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UN Global Compact - Belgium Solutions for Sustainable Water Use Thursday 24 February 2011
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Agenda Introduction Business risks Why is it so hard for corporations to communicate transparently on their water consumption? Possible solution… 24/02/20112 UN Global Compact – Solutions for Sustainable Water Use
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Business risks 24/02/20113 UN Global Compact – Solutions for Sustainable Water Use Operational risk Changes in the quantity and the quality of the water sources Financial risk Increase in water tariffs and pricing mechanisms, cost inflation of water and energy as a result of increasing water scarcity Regulatory risk Current and expected national and international policies that could burden water users Reputational risk Arising from abuse of abstraction rights or the pollution of the groundwater sources
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Why is it difficult to report transparently? 24/02/20114 UN Global Compact – Solutions for Sustainable Water Use Mainly for 2 reasons : 1.Water is a local as well as a global issue 2.The source and the use of water makes a big difference Consequence : Poor scores on water disclosures Source: CERES, Murky Waters, Corporate Reporting on water risks
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Why is it difficult to report transparently? 24/02/20115 UN Global Compact – Solutions for Sustainable Water Use Source: CERES, Murky Waters, Corporate Reporting on water risks
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Why is it difficult to report transparently? 24/02/20116 UN Global Compact – Solutions for Sustainable Water Use Source: CERES, Murky Waters, Corporate Reporting on water risks What is currently being reported in sustainability reports on water?
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Possible solution 24/02/20117 UN Global Compact – Solutions for Sustainable Water Use Increased collaboration with regulators or agreements within the beverage sector on disclosures could lead to setting up a globalized strategy towards a more sustainable management of water resources. Results? 1.Increased credibility towards stakeholders 2.Enhanced comparability of actual performance 3.Improved water management
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Questions? 24/02/20118 UN Global Compact – Solutions for Sustainable Water Use Thank you
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