Water Futures                        PartnershiP:                        Working                        together          ...
ConTenTS      exeCUTive SUMMAry                                           011.0 PreFACe: WorKinG ToGeTHer    For A SeCUre ...
Executive summaryEnsuring thE availability of watEr to thosE                     to use the information gathered to gain a...
1.0Preface: workingtogether for asecure water futurewatEr futurEs is a partnErship bEtwEEn                               h...
“Water is neither consistently                “the notion of shared risk is                 “Our partnership follows an we...
2.0Water: shared risks         stin the 21 centurywatEr is a fundamEntal sharEd rEsourcE                                  ...
Over the last twelve months saBmillerhas improved its own water efficiencyby 4% per litre of beer produced.as water scarci...
any issues identified. since its introduction in 2007,      actions and engaging with governing bodies that WWFsaBmiller h...
FiGURe 1: SABMiLLeR 5R WATeR MODeL                                               ECOLOGY                                  ...
3.0Collective solutions:the Water FuturesPartnershipthis partnErship will succEEd if it is ablE                 organisati...
FiGURe 2: The WATeR FUTUReS PARTneRShiP APPROAch   PhaSE 1                                   PhaSE 2                      ...
4.0An evolvingmethodology                                                            it is also important to note that the...
Developing and understanding a water footprintwill not make any difference on the groundunless it is translated into pract...
For crop production, the grey water is more complex.        4.3 Translating theory into action: the risksintensive agricul...
tanzania, katavi National ParkPhotography by National Geographic.14
5.0Case studiesEach of these countries arefacing different water relatedissues, are at different levelsof economic develop...
5.1 PeruKeY BeeR BRAnDS                         PRODUcTiOn OUTPUT (MiLLiOn LiTReS)                                        ...
neT WATeR FOOTPRinT BY PRODUcT TYPe (excLUDinG GReY WATeR)BeeR       61                                     122           ...
5.1 PeruWater resources in Peru                                                       was especially the case for operatio...
a brewery worker packs crates of cristal, Peru’s leading beer brandproduced by Backus; saBmiller’s brewing operation in Pe...
5.2 TanzaniaKeY BeeR BRAnDS                        PRODUcTiOn OUTPUT (MiLLiOn LiTReS)                                     ...
neT WATeR FOOTPRinT BY PRODUcT TYPe (excLUDinG GReY WATeR)BeeR       180LitrEs PEr LitrEOF PrODuctneT WATeR FOOTPRinT (exc...
5.2 TanzaniaWater resources in Tanzania                                           are at least as efficient as the new fac...
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
Sab miller water futures working together for a secure water future
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Sab miller water futures working together for a secure water future

  1. 1. Water Futures PartnershiP: Working together For a secure Water FutureWaterFuturesWorking together Fora secure Water Future
  2. 2. ConTenTS exeCUTive SUMMAry 011.0 PreFACe: WorKinG ToGeTHer For A SeCUre WATer FUTUre 021.1 Water is a valuable resource 021.2 A global problem which needs local solutions 021.3 Taking an innovative partnership approach 021.4 Using a holistic and robust methodology 031.5 A shared commitment and vision 032.0 WATer: SHAreD riSKS in THe 21ST CenTUry 042.1 Understanding the issues 042.2 Recognising the shared risks 042.3 SABMiller’s approach to water management 052.4 WWF’s strategy to conserve and protect water resources 062.5 GTZ: meeting policy and development goals 063.0 ColleCTive SolUTionS: THe WATer FUTUreS PArTnerSHiP 083.1 A history of collaboration on water issues 083.2 Water Futures: a 21st century partnership 083.3 What is the Partnership doing? 094.0 An evolvinG MeTHoDoloGy 104.1 Recap: what is water footprinting? 104.2 An evolving and transparent methodology 124.3 Translating theory into action: the risks of water footprints 135.0 CASe STUDieS 155.1 Peru 165.2 Tanzania 205.3 Ukraine 245.4 South Africa 286.0 leSSonS AnD iMPliCATionS 326.1 How do the footprints compare? 326.2 What does this mean? 347.0 SeCUrinG oUr WATer FUTUre 367.1 Realising the value of partnership 367.2 The future of Water Futures 36About SABMiller plc: One of the world’s largest brewers, SABMiller Deutsche Gesellschaft für Technische Zusammenarbeithas brewing interests and distribution agreements across six (GTZ) GmbH: The federally owned GTZ, an international co-operationcontinents. Our wide portfolio of brands includes premium enterprise for sustainable development with worldwide operations,international beers such as Pilsner Urquell, Peroni Nastro Azzurro, supports the German government in achieving its developmentMiller Genuine Draft and Grolsch along with leading local brands objectives. GTZ provides viable, forward-looking solutions forsuch as Aguila, Castle, Miller Lite, Snow and Tyskie. We are also political, economic, ecological and social developmentone of the world’s largest bottlers of Coca-Cola products. In 2010 in a globalised world. Sometimes working under difficultour group revenue was US$26,350 million with lager production of conditions, GTZ promotes complex reforms and change processes.213 million hectolitres. Its corporate objective is to improve people’s living conditions on a sustainable basis.About WWF-UK: We’re the world’s leading independent conservation About this report: While this document has been co-authored andorganisation. We’re creating solutions to the most serious jointly released by SABMiller plc, WWF-UK and GTZ, this does notconservation challenges facing the planet, building a future where imply that the organisations approve of, or support, the activitiespeople and nature thrive together. The sustainable use of fresh water and/or views that the others may have on other issues outside theis one such challenge - so we develop concepts, tools and approaches scope of this report.for the private sector that address business risk through betterstewardship of water resources.
