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Water scarcity and business: constraints and
opportunities
Alex McNamara
NCPC Industrial Efficiency Conference, Durban ICC, 22 July 2015
2
Water scarcity:
a critical risk for business
Water scarcity is a key operational and
strategic risk for business, impacting:
• Business continuity
• The viability of project investment
• Company supply chains
• Employee health & productivity
• Consumer behaviour / consumer demand
• Investor behaviour (e.g. Boston Common Asset
Management, Norges Bank)
Water quality is also key!
There are also wider socio-economic risks
from water scarcity that can impact business
These wider risks relate to:
• The livelihoods of surrounding communities
• Competition for water resources in urban/peri-
urban areas (in context of rising per capita
demand)
• The use of water in power generation
Business in South Africa has already
identified water as a key risk
CDP Water South Africa
2014:
• Risks related to water in
South Africa are
immediate and have
significant impacts
www.cdp.net | @CDP
6
“Water is an essential resource
for any business.
The potential for water-related
problems to damage brand value
or limit corporate growth is
increasingly understood”
- CDP CEO, Paul Simpson
7
We are already seeing many
of these issues playing out…
8
Water pricing will also increasingly be a
function of water scarcity
• With associated impacts on the cost of doing
business
Just one example, the Western Cape to
2050 (marginal cost of raw water)
Source:
DWA, 2010
11
Water scarcity:
the opportunity for business
Business is essential to solving this
pressing challenge
The answer has three main components:
1. Get company’s own house in order
2. Support innovation and drive new solutions
3. Engage in collective action
Each of these areas can be a commercial
opportunity for business.
12
1. There are opportunities to lower costs
and improve business resilience
This is primarily done through:
• Water metering and monitoring
• Water efficiency and conservation
• Water recycling and reuse
• Water risk assessment
13
2. Business is the major innovator in
society and a key provider of solutions
The opportunities for business include:
• Developing water efficient products
• Rolling out water management related ICT and services
• Commercialising new water treatment options and water
technologies
• Developing water related infrastructure
• Taking advantage of specific project investment
opportunities
Urban environments provide economies of scale and
support market viability
14
3. Collective action and water stewardship is
needed for a water secure future
What is water stewardship? It is:
• Helping to manage a resource that you don’t own, but
that is important to you
• Working with municipalities, national departments,
communities and supply chains to solve pressing water
challenges, in ways that benefit both parties
• A collaborative approach, given that the solution
requires collective action
15
16
CDP Water:
“There’s no value in
being a clean fish in a dirty pond”
What is the NBI doing?
• Raising awareness and developing capacity of member
companies
• Conducting strategic research on key water topics
• Helping to strengthen partnerships between government
and business
• Implementing the CDP Water programme in South Africa
• Partnering with leaders in the space (e.g. WBCSD) to
connect SA to key trends and management approaches
• Facilitating access to co-funding for collective water
stewardship projects
17
In summary
• Proactive measures to support water security are
essential
• Getting own house in order is important, but
considerably more at stake than operational efficiency
• Many of the largest risks and opportunities lie outside of
the company fenceline
• A water secure future will benefit strongly from business
efforts and innovation
18
19
Questions?
The NBI
The National Business
Initiative (NBI) is a
voluntary group of leading
national and multi-national
companies, working
together towards
sustainable growth and
development in South
Africa through
partnerships, practical
programmes and policy
engagement.
M
E
W
+27 (0)79 699 3284
alexm@nbi.org.za
www.nbi.org.za
Alex McNamara
Programme Manager | Climate & Water

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Hall2D Wednesday 09h15 - Alex Mcnarmara

  • 1. Water scarcity and business: constraints and opportunities Alex McNamara NCPC Industrial Efficiency Conference, Durban ICC, 22 July 2015
  • 2. 2 Water scarcity: a critical risk for business
  • 3. Water scarcity is a key operational and strategic risk for business, impacting: • Business continuity • The viability of project investment • Company supply chains • Employee health & productivity • Consumer behaviour / consumer demand • Investor behaviour (e.g. Boston Common Asset Management, Norges Bank) Water quality is also key!
  • 4. There are also wider socio-economic risks from water scarcity that can impact business These wider risks relate to: • The livelihoods of surrounding communities • Competition for water resources in urban/peri- urban areas (in context of rising per capita demand) • The use of water in power generation
  • 5. Business in South Africa has already identified water as a key risk CDP Water South Africa 2014: • Risks related to water in South Africa are immediate and have significant impacts www.cdp.net | @CDP
  • 6. 6 “Water is an essential resource for any business. The potential for water-related problems to damage brand value or limit corporate growth is increasingly understood” - CDP CEO, Paul Simpson
  • 7. 7 We are already seeing many of these issues playing out…
  • 8. 8
  • 9. Water pricing will also increasingly be a function of water scarcity • With associated impacts on the cost of doing business
  • 10. Just one example, the Western Cape to 2050 (marginal cost of raw water) Source: DWA, 2010
  • 12. Business is essential to solving this pressing challenge The answer has three main components: 1. Get company’s own house in order 2. Support innovation and drive new solutions 3. Engage in collective action Each of these areas can be a commercial opportunity for business. 12
  • 13. 1. There are opportunities to lower costs and improve business resilience This is primarily done through: • Water metering and monitoring • Water efficiency and conservation • Water recycling and reuse • Water risk assessment 13
  • 14. 2. Business is the major innovator in society and a key provider of solutions The opportunities for business include: • Developing water efficient products • Rolling out water management related ICT and services • Commercialising new water treatment options and water technologies • Developing water related infrastructure • Taking advantage of specific project investment opportunities Urban environments provide economies of scale and support market viability 14
  • 15. 3. Collective action and water stewardship is needed for a water secure future What is water stewardship? It is: • Helping to manage a resource that you don’t own, but that is important to you • Working with municipalities, national departments, communities and supply chains to solve pressing water challenges, in ways that benefit both parties • A collaborative approach, given that the solution requires collective action 15
  • 16. 16 CDP Water: “There’s no value in being a clean fish in a dirty pond”
  • 17. What is the NBI doing? • Raising awareness and developing capacity of member companies • Conducting strategic research on key water topics • Helping to strengthen partnerships between government and business • Implementing the CDP Water programme in South Africa • Partnering with leaders in the space (e.g. WBCSD) to connect SA to key trends and management approaches • Facilitating access to co-funding for collective water stewardship projects 17
  • 18. In summary • Proactive measures to support water security are essential • Getting own house in order is important, but considerably more at stake than operational efficiency • Many of the largest risks and opportunities lie outside of the company fenceline • A water secure future will benefit strongly from business efforts and innovation 18
  • 20. The NBI The National Business Initiative (NBI) is a voluntary group of leading national and multi-national companies, working together towards sustainable growth and development in South Africa through partnerships, practical programmes and policy engagement. M E W +27 (0)79 699 3284 alexm@nbi.org.za www.nbi.org.za Alex McNamara Programme Manager | Climate & Water