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Sustainability Topics for Sectors: What do stakeholders want to know? WATER UTILITIES May 2013 Page 1 of 24 This table shows a list of topics identified as relevant by different stakeholder groups. They can be considered as stakeholders’ suggestions or requests for topics to be monitored or disclosed by organizations. Additional information about the project can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics- Research/Pages/default.aspx 49 – Water Utilities 32 Topics Companies that purchase and redistribute water to the end-consumer. Includes large-scale water treatment systems. Sustainability Category Topic Topic Specification (if available) Explanation Reference(s) 1 Constituency Environmental Energy efficiency of operations Water treatment and wastewater treatment systems Energy demand in provision of water and wastewater services Energy required to be consumed in sourcing and treating water to a quality that meets social demands for industrial and health applications, and for treating wastewater to a standard that protects the health of the community and the environment. Measure can be reflected as energy demand per unit of water or wastewater treated. Social and environmental requirements for high standards of water and wastewater treatment require higher energy inputs to achieve this outcome. The issue is exacerbated as water resources diminish, and quality 430, 556 Business

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Page 1: Water Utilities - Global Reporting Initiative · water efficiency opportunities in energy utilities, and energy efficiency opportunities in water utilities. Risks include reduced

Sustainability Topics for Sectors: What do stakeholders want to know?

WATER UTILITIES

May 2013 Page 1 of 24

This table shows a list of topics identified as relevant by different stakeholder groups. They can be considered as stakeholders’ suggestions or requests for topics to be monitored or disclosed by organizations.

Additional information about the project can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

49 – Water Utilities

32 Topics

Companies that purchase and redistribute water to the end-consumer. Includes large-scale water treatment systems.

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Environmental Energy efficiency of operations

Water treatment and wastewater treatment systems

Energy demand in provision of water and wastewater services Energy required to be consumed in sourcing and treating water to a quality that meets social demands for industrial and health applications, and for treating wastewater to a standard that protects the health of the community and the environment. Measure can be reflected as energy demand per unit of water or wastewater treated. Social and environmental requirements for high standards of water and wastewater treatment require higher energy inputs to achieve this outcome. The issue is exacerbated as water resources diminish, and quality

430, 556 Business

Page 2: Water Utilities - Global Reporting Initiative · water efficiency opportunities in energy utilities, and energy efficiency opportunities in water utilities. Risks include reduced

Sustainability Topics for Sectors: What do stakeholders want to know?

WATER UTILITIES

May 2013 Page 2 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

of source water deteriorates. Increased energy demands for provision of water and wastewater services impact upon the financial value of these services, and increase the greenhouse gas footprint of a utilities. Energy generation activities consume large volumes of water, creating a spiraling impact on the cost of provision of both services. This impact is a strong driver to seek water efficiency opportunities in energy utilities, and energy efficiency opportunities in water utilities. Risks include reduced economic viability of more sustainable use of water and wastewater resources, such as water recycling and fit-for-purpose reuse, and nutrient recovery from wastewater treatment. Opportunities include the increased viability of renewable energy technologies, including solar in isolated locations, hydropower and methane capture for energy generation.

Relative amount of energy used in water treatment systems and related costs to both the business and its consumers. Relates to the integration of energy management strategies in core systems, such as aeration, pumping and nutrient removal systems as well as the number and frequency of trainings provided to operations staff on such strategies.

86, 562 Business

Page 3: Water Utilities - Global Reporting Initiative · water efficiency opportunities in energy utilities, and energy efficiency opportunities in water utilities. Risks include reduced

Sustainability Topics for Sectors: What do stakeholders want to know?

WATER UTILITIES

May 2013 Page 3 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Accounting for as much as 55% of facility operating budgets (see document), energy costs are a major concern for water-wastewater utilities. A current lack of expertise in energy efficiency strategies - through equipment upgrades and monitoring strategies - contributes to unnecessary costs, energy consumption and pollutant emissions.

