cdp deloitte-water-disclosure-2012-report-findings

CDP Water Disclosure 2012 Report Findings

CDP Global Water Forum

October 23, 2012

Collective action delivers strategic business value

Copyright © 2012 Deloitte Development LLC. All rights reserved. 1 2012 Water Disclosure Report Findings

Summary Results

Global 500 Findings

Geography-specific Findings

Sector Highlights

Concluding Remarks

Overview

Summary Results


Global 500 - Summary Results CDP Water Disclosure demonstrates increased water-related awareness

and activity among Global 500 companies

• Companies reporting on water-related issues has remained static (60%)

• More than half of respondents have experienced water-related detrimental

impacts in the past 5 years (53%)

• Respondents identify water as a substantial risk to their business (68%)

• More respondents identify water-related business opportunities (71%)

• 2012 saw minimal change in respondents with board-level oversight of

policies, strategies or plans (58%) and with concrete target or goal setting

(55%)

• More respondents are able to identify supply chain risks (71%) and more

require supplier reporting (39%)

• Collective action is an emerging and effective means to address water-

related challenges (74%) Compared to 2011

Global 500 Findings


Global 500 Findings Water risk is a prominent and rising issue among 2012 respondents

• 53% of respondents have

experienced water-related

detrimental impacts in the

past 5 years; up from 38% in 2011.

– Financial costs as high

as $US200 million.

• More respondents (68%) report exposure to water-

related risks, up from 59%

in 2011.

1


Global 500 Findings Water represents a strategic opportunity to improve financial and brand

performance

2

• 71% of respondents

reported a total of 319

water-related

opportunities.

• 78% of opportunities

are expected to

materialize now or

within the next 5

years.

– Some opportunities

have sales potential

of more than €800

million by 2020.


Global 500 Findings Water is still not receiving the boardroom attention it deserves 3

Water is not receiving the boardroom attention that the risks and

opportunities related to water imply it should be.

• Board-level oversight of

water policies, strategies or

plans is essentially

unchanged from 2011

(58%).

• Respondents setting water-

related concrete targets or

goals has also changed

little (55%).


Global 500 Findings Assessing and addressing exposure to water-related supply chain risk

is on the rise

4

• 71% of respondents

are now able to state

whether or not they are

exposed to supply

chain risks (up from

62% in 2011).

– 29% of respondents

still remain unaware.

• More respondents

(39%) require key

suppliers to report on

water use, risks, and

management.

– There is still room for

improvement.


Global 500 Findings Collective action as an approach to addressing risks and opportunities 5

• 74% of respondents report goals and

actions related to collective action

initiatives.

– Community engagement (56%)

– Supply chain and watershed

management (43%)

– Collective action (38%)

– Public policy (24%)

• Benefits: increased business continuity,

license to operate and brand value

• Opportunities: gain fresh ideas, increase

momentum for change and pool resources Collective Action Image Courtesy of Mike Auraz, Executive Strategy Director at Undercurrentz

Geography-specific Findings


Global 500 - Geography-specific Findings European companies, Germany in particular, once again lead in their

response to water-related issues

1

Sector Highlights


Global 500 - Sector Highlights Consumer Staples sector respondents experiencing detrimental

impacts in the past five years has doubled since 2011 and is

significantly higher than the Global 500 average.

1


Global 500 - Sector Highlights Energy sector respondents has the lowest response rate despite high

exposure to risk; few respondents report board-level oversight of their

water policies and even fewer set concrete targets or goals.

2

Concluding Remarks


Concluding remarks The strategic importance of water-related issues continues to grow

• Water stewardship strategy is a framework for addressing water-

related risks and identifying business opportunities

• Collective action is emerging as an effective means for companies to

address water-related challenges and capitalize on opportunities

• Clear best practices are emerging and being adopted within and

across sectors

• CDP has a role to play in establishing sustainable water management

practices by raising awareness and accelerating the development and

adoption of corporate water reporting standards

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Copyright © 2011 Deloitte Development LLC. All rights reserved.

Member of Deloitte Touche Tohmatsu Limited

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