meeting the world’s water challenges - pwc · meeting the world’s water challenges ......

Meeting the world’s water challenges

Introducing PwC’s sustainable water services

www.pwc.com/sustainability

August 2013

PwC

Contents

Introduction 4

Global water issues 5

Introducing PwC

8

Sustainability

at PwC 9 How PwC can help 10

Who we have assisted and how 12

Thought

leadership 24 Contacts

25

Two-thirds of the planet is covered by water.

Yet the rivers, lakes and groundwater available to humans and ecosystems represents less than 1% of this total.

August 2013

“We will never know the true value of water until the well runs dry” Benjamin Franklin

Source: UNEP Vital Water Graphics 2008.

3

PwC

Clean water is an essential resource to human life. We use it for personal consumption, for our agriculture, and for our industry.

Yet under current population growth and urbanization trends, as much as two-thirds of the world’s population may live in areas with physical or economic scarcity of this precious resource in as little as 10 years.

In both water scarce and water rich regions, continued growth of agriculture, industry and urban consumption patterns drives both increased demand for clean water and increased costs for controlling pollution and protecting natural ecosystems.

Yet at the same time as water scarcity is intensifying around the world, and water pollution is increasing costs of avoiding ecosystem degradation, extreme weather, floods, and other incidences of excess water are also on the rise.

Managing the implications related to 'too much, too little, or too dirty' water, can be a challenging undertaking. This booklet seeks provide some context to that discussion and a few examples of how leading organisations around the world are managing their water issues.

This booklet sets out:

• A summary of some of the challenges of effectively managing water resources,

• An introduction to PwC’s offerings around the sustainable use and management of water resources,

• A collection of recent case studies highlighting how PwC clients have driven forward their sustainable water strategies,

• A few recent reports we’ve issued on water-related business issues, and

• A listing of contacts around the world who you can speak with about these issues

August 2013

Introduction Water: Our most precious resource

Introduction Global water issues

Introducing PwC

Sustainability at PwC

How PwC can help

Who we have assisted and how

Thought leadership

Contacts

4

PwC

While much of the earth’s surface is covered by water, over 99% is either saltwater or locked in glaciers (UNEP 2008). While the remaining 1% must serve all our human needs, the world’s fresh water resources also have an important role to play in maintaining our natural ecosystems.

Yet this limited supply of fresh water has done little to slow growth is water demand. Global demand for water has increased sixfold within the past century, more than double the rate of population growth (IWMI 2007). The World Bank estimates that water demand may grow more than 50% between now and 2030 (World Bank 2007).

The UN Food and Agriculture Organisation estimates that 2.8 billion people already live in water-stressed areas and that this could rise to two-thirds of the world’s population by 2025 (FAO 2011).

Water scarcity limits agricultural and industrial contributions to economic growth, contributes to poverty, and exacerbates environmental degradation.

Global water issues The growing gap between water resources and water demand

Saltwater 97.50%

Frozen 68.9%

Lakes a

nd

Riv

ers

0.3

%

Freshwater 2.50%

What we have: A limited supply of a resource that is un-substitutable

Source: UNEP Vital Water Graphics 2008.


Introducing PwC


How PwC can help


Thought leadership

Contacts

What we need: Improved water productivity to serve our growing population

0

1000

2000

3000

4000

5000

6000

7000

1900 1950 2000

Water demand per year increased from about 500 cubic kilometers in 1900 to about 3,830 cubic kilometers in 2000

Population increased from 1.6 billion in 1900 to 6 billion in 2000

Time

Projections into 2030 suggest that water demand may outstrip supply by 40%

Source: World Bank (2007), Water Resource Group 2030

August 2013

“At The Coca-Cola Company, we are transforming the way we think and act about water stewardship. It is in the long-term interest of both our business and the communities where we operate to be good stewards of our most critical shared resource, water.”

– Muhtar Kent, Chairman and CEO Coca-Cola Company

Groundwater

30.8%

5

PwC

Water quality is a serious concern in both high- and low-income countries

High-income countries

• About 59% of water is used for industrial purposes, which generates high levels of pollutants . More than 80% of the world’s hazardous waste is produced in industrial countries (UN-WWAP 2011).

Low- and middle-income countries

• Although only 10% of water use is for industrial purposes, there is a lack of sufficient treatment facilities. An estimated 70% of industrial wastes in developing countries are dumped untreated into waters where they pollute the usable water supply (UN-WWAP 2011).

