1. DIRECTIONS
THE FULL
REPORT 2009
sustainable consumption: labelling
sweden has recently made carbon emission
labels on food mandatory.
Multi-diMensional
Multi-layered
Multi-speed
MaPPing THE LandscaPE
OF EUROPEan
cORPORaTE REsPOnsibiLiTy
responsible marketing: advertising
51% of Europeans don’t trust TV advertising
and 50% don’t trust newspaper advertising.
stakeholder dialogue: trust
On environmental issues, 36% of Europeans
trust environmental protection associations,
18% trust consumer associations and only
2% trust companies.
energy: usage across europe
Water: safe drinking water
Energy usage across Europe has a clear split. Over 100 million Europeans lack access to
safe drinking water resulting in nearly 40 child
42% agriculture deaths from diarrhoea every day.
23% industry 100m
no access to safe water
18% urban use
18% energy production

2. cOnTEnTs MULTi-diMEnsiOnaL » MULTi-LayEREd » MULTi-sPEEd
diREcTiOns 2009
icOn issUE LOcaTiOn
ABoUt directions
FUTURE EnERgy
Directions is in its ninth year. It is widely THis yEaR WE aRE bROadEning OUR
WWF
Zero carbon by 2040, rhetoric or reality?
2_4
viewed as the leading annual publication REacH TO cOVER THE WHOLE EUROPEan
e.on UK 5_6
on trends in corporate responsibility LandscaPE OF cORPORaTE REsPOnsibiLiTy.
the energy ‘trilemma’ and communications. Salterbaxter also
cArBon discLosUre ProJect 7_8
produces regular supplements on key in a region made up of so many distinct sO WHaT Has diREcTiOns UnEaRTHEd?
on the path to carbon reduction topics throughout the year. cultures, languages and approaches it’s companies and governments are going at
sALterBAXter & MAPLecroFt 9
directions rePorts hardly surprising that this landscape is different speeds; some companies are
Facts and maps
anything but uniform. making impressive headway but the
it’s multi-dimensional: the issues morph regulatory framework isn’t there to shape
WaTER
and change and cR is viewed differently the future – and companies are now crying
sABMiLLer & WWF 10_12
the complexity of the water challenge from country to country. it’s multi-layered: out for regulatory consistency; stakeholders
issues are connected and conflicting, there are more important than ever, and there are
sALterBAXter 13_14
step-by-step approach, a footprint are big challenges and big opportunities. more ways to engage with them than ever
is only the first…
and it’s multi-speed: countries, governments, before; the current economic climate may
sALterBAXter & MAPLecroFt 15 companies and consumers across Europe actually prove to be the best environment to
2005 2006
Facts and maps
Best in show of Is CR in your blood? are at different points on their sustainability help the sustainability agenda as longer term
this year’s crop
journey for different reasons – some good, thinking is now seen as essential; trust and
sTakEHOLdER diaLOgUE confidence in business are still a struggle
teLeFÓnicA 16_17
some not so good.
but responsibility in marketing is improving;
A partnership model – value in engagement
but all of this just makes it more interesting. water is looming as the next major crisis –
inteL 18_19 and the water footprint of European business
to tweet or not to tweet – We’ve asked a range of specialists to
intel joins its stakeholders online reaches way beyond the continent itself.
contribute their thoughts on some of the
sALterBAXter 20 bigger ‘plates’ that are moving under this so this year’s directions starts to map out
Have you seen my sidewiki?
shifting landscape. The list is obviously not some of the big areas of interest in cR across
2007 2008
sALterBAXter & MAPLecroFt 21
Cutting through the Sustainability designed to be exhaustive, but we’ve picked: Europe – but it’s a huge topic and we only
Facts and maps
noise of the climate gets tough scratch the surface so let us know what’s
change debate Future energy going on where you are, what you’d like to
REsPOnsibLE MaRkETing
A FeW oF oUr sUPPLeMents see debated, what the big issues are in your
AsA 22_23 Water
shades of green advertising – keeping it real country or what you think of what we think.
cocA-coLA GB 24_25 stakeholder dialogue
as ever, please get in touch with
What’s the secret ingredient in coca-cola’s new
responsible Marketing charter? Responsible marketing the cR team at salterbaxter,
directions@salterbaxter.com
sALterBAXter 26 sustainable consumption
Facts and maps and you can also follow us on twitter,
@salterbaxter
sUsTainabLE cOnsUMPTiOn
sUstAinABLe consUMPtion institUte 27_29 The emerging stars Are you focusing on the
three crises, but a once-in-a-lifetime opportunity of sustainability issues that matter most?