Natural water systems impacts

Water-related infrastructure

Water management over the twentieth century often involved large infrastructure projects such as dams and river diversions. These projects were used to address both conditions of water scarcity and water excesses; namely, the construction of artificial water storage facilities (dams) or the exploitation of natural systems (aquifer storage and recharge), allowing water to be stored for use during periods of scarcity, and controlling its potentially devastating impacts during floods. Over time the limitations of the hard infrastructure approach have become increasingly clear. For example, in the Netherlands, it was realized that continual heightening of dykes was ultimately unsustainable. This has led to a new approach that foregrounds respect for natural hydrological conditions and acknowledges the limitations to the benefit of hard infrastructure. Experience is now showing that substantial alterations in hydrological conditions, most notably changes in the natural flood pulse caused by interventions such as inter-basin transfers, have led to unintended consequences, sometimes called revenge effects. These include the deterioration of ecosystems, especially wetlands, which

35 Mediating Institution

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Sustainability Topics for Sectors: What do stakeholders want to know?

WATER UTILITIES

May 2013 Page 4 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

if left unaltered offer a wide range of ‘benefits that are often essential to maintaining a basic standard of living in both urban and rural areas’.

Water-related infrastructure imposes many changes on natural water systems. Large dams built for water storage, recreation, or flood control are intended to alter the natural hydrologic regime by affecting the size, distribution, and timing of streamflow. They also trap sediments and food sources used downstream in deltas, and affect temperature regimes leading to changes in ecosystems. Major irrigation systems withdraw water from rivers or lakes to be used consumptively on fields to grow food, reducing flows in natural systems. These physical, chemical, and geomorphological changes affect the biological productivity and characteristics of aquatic ecosystems, which in turn affect flora and fauna as well as economics and politics

434 Mediating Institution

Fresh water availability

Management of reduction of fresh water availability due to water collection and distribution projects

As the global population grows and demand for food and energy increases, the pressure on freshwater ecosystems will intensify. To add to this, the main effects of climate change are likely to be felt through changes to the hydrological cycle.

428 Civil Society Organization

Water sources - primary and alternative; infrastructure for collecting and distributing water; and risks to water quality and quantity. Types of risks that exist in relation to water quality and quantity; processes for monitoring

32, 561 Business

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May 2013 Page 5 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

such risks; identification and use of alternative water sources; potential and actual impacts on human health, environment and surrounding infrastructure. Risks include CBR contaminations, infrastructure collapse, natural disasters, etc. Related to types of water sources from which water is retrieved and to which it is redistributed. These include surface water (in river, lake, wetland), under river flow water (found in hyphoreic zone), groundwater (from pore space of rocks and soil), sea water, and frozen water (icebergs). Involves available quantity of water from such sources. Identification and use of alternative water sources in case of extreme weather events; includes interconnections with other water systems (storm, rain, etc.) in case of need due to natural disaster, extreme weather conditions, contaminations, etc. Relates to conservation plan in case of water shortage. Focused on the impending global freshwater shortages due to population growth and environmental changes, studies show that a diversification of water supply sources can lessen the environmental impacts of water collection and distribution projects. The quality and quantity of available water are sometimes not given sufficient attention in long-term planning. Integrating potential quality and quantity issues into planning processes facilitates protection of the environment and a utilities abilities to meet the demands of its consumers. Ultimately, safe drinking water and wastewater treatment and service are essential to the health and

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Sustainability Topics for Sectors: What do stakeholders want to know?

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May 2013 Page 6 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

economic vitality of society. CBR threats exist that water utilities must be prepared to prevent and deal with.

Water resource management

Measures taken to ensure water availability. Water availability includes protecting the natural stock of water (both ground and surface) against overuse and pollution, as well as against peaks and troughs in availability. However, it also includes ensuring availability within the natural environment to ensure that ecosystem services are sustained. With increasingly frequent extremes and observed declines in river flow and run off, water availability is likely to become a greater challenge in the future. Buffering water resources against climate change as well as changes to demand and supply will require “no regret” investments and long term inclusion of risk mitigation and adaptation strategies within investment decisions.

