HOW BUSINESS AND ORGANIZATIONS AROUND THE WORLD ARE ADDRESSING THE

WATER STEWARDSHIP AGENDA

3rd Karachi International Water Conference

Adrian Sym, CEO, Alliance for Water Stewardship

November 21st, 2017

WATER AND STRATEGIC POLICY MAKING

Source: OECD 2017 Water Hotspots

Mongolia

China

India

NepalPakistan

Myanmar

Bhutan

Bangladesh

Japan

New Zealand

Australia

PapuaNew Guinea

Brunei

North Korea

South Korea

Philippines

Indonesia

Malaysia

Singapore

Sri Lanka

East Timor

Taiwan

ThailandCambodia

VietnamLaos

- Up to 3.4 billion could be living in water-stressed areas

of Asia by 2050

- Demand will grow by 30-40% but in most areas water

fully allocated and groundwater depleting

- Asia-Pacific cannot sustain economic growth unless

water is brought into the equation (ADB 2016)

WATER AND STRATEGIC POLICY MAKING

Source: OECD 2017 Water Hotspots

WATER & PEOPLE’S EVERYDAY NEEDS

WATER AND BUSINESS RISK

PHYSICAL RISK: Too much water, too little water,

future sustainability

REPUTATIONAL RISK: Consumer, community,

investor, government perceptions

REGULATORY RISK: Actual or potential

regulator action

WATER AND BUSINESS RISK

WATER AND INVESTOR CONCERN

Water Crises

WATER STEWARDSHIP DEFINITION

The use of water that is:-

socially equitable

environmentally sustainable

economically beneficial

achieved through a

stakeholder-inclusive process

that involves:

site and catchment-based actions

WATER STEWARDSHIP FOCUS

Water as an input to be managed

to

Water as a shared asset to be “stewarded”

Recognizing the value water creates for communities and businesses

With water stewardship, the focus moves from

WHY A WATER STEWARDSHIP STANDARD?

Incentivise private sector water users to exceed minimum regulatory requirements

Enable global consistency of approach and outcomes

Drive transparency

Ensure needs and challenges of diverse stakeholders are understood and addressed

Connect global drivers with locally-appropriate action

AWS STANDARD SYSTEM

SIX STEPS FOUR OUTCOMES

Independent 3rd

party certification

Credible claims of

meeting best practice

AWS STANDARD IN A NUTSHELL

Catchment conditions

Stakeholders concerns

Shared water challenges

Risks & opportunities

Water Balance

Water Quality

Water-related values

Water governance

Site water stewardship strategy & plan

PROCESSES OUTCOMESCONTEXT

GLOBAL UPTAKE OF AWS STANDARD

AWS Certified sites

Sites formally seeking AWS certification

WATER STEWARDSHIP IN PAKISTAN

Nestle Islamabad

Nestle Port QasimArchroma Pakistan Ltd

Nestle Kabirwala

“WAPRO” Project

Lahore City Wide Partnership

PAKISTAN WATER STEWARDSHIP NETWORK

EXAMPLE FROM CHINA: INDUSTRIAL PARKS

Changzhou Textile IP14 firms1 pilot sites

KunshanQiandeng Town136 firms12 pilot sites

Tianjin TEDA1000+ firmsRecognition schemeIP Management

Engage more IPs in China

Other Asian Countries

2014 2015 2016 2017 & Onwards

Kunshan City Industrial Water Stewardship ProgramTop 30 polluters involvedA full-year of engagement and incentive schemes to be introduced

New project proposal with TEDA Eco-center on Capacity Building to Industrial Park Managers in ASEAN countries

EXAMPLE FROM CHINA: INDUSTRIAL PARKS

Reduce Discharge

Permit by 20%

Online Monitoring

Drainage Water Quality

Control

Mandatory Response Plan

for Spilt

Penalty Tariff Rate –

Water/Electricity

Daily Fines on Illegal Discharge

Subsidy for Upgrade /

Renovation

Reward on Actual Reduction of

Pollution Loading

Env. Credit Rating (Green

Finance)

Green Supply Chain

Reward on Achieving Certification (e.g. AWS)

Permit Trading Scheme

PUSH PULL

EXAMPLE FROM CHINA: INDUSTRIAL PARKS

Key learnings

- AWS Standard needs Sector Specific Knowledge

- Needs to further strengthen the capacity of Industrial Park Management

- Approach needs to leverage AWS system to attract other stakeholders to join- Global Brands

- Financial institutions

- Local NGOs

- Various levels of government authorities

- Localize and materialize incentives for water stewardship & AWS Certification

EXAMPLE FROM PERU: AGRO EXPORT

EXAMPLE FROM PERU: AGRO EXPORT

EXAMPLE FROM PERU: AGRO EXPORT

EXAMPLE FROM PERU: AGRO EXPORT

PUSH PULLPOLICY

EXAMPLE FROM PERU: AGRO EXPORT

- One certified site

- Four other sites pursuing certification

- Concrete interest from other retailers & traders

- Investor led project beginning to build capacity to apply AWS Standard with clients in Peru

- Foundations for stakeholder platform

- Negotiations with National Water Authority on linking AWS Standard to “Blue Certificate”

EXAMPLE FROM SCOTLAND: HEALTHCARE

NHS HIGHLAND

- Aiming to have world’s 1st AWS certified

healthcare facility

EXAMPLE FROM SCOTLAND: HEALTHCARE

2012/13 2013-14 2014-15 2015-16 2016-17

Total 77354 79160 83227 90905 93585

75000

77000

79000

81000

83000

85000

87000

89000

91000

93000

95000

£0

00

's

NHS Highland Drugs Spend

Public Health

the Hidden Cost

EXAMPLE FROM SCOTLAND: HEALTHCARE

- Up to 90% of an oral dose is excreted as a active

substance and enters the water system

- More than 600 pharmaceuticals have been found in the

environment worldwide.

- Pharmaceuticals can end up in drinking water, and

accumulate in fish, vegetables, and livestock.

- Some medicines are worse than others because of their

potential to affect people and wildlife, e.g. antibiotics,

antidepressants, painkillers, anti-inflammatories

CONCLUSION

- Clear private & public benefits from water stewardship

- Enables coordination of multiple policy objectives

- Long term, water stewardship needs to demonstrate

contribution to systemic change

- To do so, we need to understand that water

stewardship is 10% H²O, 90% people