2011 Water Futures Report

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    Water

    Futures

    2011

    addressing shared Water

    challenges through

    collective action

    WATER FUTURES

    PARTNERSHIP:

    WORKING

    TOGETHER

    FOR A SECURE

    WATER FUTURE

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    2

    Contents

    1.0Partnershipletter....................................................................... 3

    2.0WaterFuturesPartnershipoverview Background................................................................................... 4

    SABMillersapproachtowaterstewardship................................. 5

    IntroducingtheWaterFuturesapproach..................................... 5

    Waterfootprintingandbusinesswaterriskassessment.............. 6

    Expandingthepartnership........................................................... 7

    3.0Partnershipupdates Peru.............................................................................................. 8

    SouthAfrica................................................................................ 10

    Tanzania..................................................................................... 12

    Ukraine....................................................................................... 14

    4.0Collaborationpartners Colombia..................................................................................... 16

    Honduras..................................................................................... 18

    India............................................................................................ 20

    USA.............................................................................................. 22

    5.0Sharedlessonsandnextsteps Technicallessons........................................................................ 24

    Partnershiplessons..................................................................... 25

    NextstepsforWaterFutures...................................................... 25

    6.0InitiatorsoftheWaterFuturesPartnership.................... 26

    Aboutthisreport:

    Thisdocumenthasbeenco-authoredandjointlyreleasedbySABMillerplc,GIZand

    WWF-UK,butthisdoesnotimplythattheorganisationsapproveof,orsupport,the

    activitiesand/orviewsthattheothersmayhaveonotherissuesoutsidethescopeofthisreport.

    Thelatestwaterfootprintsofpartnercountrieswereproducedin2010,basedon

    datarelatingto2008/09.Allotherdatarelatestothe2010/11nancialyearunless

    otherwisestated.

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    Partnershipletter|3

    1.0 PartnershiP letter

    DearStakeholder,

    TheWaterFuturesPartnershipwasrstestablishedin2009tofacilitatelocalactionto

    addresssomeofthemostpressingsharedwaterrisksfacingSABMiller,surrounding

    communitiesandecosystems.Itsetouttoprovethebusinesscaseforprivatesector

    engagementinpromotingsustainablewatermanagement.

    Overthelasttwoyears,SABMiller,GIZandWWFhaveworkedtogetherinPeru,

    SouthAfrica,TanzaniaandUkraine,engaginglocalstakeholderstoassesswaterrisks

    sharedbySABMillerslocalbusinesses,andsurroundingcommunitiesandenvironment.

    Wearenowintheprocessofnalisinglocalactionplanstoworkwithavarietyof

    stakeholderstohelpimprovewatersecurity.

    Inthesefourcountries,thepartnershiphasofferedasinglevoicethroughwhicha

    business,NGOanddevelopmentagencycanengagewithpolicymakers,publicsector

    authorities,andotherNGOsandbusinessleaders.Thisvoicehashelpedcreatebuy-into

    thenotionofsharedwaterrisks,hasopenedadialogueonhowtotackletheserisksand

    madecleartheinterestsoftheprivatesectorinplayingaroletohelppromotesustainable

    watermanagement.Webelievethatonlybyunderstandingtheselocalissuesindetailand

    takingactioninthecommunitieswhichareatrisk,canweprotectwaterresourcesthat

    areneeded,brewbeer,andsustainlocalpeopleslivelihoods,ecosystemsandbiodiversity.

    TheWaterFuturesPartnershipisnowcollaboratingwithotherSABMillerpartnership

    projects,inColombia,Honduras,IndiaandUSA,intherecognitionofthesimilarities

    andpotentialforknowledgetransfer.Asarststepofthisprocess,inFebruary2011

    weheldourrstWaterFuturesForuminSouthAfrica,whichbroughttogetherproject

    partnersfromeightcountries,plusrepresentativesfromothercompanies,tosharetheir

    experiencesandlearningofworkingoneachproject.Importantly,thepartnershipis

    buildingtheexperiencetobeabletodemonstratewhichactionsabusinesscantaketo

    meaningfullypromotebetterwatermanagementboththroughconcreteprojectsand

    transparentadvocacy.Inthisway,thepartnershipoffersapotentialmediumthatwehopewillinformandinspirethedevelopmentofotherwaterstewardshippartnerships.This

    report,ourthirdupdateonprogress,providesoneofthemechanismsforsharingour

    learning.Wehopeyouwillnditusefulandwouldgreatlyappreciateyourfeedback,and

    anyexperiencesyouwouldliketoshare.

    Finally,ifthereisoneoverridinglessonwehavelearnt,itisthatsingleactorscannot

    aloneeffectivelymitigatethecomplexandoftendeeplyembeddedcausesofwaterrisks.

    Itisforthisreasonthatweareseekingtohelpthelocalpartnershipsexpand,tocreatea

    criticalmassforsustainedcollectiveactiontoimprovewatermanagementforthebenet

    ofall.Ifyouwouldliketodiscusswithushowyoumightgetinvolvedinthepartnership,

    eitheratalocaloragloballevel,pleasegetintouch(seethecontactinformationatthe

    backofthisreport).

    Overtheforthcomingyear,welookforwardtodeliveringfurtherbenetsinthecountries

    inwhichtheWaterFuturesPartnershipisworking,aswellaswelcominginnewpartners,

    introducingfurthercountriesandcontinuingtostrengthenouroverallapproach.

    Yoursfaithfully,

    AndyWales, EllenKallinowsky, DavidTickner,

    HeadofSustainable CoordinatorforAfrica, HeadofFreshwaterProgrammes,

    Development CentreforCooperation WWF-UK

    SABMiller withthePrivateSector

    GIZ

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    2.0

    BackgroundWithpopulationgrowthandeconomicdevelopment

    acceleratingdemand,waterisbecomingascarcerand

    scarcerresource.Astudypublishedin2010bythe

    2030WaterResourcesGroup1,inwhichbothSABMiller

    andWWFwereinvolved,concludedthatcompeting

    demandsforwaterresourcesmayleadtoanaverage

    gapof40%betweenglobaldemandandsupplyby2030.

    Waterisnotdistributedevenlyovertheglobe,withnine

    countriesBrazil,Russia,China,Canada,Indonesia,USA,

    India,ColumbiaandtheDemocraticRepublicofCongo

    possessing60%oftheworldsavailablefreshwatersupply2.Thismeansthatnotonlywilldemandoutstrip

    supply,butalsothatwaterwillnotbeavailablewhen

    andwherepeopleneedit.Furthermore,localvariations

    withincountriescanalsobehighlysignicantasclimate

    gradients,normalseasonalvariations,droughtsand

    oodscanallcontributetoextremelocalconditions.

    Thiswilllikelybeexacerbatedbytheimpactsofclimate

    changeinmanyplaces.

    Waterwithdrawalsarepredictedtoincreaseby50%in

    developingcountriesand18%indevelopedcountries

    by20253.TheFoodandAgricultureOrganisationof

    theUNpredictsthat,bythen,1.8billionpeoplewill

    belivingincountriesorregionswithabsolutewater

    scarcity,andtwo-thirdsoftheworldpopulationcould

    belivinginwater-stressedregions4.

    Theconsequencesofwaterscarcityarediverse.Not

    onlydoeswatersupportlife,bothofcommunitiesand

    ecosystems,italsoactsasthelifebloodofeconomies.

    Forexample,withoutanadequateandreliablesupply

    ofwater,growinghighqualitycropswithgoodyield

    isdifcult.Thishasimplicationsnotonlyforlocaland

    globalfoodsecurity,butalsolimitstheopportunities

    forgrowingcommercialcrops,localenterprisedevelopmentandputscorporatesupplychainsatrisk.

    Water Futures

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    WaterFuturesPartnershipoverview |5

    SABMillersapproachtowaterstewardshipFormanybusinesses,issuesofwateravailabilityand

    qualityareincreasinglyrelevantbothonanoperational

    andstrategiclevel.ThisisparticularlysoforSABMiller,aswaterisnotonlyavitalcomponentofbeerand

    softdrinks,butitisalsorequiredforthecultivation

    ofcropsneededfortheproductionprocess.Aswater

    scarcitybecomesmoreapparent,thensodotherisks

    thebusinesspotentiallyfacesnotleastcompetition

    forresources,highercosts,theeffectonwaterquality,

    andthepossibilitythatwatershortageswilllimit

    production.Theserisksareoftensharedwiththelocal

    communityinwhichSABMillersbusinessesoperate,

    generatingasetofsecondaryrisksaswaterscarcity

    increases,tensionsconcerningtheallocationofwater

    mayarise,creatingreputationalrisksforindustrial

    waterusers,eveniftheirproportionalwateruseofthe

    overallresourceissmall.

    Inmanagingtheserisks,SABMillerhassetstretching

    targetstoreduceitsownwaterconsumptionby25%

    perhectolitreofbeerbrewedby2015andhasadopted

    aclearwaterstrategybasedonthe5Rs(pRotect,

    Reduce,Reuse,RecycleandRedistribute).Asaresult,

    thebusinesshasreduceditswaterconsumptionby8%

    perhectolitreofbeersince2008,whenthetargetwas

    rstset,andhasestablishedaconsistentapproach

    acrossallitsoperationstomakesurethatwater-related

    risksareconsideredthroughoutthevaluechain.Indoingthis,SABMillerhasinvestedsignicantresources

    andmanagementtimeatbothalocalandgrouplevel

    tounderstandthechallengesofwaterscarcity,andhow

    theserelatetothebusiness.

    SABMillerisalsoafoundingsignatoryoftheUNCEO

    WaterMandate,aninitiativetohelpcompaniesdevelop,

    implementanddisclosesustainablewaterpractices.

    Buildingonthishigh-levelcommitment,SABMillerhas

    takenamuchmoregranularapproach,recognising

    thatwaterissuescanonlyreallybeaddressedwithin

    thecontextofalocalareaandwithdetailedknowledge

    andinsightaboutthecontributingfactorsandrisksfoundthere.

