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Rosemary Bissett - NAB - Presentation UNAA Corporate Water Valuation Seminar 29.04.13
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Rosemary Bissett - NAB - Presentation UNAA Corporate Water Valuation Seminar 29.04.13



Rosemary Bissett (Head of Sustainability, Governance & Risk, Enterprise Risk, National Australia Bank) - Presentation at the United Nations Association of Australia (Victorian Division) Corporate ...

Rosemary Bissett (Head of Sustainability, Governance & Risk, Enterprise Risk, National Australia Bank) - Presentation at the United Nations Association of Australia (Victorian Division) Corporate Sustainability Leadership Seminar ‘Corporate Water Valuation: Accounting for Risks and Impacts, Valuing Ecosystem Services’ held on Monday 29 April 2013, in partnership with National Australia Bank.

Held in support of the International Year of Water Cooperation, seminar addressed some of the challenges and opportunities associated with corporate water valuation, as well as local actions and global tools and initiatives in this area. It highlighted some examples of what Australian businesses are doing, alongside government and NGOs, to measure and manage their risks, impacts and dependencies on water.

Guest Speakers & Panelists included:
• Matt Kendall, General Manager, Planning and Evaluation Group, National Water Commission
• Rosemary Bissett, Head of Sustainability, Governance & Risk, Enterprise Risk, National Australia Bank
• Carl Obst, Editor, UN System of Environmental-Economic Accounting (SEEA)
• Jean-Michel Seillier, Regional Manager Victoria, Veolia Water
• Gioia Small, Regional Manager Sustainability and Vintrepreneur, Treasury Wine Estates
• Michael Spencer, Secretary, Water Stewardship Australia and Fellow, Department of Business, Law and Taxation, Monash University

• Rob Gell, Environmental Entrepreneur, Chairman of UNESCO Western Port Biosphere, and Chair of Wildlife Victoria

More information available at: http://www.unaavictoria.org.au/education-advocacy/masterclasses/corporate-water-valuation-seminar/



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Rosemary Bissett - NAB - Presentation UNAA Corporate Water Valuation Seminar 29.04.13 Rosemary Bissett - NAB - Presentation UNAA Corporate Water Valuation Seminar 29.04.13 Presentation Transcript

