Meeting the world’s water challenges - PwC Network... · Meeting the world’s water challenges ... • A summary of some of the challenges of effectively managing water resources,

Meeting the world’swater challenges

Introducing PwC’s sustainablewater services

www.pwc.com/sustainability

August 2013

PwC

Contents

Introduction4

Global waterissues 5

Introducing PwC

8

Sustainability

at PwC 9How PwC canhelp 10

Who we haveassisted and how 12

Thought

leadership 24Contacts

25

Two-thirds of the planet is covered by water.

Yet the rivers, lakes and groundwater available tohumans and ecosystems represents less than 1% ofthis total.

August 2013

“We will never know the truevalue of water until the wellruns dry”

Benjamin Franklin

Source: UNEP Vital Water Graphics 2008.

3

PwC

Clean water is an essential resource to human life. We use it for personalconsumption, for our agriculture, and for our industry.

Yet under current population growth and urbanization trends, as much as two-thirds of the world’s population may live in areas with physical or economicscarcity of this precious resource in as little as 10 years.

In both water scarce and water rich regions, continued growth of agriculture,industry and urban consumption patterns drives both increased demand for cleanwater and increased costs for controlling pollution and protecting naturalecosystems.

Yet at the same time as water scarcity is intensifying around the world, and waterpollution is increasing costs of avoiding ecosystem degradation, extreme weather,floods, and other incidences of excess water are also on the rise.

Managing the implications related to 'too much, too little, or too dirty' water, can bea challenging undertaking. This booklet seeks provide some context to thatdiscussion and a few examples of how leading organisations around the world aremanaging their water issues.

This booklet sets out:

• A summary of some of the challenges of effectively managing water resources,

• An introduction to PwC’s offerings around the sustainable use and managementof water resources,

• A collection of recent case studies highlighting how PwC clients have drivenforward their sustainable water strategies,

• A few recent reports we’ve issued on water-related business issues, and

• A listing of contacts around the world who you can speak with about these issues

August 2013

IntroductionWater: Our most precious resource

Introduction Global waterissues

IntroducingPwC

Sustainabilityat PwC

How PwC canhelp

Who we haveassisted and how

Thoughtleadership

Contacts

4

PwC

While much of the earth’s surface is covered by water, over 99% is eithersaltwater or locked in glaciers (UNEP 2008). While the remaining 1%must serve all our human needs, the world’s fresh water resources alsohave an important role to play in maintaining our natural ecosystems.

Yet this limited supply of fresh water has done little to slow growth iswater demand. Global demand for water has increased sixfold within thepast century, more than double the rate of population growth (IWMI2007). The World Bank estimates that water demand may grow morethan 50% between now and 2030 (World Bank 2007).

The UN Food and Agriculture Organisation estimates that 2.8 billionpeople already live in water-stressed areas and that this could rise totwo-thirds of the world’s population by 2025 (FAO 2011).

Water scarcity limits agricultural and industrial contributions toeconomic growth, contributes to poverty, and exacerbatesenvironmental degradation.

Global water issuesThe growing gap between water resources and water demand

Saltwater97.50%

Frozen68.9%

Lakes

and

Riv

ers

0.3

%Freshwater2.50%

What we have:A limited supply of a resource that is un-substitutable

Source: UNEP Vital Water Graphics 2008.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

What we need:Improved water productivity to serve our growing population

0

1000

2000

3000

4000

5000

6000

7000

1900 1950 2000

Water demand per yearincreased from about 500cubic kilometers in 1900to about 3,830 cubickilometers in 2000

Populationincreased from1.6 billion in1900 to 6 billionin 2000

Time

Projections into2030 suggest thatwater demand mayoutstrip supply by 40%

Source: World Bank (2007), Water Resource Group 2030

August 2013

“At The Coca-Cola Company, we are transforming theway we think and act about water stewardship. It isin the long-term interest of both our business and thecommunities where we operate to be good stewardsof our most critical shared resource, water.”

– Muhtar Kent, Chairman andCEO Coca-Cola Company

Groundwater30.8%

5

PwC

Water quality is a serious concern in both high- and low-income countries

High-income countries

• About 59% of water is used for industrial purposes, which generateshigh levels of pollutants . More than 80% of the world’s hazardouswaste is produced in industrial countries (UN-WWAP 2011).

Low- and middle-income countries

• Although only 10% of water use is for industrial purposes, there is a lackof sufficient treatment facilities. An estimated 70% of industrial wastesin developing countries are dumped untreated into waters where theypollute the usable water supply (UN-WWAP 2011).

Water scarcity exacerbates water quality issues

• In addition to limiting economic growth, contributing to poverty, andcausing environmental degradation, water scarcity frequently has theeffect of worsening water quality.

