This document summarizes a presentation about managing water-related risks and opportunities from a business perspective. It discusses how high public expectations around water issues create both risks and opportunities for companies. An integrated water management approach is presented as a framework for considering not just a company's needs but also stakeholder and environmental interests. Key risks and opportunities related to water access, reputation, regulation, and efficiency are outlined. Examples of how risks and opportunities vary across business sectors are provided. The document concludes with an overview of tools and frameworks that can help with integrated water management assessments.

1. Managing Water from Strategy to Supply Chain
Recognizing and Responding to
Water Related Risks and
Opportunities
June 17, 2010
Wesley Gee
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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
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3. About CBSR & Members
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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
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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
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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
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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)
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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)
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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
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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)
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