3. Don’t Look at the Waves,
Look for the Current
WATER
3
4. MACRO TRENDS
4
Water Shortage
Energy Demand
Aging Population
Increasing middle
class globally
Nature
Technology
Food production accounts for nearly 75% of water consumption
Demand for energy requires more geographically and technically
challenging sources, which are more difficult to reach and treat
as well as more water intensive
Water scarcity is expected to be a dominant issue, particularly in
high growth emerging market economies
Aging population in EMEA, Japan, and China will drive
healthcare
Meal prep away from home continues in emerging markets
driving foodservice growth
Evolution presents new food safety and infection challenges
Science & technology enables broader set of product and
process improvements
Population Growth
Diet Shifts
More people: +50% by 2050. Most growth in emerging markets
Diets move from grains to proteins in emerging markets
Population growth plus diet shift means 75-100% more calories
needed to feed the world
6. EMBEDDED WATER IN
EVERYDAY PRODUCTS
6
167
Gallons of Water
=
55Gallons
of Water =
of Water =
=
450Gallons
of Water =
880Gallons
360Gallons
of Water =
200Gallons
of Water
7. BY 2030…
The world will need:
30% more water
40% more energy
50% more food
7
The global water industry is
estimated at $483 billion and
growing several percentage
points a year, according to Global
Water Intelligence.
8. AGRICULTURE IS THE LARGEST
FRESH WATER CONSUMER
8
Source: World Water Assessment Programme
70%
Agriculture
20%
Industry
10%
Domestic
10. “THERE IS NO NEW WATER.
ALL WE HAVE IS HERE.”
10
- National Geographic
11. WATER INVENTORY
11
97.5%
Salt Water
2.5%
Fresh Water
Fresh Water Inventory
Fresh Water Total Water
Glaciers/ice caps 68.6% 1.72%
Groundwater 30.1% 0.75%
Lakes, rivers, ice/snow 1.3% .03%
12. WATER INVENTORY
12
97.5%
Salt Water
2.5%
Fresh Water
Fresh Water Inventory
Fresh Water Total Water
Glaciers/ice caps 68.6% 1.72%
Groundwater 30.1% 0.75%
Lakes, rivers, ice/snow 1.3% .03%
13. FRESH WATER SUPPLIES
Water scarcity among the top four risks to society –
WEF Global Risk Survey
World Bank predicts that by 2025, water demand will
exceed supply by 50%
Challenges differ watershed to watershed
Food, water and energy are all connected
13
14. WATER CRISIS MAKING
INTERNATIONAL HEADLINES
Southwest braces as Lake Mead
water levels drop
Nestlé warns water scarcity
‘more urgent’ than climate change
Water shortage shuts Coca-Cola
plant in India
Water woes force big brewers to tighten the tap
California Drought Squeezes Wells
State Considers Regulating Groundwater
Use for First Time
15. 15
US COMPANIES FACE INCREASING
WATER-RELATED RISKS
94% face potential
physical challenges
69% face reputational risks
58% face regulatory risks
80% say it will affect
their decisions on where to
locate facilities
60% indicate water will affect
business growth and
profitability within five years
1 Bridging Concern with Action: Are US
Companies Prepared for Looming
Water Challenges?, Pacific Institute
and VOX Global 2014 survey of US-based
Fortune 500 companies
18. ECOLAB: UNIQUELY POSITIONED
TO DELIVER WHAT MATTERS MOST
SAFE
FOOD
CLEAN
WATER
ABUNDANT
ENERGY
HEALTHY
ENVIRONMENTS
19. PEOPLE, SERVICE & INNOVATION
$13 BILLION ANNUAL SALES
ASSOCIATES
25,000
SERVING MORE THAN 1 MILLION CUSTOMER
LOCATIONS IN 171 COUNTRIES
1,600 Scientists 6,700 Patents
19
45,000
LARGEST &BEST TRAINED
FIELD TEAM
21. ECOLAB MODEL DRIVES INSIGHTS
21
Shared Operating Principles
Shared Technology
Shared Model
Foodservice/
Hospitality
Food &
Beverage
Processing
Healthcare/
Infection
Prevention
Industrial
Water Services
Energy
Services
22. 22
Global Technical Reach
Campinas
Aberdeen
Calgary
Singapore
Bangkok
Leiden
Alpharetta
Tokyo
Monterrey
Global Innovation Centers
Monheim
Shanghai
Sydney
North
America
Europe
& MEA
Latin
America
Asia
Pacific
Delden
Eagan
Houston
Naperville Greensboro
Pune
24. BRANDS WITH WATER REDUCTION
GOALS
24
Renewing efforts to decrease water
consumption by 20% by 2015,
compared to 2008 baseline.
2015 goal to improve
freshwater efficiency by 5%
Aims to reduce direct water withdrawal per ton of
product by 40% by 2015, compared to 2005
baseline.
Intends to cut water use per pound of
product by 15% by 2015, compared
to a 2008 baseline.
Goal to reduce water use by 10% by
2020.
Lower daily water consumption
by more than 4% each year,
compared to 2013 baseline.
Goal to reduce water use by
10% by 2017, compared to
2012 baseline.
25. 25
Food Manufacturer
Ecolab solutions save customer significant
water in its operations.
Across the enterprise, 3D TRASAR™ technologies
and water reuse projects will save:
• 228 million gallons of water per year
• $834K
26. 26
Ice Cream Plant
Ecolab saves water and energy at an ice
cream plant.
Boiler management solution saves:
• 11 million gallons of water
• $67K on water and energy
That’s 14,000 MM BTUs in energy and
enough water for the daily use of more
than 158K people.*
*Based on average daily water use estimated by the American Water Works Association.
27. 27
Food Processor
Cleaning program saved food processor
energy and increased production time.
Advantis™ FC Boiler provides lower-temperature
cleaning process, excellent
cleaning results, operational efficiencies
and sustainability benefits
• Refrigeration savings of 17,000 kWh
• Water heating savings of 957 MM
BTUs and $22K
31. ASSIGN A VALUE TO WATER
Progressive companies are:
Recognizing that the water bill does not
reflect the true value of water.
Assigning values that reflect the
real importance of water to their ability
to do business
Analogy: valuing water as we value the
cost of capital for an acquisition
31
32. 32
INTRODUCING A NEW WAY TO FACTOR WATER
RISKS INTO BUSINESS DECISIONS
33. Partnership with Trucost,
the Natural Capital Experts
First-of-its-kind tool launched this week
Web-based, easy to use online tool
Provides site-specific, actionable information
Available to all at no cost
Scientific model developed by Trucost
Draws upon multiple information sources
33
35. OUR INTERNAL STEPS
Working to understand our risks by site
Incorporating water picture in our site selection criteria
Increasing water reduction goals, implementing first where
it matters most
Driving technology options to
reduce water pressure
35
36. 36
"The frog does not drink up the pond
in which he lives.“
- American Indian Saying