Carbon Disclosure Project 2011
Water-related risks and opportunities in direct operations and the supply chain
Exposure to risks and opportunities
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
4% 32% 7% 37% 12% 16% 64% 60% 55% 35% 76% 63% 24% 38% 12% 8% 29%
Experiencing business impacts
• Approximately 40% of respondents have experienced water-related business impacts in the past five years; severe weather events and water shortages are reported most frequently.
• In 2010, Kimberly-Clark suffered a production stoppage costing US$2 million due to a short-term seasonal drought; the company responded by installing wastewater treatment equipment and other technologies to ensure reliable water supplies and reduce future risk.
Seizing opportunity 27%
• A high percentage of respondents report water-related opportunities (76%) including the ability to leverage products with water-related benefits and products that promote water efficiency or provide water treatment.
Managing the linkages and trade-offs between water and carbon
Consumer Staples
Global 500
Risk in direct operations
Yes
Consumer Staples
Global 500
Risk in supply chain No Don’t know
Consumer Staples
Global 500
Opportunities
• Compared to the Global 500 (72%), respondents in the sector have a greater ability to identify linkages and trade-offs between water and carbon (88%).
• Most respondents recognize that water conservation saves energy and GHG emissions because electricity is required for transporting, heating/cooling, and treating water used in operations. Most respondents also acknowledge the trade-offs; energy conservation projects can lead to increased water use.
Responding to risk
• 72% of Consumer Staples respondents report exposure to water-related risk, compared to 59% in the Global 500. The percentage of respondents identifying exposure to risk in direct operations (64%) and the supply chain (60%) are similar, indicating that risk in the supply chain could be significant.
• However, a large percentage of respondents are able to identify whether their supply chain is exposed to risk (76%) and identify key water-intensive inputs from regions with water-related risk (48%) compared to the Global 500 (62%, 31%).
“We are continually working towards reducing our impacts on the environment, including water in recognition that this very important resource is crucial to our ability to grow our business in a sustainable manner in the short, medium and long term.” British American Tobacco
Unilever: water-related product innovation
Unilever is already measuring water in products and water used by consumers in water-scarce countries. The company has set ambitious targets for different product types and is driving product innovation in water purification technologies.
As an example, Pureit is an affordable in-home water purifier that makes unsafe water potable; it provides water ‘as safe as boiled’ without needing electricity or pressurized tap water. Unilever has already made clean drinking water available to over 25 million consumers in India and has recently launched Pureit in Bangladesh, Mexico, and Indonesia.
The company aims to reach 500 million people worldwide by 2020. 29
Percentage of respondents
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