2. Water Risks & Response Risk Assessment Physical Water Risk Water quantity (scarcity / flooding) and quality (pollution) Regulatory Water Risk Imposition of restrictions on water use by government (pricing, licensing, rights, standards, etc.) Reputational Water Risk Company’s actions and its brand/image and the risk it faces from customer support/rejection Risk Response (+ Opportunity)
4. Water Stewardship: How AWS fits in 1) Awareness of Water Issues 6) Verification of Claims (including risk mitigation) to Stakeholders Water Stewardship 2) Measure & Report Water Use 5) Water Stewardship Response 3) Measure Basin Status and Impacts 4) Determine Cumulative Corporate Water Risks
5. Responding to Water Risk How to respond to risk? Reporting? CDP? GRI? Compliance? Lobby? Transparency? PR? Labels? Action? Education? Philanthropy? Verification? Engagement? Certification? Why respond to risk? Investors Government Customers Employees Communities NGOs
6. How far do you need to go to appease your shareholders/stakeholders? Lobbying for regulatory improvements (raising the bar) “Beyond the fenceline” protection, management, restoration, collaborative optimization “Fenceline” protection, management, restoration, technological solutions Influence governance Measurement, Analysis, Reporting / Disclosure Education, understanding, anecdotal commenting, philanthropy Stakeholder engagement Level of watershed sustainability Internal action Knowledge of impact Water awareness Time
7. Good or bad investment? Compliance with credible voluntary standards will be the investment hurdle for natural resources investments – with potential wider uptake by Equator Banks HSBC on Soy and Palm Oil: ‘…we will not provide facilities and other forms of financial assistance in respect of commercial logging operations in: Primary Tropical Moist Forest, High Conservation Value Forest, Projects located in and which significantly degrade or convertCritical Natural Habitats’. Nearly half of respondents of the ISEAL survey from the financial sector further specified that standards are used to screen investments. Stakeholder engagement Internal action Knowledge of impact
8. What is the AWS doing?Establishing a credible risk response mechanism GOVERNANCESYSTEM VERIFICATION PROCESS Internal action GLOBAL WATER STEWARDSHIP PROGRAM Recognize and reward water users who take major steps to minimize the watershed impacts of their water use Knowledge of impact Stakeholder engagement INTERNATIONAL STANDARD (PRINCIPLES & CRITERIA) BRAND VALUE Influence governance
12. Focus for an International Water Stewardship Standard Energy, Carbon, Food, Other? Economic benefits:Efficiency gains, risk reduction + Watershed-level targets Social benefits:Access, governance, sanitation, health + Improved water flow regime Improved water quality Equitable governance & social benefits Environmental benefits:Water, habitat , species,+ Protected high conservation value areas
14. Conclusion The Alliance for Water Stewardship is building a program (focused around a standard + existing efforts) to credibly reduce water risk Provides a one-stop risk response mechanism The standard will result in environmental, social and economic benefits at the facility and watershed levels There are numerous ways to get involved and we encourage you to do so!
16. AWS Regional Engagement: Local to Global Events (e.g., presentations, seminars, etc.) ISDC meetings (July +) Online Comments database Stakeholder feedback meetings (Fall 2011 +) + Online individual feedback IWSS Pilots (Fall 2011 +) DOTS ARE EXEMPLARY ONLY
17. Stakeholder Engagement Mechanism for stakeholder feedback to Secretariat Mechanism for accounting for stakeholder feedback Mechanism for stakeholder engagement Comments grouped into categories Regional Meetings Official Submission from Meetings (any format) Water Roundtable Comment Database Grouped comments responded to by ISDC Regional Pilots Official submission from Pilot (specific format) Individual / Public Review Online / written feedback Responses posted online Modifications to IWSS
18. Pilots: What is involved? Context: Understand the basin, policies, and key challenges (including water supply and demand) Standard: Review/understand the standards being reviewed Case study sites: evaluate water use, explore the costs, benefits, and outcomes of implementing the standard Basin governance: explore mechanisms for improved basin stewardship (incl. habitat) Report: Recommend improvements to the Standard via official feedback to AWS
Notes de l'éditeur
AUDIENCE QUESTION: Where is your organization on this cycle?
IFC has recently indicated that compliance with credible voluntary standards will be the investment hurdle for natural resources investments – with potential wider uptake by Equator Banks – a major new lever for adoption of voluntary standards. This is to ensure that all investment projects minimize their impact on the environment and on affected communities (E.g. Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource Management).IFC's Policy and Performance Standards on Social and Environmental Sustainability have become globally recognized good practice in dealing with environmental and social risk management. - Nearly 70 banks and financial institutions, including over 10 from emerging markets, have adopted the Equator Principles, which are based on IFC's Performance Standards.- 32 export credit agencies of the OECD countries benchmark private sector projects against IFC's Performance Standards.- The Multilateral Investment Guarantee Agency (MIGA) applies IFC's Performance Standards in its operations.
KEY SLIDE #1Who is the AWS? The Alliance for Water Stewardship is a coalition of international business, conservation, and social equity organizations collaborating to build the first global water stewardship program, a program that recognizes and rewards participants from the private and water service provider sectors who meet rigorous new sustainable water management and use standards.Top = Mention Board Orgs; We have come together because we believe there should be a globally harmonized approach to addressing the world’s water challenges, and we and all hold a common vision for water stewardship….[CLICK]Bottom = Companies, Foundations and others that are involved in supporting or working with AWS and its board organizations on piloting. However, this is not only just a sample, but it is also just the beginning. We will be needing further partners and the AWS itself is open to additional companies and organizations.
What is the AWS doing? Building a set of voluntary water stewardship standardsThe following are key aspects of how AWS envisions the standards to operate…[CLICK] [CLICK] [CLICK] [CLICK] [CLICK] Slide reads largely as is.
What is the AWS doing? Building a set of voluntary water stewardship standardsThe following are key aspects of how AWS envisions the standards to operate…[CLICK] [CLICK] [CLICK] [CLICK] [CLICK] Slide reads largely as is.
When I say “watershed” here I mean aquifer too. And “improved water flow regime” does not just mean “flowing surface waters.” It means rivers, lakes/ponds, and groundwater as well.