605 Business

Local, national and regional agreements

Describe water management on local, national or regional level. Rivers or lakes are sometimes shared among various different countries. For example, the Nile River Basin is shared by 9 countries. Of these, Egypt and Sudan undertake very substantial withdrawals from the river. This underscores the importance of irrigation for their agricultural economies. However, these withdrawals are several times the amount of water generated from within these two countries, with Egypt being by far the biggest consumer. All of these countries located at the Nile River Basin are already in a situation of water stress

605 Business

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WATER UTILITIES

May 2013 Page 7 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

(i.e. when the demand for water exceeds the available amounts during a certain period or when poor quality restricts its use). Economic and trade policies play a crucial role in promoting the sustainable use of water resources. The question that arises is what sort of policies are best suited to ensuring sustainable outcomes at national, regional and global levels. There is a tendency towards protectionist policies that protect national or regional resources, particularly as water becomes scarcer and more valuable. Protectionism argues that use of economic instruments and the market mechanism risks having water resources diverted to regions that have more economic prowess, leaving the vulnerable further marginalized. However, enacting protectionist policies can also foster a climate of inequality where water poor regions cannot afford products that have high water footprints. Policy-makers have to be cognizant that neither the market-based nor the exclusive reliance on command-and-control approaches can be a ‘one-size-fits-all’ approach. After all, what may seem like a beneficial intervention in one place, may have unintended consequences in others, given the complexity of the links between countries and regions. As some theorists suggest, resource scarcity in one region can have significant indirect effects on the international community. Hence, if countries share one water source, it is

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May 2013 Page 8 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

important to develop measures for regional water management in order to ensure that the interests of all the countries dependent on this one water source have the ability to use it.

Wastewater quality

Risk management

Identification and management of risks to wastewater quality in relation to contamination (of the water itself and environment through which it flows) as well as the infrastructure used for transportation. Includes the materials (rigid or flexible) used for sewage systems; design capacity and expected lifeline; number of connections (to households, commercial, industrial and natural discharge locations, including streams, lakes, etc.); number of necessary upgrades due to leaks and breakage, as well the frequency of upgrades; environmental impacts of pipeline construction. Sewerage systems are complex and require intensive construction and maintenance. Such construction and maintenance can lead to environmental and social threats, such as disruption to the biodiversity, contamination of groundwater, etc. Additionally, traditional estimations of wastewater flows from households and businesses often leads to an inflation of system design flows by wastewater treatment plants. Such inflation can and does lead to the following unintended consequences for onsite treatment systems: costs to the consumers, ineffective flow equalization and pressure distribution, and inability to adequately remove targeted pollutants such as nitrogen.

564, 565 Business

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Sustainability Topics for Sectors: What do stakeholders want to know?

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May 2013 Page 9 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Wastewater reuse

Adherence to regulations on wastewater reuse

Level of compliance with regulations. Successful wastewater reuse projects must take into account all regulations - those specific to wastewater treatment plants and utilities to which the wastewater is distributed - with which they must comply during the planning process. This includes, but is not limited to, applying for required permits, such as permits for ground/surface water withdraw and water quality parameters; following air emission limits of relevant power plant. Ultimately, such compliance is evident in the processes employed for monitoring and ensuring wastewater chemical compositions and flow rates based on wastewater availability, composition, and water treatment process fluctuations. In some states of the USA, such as Florida, there is currently a lack of a single regulatory framework for wastewater reuse at electric utilities. Consequently, wastewater-electricity projects are often delayed by necessary compliance with a range of regulations from different agencies. Those wastewater treatment plants that distribute water to other utilities must also ensure that the water quality and delivery flow rates meets the quality and volume needs of the other utility company on an annual, seasonal and hourly basis.

563 Business

Water quality - End product

Type of water treatment

Quality of water relates to types of water treatments employed, applicability of water to different purposes, and number of incidents of water contamination. Treatments vary depending on water source and the nature of the river basin. For instance, sea water requires

32, 191 Business

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Sustainability Topics for Sectors: What do stakeholders want to know?

