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Business Case for WBCSD Global Water Tool

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Contents

Water Risks are Real Now

Working Beyond Your Fenceline

Do You Know Where Your Water Risks Are?

Benefits of the Global Water Tool

Tool Functions and Data Security

Data Credibility

Advisory Board and Supporting Organizations

Simple Demo of Tool Use

Testimonials

33

IPCC: Climate Change will

Increase Droughts and Floods

Water Risks are Real Now

Population Growth will

Decrease Per Capita Availability

44

Business Need Areas of Risk

• Healthy and Strong

Global Consumer Markets

• Access to Clean Water for

Product Use

• Brand Image

• Health and Growth of

Consumer Markets

Beyond the Horizon: Beyond the Horizon:

Global Consumer Markets

in Developed and

Developing Countries

Beyond the Fenceline: Beyond the Fenceline:

Supply Chain

Operations

Local

Communities

• Healthy

Communities and

workforce

• Strong Supply

Chains

• License to Operate

• Community and

Regulatory Pressure

• Health of Employees

• Competing Industries

• Supply Chain

Interruptions

Inside the Fenceline: Inside the Fenceline:

Operations and

Product Design

• Water for Operations

• Ability to Discharge

• Stranded Assets

• Rising Costs

Working on Water Beyond Your Fenceline

55

More Corporate Water Risk Assessments

Pacific Institute:

20% of companies mention water risk – only

a few of 139 companies address external

water landscape in evaluating risks

Lack of context in reporting

Supply chain issues are often overlooked

Corporate Knights:

Review of Canadian Companies with

operations in water scarce areas

Growing Call: Companies Need to Comprehensively

Evaluate and Address Water Risks and Impacts in

Operations and Supply Chains relative to External Factors

66

Do you know…

How many of your employees live in

countries that lack access to improved

water and sanitation?

How many of your sites are in extremely

water-scarce areas? Which sites are at

greatest risk? How that will change in the

future?

How many of your suppliers are in water

scarce areas now and will be in 2025?

77

Risk Management on Global Water Issues

Requires an understanding of a company’s

water needs in relation to local externalities: Water availability – current and projected

Water quality

Water “stress” – people, environment and agriculture

Access to safe drinking water sources

Access to sanitation

Population/industrial growth

Company’s needs = owned operations,

employees, and supply chain…….and

ultimately customers

88

Advisory Board & Organizations

World Health

Organization & UNICEF

Joint Monitoring

Programme

Data provided by:

Expertise provided by:

Air Products and

Chemicals

Alcan

Alcoa

Anglo American

Borealis

ConocoPhillips

Degussa

The Dow Chemical

Company

DuPont

GrupoNueva

Holcim

ITT Corporation

Kimberly Clark

Lafarge

PepsiCo

Petro-Canada

Rio Tinto

Sanyo

Shell

Suez

Syngenta

Unilever

Leader: CH2M HILL

99

Data Credibility

Dataset owners gave permission to WBCSD for use in the Tool

Original datasets have not been modified

The datasets

Have global coverage

Are available in the public domain

Are considered valid by the global community of water

stakeholders

Are recent

Will be updated

World Health

Organization & UNICEF

Joint Monitoring

Program (JMP)

Food and

Agriculture

Organization (FAO)

AQUASTAT

University of

New

Hampshire

(UNH), USA

World

Resources

Institute

(WRI)

1010

Benefits of the Global Water Tool

Compares your company’s water uses (including staff presence,

industrial use, and supply chain) with key external water-related

data

Creates key water GRI Indicators, inventories, risk and

performance metrics and geographic mapping

Establishes relative water risks in your company’s portfolio to

prioritize action

Enables effective communication with internal and external

stakeholders on your company’s water issues

Allows calculation of water consumption & efficiency

FREE

EASY-TO-USE

1111

Tool Functions and Data Security

Two Parts to the Tool:

1) Excel Workbook: Inventory, GRI Indicators, External Data Connection and Metrics Calculations

GRI has endorsed tool

2) On-line Mapping Program

Site Locations and External Water Maps

Google Earth interface for spatial viewing

Company data is kept secure by user –not saved on WBCSD website

GRI Indicators on

total water

withdrawals

(EN8), water

recycled/reused

(EN10), and total

water discharge

(EN21) are

calculated for

each site,

country, region

and total.