    RiskstoSABMillerbreweriesandbottlingplants

    havebeenevaluatedusingacombinationoftools

    includingwatershedriskassessments,business

    waterriskassessments,theWorldBusinessCouncil

    forSustainableDevelopmentwaterrisktoolandthe

    businessownwaterfootprintinganalyses.Thisenables

    eachlocalbusinesstoassessitsownspecicrisks

    anddeveloptailoredstrategiesandactionplansto

    addressthem.ThedevelopmentoftheWaterFutures

    Partnershiphasbeenanimportantfactorinfacilitating

    thisprocess,particularlyasmanyofthewater-risks

    facedbySABMillercannotbemitigatedthrough

    solitaryactionaloneandneedtobetackledthrough

    collectiveaction.

    IntroducingtheWaterFuturesapproachInNovember2009,theWaterFuturesPartnershipwas

    initiatedbySABMiller,WWFandGIZwithanaimto

    provethebusinesscaseforprivatesectorengagementinpromotingthesustainablemanagementofwater

    resources.Thisbuiltonworkthathadpreviouslybeen

    undertakenbySABMillerandWWFinColombia,Czech

    Republic,ElSalvador,HondurasandSouthAfrica.

    Eachpartnerhasasharedinterestinaddressingwater-

    relatedrisks.Thesuccessofourpartnershipstems

    fromthefactthateachpartnerbringsdifferentskills

    andcompetenciestopromotewatersecurity,despite

    differingunderlyingmotivations.

    Waterisavitalcomponentofbeerproductionand

    soprotectingwaterresourcesintheareasinwhichSABMilleroperatesalsoprotectsthecompanysability

    toproducebeerandgrowitsbusiness.Inreturn,the

    companycanleverageitsglobalscaleandresources,

    provideaccesstoawiderangeofexpertisewithinthe

    businessandutilisetheexistingrelationshipsithas

    withpolicymakersandotherstakeholders.

    WWFisregardedasoneoftheforemostNGOs

    workinginthisarea.Itiscommittedtoprotecting

    andmanagingfreshwaterhabitatsforthebenetof

    peopleandnature.Withaglobalpresenceandlocal

    operationsthroughouttheworld,WWFoffersexpertise

    inwaterresourcemanagement,aquaticecosystemprotectionandprivatesectorwaterstewardship,as

    wellasthelocalinsightandrelationshipsthatthe

    partnershipneedstotackletheoftenuniquechallenges

    itfaces.AspartoftheWaterFuturesPartnership,

    WWFcanharnesstheglobalscaleandresourcesofthe

    collaborationtohelpmeetitsoverarchingconservation

    aims,aswellasusingthepartnershipasaplatformto

    informthewaterdebatearoundprivatesectorwater

    stewardshipandinuencepublicpolicy.

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    2.0

    TheGermanInternationalCooperationAgency(GIZ)

    recognisesthevitalrolethatwaterplaysinthesocialandeconomicdevelopmentoflocalcommunities,

    particularlyinthedevelopingworld.Itslong-term

    relationshipswithgovernmentsinthecountriesof

    theWaterFuturesPartnershipmeanthatitiswell

    positionedtobringthepublic,privateandcivilsociety

    actorstothetableforopenandproductivedialogue.

    Eachpartnerhasthebeliefthattheresponsibilityfor

    addressingwaterissuesmustbesharedbetweenthe

    waterusers(peopleandbusinesses)andthewater

    managers(nearlyalwaysthepublicsector).Inaddition

    torobustscienticanalysis,effectivewaterrisk

    mitigationprogrammesmustbebasedonagoodgraspoflocalrealities,andthebuy-inofthedifferent

    levelsofthepublicsector.

    Sinceitsinception,thePartnershiphasfocusedon

    waterresourcesinfourcountries:Peru,SouthAfrica,

    TanzaniaandUkraine.Eachofthesecountries

    hasbeenidentiedasbeingatpotentialriskfrom

    issuesrelatingtowateravailability,waterqualityor

    wastewaterdischarge,andeachisfacingdifferent

    challenges,intermsofsocio-economicdevelopment,

    governmentaleffectiveness,climaticconditionsand

    environmentaldegradation.

    Ineachcountryalocalpartnershiphasbeenestablished

    betweentheSABMillersubsidiary,GIZandWWF.The

    partnershipprocessisthesameineachcountry.Itbegan

    withwaterfootprintstudiesandtheidenticationofan

    arearelevanttothelocalSABMillerbusinesstofocus

    ourefforts.Thisledtoadetailedassessmentofthewater

    issuesspecictothatareaorwatershed.Theprocessof

    conductingthesestudieswasabasisonwhichtoengage

    andconsultlocalstakeholders,includinggovernment

    agencies,othercompaniesorNGOs.Followingthis,a

    businesswaterriskassessmenthasbeenundertaken

    toevaluatethebusinesscaseforactionandtheriskmitigationoptions.Thishasformedthebasisonwhich

    tofacilitatecollaborativeriskmitigationprojects

    betweenstakeholders.Acriticalpartthroughoutthe

    partnershiphasbeentosharethendingsandlessons

    learnedwithlocalstakeholders,whileusingtheoverall

    lessonstoinuencewaterstewardshipdebatesand

    initiativesatthegloballevel.

    TheWaterFuturesPartnershipapproach

    WaterfootprintingandbusinesswaterriskassessmentThisprocessstartswithdevelopingawaterfootprint

    ineachcountry.Awaterfootprintindicateshowmuch

    waterisconsumedtoproduceSABMillersproducts

    throughoutitsvaluechain,fromcropcultivationto

    wastedisposal.Italsobeginstoidentifythewater

    dependencies,vulnerabilitiesandrisksforSABMillers

    business,supplychain,surroundingcommunities

    andtheenvironment.Thisprovidesthepartnership

    withanearlyindicationoftheissuesthatneedtobeaddressed.In2008,wepublishedourrstreportwhich

    explainedthemethodologyandhowithadbeentrialled

    inSouthAfricaandCzechRepublic.In2009/10,further

    waterfootprintswereundertakeninPeru,Tanzania

    andUkraine,andaseriesofworkshopswereheld.The

    resultsofthesewaterfootprintsandstakeholderrisk

    workshopswerepublishedinoursecondpartnership

    updatein2010.

    Overthepastyear,wehavetakentheassessmentof

    waterrisktothenextlevelinourfourpartnership

    countriesbycarryingoutdetailedWatershedRiskand

    SustainabilityAssessments(WRSA).Thesesetout:

    a)thecurrentstateofthewatershed,groundwater,

    infrastructure,watermanagementinstitutions,

    waterpolicy,supplyanddemandetc;b)therisks

    thesegenerateforthebusinessandsurrounding

    communitiesandecosystems;andc)howclimate

    andsocialchangemayaffecttheserisksoverthe

    next20years.AmoredetailedBusinessWaterRisk

    Assessment(BWRA)wasthenconducted,tryingto

    establishthecostsoftheriskstoSABMillersbusiness

    (consideringthelikelihoodoftherisksandthecost

    oftheconsequences)andexamining,atahighlevel,

    thecost-benetofriskmitigationoptions.TheWaterFuturesPartnershipisverygratefulforthehelpofthe

    consultingrm,Deloitte,indevelopingandcarrying

    outtheBWRAsinUkraineandTanzania.

    Phase 2

    Mitigate shared waterrisk through multi-

    stakeholder partnerships

    Phase 3

    Upscale partnerships andspread lessons learned to

    influence wider change

    Phase 1

    Water Footprint study.Assess shared water risk

    and develop a plan of action

    at country and local level

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    WaterFuturesPartnershipoverview|7

    Assessingtherisksfromanancialperspective

    providestherationaleandevidencebasefor

    SABMillersbusinessestosupportinterventionsin

    watermanagementbeyondtheirbreweriesorfarms.

    Waterrisksmightinclude,forexample,regionalwater

    shortagesresultinginaninterruptiontothebrewery

    watersupply,orapollutedwatersourcerequiringmore

    costlywatertreatment.TheWRSAsandBWRAsform

    therststageofthedevelopmentofabusinesscaseto

    addresswaterrisks.

    WhiletheBWRAprioritiseswaterrisksmostrelevant

    forthebusiness,manyofthesearesharedby

    surroundingcommunitiesand/oraffectedecosystems,

    openinguppotentialopportunitiesforcollectiveaction

    forsharedbenet.Furthermore,thefundamental

    causesofmanyofthebusiness-specicrisksarealso

    thedriversofotherriskssharedbycommunities:the

    capacity/performanceofthepublicsectortomanagewaterresources,waterandwastewaterservicesand

    infrastructure;thelackofregulationoflandandwater

    useandpollutiondischarge;thelackofknowledgeof

    howhumanactionsinuencesurfaceandgroundwater

    systemsandwaterquality;climatechange;andthe

    behaviourofotherwaterandlandusers.

    ThenalstageoftheBWRAistoidentifymitigation

    actionswhichaddresstheprioritysharedwaterrisks

    forthebusiness,andwhichalsocontributetothe

    objectivesoftheotherpartnersandstakeholders.

    Thepartnershipshope,thatbyhelpingtoaddress

    thecausesofsharedwaterrisksfacingthebusiness,communitiesandecosystemswillalsobenet.

    TheWaterFuturesPartnershipisapathnderforthis

    kindofapproach,asthereareveryfewotherexamples

    ofhowtoassessbusinessrisksrelatedtowaterwhen

    therisksaresharedandthepartnershiphaslittle

    directcontrolovermanyoftheunderlyingcauses.As

    such,themethodologyisbeingdevelopedasweapply

    itinturntoeachlocalpartnership.TheCoca-Cola

    Company(forwhomSABMillerisalargebottler)has

    alsobeengenerousinsharingitsexperiencesand

    advancedtechniquesofassessingwaterriskswith

    thepartnership.

    ExpandingthepartnershipBasedontheseanalysesweareintheprocessof

    prioritisingactionsanddevelopingcollaborativeplans

    inPeru,SouthAfrica,TanzaniaandUkraine.The

    assessmentsalsomakeitveryclearthatthecausesof

    theproblemsaresocomplexandembedded,thatthepartnershipcannotactinisolation.Ineachcountry,

    formingacriticalmassofpartieswithsharedinterests

    andthecommongoalofcollectiveactionhasbecome

    apriority.TheWaterFuturesPartnershipisseeking

    toexpandthelocalpartnershipstoincludeother

    stakeholderssothattheycanachievemore,havegreater

    inuence,andbecomesustainableentitiesintheirown

    right,withoutarelianceonglobal-levelsupport.

