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Managing Water from Strategy to Supply Chain

Recognizing and Responding to
Water Related Risks and
Opportunities

June 17, 2010

Wesley Gee


                                               1
Our Speakers Panel
      Wesley Gee
      Senior Sustainability Consultant, Stantec

      Hubert Bolduc
      VP Communications and Public Affairs, Cascades

      Suzanne Fallender
      Director, CSR Strategy and Communications, Intel

      Lisa French
      Principal, Guidance and Support, CICA

                                                         2
About CBSR & Members




                       3
High Public Expectations
• GlobeScan: Water as the planet’s top environmental concern
• Ipsos Reid: Canada will have a freshwater shortage problem
                                                    89% of Canadians         believe there is a growing freshwater crisis on the planet
                                                                             say they are “very concerned” or “somewhat concerned”
                                                    84% of Canadians
                                                                             about the long term supply/quality of Canada’s freshwater
                                                    66% of Canadians         think that Canada is at risk of freshwater supply shortages
                                                                             say water pollution is a very serious problem
                                                    71% of Canadians
                                                                             say solving drinking water problems will require significant
                                                    82% of Canadians         help from companies
                                                                             say large companies are responsible for ensuring clean
                                                    65% of Canadians
                                                                             water (versus 70% for government and 55% for citizens)
                                                    86% of Canadians         believe they are making reasonable efforts to conserve
                                                                             freshwater
                                                                             believe corporations, businesses and industry are making
                                                    30% of Canadians
                                                                             reasonable efforts to conserve freshwater

Source: Globescan Circle of Blue Water Issues Research study and Ipsos RBC and Unilever Canadian Water Attitudes survey
                                                                                                                                            4
Integrated Water Management
Definition of Integrated water management (IWM)
A framework for water-related decisions and actions which
considers not only company requirements but also the needs and
interests of impacted stakeholders and the natural environment.


Companies using an IWM approach




                                                                  5
To Manage Risks and Opportunities

CBSR recently developed The Business Case for an Integrated
Approach to Water Management report.

In the report, we identify four key risks and opportunities that a
company should consider as part of its water strategy:
  1. Ability to access water given increasing consumption and
     decreasing supply
  2. Impact on reputation and operations if the social license to
     operate is threatened
  3. Implications of government regulation, policies and programs
  4. Savings potential from more efficient water usage



                                                                     6
Risks/Opportunities Vary by Sector
•    High Tech and Electronics
      – Bulk of water from manufacturing and need for high quality water
      – Electronic waste can cause groundwater/ecosystem contamination

•    Apparel
      – Cotton: water intensive irrigation, agriculture run off
      – Textiles: wastewater discharge in water scarce regions

•    Food and Beverage
      – Food: ‘virtual water’ and agriculture water intensity and run-off
      – Bev: needs high quality source water, competing with communities

•    Commercial real estate and property owners
      – Cdn buildings consume more than developing world, Australia, UK
      – Consider flood risk, storm water mgmt (e.g. rainwater harvesting)

                                                                            7
Risks/Opportunities Vary by Sector
•    Mining
      – High water intensive and potential contamination with tailings
      – Ore mining and refining produce large volumes of wastewater
      – Community concerned about water quality

•    Electricity
      – Cooling: largest single use of water in thermal power generation
      – Climate change: impacting hydroelectric power and revealing water-
        climate-energy nexus (water and electricity compete)
      – Link to extraction and burning of fossil fuels (particulate matter)

•    Oil & Gas
      – Oil sands water intensity, impacting surface/groundwater resource
      – Water assisted production, removing water from water cycle
      – Abandonment/disposal of liquid & solid waste (drilling/production)


                                                                              8
CBSR IWM Assessment Tool
 CBSR Integrated Water Management (IWM) approach


                                                  Degree to which
                                                   integrated into
                                                  decision-making
                                   Highlights
                               performance gaps
           Evaluates current
             management
               approach