  3. 3. Executive summaryEnsuring thE availability of watEr to thosE to use the information gathered to gain a better under-who nEEd it is arguably onE of thE world’s standing of how water is used within the value chain.most prEssing issuEs. it is likEly that this in all cases the vast majority of water used relates towill bEcomE EvEn morE so as populations the cultivation of raw crops (over 90% in all cases),arE prEdictEd to grow, thE way wE usE land although there is some variation between countrieschangEs and thE impact of climatE changE in terms of how much of this water relates to cropsbEcomEs morE apparEnt. grown in country and imported produce. arguably, as this element of the water footprint is not directlyclearly, the potential economic, societal and develop- under saBmiller’s control, it is the most challenging tomental effects of this are profound, but because the address, but it supports the business’s aim to encourageimpacts of water scarcity are often felt locally and grad- enterprise development and work closely with localually, the response of governments is often fragmented suppliers to promote better farming practices, includingand weak. this means that the responsibility to address water stewardship.shared risks arising from the unsustainable manage-ment of water increasingly falls to local stakeholders. the quantification of the grey water footprint (a measure of water pollution associated with the produc-in many ways this makes sense, as the risks facing tion of products, rather than water consumed to makethe local community, businesses and ecosystems are them), is problematic as the methodology remainsoften unique and require local knowledge and insight in its early stages of development. Because of thisto tackle them. as a consequence, local problems are uncertainty it is excluded from the top level water foot-usually best solved by local stakeholders working print numbers, although we include it in this report fortogether to deliver meaningful change on the ground. completeness and transparency. However, even allowingrecognising this, saBmiller, WWF and GtZ have for these limitations, it is clear that in some places, suchjoined forces to create the Water Futures partnership. as Peru and ukraine, the amount of grey water is signifi-this partnership aims to facilitate local action, whilst cant and that the role of agricultural practices within aproving the business case for private sector engagement region has a far greater impact than previously thought.in promoting the sustainable management of water Whilst saBmiller has continued to devote signifi-resources and sharing the lessons learnt. cant management time and resources to improve theOver the past year, the three partners have worked water efficiency of the breweries and bottling plants ittogether in Peru, tanzania, ukraine and south africa operates, which it has done with some success in theto begin this process, building on work undertaken by countries covered within this report, the Water FuturessaBmiller and WWF in the czech republic and south partnership has facilitated a wider discussion with localafrica in 2008*. in each country detailed water foot- stakeholders to look beyond the boundaries of its ownprints have been undertaken to provide greater insight operations.and an in-depth understanding of the risks faced. With in each country covered by this report, workshops havethis knowledge, the partnership has been able to draw been held with NGOs, government representatives, localtogether relevant local stakeholders to develop a shared businesses and others stakeholders to begin developingapproach to tackle issues that have emerged. detailed watershed protection programmes based on thethe findings of these footprints, including a quantifi- assessment of the risks identified though this work. itcation of the water used throughout saBmiller’s value is the translation of this theory into practice that willchain from crop production to distribution of products, make a change in those communities that really need it.are presented within this report, along with a summary Over the coming months the Water Futures partner-of the key risks identified in each country. ship will continue to engage with stakeholders in Peru,the results show considerable variation between the tanzania, ukraine and south africa. We recognise this isfootprints – ranging from 61 litres of water per litre of just the first step in a longer process, but it is one whichbeer produced in Peru to 180 litres per litre in tanzania. may provide benefits many times greater if, throughthe variation clearly illustrates the impact of local working together, we are able to secure a water futurefactors at play on water consumed within saBmiller’s for those areas most at risk.value chain. it is for this reason that we do not think it isuseful to compare this figure directly between countries * saBmiller and WWF. Water Footprinting: identifying and addressing wateror even regions to gauge the relative impact, but rather risks in the value chain (2009). ExEcutivE summary 01
  4. 4. 1.0Preface: workingtogether for asecure water futurewatEr futurEs is a partnErship bEtwEEn harness the scale and expertise of global organisa-sabmillEr, wwf and gtZ which aims to tions, whilst enabling specific local water issues toprotEct watErshEds critical to sabmillEr’s be identified and for local stakeholders to be drawnopErations and supply chains, and to together to address them. We believe that local waterstrEngthEn thE rolE of thE privatE sEctor challenges are usually best solved in partnership within promoting thE sustainablE managEmEnt NGOs, local governments, communities and otherof watEr rEsourcEs and sharing thE local businesses.lEssons lEarnt. 1.3 Taking an innovative partnership approach1.1 Water is a valuable resource recognising this, in November 2009 the Water FuturesEconomic development combined with population Partnership was launched between saBmiller, WWF andgrowth means that we are consuming more water GtZ (acting on behalf of the Federal German ministry ofthan ever before. in areas where water is plentiful this Economic co-operation and Development).may not be a pressing issue but there are parts of theworld where this is not the case and its availability is Water Futures aims to prove the business case fora significant issue for the people, business and ecosys- private sector engagement in promoting the sustainabletems. Water is a valuable resource, but in many cases it management of water resources. this case will be builtis poorly managed. on an assessment of water risks throughout saBmiller’s value chain and an appreciation of how to mitigate thesea recent study undertaken by the 2030 Water resources risks. the partnership seeks to share the lessons learntGroup1, of which saBmiller is a member and which was throughout the business’s global operations with otheradvised by WWF, found that there could be a potential stakeholders to promote better water stewardship. theshortfall of 40%, in water resources available across the fundamental concept underpinning the partnershipworld by 2030. according to the united Nations2, water is that a lack of water security presents risks that arescarcity affects every continent and almost one fifth of shared by the business, other water users, ecosystemsthe world’s population live in areas of physical scarcity. and governments.WWF’s Living Planet report3 has shown that freshwaterbiodiversity is in rapid decline across the world. WWF and saBmiller have previously worked together to address water issues in countries such as colombia,1.2 A global problem which needs local solutions Honduras and south africa. the creation of this globalthis, and other research, suggests that water is truly partnership, and the welcome inclusion of GtZ, stemsa global problem. However, the factors that contribute from an understanding that even though our motiva-to the issue, such as local climate and geography, are tions may be different, each of our organisations is ableoften unique to a specific region or country. to tackle to bring unique skills and competencies required tothis issue therefore requires an approach that can address these issues. almost a year on, the three partners are collaborating1. 2030 Water resources Group. charting Our Water Future: Economic in Peru, tanzania, south africa and ukraine. this frameworks to inform decision-making (2009). report provides a summary of what we have achieved,2. www.un.org/waterforlifedecade/scarcity how the partnership is using techniques, such as water3. WWF. Living Planet report 2008 (2008).02