UniLever 30_31
What does your shopping say about you?
the role of sustainable brands
sALterBAXter & MAPLecroFt 32
Facts and maps
cOnTacT Us 33
CR and Brands GRI – the third generation.
ExTRa FacTs FROM saLTERbaxTER The guidelines grow up
We have added extra facts and snippets of information
throughout the report to complement the articles.
Please contact us to request back issues,
see page 33 for contact details.
saLTERbaxTER » directions 2009 » 1

3. MULTi-diMEnsiOnaL » MULTi-LayEREd » MULTi-sPEEd
FUTURE
EnERgy
WiTH aLL THE cLaMOUR aROUnd cOPEnHagEn, WHaT is acTUaLLy nEEdEd
TO MakE EUROPE’s cOnTRibUTiOn TO TackLing cLiMaTE cHangE a REaLiTy?
aRTicLEs by » JasOn andERsOn, HEad OF EnERgy and cLiMaTE cHangE POLicy, WWF
» JEREMy daViEs, diREcTOR OF bRand and cOMMUnicaTiOns, E.On Uk
» JOanna LEE, diREcTOR, cOMMUnicaTiOns & cORPORaTE PaRTnERsHiPs,
caRbOn discLOsURE PROJEcT
FacTs and MaPs » saLTERbaxTER and MaPLEcROFT
Zero carbon by 2040,
rhetoric or reality?
We know that we need to see global carbon However, the general trajectory of policy can
emissions peak and start to fall in the next be plotted with a fair degree of confidence
decade to avoid irreversible consequences. – tighter emissions standards, a workable
carbon price and so on.
Let’s be absolutely clear here: there is a huge
gap between the rhetoric and reality. a lot is nonetheless, the world’s governments
Jason Anderson, said by companies and governments about can provide more certainty through the
Head of Energy how seriously they take the issue of climate copenhagen agreement or at the very least
and Climate
change, but we need much more action than we need a major player such as the Us to make
Change Policy,
we are currently seeing – and soon. a big announcement, which would clearly show
WWF
that the game has changed for good.
What is needed is a new policy agenda,
THE PRicE is WROng
backed by legislation, because we We need the EU Emissions Trading scheme
have seen that companies will not (ETs) to set a carbon price where investment
makes sense and a company can have
voluntarily sign up to the scale of
confidence that the price of carbon will rise
changes necessary. over time. at the moment the price of carbon
is far too low to stimulate sufficient action.
For example, nobody is getting rewarded and in some cases there are companies who
for going to their cEO and saying we need are able to meet their commitments by
to invest 1bn Euros to completely refit our making fairly basic efficiency improvements.
refinery even though it will save 1.5 billion
down the line. However, that is the kind of The post-2020 reduction trajectory in the ETs
By 2010 the change that is needed, so without legislation is also not steep enough to drive the change
20 partner we don’t see that there is an incentive for needed. it needs to be tougher. We need to
companies any cEO to voluntarily give that kind of project have the power sector at zero carbon by 2040
of WWF’s the go-ahead. and that is not too far away.
Climate savers
programme will POLicy cERTainTy and the recent history of free carbon credit
have collectively companies like to point out that they are giveaways and the massive use of offsets
reduced their being asked to make significant investments has not encouraged companies to change
Co2 emissions without any certainty about the policy their own operations in any significant way.
by 50 million There is a lot still to be done.
framework beyond a five or ten year horizon.
tonnes.
To a degree, we sympathise with that position.
Europe needs to have a power sector
at 0% carbon output by 2040
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4. MULTi-diMEnsiOnaL » MULTi-LayEREd » MULTi-sPEEd
FUTURE EnERgy
Continued...
The Energy ‘Trilemma’
The energy debate is far from straightforward. it is perhaps not surprising that so many
There aren’t many subjects that can cause people have an opinion when it comes to
greater division or even unity of opinion, or energy. as the end users, we are all affected
UsE LEss! We are willing to entertain some kind of Jeremy Davies, become the catalyst for so much impassioned by it to varying degrees.
eu energy The EU energy efficiency action plan to subsidy in the beginning but we are cautious Director of argument and indeed action.
efficiency reduce energy consumption by 20% by 2020 about what that is – and it needs to come very Brand and one thing that is now certain is that
action plan Communications,
target is to
implies that we are not just talking about closely linked with a requirement for power things cannot stay as they are;
E.ON UK
reduce energy carbon savings but also about energy savings. plants to avoid emissions above certain levels
something needs to change.
consumption by – an emissions performance standard (EPs).
