Innovation DayChemical Heritage Foundation

Corporate Water Stewardshipan Oxymoron or the New Norm ?

Paul L. FreedmanPresident, LimnoTech

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• Founded 1975• Focus on water issues• Services related to:

• Regulators/legal• Remediation• Restoration

• Risk Reduction• Resource Management• Research

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What do these have in common?

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Require 2500 liters of water to produce

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Water, Water everywherenor any drop to drink

The Rime of the Ancient MarinerWorld Water

3%

→

Fresh Water

SW

GW

Ice capsGlaciers

0.3%(0.01%)

Surface Water

lakes

rivers

streams

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Dry lakes & rivers Colorado River

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Lake Travis, Texas

Rio Grande, Texas

TEXAS

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Lake Lanier, Georgia

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Australian outback

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China

Yangtze River

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India

Piali Village, West BengalDRAFT

Water Stress: Is getting redder...

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Worsening Trends

• Population Growth 9-10 billion

• Urbanization >50% & more

• Global Development $ ↔water

• Climate Change = water changeDRAFT

Increased Awareness

2009 Globescan– Serious problems: 90%– Companies have role & obligation: 78%

Corporate investors concerned andCorporate managers beginning to act

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As water becomes scarcer who will be impacted?

Agriculture

Domestic

Energy

IndustrialOther

US Water Users 2005

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Why Businesses are Interested

• Financial Risk– Costs– Revenues

• Physical Risk– Scarcity, quality

• Regulatory Risk– Change in rules

less availability, loss of license

• Reputational Risk– Loss of market DRAFT

Where there is risk . . .. . . also opportunity!

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New Analytical Tools• Water footprint• Risk assessment tools• Best practices• Water disclosure surveys• Water stewardship certifications

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Water Footprint ApproachBasis: Dr. Arjen Hoekstra (Univ. Twente, Netherlands)

Green

Blue

Grey

Direct

Supply Chain

End Use DRAFT

Global Trade

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Require 2500 liters of water to produce

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Chemical Industry PE/PP

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Borealis: PE/PPWater Uses

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Water: everyday life decisions

Coffee140 liters

Beer80 liters

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All Context• Water is like Politics. . . it’s all local

• Water use is also likechemical emissions. . .it’s all context

• Devil is in the detailDRAFT

Scarcity

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Water used to make computer microchip?

32 litersDRAFT

Global Water Initiatives

• Aquawareness : EWP• Alliance for Water Stewardship• Aqueduct• BIER Water Footprint Working

Group• Carbon Disclosure Project -

Water Disclosure• Corporate Water Gauge• Federation House Commitment

to Water Efficiency• Global Environmental

Management Initiative (GEMI)• Global Reporting Initiative• Global Water Tool (WBCSD)

• UNEP/SETAC Life Cycle Initiative

• Strategic Water Management Framework (Australia minerals)

• UN CEO Water Mandate• Veolia Water Impact Index• Water Brief for Business• Water Footprint Network• Water Neutral Offset Calculator• Water Risk Filter• WaterSense Certification

Scheme• Water Stewardship Initiative• ISO Water Footprint StandardDRAFT

Global Water Initiative

• Many & evolving fast

• Widely differing purpose & constraints

• Complex landscape

• Industry groups concerned (e.g. CGLI to BIER) DRAFT

Purpose for CorporateWater Stewardship Frameworks

1. Water use accounting

2. Impacts assessment

3. Business Risks

4. Prevention & response

5. Public Communication & DisclosureDRAFT

Selected Water Stewardship Initiative Simplified Characterization

WATER

USE

WATER

IMPA

CTS

BU

SINESS R

ISKS

PREVEN

TION

&

RESPO

NSE

DISC

LOSU

RE

Water Footprint Network (WFN) ✘ ✘ ✘

Global Water Tool (WBCSD) ✘ ✘

Global Reporting Initiative (GRI) ✘ ✘ ✘

CDP Water Disclosure ✘ ✘ ✘ ✘

ISO Water Footprint ✘ ✘

Global Env. Mgmt. Initiative (GEMI) ✘ ✘

Water Risk Filter ✘ ✘ ✘Most are under further development

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Corporate Motivations• Assessment• Reducing Risks• Improving Performance• Green Branding• Standards & Certifications• Transparency & Disclosure• Others. . .D

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• World Business Council for Sustainable Development (WBCSD)

• Tool to estimate business risk from water scarcity– Locate Corporate facilities in water-scarce areas– Employees in countries lacking access to water or

sanitation– Suppliers in water-scarce areas

• Excel workbook and mapping tool

Global Water Tool®

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Example Output

1

3

1

2 2

1

0

0.5

1

1.5

2

2.5

3

3.5

No

Dat

a

Ext

rem

e S

carc

ity

Sca

rcity

Stre

ss

Suf

ficie

nt

Abu

ndan

t

Sites Distribution (Watershed)Annual Renewable Water Supply per Person

(Source: WRI, Projections for 2025)

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Water risk filter

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Aqueduct

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Carbon Disclosure ProjectWater Disclosure

• Parallel to carbon disclosure• Focus on investment community

– Disclosure of risks– Opportunities for business

• Detailed questionnaire– uses– discharge– risk– strategic

– condition– recycle– opportunity– management DRAFT

• Standardize sustainability reporting• Example water reports

– EN 8 water withdrawal by source– EN 9 water sources affected by withdrawal– EN 10 water recycled/reused– EN 21 water discharged (quantity, quality,

destination)– EN 23 impact of spills– EN 25 biodiversity of water bodies– EN 28 fines

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ISO 14046 Water Footprint• Parallel to carbon footprint• Consistent with life cycle

assessment• “footprint” with weighting factors to

produce “score”• Under developmentDRAFT

Alliance for Water Stewardship• Certification program• Initiated by multi stakeholder groups

of global NGOs• Parallel to FSC, MSC certification• Focus on industry• Builds a regional efforts by EWP

and WSI• Elaborate stakeholder input• Under development

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Conclusions• Water is important to business• Many tools, different uses• Focus metrics/framework on

objective• Key is response strategies

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Innovation DayChemical Heritage Foundation

For more information contact:

Paul L. Freedman President

LimnoTech(www.limno.com)

501 Avis DriveAnn Arbor, MI 48108

734-332-1200pfreeman@limno.com

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