Water scarcity exacerbates water quality issues

• In addition to limiting economic growth, contributing to poverty, and causing environmental degradation, water scarcity frequently has the effect of worsening water quality.

• The same drivers that increase water demand – population growth and industrialization – also lead to greater amounts of wastewater discharge.

• Without proper treatment, this wastewater creates serious water quality problems. The water quality challenge is further exacerbated as water scarcity increases, for lower water levels means a higher concentration of pollutants.

Global water issues Increasing levels of water pollution

Issues related to water scarcity and water pollution are often closely related

Higher levels of water pollution

Lower levels in surface and ground water

Higher concentration of pollutants

Negative impacts to wildlife and biodiversity

Decreased availability of clean water

Greater amount of pollutants

More water users

Increased per capita water use

Geographic concentration of pollution

Drivers: Population growth, industrialization, economic development, urbanization, and climate change

Quantity Quality


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013

“Water has been on the Nestlé corporate agenda long before environmental policies and sustainability became an issue; the first wastewater-treatment plant for one of our factories was built back in the 1930s…We have made huge efforts to reduce water withdrawals for our factories. Withdrawals were close to 5 liters per dollar of sales some ten years ago. They are now below 2 liters.”

– Peter Brabeck Letmathe, Chairman of Nestlé

6

PwC

Adapting arrangements for the

impacts of climate change

In recent years record-breaking rains, floods, snowstorms and other water-related natural disasters have impacted developed and developing countries on every continent.

The Intergovernmental Panel on Climate Change special report on managing the risks of disasters and extreme weather events portrays clear and growing risks from populations exposed to flood and other water-related natural disasters (IPCC 2012). About 800 million people live in flood-prone areas, and almost one in ten of them is exposed to floods each year. (UNISDR 2011).

Floods, storms and other excess water events have exposed the susceptibility of infrastructure and critical services which sustain our way of life and maintain safety and security. Over recent years, events including the 2011 Japanese earthquake and tsunami, severe flooding in Thailand and Storm Sandy have shown the severe impact to countries, communities and individuals in and around flooded areas. These events have exposed inadequacies in the arrangements for response and recovery from disasters, resulting in a prolonged and increased disruption at a macro level to economies and society, but also at a micro level for businesses and individuals.

As well as the direct localised impact of natural disasters, the frailty of global supply chains for government and businesses alike has been exposed. The globalisation of supply chains due to increasing efficiencies and expanding markets means that recent flooding events have led to disruption of critical resources.

Global water issues Floods, storms and other excess water events


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013

“Having the ability to manage responsibly and properly in areas of water scarcity is an enabler to being in that operation in the first place. Having the ability to manage excessive water, particularly if it’s coming in extreme storm events, is also an enabler.” Tom Albanese, CEO Rio Tinto

7

Whether natural or man-made, flooding events have severe social, economic and environment impacts. These events are becoming more frequent and their impacts more widespread. As the effects of climate change are felt, the need increases to adapt to meet future demands. It is essential that organisations including government, critical services and infrastructure operators, and businesses have prepared and maintained an effective resilience capability to achieve a secure and sustainable future.

Key considerations :

Ensuring appropriate investment levels in resilience and protection of essential

infrastructure and businesses

Planning effectively to respond to

disasters using an integrated approach and capability

Development of legislation and

regulation to manage the impacts of natural disasters

Validating arrangements

through training and testing to ensure that they are robust

PwC

PwC is a global advisory firm operating in 4 main areas; tax, audit and assurance, advisory, and legal. It is also the world’s largest professional services firm.

Audit and Assurance: We provide audit and non-financial assurance services to water providers and water users around the world. Recognising that all companies want assurance teams that know their issues and understand their business challenges, PwC’s water professionals bring a high level of knowledge to their work.

Introducing PwC

Legal Advisory

Tax Audit and Assurance

PwC

Advisory: Our advisory practice puts water sector companies and other water stakeholders at the leading edge. We are able to deploy trusted water specialists with unparalleled knowledge of business processes in-depth expertise around areas like: business planning, compliance and risk management, to project financing, capital asset management, and accounting expertise.

Tax: We have a specialist Sustainability and Climate Change Tax team, which is made up of an international network of professionals with an in-depth knowledge of both local and international markets and their tax regulations.

Legal: PricewaterhouseCoopers Legal LLP and other legal firms within the PwC global network assist project developers, investors, banks, plant constructors and service providers with feasibility and business case studies through to completion and disposal of projects.