  5. 5. “Water is neither consistently “the notion of shared risk is “Our partnership follows an well managed nor appropriately increasingly seen as a critical innovative and participatory valued globally. this has led element underpinning responses approach to sustainably manage to a crucial shared resource to the global water crisis. water resources. this should becoming a shared risk for it suggests that businesses, equally benefit the entire governments, businesses and motivated by enlightened population, the environment and populations across many areas self-interest, can contribute production processes. moreover, of the world. if this situation to, and benefit from, collective we strive for an improved doesn’t change then conflicts efforts to better manage water responsiveness to adapt to over water rights are inevitable. resources and safeguard the climate change. We see our We believe that collaboration freshwater ecosystems upon role in facilitating this dynamic between business, governments which we all depend.” dialogue among all stakeholders and NGOs is the only way to David Nussbaum, chief Executive of WWF – uk concerned.” tackle this.” andreas kanzler, Head of Water section GtZ - Gesellschaft für technischeGraham mackay, chief Executive of saBmiller Zusammenarbeit GmbHfootprinting, to identify the significant water issues of the work we are doing (hence the publication of thisin these countries, and the work we are doing with report), which in turn may help to inform policy orlocal stakeholders to develop a shared approach to inspire action from our peers and other stakeholders.tackling them. 1.5 A shared commitment and vision1.4 Using a holistic and robust methodology it is early days in the development of this partner-the Water Futures partnership relies on a clear under- ship, but progress so far has been positive. throughstanding of the issues and challenges faced by each set our work we hope to make a contribution to the devel-of stakeholders potentially at risk. opment of the water footprinting methodology and demonstrate its practical application in helping toin the report ‘Water footprinting: identifying and understand water-related risks. moreover, the Wateraddressing water risks in the value chain’ published in Futures partnership aims to promote private sector2009, saBmiller and WWF showed how this technique water stewardship, which goes beyond simple waterhad highlighted key issues for two of the company’s efficiency measures and addresses risks throughoutoperations in south africa and czech republic. Over the value chain and promotes better water resourcethe past twelve months we have refined and extended management at the river basin scale.our thinking in this area. Besides influencing the water debate, change will alsoWater footprinting looks at each element of saBmiller’s be driven within the three partners. WWF will makevalue chain, from crop production to product distribu- use of the lessons learnt for its work on private sectortion, to help understand the water dependencies and water stewardship, including other partnerships;vulnerabilities and identify the key water risks for the GtZ will disseminate the information amongst itsbusiness, surrounding communities and the environ- water management projects in developing countries;ment. crucially, starting from the ground up enables and saBmiller will use what it has learnt from Peru,us to develop a much more in-depth understanding tanzania, south africa and ukraine within its subsid-of the issues and consequently take the first step in iaries in other countries.addressing them. We are proud to be working together and hope that theBut addressing shared water risks won’t be solved insight provided in this report will encourage others tosimply by producing a number of water footprint take action to reduce the potential of water scarcity instudies. Other activities to date, or planned, include the regions and countries most at risk. Where there areworkshops to engage key local stakeholders in order shared opportunities in the same watersheds, we willto ensure that we have full understanding of the be looking to collaborate with other partners to helplocal issues around water scarcity. We are under- protect this shared resource.taking more detailed watershed assessments todelve into the risks in local river basins. and we arebuilding business cases for saBmiller subsidiaries toconsider investing in better water management withinthose basins. at a global level, we are able to inform theevolving debate on water by providing clear examples PrEFacE: WOrkiNG tOGEtHEr FOr a sEcurE WatEr FuturE 03
  6. 6. 2.0Water: shared risks stin the 21 centurywatEr is a fundamEntal sharEd rEsourcE ecosystems in coastal areas. semi-arid and arid areasfor communitiEs, agriculturE, businEss – for example, around the mediterranean, western usaand govErnmEnt. damagE to EcosystEms and southern africa – are particularly exposed to thefrom thE ovEr abstraction and pollution impacts of climate change on freshwater.8 according toof watEr rEsourcEs has far-rEaching the uN’s World Water Development report9, almost halfconsEquEncEs, thE EffEcts of which arE the world’s population will live in areas of high waterdifficult to rEvErsE. thE situation posEs stress by 2030 as a result of climate change. Of course,sharEd risks to businEss, govErnmEnt and a shortage of water will also have a significant impactcivil sociEty and collEctivE solutions on the local ecology and biodiversity of an area.will bE nEEdEd to managE thEm. the 2030 Water resources Group, formed to contribute new insights into the issue of water scarcity, advised2.1 Understanding the issues by WWF and with members including saBmiller,unlike fossil fuels, water has no substitutes or alter- mckinsey, the international Finance corporation andnatives. the way that water is currently managed in a consortium of business partners, concluded thatmany countries around the world is simply unsustain- competing demands for scarce water resources mayable, based on current projections and research. lead to a global 40% shortage by 203010.Global population growth is set to rise from 6.7 billion this research points to a significant issue in thetoday to over 9 billion in 2050 4. this expansion in coming years. However, whilst the potential economic,population will place a higher demand on resources social and developmental effects are profound, theavailable, particularly for agriculture and the provi- political impacts of water scarcity are both gradual andsion of food. currently, it is estimated that over 70% local, so governmental responses are often weak andof global fresh-water withdrawals are used for this fragmented. WWF often describes water scarcity as anpurpose. in some countries this can reach 90%5. ‘invisible event’.a further complication is that freshwater is not distrib- the potential water crisis ultimately comes down touted evenly across the globe – nine countries6 account the unsustainable management of water resources in afor 60% of global freshwater – while within countries rapidly changing world, where demand is increasing,there are often significant variations in regional rain- supply is decreasing and land use is changing. it isfall levels.7 if anything, the impact of climate change is down to individual consumers and companies to takelikely to increase both variability and unpredictability. responsibility to use water more sustainably, and formore than one-sixth of the world’s population live in governments to manage water resources appropriatelyglacier or snowmelt-fed river basins and will be affected within river basins. then, and only then, will sharedby the seasonal shift in streamflow, an increase in the water risks be significantly decreased.ratio of winter to annual flows, and possibly the reduc-tion in low flows caused by decreased glacier extent or 2.2 Recognising the shared riskssnow water storage. at the same time, sea-level rises For many businesses, particularly those such as saBmillerattributable to climate change will extend areas of who have operations across the world, issues of watersalinisation of groundwater and estuaries, resulting in scarcity are becoming increasingly relevant to theira decrease in freshwater availability for humans and activities, especially as water use touches almost all parts4. uN. World Population Prospects: the 2008 revision (2009). of the value chain, albeit with varying degrees of intensity.5. World Economic Forum Water initiative. the bubble is close to bursting (2009). 8 .contribution of Working Group ii to the Fourth assesment report6. Brazil, russia, china, canada, indonesia, usa, india, colombia and of intergovernment Panel on climate change (2009). the Democratic republic of congo. 9. uN. 3rd uN World Water Development report (2009).7. WBcsD. Facts and trends: Water (version 2) (2009). 10. 2030 Water resources Group. charting our Water Future (2009).04