    Importantly,theglobalpartnershiphasalsobegunthe

    processofexpansion,byinvolvingotherinitiatives

    underwayatSABMillerundertheWaterFutures

    umbrella.ThisincludesworkinColombia,Honduras,

    IndiaandtheUSA.Inthemediumtolongerterm,

    theaimistoinvolvemorepartnerscompanies,

    NGOs,governmentsandotherorganisationsandto

    encouragethemtocollaboratewitheachotherto

    spreadnewideasandapproaches,whilesharing

    lessonsandchallenges.Thelong-termgoals

    inwaterstressedregions,areforSABMiller

    subsidiariesandothercollaborating

    companies/organisationstobe

    collectivelyengagedinspreadinggood

    practiceonwateruse,supporting

    communityaccesstowater,improvingwaterservicesprovided

    byecosystems,andsupporting

    goodwatergovernanceandthe

    publicsectorintheirroleaswater

    managers.This,inturn,willleadto

    theprivatesectorhavingincreased

    condenceintheabilitytocontinue

    tooperatewithoutwaterbecoming

    astrategicrisktotheirinvestments.

    This,initself,willhavesubstantial

    benetsforthecommunitiesand

    governmentswhichrelyonbusinessinvestmentforemployment,GDPgrowth

    andtaxrevenues.

    WaterFutures

    Partnership

    Progress so far

    Year 1 (20092010)Water footprinting for

    local SABMiller subsidiaries

    and building local partnerships.

    Year 2 (20102011)Assessing water risks at the

    watershed level, engaging local

    stakeholders, prioritising risks andbuilding the business case for action.

    Year 3 (20112012)Partnership expansion

    and collective action

    to mitigate risks.

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    Factbox

    3.0 PartnershiP uPdates

    Peru BackgroundPerurankseighthintheworldforthevolumeof

    renewablewaterresourcesavailable5.However,within

    thecountrythereareverysignicantdifferences

    rangingfromabundant(Atlanticwatershed)to

    extremescarcity(PacicandTiticacawatersheds)6.

    Particularlynoteworthyisthefactthatwhilethe

    Atlanticwatershedaccountsfor98%oftheavailable

    waterresources,onlyathirdofthecountryspopulation

    livesinthatarea,comparedtothe62%whoinhabitthe

    PacicBasin7.ThecoastalPacicregionreliesheavily

    onirrigationandtheagriculturalsectoraccountsfor

    approximately80%ofannualwaterconsumption8.

    SABMillerswaterfootprint

    ThenetwaterfootprintofBackusSABMillers

    Peruviansubsidiaryanditsvaluechainis62,600

    millionlitres,ofwhichover90%isattributableto

    cropcultivation.Brewingandbottlingaccountforthenextgreatestcomponentofthefootprintat9%.

    Priorityareasforaction

    InFebruary2010,theWaterFuturesPartnershelda

    workshopinLimawhichconcludedthatthegreatestrisk

    toBackusisrelatedtowaterscarcitywithinthebasins

    inwhichitsbreweriesarelocated,particularlyinLima,

    butalsoinMotupeandArequipaallofthemlocatedon

    thecoast.Basedontheworkshopresults,WaterFutures

    partnersdecidedtofocusononebasinperyear,granting

    prioritytothosebasinsaffectedbywaterscarcity.

    Toaddresstheissueswithineachbasin,thepartnersdevelopedthefollowingstrategy,takinginto

    considerationthenationalcontext:

    Phase1:Consolidationofpreviousstudieswiththe

    aimofhavingagreaterknowledgeofthestateof

    thewaterresource.

    Phase2:Analysisoftheproblemsrelatedto

    thesourceandidenticationofmeasurestobe

    undertaken.

    Phase3:Relationshipwithkeyactors.

    Phase4:Investmentanddevelopmentofprojects

    relatedtotheimprovementoftheavailabilityand/

    orqualityofthewatersource.

    Operations:

    5Breweries 3BottlingplantsKeybeerbrands:

    Cristal,CusqueaAveragebrewerywaterefciency

    (litreswaterperlitrebeer):

    3.9Netwaterfootprint(millionlitres):

    62,600Netwaterfootprint(litreswaterperlitreofproduct):

    Beer Carbonated Bottledwater softdrinks

    61 122 2Netfootprintbreakdown(%):

    Cultivation Processing:

    andimports:

    90%

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    Peru|9

    Itisessentialtobuildstrongstakeholderrelationships,especiallywithgovernment.Inthelongterm,trustcanonlybebuiltondeliveringmutualbenetsthroughactionthisiswhatwearebasingourapproachon.

    MichaelRosenhauer,ProgrammeDirector,Water

    andSanitationProgrammePROAGUA,GIZPeru

    WatershedandstakeholdermappinginPeruThecompanyswatermanagementplan,developedin

    conjunctionwithandinvolvingkeystakeholdersinits

    implementation,aimstooptimisewaterconsumptionthroughoutthevaluechainandincreasewaterresource

    availability,withoutcompromisingthecurrentandfuture

    requirementsofcommunitieslinkedtoBackusplants.

    Overthenextveyears,thePeruvianWaterFutures

    partnershipwillundertakeaseriesofstudies,with

    prioritygiventothoseinthemostwater-stressed

    areas,examiningthegroundandsurfacewater

    resourcesavailableinthebasinsthatsupplyeachof

    thebreweries.Therstofthestudies,coveringthe

    Rmacriverbasin,startedinJanuary2011.Aspartof

    theresearch,theintentionistoestablishclarityabout

    theaquiferstate,andtheenvironmentalissuesrelatedtotherechargezonesandexploitationconditionsfrom

    consumersintheareainuencedbytheAteplant.

    ThePeruvianpartnersarealsovigorouslypursuinga

    second,complementary,strandoftheWaterFutures

    strategy:namely,engagingtheinterestandsupportof

    otherstakeholders.Thepartnershiphascontacteda

    widerangeofstakeholderstoshareinformationabout

    WaterFuturesandtoascertainwhethertheywould

    liketoplayanactiveroleinitsworkinthefuture.

    Fromthesediscussions,astakeholdermaphasbeen

    developedthatshowshowreceptiveeachorganisation

    istothepossibilityofinvolvement,theimportanceof

    watertoitsactivities,itslevelofconsumption,and

    whereitobtainswater.Thiswillthenbeusedtoguide

    futureengagementactivity.Inthisway,WaterFutures

    aimstodemonstratethebenetsthatwillresultwhen

    differentsocialgroupsandlocalauthoritiesparticipate

    ininitiativesthathaveclearobjectives.

    Basedonthestudyresults,thepartnerscreateda

    technicalactionplatformwiththeaimofpromoting

    aquifersustainability.Theplatformhasthefollowing

    threefocusareas.

    1.ImprovementofAquiferRechargethishasthe

    aimofincreasingwaterrechargetotheaquiferby

    meansofthreemodules.Therstdealswiththe

    improvementofexistingirrigationchannelslocated

    inkeyareasonbothbanksoftheRmacriver.The

    secondrelatestoconstructionofrechargewater-

    wallsontheriverbed,whichwillpromoteinduced

    rechargetowardstheaquifer.Thethirdmodule

    aimstoprotecttheriverbanksandriverbedsof

    theRmacriver.

    2.ReductionofGroundWaterExploitationthis

    focusesonthepotentialre-useoftreatedwaterforirrigatingpublicgreenareas,therebyincreasing

    theamountofwateravailablefordrinking.

    3.CreationandDevelopmentoftheAquifer

    MonitoringandEvaluationSystemthisis

    intendedtocreateahydraulicobservatoryforthe

    Rmacriver,whichwillpromoterelevant,reliable

    andup-to-datedataexchangerelatingtothe

    aquifer.Itwillalsopromoteinvestmentprojects

    andwillprovidevaluableinputtotheformulation

    ofpublicpolicy.

    Afurtherexampleofthebenetsofapartnership

    approachistheestablishmentofAquafondo,which

    willfundconservationprojectsintheLimabasins.

    Thefundwillinvestin,amongstotherthings,

    improvementstoecologicalinfrastructureand

    rehabilitation;conservationandwaterprotection

    measures;ruraldevelopmentinitiatives;andeducation

    andcommunicationprojects.Contributorstothefund,

    whichhasaninitialcapitalofUS$900,000,include

    TheNatureConservancy,FONDAM,GrupoGEAandthePeruvianSocietyofEnvironmentalLaw,aswell

    asBackus.

    NextstepsTheWaterFuturepartnerswillcontinuetopromote

    theRmacRiverAquiferSustainabilityProgramwith

    relevantstakeholdersandevaluatetheirparticipation

    level.Thepartnerswillidentifythemostappropriate

    meansforimplementingprojects,whetherthrough

    Aquafondooralternativemechanisms.Towardstheend

    of2011,thepartnershopetohaveidentiedatleast

    oneprojectinalliancewithotherstakeholders.

    FurtherstudiesofthebasinsoftheMotupeandChili

    rivers,whichareinareasofhighwaterscarcity,will

    beundertakenoverthenexttwoyears.Thefocuswill

    thenswitchtothebasinsaroundtheCuscoandSan

    Juanbreweriesin201516.Inadditiontothiswork,

    theWaterFuturespartnerswillcontinuetoengage

    withstakeholderstoraiseawarenessofthewaterrisks

    and,moreimportantly,securetheiractivesupportin

    managingthem.

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    10

    Factbox

    3.0 PartnershiP uPdates

    BackgroundTherearesignicantregionalvariationsinwater

    scarcitywithinSouthAfricaanditisestimatedthat,

    by2025,somepartsofthecountrywillfacemajor

    challengeswhereasotherswillhaveplentifulsupplies

    ofwater9.Thisissueisexacerbatedbyincreasing

    competitionforwaterresourcesfrombothagricultural

    andindustrialusers.Toaddressthis,theSouthAfrican

    governmenthasdevelopednationwidestrategicplans

    forthemanagementofwaterresources.

    SABMillerswaterfootprint

    ThenetwaterfootprintforSABLtdSABMillers

    SouthAfricansubsidiaryanditsvaluechainis

    511,100millionlitres.Themostsignicantpartof

    thisrelatestowaterusedtocultivatecrops,which

    accountsforover95%ofthetotalfootprint.Thenext

    mostsignicantelementrelatestowaterusedfor

    brewingandsoftdrinkproduction,accountingfortheremaining5%.