PwC People

180,520

Global coverage:

158 countries

776 locations


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 8

PwC

PwC sustainability services

PwC’s Sustainability and Climate Change team helps both public and private sector clients address the specific and immediate issues relating to sustainability, as well as helping with longer-term strategic thinking. The team has a unique blend of skills, experience and tools, as well as scale and reach in all service areas. PwC’s global sustainability practice includes 700 practitioners operating over 60 countries. The team offers services across at least 6 main areas: (1) Strategic sustainability, (2) Governance, risk and compliance, (3) Supply chain and operations, (4) Policy and economics, (5) Assurance and reporting, and (6) Tax and the regulatory environment.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013

PwC Sustainability

Services

9

PwC

How we can help

PwC in the water sector PwC is a leading provider of professional services to regulated and non-regulated utilities in the water sector. We are committed to adding value to our clients and believe an in-depth understanding of industry issues is central to the delivery of services to those in the water sector.

For water infrastructure, PwC support extends across the asset lifecycle, from planning, financing, tender and procurement to construction, operations, resilience and disposal.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 10

Infrastructure Financing

Public-Private Partnerships

Portfolio Management

Risk Management

Organisation and Infrastructure Resilience

Emergency Management and Business Continuity

Integrated Water Resource Management

PwC

Water issues impact not just those in the water sector, but water users as well. From agriculture to extractives to consumer goods and beyond, companies across all sectors are recognizing the importance of water to their operations and building robust water management strategies.

Companies often start this journey by quantifying their water usage and its socio-economic and environmental impacts. From there they are in a better position to put in place systems to manage water-related risks and take advantage of water- linked opportunities. Finally, internal and external stakeholders are increasingly driving water users to disclose their water usage and water stewardship activities.

How we can help

PwC and water users


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 11

Measurement • Water footprint • Lifecycle

assessment

Assurance & standards • Data • Controls • Systems

Impact Assessment • Social • Economic • Environmental

Risk Management • Physical • Regulatory • Reputational

Opportunities • Cost savings • New markets • Technologies

Reporting & disclosure • Water

reporting • Integrated

reporting

PwC

Business challenge

The client wished to build its understanding of the relative impacts of environmental, social, and commercial sustainability issues, including water consumption and water emissions (e.g. eutrophication). Its aim was to identify, evaluate and prioritise these issues and their potential impacts for the business across the value chains of its products.

Solution and approach

PwC led a review of two of the client’s leading brands to identify and map top-tier sustainability issues across the value chain for a typical product.

The work included qualitative and quantitative assessment to quantify the water and carbon footprints of the products, using a range of life-cycle analysis techniques, input from internal and external experts, and research of production economics across the product value chain. The analysis identified water as a key issue for prioritisation, especially in water-scarce regions.

The work was then used to support a series of three-day raw materials workshops with the client’s R&D and procurement teams globally. The approach involved developing potential ‘2020 scenarios’ to explore the future implications for sourcing key raw materials.

PwC also helped the client with a similar project focused on a third brand, which involved calculating the water and carbon footprint and analysing water and carbon issues along the product value chain.

Benefits and value

The product sustainability impact assessments conducted by PwC helped the client to understand and prioritise the key issues impacting its businesses. For example, it showed that the greatest impacts were not within the client’s own operations but within its agricultural supply chains.

The assessment was also used to help inform the client’s overall sustain ability strategy.

Project in focus Water foot-printing in product life-cycle assessment for a major fast-moving consumer goods company


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 12

PwC

Business challenge

Kering wanted to develop environmental profit and loss (EP&L) accounts for each of their brands in order to understand the environmental impacts across the value chain, including water availability and pollution. Following the success of the PUMA EP &L, Kering committed to develop a Group wide EP &L by 2015. Starting with one brand, Gucci, to pilot the improved methodology.


Since 2011 PwC have been working with Kering to further develop the EP&L methodology, with a particular focus on aggregating management useful information.

Following joint decisions on what information is required to best represent Kering’s activities and supply chain for the EP&L, PwC engaged with the brands and its suppliers to gather valuable new information.

PwC quantified Gucci’s environmental footprint – including water consumption, water pollution, greenhouse gases, air pollution, waste and land use - across the entire supply chain. PwC developed a state-of-the art hybrid modelling approach, which combines the strengths of multi-regional environmentally-extended input output modelling (PwC ESCHER), regionalised Life Cycle Assessments (LCA), and material flow analysis (MFA) with directly available client data. The environmental footprint was calculated for 129 regions to allow the material implications of regional differences to be considered. Following the quantification, regionally specific monetary values were calculated based on detailed, impact pathways.

