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Water Stewardship March 9, 2013 Mumbai

Indian businesses face significant water [email protected] THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 1: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

Water StewardshipMarch 9, 2013

Mumbai

Page 2: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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A shared resource at risk

Domestic Agriculture

IndustryEcology

• 97 million without drinking water;

814 million without sanitation

• 80% urban sewage untreated

• Demand to grow by 40% by 2025

• Largest water consumer;

highest water footprint

• Demand to grow by 10% ~

675 cubic km by 2025

• Sector with highest

demand growth

• Expected demand to be

~ 92 cubic km by 2025

• No allocation for ecology

• Threatened habitats, declining

aquatic biodiversity

• Dolphins, gharials, and many

indicator species endangered

Priority

users

Page 3: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 4: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Our water future?

By 2030, demand will be 50% more than supply

Highest groundwater user in the world

120th among the 122 nations in terms of water quality

Page 5: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Key sectors impacting water

Thermal 75% of India’s capacity addition in 12th Plan from coal

based plants;

Water demand to increase by 4-30 times (2010-2050)

Pulp &

Paper Consumes 5 times more water than the global best;

85% water from surface sources;

40% mills are accused of polluting water sources

Textiles Employs 35 million; 17% foreign Exchange;

Exports 25 billion cubic meters as virtual water through

cotton textiles;

Almost 50% of pesticides used in the cotton

Page 6: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Steel While 95% water can be recycled, as much as 85% of water

is discharged as effluents;

Water demand to rise by 350%

Sugar 50 million people; 9 states;

72% inherent water in sugar cane not harnessed;

Sugar mills guzzle water; India accounts for 22% global

production

Beverages Water usage ratio lower than global best

Increased brand value risk due to high water footprint across

its supply chain

Key sectors impacting water

Page 7: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Brewery: Jan 2013, drought led to closure of brewery in

Aurangabad and distilleries in Marathwada

Refinery: In April 2012, a refinery in Karnataka shut two of its

units down for 45 days

Thermal plants: 2010 & 2012 water scarcity forced closure

of plants

Water risks: physical

Physical/disruption - through scarcity, poor quality and

infrastructure neglect

Page 8: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Central Ground Water Authority

November 2012 norms on siting

and water abstraction

Pollution Control Boards and

Courts: Zero discharge norms

Planning Commission: Water

audits, disclosure

Water risks: regulatory

Regulatory - change in the rules of the game, less

coherence/consistency

Ministry of Water Resources/Ministry of Corporate Affairs: National

Bureau of Water Use Efficiency

Page 9: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Beverages: Citizen protests in Kerala,

Rajasthan

Thermal: Maharashtra

Textiles: Tirupur, Pali

Distilleries: Uttar Pradesh

Water risks: reputational

Reputation – conflicts, distress, huge potential loss of market share,

access, social and physical license to operate

Page 10: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Industry underestimating risks

Legend : Size of the bubble represents intensity of physical risk

for the sector

R

Beverages

Textiles

Paper

Steel

Thermal

Sugar

Water risks as perceived by the industries today

Severe

Low Severe

Reputa

tional

Ris

k

Regulatory Risk

Page 11: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Risk perception varied across sectors

Regulatory

RiskPhysical Risk

Reputational

Risk

Steel

Thermal

Power

Sugar

Paper

Beverages

Legend

Low

Severe

Textiles

Page 12: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Industry response: mostly within fence

& short term

?

Indian companies are doing a lot

Within the Company

Fence

At a Basin Level

Watershed management &

groundwater recharge

Is this enough to insulate

from long term water risks?

• Installing rooftop

rainwater harvesting

• Wastewater treatment

and recycling

• Use of advanced

technologies like zero

discharge for treatment

• Heat recovery

Page 13: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Business & Basin risks

Page 14: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 16: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 17: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 18: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 19: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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From beginner to a leader

Time

Page 20: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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What needs to be done?

Know your water footprint

Page 21: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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10 litres of waterfor 1 sheet of A4-paper

Page 22: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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1 Latte = 208 litres of water per cup

Lid

Cup

Wrapper

Water

Sugar

Milk

Coffee

Energy

2.4 liters

5.7 liters

0.8 liters

7.6 liters

49.5 liters

142.8 liters

Page 23: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Key water-related challenges:

Introduction

Page 24: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Basin water

governance

Development, supply chain and

other drivers

Know our basin better!

Page 25: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Acknowledge

competing water

usersECOLOGY

Page 26: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1 2 3 4 5 6 7 8 9 10 11 12

Months

Flo

w V

olu

me,

MC

M

maintenance low maintenance high natural total Present

Environmental flows

Page 27: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Know water risks

better

Page 28: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 29: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Solution lies in working together

Shared Risk

Businesses

• Physical (direct &

supply chain)

• Reputation

(perceptions, conflicts)

• Regulation (license to

operate; cost of water)

Economic value

Government

• Physical (allocations,

trade-offs)

• Social/economic

• Institutional

Political

Communities

•Physical

•Equity and access

• Governance

Ecology & livelihoods

Page 30: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Collective action to Secure water for People, businesses and nature

www.wwfindia.org

Page 31: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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Page 32: Indian businesses face significant water risks...suresh@wwfindia.net THANK YOU Title Indian businesses face significant water risks Author Pareek, Mrinal;Suresh Created Date 3/21/2013

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[email protected]

www.wwfindia.org

THANK YOU