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WWF Klaudia NCPC - 14 September 2017
- 1. Understanding Water Risk & exploring Water Stewardship industry lessons in the Western Cape Water efficiency – responding responsibly Dr Klaudia Schachtschneider WWF-SA Water Stewardship Programme Manager
- 3. Source: www.droughtsa.org.za Droughts & extremes… the new normal
- 5. Business Water-Related Risks Financial Risk • Physical Reputational Regulatory
- 7. The water stewardship journey - becoming more resilient to water risk
- 8. 8 Following the format of AWS International Water Stewardship Standard to implement water stewardship
- 9. The case of M&S with Woolworths Data upload into the Water Risk Filter & completed assessment # of Fabric Mills per river basin High No/Limited Bubble size reflects 2013 volume in pieces Yangtze China (other) BeiJiang (Pearl) Dong Jiang (Pearl) Xi Jiang (Pearl) Turkey Hong Kong Cauvery River Indus 1,5 2,0 2,5 3,0 3,5 4,0 4,5 - 10 20 30 40 50 60 Ceres, South Africa Stewardship guidelines; training, awareness, collective action in a priority basin - Breede Analysis of commodities by basin water risk & production value/volumes to prioritize
- 10. The case of M&S with Woolworths Data upload into the Water Risk Filter & completed assessment # of Fabric Mills per river basin High No/Limited Bubble size reflects 2013 volume in pieces Yangtze China (other) BeiJiang (Pearl) Dong Jiang (Pearl) Xi Jiang (Pearl) Turkey Hong Kong Cauvery River Indus 1,5 2,0 2,5 3,0 3,5 4,0 4,5 - 10 20 30 40 50 60 Ceres, South Africa Stewardship guidelines; training, awareness, collective action in a priority basin Analysis of commodities by basin water risk & production value/volumes to prioritize
- 11. Long-term WUE programme in-house Water Risk Filter – processing sites Climate change risk analysis – farm level Water Stewardship strategy – farms & processing Water audits at selected processing sites Do previous water sustainability steps speak to WRF results Selected sites: Biobulk wastewater treatment facility - ↓COD, biogas, recycle wastewater Selected sites: Member of Stellenbosch River Collaborative Leads to key actions NB to Eerste River, including renovation of Stellenbosch WWTW – the initiating point of action
- 12. How do Water Risk analysis & Water Stewardship target resilience and competitive advantage?
Editor's Notes
- The other day I was helping my daughter learn the hydrological cycle. Do you remember that? Clear definitive processes enshrined in science. To me, it feels nice and safe and – LOGICAL. But then we add a layer – HUMANS. And when you bring them and their water use habits together with the water cycle, you get THIS. A hydro-illogical cycle. Because humans only really respond when there is a crisis. And guess what – we are HERE! It is crisis time. And for someone in the sustainability profession only one slogan applies: NEVER WASTE A GOOD DROUGHT – while everyone is actually listening to you!
- But jokes aside, the drought is not to be taken lightly. Out of 22500 settlements in SA, a total of 8137 settlements are still affected by drought at the moment. Northern, Western and Eastern Cape in particular – and some parts in East are still recovering. This, of course is of key importance to industry, and the effects of drought on industrial production are well-understood. I am sure that the speaker following me will have more interpretation on what e.g. a level 5 water restriction means for industry in Cape own. And while the City of CT is embracing the concept of “the new normal”, there is scientific evidence to back up the argument that physical water risk is real with the onset of climate change. SPI – standardised precipitation index (does rainfall, but not ET)
- The climate change predictions from the CSIRs downscale of global climate models published 2015 indicates the changes in temperature as well as changes in precipitation by 2100. The current global temperature trends – (we are once again set to have a record warm year in 2017) and the drought map I showed you of SA right now – strongly resembles the predicted changes in rainfall as per CSIRs model. So in SA it is very clear that physical water risk is very real. But there are others as well.
- We tend to think of physical risk – floods and droughts when we think of water risk. But 2 other major categories are also important: Reputational risk is realised when your brand is linked to bad practice or poor water management (eg here – polluters in clothing manufacturers supply chain). Regulatory risk when companies are not compliant or operating in weak regulatory frameworks. Physical, reputational and regulatory all of result in a financial risk. Corporates are often concerned about their ‘triple bottom line’ but even companies only concerned about financial risk need to pay close attention to water risk. BUT how do you determine water risk to you business?
- There are multiple tools to determine risk. One of these is the WWF WRF – a global tool that was released in 2012 and is regularly upgraded. Basically it assesses your business risk according to location and commodity (basin risk), as well as at the company level (with a questionnaire). The results indicate the key basin and company risks that the business faces. The global tool is well-recognised and used and especially useful for large industries with a global footprint. Recognising the need for a more fine-scale analysis that is more suitable at the national level, the WRF was downscaled in SA in 2016 – using relevant SA datasets to give better detailed assessments. Since last year, over 2300 business sites and over 3100 commodities have been assessed with the downscaled WRF. It is easy to find on the web, keywords to use are WWF and Water Risk Filter. The downscaled version is built into the global one and can be accessed through it.
- Water stewardship really means – a shift in mindset regarding water. To embark on a journey to be a responsible user within the fenceline and to extend that to become an active player and contributor beyond the fenceline. Why? Because water connects us all. It is the most sensible commodity around which to seek collective action. It is neutral, it is an eternal traveller and it is our basis for life and dignity. It appeals to the essential core of morality in us. WS looks at water at multiple scales and from multiple angels – water quantity, quality, water governance and important water-related areas (environmental).
- AWS is a global standard applicable to wide range of industry – giving a roadmap for WS implementation. Commenced in 2008. 41 – subscribed to be certified globally, at least 4 large SA industry players are negotiation. Many more are looking to it as roadmap without aim of certification. 145 people from 25 different organisations have attended and completed the AWS water stewardship training in SA and southern Africa.
- Identifying risk is not about risk avoidance and pulling out – but asking the right questions (of suppliers and managers) and ensuring the right plans are in place to mitigate risk. The Breede water stewardship initiative is active to this date (2013 – 2017) and likely to continue for at least another 3 years.
- Especially for the food retail industry – your key water footprint and consequently water risk - lies at the farm level! This may well influence your entry point in your water stewardship journey. It has for Woolworths – their key focus is to embrace water stewardship in their good business journey, their production standard and to pilot collective action in water stewardship in key sourcing areas in SA.
- In summary, I would like to return to the key topic of this conference. Knowing your water risk gives you a distinct insight into where your focus needs to be in order to grow resilience. Being at the forefront as a company embarking on water stewardship, will set you apart from others. Typically water stewardship is publically disclosed and reported, and it is very comprehensive around water issues (quantity, quality, governance and environmental – within the fenceline and beyond). It talks to behaviour – embarking on a water stewardship journey basically means a shift of mindset. It is a commitment to do things differently from hereon forward. And finally, it is also local. Carbon is a topic that has a global scale. Water scale is at a catchment level. Water is variable in time and location (e.g. not as static as forests, minerals, species) Water is finite & renewable – IT IS CYCLIC & COMPLEX! Water is non-substitutable (unlike alternative energy) Water is a local resource & cannot be moved far (basin focus, not global focus like carbon) Water is fundamental to life and human dignity (juggle many aspects: economic good & social good & ecological good = political matter)