Aqueduct CDP Corporate Water Disclosure Webinar (8 May 2013)

Aqueduct for Corporate Water DisclosureMay 8 2013, 11:00am - 12:00pm EST

Paul Reig, WRI Aqueduct

Cate Lamb, CDP Water

HOW TO SUBMIT QUESTIONS

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AGENDA

The Aqueduct Project – Paul Reig

Aqueduct for Corporate Water Management – Paul Reig

Corporate Water Disclosure – Cate Lamb

CDP Water 2013 Questionnaire – Cate Lamb & Paul Reig

Q&A

AQUEDUCT PROJECTCORPORATE WATER MANAGEMENT

Paul Reig, WRI Aqueduct

WATER SUPPLY CRISES RISK TOPS IMPACT AND LIKELIHOOD

Photo: flickr/r~p~m

Source: National Geographic

Photo: flickr/zen

WATER RISKS TO: GOVERNMENTSCOMPANIES INVESTORS

DETAILED, COMPARABLE, GLOBALWATER RISK INFORMATION

Photo: NASA

MAPPING: GLOBAL WATER RISKS

UNDERSTANDING RISK: AQUEDUCT FRAMEWORK

Baseline water stress

Inter-annual variability

Seasonal variability

Flood occurrence

Drought severity

Upstream storage

Groundwater stress

Physical Risk:QUANTITY

Overall Water Risk

Media coverage

Access to water

Threatened amphibians

Regulatory &Reputational Risk

Return flow ratio

Upstream protected land

Physical Risk:QUALITY

OPEN WEB PLATFORM

AQUEDUCT: MEASURING EXPOSURE TO WATER RISK

1• Select Weights

2• Import locations

3• Export results

GO TO:

(1) SELECT WEIGHTS

(2) IMPORT LOCATIONS

(2) IMPORT LOCATIONS

(2) IMPORT LOCATIONS

(2) IMPORT LOCATIONS

(2) IMPORT LOCATIONS

(3) EXPORT RESULTS

(3) EXPORT RESULTS

AQUEDUCT: CORPORATE WATER MANAGEMENT

Sources: WBCSD (2012) Water For Business Version 3

CORPORATE WATER DISCLOSURE

Cate Lamb, CDP Water

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Global water crises

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To catalyse action on corporate water stewardship to safeguard precious water resources

Vision, CDP Water Program

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Investor interest in water is rising

CDP’s Water Signatories CDP’s Water Signatories Assets

Water 2013

530 investor signatories

US$57 trillion in assets

What do your investors and customers want to know?

Would interuption in the supply of good quality water result in substantive interuption to your business?

Are any of your critical suppliers or business inputs exposed to water risks?

How confident are you that you will have access to the quantity and quality of water required to operate now and in the future?

How resilient is your business in the face of water challenges?

Questionnaire sent to 1,039 companies in 2013

Companies outside these sectors and regions are welcome to respond voluntarily; to register email [email protected]

Targeted industry sectors include: •apparel•chemicals• food & beverage•metals & mining•oil & gas•pharmaceuticals•power generation•semiconductors

Global 500

ASX 100JSE

100

S&P 500

CDP WATER 2013 QUESTIONNAIRE

Cate Lamb, CDP Water

Paul Reig, WRI Aqueduct

2013 Water Questionnaire

Water management & governance

Risks & opportunities

Water accounting

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2.1 Are any of your operations located in water-stressed regions?

2.2 Are there other indicators (besides water stress) which you wish to report which help you to identify which of your operations are located in regions subject to water-related risk?

2.5 Do any of your key inputs or raw materials (excluding water) come from regions subject to water-related risk?

Our questionnaire: Risk indicators

Country or region

River basin Risk IndicatorProportion of operations located in this region (%)

Further comments

Country drop down list

Other: text box

River Basin drop down list

Not knownOther: text box

FloodingPoor water qualityTightening of regulationsPoor enforcement of

regulationsInadequate water

infrastructureInadequate access to water

and sanitation Other: text box

01-10 11-2021-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100

[plain text entry: 2400 characters]

Add Row

QUESTION 2.1: WATER-STRESSED REGIONS

QUESTIONS (2.2) (2.5): WATER-RELATED RISK

Physical Risks – Quantity Physical Risks – Quality Regulatory & Reputational Risks

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3.1 Is your company exposed to water-related risks (current or future) that have the potential to generate a substantive change in your business operation, revenue or expenditure?

Our questionnaire: Risk assessment

Substantive change

What constitutes a substantive change will vary between companies.

(a) the proportion of business units affected; (b) the size of the impact on those business units, and

(c) the potential for shareholder or customer concern.

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3.1a Please describe (i) the current and/or future risks to your operations, (ii) the ways in which these risks affect or could affect your operations before taking action, (iii) the estimated timescale of these risks, and (iv) your current or proposed strategies for managing them.

Our questionnaire: Risk assessment

Country or region

River basinRisk type

Potential business impact

Estimated timescale (years)

Risk management strategies

Company-wideCountry drop

down listOther: text box

River Basin drop down list

Not knownOther: text box

1. Physical options2. Regulatory options3. Other options

[plain text entry: 2400 characters]

Current 1-5 6-1011-20 >20Unknown

[plain text entry: 2400 characters]

Add Row

QUESTIONS (3.1) AND (3.1A): CURRENT RISK

Physical Risks – Quantity Physical Risks – Quality Regulatory & Reputational Risks

QUESTIONS (3.1) AND (3.1A): FUTURE RISKS

PROJECTED CHANGE IN WATER STRESS

Consultation

Timeline

CDP 2013 Water Questionnaire

27 June: Deadline for corporations to submit their water response

October: Publicly disclosed data will be published on our website

The questionnaire is changing

Greater structure and logic Facilitate better disclosure Ease communication of the actions taken to increase resiliency to future water challenges Enable you to demonstrate a deeper understanding of water risks and opportunities

Scoring will be introduced

2014 private pilot with Global 500 companies only 2015 all responses will be scored

Changes are underway for 2014

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HOW TO SUBMIT QUESTIONS

If the viewing panel is minimized, press the orange arrow to expand it

To submit a question, write your question in this box and press ‘send’

Thank you for joining!

Contact us:

Paul Reig, [email protected]

Cate Lamb, [email protected]

wri.org/aqueduct cdproject.net