Sustainable Water Management @ DSM

Patrick Van Bael CEFIC Brussels - June 2013

Mission of DSM

Page 2

Organization

DSM Innovation

Center

Nutrition Pharma Performance

Materials

Polymer

Intermediates

Corporate Staff

Shared Competences

Business Support

DSM Managing

Board

Page 3

Around 200 locations across all continents

Latin America:

15 locations

1,000 employees

North America:

33 locations

4,000 employees

Europe:

52 locations

6,800 employees

China:

24 locations

3,000 employees

India:

8 locations

700 employees

Page 4

DSM in motion: driving focused growth

Page 5

Sustainability aspirations support strategy

Page

Resource constraints

Scarcity of food, land, materials, WATER

Page 7

1 out of 6 without regular access to safe drinking water

Water-related diseases kill a child every 8 seconds

Water is life !

Page 8

Water is complex

Climat

e

Energy

Food/Fiber

Water

Water in

Energy Energy in

Water

Food/Fiber

impacts on

Climate

Change

Climate

Change

impacts on

Food/Fiber

Pumping and cleaning

water: 19% of the

electricity consumption in

California

(California Dept of Water Resources)

Agriculture accounts for

major part of water

withdrawal (FAO)

Globally 1.2% of all energy

is used for the production of

fertilizer

(International Fertilizer Producers

Association)

Water abstracted for

energy production

represents 44% of total

freshwater abstracted

in Europe

(European Environmental Agency)

Demand to increase

by 30% by 2030 (IFPRI – Note: doesn’t include water

embedded in energy demand)

Demand to increase

by 50% by 2030 (FAO)

Demand to increase

by 40% by 2030 (IEA)

Source: WBCSD

Page 9

Water and economic distribution !

Page 10

Water, scarcity and pollution levels

Page

How do we Act !

• Roadmap

• Policy/vision

• Water Target/Reporting on corporate Level

• Direct Operations

– Risk Assessments (Impact and sustainable

water)

– Ecosystem impact

• Local stewardship : River Basin and Community

– CEO water mandate + stakeholder

engagement

• Value Chain

– Impact assessment

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Page

Impact

availabil

ity

Stakeh

olders

Ecos

yste

m

Value

chain

Water

balanc

e

Busine

ss risk

Impact

quality

Gover

nance

Targ

ets

2015

Vision:

No adverse effect

Sustainable water management

1. Mapping

DSM sites in scarcity areas, Polluters & major water users

2. RISK ASSESSMENT

Determine local impact on water availability & pollution

3. Priorities

Set priorities based on river basin and local stakeholders

4. ROADMAP

Develop business roadmap to reach vision

Sustainable Water Management

Policy/Vision: Sustainable water management

To manage our water resources while taking into account the

needs of present and future users and the various sectors

affecting water use, including political, economic, social,

technological and environmental considerations (United Nations):

DSM activities do not have any adverse effect on the

availability and quality of ground water or surface

water in the region where we operate.

Page

Direct Operations: Targets & Reporting

14

Corporate Reporting

• Annual Report (GRI)

• CDP for water

• CEO water mandate

Corporate plan targets

• Water consumption 2015 : -15% (withdrawal)

• COD discharges to water 2015 : -20%

• Water Risk Assessments for scarcity sites 2015

• Sustainability Aspiration 2020 : no adverse effect

Page

Sustainable Water Management Which topics to include ?

15

Impact availability

Stakeholders

Ecosystem

Value chain

Water balance

Business risk

Impact quality

Governance

Targets

Page

Local Water Scarcity: Global Water Tool

16

Page 17

The water footprint of a product; also for a site ?

Green water footprint

► volume of rainwater evaporated or incorporated into product.

Blue water footprint

► volume of surface or groundwater evaporated,

incorporated into product or returned to other catchment or the sea.

Grey water footprint

► volume of polluted water. Source:

Hoekstra, A.Y., en co (2011) The water footprint assessment manual: Setting the global standard, Earthscan, London, UK.

See page 187, 189, 190.

Page

Water: What is your fair share ?

18

usage by stakeholder

0.02

Agriculture

Domestic

& Industry

total water

3%

Saline water

Fresh water3

Available water

= natural run off

0.2%

Ecosystem

consumption

Fresh water

1%

Ice caps

&

glaciers

Ground

&

surface water

Watershed :

0.02% of total water is available for industrial & domestic use

= 2% of total renewable natural run off

Page

River Basin Water availability : fair share ?

19

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

Total blue WF

Total availability

Runoff

DSM blue WF

Availability for non agricultural use

Total blue WF

Total availability

Scarcity:

5 months per year

Total Blue WF> availability

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Impact water availability

0

1

2

3

4

5

6

7

8

9

10

% o

f fa

ir s

ha

re

Scarcity [months/year]

9 6 3

consumption

Page

Pollution impact

0

90

85

20

15

10

5

0

800,000 600,000 400,000 200,000

% of total volume

Pollution impact

Pollution impact : dilution volume to obtain no adverse impact in a river basin

No adverse pollution impact:

Discharge to river basin below :

• Natural assimilation capacity

• Predictable No Effect Concentration (e.g. PNEC of aqua toxic substances)

Page

Local stewardship : River Basin and Community stakeholder analysis Global Stewardship : value chain footprint + CEO water mandate Direct operations

Supply chain & watershed Mngt Collective action Public policy Community Engagement Transparency

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Page 23

Ecosystem influences (indicative) Drinking Water quality, Marine life, coastal area, river, Land use, Soil pollution, Climate

change, high degree of habitat alteration, loss native-sensitive species, reduced species,

over growth of species, high level of human activity, agriculture, quality disturbances,

biodiversity, protected areas, desertification, changes in river morphology, salinization,

environmental flow requirement, fertilizer, pesticide, artificial lakes and dams

Ecosystems

Page

Journey to sustainable water management

• Sustainable water management is more then

water withdrawals

• Local impact assessments create awareness on

scarcity and pollution beyond current knowledge

and License to operate

• Fair share for water and no adverse impact

• Sustainable water supply chain

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