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May 2013 Page 10 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

desalination (distillation and reverse osmosis) in order to become fresh water. Water quality is essential to human and environmental health. As in the United Kingdom, regulations and standards exist to monitor and define the values of chemical, microbial and physical parameters for water. The following barriers (or process stages) can be applied in various combinations to facilitate water treatment: screening and micro-strainers remove find solids (leaves, plant fragments) through fine steel or plastic mesh; aeration removes dissolved iron, manganese and volatile organic compounds by using a cascade or fountain; chemical coagulation involves a process of agglomerating micro-organisms into larger particles by adding metal salts such as aluminum sulphate or ferrible chloride to precipitate as hydroxide flocs; clarification involves removal of coagulated particles through sedimentation (horizontal flow sedimentation or upward flow floc blanket clarifiers); filtration, a widely used process, involves water passing through porous beds of graded sand or another inert material; active carbon adsorption involves production of activated carbon by controlled combustion of carbonaceous material such as wood or coconut shells to produce a black porous material with a high affinity for organic compounds; disinfection (the most important objective) involves use of strong oxidizing chemicals and sometimes ultra-violet light.

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Emissions to air Wastewater treatment plants

Types, relative amounts and frequency of pollutants generated by wastewater treatments. Relates to volume of wastewater treated; infrastructure capacities and stability. Wastewater treatment plants tend to generate odor and can often generate pollutants if the water is not treated properly and discharged into the environment. Volume, frequency and levels of concentration of the pollutants (include odor) depend on infrastructure design and construction as well as types of treatments employed.

544 Business

Biosolids management

Wastewater treatment processes

Relative amount of biosolids produced by wastewater treatment plants and distributed for other purposes. Biosolids are organic solids derived from sewage treatment processes that are in a state that can be managed to sustainably utilise their geotechnical properties, for instance as a geotechnical fill for construction. Wastewater treatment plants produce significant amounts of biosolids. Traditional options for managing the waste center primarily around disposal in the form of incineration, landfilling or production of fertilizer for land application. Due to environmental concerns and increasing government regulations, wastewater utilities are diversifying biosolids management and use.

128, 216 Business

Pathogen grow management

Water management infrastructure

Measures taken to improve water quality or water utility infrastructure to avoid the creation of pathogens. The construction of infrastructure, including dams and

35 Mediating Institution

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May 2013 Page 12 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

irrigation projects, plays an important part in meeting demands for water. Yet while they contribute to food and energy and help manage the extremes of water, water resources infrastructure can also adversely impact human health. Dams and irrigation projects can, if not appropriately designed and managed, create breeding grounds for, for example, black flies that spread onchocerciasis and mosquitoes that spread malaria, lymphatic filariasis and Japanese encephalitis. These projects may also create habitats that encourage growth of the host snail of schistosomes.

Untreated wastewater discharge

Measures aiming at reducing untreated wastewater discharge. Illegal and unreported releases of untreated wastewater continue to be an issue all over the world. For example, up to 90% of wastewater in developing countries flows untreated into rivers, lakes and highly productive coastal zones, threatening health, food security and access to safe drinking and bathing water.

78 Mediating Institution

Water pollutants' treatment

Endocrine disruptors

Leading companies also partner with technology providers to investigate treatment of emerging water pollutants such as endocrine disruptors.

460 Financial Markets & Information Users

Recycled wastewater quality

Post wastewater treatment

Relates to treatments applied to wastewater and use of ultimate output (recycled water). Multiple types of wastewater treatments can be adapted to different uses, such as in local refineries and power generation companies. For instance, recycled/ reclaimed water can be distributed to local electric utilities for use in their

563 Business

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May 2013 Page 13 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

production systems, i.e. power generation cooling systems or discharged to streams to promote environmental flows. Different 'types' of water exist based on treatment: tertiary water refers to water that is filtered and disinfected for industrial and irrigation use; nitrified water is nitrified tertiary water for cooling towers; softened RO water is secondary water with either lime clarification or MF plus RO for groundwater recharge; etc. Recycled water is integral to social and environmental security. Impending regional freshwater shortages due to population growth parallels increasing demands in related industries. Single treatment of wastewater limits potential use ability of wastewater for multiple purposes.

