1. Liquid Assets: Responsible Investment in Water Services Leslie H. Lowe Energy & Environment Program Interfaith Center on Corporate Responsibility www.iccr.org

3. “ We will seek appropriate disclosure on ESG issues by the entities in which we invest .” Over 180 institutions, with collective assets exceeding $10 trillion under management, have signed on to the PRI.

4. “ Expanding access to water and sanitation is a moral and ethical imperative rooted in the cultural and religious traditions of societies around the world and enshrined in international human rights instruments.” — Millennium Project Task Force on Water and Sanitation. A child in the developed world consumes 30-50 times more water than a child in the developing world where 6,000 people die each day of water-related disease, most of them children under five. — UNESCO Water Facts

6. Millennium Development Goals (MDG) Goal 7 , Target 3 : Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation. Photo: ClaudiaD / iStockphoto

7. Photo: NASA Less than 3% of the Earth’s water is freshwater. Of that, less than 0.5% is accessible to plants, animals and humans. There is no more freshwater today to sustain a population of 6 billion people than there was in the year 1 BCE when the global population was estimated to be 250 million people.

8. Freshwater Availability: 1961-1990 These maps are reproduced by courtesy of Prof. Martina Flörke of the Center for Environmental Systems Research, University of Kassel, Germany.

9. Freshwater Availability: 2020s These maps are reproduced by courtesy of Prof. Martina Flörke of the Center for Environmental Systems Research, University of Kassel, Germany.

10. Freshwater Availability: 2050s These maps are reproduced by courtesy of Prof. Martina Flörke of the Center for Environmental Systems Research, University of Kassel, Germany.

11. Freshwater Availability: 2070s These maps are reproduced by courtesy of Prof. Martina Flörke of the Center for Environmental Systems Research, University of Kassel, Germany.

13. Photo: http://cropwatch.unl.edu. Irrigation accounts for 70% of global water withdrawals and 90% of global water consumption.

14. The proportion of the population in urban areas worldwide is expected to rise from 48% (3 billion people) in 2003 to over 61% (5 billion people) by 2030 – with most of the growth in the cities of Africa and Asia. Photo: Abenaa / iStockphoto

16. Photo: http://envis.maharashtra.gov.in/envis_data/ Desire for development is infinite, but water resources are finite, so sooner or later the lack of sufficient water will set limits on growth. – Ma Jun, China’s Water Crisis .

17. “ How will people who can’t afford food pay for water?” — An African Diplomat. Photo: Sean Warren / iStockphoto

21. Drinking water and wastewater utilities, public and private, are entrusted with management of essential services affecting human health, community development and the water commons. They should, therefore, be required to demonstrate to all stakeholders their competence in carrying out these important responsibilities. Unfortunately, disclosure of consistent, comprehensive and comparable performance data on environmental, social and governance issues is the exception not the rule in the water services sector. — Liquid Assets: Responsible Investment in Water Services

22. Table 1. ESG Indicators Governance Indicators : corporate-wide policies applicable to local utilities C.1 Corporate governance policies addressing bribery and corrupt practices. C.2 Assessment of the impact that climate change may have on water resources, physical assets and future operations. C.3 Policies regarding the human right to water and access for low-income members of the community to drinking water and/or sanitation services. C.4 Stakeholder engagement practices. C.5 Policies and procedures for securing community consent and maintaining social license to operate.

23. ESG Indicators Performance Indicators : for local utilities operated or controlled by the reporting entity L.1 Areas of operation experiencing or likely to experience water stress or water scarcity. L.2 Water resource management policies, goals and implementation systems. L.3 Analysis of population demographics and projected growth by sector L.4 Size and condition of the physical system L.5 System operating costs. L.6 Volumes of water withdrawn (abstracted), delivered, and unaccounted for. L.7 Total energy used and percent supplied from renewable sources. L.8 Compliance with regulatory standards for drinking water quality and/or wastewater L.9 Percent of sewage treated and volume of wastewater reused or safely discharged L.10 Percent of properties (households) with water and sanitation connections. L.11 Percent of properties with operating meter. L.12 Revenue collection and percent of accounts delinquent or in arrears. L.13 Cost of basic drinking water supply ( e.g ., m 3 per person per day). L.14 Cost of water and sanitation services (as % of income for poverty level households). L.15 Frequency of service and service disruptions lasting more than 24 hours. L.16 Complaints received and average response times.

24. Table -2. Utility Report Scoring 3 Comprehensive, comparable and consistent data clearly presented; relevant goals and policy statements provided. -3 No mention or discussion of the topic. 2 Data not comparable or not clear; scope or application of policy unclear. -2 Topic raised and discussed in general manner, unrelated to operational goals or challenges. 1 Data inappropriately aggregated, disaggregated or not consistent; wide variation in disclosure for operating utilities. -1 Isolated cases presented without context or sufficient supporting data to indicate systematic management approach.

25. Bar Graph #1 – Environmental, Social and Governance Content This figure shows the score of each of the 12 water utilities surveyed for this report for the environmental, social and governance content of their Internet-based disclosures.

26. Bar Graph #2 – Climate Change This figure shows the scores for the 12 water utilities surveyed for disclosure regarding climate change and its potential impacts on water resources, physical assets and future operations in water stressed areas.

27. Bar Graph #3 -- Water Scarcity This figure shows the scores for the 12 utilities surveyed for disclosure of areas of operation where water resources are scarce or stressed or likely to be so in the near or long term.

28. Bar Graph #4 – Governance This figure shows the scores for the 12 water utilities surveyed for disclosure of their good governance and anti-corruption policies.

29. Bar Graph #5 – Water Quality This figure shows the scores for the 12 water utilities surveyed for disclosure of water quality compliance reports for drinking water and/or wastewater, including their record of fines and violations.

30. Bar Graph # 6 – Sewage Treatment This figure shows the scores for the 12 water utilities surveyed for disclosure regarding their sewage treatment operations and volume of wastewater returns.

31. ICCR Calls For An International Data Commons for Water In the absence of mandated disclosure requirements, it falls to the responsible investment community to use its considerable financial power to raise reporting standards in the water services sector so that capital can be rationally allocated to those enterprises – whether public or private – most capable of meeting the extraordinary water challenges.