This is instinctively good sense. building new
20% by 2020. supply is expensive and once it is built, you The crux of the matter lies in the complexity of
it’s a two-way street. if companies want
are locked into using it. We welcome the steps the issue. We refer to the energy debate in the
to ban incandescent light bulbs, it represents public subsidy to explore how to meet singular, but there are actually three distinct
a fairly aggressive approach to picking the carbon reduction commitments, then strands. These strands are interdependent
low-hanging fruit in energy efficiency. but it’s but are based on many separate variables:
they have to sign up to meeting targets. creating the required change is therefore
only one of many steps that need to be taken,
including ensuring that our buildings are very challenging.
How they are achieved is down to the
nokia’s Jacu vastly more efficient.
undoubted skill and expertise of the people in
Factory in
Mind THE cREdibiLiTy gaP the power industry – and the EPs idea is fairly
romania
received a energy companies have the agnostic about what technology should be
Gold rating for used. but a commitment to the EPs principle
fundamental problem that they make is needed: we are firm believers that it will
leadership in
energy and more money by selling more energy. really focus corporate minds and will enhance
environment companies’ credibility.
design (leed) They are quick to ratchet up prices when their
– one of the sO WHaT nExT?
costs increase, and the supposed benefits
world’s leading an ambitious programme needs to be agreed
of liberalisation are not evident, so they lack
green buildings at copenhagen, combined with a better
credibility with consumers.
and the first in Emissions Trading scheme and energy
romania. add to that the windfall profits they made efficiency measures as well as carbon
meeting the lax carbon thresholds in the reduction efforts. but perhaps the biggest
Emissions Trading scheme and you can see hurdle yet to leap is for power companies
why there is scepticism about handing out to recognise that their long-term interests
public subsidies to explore how to cut are best served by fulfilling their part of a
emissions through technology, like carbon legislated policy framework which is firmly
capture and storage. rooted in the goal of ensuring a green,
zero-carbon energy sector by 2040.
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5. MULTi-diMEnsiOnaL » MULTi-LayEREd » MULTi-sPEEd
FUTURE EnERgy
Continued...
The issues around energy aren’t confined to in the next two decades this will all change. On the path to carbon reduction
any one country. The three energy challenges consumers will use less gas, less petrol and
that we face aren’t just challenges to the Uk, more electricity. gas for domestic heating will
We’ve also across Europe many companies have in 2009, cdP introduced a carbon
or even Europe. These challenges are global begin to be replaced by electricity driven
started to post carbon reduction targets in place. The most performance score for the first time
our thoughts and can be summarised as: heat pumps; the internal combustion Joanna Lee,
popular targets are cO2 equivalent reduction in collaboration with our global advisor,
on the energy engine will be confined to history as Director
1. caRbOn Communications targets, which aim to cut greenhouse gas Pricewaterhousecoopers, which assessed
trilemma, and petrol begins to be replaced, firstly
it is clear that to minimise the impact of and Corporate emissions directly. Targets typically specify corporate responses to the carbon disclosure
those of other by hybrid then electric cars. better
climate change a significant reduction Partnerships, an absolute or production-adjusted Project. allianz, basF, nokia, Reckitt
experts, on measurement of energy consumption Carbon Disclosure
youtube (www. – with the eventual aim of completely percentage reduction over a set period of benckiser, siemens and swiss Re, all show
will also lead to more efficient usage. Project
youtube.com/ decarbonising our energy supply system time and against a baseline year. companies high performance and demonstrate a range
talkingenergy) – is not only needed, but needed urgently. so, the shift required to reduce the carbon also adopt energy efficiency or energy of qualities.
output of our society and our economies will consumption targets, which will impact the
2. sEcURiTy OF sUPPLy sO WHaT dOEs THE PaTH TO gOOd
require more electricity – not less – and all overall carbon footprint by cutting energy
We need energy for people to maintain a PRacTicE LOOk LikE?
energy sources need to be considered to use. These may be company-wide, or may
certain quality of life and for industry to have
meet this need: renewables, nuclear and focus on one or more parts of the business.
the necessary power to operate. Maintaining
cleaner fossil fuels. The scale of investment
the security of energy supplies is critical to
needed to achieve the necessary change can
this provision. Fossil fuels by their very nature
only happen with the right framework in place, A transparent approach to
are finite and long-term sustainable solutions
and global level discussions such as those climate change activities
need to be found.
in copenhagen are absolutely necessary and performance –
3. cOsT to achieving this. Demonstration of low carbon
companies must report their
The last energy challenge is affordability. intensity – companies who are
it’s also important that these discussions emissions data and climate
Energy needs to be priced fairly so that it running the most carbon efficient
don’t stop in copenhagen, but are held on change strategies.
is available to everybody, regardless of operations will be best positioned as
our streets and in our homes. People need we move to a low carbon economy.