  7. 7. Over the last twelve months saBmillerhas improved its own water efficiencyby 4% per litre of beer produced.as water scarcity becomes more visible then so does the 2.3 SABMiller’s approach to water managementlevel of risk faced by these businesses. risks may relate Water scarcity represents a potentially significant riskto physical shortages limiting production; competition to parts of saBmiller’s business, as well as to some offor resources, which may lead to increased costs or the communities in which it operates.difficulties obtaining water as stakeholders compete for as these issues cross community and national bound-rights; and issues around water quality in areas that aries and involve interdependent factors that canare subject to physical change (for example, increased vary from country to country and region to region, itrun off from growing agricultural areas). increasingly, follows that they cannot simply be managed within thelegislation is playing a more important role too as some confines of saBmiller’s own operations. as a result, thegovernments seek to address this issue through legis- business has invested significant management time atlative means, such as by imposing water allocations, both local and group level to understand the challengesgreater taxation and various pricing mechanisms. of water scarcity and quality and what they mightimportantly, there is a significant social dimension to mean for the business.the use of water. communities require water to fulfil ‘making more beer but using less water’ is one oftheir everyday needs whether this is for domestic saBmiller’s global focus areas for sustainable devel-purposes or, for example, growing crops. in some opment, and one of its ten sustainable developmentcases, failure to address perceptions that water scarcity priorities11. saBmiller’s approach to water manage-is the result of business activity can damage corporate ment includes a strong target not only to improvereputation and relationships with the local community its own water efficiency, but also to protect theon which it may depend, for example, for their workers watersheds on which the business, farmers and localor for raw materials. communities depend.Businesses, particularly those with a high dependence saBmiller is a founding signatory of the uN cEOon water, have a significant role to play in addressing Water mandate, an initiative to help companies in thethe water scarcity challenge. they can use their development, implementation and disclosure of waterappreciation of risk, their leverage and their existing sustainability policies and practices. it is also a memberrelationships with government to mobilise partner- of the World Economic Forum Water Project and theships within the public sector and civil society to make Water Footprinting Network.water management more sustainable for the benefitof all. Being aware of and understanding the water saBmiller has developed a water strategy basedchallenges they face allows businesses to make better on the 5rs (protect, reduce, reuse, recycle andmanagement decisions and provides the platform to redistribute), a comprehensive, risk-based approach toengage with a broader set of stakeholders to address managing water in its business and in the value chain.issues outside their direct sphere of influence. this model provides a consistent approach, regardless of the local issues and circumstances facing their busi-recent debates have focused on the potential role nesses around the world.of the private sector as water stewards. this notionof water stewardship implies that companies, out of in 2009/10, saBmiller used 72,200 million litres ofenlightened self-interest, need to build on improve- water in its own production processes to produce beer.ments to in-house water efficiency and start to engage the business has set a demanding target to reduceexternal stakeholders in order to reduce business risk water use per litre of beer by 25% between 2008 andfrom water scarcity and pollution. in particular, the 2015. this equates to an average water consumptionwater stewardship paradigm implies that companies of 3.5 litres per litre of beer and the latest figures forshould engage with suppliers (e.g. of agricultural the last financial year showed that the average figurecommodities such as barley, maize or sugar cane) to was 4.3 litres, a 4% improvement on the previoussupport increased water efficiency at the farm level. it 12 months.also suggests that companies should engage a broader the business utilises a watershed mapping tool whichrange of stakeholders, including government, to uses quantitative global data to evaluate the long-termpromote improved water efficiency at the river basin water availability for each of its operations. From thisscale as a means of ensuring that any water savings data, the business can assess the risks associated withwithin the business or the supply chain contribute to specific operations to focus on the areas of greatestaquifer and river recharge (and hence to reductions in need, and develop local, tailored strategies to deal withshared water scarcity risks). 11. For more information see www.sabmiller.com/sustainabledevelopment WatEr: sHarED risks iN tHE 21st cENtury 05
  8. 8. any issues identified. since its introduction in 2007, actions and engaging with governing bodies that WWFsaBmiller has evaluated all of its operations in can help improve policy and institutional capacity, andthis way. ultimately, reduce shared water risks.Following this analysis, detailed water footprints have the Water Futures Partnership is taking an innovativebeen undertaken in south africa, the czech republic, approach to try to better understand the water-relatedPeru, tanzania and ukraine to get a better under- risks facing saBmiller subsidiaries, and then makestanding of the key water issues each operation faces. the business case for an appropriate water steward-the development of the Water Futures Partnership ship response to mitigate these risks at the local level.with WWF and GtZ has been a major enabling factor in WWF brings to the partnership its thought leadershipallowing this to happen. on shared water risk, a wealth of experience in river Basin management and local capacity to help deliverOther saBmiller subsidiaries and joint ventures around the partnership benefits in each of the four countries.the world have extensive watershed programmesin addition to those presented in this report. these 2.5 GTZ: meeting policy and development goalsinclude aquifer recharge projects in india and working tackling issues of water scarcity, as well as accesswith barley farmers to improve irrigation efficiency to water and sanitation, is a key part of the Federalin the united states. For further information on these German Government’s development agenda. as such,wider activities see www.sabmiller.com. Germany plays a leading role in promoting water for peace through its support of trans-boundary co-oper-2.4 WWF’s strategy to conserve and protect ation, particularly in south-East Europe, africa andwater resources central asia. Germany also strongly promotes theWater presents real and prevalent obstacles for compa- recognition of access to water and sanitation throughnies now and in the near future, and company risk at its engagement with the uN Human rights council.a river basin level implies that other users are likely Germany is one of the world’s largest donors in waterto be at risk too – namely ecosystems, other busi- and sanitation and the largest donor in africa.nesses, communities and governments. this is theconcept of shared water risk. identifying government GtZ works as the implementing organisation for tech-and company shared risk enables these parties to find nical co-operation on behalf of the Federal Germancommon ground in the urgent need to manage water ministry of Economic co-operation and Development.effectively, equitably and sustainably. in the water sector, GtZ provides advice to govern- ments in designing their water policy and governanceWWF’s Water stewardship vision is of a private sector framework to support water sector reforms, includingfully engaged in efforts to secure water for people and regulation. GtZ also provides advice on sustain-nature. the focus is on getting companies to recognise able water supply and sanitation, the developmentand take responsibility for their role in managing fresh- of effective tools and processes for water resourceswater within the wider water cycle, and integrating the management, as well as adaptation of and mitigation toprinciples