• The same drivers that increase water demand – population growth andindustrialization – also lead to greater amounts ofwastewater discharge.

• Without proper treatment, this wastewater creates serious water qualityproblems. The water quality challenge is further exacerbated as waterscarcity increases, for lower water levels means a higher concentrationof pollutants.

Global water issuesIncreasing levels of water pollution

Issues related to water scarcity and water pollution are oftenclosely related

Higher levels ofwater pollution

Lower levels in surface andground water

Higherconcentration ofpollutants

Negative impactsto wildlife andbiodiversity

Decreasedavailability ofclean water

Greateramount ofpollutants

More waterusers

Increased percapita water use

Geographicconcentrationof pollution

Drivers: Population growth, industrialization, economicdevelopment, urbanization, and climate change

Quantity Quality


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 2013

“Water has been on the Nestlé corporate agendalong before environmental policies andsustainability became an issue; the firstwastewater-treatment plant for one of our factorieswas built back in the 1930s…We have made hugeefforts to reduce water withdrawals for ourfactories. Withdrawals were close to 5 liters perdollar of sales some ten years ago. They are nowbelow 2 liters.”

– Peter Brabeck Letmathe,Chairman of Nestlé

6

PwC

Adapting arrangements for theimpacts of climate change

In recent years record-breaking rains, floods, snowstorms and otherwater-related natural disasters have impacted developed and developingcountries on every continent.

The Intergovernmental Panel on Climate Change special report onmanaging the risks of disasters and extreme weather events portrays clearand growing risks from populations exposed to flood and other water-related natural disasters (IPCC 2012). About 800 million people live inflood-prone areas, and almost one in ten of them is exposed to floods eachyear. (UNISDR 2011).

Floods, storms and other excess water events have exposed thesusceptibility of infrastructure and critical services which sustain our wayof life and maintain safety and security. Over recent years, eventsincluding the 2011 Japanese earthquake and tsunami, severe flooding inThailand and Storm Sandy have shown the severe impact to countries,communities and individuals in and around flooded areas. These eventshave exposed inadequacies in the arrangements for response andrecovery from disasters, resulting in a prolonged and increaseddisruption at a macro level to economies and society, but also at a microlevel for businesses and individuals.

As well as the direct localised impact of natural disasters, the frailty ofglobal supply chains for government and businesses alike has beenexposed. The globalisation of supply chains due to increasing efficienciesand expanding markets means that recent flooding events have led todisruption of critical resources.

Global water issuesFloods, storms and other excess water events


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 2013

“Having the ability to manage responsibly andproperly in areas of water scarcity is an enabler tobeing in that operation in the first place. Having theability to manage excessive water, particularly ifit’s coming in extreme storm events, is also anenabler.”

Tom Albanese,CEO Rio Tinto

7

Whether natural or man-made, flooding events have severe social,economic and environment impacts. These events are becoming morefrequent and their impacts more widespread. As the effects of climatechange are felt, the need increases to adapt to meet future demands. It isessential that organisations including government, critical services andinfrastructure operators, and businesses have prepared and maintainedan effective resilience capability to achieve a secure and sustainablefuture.

Key considerations :

Ensuring appropriate investment levelsin resilience and protection of essential

infrastructure and businesses

Planning effectively to respond todisasters using an integrated

approach and capability

Development of legislation andregulation to manage the impacts

of natural disasters

Validating arrangementsthrough training and testing to

ensure that they are robust

PwC

PwC is a global advisory firm operating in 4 main areas; tax, audit andassurance, advisory, and legal. It is also the world’s largest professionalservices firm.

Audit and Assurance: We provide audit and non-financial assuranceservices to water providers and water users around the world.Recognising that all companies want assurance teams that know theirissues and understand their business challenges, PwC’s waterprofessionals bring a high level of knowledge to their work.

Introducing PwC

LegalAdvisory

TaxAudit andAssurance

PwC

Advisory: Our advisory practice puts water sector companies andother water stakeholders at the leading edge. We are able to deploytrusted water specialists with unparalleled knowledge of businessprocesses in-depth expertise around areas like: business planning,compliance and risk management, to project financing, capital assetmanagement, and accounting expertise.

Tax: We have a specialist Sustainability and Climate Change Tax team,which is made up of an international network of professionals with anin-depth knowledge of both local and international markets and theirtax regulations.

Legal: PricewaterhouseCoopers Legal LLP and other legal firms withinthe PwC global network assist project developers, investors, banks,plant constructors and service providers with feasibility and businesscase studies through to completion and disposal of projects.