To enable Kering to produce results themselves and operationalise the E P&L as a management tool, PwC delivered training sessions and built capacity within Kering and the Brands.

Benefits and value

Kering has gained confidence in the scale of its environmental impacts as well as new insights into high impact processes and locations. The EP&L has provided Kering with:

• a tool to educate stakeholders

• a deeper understanding of its supply chain and to build stronger supplier relationships.

• a driver for innovation in product design, supply chain management and operational efficiency.

• a positive reputational impact through reporting transparency and brand leadership

Project in focus Developing an environmental profit and loss (EP&L) account for Gucci


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 13

PwC

Business challenge

The client required a review of its long term strategic position with respect to the management of ground water and to evaluate the current operational status of groundwater management and monitoring practices at operational level. An increase in concern with regard to the potential financial and criminal liabilities associated with ground water impact was the main driver for the review.


PwC brought together a team of subject matter experts including hydrogeologists to perform a adequacy review of the corporate level ground water management framework and other associated ground water management governance documentation. Furthermore, a sample of operations were selected for site visits where the implementation of the framework and strategy were assessed. The adequacy of technical ground water management practises and monitoring reports were evaluated for “fatal flaws” based on the risk level of ground water pollution.

Benefits and value

The review has highlighted a number of areas where improved ground water management practises could be deployed.

Project in focus

Ground water management strategy and impact monitoring review


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 14

The review focussed on aspects such as:

• The adequacy of the ground water monitoring network design e.g. Consideration of geophysics;

• Completeness of point and disperse pollution sources;

• Monitoring borehole design;

• Chemical analysis element completeness;

• Frequency of sampling;

• Surface and ground water interaction;

• Consideration and location of background ground water monitoring boreholes;

• Adequacy and consideration of hydrocensus information with regard to sensitive receptors;

• Sampling and analysis integrity; and

• Adequacy of presentation of monitoring results in management reports to assist risk based decision making.

PwC

Business challenge

The client, a leading global foods and beverages manufacturer, wanted a review of the water conservation practices at select sites of in India in order to: (1) assess its existing water management practices; and (2) identify gaps in operation/monitoring practices to highlight areas for improvement.


Tasks performed by PwC to support the client included the following:

• Assessment of the client’s sustainability strategy, goals and priorities with respect to water management across operations, community and agricultural practices

• Water management review based on Global Reporting Initiative (GRI) indicators, the GRI Water Protocol and the client’s own policies.

• Review of water management practices at select beverage producing units.

• Review of rainwater harvesting initiatives implemented by the client within their manufacturing plants as well as in the local communities surrounding their plants.

• Review of the sustainable agriculture initiative undertaken by the client to promote water conservation through changes in the traditional paddy cultivation practice in various parts of India.

• Assessment of net water consumption based on the client’s aspirations and goals in the area of water management.

• Assistance with the identification of gaps and sources of uncertainty in this review, and comments on how to address these issues to improve monitoring in all areas of operation.

Benefits and value

An ongoing engagement, we have assisted the client with their first sustainability report which included formulating a system for data collection on water use and recharge across the entire reporting entity as defined by the client.

Project in focus Water management practices for a major global beverage manufacturing company in India


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 15

PwC

Business challenge

To help respond to the social and environmental impacts of their business, a global mining giant issued a group requirement whereby facilities that exceed specified water consumption and greenhouse gas (GHG) emission thresholds develop cost curves for GHG and water reduction opportunities.

As a part of this global initiative, we were engaged by the client to investigate and develop greenhouse gas and water abatement cost curves at three mine-site locations.


Our approach involved:

• conducting and facilitating workshops with local operations to identify abatement opportunities;

• screening and costing the identified projects; and

• modelling the abatement options to derive a cost per unit of greenhouse gas and water abated.

Benefits and value

This assignment was used by the client to identify and prioritise cost effective greenhouse gas and water abatement opportunities for implementation and provide input into a Group level greenhouse gas and water reduction target.

Project in focus Greenhouse gas and water reduction cost-curve modeling for mining operations


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 16

PwC

Business challenge

Chemical company BASF recognized that supply chain management is increasingly important and water is a key sustainability issue.

BASF’s wanted to identify freshwater consumption hotspots in its supply chain to prioritize risk management efforts. BASF also looked for guidance to include the identified water materiality issues into respective sourcing processes and internal supplier benchmarking.

Moreover, BASF aimed for a holistic picture of strategically relevant supply chain effects. Therefore BASF wanted to consider other KPIs such as GHG emissions (so-called “scope 3”) and value added throughout the supply chain to reflect nexus considerations.


