Business in the world of water Tom Eggert WI Sustainable Business Council WI School of Business WI Department of Natural Resources.

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Presentation transcript:

Business in the world of water Tom Eggert WI Sustainable Business Council WI School of Business WI Department of Natural Resources

Water supply and demand (population growth; increased scarcity) Water quality (250 million new cases of water- related disease per year; million deaths) Geopolitics and international law (who owns the water? (surface; ground; shared; rain; sewage) The Current Water Crises

Total amount of water is constant and renewable Amount available =~ 34,000 – 44,000 km 3 (best estimates by UN) Problems? Distribution; timing; and erratic supply Water not only essential for humans, but for all life How Much Water Is Available?

How much water will be withdrawn with respect to the amount that is naturally available? Freshwater Stress is Increasing… Faster than Expected

License to Operate Climate Change Droughts Stranded Assets Increased Production Costs and Interruptions Community and Regulatory Pressure Health of Employees Brand Image Limitations to Growth of Consumer Markets Water Risks to Business

Water Ban in India Photo: © International Federation of Red Cross and Red Crescent Societies Aug 2006: Kerala, India ban on Coke and PepsiCo products after Centre for Science and Environment said they contained unsafe levels of pesticides. Six other states in India prohibited sales at or near schools, colleges and hospitals.

Complex Interplay of Local and Global Influences…

Water More drops, more value per drop It’s been said that we will run out of water before we will run out of oil.

Water More drops, more value per drop Due to overpumping, the groundwater in several countries is severely or completely depleted.

Water More drops, more value per drop Depleted aquifers leads to cutbacks in grain harvests Which lead to higher food prices and food shortages

Water More drops, more value per drop China ranks fourth in the world for renewable water resources, but because of its large population, it has only 1/4 of the global average of water per capita.

Water More drops, more value per drop A Water Problem can fast become a hunger problem.

Redistribution Challenge Agriculture: 70% Industry: 22% Domestic: 8%

Accounting for the whole system

Estimated water use by life cycle stage (%) Unilever, 2005 Virtual Water – to produce one kilogram of… 1,300 liters 3,400 liters 15,500 liters

Climate change impacts accelerate…. Impacts of historical water overdrafts & ecosystem changes manifest Security through interdependency emphasized Accountability for ‘virtual’ water uses/impacts emphasized 2012 Governments enable economic value of water Global market opportunity for innovative solutions Rapid gains in efficiency Social tensions/conflicts and rivalries over water increase Legal and moral liabilities about access and responsible use flare National security interests inhibit progress towards international water rights management Three Different Futures Could Unfold…

For your Company, is Water a…

Key Messages Technology is only part of the solution. Solutions are available only on a local level. Business cannot buy its way out of water problems. Creating trust helps to secure the license to operate. Growing water issues and complexity will drive up costs.

Key questions How can businesses be encouraged to see water-related problems and constraints as opportunities for innovation and value creation? How do we allocate water fairly for all users in a community, not just the highest bidders? Can you assess your water footprint? What measures do you have in place to monitor water use? What do your competitors do? What is best practice?

Thank you