Sector Drilldown:WaterSpeakers:Zoe Knight, Climate Change Director at HSBCKoh Lian Hock, Exective Director of Lien AidToshihiro Nakamura, Co-Founder at Kopernik

Moderated by:Beau Seil, Managing Partner of Unitus Impact

Zoe KnightDirector of Climate Change

StrategyHSBC

ABCGlobal Research

Climate Change and WaterAddressing the global challenge

May 2013

Zoe Knight

Director, Climate Change Centre of Excellence

HSBC Bank plc

+44 20 7991 6715 zoe.knight@hsbcib.com

View HSBC Global Research at: http://www.research.hsbc.comIssuer of report: HSBC Bank plc

Disclaimer & Disclosures: This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it

4

Climate Change makes existing resource stress worse

· Water – disruption

· Energy - disruption

· Food – disruption

· The inter- linkages are all too clear

Source: HSBC

5

Water availability varies across regions

· Water availability has declined dramatically in some countries

· Currently water per capita levels are stressed for India, scarce for South Korea, South Africa and Saudi Arabia

· India is the most vulnerable country overall, but China also has localised stress

Source: HSBC

· Five year USD100m programme

· WaterAid

· WWF

· Earthwatch

· Engaging HSBC Employees to deliver tangible benefits

HSBC Water Programme – flagship environment project

Koh Lian HockExecutive Director

Lien Aid

Our Presence

Singapore, Cambodia, China and Vietnam

Our Partners

• Local Government Ministries• International and local NGOs• Corporates

Mission

Make safe water and sanitation accessible and affordable to poor communities in Asia

Gift of Water Lien AID’s water program empowers rural communities by implementing change. It builds water facilities, facilitates knowledge transfer, stimulates community ownership and encourages behavioral change for better health, education and livelihood.

What we do

1. Build water facilities, giving locals direct access to safe and clean water.

2. Improve awareness on health and hygiene, and educate communities on the importance of drinking treated water

3. Enhance knowledge on water conservation and rationing, protection of water sources, as well as operations and maintenance.

We actively design initiatives that are sustainable : environmentally, financially,

operationally, socially and politically.

Floating Communities

Poverty-Stricken Communities

Water changes my world

Water Project (Village)

Location:Kampong Chnang Province, CambodiaAve annual rural floating hsehold income : S$660 (2010)

LA Initiatives:• Constructed floating water treatment plants

(operated by community/ entrepreneur on cost recovery basis)

• Treated water is bottled and sold at affordable average USD 0.20 per 20L

• Hygiene awareness program, O&M training

• Completed 3 treatment plants, benefitting 2,653 people

• Expected to complete 2 water treatment plants by end 2012, benefitting 4,339 people

• In the pipeline: 11 water treatment plants, benefitting 29,922 people (Kampong Chnang & Siem Reap)

Polluted Water Sources, Clean water is relatively costly

10

Location:Xin Fu Yuan Village (2,040 villagers), Guizhou Ave annual rural hsehold income: S$601 (2010)

LA Initiatives:• Identified water source• Constructed water storage

facilities and installed water distribution system

• Hygiene awareness program, O&M training

• Expect to complete projects in 11 villages by end 2012, benefitting 20,037 people

• In the pipeline: Projects in 30 villages , benefitting > 30,000 people

Water Project (Village)

Frequent Dry Spells, Polluted Water Sources, Lack of Proper Infrastructure

11

Location:Dazhu County, Sichuan ProvinceAve annual rural hsehold income: S$892 (2010)

LA Initiatives:• Installed water treatment

systems• Hygiene awareness program,

O&M training

• Completed projects in 5 schools in 2012, benefitting 3,038 students and teachers

• In the pipeline: 53 schools, benefitting 31,448 students and teachers

Water Project (Schools)

Polluted Water Sources

12

Key Success Factor 1Local Community Ownership & Capacity Building for Sustainable Outcomes

Operator for Water Treatment Plant

Latrines Sale Agent Village Management Trainee (大学生村官 )

Ms. Meas MomOperator for water treatment plant and seller of Lotus Water,Chhnouk Trou Commune, Kampong Chnang Province

‘I want my son to take over the Lotus water business because I want our family to continue to be part of this meaningful project.’

Mr. Kim SrangLatrine sales agent, Kampong Speu Province

‘I never knew marketing was able to help in the increase in sales of the latrine products. I am encouraging other sales agents to conduct sales events so that they are able to sell more latrines.’

Mr. Yuan Yong Fa,VMT, Zhang Tang Village, Gansu Province

‘Awareness of the root problem is crucial in paving the way to solve the age old water problems that have plagued countless communities for decades.’

13

Key Success Factor 2

Advocacy & Education to Raise Awareness and Drive Demand

Goodwill Ambassador Health & Hygiene Training WATSAN

Contests for Students Sales Event for Latrines

Mr. Xuan BachActor and comedian, Goodwill Ambassador, Rural Water Supply & Environmental Sanitation, Vietnam

‘Water and sanitation problems in the rural communities can be solved if we work together to educate the people.’

Dr. Boubacar DiarraMedical doctor, Consultant, Lien AID

‘We not only want to provide clean water to the villagers, but more importantly, to teach them about the benefits of proper hygiene practices, water management and protection of the water sources and environment.’

Mr. Zheng Yinzhang, Principal, Ganchong Primary School, Heinigou Village, Yunnan Province

‘We’ve never thought of teaching the students about water and sanitation through art & writing competitions. I think the students learnt a lot more through this channel!’

Support to latrine sales agents come in the form of training on the technical aspects of manufacturing of the low cost latrines, and also the marketing element of promoting sales.14

Toshihiro NakamuraCo-Founder

Kopernik

Kopernik brings life-changing technologies to the last mile by connecting manufacturers of technology, local organizations and funders

Distribution partners(Local organizations)

Technology partners(Technology manufacturers)

Funding partners(Individuals & Corporations)

kopernik.info16

Typically, technologies are distributed using ‘technology agent’ model

kopernik.info17

$$$ $$$$$$

Local technology agents selling technologies to

the local communities on a consignment basis

Technology

Technology

Technology

Kopernik arranges delivery of technologies to the local

partners

Customers

Tech agents

Obstetric kits in Haiti

Cooking stoves, solar lanterns, water purifiers,

educational toys in Indonesia

DIY Charcoal in Kenya

Water purifier in Uganda

Drip irrigation, solar lights and water filters in

India

Solar lanterns, hearing aid and battery kits in

Japan

Solar lanterns, Rollable water drum, Water

purification system and cooking stoves in Timor-

Leste

Hearing aid in Vietnam

Solar lanterns in Nigeria

Solar lanterns in China

Since our launch in 2010, we’ve reached over 100,000 people in 13 countries

kopernik.info18

Solar lanterns in the Philippines

Sector Drilldown:WaterSpeakers:Zoe Knight, Climate Change Director at HSBCKoh Lian Hock, Exective Director of Lien AidToshihiro Nakamura, Co-Founder at Kopernik

Moderated by:Beau Seil, Managing Partner of Unitus Impact

Please proceed to the next sessions

Toolkits: 3.25 – 4.25pm

• Effective Due Diligence: 4.1• Fundraising: MRA• Impact Assessment: 6.1• Mobilising Human Capital: 14