To satisfy BASF’s objectives, PwC selected ESCHER methodology.

ESCHER results also allowed a structural path analysis of the suppliers. This revealed exposure characteristics of tier 1, tier 2 and tier n suppliers and their water consumption respectively GHG emissions.

ESCHER results also detailed strategic findings for emerging and developing economies, detailing country risk for BRIC and "Next 11" countries. ESCHER also sheds light on the financial implications emerging from potential increased of water prices.

Benefits and value

PwC delivered new knowledge to BASF and specified key implications for risk management, sourcing processes and strategy development.

BASF will apply these insights and put them into action. This in turn will increase BASF's resilience to water risks.

Project in focus Assessing the role of water in BASF’s global supply chain


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 17

PwC

Who we’ve assisted and how The water sector The foundation of PwC’s expertise in water issues lies in decades of tax, assurance and advisory support we have offered for the water sector. Water resources are managed differently around the world and PwC’s global network brings access to deep local knowledge of local water regulations and water issues.

Country Client Brief description

UK Ofwat PwC is Ofwat's delivery partner for the 2014 price review. We will provide advice, analysis and assurance through the price control process. In order to create a more efficient, dynamic and customer focused sector which could generate more than £2 billion of benefits.

Cross-territory

United National Environmental Programme

PwC completed a study aimed at illustrating the underlying challenges of Public-Private-Partnerships (PPPs) by offering a thorough review of twelve projects in the water sector, implemented either successfully or unsuccessfully over the last decade in various regions of the world.

France/ Morocco

Office National de l’Eau Potable

PwC advised the client on the economic, financial, legal and technical feasibility of a PPP arrangement for the Agadir desalination water treatment plant in Morocco. The project aimed to build, operate and transfer a 200,000 m3 desalination unit.

India Government aid organisation

PwC assisted in reforming the planning and delivery of urban services in the Indian state capitals of Gangtok and Shillong. The project focused on water supply, sanitation, sewerage and solid waste (garbage) management services for poor populations.

Europe European Union PwC helped the EU complete a prospective socio-economic study on the strategy of municipal water investments, financing strategies, and pricing consequences in 5 EU countries and 5 new or future members.

UK Water utility The client had embarked on a change agenda comprising of a number of major transformation projects over the next three to five years. PwC supported the set up of a programme management model to enable the identification of project inter-dependencies and implement processes that report the rapidly changing risk profile of the organisation.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 18

PwC

Who we’ve assisted and how (continued) The water sector


India Non-governmental water advocacy organisation

PwC helped implement a project to improve the water quality of the Yamuna River along its identified polluted stretches. The first phase involved pollution abatement works in 15 towns in Delhi, Uttar Pradesh and Haryana provinces. The second phase created requisite capacity for sewage treatment in the towns and contributed to a significant capacity-building programme among local agencies.

Oman Municipality PwC acted as financial advisor to a municipality seeking to privatise its wastewater system by way of concession. PwC assessed options allowing the private sector to take over all the existing assets and refurbish and extend the existing system.

Saudi Arabia Government agency

PwC was appointed lead financial advisor to assess the financial implications of operating, managing and maintaining Riyadh’s water and wastewater systems on a 20 year private sector operating concession.

France/ Romania

Government agency

PwC advised on the evaluation and critical analysis of the Bucharest concession contract for water and sanitation, a project serving over 2 million customers. The project aimed to better understand its contribution in terms of sustainable development, cost/benefits, water pricing, consumer satisfaction, and positive municipality/operator partnership

Australia Government agency

PwC advised on the construction and operation of the world’s largest reverse osmosis desalination plant, associated inlet/outlet structures, transfer pipeline and power supply infrastructure. The project involved raising billions in private finance and received Project Finance International’s PPP Deal of the Year award.

US Inter-American Development Bank

PwC helped the client to prepare a report setting out an approach and a set of tools for the financial structuring of PPPs in the potable water and sanitation sector.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 19

PwC

Who we’ve assisted and how (continued) The water sector


Romania Government agency

The first objective of this project was to help the government of Romania and 4 municipalities (Alexandria, Calarasi, Giurgiu and Slobozia) to improve their financial and technical performance and to comply with EU regulations and Directives, especially as regards the evaluation of investment needs, sustainable cost recovery principles and financial strategies. The second objective was to provide an assistance for institutional capacity strengthening.

