Managing Water from Strategy to Supply Chain

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Recognizing and Responding to Water Related Risks and Opportunities

June 17, 2010

Wesley Gee

Our Speakers Panel

Wesley Gee

Senior Sustainability Consultant, Stantec

Hubert Bolduc

VP Communications and Public Affairs, Cascades

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VP Communications and Public Affairs, Cascades

Suzanne Fallender

Director, CSR Strategy and Communications, Intel

Lisa French

Principal, Guidance and Support, CICA

About CBSR & Members

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High Public Expectations

• GlobeScan: Water as the planet’s top environmental concern

• Ipsos Reid: Canada will have a freshwater shortage problem

89% of Canadians

84% of Canadians

66% of Canadians

believe there is a growing freshwater crisis on the planet

say they are “very concerned” or “somewhat concerned”

about the long term supply/quality of Canada’s freshwater

think that Canada is at risk of freshwater supply shortages

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66% of Canadians

71% of Canadians

82% of Canadians

65% of Canadians

86% of Canadians

30% of Canadians

think that Canada is at risk of freshwater supply shortages

say water pollution is a very serious problem

say solving drinking water problems will require significant

help from companies

say large companies are responsible for ensuring clean

water (versus 70% for government and 55% for citizens)

believe they are making reasonable efforts to conserve

freshwater

believe corporations, businesses and industry are making

reasonable efforts to conserve freshwater

Source: Globescan Circle of Blue Water Issues Research study and Ipsos RBC and Unilever Canadian Water Attitudes survey

Definition of Integrated water management (IWM)

A framework for water-related decisions and actions which

considers not only company requirements but also the needs and

interests of impacted stakeholders and the natural environment.

Companies using an IWM approach

Integrated Water Management

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Companies using an IWM approach

CBSR recently developed The Business Case for an Integrated

Approach to Water Management report.

In the report, we identify four key risks and opportunities that a

company should consider as part of its water strategy:

1. Ability to access water given increasing consumption and

To Manage Risks and Opportunities

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1. Ability to access water given increasing consumption and

decreasing supply

2. Impact on reputation and operations if the social license to

operate is threatened

3. Implications of government regulation, policies and programs

4. Savings potential from more efficient water usage

Risks/Opportunities Vary by Sector

• High Tech and Electronics

– Bulk of water from manufacturing and need for high quality water

– Electronic waste can cause groundwater/ecosystem contamination

• Apparel

– Cotton: water intensive irrigation, agriculture run off

– Textiles: wastewater discharge in water scarce regions

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– Textiles: wastewater discharge in water scarce regions

• Food and Beverage

– Food: ‘virtual water’ and agriculture water intensity and run-off

– Bev: needs high quality source water, competing with communities

• Commercial real estate and property owners

– Cdn buildings consume more than developing world, Australia, UK

– Consider flood risk, storm water mgmt (e.g. rainwater harvesting)

• Mining– High water intensive and potential contamination with tailings

– Ore mining and refining produce large volumes of wastewater

– Community concerned about water quality

• Electricity– Cooling: largest single use of water in thermal power generation

Risks/Opportunities Vary by Sector

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– Cooling: largest single use of water in thermal power generation

– Climate change: impacting hydroelectric power and revealing water-climate-energy nexus (water and electricity compete)

– Link to extraction and burning of fossil fuels (particulate matter)

• Oil & Gas– Oil sands water intensity, impacting surface/groundwater resource

– Water assisted production, removing water from water cycle

– Abandonment/disposal of liquid & solid waste (drilling/production)

CBSR IWM Assessment Tool

Degree to which integrated into decision-making

Highlights performance gaps

Evaluates current

CBSR Integrated Water Management (IWM) approach

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Evaluates current management approach

Evaluates response to material issues

Other Tools, Guidelines & Frameworks

• United Nations CEO Water Mandate

• WBCSD Global Water Tool

• CDP Water Disclosure Initiative

• GRI Water Performance Indicators

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• GRI Water Performance Indicators

• Water Footprinting (Value Chain Approach)

• Alliance for Water Stewardship (AWS)