1212

Start Page

Limitation

The tool does

not provide

specific

guidance on

local

situations,

which

requires more

in-depth

systematic

analysis.

1313

Data Form – Easy Input Sheet

1414

Input Inventory Sheet

1515

Water Consumption and GRI Metrics

1616

Level: Sites Workers Suppliers

Combined Company and Country Metrics

1717

Workbook Output – Charts

1818

Click

Generate

Map

Generate Maps

1919

Save As

GIS Mapping Application

2020

Save as PDF, JPEG…

2121

Mean Annual Relative Water

Stress Index

Ratio of Industrial to

Total Water Use

Access to Improved Water Access to Improved Sanitation

Other Global Maps Available

2222

Map Sites with Google Earth

Click

Google

Earth

2323

Google Earth Interface – Global Perspective

2424

Testimonials

What some users said

see www.wbcsd.org/web/watertool.htm for more...

2525

The Dow Chemical Company

The WBCSD Global Water Tool has provided a unique and

valuable perspective on the water use and relative corporate risks

in our global operations. We have used the metrics and mapping

results to review corporate risks communicate with internal

stakeholders. The user-friendly outputs in terms of Global

Reporting Initiative metrics are especially useful and we plan to

use the outputs of this tool in further external communication to

stakeholders as well.

2626

PepsiCo International

The new WBCSD Global Water Tool is a significant step in

addressing world water issues. It is the first tool of its kind

available in the public domain, and will have marked impact in

helping companies, governments, and other interested

stakeholders proactively assess and manage their water resource

risks.

The WBCSD Global Water Tool is intuitive to use, so the user is

able to get up to speed almost immediately on the basic

functionality of the Tool. As the user's familiarity increases, so do

the evident power and impact of the Tool.

2727

Petro-Canada

The Tool provides a company with a singular and holistic view of

its operations relative to water scarcity. Petro-Canada intends to

introduce the Tool to our business units and encourage them to

include its use in project decision making. We are looking forward

to the future development of the Tool to provide greater information

and therefore increased value to our business.

2828

Alcan

Water for Alcan is a key component to business sustainability and

a top priority in delivering on our EHS FIRSTTM commitments. The

WBCSD Global Water Tool is a powerful and very user-friendly

application to assess our global and regional water footprint in

order to visualize, communicate and assist in high level decision

making to deliver value for internal and external stakeholders.

2929

DuPont

DuPont supported the development of the WBCSD Global Water

Tool as we saw it as an effective means of putting our science to

work to develop sustainable, global solutions. The collaboration

among companies from major industry sectors has been

remarkable and has resulted in a tool of widespread applicability

and value. In our pilot testing, we found that this tool aligns with

our company’s publicly stated water conservation goals by

enabling us to focus our resources more effectively on operations

in locations where water resources are, or will be, under stress.

The Global Water Tool is already helping DuPont towards

achieving our vision of creating sustainable solutions essential to a

better, safer, healthier life for people everywhere. We’re confident

that others will find this tool to be just as valuable in helping them

with their sustainability efforts.

3030

Unilever

This tool should really help the new swimmers in the stream of

water business risk awareness to start to understand their own

issues; it is a really practical follow up to the Water Scenarios

which should have raised the issue of Water for Business.

3131

Shell

Water is a strategic issue for Shell in our operations and

communities around the world. Since we are active in over 130

countries and territories, we saw value in the development of a tool

that could provide portfolio perspective for identifying and

managing risk. We found the Global Water Tool easy-to-use and

the presentation of the output tables of great value for

communication on global water risk. We are also exploring how the

tool can be linked to our annual sustainability report.

3232

Borealis

The Global Water Tool provides a comprehensive and dynamic

picture of our operations' water footprint and is the basis for the

strategic management of water risks.

3333

ITT Corporation

The Global Water Tool is valuable for companies around the globe

that understand clean water resources are critical to business

success and must be managed effectively. The tool is not an end

to itself, but rather the beginning of a much deeper understanding

of the water situation in local business communities. We are

committed to using the tool at ITT to inform decision-making

across our company.

3434

CH2M HILL

Water risks to business and society are significant now and

expected to increase due to the impacts of climate change. The

WBCSD Global Water Tool is an example of the way business

must innovate in the future to proactively identify and address risks

to protect our shareholders, employees, communities and the

environment.