UK Water utility We were engaged by a UK water company to advise on their opex efficiency and opportunities for opex outperformance. The work involved detailed analysis of their opex costs. Based on our analysis we outlined the main areas of inefficiencies and recommended actions to amend these.

UK Large utility We provided expert regulatory and specialist corporate finance advice to the pension trustees of a large UK based utility regarding the strength of the pension covenants based on the company’s respective sector activities. The advice covered the regulatory and statutory frameworks and protections as well as financial modelling of the company’s financial and credit metrics with regard to the credit worthiness of the companies under different transaction and unbundling scenarios

UK Water utility Developed a high level strategy for progressing value creation opportunities aligned to its business strategy and move towards a world class position in relation to corporate responsibility.

UK Water utility PwC were asked to perform a short diagnostic on a company’s joint regulatory and engineering led Modern Equivalent Asset Valuation (MEAV) which was running over-budget. Within three months we provided a robust MEAV model.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 20

PwC

Who we’ve assisted and how Water users – Measurement For many organisations, the first step in managing water is measurement, since what’s not measured, won’t get managed. Effective water management requires an understanding of both water quantity and water quality performance.


Japan Financial institution

Development support for "Environmental Rating Loans with the Evaluation of Natural Capital Preservation” to factor in key environmental impacts (water use, CO2 emissions, land use) of the loan recipient’s supply chain.

Chile Wood product company

PwC assessed the water footprint of a paper mill company in order to gain an understanding of green water consumption in the paper and packaging industry.

Chile Global mining company

PwC worked with the client to identify projects that could reduce high quality water consumption, using marginal abatement cost curves to ascertain which projects optimized water abatement and financial results. PwC also helped the company to identify and analyze current consumption levels and build a companywide water forecast model.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 21

PwC

Who we’ve assisted and how Water users – Impact assessment Companies can often create adverse impacts on local water resources. Quantifying the water-related impacts a company has on neighbouring communities, economies, and ecosystems is a fundamental aspect of understanding its overall sustainability impacts.


UK Defra PwC was commissioned by Defra to undertake a study of infrastructure investors and operators and long-term (20+ year) climate change adaptation action in the water, energy, transport, and information, and ICT sectors, and how Government and regulators could support this. The project included mapping the current regulatory framework, identifying key market developments, and possible techniques for assessing the adaptation investment decisions, and developing recommendations for opportunities and levers to facilitate long-term climate adaptation action in infrastructure development.

UK National organisation for globally exported textile consumer goods

The client wished to build an understanding of the relative impacts of environmental, social, and commercial sustainability issues in its industry, including water consumption and water pollution. PwC helped to identify, evaluate and prioritise these issues and their potential impacts for the industry across the value chains of its products.

UK, US, Germany

World Business Council for Sustainable Development (WBCSD)

PwC is among the core group of companies working with the World Business Council for Sustainable Development to share experiences on the use of water valuation to support informed business decision making. The project’s first report on the underlying business cases for undertaking water valuation was released at World Water Week in Stockholm in 2012. An expanded reference guide, including reviews of over 23 case studies of water valuation in business decision making is due to launch at the IUCN’s World Conservation Congress in Korea in September 2012.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 22

PwC

Who we’ve assisted and how Water users – Risk management Water-related risks can manifest through a company’s value chain. For example, water pollution often necessitates additional investment in pre-treatment systems, while water scarcity can disrupt operations and increase prices of key material supplies. Understanding and mitigating these risks is an important part of a comprehensive corporate risk management strategy.


Brazil Grupo Camargo Corrêa

Grupo Camargo Corrêa is one of the largest Brazilian private conglomerates, composed of heavy construction, cement, energy and transport companies with operations mainly in Latin America and Africa. The project included the development of high level guidelines for water management within the group.

South Africa Major global metals and mining company

PwC was tasked to perform a review of a water balance model developed by a major metals and mining company at one of their more complex operations. The objective of the review was to evaluate the process followed to compile the final content, including assumptions, variances, scientific formulas and definitions applied in the water balance model.

Australia Global mining company

PwC worked with the client to evaluate the costs, benefits and risks of a range of options to meet projected shortfalls in water supply associated with an expansion of operations in the Pilbara region of Western Australia.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 23

PwC

Who we’ve assisted and how Water users – Risk management (continued)


UK Large food retailer

Being strongly dependent on food related inputs, the client was increasingly concerned about the impact of climate change on water scarcity and temperature and how this might affect food security and the organisation. We were asked to conduct technical and financial outputs providing product and country analysis across a wide range of agricultural supply chains.