    Priorityareasforaction

    Thendingsofthewaterfootprintassessment

    identiedanumberofpotentialwaterrisksforSAB

    Ltd,ofwhichtwowereagreedinFebruary2010as

    priorityareastobeaddressed:

    UnderstandingthevulnerabilitiesinSABLtds

    agriculturalsupplychain,particularlythe

    availabilityofwatertohopfarmslocatedinthe

    GouritzwatershedintheWesternCapeanarea

    wherewateravailabilityisprecarious.ThesefarmssupplySABLtdshopprocessingplantatGeorge.

    IdentifyingactionstoprotectSABLtdsbreweryat

    Polokwaneagainsttherisksrelatingtopotential

    waterscarcityandwaterqualityarisingfromits

    locationinthenorthofthecountry,whichhasbeen

    identiedasbeingwaterstressed.

    Operations:

    7Breweries 6BottlingplantsKeybeerbrands:

    CastleLager,HansaPilsenerAveragebrewerywaterefciency

    (litreswaterperlitrebeer):

    4.0Netwaterfootprint(millionlitres):

    511,100Netwaterfootprint(litreswaterperlitreofproduct):

    Beer Carbonated Bottledwater softdrinks

    155 70 2Netfootprintbreakdown(%):

    Cultivation Processing:

    andimports:

    95%

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    SouthAfrica|11

    HopsfarmriskassessmentHopgrowingisawaterintensiveprocessrequiring,

    onaverage,around10,000m3ofwaterperhectare

    pergrowingseasonusingdripirrigation.Thereare

    approximately13commercialhopsgrowerscultivating

    483hectaresofhopsintheGouritzwatershed,ofwhich

    asignicantproportionispurchasedbySABLtd.To

    growthesehopsrequiresabout5millionm3ofwatera

    year,butthereisanestimateddifferencebetweenwater

    demandintheareaandthewaterresourcesavailableof

    64millionm3,whichispredictedtopotentiallydouble

    inthefuture.

    ThispresentsasignicantrisktoSABLtdsvalue

    chainandsupplyofrawmaterials.Asaresult,the

    WaterFuturespartnersagreedtoundertakeamore

    detailedevaluationofthefactorsatplayandthe

    partnershipspotentialroleinaddressingthem,

    workingwiththeSouthAfricanDepartmentfor

    ScienceandTechnology(DST)throughtheCouncil

    forScienticandIndustrialResearch.

    TheSouthAfricanWaterFuturespartnershipconducted

    abusinessriskassessmentwhichidentiedthree

    ultimatedriversofrisktoSABhopfarms:

    Climatechange:Theanalysisindicatedthat,

    between1960and2050,theaveragetemperatures

    wouldriseby0.70.8Coverthehopgrowing

    season,resultinginincreasedwaterlossfrom

    plantandsoilevaporation.Tooffsettheselosses,

    farmerswouldneedtoapplyanextra145,000m3

    fromgroundwatersources.Overthesametime,

    itispredictedthatrainfallwilldecline(byupto

    10%perannum).Theprojectedcostofaccessing

    sufcientquantitiesofgroundwatertoaddress

    theseissuesisoverUS$200,000peryear.

    Lossofwater:Thespreadofwater-intensive

    invasiveplantswithinthewatershedwillreduce

    wateravailabilitybecausetheyconsumemore

    waterthannativespecies.Theresearchestimated

    thatifnon-nativetrees,suchashakea,pineand

    blackwattle,continuedtoexpanduncheckedtheywouldreducesurfacewatertothemajorhopfarms

    by780,000m3perannum.Toreplacethislost

    waterwouldcostoverUS$700,000.

    Competitionforwater:Demandfromgrowthof

    theurbandevelopmentinthenearbyOudtshoorn

    municipalareaisexpectedtoincreasecompetition

    forwater,withanyshortfallneedingtobesourced

    eitherfromgroundwaterresourcesorre-allocated

    fromagriculturalirrigation,suchasthatusedfor

    hopgrowing.Thisdemandmaybeoffsetbymeans

    ofaccessingadeepwateraquifer,butitremains

    uncleartowhatextenttheaquiferishydrologically

    connectedtothegroundwatersourcesthatare

    presentlybeingusedbythefarmers.

    UnderstandingtherisksatPolokwanebreweryLastyearsreporthighlightedtheproblemsSABLtd

    wasfacingarounditsPolokwanebreweryrelatingto

    waterqualityandsupply,andthetreatmentofefuentbythemunicipality.Asaresult,theWaterFutures

    Partnershipundertookamoredetailedreviewofthe

    specicwaterrisksitfaced.

    Theanalysisestablishedthatthemunicipalefuent

    plantis,already,operatingbeyonditsplannedcapacity.

    Thereisalsoalackofemployeeswiththerequisite

    skills,whichhascontributedtoamaintenancebacklog.

    Boththesefactorsincreasetheriskofpotential

    pollutionifinfrastructurefails.Giventhatthe

    populationispredictedtoincreasebyaround6%

    perannum,signicantinvestment(estimatedby

    themunicipalauthoritiesataboutUS$23million)inefuentinfrastructureandtreatmentisrequired

    topreventpollutionworseningandpossible

    contaminationoftheaquifersupplytoPolokwane.

    NextstepsAsaresultofthehopsfarmriskassessment,two

    strategicresponseshavebeenformulated:

    Todevelopalocalco-ordinatingbodytomanage

    acomprehensivecatchmentrehabilitationand

    stewardshipprogrammeandsafeguardexisting

    waterresources,andmaintaintheintegrityof

    thenativeecosystem.Onceinplace,suchaco-

    ordinatingstructurecouldoperateovera1015

    yearperiodandbefundedfromdifferentsources

    includingsignicantcontributionsfromSABLtd

    andtheWaterFuturesPartnership.

    ToestablishalocalWaterUserAssociation(WUA)

    toproviderobustandcredibledataaboutwater

    resourcesintheareaandcreateamonitoring

    programmethatmeasuresgroundwaterlevels

    onhopfarms.Thiswilldrawuponspecialist

    supportfromtheWaterFuturesPartnership,aswelltheDepartmentofWaterAffairs,catchment

    managementagencies,andlocalmunicipalities.

    ToaddresstherisksatPolokwanebrewery,theWater

    FuturesPartnershipisworkingcloselywiththelocal

    authoritiesandwilljointlycommissionastudyby

    anindependentengineeringconsultanttoassessthe

    extentoftheseproblemsandprepareaplansetting

    outhowthevariousissuesmightbeaddressed.The

    partnershipwillalsoapproachother,privatesector,

    organisationstocontributefundingtothesesolutions.

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    Factbox

    12

    3.0 PartnershiP uPdates

    Operations:

    4BreweriesKeybeerbrands:

    Safari,KilimanjaroAveragebrewerywaterefciency

    (litreswaterperlitrebeer):

    6.6Netwaterfootprint(millionlitres):

    52,180Netwaterfootprint(litreswaterperlitreofproduct):

    Beer

    180Netfootprintbreakdown(%):

    Cultivation Processing:

    andimports:

    92%

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    Tanzania|13

    WorkingwithstakeholdersforcollaborativeactioninDaresSalaamFollowinganinitialworkshopinMay2010,atwhich

    theinsightsfromthewaterfootprintingexercise

    andtheconceptofsharedwaterriskwerediscussed

    withstakeholders,theTanzanianWaterFutures

    partnershipundertookadetailedWatershedRiskand

    SustainabilityAssessmentcoveringbothDaresSalaam

    andtheWami-Ruvuriverbasin,whichsuppliesDares

    Salaamwithwater.Thestudyconcludedthatthewater

    risksidentiedprimarily,theshortfallbetweenthe

    demandsforwatercurrentlyandinfuture,andthe

    availablewaterresourceswerelikelytohavevery

    seriouseffectsnotonlyonTBLsoperationsbut,more

    broadly,onthecountrysprosperity,peopleshealth,

    andaquaticecosystems.

    Specically,thevolumeofsurfaceandgroundwater

    abstractedwillincreasetomeettheneedsofagrowing

    population.Atthesametime,groundwaterquality

    especiallyintheareaaroundDaresSalaamislikely

    todeteriorateasaresultofsaltwateranduntreated

    seweragecontaminatingfreshwaterresources.Through

    scenarioplanning,thepartnershiphasdeterminedthat

    theoveralldecitinTanzaniawillincreaseoverthe

    nextthreetoeightyears.

    Inresponse,asecondworkshopheldinNovember

    2010reviewedthesesharedwaterrisksandtranslatedthemintospecicbusinessrisksforTBLusingthe

    BusinessWaterRiskAssessment(BWRA)process,with

    thehelpofconsultingrmDeloitte.Thisenabledthe

    partnershiptoidentifyaseriesofactionsthatarebeing

    implementedduring2011.Actionsunderwayinclude:

    Workingwithfarmerstoimprovetheiruseofwater

    bymeansofaneducationalcampaign,incentive-

    basedschemestoreducetheirimpactsonwater

    resources,andtheintroductionofmoreefcient

    irrigationtechniquesandtechnologies.Todate,

    eldvisitshavebeenundertakenandtheWater

    FuturesPartnershipisintheprocessofdeveloping

    apilotprogrammeworkingwithfarmers.

    WorkingwiththeWami-RuvuBasinOfceand

    JapaneseInternationalCooperationAgency(JICA)

    tomonitorgroundwaterqualityandtheextent

    ofchangestogroundwaterlevelsinthecity.

    Inaddition,thiscollaborationislookingtoll

    backabandonedopenwellsandboreholeswhich

    actaschannelsforfurthercontamination,and

    supportingtheWami-RuvuBasinOfcetofacilitate

    theimplementationofIntegratedWaterResources

    Managementintheriverbasin.

    WorkingwithDaresSalaamMunicipality

    topreventwaterleakagefromtheexisting

    infrastructurebydevelopingamechanismthat

    wouldincentiviseandspeeduptherateofleakage

    detectionandreductionintheDaresSalaam

    WaterandSewerageAuthoritynetwork.Partof

    thisworkwillbetoencourageothercommercial

    organisationstosupportacollaborativeinitiative

    forintegratedwaterleakageprevention.