          Evaluates response
          to material issues




                                                                     9
Other Tools, Guidelines & Frameworks
•   United Nations CEO Water Mandate
•   WBCSD Global Water Tool
•   CDP Water Disclosure Initiative
•   GRI Water Performance Indicators
•   Water Footprinting (Value Chain Approach)
•   Alliance for Water Stewardship (AWS)




                                                10

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1.2 Wesley Gee

  • 1. Managing Water from Strategy to Supply Chain Recognizing and Responding to Water Related Risks and Opportunities June 17, 2010 Wesley Gee 1
  • 2. Our Speakers Panel Wesley Gee Senior Sustainability Consultant, Stantec Hubert Bolduc VP Communications and Public Affairs, Cascades Suzanne Fallender Director, CSR Strategy and Communications, Intel Lisa French Principal, Guidance and Support, CICA 2
  • 3. About CBSR & Members 3
  • 4. High Public Expectations • GlobeScan: Water as the planet’s top environmental concern • Ipsos Reid: Canada will have a freshwater shortage problem 89% of Canadians believe there is a growing freshwater crisis on the planet say they are “very concerned” or “somewhat concerned” 84% of Canadians about the long term supply/quality of Canada’s freshwater 66% of Canadians think that Canada is at risk of freshwater supply shortages say water pollution is a very serious problem 71% of Canadians say solving drinking water problems will require significant 82% of Canadians help from companies say large companies are responsible for ensuring clean 65% of Canadians water (versus 70% for government and 55% for citizens) 86% of Canadians believe they are making reasonable efforts to conserve freshwater believe corporations, businesses and industry are making 30% of Canadians reasonable efforts to conserve freshwater Source: Globescan Circle of Blue Water Issues Research study and Ipsos RBC and Unilever Canadian Water Attitudes survey 4
  • 5. Integrated Water Management Definition of Integrated water management (IWM) A framework for water-related decisions and actions which considers not only company requirements but also the needs and interests of impacted stakeholders and the natural environment. Companies using an IWM approach 5
  • 6. To Manage Risks and Opportunities CBSR recently developed The Business Case for an Integrated Approach to Water Management report. In the report, we identify four key risks and opportunities that a company should consider as part of its water strategy: 1. Ability to access water given increasing consumption and decreasing supply 2. Impact on reputation and operations if the social license to operate is threatened 3. Implications of government regulation, policies and programs 4. Savings potential from more efficient water usage 6
  • 7. Risks/Opportunities Vary by Sector • High Tech and Electronics – Bulk of water from manufacturing and need for high quality water – Electronic waste can cause groundwater/ecosystem contamination • Apparel – Cotton: water intensive irrigation, agriculture run off – Textiles: wastewater discharge in water scarce regions • Food and Beverage – Food: ‘virtual water’ and agriculture water intensity and run-off – Bev: needs high quality source water, competing with communities • Commercial real estate and property owners – Cdn buildings consume more than developing world, Australia, UK – Consider flood risk, storm water mgmt (e.g. rainwater harvesting) 7
  • 8. Risks/Opportunities Vary by Sector • Mining – High water intensive and potential contamination with tailings – Ore mining and refining produce large volumes of wastewater – Community concerned about water quality • Electricity – Cooling: largest single use of water in thermal power generation – Climate change: impacting hydroelectric power and revealing water- climate-energy nexus (water and electricity compete) – Link to extraction and burning of fossil fuels (particulate matter) • Oil & Gas – Oil sands water intensity, impacting surface/groundwater resource – Water assisted production, removing water from water cycle – Abandonment/disposal of liquid & solid waste (drilling/production) 8
  • 9. CBSR IWM Assessment Tool CBSR Integrated Water Management (IWM) approach Degree to which integrated into decision-making Highlights performance gaps Evaluates current management approach Evaluates response to material issues 9
  • 10. Other Tools, Guidelines & Frameworks • United Nations CEO Water Mandate • WBCSD Global Water Tool • CDP Water Disclosure Initiative • GRI Water Performance Indicators • Water Footprinting (Value Chain Approach) • Alliance for Water Stewardship (AWS) 10