PwC People

180,520

Global coverage:

158 countries

776 locations


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 20138

PwC

PwC sustainability services

PwC’s Sustainability and Climate Change team helps both public and private sector clients address the specific and immediate issues relating tosustainability, as well as helping with longer-term strategic thinking. The team has a unique blend of skills, experience and tools, as well as scale andreach in all service areas. PwC’s global sustainability practice includes 700 practitioners operating over 60 countries. The team offers services across atleast 6 main areas: (1) Strategic sustainability, (2) Governance, risk and compliance, (3) Supply chain and operations, (4) Policy and economics, (5)Assurance and reporting, and (6) Tax and the regulatory environment.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 2013

PwCSustainability

Services

9

PwC

How we can help

PwC in the water sector

PwC is a leading provider of professional services to regulated and non-regulated utilities in the water sector. We are committed to adding value to ourclients and believe an in-depth understanding of industry issues is central to the delivery of services to those in the water sector.

For water infrastructure, PwC support extends across the asset lifecycle, from planning, financing, tender and procurement to construction,operations, resilience and disposal.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201310

InfrastructureFinancing

Public-PrivatePartnerships

PortfolioManagement

RiskManagement

OrganisationandInfrastructureResilience

EmergencyManagementand BusinessContinuity

IntegratedWaterResourceManagement

PwC

Water issues impact not just those in the water sector, but water users as well. From agriculture to extractives to consumer goods and beyond,companies across all sectors are recognizing the importance of water to their operations and building robust water management strategies.

Companies often start this journey by quantifying their water usage and its socio-economic and environmental impacts. From there they are in a betterposition to put in place systems to manage water-related risks and take advantage of water- linked opportunities. Finally, internal and externalstakeholders are increasingly driving water users to disclose their water usage and water stewardship activities.

How we can help

PwC and water users


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201311

Measurement• Water footprint• Lifecycle

assessment

Assurance &standards• Data• Controls• Systems

ImpactAssessment• Social• Economic• Environmental

Risk Management• Physical• Regulatory• Reputational

Opportunities• Cost savings• New markets• Technologies

Reporting &disclosure• Water

reporting• Integrated

reporting

PwC

Business challenge

The client wished to build itsunderstanding of the relative impacts ofenvironmental, social, and commercialsustainability issues, including waterconsumption and water emissions(e.g. eutrophication). Its aim was toidentify, evaluate and prioritise theseissues and their potential impacts for thebusiness across the value chains of itsproducts.

Solution and approach

PwC led a review of two of the client’s leading brands to identify and map top-tiersustainability issues across the value chain for a typical product.

The work included qualitative and quantitative assessment to quantify the waterand carbon footprints of the products, using a range of life-cycle analysistechniques, input from internal and external experts, and research of productioneconomics across the product value chain. The analysis identified water as a keyissue for prioritisation, especially in water-scarce regions.

The work was then used to support a series of three-day raw materials workshopswith the client’s R&D and procurement teams globally. The approach involveddeveloping potential ‘2020 scenarios’ to explore the future implications forsourcing key raw materials.

PwC also helped the client with a similar project focused on a third brand, whichinvolved calculating the water and carbon footprint and analysing water andcarbon issues along the product value chain.

Benefits and value

The product sustainability impactassessments conducted by PwC helpedthe client to understand and prioritisethe key issues impacting its businesses.For example, it showed that the greatestimpacts were not within the client’s ownoperations but within its agriculturalsupply chains.

The assessment was also used to helpinform the client’s overall sustainability strategy.

Project in focusWater foot-printing in product life-cycle assessment for a major fast-moving consumer goods company


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201312

PwC

Business challenge

Kering wanted to developenvironmental profit and loss (EP&L)accounts for each of their brands inorder to understand the environmentalimpacts across the value chain,including water availability andpollution. Following the success of thePUMA EP &L, Kering committed todevelop a Group wide EP &L by 2015.Starting with one brand, Gucci, to pilotthe improved methodology.


Since 2011 PwC have been working with Kering to further develop the EP&L methodology, with aparticular focus on aggregating management useful information.

Following joint decisions on what information is required to best represent Kering’s activities andsupply chain for the EP&L, PwC engaged with the brands and its suppliers to gather valuable newinformation.

PwC quantified Gucci’s environmental footprint – including water consumption, water pollution,greenhouse gases, air pollution, waste and land use - across the entire supply chain. PwCdeveloped a state-of-the art hybrid modelling approach, which combines the strengths of multi-regional environmentally-extended input output modelling (PwC ESCHER), regionalised LifeCycle Assessments (LCA), and material flow analysis (MFA) with directly available client data.The environmental footprint was calculated for 129 regions to allow the material implications ofregional differences to be considered. Following the quantification, regionally specific monetaryvalues were calculated based on detailed, impact pathways.