    Undertakingaprogrammeoftargeted

    communicationwithseniorgovernmentofcials

    toraisetheproleofwaterresourcemanagement

    issuesatanationallevel.BackedbytheWater

    FuturesPartnership,TBLarealsoseekingto

    becomeamemberoftheBasinWaterBoardor

    NationalWaterBoardandtherebycontributeto

    theirstrategicandoperationaldecision-making.

    Establishingawaterusergroupthatwillprovide

    auniedvoicewhenengagingwithwaterservice

    providersandwithseniorgureswithinthe

    government.Throughthisgroupthepartnership

    willworkwithotherbusinessestohelpthem

    understandhowtoreducetheirdemandforwater

    anddischargeofpollutants.Atthesametime,the

    groupwillbeabletopoolresourcesinorderto

    undertakemoresubstantialprojectswithinthe

    catchment,andsponsorthebettercollectionand

    monitoringofdata.

    NextstepsTheWaterFuturesPartnershiphassetacleardirection

    intermsofinitiativesunderwayandgoodprogress

    isbeingmadeagainstthem.Thepartnershiphasalso

    successfullymanagedtoengageeffectivelywithlocal

    stakeholders,aswellasdrawonthedifferentskills

    andcapabilitiesofthepartnershipinimplementing

    thisactionplan.Onthisbasis,thepartnershiphas

    establishedfuturetargets,inadditiontothoseactions

    setoutpreviously.Theyinclude:

    Toundertakeagroundwaterprotectionprojectthat

    willactasanexampleofgoodpracticeandimprove

    monitoringofthequantityandqualityofsurface

    watertocontributetoamorerobustdataset.

    Toestablishaprogrammeandsupporting

    infrastructuretominimiseurbangroundwater

    pollutionandexpediteprogressinrelationto

    accessingwatersuppliesintheKimbijiaquifer,

    locatedinDaresSalaam.

    Tosupportresponsibleauthoritiesinthe

    establishmentofregulationsandprocedures

    thatimprovetheBasinOfcesinsightinto

    andmonitoringofgroundwaterabstraction

    inthebasin.

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    Factbox

    3.0 PartnershiP uPdates

    Operations:

    1BreweryKeybeerbrands:

    Sarmat,KozelAveragebrewerywaterefciency

    (litreswaterperlitrebeer):

    6.2*MillerBrandsUkrainewaspurchasedin2009anddidnot

    participateinbenchmarkinguntil2010.

    Netwaterfootprint(millionlitres):

    7,120Netwaterfootprint(litreswaterperlitreofproduct):

    Beer

    62Netfootprintbreakdown(%):

    Cultivation Processing:

    andimports:

    92% 1%Brewingand Waste:

    bottling:

    7%

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    Ukraine|15

    TranslatingwaterriskstobusinessrisksatDonetskbreweryInMay2011,membersoftheWaterFutures

    PartnershipmettoinitiatetheBusinessWaterRisk

    Assessment(BWRA)attheDonetskBrewery.Usingthe

    breweryswaterfootprintandformalBWRAprocess

    withthehelpofDeloitte,thepartnersevaluatedboth

    thelikelihoodandimpactofaseriesofrisks,andwhat

    thenancialcosttoSABMillersoperationsmightbeif

    theyoccurred.

    Theirconclusionwasthat,forthemostpart,water

    qualityrisksposelittlethreattothebrewerys

    continuedoperationsbecauseofmitigatingactions

    alreadyunderwayorexternalfactors.

    Intermsofwatersupply,thebreweryreceivesits

    waterfromalocalreservoir,whichisfedfromthe

    highlyregulatedSeverskiyDonetsandDonbasscanal

    (whichdrawsdirectlyfromtheSeverskiyDonets

    river).Thecanalowhasneverstoppedin52years.

    This,combinedwithpopulationandeconomicdecline,

    andwaterefciencyimprovementsinlocalindustry,

    makesitunlikelythatthebrewerywillexperience

    anyshortageofsupplyintheimmediatefuture.Local

    managementisalsoseekingtoimprovewaterefciency

    atthebreweryandworkiscurrentlyunderwayto

    buildasecondwatersupplymainthatwill,when

    complete,minimiseanyinterruptionofsupply.

    However,theassessmentidentiedthatwastewater

    fromthebrewerycouldrepresentagreaterbusiness

    riskintermsofbreweryoperationandreputation.

    Therstpriorityidentiedrelatedtotheway

    efuentwasdischargedfromthebreweryandthe

    poorinfrastructureinplace.Treatedwastewater

    fromthebreweryisdischargedtoamunicipal

    collectorpipe,whichthenultimatelyowsinto

    theKalmiusRiver.Thispipeisinpoorcondition

    andoccasionallyfractures.Insuchaneventuality,

    thebreweryisrequiredtoreduceproductionwith

    nancialconsequencesforthebusiness,whileany

    pollutionincidentintheKalmiusriverwouldresult

    inenvironmentaldamageandcouldadverselyaffect

    SABMillersreputation.Inresponse,thepartners

    havedecidedtoapplyforinternationaldevelopment/

    infrastructurefundingtooverhaultheexistingefuent

    collector,recognisingthatthisisarisksharedwiththe

    surroundingneighbourhoodsaswellasthebrewery.

    Thesecondpriorityissueconcernedtheabsenceof

    astormwatertreatmentfacilityatthebrewery.Thisisnotasignicantissueinitself,butthepotential

    combinationofastormandleakageofefuentor

    pollutantsfromthebrewerycouldresultinpollution

    totheKalmiusRiverandbringpubliccensureand

    regulatorypenalties.Toavoidthis,thepartnersare

    keentodevelopawetlandbetweenthebreweryandthe

    riverthatwillprovideameansoflteringorremoving

    anypollutionbeforeitreachesthewatercourse.If

    fundingcanbeobtained,itishopedthatthisapproach

    willactasamodelofbestpractice,whichcanbe

    replicatedmorewidely,andinspireascalingupofthe

    approachtotacklepollutionintheKalmiuswatershed.

    Asathirdpriority,thepartnershipisseekingto

    joinforceswithlargeindustriesinthearea,suchas

    DonetskSteel,totackletheindustrialpollutioninthe

    upperKalmiusRiver,whichaffectsDonetskcity.

    NextstepsTheWaterFuturesPartnershipiscurrentlyworking

    withthemunicipalwaterserviceprovidertoformulate

    detailedplansfortherehabilitationoftheefuent

    collectorpipeandscopingaseparateprojectforthe

    establishmentofanarticialtreatmentwetland.

    Theplanswillidentifyrelevantstakeholderswho

    needtobeinvolvedintheprocessandanestimate

    ofpotentialcosts.Oncecomplete,approacheswillbe

    madetopossiblefunders,bothwithinUkraineand

    elsewhere,tonancetheseinfrastructureinvestments.

    Thepartnershipisalsolookingtorecruitalocalco-

    ordinatorwhowouldplayapivotalrolebyengaging

    withnationalandlocalgovernmentandother

    stakeholderstobringtheseproposalstofruition

    andexpandthepartnership.

    Throughtheworkofthepartnership,wecanseethatbusinesshasarangeofconcernsthataligntointerestsofthepublicsector,layingapotentialpathforgenuinepublic-privatecollectiveaction.

    AntonWirth,GIZProjectManager,DonetskRegion,Ukraine

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    Factbox

    4.0 collaboration Partners

    16

    BackgroundColombiaspopulationhasgrownrapidlyoverthelast

    sixtyyearsfromaround11.5millionpeoplein1950

    tojustover44millionin201012.Thecapital,Bogot,

    haswitnessedanevenmoredramaticchange,witha

    tenfoldincreasefromaround700,000peoplein1950

    to7.5millionin201013.Over50%ofthecityswateris

    providedfromtheChingazawatershedandafurther

    7%derivesfromtheTunjueloriverbasin.

    WorkinginpartnershiptoimprovewaterqualityBavariaSABMillersColombiansubsidiaryhastaken

    akeeninterestinwater-relatedissuesforseveralyears.

    In2008,thecompanysignedaco-operationagreement

    withWWFColombiawiththeaimofreducingthe

    impactofitsactivitiesonwaterresourcesandthe

    naturalecosystemsthatareusedinbeerproduction.

    Aspartofthisagreement,Bavariaalsoexaminedhow

    inkeepingwithSABMillersaimofproducingmore

    beerusinglesswateritcouldbemoreefcientinits

    useofwater.Fromtheoutset,itwasacknowledged

    thatimprovementsinperformancewoulddependnot

    onlyonBavariasownactionsbutonharnessing

    theinsightsandsupportofotherstakeholders.

    In2009,Bavariaenteredintoapartnershipwith

    TheNatureConservancy,ColombiasNationalParks

    administration,andtheAqueductandSewageCompany

    ofBogottoimprovethequalityofthedrinkingwaterconsumedbypeopleinBogot,andecosystemcondition,

    inparticularbypreventingexcessivesedimentdelivery

    totheChingazaandTunjueloSumapazrivers.Operations:

    6Breweries 6BottlingplantsKeybeerbrands:

    Aguila,Poker

    Averagebrewerywaterefciency

    (litreswaterperlitrebeer):

    4.1

    colombia

    (23%improvementsince2008)

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    Colombia|17

    ThepartnershipbetweenthepublicandprivatesectorsinColombiafortheconservationofforestswillhelptoensurefreshwatersupplyfor10millioninhabitantsintheshort,middleandlongterms.

    AndresLizarazoAguasomosWaterfundTechnicalSecretary

    Thepartnershiphasusedacombinationofconservation

    andeducationalinitiatives,environmentalprotection

    measures,andimprovementsinthemanagementand

    sustainableuseofecosystemstoachieveitsobjectives

    andissupportedbytheestablishmentofacollective

    fundtoprovideresourcesfortheactivities.When

    completed,theprojectwillhaveextendedacrossnearly

    59,000hectaresandisprojectedtoraiseUS$60million

    forconservationprojectsoverthenext10years.Bavaria

    donatedUS$150,000tostartupthefund.Asimportant

    istheactivesupportandday-to-dayinvolvementof

    thepartnersintheproject.Guidelinesarealsobeing

    developedforhowfundswillbedispersedandoverseen.