UK Leader of sustainability public interest group

PwC built a model to identify and assess the potential impact of water scarcity on electricity and water utilities, including the extent to which associated risks are currently reflected in public disclosure.

UK A major thermal power generation company

The client was critically dependant on a high-reliability water supply for power station cooling and ancillary purposes. PwC helped the client value the impact of reduced supply reliability and provided advice on mitigating strategies.

Cross-territories

Global mining company

PwC led a review of two of the client’s leading brands to identify and map top-tier sustainability issues across the value chain for a typical product. Water was a key issue for prioritisation. The approach involved developing potential ‘2020 scenarios’ to explore the future implications for sourcing key raw materials.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 24

PwC

Who we’ve assisted and how Water users – Opportunities Water presents a significant business opportunity for many companies. Some may be able to find cost savings through implementing water efficiency projects, while others can use water-related products or services to generate new revenue.


India Asian Development Bank/ Government of Bangladesh

The objective of the assignment is to assist the Government in making a fully functional water team in the Policy Support Unit (PSU) of the Local Government Division (LGD), by developing the necessary rules and standards for regulating and monitoring water utilities operating in the urban sector.

UK Major global beverage manufacturing company

PwC assessed the water conservation practices at select Client sites in India in order to: (1) assess its existing water management practices; and (2) identify gaps in operation/monitoring practices to highlight areas for improvement.

France/ Japan

Water equipment manufacturer association

PwC supported an association of Japanese water equipment producers to assess the experience of the private sector in PPPs for water infrastructure in the last 15 years, focusing on potential business opportunities in South East Asia.

China Veolia Water PwC assisted Veolia Water Asia Pacific be a responsible water steward by implementing a new sustainable development policy across three water infrastructure projects in China.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 25

PwC

Who we’ve assisted and how Water users – Reporting and disclosure

Increasing expectations from investors, customers, and non-governmental organisations are driving companies to improve how they communicate their water risks, impacts, and opportunities. Water disclosure has become a key aspect of corporate communications for companies in water-intensive sectors or those operating in water-stressed areas.


US United Nations CEO Water Mandate

PwC is helping the CEO Water Mandate, a global organisation of 86 corporations committed to water sustainability, to analyze existing corporate water disclosure practices and to draft the first global Corporate Water Disclosure Guidelines. The Guidelines put forward common metrics that can begin to harmonize practice, and also provide guidance for determining report content and aligning water disclosure to stakeholder interests. Ultimately, the Guidelines will help investors assess and compare water-related risk by driving convergence in the ways companies report on water issues. They will also minimize the reporting burden on companies, thus allowing them to allocate more time and resources to managing water in a responsible manner. Project technical advisors include the Carbon Disclosure Project, the Global Reporting Initiative and the World Resources Institute.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 26

PwC

Who we’ve assisted and how Water sector and users – Assurance and standards

PwC provides assurance and verification services over sustainability reports for a wide range of water sector companies and water users. As water becomes an increasingly valuable resource, having credible information corporate water impacts will become an increasingly important strategic differentiator.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 27

Selected PwC sustainability assurance clients

Abengoa Greenergy RAY

Aguas Andinas Gas Natural Royal Sun Alliance (RSA)

Águas de Portugal Hansel Rio Tinto

Anglo American Holcim Roche Group

Bank of China HSBC Holdings PLC Samsung Electronics Co

BG Group IPF Sanofi-Aventis

BHP Billiton Base Metals Kesko Senaatti-kiinteistot

BP Kyocera Shell International

CAPP L’Oréal Siam Cement Group

Cenovus LEGO Suncor

Cheminova Limited Brands, Inc. Syngenta

China Construction Bank MAN SE Talisman Energy

China Development Bank Metso Tamro Group

Coca-Cola GmbH Michelin TelecomItalia

Codan Mitsubishi Corporation Telus

Copenhagen Airport MTR Corporation TIM

Daimler Natura TNT

Dong Energy Neste Oil TOP-TOY

Eczacibasi Group Nestle TransAlta Corporation

Eletrobras Next VandCenter Syd

Encana Novartis VANOC

Enmax Novo Nordisk Vestas Wind Systems A/S

EPCOR Utilities Novozymes Volkswagen Group

Experian Office Depot Votorantim Cimentos

Faerch Plast Penoles Winthrop Arzneimittel GmbH

Fortum POSCO Zywiec Group

PwC

Thought leadership PwC’s thought leadership and depth of knowledge have enabled us to satisfy our clients’ business needs and surpass their expectations by offering proactive solutions that identify and capitalize on trends. Here is a selected list of relevant publications. You can download these and more at: www.pwc.com/sustainability

10 minutes on Managing water scarcity March 2012 To prepare for the consequences of water scarcity, companies must monitor water use, evaluate water scarcity risk across the entire supply chain, and collaborate with local communities on replenishing water supply.