of good stewardship into their core business climate change and its impacts.activities. they will achieve this by taking responsi-bility for reducing the impacts of their own water use, GtZ has broad experience in working with privatetaking voluntary action to conserve freshwater ecosys- sector companies, particularly those working directlytems, and participating in constructive public policy in the water sector but increasingly those outside thedialogue to improve water resource management. sector, such as saBmiller.Water stewardship is about guiding key companies, through the Water Futures Partnership, GtZ aimsboth water users and investors, on a journey toward to showcase the importance of sustainable waterbetter river basin governance, where water is allocated management for businesses and to communicate thisappropriately taking all stakeholders into account. learning and insight to support further thinking andcompanies must first focus on how the water footprints development in this field. through participation in thisof their operations and supply chains can improve and innovative partnership, GtZ supports the promotion ofidentify those that are vulnerable to risk but crucially the water footprinting methodology and its growingalso understand the context of where they directly significance in the context of sustainable water usage.and indirectly operate. understanding impacts will be Furthermore, the partnership highlights the impor-important; along with reducing costs and some direct tance of local partnerships for improved sustainablewater risk; this will help insure their social licence to watershed management approaches, especially in wateroperate and give them credibility to begin to approach stressed regions. in this context, GtZ acts as technicalother water users. But only by linking water depen- advisor and facilitator for multi-stakeholder dialoguesdency in social and environmental contexts will WWF that enable collective action for sustainable waterbe able to positively align corporate agendas with management at local level.protecting river basins. it is through multi-stakeholder06
  9. 9. FiGURe 1: SABMiLLeR 5R WATeR MODeL ECOLOGY PROTECT influence farmers to ensure responsible water use and understand the watersheds within which we operate breweries and bottling plants. Where appropriate replenish water resources through rainwater harvesting and groundwater recharge. BREWERYthe ‘5 Rs’ enableeach of saBmiller’soperations around the REDUCE RE-USE RECYCLE Reduce: Employ new processes and changeworld to focus on specific behaviour to reduce water consumption in our plants whilst achieving the same highissues upstream, quality of product.downstream and within Re-use: collect waste water streams within facilities and re-use appropriately.our operations Recycle: investigate and employ new technologies to recycle later for appropriate use within the plant. COMMUNITY REDISTRIBUTE Redistribute: Provide local communities with clean water through community investment programmes and treat waste water so it can be used for irrigation or other purposes. WatEr: sHarED risks iN tHE 21st cENtury 07
  10. 10. 3.0Collective solutions:the Water FuturesPartnershipthis partnErship will succEEd if it is ablE organisations conducted detailed projects in colombia,to assEss and rEducE sharEd watEr risks Honduras and El salvador, trying to address unsustain-by strEngthEning watEr stEwardship able agricultural practices of upstream farmers causingand govErnancE in spEcific watErshEds water quality problems, and detailed water footprintingin thE four focus countriEs: south africa, studies in south africa and czech republic.tanZania, ukrainE and pEru. the latter work resulted in the publication of a report12 launched at World Water Week in september 2009,3.1 A history of collaboration on water issues which showed how an understanding of the specificEfforts at managing water resources to counter the and local water issues facing an area can be translatedpressures of water scarcity and reconcile conflicting – through working in partnerships with local stake-demands have met with relatively little success. For holders – into tangible actions on the ground.many governments, there remains a reluctance toelevate water management to a priority either because 3.2 Water Futures: a 21st century partnershipthe issues appear too intractable, because there is a Building on the success of this collaboration andbelief that, somehow, sufficient quantities of water will recognising a shared vision of the benefits that couldalways be available, and/or because water management be achieved by formalising this collaboration, thedoes not rank as highly as other development goals. Water Futures global partnership was established inHowever, a number of international governmental November 2009 together with GtZ.organisations, NGOs and businesses – either indi- the Partnership aims to utilise innovative watervidually or collectively – have begun to highlight management to:the importance of identifying these challenges andhow they might be addressed. For example, the uN • Examine all aspects of the saBmiller supply chain,Global compact’s cEO Water mandate and the World based on insights into both business and conserva-Economic Forum have helped to catalyse debate while tion risks, and identifying risk hotspotsorganisations such as the Water Footprint Network • Deliver measurable conservation impacts through(WFN) and the alliance for Water stewardship (aWs) improved policy for, and management of, freshwaterhave been established to assess the scale of the prob- ecosystemslems and set standards around water use. saBmiller,WWF and GtZ are all actively involved in most, if not • share best practice between saBmiller operationsall, of these initiatives. around the world to provide technical support on common issues and enable knowledge exchangeinternational initiatives have played an important rolein establishing a momentum to encourage organisa- • share lessons with other stakeholders at the globaltions, particularly companies, to address their water level with a view to promoting better management ofrisks. However, there are few initiatives underway to water across the worldunderstand these issues at a local level in areas of high For saBmiller, water is a vital resource for the brewingrisk and to put in place effective plans to address them. process. Water scarcity presents a series of risks toOver recent years, saBmiller, WWF and others have 12. Water footprinting: identifying and addressing water risks in theworked together to try and fill this gap. the two value chain (2009).08
  11. 11. FiGURe 2: The WATeR FUTUReS PARTneRShiP APPROAch PhaSE 1 PhaSE 2 PhaSE 3 Assessment and planning Mobilising stakeholders Promoting wider change • use water footprinting • the agreement of the local • the partnership aims to techniques to assess the water partners to implement the provide significant evidence dependencies of saBmiller’s risk mitigation plan will help based on case studies, operations and value chains. secure commitment and methodologies and tools resources. developed to feed into global • select high-risk watersheds policy dialogues through initia- containing existing and • the parties will focus on the tives such as the uN Global future shared water risks and implementation of the plan to compact cEO Water mandate, examine how these risks can secure tangible reductions in Water Footprint Network, be mitigated. the water risks. alliance for Water stewardship, • Where a business case has and World Economic Forum been agreed, the local Water initiative. saBmiller business, WWF and GtZ will sign a partnership agreement to develop a risk mitigation plan.the business, to local communities and to ecosystems. 