To enable Kering to produce results themselves and operationalise the E P&L as a managementtool, PwC delivered training sessions and built capacity within Kering and the Brands.

Benefits and value

Kering has gained confidence in the scale of itsenvironmental impacts as well as new insightsinto high impact processes and locations. TheEP&L has provided Kering with:

• a tool to educate stakeholders

• a deeper understanding of its supply chainand to build stronger supplier relationships.

• a driver for innovation in product design,supply chain management and operationalefficiency.

• a positive reputational impact throughreporting transparency and brandleadership

Project in focusDeveloping an environmental profit and loss (EP&L) account for Gucci


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201313

PwC

Business challenge

The client required a review of itslong term strategic position withrespect to the management ofground water and to evaluate thecurrent operational status ofgroundwater management andmonitoring practices at operationallevel. An increase in concern withregard to the potential financial andcriminal liabilities associated withground water impact was the maindriver for the review.


PwC brought together a team of subject matter experts includinghydrogeologists to perform a adequacy review of the corporate levelground water management framework and other associated ground watermanagement governance documentation. Furthermore, a sample ofoperations were selected for site visits where the implementation of theframework and strategy were assessed. The adequacy of technical groundwater management practises and monitoring reports were evaluated for“fatal flaws” based on the risk level of ground water pollution.

Benefits and value

The review has highlighted anumber of areas whereimproved ground watermanagement practises couldbe deployed.

Project in focus

Ground water management strategy and impact monitoring review


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201314

The review focussed on aspects such as:

• The adequacy of the ground water monitoring network design e.g. Consideration of geophysics;

• Completeness of point and disperse pollution sources;

• Monitoring borehole design;

• Chemical analysis element completeness;

• Frequency of sampling;

• Surface and ground water interaction;

• Consideration and location of background ground water monitoring boreholes;

• Adequacy and consideration of hydrocensus information with regard to sensitive receptors;

• Sampling and analysis integrity; and

• Adequacy of presentation of monitoring results in management reports to assist risk based decision making.

PwC

Business challenge

The client, a leading global foods andbeverages manufacturer, wanted areview of the water conservationpractices at select sites of in India inorder to: (1) assess its existing watermanagement practices; and (2) identifygaps in operation/monitoring practicesto highlight areas for improvement.


Tasks performed by PwC to support the client included the following:

• Assessment of the client’s sustainability strategy, goals and priorities with respect towater management across operations, community and agricultural practices

• Water management review based on Global Reporting Initiative (GRI) indicators, theGRI Water Protocol and the client’sown policies.

• Review of water management practices at select beverage producing units.

• Review of rainwater harvesting initiatives implemented by the client within theirmanufacturing plants as well as in the local communities surrounding their plants.

• Review of the sustainable agriculture initiative undertaken by the client to promote waterconservation through changes in the traditional paddy cultivation practice in variousparts of India.

• Assessment of net water consumption based on the client’s aspirations and goals in thearea of water management.

• Assistance with the identification of gaps and sources of uncertainty in this review, andcomments on how to address these issues to improve monitoring in all areasof operation.

Benefits and value

An ongoing engagement, we haveassisted the client with their firstsustainability report which includedformulating a system for datacollection on water use and rechargeacross the entire reporting entity asdefined by the client.

Project in focusWater management practices for a major global beveragemanufacturing company in India


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201315

PwC

Business challenge

To help respond to the social andenvironmental impacts of their business,a global mining giant issued a grouprequirement whereby facilities thatexceed specified water consumptionand greenhouse gas (GHG) emissionthresholds develop cost curves for GHGand water reduction opportunities.

As a part of this global initiative, wewere engaged by the client to investigateand develop greenhouse gas and waterabatement cost curves at three mine-sitelocations.


Our approach involved:

• conducting and facilitating workshopswith local operations to identify abatementopportunities;

• screening and costing the identifiedprojects; and

• modelling the abatement options to derivea cost per unit of greenhouse gas andwater abated.

Benefits and value

This assignment was used by theclient to identify and prioritise costeffective greenhouse gas and waterabatement opportunities forimplementation and provide inputinto a Group level greenhouse gasand water reduction target.

Project in focusGreenhouse gas and water reduction cost-curve modeling for miningoperations


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201316

PwC

Business challenge

Chemical company BASF recognizedthat supply chain management isincreasingly important and water is akey sustainability issue.

BASF’s wanted to identify freshwaterconsumption hotspots in its supplychain to prioritize risk managementefforts. BASF also looked for guidanceto include the identified watermateriality issues into respectivesourcing processes and internalsupplier benchmarking.