Roadmap to reform of the UK water sector October 2012 The proposals in the UK Government’s draft Water Bill, Water White Paper, Ofwat’s Future Price Limits project, and other publications will have far reaching impacts on water companies’ and investors’ strategies and business operations.

Water: Challenges, drivers and solutions June 2012 Ahead of the World Water Forum, PwC has published a report on the dynamics and patterns of water management to support the development of models for tomorrow.

China’s war on water scarcity Spring 2013 China provides the perfect example of a developing nation grappling with urgent water issues. The United Nations, which lists China as one of 13 countries contending with serious water scarcity, says it has 21% of the world’s population, but only 6% of its freshwater.

Bringing Water to your doorstep April 2011 This report aims to assess the issues faced by the urban water supply sector in India; contemplate on the relevance of international models in the Indian context and present a comprehensive reform agenda covering all dimensions including financing, institutions, PPP, resource sustainability and capacity building.

The true value of water June 2011 The lack of clean fresh water is an essential threat not only to individuals, but companies also face significant risks if water is scarce. This is a best practice guide from PwC to show how companies can handle this challenge.


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 28

http://www.pwc.com/en_US/us/10minutes/assets/pwc-10minutes-managing-water-scarcity.pdf

http://www.pwc.com/en_GX/gx/sustainability/publications/assets/pwc-water-challenges-drivers-and-solutions.pdf

http://www.pwc.com/en_IN/in/assets/pdfs/publications-2011/Water_Report.pdf

PwC

Contacts


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 29

Gary Sharkey

Global Sustainable Water

Network Lead

+44 (0) 20 721 34658

[email protected]

About PwC’s Global Water Network

PwC provides industry-focused assurance, tax, legal and advisory services to its clients and their stakeholders. More than 180,5200 people in 158 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

PwC’s water network operates out of 13 hubs, spread between 6 regions, to bring our clients access to our broader global capability and expertise. We would be happy to begin a discussion with you on how water issues may be impacting your organisation.

Europe and Russia

Germany Matthias Retter +49 30 2636 3092 [email protected]

Jennifer Möller-Gulland +49 30 2636 4145 [email protected]

France Guy Leclerc + 33 (1) 5657 8230 [email protected]

Emilie Bobin + 33 (1) 5657 8660 [email protected]

Luxembourg Pierre Wauthier +352 (0) 494848 4506 [email protected]

Switzerland Francisco Betti +41 (0)58 792 9453 [email protected]

UK

Gary Sharkey +44 (0) 20 721 34658 [email protected]

Richard Laikin +44 (0) 20 721 21204 [email protected]

Tony Kingsley +44 (0) 20 780 42098 [email protected]

PwC

Contacts

Australasia

Australia Craig Fenton +61 (7) 3257 8851 [email protected]

Richard Pittard +61 (3) 8603 5024 [email protected]


Introducing PwC


How PwC can help


Thought leadership

Contacts

August 2013 30

South America

Brazil Cecilia Michellis +55 11 3674 3440 [email protected]

Chile Mathieu Vallart +562 940 0401 [email protected]

Argentina Perla Casella +54 11 4850-4761 [email protected]

North America

US Lauren Kelley Koopman +1 (646) 471-5328 [email protected]

Lee-Ann Ritzman +1 (214) 754-5106 [email protected]

East Asia

India Deeksha Vats +91 (22) 6669 1501 [email protected]

Shubhra Jain +91 (22) 6669 1370 [email protected]

SEAC Elaine Chan +60 (3) 21730641 [email protected]

Korea Joonki Min +82 (0) 27090884 [email protected]

Jae-Heum Park +82 (2) 37819911 [email protected]

Africa and the Middle East

UAE Mohammed Salem +971 (0)2 6947455 [email protected]

South Africa Dr. Ferdi Linde Jayne Mammatt

+27 (11) 797 5195 +27 (11) 797 4128

[email protected] [email protected]

PwC

August 2012

© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP (a limited liability

partnership in the United Kingdom) which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a

separate legal entity.

120813-133824-GS-OS

meeting the world’s water challenges - pwc · meeting the world’s water challenges ......

Documents