introduction to the aqua gauge - cefic · © irbaris llp 2014 ! ad-hoc ! reactive ! ... corporate...

This document is solely for the use of client personnel. No part of it may be distributed, quoted, or reproduced without the prior written approval of Irbaris LLP. This material was prepared by Irbaris for use during an oral presentation, it is not a complete record of the discussion. Copyright: Irbaris LLP 2014

Introduction to the Aqua Gauge

November 2014

CEFIC

2 AquaGauge.141112 © Irbaris LLP 2014

§  Ad-hoc §  Reactive §  Business case

difficult

§  Often absent §  Logistically,

commercially, legally challenging

Many companies have done some work on water, but systematic progress can be difficult

Corporate

Sites Supply chain

§  Incomplete §  Inaccurate

§  Often disjointed §  Lack of senior engagement

§  Fragmented §  CSR or incident-led §  Ill-defined objectives

or success measures


The Ceres Aqua Gauge was developed by Irbaris through engagement with leading investors, companies and NGOs

For companies, the Aqua Gauge helps: –  Frame and assess all of the options for

managing water impacts & risk –  Compare performance relative to

leading practice in each area –  Prioritize future actions and improve

For tool is also being used by investors to assess company performance (e.g. Calpers) The Excel tool and accompanying report can be downloaded from: http://www.ceres.org/issues/water/corporate-water-stewardship/aqua-gauge


MEASUREMENT

DISCLOSURE

ENGAGEMENT

MANAGEMENT

Activities grouped into four categories…. Definitions provided for each activity….

No Action Company has not taken action

Initial Steps Action has been taken but implementation is still underway

Advanced Progress Action has been taken. Good progress toward leading practice

Leading Practice Action is consistent with what leading companies are doing or aspire to do

Collection and analysis of water related data

Processes and procedures to manage risk

Engaging internal and external stakeholders

Availability, format and nature of information

The Aqua Gauge evaluates company performance in over 20 individual risk management activities


The Aqua Gauge is being used by a growing number of the world’s leading companies


The tool produces a rapid, intuitive summary of the strengths and weaknesses of a company’s water risk management

MEASUREMENT

ENGAGEMENT

DISCLOSURE

Leading Practice

Advanced Progress

Initial Steps

Data gathering

Risk assessment

1.1 Own use1.2 Own impacts

1.3 External factors1.4 Stakeholder perceptions

1.5 Suppliers

1.6 Own operations

2.8Supplier standards/ practices

2.9 Business planning

2.10Product design

3.1 Local communities

3.2 Employees

3.3 Suppliers

3.4 Government & regulators

3.5 NGOs & community groups

3.6 Other industries

3.7 Customers

4.3 Audited/assured

Business planning

4.1 Water related information

4.2 In Financial filings

2.11Opportunity identification

1.7 Supply chain

2.1 Board Oversight

2.2 Senior management

2.3 Public policy/lobbying positions

Governance

2.4 Public statement/policy

MANAGEMENT2.6 Wastewater standards

2.7 Watershed risk plans

Policies & standards

2.5 Goals/Standards for withdrawals


The tool can also be used to compare performance with industry peers or other leading companies across industries