3.3 What is the Partnership doing?Working in partnership allows access to the knowl- since its inception, the Partnership has focused onedge and insight of partners working on the ground water resources in four countries: south africa,in areas most at risk. the partners can also facilitate tanzania, ukraine and Peru. Each of these countries issaBmiller’s engagement with local community-based facing different issues, with different levels of economicand government stakeholders. in turn this will development, different land use and different climates.provide a much deeper understanding of the business the work underway in each country has essentiallyrisks arising from the increasing demands placed on three phases, beginning with an understanding ofthis vital natural resource – and, crucially, how they the specific issues that need to be addressed, thenmight be addressed. specifically, saBmiller will gain mobilising local stakeholders to work together toa much clearer appreciation of the long-term avail- find implementable solutions and, finally, sharingability, quality and cost of water in its operations and findings and learning from this work with observerssupply chains. and other interested bodies. Further informationWWF wants to ensure that water resources and ecosys- on the detailed findings of this work in each countrytems attached to them are protected and conserved, can be found in the case study section from page 15and to find ways in which companies can benefit in of this report.moving from business models that are environmentally in the medium to longer term, the aim is to involveunsound to approaches that actively promote sustain- more companies to collaborate with each other andability. saBmiller is already on this journey with other stakeholders on these issues. should thisambitious targets in place to improve its water effi- happen, benefits would include far greater privateciency. WWF is able to harness the scale and resources sector engagement in public policy processes, and theof the partnership to make a tangible contribution to private sector having increased confidence in govern-meeting its conservation aims, whilst using the voice of ments’ abilities to manage resources more effectivelythe Partnership to inform the water debate and inform and in ways less likely to pose risks to future invest-public policy. ments. additionally, it is hoped that the experiencesGtZ recognises the contribution water makes in devel- of collaborative action and the trust engenderedoping local economies and communities. in working in may have a positive influence on national, regionalpartnership with saBmiller and WWF it is meeting its and local government to strengthen policy deliverypublic-policy objectives as the development agency of and regulation.the German government.through this arrangement each partner is able toharness the scale and expertise of all parties to delivera much greater difference than if each party workedalone to achieve a secure water future. cOLLEctivE sOLutiONs: tHE WatEr FuturEs PartNErsHiP 09
  12. 12. 4.0An evolvingmethodology it is also important to note that the water footprintthE watEr futurEs partnErship has does not include the embedded water used in theworkEd togEthEr to dEvElop a bEttEr creation of the infrastructure associated with eachundErstanding of thE quantity, EfficiEncy stage in the process, such as the manufacture of anyand gEographical contExt of thE watEr machinery used.usEd to producE bEEr. in simple terms, the water footprint for saBmiller is broken into four stages: crop cultivation and imports,4.1 Recap: what is water footprinting? crop processing, brewing and bottling and wastethe concept of water footprinting was developed disposal. (see figure 3).as a way to look at the consumption of water for aparticular product or service. the Water Footprinting Within the water footprint three types of water areNetwork (WFN) defines a water footprint as: assessed: green water, blue water and grey water.“an indicator of freshwater use that looks at both direct • Blue water is withdrawn from groundwater andand indirect water use of a consumer or producer. surface water, and does not return to the system fromthe water footprint of an individual, community which it came.or business is defined as the total volume of fresh- • Green water is evaporated through crop growth thatwater that is used to produce the goods and services originates from soil moisture (from rainfall). thisconsumed by the individual or community or produced is relevant to agricultural products (barley, maizeby the business.” and hops for beer production). it is assumed thata water footprint can be calculated in a number of such a loss is not available to the area immediatelyways (for example, in terms of a particular product or downstream of where the crops are grown and it is,a group of consumers), but it is always geographically therefore, considered a water use.explicit. For example, a water footprint for a particular • Grey water refers to the volume of polluted waterproduct is not the same in south africa and tanzania, associated with the production of goods and services,as a water footprint takes into account a variety of quantified as the volume of water that is required tofactors that are location specific. it is for this reason dilute pollutants to such an extent that the qualitythat water footprints are only useful when interpreted of the ambient water remains above agreed waterin the context of the local surroundings and environ- quality standards. For crop production this would bement, and why any potential use of this information to the volume of dilution to reduce to agreed standardscompare the same products in different countries or nitrate and phosphate (fertiliser) levels and pesticideeven regions, such as on product labelling, is extremely levels leaching from soils.challenging and arguably has little meaning.in terms of the brewing process, the water footprintstarts with the cultivation of crops and continuesthrough to bottle recycling. it does not, however,include water use by consumers (for example, washingout a beer glass) as this is considered to be relativelyminimal in the context of the overall footprint andthere is very little existing data to estimate water usein this regard.10
  13. 13. FIGURE 3: ThE FOUR sTAGEs OF ThE sABMILLER WATER FOOTPRINT CROP CULTIvATION CULTIvaTIOn & ImPORTS Direct water used in growing crops Water used in manufacture of fertilizers Water related to the energy use of farm machinery Water related to the energy used for the transport of the crops to the crop processing facilities CROP IMPORTs Water used in growing and processing crops grown elsewhere Water related to the energy used in transport of these crops to country concerned CROP PROCEssING PROCESSIng raw materials (including the direct water and the water related to the transport of imported processed crops) Direct water use in processing plants Water related to the energy used in the processing of the crops Water related to the energy used in the transportation to the breweries and soft drinks bottling plants BREWING & BOTTLING BREwIng & BOTTLIng Direct water use Water used in manufacture of key raw materials (for example, the concentrate used in soft drinks) Water related to the energy used in the breweries/soft drinks bottling plants Water related to the energy related to transportation to the distribution centre Water related to packaging (including bottle labelling) 100% RECYCLED WAsTE dIsPOsAL Water used in the recycling of cans, bottles and kegs waSTE aN EvOLviNG mEtHODOLOGy 11
  14. 14. Developing and understanding a water footprintwill not make any difference on the groundunless it is translated into practical applicationsthat address the underlying problems.in simple terms, green and blue water can be thought • Net Green Water: as described previously, greenof as water that is consumed during a process, whereas water is effectively the evaporative loss of rainwatergrey water is a measure of water pollution – or an taken into crop roots through soil moisture. However,impact. also, the distinction between blue and green although the growth of crops increases evaporation,water is very important in terms of crop production there would still be a substantial evaporative demandgiven the increasing amount of irrigation used, as the from the land even if the crops were not cultivated,water for this tends to come from ground or surface through naturally occurring vegetation.water sources. • consequently, saBmiller has refined the footprintingthe water footprint for brewing beer contains all methodology to provide a “net” green water foot-three types of water. However, it would be infeasible to print – in other words, the difference between cropattempt to calculate all components for all activities, so, evaporation and natural evaporation. this approachfor some of the components in the production process provides, we believe, a more meaningful measure of(e.g. transportation, energy consumption, smaller how our operations impact directly and indirectlyquantities of raw materials), a virtual water foot- on water resources. the water footprints includedprint has been developed from literature and internet within this report are consequently reported onsources. this virtual (or “embedded”) water footprint a net basis.is effectively the total of green and blue and does not • Grey Water: the aim of including grey water is toinclude grey water. account for the impact of the pollution of water. However, this approach ignores the fact that natural4.2 An evolving and transparent methodology processes can clean up polluted