Relative amount of recycled wastewater and discharge locations. Recycled water is integral to social and environmental security. Impending regional freshwater shortages due to population growth parallels increasing demands in related industries. Single treatment of wastewater limits potential use ability of wastewater for multiple purposes.

563 Business

Sewage and sludge treatment technologies

Best practices involve the application of innovative sewage and sludge treatment technologies in combination with biogas production.

460 Financial Markets & Information Users

Social Water use rights Local communities' water use rights

The role of business in the context of water has been controversial. The relationship a company has with water is complex, and can be divided in three different

252 Mediating Institution

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May 2013 Page 14 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

categories: · Companies as service-providers (e.g. water utilities). · Companies as users of water (This applies to almost all industries, however businesses producing water-based products or who use water intensively, such as silicon chip manufacturers, oil industry, beverage companies, or food- and feed processing industries, will face greater public scrutiny) · Companies as enablers of access to water (e.g. manufacturers of water and wastewater treatment equipment) Water is essential for survival, to maintain life, to remain healthy, to produce food, and to clean the surroundings in which human beings live. If the right to gain access to water is not realised or if impediments to the realisation of that right are in place, there are implications for other rights, such as the right to an adequate standard of living, and the right to be free from discrimination. Water also plays an important role in many cultures and faiths therefore reduced access to water could also violate specific cultural rights. In addition it may have implications on a range of civil and political rights. The human rights implications of water related concerns therefore go beyond the immediate issue of access to water.

Access to fresh water

Water demand and water treatment increase due to population growth

To find out how much water is needed in the area serviced by the water management facility, a water assessment and water generation data collection should be conducted, which includes collecting data about the rate of population growth/decline in the area serviced by the facility.

377 Mediating Institution

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May 2013 Page 15 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Population growth and increasing urbanization raises questions for government planners about the availability of water resources to support such developments and the wastewater impacts they generate. Uncertainty about future pressures on the resource affects water management, but uncertain water availability may itself pose a risk to economic activity and urban development.

Access to water Local community consumers

Measures taken to make water easily accessible to everyone, as not every region has access to water. For example, modern African societies have not sufficiently developed the adaptive capacities they need to guarantee basic households for water and other vital services. Often, water is carried long distances, a burden borne mainly by women and children. In urban and peri-urban areas, water is often only available from vendors at an unfair price and the quality is often poor. Furthermore, the coverage of drinking water supply in sub-Saharan Africa is barely 60%; the world average is about 87%. Of the 884 million people in the world still using unimproved drinking water sources, 37% live in this region. Provision of improved water sources in urban areas remained at 83% between 1990 and 2008. In rural areas, it was at only 47% in 2008, although this represented an 11% increase on 1990 figures, or 110 million more people gaining access to improved water supplies.

118 Mediating Institution

Water pricing issues

Privatized water service concession can limit the local community’s access to water through overpricing

66 Mediating Institution

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May 2013 Page 16 of 24

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Drinking-water safety

Microbial and chemical hazards

Ensure drinking-water safety includes microbial and chemical hazards Access to safe-drinking water is essential to health, a basic human right.

588 Mediating Institution

Corruption Water allocation Measures taken to avoid corruption with regard to water allocation. A formidable problem in many water institutions is corruption. In too many cases corrupt behaviour has become the norm and ironically, corruption can constitute an institution in its own right. Corruption not only undercuts development and raises the stakes regarding risks and uncertainties of water availability and allocation, it also undermines critical foundations of trust, the rule of law, fairness, and efficiency of water institutions. Well-functioning institutions have developed systems of accountability. Considering the frequency of corruption in water, formal systems of accountability are often deterred and replaced by discretionary decision-making, characterized by exclusiveness and limited transparency. This renders water institutions less effective and less prone to adapt to new challenges as the status quo is preferred to protect vested interests.

516 Mediating Institution

Water management

Experts concur that the water crisis is a crisis of water governance. Corruption is certainly not its only cause, but it is a major factor and a catalyst in this crisis. Corruption pervades all aspects of the water sector, it inflates costs for drinking water, how it is detrimental for irrigation or large dams and it abets large-scale water pollution. Corruption creeps into water management in

508 Civil Society Organization

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

many industrialised countries and makes the global adaptation to climate change even more difficult.