    Itisexpectedthatthefundwillsupportadiverse

    arrayofprojects,includingaddingparkrangers,

    strengtheningprotectioninparks,andhelping

    peoplewholiveinsensitiveareastoswitchtomore

    ecologicallysoundlivelihoods.Forexample,grants

    canenableranchingfamiliestoswitchtoecologically

    sustainableoperationsbyunderwritingthepurchase

    ofhigherqualitycattleandotherstart-upcostsif

    theycommittolong-termconservationagreements

    topreservetheirnaturalareas.Moremilkfromfewer

    cowsmeansthatrancherswillbelesslikelytoclear

    forestlandforadditionalgrazingelds,resultingin

    lesssedimentationinrivers.Maintainingthisforested

    landactsasabarrierandlimitssedimenterosion.

    FocusonefciencyBavariahasalsofocuseditseffortonimprovingits

    ownwaterefciency.In2008,thebusinessused

    5.1litresofwaterforeverylitreofbeerproduced.

    Thisgurenowstandsat4.1litres.Thisimprovement

    hasbeenachievedthroughavarietyofinitiatives,

    includinganewwaterreclamationprogrammeatits

    TocancipBrewery.

    TheprojectbeganinNovember2009andwas

    completedinJanuary2011.Itincludedanumber

    ofinnovativewaystoreusesomeofthebrewerys

    wastewaterbydevelopingwatertreatmentprocesses

    whichincludepurication,reverseosmosisand

    disinfection.Wastewatercannowbeusedinanumber

    ofbreweryprocessessuchasthewashingofcrates,the

    operationofvacuumpumps,evaporativecondensers

    andthecleaningofdirtyareas.Sincethecompletion

    ofthisproject,itisestimatedthattherehasbeena

    reductionof22,000moffreshwaterusedpermonth.

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    18

    4.0 collaboration Partners

    18

    BackgroundTheMesoamericanreef,whichextends1,000kmfrom

    theYucatnPeninsulainMexicototheBayIslandsof

    Honduras,isthelargestreefinthewesternhemisphere

    andhasbeenidentiedasagloballyimportantreef

    ecosystem14.Thereefcontainsmorethan65species

    ofcoralandisrichinbiodiversity,beinghometoa

    numberofendangeredspeciesincludingseaturtles,

    theWestIndianmanateeandvarioustypesof

    crocodile15.However,thisuniqueenvironmentis

    underseverenaturalandhuman-inducedthreat,

    whichjeopardisesthespeciespresentandthefood

    securityandlivelihoodsoftheinhabitantswhorely

    ontheseecosystems.

    PreventingsoilerosiontoprotectwaterqualityOneareathathasamajorimpactonthereefshealth

    iswatershedmanagement.Intheregionbordered

    bythereef,around300,000hectaresisusedforthe

    productionofcropssuchasbananas,sugarcane,

    citrusfruitsandpineapples,andformariculture16.

    Theresiduesofchemicalsusedtogrowthesecrops,

    togetherwithsedimentandsoilerodedduring

    cultivation,drainthroughriversandstreamsthat

    comprisethewatershedsoftheregionandndtheir

    waytothecoralreefs.

    In2009,CerveceraHondureaSABMillersHonduran

    subsidiaryenteredintoaveyearpartnershipwithWWFHonduras,withtheaimofaddressingthis

    problem.Sincethen,aseriesofprojectshavebeen

    undertaken,includingthoseworkingwithlocalfarmers

    whosupplysugarcanethatisusedinourCoca-Cola

    planttohelpthemdevelopmorecosteffectiveand

    sustainablefarmingpractices.Byencouragingbetter

    wateruse,andfertiliserandpesticideapplication,the

    farmershavebeenabletoincreasetheirefciency

    andtheproductivityoftheirland,whilstatthe

    sametimemakingtheiragriculturalpracticesmore

    environmentallysustainable.

    honduras

    Factbox

    Operations:

    1Brewery 1BottlingplantKeybeerbrands:

    Barena,Imperial

    Averagebrewerywaterefciency

    (litreswaterperlitrebeer):

    4.2 (36%improvementsince2008)

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    Honduras|19

    WWFbelievesinthesustainableuseofnaturalresourcesandavoidingexcessiveresourceuse.Workingwithabusinesssectorthatisseriouslycommittedtoadoptinggoodpractices,whichusenaturalresourcesinanefcientandsustainableway,isakeypartofourwork.

    SylviaMarin,DirectorofWWFinCentralAmerica

    Thesuccessofthepartnershipdependedtoalarge

    extentonbeingabletodemonstratetheenvironmental,

    socialandeconomicbenetsofanyspecicinitiatives.

    Consequently,intheearlystagesitwasvitalthata

    detailedstudywasundertakenofthevarious

    watershedstoestablishwhichhadthegreatestimpact

    onthereef.Likewiseitwasalsoessentialtounderstand

    whatimpact,ifany,theseinitiativesmighthaveon

    rurallivelihoods.Withthesermfoundationsinplace,

    thepartnersdevelopedaportfolioofprojectsthatoffered

    thegreatestbenetsbothtothereefandtofarming

    communities.Throughout,thepartnerswerekeento

    engagetheactivesupportandinvolvementofother

    groupsincluding,localandnationalgovernmental

    institutions,andprivatesectororganisations.

    Theconceptofpartnershipextendsfurtherthan

    justworkingwithfarmers:forexample,afterthe

    installationofanefuenttreatmentplantin2010,

    CerveceraHondureafoundthatthoughthewater

    theyweredischargingcompliedwithnational

    regulations,theriveritselfwaspolluted,aswater

    dischargedfromthesurroundingresidentialareaswas

    contaminated.Therefore,thetreatedwaterfromthe

    efuentplantbroughtnobenettothesurrounding

    communities.Inresponsetothis,Cervecera

    Hondureaworkedwiththelocalgovernmentto

    removesewagewaterfromthecreekandsenditto

    atreatmentplant.Inaddition,therubbishthatwas

    previouslydumpedalongtheroadwasremovedandthe

    roadwaspaved.Theareahasnowbecomeacentrefor

    recreationforthelocalcommunityandboththefauna

    andorahavegraduallyreturnedtothearea.

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    4.0 collaboration Partners

    Operations:

    11BreweriesKeybeerbrands:

    Haywards5000,RoyalChallenge

    Averagebrewerywaterefciency

    (litreswaterperlitrebeer):

    4.7

    BackgroundInIndia,extractionratesforgroundwaterareamongst

    thehighestintheworld17butthereisnooverarching

    governmentpolicyregulatingeitherthelevelof

    extractionorhowtheresourceisused.Asaresult,

    agriculturalwateruseacrossmuchofthecountryis

    highlyunsustainable.

    Recharginggroundwatersources

    TheNeemranaandBehrorwatersheds(12,500

    and15,000hectaresrespectively)inRajasthanare

    almosttotallydependentongroundwaterandrain

    watercollectiontanksfortheirwatersupply.The

    groundwatersystemiscomposedofamixtureofa

    shallowunconnedaquifer(formedofsandandsilt);

    shallowperchedaquifers(connedbyclayfrombelow);

    multipledeeperconnedaquifersinthealluvium;anda

    deepaquiferinthebedrock.Surfacewatercaptureand

    storageismainlythroughtankssitedontheperchedaquifers.Theareaexperienceshighlevelsofwaterloss

    fromevaporation,thelocalshallowaquiferisdryand

    evenfairlydeepwells(upto30m)haverundry.

    Thereisnosystematicapproachtowaterconservation

    andresourcemanagement,andtraditionalwater

    storagestructuresusedtosupplydomesticandcattle

    farmersneedsarepoorlymaintained.Waterforboth

    agriculturalandindustrialconsumptionispumped

    fromadeeplyingaquifer.Increasingwaterscarcity

    posesaseriousthreattothelivelihoodsofsmalland

    medium-scalefarmers.ForSABMillerIndia,inaddition

    tothechallengeofoperatinginsuchawater-stressedarea,thecompanyalsofacesapotentialreputational

    riskbecausethereisaperceptionamongststakeholders

    thatindustryandparticularlybrewingisusinga

    disproportionateamountofavailablewaterresources.

    india

    Factbox

    (32%improvementsince2008)

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    India|21

    Therewasamajorproblemofwaterscarcityinthevillage.Theconstructionofwaterharvestingstructuresconstructhasenabledmetoincreasetheamountoflandundercultivation,aswellasmycropyield.

    NarsinghYadav,smallholderfarmer

    Inresponsetothissituation,SABMillerIndiahas

    establishedaprojectspreadoverthetwowatersheds

    (27,500hectares)involvingtheConfederationof

    IndianIndustry,withsupportandinputfromthe

    AdvancedCentreforWaterResourceDevelopment

    andManagement(hydrogeologicalanalysis),Gridline

    Consultancy(whichutilisesremotesensingand

    geographicinformationsystemtechnology),and

    HumanaPeopletoPeople(toco-ordinateandmanage

    communityinterventions).Theprojectaimstoimprove

    thesupplyofwaterinthetargetareabyfocusingon

    threeactivities:

    Exploitingnaturalrechargeareasontheridges

    fordeeprecharge

    Buildingsmallwaterdiversionstructuresinthe

    alluvialplainsfordivertingwatertotubewells

    3fordeeprecharge

    Improvingtheefciencyofwateruse

    Todate,theefcacyoftherstoftheseinitiativeshas

    beendemonstratedconclusivelywithariseofaround

    18metresinlocalgroundwaterlevelsinthreerecharge

    structuresbuiltontheridges.Thecombinedstorage

    potentialofthesethreestructuresisaround50,000m3

    andgiventhattheywillrellsixtimesovertheyear

    producesatotalrechargepotentialof300,000m3.In

    practicalterms,thismeansthatthelevelofrecharge

    nowavailableismorethanthevolumeofwaterusedin

    SABMillerIndiasnearbyRocheesbrewery.

    Theprojectalsosupportedover60cropdemonstrationtrialsin2010thatexplainedthebenetsofbetter

    farmingpractices,includingnutrientmanagementand

    moreefcientuseofirrigation.Theseeldsareusedto

    showcaseimprovedwater-efcientplantvarietiesand

    irrigationtechniquesandmorewater-efcientcrops

    suchasmillet,cauliowerandokra.Theresultshave

    beenencouraging.Farmerswhohavetakenupsome

    oftheimprovedplantvarietieshavebeenabletoboth

    decreasetheirwateruseandimprovetheirincomes.