water in someWhilst the broad principles of water footprinting are circumstances with relatively low levels of environ-well established, the precise details of the methodology mental and social impact.are under continual review as a result of new research.Organisations, such as the Water Footprinting Network • For the direct production of malt and beer, the grey(WFN), collate this emerging thinking in order to stan- water component is the dilution required to reducedardise the approach taken by different companies, but water discharged from each malting or brewerythere is inevitably some variation between methodolo- to appropriate national standards, or often moregies used. stringent standards set by saBmiller. the effluent is usually treated prior to discharge or treated atthe Water Futures Partnership has adopted an a municipal facility and, therefore, the grey waterapproach based on the business water footprint component may be zero.accounting methodology, developed by Gerbens-Leenesand Hoekstra (2008)13, which has been successfullyapplied to water footprints in south africa, czechrepublic, tanzania, Peru and ukraine. in the interestsof transparency, there are two aspects of this method-ology which require clarification:13. Gerbens-Leenes, P and Hoekstra, a.y. Business water footprint .W. accounting (2008).12
  15. 15. For crop production, the grey water is more complex. 4.3 Translating theory into action: the risksintensive agriculture has many impacts on water of water footprintsquality. these include leaching of chemicals from it is important to stress that whilst water footprintingfertilisers, pesticides and herbicides into water courses is a valuable tool it is not an end in itself. in our ‘Waterand direct run-off of water from fields that have been footprinting: identifying and addressing water risks intreated with fertilisers, herbicides and pesticides. the value chain’ report published in 2009, saBmiller and WWF argued that water footprints are not yetthe quantification of all these elements of the grey ready for use on product labels because of the naturalwater footprint is extremely difficult and requires an variability caused by a range of factors detailed in thatunderstanding of fertiliser/pesticide application rates, report. We remain convinced of that opinion.deep percolation rates through the soil, soil param-eters, surface run-off rates and many other parameters in some ways the actual water footprint number isat farm level, as well as access to robust data and not the key finding, rather it is the breakdown of thisconsiderable investment in time and resources. number across the value chain that provides the neces- sary insights. to set the range of numbers providedthe resulting uncertainty in calculating the grey in the following sections in context, analysis providedwater element of a water footprint, means that whilst by the Pacific institute suggests that beer has a rela-informative, it can be potentially misleading. For tively low water footprint per litre when compared withthis reason, grey water is excluded from the overall beverages such as coffee, wine and fruit juices14.water footprint as we focus on blue and green waterconsumed. Developing and understanding a water footprint will not make any difference on the ground unless part-However, we are continuing to review our approach ners and stakeholders develop practical responses thatto ensure a better understanding of grey water as the address the underlying problems.results of water footprints undertaken over the pastyear suggest that grey water may play a more funda-mental role in addressing water issues within thebrewing value chain than previously thought. 14. Pacific institute quoted in the Economist, February 2009.FIGURE 4: BLUE ANd NET GREEN WATER raiNFaLL EvaPOratiON & traNsPiratiON irriGatiON aBsOrPtiON (By crops and natural vegetation) aN EvOLviNG mEtHODOLOGy 13
  16. 16. tanzania, katavi National ParkPhotography by National Geographic.14
  17. 17. 5.0Case studiesEach of these countries arefacing different water relatedissues, are at different levelsof economic development, useland in different ways and areexperiencing different climaticchallenges. casE stuDiEs 15
  18. 18. 5.1 PeruKeY BeeR BRAnDS PRODUcTiOn OUTPUT (MiLLiOn LiTReS) 955 32 71 cristal cusqueña Pillsencallao BeeR cARBOnATeD BOTTLeD WATeR SOFT DRinKSKeY FAcTS 5BReWeRieS 2 BOTTLinG 37 BeeR cOnSUMPTiOn 1,080 TOTAL SiZe OF BeeR MARKeT PLAnTS PeR cAPiTA (LitrEs) (miLLiON LitrEs)FiGURe 5: GeOGRAPhic OveRvieW OF OPeRATiOnSinSeT MAP: AnnUAL ReneWABLe WATeR SUPPLY PeR PeRSOn (PROJecTiOn FOR 2025) cOLOmBia EcuaDOr arEquiPa Extremely scarce sufficient PucaLLPa scarce abundant truJiLLO stress No data sOutH PaciFic BraZiL OcEaN Lima cuZcO Brewery saN matEO BOLivia Bottling plant arEquiPa Packaging plant16
  19. 19. neT WATeR FOOTPRinT BY PRODUcT TYPe (excLUDinG GReY WATeR)BeeR 61 122 cARBOnATeD SOFT DRinKS 2 BOTTLeD WATeRLitrEs PEr LitrE LitrEs PEr LitrE LitrEs PEr LitrEOF PrODuct OF PrODuct OF PrODuctneT WATeR FOOTPRinT (excLUDinG GReY WATeR) 100% RECYCLEDcULTivATiOn & iMPORTS PROceSSinG BReWinG & BOTTLinG WASTe DiSPOSAL90% 1%% OF FOOtPriNt % OF FOOtPriNt 9% % OF FOOtPriNt 0% % OF FOOtPriNtneT WATeR FOOTPRinT BY SOURce TOTAL WATeR FOOTPRinT FOR BeeR(excLUDinG GReY WATeR) (incLUDinG GReY WATeR) 10% In country 9% Blue water 90% Imported 13% Net green water 78% Grey waterAveRAGe BReWeRY WATeR eFFiciencY4.3 litres Water used per litre of beer produced in own processes 7% improvement since 2008 casE stuDiEs – PEru 17
  20. 20. 5.1 PeruWater resources in Peru was especially the case for operations in Lima, followedaccording to the World resources institute15, the avail- by operations in motupe and arequipa. there wasability of renewable water resources in Peru is highly strong support for the Water Futures Partnership tovariable, extending from “extreme scarcity” at <500 m3 undertake detailed watershed mapping in these areasper annum per person along the coast where many of that covered water availability via snowmelt, rainfallsaBmiller’s facilities are located to “abundant” (>4000 and water contained within aquifers and how thesem3 per annum per person) in the forest region where supplies were used by industry, agriculture, power andtwo facilities are located (san Juan and cuzco). water companies. Future action to address shared risks will depend on the outcome of these mapping exercisesthe coastal region comprises most of the irrigation and on further conversations with other stakeholders.districts. Within Peru the highest volume of water isused by the agricultural sector (at 80%). Water is abun- at a more operational level, Backus – saBmiller’sdant in the atlantic watershed and scarce in the Pacific Peruvian subsidiary – is looking at ways in which itand titicaca watersheds. can improve water efficiency in its breweries with the aim of achieving a target of 3.5 litres of water for everySABMiller water footprint in Peru litre of beer. the current average of Backus’ breweriesthe total net water footprint, comprising green and in Peru is 4.3 litres of water per litre of beer, whichblue water components and excluding the green water represents a 7% improvement in water efficiency overevaporation that would have taken place if crops had the past two years. However, there is more that cannot been grown, is 62,600 million litres. be done, including undertaking water audits of each facility to quantify water use within each individualthe most significant components of the footprint are manufacturing process; investigating the feasibility ofgreen and blue water associated with the cultivation water re-use within the non-beer production processes;of barley and maize, mainly grown outside Peru. this assessing the practicality of rainwater harvesting ataccounted for 90% of the total water footprint, due the san Juan and cuzco breweries, where precipita-to the evaporative demand of the crops. Brewing and tion volumes are significant; and developing a waterbottling accounted for the next greatest component of management plan for the Peru operations.the footprint at 9%. the Partnership has not yet begun to addressthese water footprints do not include the grey water the potentially significant issues related to the externalimpacts. these are very significant and mainly relate to water footprint resulting from the import of barleythe use of fertilisers in the growth of crops (imported and maize.barley accounting for 85% of the grey water foot-print). the grey water impacts, although uncertain,have a significant impact on the calculated footprint ifincluded in the calculations:• Beer footprint would rise from 61 litres to 292 litres per litre produced• soft Drinks footprint would rise from 122 litres per litre produced to 290 litres• Bottled Water would rise from 1.9 litres to 3.7 litres per litre producedWhat has been done as a result?in February 2010, the partners held a workshop inLima which concluded that although the most signifi-cant volumetric component of the water footprint wasthe grey water within crop cultivation, the greatest riskto the business was seen as the water scarcity withinthe watersheds in which the breweries are located. this15. World Business council for sustainable Development Global Water tool/uN FaO aquastat information system.18
