Aqueduct CDP Corporate Water Disclosure Webinar (8 May 2013)
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This webinar – co-hosted by WRI and CDP – takes a close look at how companies can use Aqueduct and respond to the 2013 CDP Water Questionnaire. The webinar explains step by step the Aqueduct tool functionalities and data input requirements, as well as an overview of how to interpret the results and respond to the CDP Water Disclosure 2013 Information Request. For more information visit http://www.wri.org/event/2013/05/webinar-aqueduct-corporate-water-disclosure
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Aqueduct CDP Corporate Water Disclosure Webinar (8 May 2013)
- 1. Aqueduct for Corporate Water Disclosure May 8 2013, 11:00am - 12:00pm EST Paul Reig, WRI Aqueduct Cate Lamb, CDP Water
- 2. 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’
- 3. 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
- 4. AQUEDUCT PROJECT CORPORATE WATER MANAGEMENT Paul Reig, WRI Aqueduct
- 5. WATER SUPPLY CRISES RISK TOPS IMPACT AND LIKELIHOOD
- 6. Photo: flickr/r~p~m Source: National Geographic Photo: flickr/zen WATER RISKS TO: GOVERNMENTS COMPANIES INVESTORS
- 7. DETAILED, COMPARABLE, GLOBAL WATER RISK INFORMATION Photo: NASA
- 8. MAPPING: GLOBAL WATER RISKS
- 9. 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
- 11. AQUEDUCT: MEASURING EXPOSURE TO WATER RISK 1 • Select Weights 2 • Import locations 3 • Export results
- 12. GO TO:
- 21. AQUEDUCT: CORPORATE WATER MANAGEMENT Sources: WBCSD (2012) Water For Business Version 3
- 22. CORPORATE WATER DISCLOSURE Cate Lamb, CDP Water
- 24. {{ {{ To catalyse action on corporate water stewardship to safeguard precious water resources Vision, CDP Water Program
- 25. Investor interest in water is rising CDP’s Water Signatories CDP’s Water Signatories Assets 25 Water 2013 530investor signatories US$57 trillion in assets
- 26. 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?
- 27. Questionnaire sent to 1,039 companies in 2013 Companies outside these sectors and regions are welcome to respond voluntarily; to register email respond@cdproject.net Targeted industry sectors include: • apparel • chemicals • food & beverage • metals & mining • oil & gas • pharmaceuticals • power generation • semiconductors Global 500 ASX 100 JSE 100 S&P 500
- 28. CDP WATER 2013 QUESTIONNAIRE Cate Lamb, CDP Water Paul Reig, WRI Aqueduct
- 29. 2013 Water Questionnaire Water management & governance Risks & opportunities Water accounting
- 30. 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 30 Country or region River basin Risk Indicator Proportion of operations located in this region (%) Further comments Country drop down list Other: text box River Basin drop down list Not known Other: text box Flooding Poor water quality Tightening of regulations Poor enforcement of regulations Inadequate water infrastructure Inadequate access to water and sanitation Other: text box 0 1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100 [plain text entry: 2400 characters] Add Row
- 31. QUESTION 2.1: WATER-STRESSED REGIONS
- 32. QUESTIONS (2.2) (2.5): WATER-RELATED RISK Physical Risks – Quantity Physical Risks – Quality Regulatory & Reputational Risks
- 33. 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 33 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.