    Inthecaseofmilletandokra,farmershaveimproved

    theirearningsby114%and147%respectively.Such

    hasbeenthesuccessofthetrials,anincreasingnumberoffarmersarekeentoparticipateintheprogramme.

    Afurtherbenetoftheprojectisthatthereisnow

    muchmorerobustinformationonthewaterbalance

    intheareaand,specically,theapportionmentof

    consumptionbetweenagricultural,industrialand

    domesticusers.Theresearchhasshownthatindustry

    usesonly4%ofgroundwater,comparedto9%for

    domesticpurposesand87%foragriculture.

    Inthecomingyears,theprojectwillcontinueto

    engagefarmersandotherstakeholderstodrivewater

    usageefciencyandtheconstructionofnewrecharge

    structuresintheregion.Thetangiblesuccessofthe

    projectwillalsoprovidepowerfulevidencewhen

    engagingwithgovernment(atlocalandnationallevel),

    communityleadersandpotentialdonorstosecuretheir

    continuedsupport.

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    22

    4.0 collaboration Partners

    BackgroundMillerCoorsisSABMillersjointventurewithMolson

    CoorsBrewingCompany.Waterisatoppriorityforthe

    businessbecauseoftheimpactithasonproductionand

    thesupplyofrawmaterials.Threeoftheeightmajor

    MillerCoorsbreweriesarelocatedinareasthatare

    waterscarceorwaterstressed.

    Lastyear,MillerCoorsestablisheditsWaterAdvisory

    Board:across-functional,multi-disciplinedadvisory

    teamthatwillprovidedirectionandexercise

    governanceoverthesafetyandqualityofthewater

    usedbyourpeopleandourproductionprocesses.

    MillerCoorsalsolaunchedaWaterSourceRisk

    Assessmentproject.Theprojectsactivitiesinclude:

    Formingbaselineassessmentsofwatershedrisks

    ateachbreweryoverthenexttenyears;

    Determiningsourcesoftherisksandidentifyingpotentialactionstomitigatethem;and

    Aggregatingknowledgeregardingthevarious

    brewerywatershedsintoasystem-wideanalysis

    ofrisksandmitigationopportunitiesforallof

    MillerCoors.

    Thebaselinesupplyassessmentsforoureightmajor

    brewerieswerecompletedin2010,andthebusiness

    expectstoreportfurtheronthisissueintheyears

    ahead.

    WorkingwithfarmersinSilverCreekValleySomeofthefarmsaroundtheSilverCreekValley

    inIdahoaresuppliersofbarleytoMillerCoors.The

    companyhasjoinedwithTheNatureConservancy

    (TNC)toimprovehabitatsandtosafeguardthe

    watershed.

    Together,TNCandMillerCoorshavedevelopeda

    watershedconservationplanthatcurrentlyguides

    restoration,monitoringandprojectprioritisation

    throughoutthewatershed.Projectsunderwayas

    aresultofthisplaninclude:fencingandplanting

    alongstreamstopreventdamageandcontamination

    bylivestockandagriculture;coordinatingrobust

    monitoringprogrammeswithlandownersand

    stakeholders;andongoingworkonagroundwater/

    surfacewatermodel.

    usa

    Factbox

    Operations:

    8BreweriesKeybeerbrands:

    MillerLite,CoorsLight

    Averagebrewerywaterefciency

    (litreswaterperlitrebeer):

    3.9 (maintainedthesameefciencysince2008)

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    USA|23

    Aspartofthelargerwaterconservationeffort,funding

    wasalsoprovidedtoretrotpivotsthepartofan

    irrigationsystemthatshootswateroveraeldwith

    adevicethatdisperseswaterclosertothegroundand

    atlowerpressures.Thisresultedinsavingalmost

    16,000hectolitresofwatereachrotation(everytwo

    days)nearlya20%reductioninwaterusageoverall.

    Thesuccessofthispilotstimulatedanewidea:amodel

    barleyfarmthatwouldactasashowcaseforthebest

    conservationpracticesbothintermsofprovidingmore

    habitatforwildlifeandimprovingthequalityand

    quantityofwater.Withretrotsandimprovements

    madetodatetoexistingpivots,anestimated3545%

    inwatersavingscanberealised.

    Combiningtherecommendationsfromthewatershed

    conservationplanandthebestmanagementpractices

    developedonthemodelbarleyfarm,TNCplansto

    createaLandscapeAtlastohelplandownersand

    farmersnavigateconservationprojects.Thisresource

    willincludewaterconservationbestmanagement

    practicestransferabletofarmsthroughoutthewest,

    whilespecicrecommendationsforindividualfarms

    andstretchesofcreekwillbeincludedforSilverCreek.

    TheexperienceofthecollaborationwithTNCinspired

    MillerCoorstocommissionRTIInternational(aleading

    non-prot,independentresearchanddevelopment

    organisation)toundertakeasimilarassessmentinthe

    SnakeRiverValley,whichisadjacenttoSilverCreek

    andanareathatsuppliesbarleytothecompany.

    Engagingwithotherstakeholderstoprotectwatersheds

    AspartoftheBeverageIndustryEnvironmental

    Roundtable(BIER),MillerCoorshasworkedwith

    partnerstocreateanindustryapproachforwater

    footprinting.Thewaterfootprintmapsusageand

    relatedrisksassociatedwithwaterthroughoutthe

    valuechain.MillerCoorsexpectstobeginassembling

    itswaterfootprintin2011usingthisapproach.

    InpartnershipwithSandCountyFoundation,

    MillerCoorsistheprincipalcorporatesponsorofthe

    rstdemonstrationsiteforWaterAsACropon

    theTrinityRiverinTexas,whichsupplieswaterforMillerCoorsFortWorthbrewer.TheTrinityRiverbasin

    ispronetoashoodsthatstripsoilfromtheground.

    Thisdegradesthelandforagricultureandcattle

    ranching,andalsoreduceswaterqualitydownstream.

    WaterAsACrophasbroughttogetherlocal

    landownerswhocollectivelyhold1,000contiguous

    acresalongtheriver,andisgivingthemincentives

    (withsupportfromMillerCoors)toadoptland-use

    practicesthatwillslowwatertopreventerosion,keep

    riverbanksintact,andreduceooding.Theseinclude

    crossfencingtoenablerotationalcattlegrazingand

    installingvegetativebuffersbelowcultivatedelds

    toprotecttributarycreeksthatfeedtheriver.Oneof

    theprojectsmostambitiousgoalsistoscientically

    measureimprovementsinwaterqualityandquantity

    thatresultfromthesepractices.Thiswillconvince

    otherlandownersandwaterconservationistsofthe

    benetsofsuchinitiativesand,hopefully,persuade

    themtoreplicatetheapproachmorebroadlyinthe

    TrinityRiverBasinandacrossthecountry.

    Werunabusinessandtomakeitsustainablethatmeansmakingchangesthatarehardtodoonourown.WithoutTNCandMillerCoors,Idontknowhowwewouldbedoingalltheimportantthingswearedoingtoday.

    FarmerandLandowner,SilverCreek,Idaho

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    5.0

    InthetwoyearssincetheWaterFuturesPartnership

    hasbeenestablished,goodprogresshasbeenmadein

    identifying,assessingandbeginningtoaddressthe

    sharedwaterrisksinwatershedsineachofthe

    fourcountries.

    Theapproachtowaterfootprintinghasbeenrenedand

    thismethodologypromotedasabasisfordeveloping

    moredetailedwatershedassessments.Furthermore,

    wehaveutilisedaWatershedRiskandSustainabilityAssessment(WRSA)andBusinessWaterRisk

    Assessment(BWRA)approachthathasallowedus

    toidentifyandanalysethetangiblerisksthatface

    SABMillersubsidiariesandthesurroundingcommunity.

    Throughrobustanalysis,wehavebeenabletoengage

    withlocalstakeholdersandclearlydemonstratethat

    manyoftherisksthatSABMillerfacesare,infact,

    sharedwiththelocalcommunityandthatthereisa

    sharedinterestincollectivelyaddressingthem.

    Unsurprisingly,asthefactorsthataffectwater

    availabilityandqualityarelocalisedandunique,

    so,too,aretherisksthathavebeenidentiedinourpartnercountries.Consequently,althoughour

    approachiscommon,theprioritiesforeachpartner

    countryarenot.

    Ineachcountrywehavebeenabletoidentifyand

    engagewithstakeholdersandareworkingwiththem

    todevelopdetailedactionplansfortacklingthepriority

    sharedwaterrisksidentied.

    Despitetheprogressmade,therearelessonsthat

    havebeenlearned;thingsthathavegonewelland

    thingsthathavenot.Oneofthecommitmentsofthe

    WaterFuturesPartnershipistosharethislearningwithothersinthehopethattheywillalsotakean

    inclusive,multi-stakeholderapproachandovercome

    thechallengessuchanapproachentails.

    TechnicallessonsThinklocal:

    Whilereviewingwaterriskataregionaloreven

    countryleveliscompelling,thereislittledoubtthat

    athoroughunderstandingoflocalissuesisessential.

    Forexample,theremaybespecicissuesthatonly

    becomevisiblewhenonthegroundthatmaypresent

    asignicantbarriertoprogress.Thesemaybe

    cultural,legislativeortechnicalchallenges.Forthisreason,thereisdemonstrablevalueinundertaking

    apreliminarylocalassessmentpriortoadetailed

    riskanalysistobetterunderstandthebroadwater

    issues,howcomplextheyareandhowsuccessful

    anyinterventionislikelytobe.Thiswillidentifyany

    potentialbarrierstoaddressingcertainrisksbring

    morefocustothebusinessriskassessment.

    Quanticationquandary:

    Usingabusinessriskassessmentapproachidenties,

    quantiesandprioritisesrisksandthereforeprovides

    theframeworkforbuildingabusinesscasefor

    addressingwaterissues.However,insomecasesit

    hasprovendifculttoquantifysomeoftherisks,

    especiallylesstangibleones(forexample,regulatory

    andreputationalrisks)ordealingwiththeuncertainty

    ofclimatechangemodelsandhowhydrologywill

    respondtoachangingclimate.Nevertheless,a

    qualitativeassessmentcanbeusedtoidentifyrisks

    andatleastestablishthescaleoftheproblemforthe

    businessandhelpprioritisetherisksfromabusiness

    pointofview.Ourexperiencehasshownthatitmight

    bemoreeffectivetocarryoutabriefqualitativerisk

    assessmentrsttodiscountrisksthatareofverylittle

    ornoimportancetothebusiness(orarealreadybeingtackled),beforecarryingoutthedetailedquantication

    ofrisksrequiredforthebusinesscase.

