Water Stewardship

Naomi RosenthalSouth Pole

Principal, deputy director sustainable supply

chains

Alexis MorganWWF

www.sli.do · Event code: H20

Alice Hartley GAP Inc.

Senior Manager, Sustainable Innovation

Interdisciplinary team of scientists, project developers, financing experts and communication gurus.

We help brands bring their vision to life through credible, authentic, and impactful climate action.

South Pole makes climate action happen

South Pole’s work with the fashion industry

1.Understand water risks

and impacts 2. Develop

strategies to address these

3. Implement customized programs

and projects

Example: water footprint assessment for a fashion collection Example: water stewardship

strategy at a textile facility north of Delhi, India

Example: landscape based action in cotton landscapes in China and India

Our clients in the fashion industry include:

Our mission is to stop the degradation of our planet's natural environment, and build a future in which people live in harmony with nature.

WWF, the Global Conservation Organization

WWF’s work on textiles

CottonTargets & strategies for

sustainable sourcing

Water StewardshipFrom water risk to response: internal, collective action &

influencing governance

ClimateScience-based targets, on-ground projects & policy engagement

Other materialsTools to assess holistic

impacts & circularity

Business models

Exploring alternative models for sustainable

consumption & circularity

L to R: © Asim Hafeez / WWF-UK, Audra Melton / WWF-US, Global Warming Images / WWF, WFN,

Policy engagement, alignment, and strategic positioning

Communication: outreach & education

Understand your impacts

Water impacts across the textile industry

Raw Material Production Fiber Processing

Office, Retail, Distribution Centers

Textile Manufacturing

Raw materialsFarming natural fibersExtracting polyester based fibers

Garment Manufacturing

Water use in factoriesCleaning, Chemical treatment, Dyeing

Implementing energy efficiency measuresCollaborate with suppliers to become more energy efficient

Human useCleaning, toilets, drinking water

Logistics service providersDevelop strategies to ensure

water resourcse are safeguarded during logistics

Our global water crisis What does fashion have to do with it?

Our global water crisis

Where do our clothes come from?

8%

21%

65%

5%

Wool (1%)

Raw materials:

Others

Raw materials:

Synthetics

Raw materials:

Cotton

Raw materials:

Cellulosics

Raw materials:

Our global water crisis

Water quantity

Water Quantity

Global average in m3

Production(1 ton) Lint Yarn Fabric

8506

8864

18583 35953

SubtotalFinishedfabric

Carding and

knitting

Example: Cotton Fabric

1 pair of jeans: 10.85 m3

1 single bed sheet:

9.75 m31 T-shirt:

2.72 m3

Example water footprints:

Harvest and ginning

Dyeing

Use phase

Important to always consider the context of where and when that water is used

• Is the area impacted by water scarcity?• Does the water use impact water quality? • How does the water quantity and quality impact other water

users?

• Farm practices differ strongly by region – this has a major impact on blue and green water footprint

• Efficient dying processes can result in reductions

Our global water crisis

Water QualityExample: Polyester

Oil exploration Refining and Petrochemical

Polymerization and fabric

Wastewater from oil fields (or produced water) may contain:

• Benzene• Lead• Arsenic• Salt• Chemical

additives

Water quality issues

Wastewater from processing may contain

• Phenol• Benzene• Lead• Arsenic

Fabric processing and finishing produces high quantities of wastewater, as seen below (m3/ton).

Water access, sanitation and hygiene (WASH) are essential for health and well-being. Guaranteeing access in local communities and at the workplace is one of the Sustainable Development Goals.

Our global water crisisWater Access, Sanitation and Hygiene (WASH)

WorkplaceDirect OperationsFactories, thread mills, retail locations

Indirect OperationsFarms, raw materials processing facilities, distribution and logistics

Local CommunityBeyond the fenceWorkers’ homes and communities around direct operations’ facilities

Water, as a fundamental human right, is the quintessential common pool resource. Water is publicly controlled, makinggovernance the basis of all water challenges and a critical Sustainable Development Goal target.

Our global water crisisWater Governance

WorkplaceInternal water governanceHow water is governed across operations and corporate levels

BasinGovernance of the local supplies & demandsHow water is governed within the basin informswater balance & quality

Nationally & TransboundaryWater is not simply a matter of basingovernance; it is moved and forms both conflictand drives cooperation across borders

Source: Faronosi et al.(2018)

Freshwater species are in worse condition than any other group: they’ve seen an 83% decline since 1970.

