Carbon Disclosure Project 2011
Respondents’ ability to provide water-related usage data has improved
The proportion of companies able to report water withdrawals (95%, 181) has increased since 2010 (86%, 129), as has the ability to report water recycling/reuse data (58% or 111 compared to 42% or 63 in 2010). The ability to measure and report water data is essential for better management of water resources and demonstrates an increased awareness of water issues among respondents since 2010. 56% (106) of respondents verify the majority of water withdrawal data, while 34% (64) verify the majority of recycling/reuse data, suggesting a desire to rely on data accuracy in water management decisions and reporting. More companies also report action to manage water resources or engage stakeholders on water issues this year (94%, 179) compared to 2010 (88%, 132).
Energy companies report high levels of risk and low levels of board-level oversight
The Energy sector has the lowest response rate (47%, 25 respondents) of all sectors and the lowest number of respondents that report board- level oversight of water-related policies, strategies or plans (36%, 9). Energy is also the only sector to have respondents report that no one has responsibility for water policies (8%, 2). A low level of board oversight is surprising since 72% (18) of Energy respondents report exposure to water- related risk compared to an average of 59% (113) across all respondents. Detrimental water-related impacts have also affected a greater proportion of respondents in this sector (48%, 12) compared to the Global 500 (38%, 73).
The Consumer Staples and Materials sectors also report high levels of risk, but these sectors have high response rates to the CDP Water Disclosure
Figure 7: Reported exposure to water-related risk and response rate by sector
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Health Care
Information Technology
Consumer staples
Consumer discretionary Industrials Energy
Materials Utilities
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of respondents exposed to risk
information request (Figure 7) and have a higher percentage of respondents with board-level oversight of water policies, strategies or plans. Reported board level oversight in the Materials sector is the highest among all sectors (76%, 26).
The Health Care sector, despite reporting lower levels of risk exposure than the Global 500, has the highest response rate of all sectors (79%, 23).
The Materials, Utilities and Energy sectors report highest exposure to near-term risks in direct operations while the Consumer Staples, Consumer Discretionary and Materials sectors report the highest exposure in the supply chain (Figure 8).
The relationship between water and carbon is widely understood
72% (137) of companies in the Global 500 are able to identify linkages or trade-offs between water use and carbon emissions. These companies understand that water conservation typically saves energy and carbon emissions given that electricity is required for treating, heating/cooling, and transporting water. Woolworths Limited, for example, invested in refrigeration and air conditioning systems at two distribution centers that utilize rainwater harvesting, saving both energy and water (16.4 million liters) in 2010.
Many respondents also acknowledge the trade-offs between water use and carbon emissions. Some projects to mitigate water scarcity may result in higher energy use while some energy
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Response rate
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