Global 500
Figure 5: Reported exposure to water-related risk in direct operations and supply chain
Exposed to risk in direct operations only
Exposed to risk in both direct operations and supply chain
32% 41%
“Water… is fast becoming one of the planet’s most stressed resources. Access to clean water has emerged as a critical issue affecting economic activity, development, and business around the world.”
4% 23% IBM
Exposed to risk in supply chain only No risk reported or uncertain
Almost two thirds of companies have identified water-related opportunities, and most opportunities are near-term
Opportunities with the potential to generate a substantial change in revenue or business operation are reported by 63% (119) of respondents. Companies frequently report cost savings from increased water efficiency or from reductions of other inputs tied to water (e.g. energy, agricultural products). Many respondents report the potential to develop water-related products or services, and either avoid reputational risk or build brand value. 79% of opportunities are characterized as near-term (now or within five years), suggesting that water-related issues have immediate potential for creating value.
Colgate Palmolive reports an improved cleaning process at a manufacturing site in South Africa that saves 388,000 liters of water annually and allows the facility to
produce an additional two tons of product daily given reduced downtime. Cisco Systems worked with three of its printed circuit board assembly partners to implement a new soldering practice that rendered the water-intensive wash stage of the manufacturing process unnecessary. By 2010, this new practice had been implemented company-wide, saving Cisco Systems over US$1 million each year with no adverse impact on product quality. Procter & Gamble re-launched a product this year that has helped strengthen brand presence. The PUR packet is a small packet that helps turn 10 liters of dirty water into clean, drinking water. Procter & Gamble’s non-profit business model for the PUR packet has helped produce more than three billion liters of clean drinking water through global relief organizations including AmeriCares, CARE, International Federation of Red Cross and Red Crescent Societies, Population Services International, and World Vision.
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