Local community engagement

New plant instalment

Utilities are highly dependent on a number of stakeholders to conduct their business, including: Local communities: Not In My Back-Yard attitude is quite strong when it comes to building power plants, waster or water treatment facilities, or transmission lines. Our Head of Utilities referred to this as the ‘banana issue’, Build Absolutely Nothing Near Anything, which is faced by the sector.

479 Business

Other Business strategy

Climate change affecting business - Fresh water availability

Global concern over water supplies is increasing, and the utility sector will be directly affected by this issue due to the large volumes of fresh water used in power generation. A physical shortage of water (for nuclear and thermal plants) and/or a temporary limit on water usage by local governments (for hydro facilities) can result in drastically reduced outputs, potentially requiring utilities to purchase replacement power from the market to meet supply commitments. As a direct result of the reduced power supply, power prices will spike at these times, compounding the problem for those affected. Nuclear power plants with recirculating water cooling (evaporation cooling towers) consume up to 35% more water than standard coal plants. Poor hydrological conditions in a given year can have a significant financial impact. Going forward, we see this issue growing in importance, as water scarcity gains attention in the public eye and climate change continues to exert its effect on water supplies.

479 Business

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Economic and environmental risks affecting business

Water scarcity, deteriorating water quality, aging distribution and collection networks in developed markets, as well as increased consumption and rapid infrastructure expansion in emerging markets represent some of the key challenges for water utilities. Tightening regulations, political risks and adequate cost recovery are yet other concerns. Leading companies perform active resource management, reduce water losses in distribution, and foster demandside efficiency.

460 Financial Markets & Information Users

Fostering water demandside efficiency

Water scarcity, deteriorating water quality, aging distribution and collection networks in developed markets, as well as increased consumption and rapid infrastructure expansion in emerging markets represent some of the key challenges for water utilities. Tightening regulations, political risks and adequate cost recovery are yet other concerns. Leading companies perform active resource management, reduce water losses in distribution, and foster demandside efficiency.

460 Financial Markets & Information Users

Corporate governance

Executive Board compensation

Executive board compensation and ROE chosen as pricing factor. High profile securities fraud fines (USD 0.6bn, Goldman Sachs vs. SEC), record ESG related provisions (USD 20bn, BP oil spill) and questionable compensation schemes (18.7% of US TARP used for bonus payments) may suggest need for a general corporate governance review.

521 Business

Gender participation on governance bodies

GOVERNANCE / EUROPE: boardroom lady boom: is it possible without quotas? On 22 June, the CapitalCom agency published its 2011 survey into the boardroom gender mix of CAC 40 companies, with fairly encouraging results: the

389 Financial Markets & Information Users

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Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

proportion of women on the board has doubled in recent years, from 10.5% in 2009 to 20.8% in 2011. In January, the French parliament adopted legislation imposing quotas for the proportion of women on the board of major companies. Under the measures, the development of female board membership is mandatory and gradual: 20% for listed groups, public companies of an administrative, industrial and commercial nature by January 2014, rising to 40% by January 2017. The law also stipulates that companies with no women present on their board must appoint at least one within six months of it being on the statute books (voted on 13 January 2011). In France, some 2,000 companies are affected (the 650 largest listed firms and companies with more than 500 employees and those generating sales in excess of €50bn). In terms of sanctions for noncompliance, appointments that run counter to the parity principles are to be declared null and void and attendance fees are to be temporarily suspended. At the European level and at the instigation of the Vice-president of the European Commission, Viviane Reding, the European parliament will decide in March 2012 on whether to adopt common legislation on this matter (a mandatory proportion of women in decision-making positions of 30% in 2015 and 40% in 2020). This will depend on the level of improvement seen based on the selfregulation of European companies, in accordance with the equality initiative adopted by the European

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Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Commission in December 2010 and the European parliament resolution of 17 January 2008 calling for the Commission and member states to promote a balance between women and men on company boards, particularly where member states are shareholders. Europe as a whole illustrates the degree of hesitation between a soft-law approach and conventional legislation (quotas in this instance), but it is clear from the experience at national level that the second method tends to get much better results.

