CEO Water Mandate and Collective Action

Jason MorrisonInternational Waters Conference 7

Bridgetown, BarbadosOctober 30, 2013

CEO Water Mandate Overview

Launched in 2007 in a partnership between companies and the UN Global Compact, the CEO Water Mandate is a business initiative dedicated to advancing corporate water stewardship.

Function 1. The Mandate constitutes a call-to-action and forum for

companies to improve their water stewardship practices

2. It also provides a strategic framework, research, guidance, and tools designed to help guide this process

Direct Operations:water-use assessments; targets for conservation and waste-water, etc.

Direct Operations:water-use assessments; targets for conservation and waste-water, etc.

Supply Chain and Watershed Management:supplier sustainability strategies; assess and respond to watershed risk, etc.

Supply Chain and Watershed Management:supplier sustainability strategies; assess and respond to watershed risk, etc.

Collective Action:civil society, governments, UN, other water initiatives, etc.

Collective Action:civil society, governments, UN, other water initiatives, etc.

Public Policy:inputs to public-policy making; advocacy on water sustainability, etc.

Public Policy:inputs to public-policy making; advocacy on water sustainability, etc.

Community Engagement: support local groups; water education; infrastructure, etc.

Community Engagement: support local groups; water education; infrastructure, etc.

Transparency:report on implementation and progress

Transparency:report on implementation and progress

Commitment Areas

Sectors Represented

Apparel Agri-Business Beverage

Chemicals Construction Consumer Products

Cosmetics Energy Engineering

Finance Food Footwear

Forest Products Pharma Publishing

Mining-Metals Water Services Water Technologies

Source: World Economic Forum 2012

Societal Risks by Severity and Likelihood

Water Risk and the External Engagement Imperative

Company- Water use efficiency- Wastewater treatment- Compliance- Impacts on communities and ecosystems

Basin / Watershed- Water stress- Water pollution- Inadequate infrastructure- Lack of government capacity- Climate change- Lack of community access to safe drinking water

Often, the greatest risks come from conditions over which the company has the least influence

Business Case: Internal versus External Action

Shared Water Challenges and Collective Action

Shared risk creates a strong driver for collective action among companies and others to advance sustainable water management

Collective Action Preparation and Implementation

ELEMENT 4: Designing Collective Action Engagement

ELEMENT 3: Selecting a Collective Action Level of Engagement

ELEMENT 1: Scoping Water

Challenges and Action Areas

ELEMENT 2: Identifying and Characterizing

Prospective Participants

ELEMENT 5: Structuring and Managing Collective Action

Water-Related Challenges

Water Over-Allocation

Water Supply/Sanitation

Unreliable/Unavailable

Water Quality Deterioration

Flood Damage

Ecosystem Degradation

Water Management

System

CompanyInterests

Insufficient response to water management pressures and requirements

Direct operational impacts or concerned community actors or customers

Infrastructure Management and Funding

Water Governance and

Regulation

Water Planning, Management,

and Pricing

Physical Risk

Regulatory Risk

Reputational Risk

Stewardship Opportunity

Drivers of Water Resource

State

Changes to quality, quantity, or availability; alterations to goals or objectives

Economic Development

Demographic Shifts

Climate Variability

Social Norms and

Expectations

Characterizing Water-Related Challenges, Causes, and Risks

Collective Action Areas and the Water Action Hub• Efficient Water Use• Effluent Management,

Wastewater Reclamation, Reuse

• Community-Level Access to Safe Water, Sanitation, and Hygiene

• Storm Water Management and Flood Control

• Infrastructure Finance, Development, Operation, or Maintenance

• Sustainable Agriculture

• Climate Change Adaptation and Resilience

• Ecosystem, Source Water Protection, Restoration

• Monitoring and Knowledge Sharing

• Engaging in Participatory Platforms

• Public Awareness and Education• Improved Water Governance,

Policy Development, and Implementation

Inadequate Infrastructure System

Poor Catchment Governance

Ineffective Water Management

Water Over-

Allocation

Water Supply

Unreliable

Water Quality

Deterioration

Flood Damage

Ecosystem Degradation

Efficient Water UseEffluent

Management/ Wastewater

Reclamation/Reuse

Community Level Access to Safe Water, Sanitation, and Hygiene

(WASH)

Storm Water Management and Flood Control

Infrastructure Finance, Development, Operation, or Maintenance

Sustainable Agriculture

Climate Change Adaptation and Resilience

Ecosystem/Source Water Protection/Restoration

Monitoring and Knowledge Sharing

Engaging in Participatory Platforms

Public Awareness and Education

Improved Water Governance and Policy Development

Connecting Actions to Underlying Causes

Sasol-Emfuleni Partnership Model

Emfuleni water

conservation project

Emfuleni MunicipalitySasol

(Private sector )

GIZDevelopment funding

Community

Savings from reduced losses

Funding from ring- fenced

savings Seed funding

Reduced riskInfluencing public policy

Seed funding,governance, auditing role

Job creation and improved service delivery

Emfuleni & GIZ/Sasolpartnership agreement (MoU)

GIZ/SasolDevelopmentpartnership

ORASECOM

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Agriculture represents 70% of global water withdrawal; we are engaged in water conservation measures across our business

TraditionalFlood Irrigation

Pivot Irrigation

Drip Irrigation

The potential “prize” is a water savings of nearly 0.25 billion liters/year

Direct Seeding ( DSR)

Traditional

In 2009, PepsiCo applied DSR & saved Over 5.5 Billion liters water

China Company Farms India Community Farms

30% Water

70% GHG

30-50%

Up to70%

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Looking ahead, protection and restoration of

watersheds where we do business is the umbrella under which much of our

long-term, water-related risk will be mitigated in our direct

operations, supply chain, and community.

Positive Water Balance employs a simple “credit/debit”

model to water use and replenishment. The

performance of the India business was assured

externally by Deloitte in 2009 and 2010.

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…and we are expanding beyond direct operations to watershed interventions

Jason MorrisonTechnical Director, CEO Water Mandate

jmorrison@pacinst.org

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