The CEO Water Mandate is a UN Global Compact initiative launched in 2007 to encourage businesses to address water stewardship. It provides a framework to guide companies in improving practices across direct operations, supply chains, watershed management, public policy engagement, and community outreach. The Mandate also promotes collective action among companies and other stakeholders to help solve shared water challenges. Key elements in planning collective action include scoping issues, identifying participants, selecting engagement levels, designing initiatives, and managing programs over time.

1. CEO Water Mandate and Collective Action
Jason Morrison
International Waters Conference 7
Bridgetown, Barbados
October 30, 2013

2. CEO Water Mandate Overview
Launched in 2007 in a partnership between companies
and the UN Global Compact, the CEO Water Mandate is a
business initiative dedicated to advancing corporate water
stewardship.
Function
1. The Mandate constitutes a call-to-action and forum for
companies to improve their water stewardship
practices
2. It also provides a strategic
framework, research, guidance, and tools designed to
help guide this process

3. Commitment Areas
Direct Operations:
water-use assessments; targets for conservation and waste-water, etc.
Supply Chain and Watershed Management:
supplier sustainability strategies; assess and respond to watershed risk, etc.
Collective Action:
civil society, governments, UN, other water initiatives, etc.
Public Policy:
inputs to public-policy making; advocacy on water sustainability, etc.
Community Engagement:
support local groups; water education; infrastructure, etc.
Transparency:
report on implementation and progress

4. Sectors Represented
Apparel
Agri-Business
Beverage
Chemicals
Construction
Consumer Products
Cosmetics
Energy
Engineering
Finance
Food
Footwear
Forest Products
Pharma
Publishing
Mining-Metals
Water Services
Water Technologies

5. Societal Risks by Severity and Likelihood
Source: World
Economic Forum 2012

6. Water Risk and the External Engagement Imperative
Company
- Water use efficiency
- Wastewater treatment
- Compliance
- Impacts on communities and ecosystems
Basin / Watershed
- Water stress
- Water pollution
- Inadequate infrastructure
- Lack of government capacity
- Climate change
- Lack of community access to
safe drinking water
Often, the greatest risks come from conditions
over which the company has the least influence

7. Business Case: Internal versus External Action

8. Shared Water Challenges and Collective Action
Shared risk creates a
strong driver for collective
action among companies
and others to advance
sustainable water
management

9. Collective Action Preparation and Implementation
ELEMENT 1:
Scoping Water
Challenges and Action
Areas
ELEMENT 2:
Identifying and
Characterizing
Prospective Participants
ELEMENT 3:
Selecting a Collective Action Level of Engagement
ELEMENT 4:
Designing Collective Action Engagement
ELEMENT 5:
Structuring and Managing Collective Action

10. Characterizing Water-Related Challenges, Causes, and Risks
Drivers of
Water Resource
State
Climate
Variability
Social Norms
and
Expectations
Water-Related
Challenges
Changes to
quality,
quantity, or
availability;
alterations to
goals or
objectives
Water
Governance and
Regulation
Water Planning,
Management,
and Pricing
Company
Interests
Water OverAllocation
Infrastructure
Management
and Funding
Economic
Development
Demographic
Shifts
Water
Management
System
Insufficient
response to
water
management
pressures
and
requirements
Water
Supply/Sanitation
Unreliable/
Unavailable
Water Quality
Deterioration
Flood Damage
Ecosystem
Degradation
Physical Risk
Direct
operational
impacts or
concerned
community
actors or
customers
Regulatory Risk
Reputational
Risk
Stewardship
Opportunity

11. Collective Action Areas and the Water Action Hub
• Efficient Water Use
• Effluent Management,
Wastewater Reclamation,
Reuse
• Community-Level Access to
Safe Water, Sanitation, and
Hygiene
• Storm Water Management
and Flood Control
• Infrastructure Finance,
Development, Operation, or
Maintenance
• Sustainable Agriculture
• Climate Change Adaptation and
Resilience
• Ecosystem, Source Water
Protection, Restoration
• Monitoring and Knowledge
Sharing
• Engaging in Participatory
Platforms
• Public Awareness and Education
• Improved Water
Governance, Policy
Development, and
Implementation

12. Connecting Actions to Underlying Causes
Water
OverAllocation
Water
Supply
Unreliable
Efficient Water Use
Inadequate
Infrastructure
System
Water
Quality
Deterioration
Flood
Damage
Ecosystem
Degradation
Effluent
Management/
Wastewater
Reclamation/Reuse
Community Level Access to Safe
Water, Sanitation, and Hygiene
(WASH)
Storm Water Management and
Flood Control
Infrastructure Finance, Development, Operation, or Maintenance
Sustainable Agriculture
Ineffective
Water
Management
Climate Change Adaptation and Resilience
Ecosystem/Source Water Protection/Restoration
Monitoring and Knowledge Sharing
Engaging in Participatory Platforms
Poor
Catchment
Governance
Public Awareness and Education
Improved Water Governance and Policy Development

13. Sasol-Emfuleni Partnership Model
Emfuleni & GIZ/Sasol
partnership agreement (MoU)
Emfuleni Municipality
Savings from
reduced
losses
Community
Sasol
(Private sector )
Funding from
ring- fenced
savings
Seed funding
Reduced risk
Influencing public policy
Emfuleni
water
conservation
project
Job creation and
improved service delivery
GIZ/Sasol
Development
partnership
Seed funding,
governance,
auditing role
ORASECOM
GIZ
Development funding

14. Agriculture represents 70% of global water withdrawal; we are
engaged in water conservation measures across our business
China Company Farms
Traditional
Flood Irrigation
Pivot Irrigation
30-50%
Drip Irrigation
Up to
70%
India Community Farms
Traditional
In 2009, PepsiCo applied
DSR & saved Over 5.5
Billion liters water
30% Water
70% GHG
Direct Seeding ( DSR)
The potential “prize” is a water savings
of nearly 0.25 billion liters/year
14

15. …and we are expanding beyond direct
operations to watershed interventions
Positive Water Balance
employs a simple “credit/debit”
model to water use and
replenishment. The
performance of the India
business was assured
externally by Deloitte in 2009
and 2010.
Looking ahead, protection
and restoration of
watersheds where we do
business is the umbrella
under which much of our
long-term, water-related risk
will be mitigated in our direct
operations, supply
chain, and community.
15
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16. Jason Morrison
Technical Director, CEO Water Mandate
jmorrison@pacinst.org
Learn more about the CEO Water Mandate and sign up for our mailing list at:
www.ceowatermandate.org