Business contribution to managing climate and water risks: Tools and lessons learned

Paul Reig, World Resources Institute (WRI) Cate Lamb, CDP Water Bert Share, Anheuser Busch InBev Katalin Solymosi, Inter-American Development Bank (IDB)

Agenda

09:00 Welcome and overview presentation Paul Reig, WRI 09:15 Panel discussion Cate Lamb, CDP Water Katalin Solymosi, Inter-American Development Bank (IDB) Bert Share, Anheuser Busch InBev 10:00 Questions and discussions with the audience 10:40 Wrap up and summary: How do we move forward? 10:50 Adjourn

WRI, WATER & SDGs

Climate and Water Related Risks

Business Challenges to Practical Responses

1. Financing is scarce for long-term investments in sustainable water management and climate and water risk mitigation

2. Integrating water stewardship and sustainable development into standard business activities is a challenging and complex process, and foreign to most companies.

3. Meaningful business, investment and policy decisions are difficult to make because the disclosure of corporate water-related information is seriously inadequate.

Addressing challenges with new financing instruments: CLIMATE AND WATER FUNDS

Addressing challenges through capacity development: CORPORATE AND RIVER BASIN STEWARDSHIP

Source: WWF 2014

Addressing challenges with technology: ONLINE WATER RISK, ASSESSMENT, & DISCLOSURE TOOLS

WRI AQUEDUCT Global Flood Risk Analyzer

5 years of data > 1,000 corporations > 200 cities 80 countries 112 sub-industries

Barriers

1. Lack of incentives, experience, and regulatory frameworks for making investments in sustainable development, and climate and water risk mitigation.

2. Short-term thinking, following normal business cycles, and lack of sound water policy and local capacity at the watershed level.

3. Complexity of climate and water-related risk information makes it difficult to communicate.

Lessons learned

1. Risks need to be mitigated to prevent financial, social and business impacts. The business case for action is clear and compelling. Business now needs tools and frameworks to guide meaningful interventions

2. External pressures (buyer certifications, costs) as well as peer and investor pressure (through public disclosure and external corporate commitments) help drive internal goals and trigger investments and engagement in water stewardship and sustainable development.

Panel discussion

Cate Lamb, CDP Water Katalin Solymosi, Inter-American Development Bank (IDB) Bert Share, Anheuser Busch InBev

Layers of the cake - steps to using donor finance to bring in private capital

Private sector investment

IDB loans

Donor concessional finance

Donor grant funding to demonstrate

feasibility

Sustainable investment

policies

Catalyzing investment with public funds

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1. Work with governments to establish and identify investment environments with economically viable opportunities

2. Provide detailed engineering analysis to demonstrate financial viability and/or investment grants for pilot projects

3. Provide donor concessional finance to overcome cost and risk barriers

4. Provide long-term market rate finance

5. Actively market and deliver private sector investment

© Anheuser-Busch InBev. All rights reserved.

Promoting Water Stewardship by Using Company Tools

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Bert Share Global Senior Director Beer & Better World Anheuser-Busch InBev

2015 Annual UN-Water Annual International Zaragoza Conference 15 – 17 January 2015

© Anheuser-Busch InBev. All rights reserved. 17

Goal Development, Cascading and Tracking

Track Progress and Appraise

Company-wide tools in place to:

• Set goals

• Cascade goals

• Track and appraise goals

• Issue rewards based on goal achievement

© Anheuser-Busch InBev. All rights reserved. 18

Track Progress and Appraise

Multi-phase Water Risk Assessment Tools

• WRI Aqueduct Tool and 7 simple questions

• If risk, deep dive on physical, regulatory and

reputation that lead to Action Plans

• Action plan template

• Stakeholder mapping tool

• Quarterly water risk calls and annual in-person water risk workshop

©Anheuser-Busch InBev

Management Systems and Best Practice Sharing

Our Voyager Plant Optimization program is the Anheuser-Busch InBev way to drive efficiency at our breweries and verticalized facilities. VPO ensures we have uniform processes and measurable standards for brewery operations, quality, safety and the environment.

• Quarterly Zone Water Risk Calls

• Project Management Tracking Tool

• Annual Global Environmental Conference

• Quarterly Steering Committee Review

• Action Plan Sharing – One Document

• Barley Grower Day Award Program

• SmartBarley

Supply Excellence Program

© Anheuser-Busch InBev. All rights reserved. 20

Grower to Grower Benchmarking

Capturing a conversation between

our agronomists and barley growers

Field Level – Production Practices to KPIs

• Review of individual grower fields with barley

• Specific varieties, rotations and crop performance

• Capture inputs and management practices

Farm Level – Better World Indicators

• Assess concern regarding water and soil risks

• Ability to address and manage weather risk

• Economic contribution of producing barley for ABI

Panel discussion

1. Are longer payback periods, technology risks and high levels of uncertainty associated with investments in water-related climate resilience a barrier to the type of commercial financing that will be required for countries to meet the SDG’s for water? What actions can be taken, and what tools are available, for governments and companies to help overcome these barriers and incentivize investments to help meet water SDG’s?

2. Company culture is a significant asset when integrating water stewardship into regular business activities. What key lessons, and tools, can governments take from companies, like AB InBev, to drive a similar cultural shift across government staff and civil society in an effort to help meet the SDG’s for water?

3. Open access web-based platforms allow for much greater transparency and access to information worldwide. In what ways can greater corporate water disclosure and transparency more broadly, help governments meet SDG’s?

10:00 Questions and discussions with the audience 10:40 Wrap up and summary: How do we move forward? 10:50 Adjourn