  21. 21. a brewery worker packs crates of cristal, Peru’s leading beer brandproduced by Backus; saBmiller’s brewing operation in Peru.One red Eye/Jason alden.STRATeGic RiSKS iDenTiFieD PeRUcLimatE cHaNGE rEDuciNGWatEr rEsOurcE avaiLaBiLitythe water supply of many cities in the coast region isrelated to the water supply from glaciers. temperature 62,600 million litres net water footprintincreases registered during El Niño, impact the cropgrowth, yield and quality. this is likely to be a keyconstraint on water supply for the largest brewery,ate in Lima. also, sugar and maize sourced bysaBmiller from within Peru are grown in the drier 90 % net water footprint attributable to crop cultivationcoastal regions, therefore any decrease in rainfallwill have a significant impact on crop growth and,potentially, compel the company to source a greaterproportion of its raw materials from elsewhere. 9% net water footprint attributable to brewing & bottling*iNcrEasiNG DEmaNDs FOr cLEaNWatEr FrOm GrOWiNG POPuLatiON * the remaining 1% is attributable to crop processingPopulation growth rates have been slowly declining,a trend that is predicted to continue to 2050. However,the population of 29 million in 2009 will rise to 43 DEtEriOratiNG WatEr quaLitymillion in 2050. combined with the deterioration in the over and inappropriate use of agrochemicalswater quality highlighted previously this will place (herbicides, inorganic fertilisers) in Peru has resultedeven greater pressures on water resources. in pollution of the irrigation channels and surface water bodies due to a lack of appropriate treatment facilities. Water quality will decline for the foreseeable future and competition for “clean” water will increase. casE stuDiEs – PEru 19
  22. 22. 5.2 TanzaniaKeY BeeR BRAnDS PRODUcTiOn OUTPUT (MiLLiOn LiTReS) 289 Balimi Safari Kilimanjaro BeeRKeY FAcTS 4 BReWeRieS 7 BeeR cOnSUMPTiOn 288 TOTAL SiZe OF BeeR MARKeT PeR cAPiTA (LitrEs) (miLLiON LitrEs)FiGURe 6: GeOGRAPhic OveRvieW OF OPeRATiOnSinSeT MAP: AnnUAL ReneWABLe WATeR SUPPLY PeR PeRSOn (PROJecTiOn FOR 2025) kENya rWaNDa mWaZaNa BuruNDi arusHa Extremely scarce sufficient Dar Es saLaam scarce abundant stress No data DEmOcratic rEPuBLic OF cONGO maLaWi mBEya iNDiaN OcEaN ZamBia mOZamBiquE Brewery20
  23. 23. neT WATeR FOOTPRinT BY PRODUcT TYPe (excLUDinG GReY WATeR)BeeR 180LitrEs PEr LitrEOF PrODuctneT WATeR FOOTPRinT (excLUDinG GReY WATeR) 100% RECYCLEDcULTivATiOn & iMPORTS PROceSSinG BReWinG & BOTTLinG WASTe DiSPOSAL92% 0%% OF FOOtPriNt % OF FOOtPriNt 8% % OF FOOtPriNt 0% % OF FOOtPriNtneT WATeR FOOTPRinT BY SOURce TOTAL WATeR FOOTPRinT FOR BeeR(excLUDinG GReY WATeR) (incLUDinG GReY WATeR) 59% In country 14% Blue water 6% Grey water 41% Imported 80% Net green waterAveRAGe BReWeRY WATeR eFFiciencY6.5 litres Water used per litre of beer produced in own processes 11% improvement since 2008 casE stuDiEs – taNZaNia 21
  24. 24. 5.2 TanzaniaWater resources in Tanzania are at least as efficient as the new facility at mbeya (5in tanzania, the availability of water resources has litres per litre of beer). to achieve this, tBL will under-been estimated at 2,440 m3/yr per person, defined as take water audits of each facility to quantify water use,“sufficient”9. However, this is an average for the whole identify inefficiencies and highlight areas of best prac-country, and there are many regional variations. Water tice with the results feeding into water managementused for irrigation accounts for around 90% of water plans. the latter will embrace changes to existing infra-withdrawn from surface and groundwater sources structure and investigate water re-use – with effluentwhile industrial use is very low. being treated so that it can be used within non-beer production processes or even provided to local commu-the brewery at Dar es salaam is located in an area nities for irrigation.which, by 2025, is predicted to be subject to extremewater scarcity (defined as <500 m3/yr of renewable as the data makes clear, the greatest component ofwater supply per person). the brewery at arusha and the footprint (over 90%) relates to the water requiredmaltings at moshi are in areas projected to be water to grow crops, both within tanzania and elsewhere.scarce (500-1000 m3/yr), while the brewery at mwanza is tBL does not underestimate the challenges it faces inin an area of water stress (1,000-1,700 m3/yr). the new seeking to reduce this element of its water footprintbrewery at mbeya is situated in an area where water – both in terms of data collection and because thesesupplies are categorised as abundant (>4,000 m3/yr).16 areas are beyond its direct control. tBL efforts here ’s will focus on developing a better understanding ofSABMiller water footprint in Tanzania its supply chain. Working with farmers, in collabora-the net water footprint for tanzania’s value chain for tion with agronomists and/or NGOs, it will improve2008 is 52,180 million litres. Over 90% of this footprint farming practices to maximise yields and minimiseis attributable to raw crop cultivation in tanzania (barley water use. this may involve investment in betterand sugar cane) and to the cultivation of imported crops seeds, more prudent use of fertilisers and pesticides(malt, hops and corn starch). the new brewery at mbeya (i.e. reducing the grey water footprint) and small-scalewill have a net water footprint similar to the other brew- irrigation systems. it may also necessitate addressingeries, although by placing more reliance on tanzanian issues related to the allocation of water rights, withinbarley and with the construction of a water treatment the context of tanzania’s new Water resourcesplant, the grey water impacts will be less. management act (2008).the water footprint above does not include the grey We shared the insights from this work at a water work-water impacts. these are relatively small and relate to shop in Dar es salaam in may 2010, where stakeholdersthe use of fertilisers in the growth of crops (barley from of the Wami-ruvu Basin learnt about the concepts ofargentina) and the discharge of effluent. We estimate shared water risk, what the partnership is trying tothat if grey water impacts were included the footprint achieve, and potential opportunities for collabora-would increase from 180 to 193 litres per litre of beer. tion. Participants in the event included: the ministry of Water and irrigation; Wami-ruvu Basin WaterWhat has been done as a result? Office; Dar es salaam regional secretariat Office; ilalasaBmiller’s most direct influence on water use will be municipal council; the Energy and Water regulatorythrough implementing efficient water management authority; Dar es salaam Water supply and seweragepractices at the moshi maltings and breweries. Given authority; Dar es salaam Water supply and seweragethat several of tanzania Breweries Limited (tBL) – corporation; iWasH Programme; WWF uk and WWFsaBmiller’s tanzanian subsidiary – operations are in tanzania; saBmiller; tanzania Breweries Limited; andareas which, by 2025, are predicted to be subject to GtZ, which organised and facilitated the workshop.water scarcity or extreme water scarcity this makes it the next steps will be to develop a watershed protec-imperative that the company responds immediately and tion programme to focus specifically on the current andeffectively to these challenges. currently, the average future supply and demand pressures of the surface andwater efficiency of tBL breweries is 6.5 litres of water per ground-water resources supplying Dar es salaam fromlitre of beer. Whilst there is clearly more work that can the Wami-ruvu basin. these will feed into a watershedbe done to improve this efficiency, it is encouraging that risk and sustainability assessment, which will assessefficiency has improved by 11% already over the past generic water risks to the city and specific businesstwo years. the aim will be to ensure that all breweries risks to tBL and act as the foundation for a business16. World Business council for sustainable Development Global Water case to mitigate against any risks identified. tool/uN FaO aquastat information system.22