Our global water crisisFreshwater Ecosystems

83% ↓

Source: WWF (2018)

Understand your risks (& response options)

Water risk: from impacts to dependencies

Basin impacts & dependencies

Physical risk

Regulatory risk

Reputational risk

Operational impacts & dependencies

Physical risk

Regulatory risk

Reputational risk

WATER RISK EXPOSURE

(i.e., the nature of your business & your operational

practices)

(i.e., the nature of your basin –

contextual water status)

Water risk: from risk to financial impact

Plachimada, KeralaA major F&B company was shut down due to community protests for water abstraction & pollution (2004) = Reputational risk

Tirupur, Karnataka700 textile SMEs were shut down due to concerns of water pollution (2011) = Regulatory risk

Farakka, West BengalA coal-fired power plant shut down five of six turbines due to water scarcity (2018) = Physical risk

Tuticorin, Tamil NaduState government shut down a copper plant on groundwater contamination concerns (2018) = Regulatory risk

Operational expendituresCapital expendituresAdministrative & staffing expendituresCompliance & legal expendituresLost production/revenueBrand & sales

=

Specifics of water risks assessments

Water risks can include:• Physical• Regulatory• Reputational

Use multiple, peer-reviewed data sources whenever possible

Consider business operations andpriorities

Use local and company-specific dataResults in clear, contextual responses

From risk to response: context & scale

Water stewardship

Water Stewardship is the use of water that is socially and culturally equitable, environmentally sustainable and economically beneficial, achieved through a stakeholder-inclusive process that involves site-and catchment-based actions.

- Alliance for Water Stewardship (2019)

© A. Morgan

The Alliance for Water Stewardship

© A. Morgan

Tropical Mix Land Restoration, Panama

Take action!

WOMEN + WATER STRATEGYAlice Hartley, Gap Inc.

WOMEN + WATER

WOMEN

80% OFGARMENTWORKERS

20% OFFRESHWATER POLLUTION

WATER

G L O B A L A P P A R E L I N D U S T R Y

Source: IFC report: Global Apparel Supply ChainSource: NRDC's Clean by Design Initiative

1000 GALLONS TO PRODUCE1 PAIR OF JEANS

200 MILLION HOURS SPENTCOLLECTING WATER

Source: Gap Inc. LCA

Source: UNICEF

GAP INC. COMMITMENTS2020 GOALS

WATER & CHEMICALS

Reduce water use during product manufacturing processes

Improve safe access to clean water

Eliminate hazardous chemicals (ZDHC)

WORKER WELL-BEING

Eliminate red rated vendors

Reach 1 million women through P.A.C.E.

10,000 teens and young adults to participate in This Way Ahead

ENERGY & WASTE

50% carbon emissions reduction for global operations

80% waste diversion from U.S. facilities

WATER STEWARDSHIP STRATEGY

Education & knowledge about water, sanitation & hygiene (WASH) and improved access to WASH services and products

PRODUCT DESIGN MANUFACTURING WOMEN

Our strategy is focused on improving water stewardship in the areas where we have control and influence, and supporting access to water for women and communities touched by our business

Smarter product design prioritizing water reduction through manufacturing techniques & process efficiency

Improve practices at fabric mills & laundries to reduce use of water and chemicals

Education & knowledge about water, sanitation & hygiene (WASH) and improved access to WASH services and products

WATER

2

10

2

80

588

65

1

12

22

85

ENERGY CHEMICALS

Yarn Spinning Fabric Production Dyeing & Finishing Garment Manufacture

RESOURCE USE IN DYEING & FINISHINGDISTRIBUTION OF WATER, ENERGY & CHEMICAL USE IN TEXTILE PROCESSING (% OF TOTAL USE)

Product Design

RAW MATERIALS

FABRIC CREATIONGARMENT CONSTRUCTION

USE & CARE

END OF USE

• WATER QUALITY PROGRAM

• WASHWELL PROGRAM• INDIGO DYEING

ManufacturingOUR MILL SUSTAINABILITY PROGRAM TAKES A HOLISTIC, PHASED, AND IMPACT-DRIVEN APPROACH.

Gap’s Minimum Expectations

Sustainable Apparel Coalition – Higg Facility Environment Modules (FEM) 3.0

Zero Discharge of Hazardous Chemicals (ZDHC) – MRSL and Wastewater Guidelines Testing Program

Social & Labor Convergence Project (SLCP)

Mill Efficiency Programs

Water Goal Progress and Apparel Impact Institute

• Identify• Fund• Scale• Measure

https://apparelimpact.org/

Women

GAP INC. P.A.C.E. (Personal Advancement &

Career Enhancement)

WATER, SANITATION & HYGIENE (WASH)

WATERSTEWARDSHIPwith industry

W+W ALLIANCE LOCATIONSINDIA

U S A I D + G A P I N C . | W O M E N + W A T E R A L L I A N C E

Significance to apparel industry: Primarily cotton growing districts

State population: 112 millionRural share: 55%Poverty rate (rural): 24%

MAHARASHTRAYavatmal and Wardha

Significance to apparel industry: Districts along Narmada river basin and presence of textile mills

