Embed Size (px)
DESCRIPTION
Greg Koch, Managing Director, Global Water Stewardship, The Coca-Cola Company, USA Risk and response: a business perspective on water security ----PUBLIC LECTURE at Museum of Natural History --- A high level public lecture about the role and priorities for science-policy-enterprise partnerships to reduce the risks of chronic water insecurity
Citation preview
Risk and Response -‐-‐ A Business Perspec3ve on Water Security Greg Koch Managing Director, Global Water Stewardship Office of Sustainability, The Coca-‐Cola Company
Global Water Stress
Classified -‐ Internal use 2
EFFECTS 1. 2/3 of world popula9on in severe water stress 2. 1/3 of world land area in severe water stress 3. Significant water quality degrada9on 4. Precipita9on paBerns change: more droughts
and floods 5. Significant increase in compe99on for freshwater
6. More aggressive alloca9on , increased prices, conflict poten9al
7. Two billion more urban residents by 2030
8. Variable adapta9on by public sector 9. Water infrastructure needs require $1 trillion+
between now and 2025
2020: Water Megatrends and Effects
3
MEGATRENDS
POPULATION GROWTH Expected to increase by 1.5 -‐ 8 billion by 2020
CLIMATE CHANGE 0.8°C temperature increase by 2020
GLOBAL DEVELOPMENT Drama9c increase in number of developed
economies
2020 Water Stress: Rate of Change
4
Classified - Internal use
THIS IS NOT ONLY A DEVELOPING WORLD ISSUE
Classified - Internal Use Only LAKE MEAD, NEVADA
Classified - Internal use
Classified - Internal Use Only
RIVER THAMES, LONDON
DANUBE RIVER, HUNGARY
Recent Events within the Coca-‐Cola system
• Chronic Water Stress • Drought • Community Connec9on • Local WRM Capacity
• Water Quality • Local WRM Capacity • Local Policy
Plant Closure
Find New Water Source
Water Supply Reduc9on
More Stringent Wastewater Treatment
Requirements
• Poor Local Water Quality • Social Reac9on • Poli9cal Reac9on • New Policy
9 Classified - Internal use
• Increased Local Development • Infrastructure Funding Policy • Economic Scarcity
10 Classified -‐-‐ Internal Use
Understanding Risk and Exposure
11 Classified -‐-‐ Internal Use
Global Risk Assessment and Analy3cs
2010 System-‐wide Water Risk Summary in Manufacturing
Our business can only be as healthy as the local communi2es where we operate; access to clean water is one of the most important barometers of a community’s health.
Muhtar Kent Chairman & CEO The Coca-‐Cola Company
“
”
� Water is: – The main ingredient in all of our beverages and essen9al to our manufacturing processes
– A life-‐sustaining resource for the communi9es and ecosystems that make any endeavor possible
– A key component of many of our ingredients, including sugar and juices
– Fundamental to our markets (non-‐export)
12
Why Are We On This Journey?
13 Classified -‐-‐ Internal Use
Strategy, Goals and Partners
�
Global Awareness & Ac3on
�
Plant Performance
�
Watershed Protec3on
�
Sustainable Communi3es
Strategic Framework
Key Partners
Goals
• Reduce: improve water efficiency 20% by 2012 compared with a 2004 baseline. • Recycle: 100% fully treated effluent water. • Replenish: “give back” to communi9es and nature as much water as we use by 2020. • Sustain: source water protec9on plans in all plants by the end of 2012. • Agriculture: water use, soil health and biodiversity, focus on sugarcane, oranges, corn.
14 Classified -‐-‐ Internal Use
Supply Reliability Ø Decreased water availability
Local Social Ø Adverse social climate
Water Resource Sustainability Ø Water resources under stress
Human Health & Well-Being
Safe Drinking Water
Food Availability
Sanitation Economics
Ecological Health
Aquatic Ecosystems & Species
Terrestrial/Riparian Ecosystems & Species
TCCC Risk
Specific Activities
Watershed Protection
Water Access & Sanitation
Education & Awareness
Water for Productive Use
From Risk Analysis to Action
To Date, We Have 386 Community Water Programs in 94 Countries Replenishing 35% of Product Volume
15
� Access to water and sanita9on
� Educa9on and awareness
� Water for produc9ve use
� Watershed protec9on
Includes Support For:
Collabora3on is Key to the Success of Our Community Water Programs
16
Our partners include:
Business Confiden9al
| McKinsey & Company 17
Future demand for water will outstrip our capacity1 to provide it
1 Existing supply which can be provided at 90% reliability, based on historical hydrology and infrastructure investments scheduled through 2010; net of environmental requirements
2 Based on 2010 agricultural production analyses from IFPRI 3 Based on GDP, population projections and agricultural production projections from IFPRI; considers no water productivity gains between 2005-2030
SOURCE: 2030 Global Water Supply and Demand model; agricultural production based on IFPRI IMPACT-WATER base case
Billion m3, 154 basins/regions
Municipal & Domestic
6,900
Agriculture
Industry
4,500
Existing withdrawals2
2030 withdrawals3
3,100
4,500
800
1,500
900
600
Basins with surplus
Basins with deficits
Existing accessible, reliable, sustainable supply1
Surface water 3,500
2,800
100 4,200
Groundwater 700
-40%
Relevant supply quantity is much lower that the absolute
renewable water availability in nature
CAGR
2%
FOOD
WATER ENERGY
POPULATION GROWTH • Expected to increase by 1.5 billion to 8 billion by 2020
• By 2030 the number of urban dwellers is expected to be about 1.8 billion more than in 2005 and to cons9tute about 60% of the world’s popula9on
CLIMATE CHANGE • 0.8oC temperature increase by 2020 • Manifesta9on in water • Unabated, climate change could cost the world at least 5% in GDP each year
• If current policies are maintained, global energy demands are expected to grow by as much as 55% through 2030 and further stress water resources
GLOBAL DEVELOPMENT • Drama9c increase in number of developed economies
• Surging middle class
Food-‐Water-‐Energy Nexus
18
Water, Energy and Food: All Three are at the Heart of the Sustainability Challenge
Southeast Asia, Baseline Water Stress in areas with Irrigated Agriculture
Southeast Asia, Change in Water Stress by 2025 in areas with Irrigated Agriculture (IPCC Scenario A1B)
