmental and
social impacts of activities with regard to water, including sustainable water measures
Consultation and/or collaboration with stakeholders
C: Governance Structure Transparent and well-functioning governance
structure Transparent performance reporting
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Overview of 2010 findings
Water is an issue now
There is general lack of awareness of risk in supply chains
Water presents significant opportunities
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Water is an issue, now
0% 20% 40% 60% 80% 100%
Responsibility for water at board level
A water policy or plan
Been impacted by water in last 5 years
Percentage of responding companies which have...
1313
Varied response across industry sectors
Utilities
Technology & Communications
Retail, Consumer Discretionary & Consumer Staples
Pharmaceuticals & Biotechnology
Oil & Gas
Metals & Mining
Industrial & Manufacturing
Food, Beverage & Tobacco
Construction, Infrastructure & Real Estate
Chemicals
39%
59%
49%
81%
29%
59%
49%
63%
29%
100%
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Lack of awareness of risk in supply chains
0%
20%
40%
60%
80%
100%
Operations in water-stressed regions
Risk in own operations Risk in supply chain
Percentage of responding companies which report the ability to identify...
1515
Opportunity is everywhere
62% of responding companies identify water-related business opportunities
Examples include– Improved water management leading to
reduced operating costs– Urbanisation and population growth
expanding market for water treatment chemicals and facilities
– Infrastructure to support growing populations and to adapt to climate change (e.g. flood defences, stormwater systems)
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Canadian companies are developing their engagement on water issues
Response rate
Have a water policy or plan
Have set concrete performance goal
Able to assess exposure to water stress in own operations
Able to assess risk in supply chain
0% 20% 40% 60% 80% 100%
Global 500Canada
10 Canadian companies responded from 15 that were invited
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Canadian companies with more sophisticated responses
Proactively managing water shortage by forecasting, measuring and saving water
Enhancing community water supplies in Pakistan and Tanzania
Aware of need to develop supply chain awareness and already taking the first steps
Setting strong targets in response to shortage risk and delivering on them
Engaged with developing water management plan in Lower Athabasca River
Engaging with NGOs including DUCS wetland group and WBCSD Water working group
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Key points
Local water issues create global risks with the potential for high, delocalised impact
Businesses and investors need to engage on water now to manage this risk
The first step is developing maturity in the measuring and monitoring of water issues
CDP Water Disclosure can help companies and investors take this first step
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CDP WATER DISCLOSURE
GLOBAL WATER RISKCanadian Water SummitJune 14, 2011
Chris Hedemann
CDP Water [email protected]+44 (0)20 7415 7073www.cdproject.net/water-disclosure
Lead Sponsors
2020
Key references
2030 Water Resources Group (2009). Charting our Water Future: Economic frameworks to inform decision-making
Beck, U. ‘Climate for Change, or How to Create a Green Modernity’. Theory, Culture and Society, 27(2-3): 254 - 266
Giddens, A. (2009) The Politics of Climate Change, Cambridge: Polity
Newson, M. (2009) Land, Water and Development: Sustainable and adaptive management of rivers, London: Routledge