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%
3% 24% 7% 37% 29% 38% 3%
12% 85%
74% 35% 35% 55% 63% 8% 29%
• In contrast to the high engagement, only 38% of Materials respondents set concrete, quantitative targets or goals compared to 57% in the Global 500.
Experiencing business impacts
• Approximately 68% of respondents have experienced water-related business impacts in the past five years, the highest percentage of any sector. Production losses due to water shortages, flooding, and energy supply disruptions are commonly reported.
Seizing opportunity
• 85% of respondents identify water-related opportunities including the ability to leverage products with water- related benefits.
35% 27%
• Opportunities include developing drought-resistant crop species (DuPont), expanding products and services for the water treatment industry (BASF), and providing products and services focused on water conservation (Ecolab).
Materials
Global 500
Risk in direct operations
Yes Responding to risk
• A high percentage of respondents are able to identify whether they are exposed to risk in direct operations (97%) and the supply chain (71%) compared to the Global 500 (93%, 62%). Frequently reported risks include increased water stress or scarcity, flooding, statutory water withdrawal limits/changes to water allocation, and reputational damage.
• According to respondents, risk exposure is also high: 76% of Materials respondents report exposure to risk either in direct operations or the supply chain compared with 59% of companies in the Global 500.
• 26% of respondents have more than half of their operations located in regions at risk, compared with only 11% in the Global 500.
• Engagement on water is also strong: 76% of respondents report board-level oversight of water policies, strategies, or plans, higher than any sector.
Barrick Gold: cost savings from water recycling
At one mine in Barrick Gold’s portfolio, the company assessed and implemented enhanced recycling of process water, which ultimately eliminated the need to develop a nearby treatment facility to process and discharge underground mine seepage. This process reduced consumption of freshwater and avoided additional capital and operating costs associated with the treatment facility. In the future, Barrick Gold plans to evaluate similar opportunities at other mines to further reduce water use, capital expenditures, and operating costs.
39 Materials
Global 500
Risk in supply chain No Don’t know Materials
Global 500
Opportunities
Managing the linkages and tradeoffs between water and carbon
• 85% of respondents are able to identify linkages and trade-offs between water and carbon, compared to 72% in the Global 500.
• Linkages identified by Materials respondents include the energy requirements for transporting, heating/ cooling, and treating water used in operations. Trade-offs are caused by specific technologies. Teck Resources reports that distant seawater is being considered in place of local freshwater resources in water-stressed areas of Chile, but transporting that water comes at a significant energy cost.
Percentage of respondents
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