(dc2) uso restrito na pwc - confidencial water: a precious asset june 2015 são paulo´s water...
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(DC2) Uso Restrito na PwC - Confidencial
Water: a precious asset
www.pwc.com/water
June 2015
São Paulo´s water challenge
PwC(DC2) Uso Restrito na PwC - Confidencial
Agenda
Why is water increasingly important?
What is the problem in São Paulo?
1
2
5
PwC(DC2) Uso Restrito na PwC - Confidencial
Why is water increasingly important?
1
PwC(DC2) Uso Restrito na PwC - Confidencial
Water is the number one concern for CEOs
WEF, Global Risks 2015
PwC(DC2) Uso Restrito na PwC - Confidencial
Global CEOs are increasingly concerned about long-term issues that affect ability to operate
5.0
4.5
4.0
Fiscal crisis
Weapons of mass destruction
5.0Imp
act
Likelihood
Natural catastrophes
Extreme weather
eventsWater crises
Source: World Economic Forum Global Risks Report (2009 – 2015)
4.0
Unemployment and underemployment
Failure of financial mechanism or institution
State collapse or crisis
Energy price shock
Terrorist attacks
Interstate conflict
Failure of critical infrastructure
Biodiversity loss and
ecosystem collapse
Climate change
Natural capital risks 2009
Natural capital risks 2015
Man-made environmental catastrophes
3.5 5.5
Asset bubble
Failure of national governanceUnmanageable
inflation
Deflation
Failure of climate-change adaptation
Note: Man-made environmental catastrophes was added in 2014
Economic risks 2015
Geopolitical risks 2015
Societal risks 2015
PwC(DC2) Uso Restrito na PwC - Confidencial
The water challenge: Limited supply, increasing demand
1900 20000
500
1000
1500
2000
2500
3000
3500
4000
4500
Saltwater 97.50%
Frozen 68.9%Ground-
wa-ter30.8%
Lakes & Rivers 0.3%
Source: UNEP Vital Water Graphics 2008.
Global water resources Water usage and population since 1900
Source: IWMI 2007; World Bank 2007.
Water usage per year has increased from about 500 cubic kilometers in 1900 to about 3,830 cubic kilometers in 2000
Population has increased from 1.6 billion in 1900 to 6 billion in 2000
What we have: Limited supply of a resource that is un-substitutable.
What we need:Increasing amount of water for increasing number of people.
PwC(DC2) Uso Restrito na PwC - Confidencial
Soon supply will not meet demand
By 2035, global energy consumption will increase 35% … increasing water consumption by 85%
Agricultural water consumption is expected to increase 19% (Source: UN Water stats)
Agricultural water consumption is expected to increase 19%
35%morefood
50%more
energy
40%morewater
PwC(DC2) Uso Restrito na PwC - Confidencial
The water challenge: Too little, too much, too dirty
Water scarcity and drought
Floods and extreme weather events
Spills and impaired water quality
Too little
Too much
Too dirty
PwC(DC2) Uso Restrito na PwC - Confidencial
Climate change and resources scarcity
PwC(DC2) Uso Restrito na PwC - Confidencial
With development there is an increase in water consumption
PwC(DC2) Uso Restrito na PwC - Confidencial
Source: Water Footprint Network, 2012
When water impacts the bottom line • New guidelines to manage and disclose corporate water risk4
2.7 billion people experience severe water scarcity at least one month a year
95% of pathogens and germs eradicated when the backpack liner is placed in the sun for 60-90 minutesSODIS (solar disinfectant method) of liner nearly as effective as chlorination
✓ ✓
PwC(DC2) Uso Restrito na PwC - Confidencial
Too much
Proportion of average annual damages caused by reported natural disasters, 2011
Africa Americas Asia Europe Oceania0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OtherEarthquakeStormFloodDrought
Source: CRED, EM-DAT International Disaster Database, 2012Source: CRED, EM-DAT International Disaster Database, 2012
Estimated damage ($US billion) caused by reported natural disasters 1900-2011
Honshu Tsunami
Hurricane KatrinaKobe earthquake
Wenchuan earthquake
Floods and storms cause the majority of economic damage from disasters.
PwC(DC2) Uso Restrito na PwC - Confidencial
Too dirty
Relative threat from organic loading
Source: WWF-DEG Water Risk Filter 2012
Nutrient enrichment is the most widespread water quality problem.
One in six people does not have access to clean water
PwC(DC2) Uso Restrito na PwC - Confidencial
Water will become the focus for future infrastructure projects
PwC(DC2) Uso Restrito na PwC - Confidencial
What is the problem in Sao Paulo?