Rainwater harvesting

Measures taken to harvest rainwater. Rainwater harvesting is the accumulation and storage of rainwater for reuse before it reaches the aquifer. Uses include water for garden, water for livestock, water for irrigation, etc. The harvested water can also be used for drinking water if the storage is a tank that can be accessed and cleaned when needed. Water is a resource essential to life, becoming rarer in the face of population growth, urbanization and changing climate. Using rainwater is therefore important, as it can be cleaned and used as drinking water or for the toilet, washing machine or agriculture.

451 Business

Stakeholder relations to conduct business

Regulators and employees

Utilities are highly dependent on a number of stakeholders to conduct their business, including: Regulators: are key stakeholders when it comes to installation permits and the setting of tariffs. Employees: on average, 35% to 45% of the workforce will

479 Business

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

reach retirement age within the next five years. Companies such as RWE AG have set up plans to address this challenge.

Water management

The liberalization trend increases competition and rewards integrated, cost-efficient and customer- oriented water management strategies. The recent recognition of access to water and sanitation as a human right underscores the importance of stakeholder engagement. As pricing strategies come under increased scrutiny, companies opt for increasingly innovative tariff structures

460 Financial Markets & Information Users

Water losses Water distribution

Water scarcity, deteriorating water quality, aging distribution and collection networks in developed markets, as well as increased consumption and rapid infrastructure expansion in emerging markets represent some of the key challenges for water utilities. Tightening regulations, political risks and adequate cost recovery are yet other concerns. Leading companies perform active resource management, reduce water losses in distribution, and foster demandside efficiency.

460 Financial Markets & Information Users

1 All references can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

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References

All references can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

32 Australian Water Association (AWA) & Deloitte Touche Tohmatsu, 2012. State of the Water Sector Report 2012, s.l.: Australian Water Association (AWA) & Deloitte Touche Tohmatsu.

35 Balaji, R., Connor, R., Glennie, P., Gun, J. van der, Lloyd, G.J., Young, G., 2012. The Water Resource: Variability, Vulnerability and Uncertainty. In: W. W. A. P. (WWAP), red. The United Nations World Water Development Report 4: Managing Water under Uncertainty and Risk [Volume 1]. Paris: United Nations Educational, Scientific and Cultural Organization (UNESCO), pp. 77-100.

66 Castan Centre for Human Rights Law; International Business Leaders Forum; Office of the United Nations High Commissioner for Human Rights, 2008. Human Rights Translated, A Business Reference Guide, New York: United Nations Global Compact.

78 Coates, D., Connor, R., Leclerc, L., Rast, W., Schumann, K., Webber, M., 2012. Water Demand: What Drives Consumption?. In: W. W. A. P. (WWAP), red. The United Nations World Water Development Report 4: Managing Water under Uncertainty and Risk [Volume 1]. Paris: United Nations Educational, Scientific and Cultural Organization, pp. 44-76.

86 Consortium for Energy Efficiency, 2010. Energy Efficiency RFP Guidance For Water & Wastewater Facilities, Boston: Water Environment Federation (WEF).

118 Edwards, H., Loucks, D. P., Turton, A. & Winpenny, J., 2012. Transforming Water Management Institutions to Deal with Change. In: W. W. A. P. (WWAP), red. The United Nations World Water Development Report 4: Managing Water under Uncertainty and Risk [Volume 1]. Paris: United Nations Educational, Scientific and Cultural Organization (UNESCO), pp. 289-308.

128 EPA Victoria, 2009. Guidelines For Environmental Management: Use of Biosolids as Geotechnical Fill, Victoria: EPA Victoria.

191 Foundation for Water Research (FWR), 2010. What is Water Treatment?. [Online] Available at: http://www.euwfd.com/html/water_treatment_and_supply.html [Accessed 5 March 2013].