    24

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    PartnershiplessonsAssessthecapacitygap:

    Ourworkhasdemonstratedthebreadthandvarietyof

    differentissueseachpartnercountryfacesinterms

    ofwaterrisk.Toaddresseachonerequiresdifferent

    skillsandcapabilities.TheWaterFuturesPartnership

    wasestablishedonthebasisofjoiningtogether

    partnerswithdifferentskillsandcompetencies,

    however,sometimeseventhishasnotbeenenough,

    particularlywhenaddressingspecicissuesthat

    arelocaltoaparticularregionorcommunity.

    Understandingthesepotentialcapacitygapsisan

    importantpartofthepartnershipprocess.Itreinforces

    theimportanceofdevelopingcloserelationshipswith

    localstakeholdersandbeingabletorectifyanycapacity

    gapsbyleveragingsupportfromothersfromboththe

    privateandpublicsectors.

    Recognisethelonggameandtakesmallsteps:

    Althoughsubstantialprogresshasbeenmadeacross

    thepartnershipcountries,ourprogresshasnotbeen

    quiteasrapidaswerstenvisaged.Ithastakentime

    todevelopworkingrelationshipsandbuildtrust,both

    betweentheWaterFuturesPartnersandwithstakeholders

    outsidethePartnership.Externalstakeholdersmay

    bewaryaboutengagingwithgovernment,NGOsand

    otherbusinesses,andsometimesithasbeendifcult

    tondappropriatelocalpartnerstoengagewith.It

    hastakentimetoengageothers,anditisimportant

    torememberthattacklingwaterrisksiscomplex:

    wemustbecommittedtotacklingtheissuesoverthe

    long-termandbuildrobust,long-lastingrelationships

    withstakeholders.

    Buildingthebusinesscase:

    Waterfootprintinghasenabledthepartnershipto

    identifywhereitshouldwork,butitdoesnotprovide

    thewhyandhow.Itiscrucialtounderstandthespecic

    risksandthebenetstothebusinessofintervention,

    particularlyifthissitsoutside,forexample,thegates

    ofthebreweryorbottlingplant.Usingabusinessrisk

    assessmentapproachhasenabledthepartnershipto

    translatethewaterrisksintobusinessrisks.Ithasclariedbusinessprioritiesfortakingactionand

    developedabetterunderstandingofthereturnon

    investmentavailable.Addressingwater-relatedrisks

    doesrequireinvestmentwithoutadenedandrobust

    businesscasethiscanbechallengingtoattain,

    particularlyifwidercommunityorpublicinvestment

    isrequired.

    Recognisethebenetsofearlyengagement:

    Thecommitmentandengagementoflocalstakeholders

    withwhomwaterrisksaresharedisvitaltothesuccess

    ofanymitigationinitiative.Sharedownershipand

    responsibilityforactionandacommonunderstanding

    ofwhatisrequiredfromeachstakeholdermustbeat

    theheartofanyactionplan.Waterissuescanrarelybe

    successfullyaddressedinisolation.Wehavefoundthat

    itisimportanttoengagewithlocalstakeholdersearly,

    particularlywithinthepublicsector,tounderstand

    theirperceptionsandpriorities,tosetexpectations,

    andseeifthereisanopportunitytocollaborate.

    Ourexperiencesuggeststhattheywillnotbuyinto

    studiesorpartnershipsunlesstheyfeeltheyhavebeen

    adequatelyinvolved.

    Sharedresponsibilityandlocalmanagement:

    Giventheneedtoinvolvemanystakeholdersin

    tacklingsharedlocalwaterissues,clearleadership

    andgovernancearrangementsmustbedemonstrated

    bythelocalpartnership.Thisrequiresthatobjectives,

    rolesandresponsibilities,activitiesandnancial

    contributionsareplannedandagreedtogether.As

    muchoftheactivityisundertakenatalocallevel,

    wehavefoundthereisoftenvalueininvestinginalocalmanagementresourcetoactasafocalpoint,

    especiallywhendevelopingstakeholderrelationships

    andtryingtofostercollectiveaction.

    NextstepsforWaterFuturesTheWaterFuturePartnershipwillcontinuetowork

    ineachofthepartnershipcountriesoverthenext

    twelvemonthsandbeyond.Werecognisethatmanyof

    theissuesthatarefacedbycommunitiesinwhichwe

    workcannotbesolvedeasilyorsimply,andrequirethe

    investmentoftimeandresourcesfrommultipleactors.

    Thecommitmentsthathavebeenmadearenotshort

    term,anddetailedactionplanswillbeinplacethat

    willdelivertangiblebenetsineachcountry.

    Wewillcontinuetosharethelearningfromthis

    partnershipandourexperiencesofworkingboth

    globallyandlocally.Throughthisreportandsharing

    information,wehopetoinuencethedebatearound

    theroleofbusinessinpromotingbetterwater

    managementandcorporatewaterstewardship.

    Moreover,wewillseektoengagewithpublicpolicy

    anddecisionmakersatalocalandgloballevelto

    createawarenessoftheissuesaroundwaterscarcityandquality,advocatingtheimportanceofadopting

    amulti-sectoralpartnershipapproach.

    Itisforthisreasonthatwehavebeguntoincorporate

    otherinitiativesthatarebeingundertakenacross

    SABMiller,outsidetheWaterFuturesPartnership,to

    strengthenourapproachandbuildmomentumfor

    collectiveaction.Furthermore,wehaveextendedan

    openinvitationtootherbusinesses,NGOsandother

    potentialpartnerstojointhisinitiative.Inthisway,

    wehopetobuildonthesuccesssofarandestablisha

    criticalmassfromwhichwecanlearnfromeachother,

    shareourexperiencesandresources,andtogether

    secureourwaterfuture.

    Sharedlessonsandnextsteps|25

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    6.0

    26

    AboutSABMillerSABMillerisoneoftheworldslargestbrewers,withmorethan200

    beerbrandsandsome70,000employeesinover75countries.Weare

    alsooneoftheworldslargestbottlersofCoca-Colaproducts.

    Wevebecomeagloballeaderbyexcellinglocallynurturingstrong,local

    brandsandbuildingbrandportfoliosthatmeettheneedsofconsumersineachofourmarkets.Ourportfolioofbrandsincludespremiuminternational

    beerssuchasPilsnerUrquell,PeroniNastroAzzurro,MillerGenuineDraft

    andGrolsch,aswellasleadinglocalbrandssuchasAguila,Castle,Miller

    LiteandTyskie.

    Wevecreatedleadingpositionsinbothemerginganddevelopedmarkets

    acrosstheworld.Ourportfolioofbusinessesspanssixregionswhich,in

    theyearended31March2011,togethersold218millionhectolitresof

    lager,anddeliveredrevenuesofUS$28,311million.Wevegrownthrough

    acultureofoperationalexcellence,deliveringhighqualityproducts,

    innovationandsustainablegrowth.

    Webelievethatourbusinessisnotseparatefromsociety,andthatthesuccessofSABMillerisinextricablylinkedtothewell-beingofthewider

    community.Everywhereweoperate,wereworkingtobuildstronglocal

    businessesthatcontributetotheirlocaleconomies.Thatswhatmakes

    usgloballeadersindoingbusinesslocally.

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    InitiatorsoftheWaterFuturesPartnership|27

    AboutWWF-UKWeretheworldsleadingindependentconservationorganisation.Were

    creatingsolutionstothemostseriousconservationchallengesfacing

    theplanet,buildingafuturewherepeopleandnaturethrivetogether.

    Thesustainableuseoffreshwaterisonesuchenvironmentalchallenge.Wewanttoensurethatwaterresourcesandtheecosystemsthatdependupon

    themareprotectedandconserved.Webelievethatengagingtheprivate

    sectoriskeytoachievingthis.Werethereforedevelopingconcepts,tools

    andapproachesfortheprivatesector,sothattheycantakeresponsibility

    fortheirroleinmanagingfreshwater.

    AboutGIZTheGermanInternationalCooperationAgency(GIZ)isastate-owned

    enterpriseoperatinginmanyeldssuchaseconomicdevelopmentand

    employmentpromotion;democracy;peacebuildingandcivilconict

    transformation;healthandeducation;resourceconservationandclimate

    changemitigation.MostofourworkiscommissionedbytheGermanFederalMinistryforEconomicCooperationandDevelopment(BMZ),but

    otherclientsincludenationalgovernments,theEuropeanCommission,

    WorldBankandprivatecompanies.

    Workingefciently,effectivelyandinaspiritofpartnership,wesupport

    peopleandsocietiesworldwideincreatingsustainablelivingconditionsand

    buildingbetterfutures.Theserviceswedeliverdrawonawealthofregional

    andtechnicalcompetence,basedontriedandtestedmanagementexpertise.

    Wehavealmost600peopleworkingon80waterprogrammesin60countries,

    includingurbanandruralwatersupplyandsanitation,transboundaryand

    nationalwaterresourcemanagement,andwatersectorreform.Ourwork

    isbasedonlong-termpartnershipswithgovernments,helpingtoformandimplementgoodwaterpolicyandstrengthengovernance.This,incombination

    withourdedicatedprogrammeforcooperationwiththeprivatesector,makes

    GIZastrongpartnerintheemergingeldofWaterStewardship.

    FormoreinformationontheWaterFuturesPartnershipemail

    [email protected]

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    SABMillerplcSABMillerHouseChurchStreetWestWoking

    SurreyGU216HSUK

    WWF-UKPandaHouseWeysideParkGodalming

    SurreyGU71XRUK

    ThisreportisprintedonRevivePureWhiteOffsetwhichis100%recycledcontentfrompost-consumerwaste,byanFSCandISO14001accreditedprinter.

    Design&production:O l D i &

    GIZDeutscheGesellschaftfrInternationaleZusammenarbeit(GIZ)GmbH

    Postfach518065726EschbornGermany