  • Corporate Water Valuation:Accounting for Risks &Impacts, Valuing EcosystemServicesA finance sector perspectiveRosemary BissettHead of Sustainability Governance & Risk29 April 2013
  • Natural Capital DeclarationAn Update
  • The Natural Capital DeclarationCentres on four key commitments:1) understanding the impacts and dependencies ofnatural capital, directly and through customers, byfinancial institutions that can translate into materialrisks or opportunities;2) embed/integrate natural capital considerations infinancial products and services;3) report/disclose on natural capital; and4) work towards a global consensus for theintegration of natural capital in private sectoraccounting and decision making.
  • The NCD partnersNow signed by 41 Financial InstitutionsSupported by 23 organisationsConvened by
  • WORKINGGROUPS2012/2013OUTPUTS2015OUTPUTS2018OUTPUTS2020OUTPUTS1. UNDERSTANDINGNC DEPENDENCY2. EMBEDDING NCIN FINANCIALPRODUCTS&SERVICES3. REPORTING &DISCLOSUREAgreement on roadmap with NCDsignatoriesAssessment frameworkon risks andopportunities related tofinance and NCBest practice casestudies4. FINANCIALACCOUNTINGSet up governancestructure andsecretariatNCD road mapwork plan,schedule andbudgetNCD RoadmapDecision criteria forembedding NC into FI’sproducts and servicesNC friendly products andservicesTemplates for NCreporting and disclosurerecommendationsShadow priceaccountingEnvironment P&L’sfor FI’s4 pilots in FIs(1 per step)Mid term review on4 steps outputComparable globalstandard for NC accountingfor FI industryRegulatory frameworkmandating NC accountingComparable globalstandard for NCaccounting for FIindustry drafted8 pilots in FI’s(2 per step)30 FI pilots 130 FI pilots
  • Finance sector perspective onmanaging water related risksand opportunitiesWater has moved from a marginal input towards a central enabler offood, energy and climate security – and a vital prerequisite for growth
  • • Water is a basic necessity for sustaining life (it remains undelivered to manyof the world’s poor)• Availability of adequate quantity and quality of water is a service providedby ecosystems• Macro-conditions are impacting water availability and quality – increasingdemand (population), degradation of watersheds, deforestation and extremeweather patterns• BAU activity translates to a unsustainable 40% gap between global supplyand water withdrawals by 2030 – leading to growing water security risk(varies by geography and locality)• Water makes a crucial contribution to agriculture, fisheries, forestry, energy,industrial production and to quality of life• Use of tools such as a marginal abatement cost curve for water investmentwill help to identify the most efficient and effective investment opportunities.7WaterWaterWaterWater –––– a natural value issuea natural value issuea natural value issuea natural value issue
  • Water risk – what are we talking about?Drought declared in south-east EnglandThe Guardian, Monday 20 February 2012 14.55 GMTWellington has ’20 days of water left’ indroughtPublished: 8:27AM Wednesday March 13, 2013 Source: FairfaxQueensland floods: the effects could go globalBY Jonathan Harwood LAST UPDATED AT 13:00 ON Thu 13 Jan 2011
  • Categories of water risks• Strategic – relevance to future products and supply chain• Financial – costs for compliance with regulatoryrequirements, management of water entitlements, costsfor supply, storage, purification and transport of water• Regulatory – changes to the policy environment, accessrights etc• Compliance – permits for extraction, licences fordischarge to sewer or environment• Operational – availability/quality/impact on operationsand production• Reputational – impacts on social licence to operate
  • Activity exposure to water-related risk –some examplesSector Activity Water exposureAgriculture Horticulture, Arable farming,livestock, dairy farmsAvailability & quality of water;feedstock, irrigationMining & metals Mining, manufacture, recovery &recyclingAvailability & quality of water;feedstock; environmental controlPower, oil & gas Power plants Availability & quality of water;cooling; effluent carrierManufacturing Varied e.g. Pulp/PaperManufacture; Chemicals; food &beveragesVaried e.g. Availability & qualityof water; feedstock; cooling;effluent carrier; safety agent;cleaning; process solvent;Construction Land development Flooding risk; availability &quality of resourceTourism & leisure Wetlands & water courses;recreational; hospitality, leisureAvailability for plant & animal life;Availability & quality of water forhuman activities; changes towaterborne disease; irrigation10
  • Drivers of water related risks andopportunities11Regulatory &Regulatory &Regulatory &Regulatory &legislativelegislativelegislativelegislativerequirementsrequirementsrequirementsrequirementsResourceResourceResourceResourceaaaavailability &vailability &vailability &vailability &qualityqualityqualityqualitySocialSocialSocialSocialaccountabilityaccountabilityaccountabilityaccountabilityProducts andProducts andProducts andProducts andservicesservicesservicesservicesWaterWaterWaterWater----relatedrelatedrelatedrelatedinfrastructureinfrastructureinfrastructureinfrastructureWater technology/Water technology/Water technology/Water technology/efficiencyefficiencyefficiencyefficiencyWater servicesWater servicesWater servicesWater servicesProject financeProject financeProject financeProject finance AssetAssetAssetAssetmanagementmanagementmanagementmanagementCorporate financeCorporate financeCorporate financeCorporate financeWater fundsWater fundsWater fundsWater funds
  • A FI risk management approach12Risk IdentificationCountry level(Political, sovereign, exchangerate, regulatory, social, legal &compliance risk)Project level(Construction, marketing,operational, counter-party andreputation risk)TerminateinvestmentconsiderationMitigation measuresMonitoring of risk• Changes in compliancerequirements & regulatorychange• Reputational risk• Climate change• Loan documentation• Stakeholder consultation• Insurance cover• Hedging instrumentsTracking changes in riskprofile• Feasibility studies• EIAs (new)• Due diligence (existing)• Financial due diligenceScreening(Assessing significanceof risk)Risk control measuresby client(legal, technical and businessmeasures)Measures
  • The CDP Water Disclosure RequestThe CDP Water Disclosure RequestThe CDP Water Disclosure RequestThe CDP Water Disclosure Request“We have learned from ourcomprehensive measurement andreporting capabilities for GHGemissions that transparency is apowerful tool for motivating peopleand organisations to changebehaviour. We are applying thesame principle to our near term andlong-term water risk.”UPS13
  • Thank you