Moreover, BASF aimed for a holisticpicture of strategically relevant supplychain effects. Therefore BASF wanted toconsider other KPIs such as GHGemissions (so-called “scope 3”) andvalue added throughout the supplychain to reflect nexus considerations.


To satisfy BASF’s objectives, PwC selected ESCHERmethodology.

ESCHER results also allowed a structural path analysis of thesuppliers. This revealed exposure characteristics of tier 1, tier 2and tier n suppliers and their water consumption respectivelyGHG emissions.

ESCHER results also detailed strategic findings for emergingand developing economies, detailing country risk for BRIC and"Next 11" countries. ESCHER also sheds light on the financialimplications emerging from potential increased of water prices.

Benefits and value

PwC delivered new knowledge to BASFand specified key implications for riskmanagement, sourcing processes andstrategy development.

BASF will apply these insights and putthem into action. This in turn willincrease BASF's resilience to waterrisks.

Project in focusAssessing the role of water in BASF’s global supply chain


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201317

PwC

Who we’ve assisted and howThe water sector

The foundation of PwC’s expertise in water issues lies in decades of tax, assurance and advisory support we have offered for the water sector. Waterresources are managed differently around the world and PwC’s global network brings access to deep local knowledge of local water regulations andwater issues.

Country Client Brief description

UK Ofwat PwC is Ofwat's delivery partner for the 2014 price review.We will provide advice, analysis and assurance through theprice control process. In order to create a more efficient,dynamic and customer focused sector which could generatemore than £2 billion of benefits.

Cross-territory

United NationalEnvironmentalProgramme

PwC completed a study aimed at illustrating the underlyingchallenges of Public-Private-Partnerships (PPPs) by offeringa thorough review of twelve projects in the water sector,implemented either successfully or unsuccessfully over thelast decade in various regions of the world.

France/Morocco

Office Nationalde l’Eau Potable

PwC advised the client on the economic, financial, legal andtechnical feasibility of a PPP arrangement for the Agadirdesalination water treatment plant in Morocco. The projectaimed to build, operate and transfer a 200,000 m3desalination unit.

India Government aidorganisation

PwC assisted in reforming the planning and delivery ofurban services in the Indian state capitals of Gangtok andShillong. The project focused on water supply, sanitation,sewerage and solid waste (garbage) management servicesfor poor populations.

Europe European Union PwC helped the EU complete a prospective socio-economicstudy on the strategy of municipal water investments,financing strategies, and pricing consequences in 5 EUcountries and 5 new or future members.

UK Water utility The client had embarked on a change agenda comprising ofa number of major transformation projects over the nextthree to five years. PwC supported the set up of aprogramme management model to enable the identificationof project inter-dependencies and implement processes thatreport the rapidly changing risk profile of the organisation.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201318

PwC

Who we’ve assisted and how (continued)The water sector


India Non-governmentalwater advocacyorganisation

PwC helped implement a project to improve the waterquality of the Yamuna River along its identified pollutedstretches. The first phase involved pollution abatementworks in 15 towns in Delhi, Uttar Pradesh and Haryanaprovinces. The second phase created requisite capacity forsewage treatment in the towns and contributed to asignificant capacity-building programme among localagencies.

Oman Municipality PwC acted as financial advisor to a municipality seeking toprivatise its wastewater system by way of concession. PwCassessed options allowing the private sector to take over allthe existing assets and refurbish and extend the existingsystem.

Saudi Arabia Governmentagency

PwC was appointed lead financial advisor to assess thefinancial implications of operating, managing andmaintaining Riyadh’s water and wastewater systems on a 20year private sector operating concession.

France/Romania

Governmentagency

PwC advised on the evaluation and critical analysis of theBucharest concession contract for water and sanitation, aproject serving over 2 million customers. The project aimedto better understand its contribution in terms of sustainabledevelopment, cost/benefits, water pricing, consumersatisfaction, and positive municipality/operator partnership

Australia Governmentagency

PwC advised on the construction and operation of theworld’s largest reverse osmosis desalination plant,associated inlet/outlet structures, transfer pipeline andpower supply infrastructure. The project involved raisingbillions in private finance and received Project FinanceInternational’s PPP Deal of the Year award.

US Inter-AmericanDevelopmentBank

PwC helped the client to prepare a report setting out anapproach and a set of tools for the financial structuring ofPPPs in the potable water and sanitation sector.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201319

PwC

Who we’ve assisted and how (continued)The water sector


Romania Governmentagency

The first objective of this project was to help the governmentof Romania and 4 municipalities (Alexandria, Calarasi,Giurgiu and Slobozia) to improve their financial andtechnical performance and to comply with EU regulationsand Directives, especially as regards the evaluation ofinvestment needs, sustainable cost recovery principles andfinancial strategies. The second objective was to provide anassistance for institutional capacity strengthening.

