Carbon Disclosure Project 2011
The Australia 100 and South Africa 100 have lower response rates and higher levels of reported risk than the Global 500
Despite the acuteness of water stress in Australia and South Africa, companies listed in the two countries have lower response rates than the Global 500. 54 of the largest 100 companies listed in the Australian Securities Exchange (ASX) and 56 of the largest 100 companies listed in the Johannesburg Stock Exchange (JSE) were invited to respond to the CDP Water Disclosure information request because they were considered to be in water-intensive sectors or sectors that are sensitive to water issues in the supply chain. Of the invited companies, 41% (22) responded from the Australia 100 and 46% (26) responded from the South Africa 100. This was the first
year that the CDP Water Disclosure information request was sent to companies listed on the ASX and JSE indices, which meant that many companies responded to the CDP Water Disclosure questionnaire for the first time: 17 of 22 respondents in the Australia 100 and 15 of 26 respondents in the South Africa 100 were first time respondents in 2011.
Water issues should be high on the agenda for Australian and South African companies given that 50% of respondents (11) in the Australia 100 and 58% of respondents (15) in the South Africa 100 have experienced detrimental water-related business impacts in the past five years, compared to 38% (73) in the Global 500. Business impacts reported by companies in the Australia 100 are caused by flooding (property damage and reduced production) and water scarcity due to drought (limited raw material inputs and reduced
Figure 10: Ability to identify water-related risk and opportunity
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
9% 32%
8% 8%
85% 32% 23% 59% 55% 36% 38% 27% 35% 59% 63% 7% 37% 27% 8% 77% 32% 38% 38% 14% 15% 8% 29%
production). Business impacts reported by the South Africa 100 are caused by flooding, water scarcity, declining water quality, increased water prices, and non-compliance with discharge limits.
More respondents in the Australia 100 and South Africa 100 identify exposure to risks in both direct operations and the supply chain than the Global 500, as shown in Figure 10. Respondents from the South Africa 100 report high exposure to risks in direct operations (85%, 22), compared to 59% (13) in the Australia 100 and 55% (105) in the Global 500. Water scarcity is clearly a major driver of risk for these companies: 36% of respondents (8) in the Australia 100 and 46% of respondents (12) in the South Africa 100 indicate that the majority (greater than 50%) of operations are located in regions at risk, compared to only 11% (21) in the Global 500.
Australlia 100
South Africa 100
Risk in direct operations Yes
Global 500
Australia 100
South Africa 100
Risk in supply chain No Don’t know
Global 500
Australia 100
South Africa 100
Opportunities
Global 500
22
Percentage of respondents
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