2
PwC(DC2) Uso Restrito na PwC - Confidencial
Overview of water distribution in Sao Paulo
PwC(DC2) Uso Restrito na PwC - Confidencial
Overview of water distribution in Sao Paulo – current situation
Source: http://www2.sabesp.com.br/mananciais/DivulgacaoSiteSabesp.aspx
Water distribution System
Stored Volume (May 19, 2015)
Water Production
(m³/s)Population served
Population served (%)
Cantareira 19,70% 33,00
6.500.000,00 34%
Alto Tietê 23,20% 15,00
4.500.000,00 24%
Guarapiranga 82,40% 15,00
4.900.000,00 26%
Alto Cotia 68,60% 1,20 410.000,00 2%
Rio Grande 96,30% 5,00
1.200.000,00 6%
Rio Claro 56,20% 4,00
1.500.000,00 8%
PwC(DC2) Uso Restrito na PwC - Confidencial
Overview of water distribution in Sao Paulo –situation of reservoirs in May 19th, 2015
Cantareira Alto Tietê Guarapiranga Alto Cotia Rio Grande Rio Claro0%
20%
40%
60%
80%
100%
20%23%
82%
69%
96%
56%
PwC(DC2) Uso Restrito na PwC - Confidencial
Overview of water distribution in Sao Paulo – current situation
Source: http://www2.sabesp.com.br/mananciais
Cantareira Alto Tietê Guarapiranga Alto Cotia Rio Grande Rio Claro -
50.00
100.00
150.00
200.00
250.00
300.00
Historical average rainfall level (mm) April rainfall (mm)
PwC(DC2) Uso Restrito na PwC - Confidencial
Why did the water become an issue for Sao Paulo? 1. Insufficient analysis of the hydrological regime of the region:
The Cantareira System studies started during 1960’s decade. In that time, there was no pluviometric station in the region with long historical rainfall series register. There were only five station, with registers for a short period of time – only one of them had data for more than 30 years.
The studies have not taken into consideration the cyclical effects that occur in long periods of time.
Source: http://revistadae.com.br/downloads/edicoes/Revista-DAE-198.pdf
PwC(DC2) Uso Restrito na PwC - Confidencial
Why did the water become an issue for Sao Paulo? The precipitation varies around its historical average: we can have extreme floods during an year and face a drought period on the sequent year.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
100
200
300
400
500
600 Accumulated Rainfall (mm) - Cantareira System
2010 20112012 20132014 Historical Average (calculated in 2014)
Source: http://www2.sabesp.com.br/mananciais
PwC(DC2) Uso Restrito na PwC - Confidencial
Why did the water become an issue for Sao Paulo? 2. Amazon deforestation and the Flying Rivers effect:
The Amazon forest attracts the humidity of the ocean to the continent. This humidity falls as rain over the forest. Through the evapotranspiration of the trees, the forest sends the water back to the atmosphere as steam. This steam flows to the West, South and Southeast, where the rain falls. This steam is called Flying Rivers. When the deforestation occurs, the forest evapotranspiration capacity decreases and the rain does not arrive to the Brazilian farthest regions.
Source: http://planetasustentavel.abril.com.br/imagem/superinteressante-o-brasil-secou-infografico-rios-voadores-560.jpg Source: http://planetasustentavel.abril.com.br/imagem/superinteressante-o-brasil-secou-infografico-nossa-agua-
vem-da-amazonia-rbg-560.jpg
PwC(DC2) Uso Restrito na PwC - Confidencial
3. Increase in demand and large water losses:
Why did the water become an issue for Sao Paulo?
Great Sao Paulo Region population in 1960: 9 million
people
Great Sao Paulo Region population
in 2014: 21 million
people
Around
25% of the
water is lost during distribution
PwC(DC2) Uso Restrito na PwC - Confidencial
What has already being done?Use of the water stored in the system’s technical reserve
The technical reserve is a reservoir of 400 million of cubic meters located under the floodgates of Cantareira System dams. The water of the technical reserve was pumped to the upper levels of the reservoir, increasing the level of the system in more than 20%.
Source: http://www.climatempo.com.br/destaques/wp-content/uploads/2014/05/INFO_CANTAREIRA_OK.jpg
PwC(DC2) Uso Restrito na PwC - Confidencial
What has already being done?
Discount
Discounts of 30% over the invoice value are being applied for those who save 20% or more of water
Use of other systems
The Rio Grande and Guarapiranga systems are supplying more than 3 million people that were supplied by Cantareira system.
Public awareness campaigns
Public awareness campaigns showing the importance of saving water started to be transmitted in the media.
Sou
rce: h
ttp://sa
besp
.com
.br
(DC2) Uso Restrito na PwC - Confidencial
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2015 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
150313-105450-MC-OS
For further information please contact:
Carlos RossinCarlos.rossin@br.pwc.comhttp://www.pwc.com.br/pt/sustentabilidade/index.jhtml
Gustavo MeloGustavo.Melo@greif.comwww.greif.com
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