UK Water utility We were engaged by a UK water company to advise on theiropex efficiency and opportunities for opex outperformance.The work involved detailed analysis of their opex costs.Based on our analysis we outlined the main areas ofinefficiencies and recommended actions to amend these.

UK Large utility We provided expert regulatory and specialist corporatefinance advice to the pension trustees of a large UK basedutility regarding the strength of the pension covenants basedon the company’s respective sector activities. The advicecovered the regulatory and statutory frameworks andprotections as well as financial modelling of the company’sfinancial and credit metrics with regard to the creditworthiness of the companies under different transaction andunbundling scenarios

UK Water utility Developed a high level strategy for progressing valuecreation opportunities aligned to its business strategy andmove towards a world class position in relation to corporateresponsibility.

UK Water utility PwC were asked to perform a short diagnostic on acompany’s joint regulatory and engineering led ModernEquivalent Asset Valuation (MEAV) which was runningover-budget. Within three months we provided a robustMEAV model.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201320

PwC

Who we’ve assisted and howWater users – Measurement

For many organisations, the first step in managing water is measurement, since what’s not measured, won’t get managed. Effective water managementrequires an understanding of both water quantity and water quality performance.


Japan Financialinstitution

Development support for "Environmental Rating Loans withthe Evaluation of Natural Capital Preservation” to factor inkey environmental impacts (water use, CO2 emissions, landuse) of the loan recipient’s supply chain.

Chile Wood productcompany

PwC assessed the water footprint of a paper mill company inorder to gain an understanding of green water consumptionin the paper and packaging industry.

Chile Global miningcompany

PwC worked with the client to identify projects that couldreduce high quality water consumption, using marginalabatement cost curves to ascertain which projects optimizedwater abatement and financial results. PwC also helped thecompany to identify and analyze current consumption levelsand build a companywide water forecast model.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201321

PwC

Who we’ve assisted and howWater users – Impact assessment

Companies can often create adverse impacts on local water resources. Quantifying the water-related impacts a company has on neighbouringcommunities, economies, and ecosystems is a fundamental aspect of understanding its overall sustainability impacts.


UK Defra PwC was commissioned by Defra to undertake a study ofinfrastructure investors and operators and long-term (20+year) climate change adaptation action in the water, energy,transport, and information, and ICT sectors, and howGovernment and regulators could support this.

The project included mapping the current regulatoryframework, identifying key market developments, andpossible techniques for assessing the adaptation investmentdecisions, and developing recommendations foropportunities and levers to facilitate long-term climateadaptation action in infrastructure development.

UK Nationalorganisation forglobally exportedtextile consumergoods

The client wished to build an understanding of the relativeimpacts of environmental, social, and commercialsustainability issues in its industry, including waterconsumption and water pollution. PwC helped to identify,evaluate and prioritise these issues and their potentialimpacts for the industry across the value chains of itsproducts.

UK, US,Germany

World BusinessCouncil forSustainableDevelopment(WBCSD)

PwC is among the core group of companies working withthe World Business Council for Sustainable Development toshare experiences on the use of water valuation to supportinformed business decision making.

The project’s first report on the underlying business casesfor undertaking water valuation was released at WorldWater Week in Stockholm in 2012. An expanded referenceguide, including reviews of over 23 case studies of watervaluation in business decision making is due to launch atthe IUCN’s World Conservation Congress in Korea inSeptember 2012.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201322

PwC

Who we’ve assisted and howWater users – Risk management

Water-related risks can manifest through a company’s value chain. For example, water pollution often necessitates additional investment in pre-treatment systems, while water scarcity can disrupt operations and increase prices of key material supplies. Understanding and mitigating these risksis an important part of a comprehensive corporate risk management strategy.


Brazil Grupo CamargoCorrêa

Grupo Camargo Corrêa is one of the largest Brazilian privateconglomerates, composed of heavy construction, cement,energy and transport companies with operations mainly inLatin America and Africa. The project included thedevelopment of high level guidelines for water managementwithin the group.

South Africa Major globalmetals andmining company

PwC was tasked to perform a review of a water balancemodel developed by a major metals and mining company atone of their more complex operations.The objective of the review was to evaluate the processfollowed to compile the final content, includingassumptions, variances, scientific formulas and definitionsapplied in the water balance model.

