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% 24% 7% 37% 48% 38% 8% 32% 8% 29%


Responding to risk


• Respondents report more exposure to water-related risk in direct operations or supply chain (72%) than the Global 500 (59%).


• Only 36% of Energy respondents report board-level oversight of water-related policies, strategies or plans, which is lower than any other sector and the Global 500 (57%).


72% 35% 55% 44% 63% 60%


• Energy is also the only sector in which some respondents report that no one is responsible for these policies, strategies or plans (8%).


Experiencing business impacts


• 48% of respondents in the sector have experienced water-related business impacts in the last five years, compared to 38% in the Global 500.


27% 8% Energy


Global 500


Risk in direct operations


Yes Energy


Global 500


Risk in supply chain No Don’t know Energy


Global 500


Opportunities


• Several business impacts are associated with company license to operate; Anadarko reports that a government-imposed moratorium on drilling in the Gulf of Mexico, a more stringent regulatory environment, and reputational damage to the Oil, Gas & Consumable Fuels industry have impacted the company’s ability to operate in the Gulf. To mitigate this risk, Anadarko has committed to improving transparency around hydraulic fracturing to dispel public concerns, and has also focused on stakeholder engagement, the safety of its operations, continued environmental stewardship, and involvement in the policy-making process.


“Penn West recognizes the importance of water resources to all stakeholders. We are committed to respectful and responsible use of the resource.” Penn West Exploration


“In 2011, BP is investing in water management approaches to develop a consistent approach to understanding the risks and opportunities related to water withdrawals, use, and disposal.” BP


Seizing opportunity


• 60% of Energy respondents identify water-related opportunities.


• Respondents report opportunities that include the ability to implement water and wastewater treatment technologies for use both by Energy companies and by those in other sectors, increased water recycling and reuse, and competitive advantage gained through improved brand value.


Sasol: working with communities to reduce risk


Sasol has begun to help maintain the potable water and sewage treatment plants in municipalities where they have operations to reduce water risks to the company and community. Sasol has finalized an agreement with the Govan Mbeki Municipality in Secunda on a joint water conservation initiative and a similar public-private partnership agreement on municipal water conservation with the Emfuleni Municipality in the Gauteng Province is close to being finalized. Sasol also participated in a comprehensive water quality awareness campaign in Sasolburg where students were able to perform hands-on water testing in order to understand how water quality testing is performed.


31


Percentage of respondents


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