- 34. 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 34 Country or region River basin Risk type Potential business impact Estimated timescale (years) Risk management strategies Company-wide Country drop down list Other: text box River Basin drop down list Not known Other: text box 1. Physical options 2. Regulatory options 3. Other options [plain text entry: 2400 characters] Current 1-5 6-10 11-20 >20 Unknown [plain text entry: 2400 characters] Add Row
- 35. QUESTIONS (3.1) AND (3.1A): CURRENT RISK Physical Risks – Quantity Physical Risks – Quality Regulatory & Reputational Risks
- 36. QUESTIONS (3.1) AND (3.1A): FUTURE RISKS PROJECTED CHANGE IN WATER STRESS
- 37. Consultation
- 38. 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
- 39. { 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 39
- 40. 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’
- 41. Thank you for joining! Contact us: Paul Reig, preig@wri.org Cate Lamb, cate.lamb@cdp.net wri.org/aqueduct cdproject.net
Editor's Notes
- Talk about Aqueduct project and step-by-step process of how the tool can be used for corporate water management
- World Economic Forum 2013 Global Risks reportFor the second year in a rowWater was among the top 5 risks (at the top of the chart) – most likely to occur; and highest impact
- Risks to governments, companies and investorsAqueduct was launched in response to corporate and investor concern in exposure to risks across operations and supply chainsFloods in Thailand impacted automotive industry in Japan and USATexas drought drove up cotton prices leading to financial impacts to major clothing brands Increasing demands in megacities has lead companies to truck in water Risk materialize and investors know it – they want to know where, why and what is being done about it
- WRI Aqueduct launched new information global, up-do-date and comparable
- Information displayed in the form of maps, to accurately capture the details and particularities of water and how these vary across basins, regions, countries, in a visual and comprehensive form, translating complex hydrological information into actionable information that can be understood by corporates, investors and other stakeholders
- Because there are many sources of risk, Aqueduct chose to use a framework of indicators that would account for many of these and aggregate them into three main categories based on how companies perceive the risks – quantity, quality, regulatory and reputational Indicators include measures of water stress (most important), also variability in supply, storage, flood, drought, groundwater stress and others. Additionally, Aqueduct also provides estimate of the future conditions, via indicators of projected change in water stress computed using scenarios of supply and demand changes based on IPCC climate change scenarios and socioeconomic growth patterns
- All of this information is publicly available on our project website, where it can be used to evaluate exposure to risk across operations or supply chains as well as downloaded for free and used internally by companies, governments, investors or academics The next few slides will explain how to use the Aqueduct tool to evaluate your companies exposure to risk
- Three steps
- First go to project website at www.wri.org/aqueductClick on map
- Enter the tool – 1st step is to select weights based on industry, these will determine the importance of each indicator and drive the aggregation of these into aggregated scores of quality, quantity and reg rep. This can be done from the drop down menu on the water risk indicators panel on the top right The tool allows for customization of weights but not recommended
- Second, once you have set the weights, you will need to import information on the location of your facilities, assets or suppliers, depending on what part of your organization or value chain you intent to assess for exposure to risk For that bottom left side, analyze location panel
- Click on import locations, and import coordinates or addresses from excel document, by copy and pasting
- Once you paste the locations, the tool is ready to geo-reference them, click “add locations”
- Tool automatically populates the location information and provides you with the results for each individual indicators. These can be vizualized in the panel below, sorted from high to lowFor each location it also provides the country and major watershed
- One can click on any given location to obtain the information
- And most importantly you can export the results onto your computer and save them as an excel document
- Exel is quite simple, includes location name, country, catchment and results for each indicator and aggregated scores (these will have been calculated based on the selection of weights) Results include level of risk, score 1-5, as well as the raw value for that indicator
- So what can be done with this type of information, information on the water risk landscape surrounding your assets or suppliers? Most importantly it characterized the water use and intensity, putting into context the relationship between internal water use and efficiency and the surrounding environment (including naturally occurring variables as well as other demands) From the corproate water management cycle proposed by WBCSD, we see that information of this type can help in three of the 5 distinct steps of this process: assessing global and local water situation,Identifying water risks and opportunities (by combining with water use, intensity and discharge data)Finally, helping communicate this information to internal and external environmental, financial and other stakeholders, also know as disclosure Today’s webinar is going to focus on how Aqueduct can help report water risk to CDP water, the main vehicle for corporate disclosure around waterWith that I will pass the floor to Cate Lamb, head of water, for CDP Water based in London.
- High to extremely high
- Question 2.2 – other indicators, depends on companyQuestion 2.5, referring to inputs and raw materials, can be answer by plotting key sources and suppliers and evaluating which of their locations are exposed to high levels of water risk, looking first at aggregated scores to evaluate overall exposure to risk, then determine the source of risk using the 12 metrics
- Question 3.1 – substantive change depends on company, exposure to water-related risk can be determined as discussed, first aggregated score and then determining the source of risk by indicator Question 3.1a – same; results help you fill out the three first columns: country, basin name and risk type
- As far as future water-related risks, at this point Aqueduct can help evaluate future exposure to increased water stress, working on flood, drought and supply variability, not yet available. The results of future stress metrics are also in the excel document, at the endAlthough only one of many types of risk, water stress is central and critical to understanding water-related risk and is a key indicator for other water issues likely to be present in that area due to high levels of demand relative to supply – good metric to identify future risks