Australia Global miningcompany

PwC worked with the client to evaluate the costs, benefitsand risks of a range of options to meet projected shortfallsin water supply associated with an expansion of operationsin the Pilbara region of Western Australia.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201323

PwC

Who we’ve assisted and howWater users – Risk management (continued)


UK Large foodretailer

Being strongly dependent on food related inputs, the clientwas increasingly concerned about the impact of climatechange on water scarcity and temperature and how thismight affect food security and the organisation. We wereasked to conduct technical and financial outputs providingproduct and country analysis across a wide range ofagricultural supply chains.

UK Leader ofsustainabilitypublic interestgroup

PwC built a model to identify and assess the potential impactof water scarcity on electricity and water utilities, includingthe extent to which associated risks are currently reflected inpublic disclosure.

UK A major thermalpowergenerationcompany

The client was critically dependant on a high-reliabilitywater supply for power station cooling and ancillarypurposes. PwC helped the client value the impact of reducedsupply reliability and provided advice on mitigatingstrategies.

Cross-territories

Global miningcompany

PwC led a review of two of the client’s leading brands toidentify and map top-tier sustainability issues across thevalue chain for a typical product. Water was a key issue forprioritisation. The approach involved developing potential‘2020 scenarios’ to explore the future implications forsourcing key raw materials.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201324

PwC

Who we’ve assisted and howWater users – Opportunities

Water presents a significant business opportunity for many companies. Some may be able to find cost savings through implementing water efficiencyprojects, while others can use water-related products or services to generate new revenue.


India AsianDevelopmentBank/Government ofBangladesh

The objective of the assignment is to assist the Governmentin making a fully functional water team in the Policy SupportUnit (PSU) of the Local Government Division (LGD), bydeveloping the necessary rules and standards for regulatingand monitoring water utilities operating in the urban sector.

UK Major globalbeveragemanufacturingcompany

PwC assessed the water conservation practices at selectClient sites in India in order to: (1) assess its existing watermanagement practices; and (2) identify gaps inoperation/monitoring practices to highlight areas forimprovement.

France/Japan

Waterequipmentmanufacturerassociation

PwC supported an association of Japanese water equipmentproducers to assess the experience of the private sector inPPPs for water infrastructure in the last 15 years, focusingon potential business opportunities inSouth East Asia.

China Veolia Water PwC assisted Veolia Water Asia Pacific be a responsiblewater steward by implementing a new sustainabledevelopment policy across three water infrastructureprojects in China.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201325

PwC

Who we’ve assisted and howWater users – Reporting and disclosure

Increasing expectations from investors, customers, and non-governmental organisations are driving companies to improve how they communicatetheir water risks, impacts, and opportunities. Water disclosure has become a key aspect of corporate communications for companies in water-intensivesectors or those operating in water-stressed areas.


US United NationsCEO WaterMandate

PwC is helping the CEO Water Mandate, a globalorganisation of 86 corporations committed to watersustainability, to analyze existing corporate water disclosurepractices and to draft the first global Corporate WaterDisclosure Guidelines.

The Guidelines put forward common metrics that can beginto harmonize practice, and also provide guidance fordetermining report content and aligning water disclosure tostakeholder interests. Ultimately, the Guidelines will helpinvestors assess and compare water-related risk by drivingconvergence in the ways companies report on water issues.They will also minimize the reporting burden on companies,thus allowing them to allocate more time and resources tomanaging water in a responsible manner.

Project technical advisors include the Carbon DisclosureProject, the Global Reporting Initiative and the WorldResources Institute.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201326

PwC

Who we’ve assisted and howWater sector and users – Assurance and standards

PwC provides assurance and verification services over sustainability reports for a wide range of water sector companies and water users. As waterbecomes an increasingly valuable resource, having credible information corporate water impacts will become an increasingly importantstrategic differentiator.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201327

Selected PwC sustainability assurance clients

Abengoa Greenergy RAY

Aguas Andinas Gas Natural Royal Sun Alliance (RSA)

Águas de Portugal Hansel Rio Tinto

Anglo American Holcim Roche Group

Bank of China HSBC Holdings PLC Samsung Electronics Co

BG Group IPF Sanofi-Aventis

BHP Billiton Base Metals Kesko Senaatti-kiinteistot

BP Kyocera Shell International

CAPP L’Oréal Siam Cement Group

Cenovus LEGO Suncor

Cheminova Limited Brands, Inc. Syngenta

China Construction Bank MAN SE Talisman Energy

China Development Bank Metso Tamro Group

Coca-Cola GmbH Michelin TelecomItalia

Codan Mitsubishi Corporation Telus

Copenhagen Airport MTR Corporation TIM

Daimler Natura TNT

Dong Energy Neste Oil TOP-TOY

Eczacibasi Group Nestle TransAlta Corporation

Eletrobras Next VandCenter Syd

Encana Novartis VANOC

Enmax Novo Nordisk Vestas Wind Systems A/S

EPCOR Utilities Novozymes Volkswagen Group

Experian Office Depot Votorantim Cimentos

Faerch Plast Penoles Winthrop Arzneimittel GmbH

Fortum POSCO Zywiec Group

PwC

Thought leadership

PwC’s thought leadership and depth of knowledge have enabled us to satisfy our clients’ business needs and surpass their expectations by offeringproactive solutions that identify and capitalize on trends. Here is a selected list of relevant publications. You can download these and more at:www.pwc.com/sustainability