MEASUREMENT

ENGAGEMENT

DISCLOSURE

Leading Practice

Advanced Progress

Initial Steps

Data gathering

Risk assessment

1.1#Own$use$1.2#Own$impacts$

1.3#External$factors$1.4#Stakeholder$percep8ons$

1.5#Suppliers$

1.6#Own$opera8ons$

1.7#Supply$chain$

2.8#Supplier$standards/$prac8ces$

2.9#Business$planning$

2.10##Product$design$

3.1#Local$communi8es$

3.2#Employees$

3.3#Suppliers$

3.4#Government$&$regulators$

3.5#NGOs$&$community$groups$

3.6##Other$industries$

3.7#Customers$

4.3#Audited/assured#

Business planning

4.1#Water$related$informa8on#

4.2$In$Financial$filings#

2.11#Opportunity$iden8fica8on$

Company A

Company B

2.1#Board$Oversight$

2.2#Senior$management$

2.3#Public$policy/lobbying$posi8ons$$

Governance

2.4#Public$statement/policy$

MANAGEMENT 2.6#Wastewater$standards$

2.7#Watershed$risk$plans$


2.5#Goals/Standards$for$withdrawals$

1. Compare Performance…. 2. Identify Gaps…. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9

2.10 2.11 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4.1 4.2 4.3

Company A Outperforms Company B Outperforms

Data collection in facilities & watersheds very strong

Track data across the supply chain systematically

Wastewater standard & watershed understanding very strong

Strength in developing new water-sensitive products

Significant time & effort engaging supply chain, governments & customers

Clear understanding of current and future risks

Risk in own operations well mapped

Clear position on public policy

Local communities engagement programs

Engagement of other industries

= both companies at least ‘Advanced Progress’

Our work assessing a range of companies has built a detailed understanding of cutting edge water risk management practices and how they can be applied in different situations

DISGUISED BASED ON ACTUAL ANALYSES

3. Set Priorities….


Reviews we have conducted to date have identified a wide range of challenges for companies to address

1.1 1.2

1.4

1.6

1.7

2.1

2.2

2.3

2.5 2.6

2.7 2.8 2.9 2.10

3.1

3.2

3.3

3.4

3.5

3.6

3.7

4.3

2.4

2.11

4.1 4.2 1.3

1.5

EXAMPLE C: FOOD COMPANY

1.1 1.2

1.4

1.6

1.7

2.1

2.2

2.3

2.5 2.6

2.7 2.8 2.9 2.10

3.1

3.2

3.3

3.4

3.5

3.6

3.7

4.3

2.4

2.11

4.1 4.2 1.3

1.5

1.1 1.2

1.4

1.6

1.7

2.1

2.2

2.3

2.5 2.6

2.7 2.8 2.9 2.10

3.1

3.2

3.3

3.4

3.5

3.6

3.7

4.3

2.4

2.11

4.1 4.2 1.3

1.5

1.1 1.2

1.4

1.6

1.7

2.1

2.2

2.3

2.5 2.6

2.7 2.8 2.9 2.10

3.1

3.2

3.3

3.4

3.5

3.6

3.7

4.3

2.4

2.11

4.1 4.2 1.3

1.5

EXAMPLE D: POWER UTILITY

EXAMPLE A: AUTOMOTIVE COMPANY

EXAMPLE B: OIL AND GAS COMPANY

1.5

1.5 1.5


Alliance for Water Stewardship Certification of watersheds

There are many tools, intiaitives and working groups that can help companies to assess and to manage water risks

WWF/DEG Water Filter Detailed assessment of site levels risks

WRI Aqueduct Detailed data on basin specific threats. Being expanded

Water Footprint Network Methodology for developing corporate water footprint

Ceres Aqua Gauge Holistic tool to frame, assess and prioritise all water management activities across the business

CDP Water Disclosure Information disclosure on corporate water performance

GRI G4 guidelines for reporting water-related information

GEMI Local Water Tool Assess local water risks and develop practical responses to manage water and reduce risk

WBCSD Global Water Tool Database of global water risks by geography

Others such as Lifecycle Assessments, WIIX, Water Risk Monetizer

NOT EXHAUSTIVE

MEASUREMENT DISCLOSURE ENGAGEMENT MANAGEMENT

CEO Water Mandate Guidelines for stakeholder engagement


Water Assessment Tool Example 1: Aqueduct

Creator WRI

Applicability Global (and regional basin studies)

Output format Map of sites in stressed areas

Features

Maps based on 12 water risk indicators §  Physical risks (quantity) §  Physical risks (quality) §  Regulatory and reputational risks Provides aggregated overall risk score for each watershed Maps on projected climate change