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216 Godwin, A., 2013. Benefits of Biosolids: How Water Utilities are Turning Waste into Resource. [Online] Available at: http://www.waterworld.com/articles/print/volume-28/issue-7/editorial-features/benefits-of-biosolids-how-water-utilities-are-turning-waste-into-resource.html [Accessed 26 March 2013].

252 Institute for Human Rights and Business (IHRB), 2009. Draft: Business, Human Rights & the Right to Water, Challenges, Dilemmas & Opportunities, Roundtable Consultative Report, London: Institute for Human Rights and Business.

377 Muller, M., 2012. From Raw Data to Informed Decisions. In: W. W. A. P. (WWAP), red. The United Nations World Water Development Report 4: Managing Water under Uncertainty and Risk [Volume 1]. Paris: United Nations Educational, Scientific and Cultural Organization (UNESCO), pp. 157-173.

389° Natixis, 2011. Strategy Note Equity Research - Strategy/SRI: Monthly review June 2011, Paris: Natixis.

428 Orr, S., Cartwright, A. & Tickner, D., 2009. Understanding Water Risks: A Primer on the Consequences of Water Scarcity for Government and Business, Godalming: World Wildlife Fund (WWF) UK & HSBC.

430 Overman, T., May, A. & Ryan, G., 2012. Transition to lower emissions water services – a collaborative response, Dublin: IWA World Congress on Water, Climate and Energy.

434 Palaniappan, M., Gleick, P.H., Allen, L., Cohen, M.J., Christian-Smith, J., Smith, C., 2010. Clearing the Waters: A Focus on Water Quality Solutions, Nairobi: United Nations Environment Programme (UNEP).

451 Republic of Korea: Ministry of Land, Transport and Maritime Affairs (MLTM), Presidential Committee on Green Growth (PCGG), Korea Water Resources Corporation (K-water), 2012. Water and Green Growth, Edition I, Seoul: World Water Council (WWC).

460 Robeco SAM, 2012. The Sustainability Yearbook 2012, Zurich: Robeco SAM.

479° Société Générale, 2011. SRI: Beyond Integration, from satellite to core, Paris: Société Générale.

508 Transparency International, 2008. Global Corruption Report 2008, Corruption in the Water Sector, New York: Cambridge University Press.

516 Tropp, H. & Joyce, J., 2012. Water and Institutional Change: Responding to Present and Future Uncertainty. In: W. W. A. P. (WWAP), red. The United Nations World Water Development Report 4: Knowledge Base [Volume 2]. Paris: United Nations Educational, Scientific and Cultural Organization (UNESCO), pp. 567-581.

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521 Unicredit, 2010. Environmental, Social & Governance Research: The Halo's Creed, London: Unicredit.

544 United States Environmental Protection Agency (EPA), 2012. Planning for Sustainability - A Handbook for Water and Wastewater Utilities, Seattle: United States Environmental Protection Agency (EPA).

556 Victorian Water Industry Association Inc, 2011. Water/Energy Nexus - Electricity Issues in the Victorian Water Industry, Melbourne: VicWater.

561 Water Environment Federation (WEF), 2011. Water Sector Interdependencies - Summary Report 2011, Alexandria: Water Environment Federation (WEF).

562 Water Environment Federation (WEF), 2012. Energy Roadmap Version 1.0 - Driving Water and Wastewater Utilities to More Sustainable Energy Management, Alexandria: Water Environment Federation (WEF).

563 Water Environment Federation (WEF), 2012. Municipal wastewater reuse by electric utilities: Best practices and future directions, New York: ASME.

564 Water Service Association of Australia, 2012. National Codes of Australia, Melbourne: Water Service Association of Australia.

565 Water Services Association of Australia, 2000-2003. Materials Fact Sheets. [Online] Available at: https://www.wsaa.asn.au/Codes/Pages/Materials-Fact-Sheets.aspx [Accessed 5 March 2013].

588 World Health Organization (WHO), 2011. Guidelines for Drinking-water Quality, Geneva: World Health Organization (WHO).

605 World Water Council (WWC), 2011. Water for Growth and Development in Africa - A Framework for an Effective Mosaic of Investments, Marseille: World Water Council (WWC).

° Resource available on request and/or for a fee.