10 minutes on Managing water scarcityMarch 2012To prepare for the consequences of water scarcity,companies must monitor water use, evaluatewater scarcity risk across the entire supply chain,and collaborate with local communities onreplenishing water supply.

Roadmap to reform of the UK water sectorOctober 2012The proposals in the UK Government’s draftWater Bill, Water White Paper, Ofwat’s FuturePrice Limits project, and other publications willhave far reaching impacts on water companies’and investors’ strategies and business operations.

Water: Challenges, drivers and solutionsJune 2012Ahead of the World Water Forum, PwC haspublished a report on the dynamics and patternsof water management to support the developmentof models for tomorrow.

China’s war on water scarcitySpring 2013China provides the perfect example of a developingnation grappling with urgent water issues. The UnitedNations, which lists China as one of 13 countriescontending with serious water scarcity, says it has21% of the world’s population, but only 6% of itsfreshwater.

Bringing Water to your doorstepApril 2011This report aims to assess the issues faced by theurban water supply sector in India; contemplate onthe relevance of international models in the Indiancontext and present a comprehensive reform agendacovering all dimensions including financing,institutions, PPP, resource sustainability andcapacity building.

The true value of waterJune 2011The lack of clean fresh water is an essential threat notonly to individuals, but companies also facesignificant risks if water is scarce. This is a bestpractice guide from PwC to show how companies canhandle this challenge.


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201328

PwC

Contacts


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201329

Gary Sharkey

Global Sustainable Water

Network Lead

+44 (0) 20 721 34658

[email protected]

About PwC’s Global Water Network

PwC provides industry-focused assurance, tax, legal andadvisory services to its clients and their stakeholders. Morethan 180,5200 people in 158 countries across our networkshare their thinking, experience and solutions to developfresh perspectives and practical advice.

PwC’s water network operates out of 13 hubs, spreadbetween 6 regions, to bring our clients access to ourbroader global capability and expertise. We would be happyto begin a discussion with you on how water issues may beimpacting your organisation.

Europe and Russia

Germany Matthias Retter +49 30 2636 3092 [email protected]

FranceGuy Leclerc + 33 (1) 5657 8230 [email protected]

Emilie Bobin + 33 (1) 5657 8660 [email protected]

Luxembourg Pierre Wauthier +352 (0) 494848 4506 [email protected]

Switzerland Francisco Betti +41 (0)58 792 9453 [email protected]

UKGary Sharkey +44 (0) 20 721 34658 [email protected]

Richard Laikin +44 (0) 20 721 21204 [email protected]

PwC

Contacts

Australasia

AustraliaCraig Fenton +61 (7) 3257 8851 [email protected]

Richard Pittard +61 (3) 8603 5024 [email protected]


IntroducingPwC


How PwC canhelp


Thoughtleadership

Contacts

August 201330

South America

Brazil Cecilia Michellis +55 11 3674 3440 [email protected]

Chile Fernando Cordova +56 2 29400585 [email protected]

Argentina Perla Casella +54 11 4850-4761 [email protected]

North America

USLauren Kelley Koopman +1 (646) 471-5328 [email protected]

Lee-Ann Ritzman +1 (214) 754-5106 [email protected]

East Asia

IndiaJennifer Möller-Gulland +91 124 3306000 [email protected]

Ranen Banerjee +91 124 3306009 [email protected]

SEAC Elaine Chan +60 (3) 21730641 [email protected]

Korea Joonki Min +82 (0) 27090884 [email protected]

Jae-Heum Park +82 (2) 37819911 [email protected]

Africa and the Middle East

UAE Gus Schellekens +971 (0) 2 6946435 [email protected]

South AfricaDr. Ferdi LindeJayne Mammatt

+27 (11) 797 5195+27 (11) 797 4128

[email protected]@za.pwc.com

PwC

© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP (a limited liabilitypartnership in the United Kingdom) which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is aseparate legal entity.

120813-133824-GS-OS

Documents

Meeting the world’s water challenges - PwC Network... · Meeting the world’s water challenges ... • A summary of some of the challenges of effectively managing water resources,