Inputs Required

Input locations for study Prioritise risk indicators or chose pre-set sector-based weighting of indicators


Water Assessment Tool Example 2: Local Water Tool

Creator GEMI (in cooperation with WBCSD)

Applicability Global

Output format Tabular listing of risks for each site

Features

Provides summary of external impact and business risks for both influent and effluent Provides repository to share information Supports development of management plans

Inputs Required

Site data (e.g. effluent, water use) Local water data, Assessment of external stress conditions


Water Assessment Tool Example 3: Water risk filter

Creator WWF and DEG

Applicability Global

Output format Portfolio report (risk matrix, maps), Facility report (risk indicators, maps, mitigation actions), CDP-ready information

Features

Describes facility and specific basin-related water risk The tool can also include: §  Map overlays (e.g. water scarcity,

biodiversity, and climate change, §  Country water profiles §  Mitigation information

Inputs Required Quantitative and qualitative site data, and data on corporate risks


There are also initiatives providing guidance and standards to support management and engagement

Alliance for Water Stewardship §  Outlines criteria and indicators

–  Manage water at the site level –  Steward water management beyond

site boundaries at catchment level

§  Includes a six-step continual improvement framework enabling sites to commit to, understand, plan, implement, evaluate and communicate water stewardship actions.

§  ISEAL member and uses standard setting, assurance and impacts codes

CEO Water Mandate To support signatory companies, provides guidance in numerous areas: §  Approach to corporate water

disclosure addressing the complexity and local nature of water resources

§  Framework for Responsible Business Engagement with Water Policy

§  Human rights and corporate water stewardship strategies and policies


There are many different tools and initiatives; the Aqua Gauge can help guide companies as to which matters

MEASUREMENT

ENGAGEMENT

DISCLOSURE

Leading Practice

Advanced Progress

Initial Steps

Data gathering

Risk assessment

1.1#Own$use$1.2#Own$impacts$

1.3#External$factors$1.4#Stakeholder$percep8ons$

1.5#Suppliers$

1.6#Own$opera8ons$

1.7#Supply$chain$

2.8#Supplier$standards/$prac8ces$

2.9#Business$planning$

2.10##Product$design$

3.1#Local$communi8es$

3.2#Employees$

3.3#Suppliers$

3.4#Government$&$regulators$

3.5#NGOs$&$community$groups$

3.6##Other$industries$

3.7#Customers$

4.3#Audited/assured#

Business planning

4.1#Water$related$informa8on#

4.2$In$Financial$filings#

2.11#Opportunity$iden8fica8on$

Company A

Company B

2.1#Board$Oversight$

2.2#Senior$management$

2.3#Public$policy/lobbying$posi8ons$$

Governance

2.4#Public$statement/policy$

MANAGEMENT 2.6#Wastewater$standards$

2.7#Watershed$risk$plans$


2.5#Goals/Standards$for$withdrawals$

1. Compare Performance…. 2. Identify Gaps…. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9

2.10 2.11 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4.1 4.2 4.3

Company A Outperforms Company B Outperforms

Data collection in facilities & watersheds very strong

Track data across the supply chain systematically

Wastewater standard & watershed understanding very strong

Strength in developing new water-sensitive products

Significant time & effort engaging supply chain, governments & customers

Clear understanding of current and future risks

Risk in own operations well mapped

Clear position on public policy

Local communities engagement programs

Engagement of other industries

= both companies at least ‘Advanced Progress’

3. Set Priorities….


David Lyon [email protected] www.irbaris.com LONDON Irbaris LLP Euston Tower 286 Euston Road London, NW1 3DP England Mobile: + 44 (0) 7717 898855 Office: +44 20 3463 8787

Contact details

William Lynn [email protected] WASHINGTON DC Irbaris (US) LLP 1875 Eye Street Washington DC 20006 United States of America Office: +1 (202) 429 8424

introduction to the aqua gauge - cefic · © irbaris llp 2014 ! ad-hoc ! reactive ! ... corporate...

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