WATER STEWARDSHIPEngaging business in delivering SDGs

Michael Spencer, Chair, Alliance for Water Stewardship (AWS)Water Footprint Network side event Zaragoza UN-Water Conference

14 January 2015

© AWS. All Proprietary Rights Reserved and Enforced

“The use of water that is socially equitable, environmentally sustainable and economically

beneficial, achieved through a stakeholder-inclusive process that involves site and catchment-based actions.” (AWS 2011)

Photo: K. Auty

Water Stewardship Definition

05/02/2023 3

VoluntaryCollaborativeBottom-upOutcomes focus

Photo: K. Auty

Private interest alone drives over-exploitation

“Each man is locked into a system that compels him to increase his herd without limit – in a world that is limited.” “Ruin is the destination toward which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons”

Herder’s Dilemma

Garret Hardin Tragedy of the Commons, 1968

Each herder adds more and more animals because he receives direct benefit but bears only a share of the costs of overgrazing.

+

E. Ostrom: Common Pool Resources (1990)

Lloyd, W.F. (1832)

Building a stewardship system 55

Standard-Setting

Verification

Traceability

Capacity BuildingOrganisations

Stakeholders

Standard-Setter

Accreditation Body

Certification Body

Traceability SystemBrand

Producer/Enterprise

Manufacturer Retailer Consumer

Capacity Building

Communications

Multi-stakeholder governance

Understand impacts and potential actions

IMPACTS INFLUENCES ACTIONS

Governance Engagement

Manage Impact on

Sites & Values

Manage Impact on

Water Quality

Manage Impact on

Flow RegimeWater Flow

Regime

Water Quality

Human Health

Catchment Governance

Ecosystems & Biodiversity

Economic Activity

Important Sites & Values

Social & Cultural Life

Photo: K. Auty

Standard Development Committee77

Goal: Address catchment impacts through site action

Scope of Standard- Water using site- Group of similar sites

Intent of Standard• Understand catchment• Tailored site action plan• Encourage collaboration• Transparency

Address impacts• Site/catchment

indicators

AWS Standard: Intended outcomes99

© Shirley Plowright

GOOD WATER QUALITYHEALTHY IMPORTANT WATER-RELATED AREASGOOD WATER GOVERNANCESUSTAINABLE WATER BALANCE

Water Standard Structure – 6 steps

Step-wise approach to engagement 1111

Information

Training

Self-assessment

Verification

Certification

Reward pull

Risk push

Promoters Convening Role

Water Stewardship promoters

Natural Resource Managers• Catchment Managers• State & Federal NRM Agencies

Retailers• Supply chain managers• Brand & reputation mangers

Supply chain leaders• Global multi-nationals (aggregators)• Trusted brands (domestic &

international)

Aid and Development Agencies• Better water management• Sustainable development & production

Opportunities:• Engage major water

users• Promote BMPs• Bottom-up solutions

• Sustainable supply chain

• Protect brand• Build market position

• As for retailers

• Sustainable development

• High impact solutions• Avoid perverse impacts

© AWS. All Proprietary Rights Reserved and Enforced

Implementers: major water users

Business risks:• Physical risks • Regulatory risks• Financial risks• Reputational risks

Business opportunity:• Enhanced license to

operate• Market access• Brand strength

Primary production• Agribusiness• Miners

Industrial• Processors• Manufacturers• Energy

Commercial• Retail• Office• Hospitality, recreation

Institutional• Education, Hospitals• Public facilities• Water, sewerage services

Case study: Poultry Industry Australia

02/05/2023

14

Context• Leading producer of largest source of

protein• Water significant input in both

production and processing• Significant business riskBenefits• Context for defining sustainable water

use• Framework for stakeholder

engagement• Built internal capacity to manage

water risks• Identified cost reduction opportunities• Helped communicate sustainability

ethos and credentials to customers• Recognised by major customer

McDonalds as global leader on water in their supply chain.

Case study: Agriculture in Peru 1515

CONTEXT- Asparagus production in

Peru’s dry coastal belt - Peru is the world’s largest

fresh asparagus exporter

CATCHMENT ISSUES- Balancing demand, export

earnings and catchment sustainability

BENEFITS- Framework for engaging water stakeholders- Improved capacity to understand & manage water

risk - Replication amongst other growers & crops (e.g.

avocado)- Staying ahead of buyer expectations/demands (e.g.

European retailers)

1616

Case study: Mining in South Africa

BENEFITS- Framework for engaging water stakeholders- Improved capacity to understand & manage water

risk - Replication amongst other growers & crops (e.g.

avocado)- Staying ahead of buyer expectations/demands

(e.g. European retailers)

CONTEXT- Mining site with sever

environmental degradation- Impacts Orange &Limpopo

Basins - Urbanisation - close to Jo’burg SITE CHALLENGES- Water quality: contaminated

run-off tailings dams - Stakeholder relations:

Moving from conflict to cooperation in a highly contested political setting

1Africa – Horticulture Supply Chain

02/05/2023

Case study: Cleaner production China1818

CONTEXT- Chemical production - Taicang Industrial Estate (Yangtze

River – lakes including Lake Taihu)CATCHMENT ISSUES- Water quality: cumulative industrial

impacts

EXPECTED BENEFITS- Heightened engagement with water challenges- Improved efficiencies in a new production facility - Reduced reputation risk through improved stakeholder relations- Contributions to natural infrastructure

SITE CHALLENGES- Water balance: Data availability- Stakeholder relations

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AWS Founding Partners 19

Further information2020

Adrian SymExecutive Director

Alliance for Water Stewardshipadrian@allianceforwaterstewardship.org

Michael SpencerChair

Alliance for Water Stewardshipmichael@waterstewardship.org.au

Thank you