Introduction to Corporate Water StewardshipCDP Supply Chain Webinar

February 2016

Why Antea GroupIntroduction to Corporate Water Stewardship

2confidential and proprietary

Why Water, Why NowIntroduction to Corporate Water Stewardship

3

How the world approaches a 40% demand gap over the next decade will define our future

Even in the best case, is it possible that water will NOT be an issue?

Source: 2030 Water Resources Group, http://www.2030wrg.org/confidential and proprietary

So…..just copy our Energy Program?

Not that easy….there are fundamental differences!

Water - The Next Energy….Right? Introduction to Corporate Water Stewardship

Framing Our Water Strategy:

Water Conservation

Business Resiliency Opportunities

Business Operations

Community Alignment

Supply Chain

4confidential and proprietary

Water and YOUR BusinessIntroduction to Corporate Water Stewardship

Local1 facility

Regional/National10’s of Facilities

Global100’s of Facilities

5

Water-related business risks and opportunities and company strategy depend upon your business perspective!

confidential and proprietary

Strategy Through ImplementationIntroduction to Corporate Water Stewardship

6confidential and proprietary

Facility Optimization

OperationalContext

Corporate Reporting & Disclosure

Annual Sustainability/CSR Reports, CDP Water

Disclosure Project, GRI, DJSI

3 Most Challenging Barriers to Implementing Corporate Water Strategies

Risk & Opportunity Screening

Layered ApproachIntroduction to Corporate Water Stewardship

confidential and proprietary 8

Layer 1

Layer 2

Layer 3

Business Insight

Effort

WRI Aqueducthttp://www.wri.org/applications/maps/aqueduct-atlas

WBCSD Global Water Toolhttp://www.wbcsd.org/work-program/sector-projects/water/global-water-tool.aspx

GEMI Local Water Toolhttp://gemi.org/localwatertool/

WFN Water Footprint Assessment Toolhttp://waterfootprint.org/en/resources/interactive-tools/#CP

Water Risk Monetizerhttp://ecolab.com/sustainability/water-risk-monetizer/

Risk Screening ToolsIntroduction to Corporate Water Stewardship

9confidential and proprietary

Water Risk and Opportunity ScreeningIntroduction to Corporate Water Stewardship

10confidential and proprietary

3 Most Challenging Barriers to Implementing Corporate Water Strategies

Corporate Strategy

Defining a Strategic RoadmapIntroduction to Corporate Water Stewardship

12confidential and proprietary

Ask yourself:

Which elements are relevant and important to our company?

How are we performing against each element?

What is the gap between current vs ideal state?

Where do we best focus effort over the next 3-5 years (priorities)?

Defining Strategic NeedsIntroduction to Corporate Water Stewardship

13confidential and proprietary

Ceres Aqua Gauge

http://www.ceres.org/issues/water/corporate-water-stewardship/aqua-gauge/aqua-gauge

CEO Water Mandate Corporate Water Disclosure Guidelines (September 2014)

http://ceowatermandate.org/files/Disclosure2014.pdf

BIER Water Stewardship Definition and Principles

http://www.bieroundtable.com

Eight companies achieved A-List leadership in CDP Water in 2015

The majority of companies received Management scores of B or B-

How can your company demonstrate water

stewardship?

The Time is RightIntroduction to Corporate Water Stewardship

Adapted from the CDP Global Water Report, Table 1

Stewardship Indicator

Percentage of

Companies

Meeting

Requirement

Require suppliers to report water use, risks and

management and include this within water risk

assessments

24%

Consider a broad range of river basin

stakeholders and factor relevant issues into

water risk assessments such as river basin

management authorities, local communities or

other water users at a local level

12%

Publish a company-wide water policy that

includes:

performance standards for both direct

operations and supplier, procurement and

contracting best practice, a commitment to

customer education and acknowledges the

human right to water, sanitation and hygiene

11%

Have achieved or are making progress against

strategic water management targets and goals26%

Place responsibility for CDP water disclosure at

the highest decision-making level within the

business

18%

confidential and proprietary 14

Facility Optimization

Collecting the Drops: A Water Sustainability Planner

http://waterplanner.gemi.org/module1.htm

Facility Water Mass BalanceIntroduction to Corporate Water Stewardship

confidential and proprietary 16

Facility OptimizationIntroduction to Corporate Water Stewardship

17confidential and proprietary

Opportunity vs Business ValueIntroduction to Corporate Water Stewardship

18confidential and proprietary

www.bieroundtable.com

3 Most Challenging Barriers to Implementing Corporate Water Strategies

Operational Context(Community & Watershed)

Watershed BalanceIntroduction to Corporate Water Stewardship

Watershed / Source Vulnerability Assessment

confidential and proprietary 21

Introduction to Corporate Water Stewardship

>350 watershed assessments in 60 different countries and counting!

Identify stakeholders

Capture stakeholder characteristics, like their mission, urgency, legitimacy and scope of engagement

Map for INTEREST and INFLUENCE

Engage appropriately for each category of stakeholder

Stakeholder Mapping and EngagementIntroduction to Corporate Water Stewardship

confidential and proprietary 22

3 Most Challenging Barriers to Implementing Corporate Water Strategies

Reporting & Disclosure

1. Disclosure requests are ever increasing - it’s important to be prepared to tell an accurate and thorough story

2. Companies are excelling in data gathering and internal risk assessment; there are opportunities to go further

3. Water stewardship “outside the four walls” is key – companies are lagging in their ability to discuss water stewardship in their supply chain and community

Trends in Reporting & DisclosureIntroduction to Corporate Water Stewardship

confidential and proprietary 24

2015 CDP Water Report

4. Target setting (short and long term) is gaining more traction – what can you do beyond reduction targets?

B E T T E R B U S I N E S S , B E T T E R W O R L D℠

Our Global Water Stewardship Service Area Leads:Management talent with business risk and opportunity acumen:

Nick MartinSustainability Practice LeaderSenior Consultant+1 703 861 6997nick.martin@anteagroup.com

Laura NelsonCorporate Reporting & Disclosure LeadConsultant+1 315 552 9834 laura.nelson@anteagroup.com