State population: 73 millionRural share: 72%Poverty rate (rural): 36%

MADHYA PRADESHSehore, Indore, Dewas, Dhar and Khandwa

36

A L L I A N C E D I S T R I C T S

Women’s Agency and Self-Efficacy

FinancingGovernance

Water Stewardship

USAID GAP INC. WOMEN + WATER ALLIANCE: IMPACT (2018)

5,000 WASH loans$1.2 M

Water stewardship pilots:• Cotton• Mill (Vardhman)

20,000 reached

Video – Stories of Change

https://www.globalwaters.org/resources/videos/women-water/gap-usaid-women-water-alliance-stories-change-2019

Tropical Mix Land Restoration, Panama

Deep dives

Deep dive 1

Inside operations Beyond the fence

vs.

Inside operations

Inside operations

Develop strategies for increasing water efficiency (or eliminating use).

○ Use dope dyeing for synthetic fibers to reduce intensity of dyeing process

○ Digital printing to minimize water use during washing and fixing

Minimize the use of chemicals and implement a wastewater strategy.

○ Remove harmful chemicals from the manufacturing process

○ Consider implementing a solution for microplastics (filters, treatments, pre-washing)

Ensure the implementation of WASH policies.

○ Clean water and enough toilets and handwashing facilities in manufacturing locations

○ Provide sanitation and hygiene workshops where necessary

Inte

rnal

ac

tions

Water Quantity Water Quality WASH

Stan

dard

s an

d La

bels

Beyond the fenceUnderstanding water use from a watershed perspective

Towns Cities

Farms

Industries

Nature

Energy

Business impacts on the watershed:

● quality: potential harms to water quality, exacerbation of water availability, effects over local ecosystems

● quantity: water shortages and low water quality may affect consumers impacting product sales

Watershed risks on business ops.:

● direct operations: interruptions in production due to water shortages, low water quality, etc.

● value chain: disruption in supply of raw materials, difficulties in logistics and distribution, etc.

Deep dive 2

Scaling through Industrial Park Stewardship (China) Scaling through Bankable Nature Solutions (Turkey)

vs.

Taihu & Suzhou area:

• 37% of the national textile production

• 50 National Industrial Parks

• 10,000 dyeing & printing units in Jiangsu

• Wetland loss & water quality challenges

45

Scaling through a multi-level Industrial Park stewardship

Photos: Hohai University, Nanjing, China

A multi-level stewardship pathway for the fashion industry in China

National Level Basin Level Industrial Park Level Site Level

Green technologies &

standard promotion

Basin transparency and stakeholders

roundtable

• Awareness raising• Capacity Building• Best practice sharing• Guidelines development

Reduce shared water risks for business, ecosystem and communities

Water Stewardship in China: Industrial Parks & AWS

Scaling through Bankable Nature Solutions for Textiles

Fun

ds

Year 1

Year 0

Year 3

Year 2

Year 5

Year 4

SEED FUNDING• WWF• Grants• Donors• Corporates• Development Banks

INVESTMENT• Banks• Development Banks• Investors• HNWIs

REPLICATE AND SCALE• Retail Investors• Institutional Banks• HNWIs

Bankable Nature Solutions:Leveraging Capital for Water

1x

~20x

~50-100x

Farming

Deep dive 3Cotton value chain: Farming vs. dying

Dyeing

Deep dive 3Cotton farming

Top 5 2014 Cotton Lint producers

2014 production in thousands of tonnes (FAO Stat)

WRI Water Stress Map - India USDA Map - Cotton Production in India

Cotton by the numbers

2.4 percent of the world’s arable land 24 percent of the world’s insecticide market11 percent of the sale of global pesticide73 percent of cotton is irrigated land.

Deep dive 3Cotton dyeing

Photo Credit: Lu Guang/Greenpeace

• Dyeing cotton is often a more water and heat intensive process than dyeing polyester

• Cotton often only takes up only 75% of dyes used, even when salts and alkali are added to the solution

• It is possible to avoid dyeing all together (undyed cotton – also in colors), use low impact dyes, or natural dyes

• Important to evaluate wastewater management strategy at production facility

• OEKO-TEX, Bluesign and GOTS can be beneficial to ensuring minimum requirements are met

… here is what you can do next

Mount Sandy Biodiversity, EcoAustralia: Mount Sandy brings together indigenous and non-indigenous communities of Australia by promoting traditional land management for biodiversity conservation

Textiles production and processing regions

WWF On Ground programmesPotential WWF work

WWF textiles partnership

Turkey

Pakistan

India

Vietnam

China

HSBC, H&M, Tommy Hilfiger,

Target and Tchibo

HSBC, Tommy Hilfiger and SDC

HSBC, PVH and IKEA

H&M, IKEA and Tchibo

WWF on-ground work on WATER and textiles

Levi Strauss &

Co.

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