income levels.
to be engaged in the issues and committed
to playing their part.
in short, energy needs to be reliable, Implementing innovative ideas – to capitalise on
affordable and low carbon. E.On believes that only by having adult-to- climate change opportunities and demonstrate
adult conversations with our customers good management of risks. Provision of low carbon
With these three challenges defining the can we start to involve them and make a technologies, products and services, will generate
debate, we believe that we are facing more change at a local level. We’ve started these large revenue streams for those that spot these
of a ‘trilemma’ than a dilemma, a problem conversations already, and our intent to opportunities early.
where none of the three challenges can be involve people is reflected in our latest
solved in isolation. advertising. We’ve also started to post our Demonstrating Board
WorLd-LeAdinG, BUt is it enoUGH?
thoughts on the energy trilemma, and those level involvement in
as a major energy supplier, E.On recognises Establishing and achieving Within Europe, we are seeing companies
of other experts, on youTube (www.youtube. climate change
that it plays a key part in solving this emissions reductions plans leading on performance and disclosure –
com/talkingenergy) – and we’re actively strategies – shows an
trilemma, but no organisation can do so on – high performing companies must some 20-25% ahead of their peers in other
asking people to let us know their views too. understanding of the
its own. We’re at a pivotal moment and action implement plans and detail any parts of the globe. European companies are
importance of the issue.
is needed not only by energy suppliers, but The solution to the energy trilemma is not carbon cuts they have achieved so also leading on setting targets to reduce
also businesses, ngOs, political leaders easy and will rely on technology, global far, and how they intend to continue greenhouse gas emissions. The first ever cdP
edF energy and consumers. cooperation, and business and government to achieve reductions. Europe Report, produced by ca cheuvreux,
ran an involvement – but success will also require is based on the largest 300 European
advertisement it’s very important that as consumers we a shift in individuals’ relationship with companies’ responses to climate change.
that started realise we all have a part to play in helping to energy, public consent and significant Driving the business towards it shows that although European companies
with the song: solve the problem too. For the past 20 years cultural change. climate change mitigation – outperform other world regions in terms of
‘it’s not easy we have used three main forms of energy in
being green’, offering incentives to employees setting emissions reduction plans, their
pretty much the same way – electricity to collective reduction targets will only deliver
originally sung can encourage behaviour change.
by Kermit! power our homes, gas to heat them and an average emissions reduction of 2.2% a
senior management find these
petrol to run our cars. year. Unfortunately, this level of performance
schemes can also enhance staff
recruitment and retention. is not high enough to hit the EU goal of cutting
absolute emissions by 20% by 2020.
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6. MULTi-diMEnsiOnaL » MULTi-LayEREd » MULTi-sPEEd
FUTURE EnERgy
Continued...
FacTs and MaPs
Our data shows that, although many in the Uk. Many companies highlight the tHe MULti-diMensionAL LAndscAPe oF sUstAinABiLity
89% of companies are acting ahead of regulation, importance of smart technologies and
european
in eUroPe is PLAin to see in tHe enerGy deBAte.
89% of European companies setting carbon process innovation to decrease the amount
companies
reduction or energy efficiency targets are of energy required.
setting carbon
looking for increased regulatory certainty.
reduction or
energy This will enable them to plan for the future
uses large campaigns to raise staff
awareness of environmental impact.
There are many challenges and multiple layers to the
European energy landscape. The growing civil movement 54% no.2 59.9%
The EU currently In 2008, Germany Turnover of
efficiency and invest in low carbon technologies, many around climate change has added to the consensus view that
has a similar approach, training employees on imports 54% of its fell to no.2 behind Spanish wind turbine
targets are of which have a long investment horizon. rapid change is needed to shift to a low carbon economy. but energy needs. This is the U.S. as the manufacturer
energy use.
looking for the roadmap for change is contested and most importantly a set to increase to country with the Gamesa has grown
increased interestingly, 90% of the 300 encourages staff to save emissions workable framework for change doesn’t exist yet. There are 70% by 2030. most installed wind by 59.9% between
regulatory by offering free bikes to commute across pockets of achievement with efficiency gains and technology, power capacity. 2006 and 2008.
companies in the report now see
certainty.
regulation as an opportunity.
larger business campuses.
and although Europe is on target to achieve its kyoto targets,
the EU’s 2020 targets seem a long way off. The recession has top 3 Danish Vestas has
grown by 56.6% in
led to cuts in greenhouse gas emissions around Europe Europe-based Bayer, BASF and HSBC are the
top 3 companies in the Carbon Disclosure the same period.
, , and showing that the goal of decoupling energy use from economic
sO HOW TO acHiEVE THE TaRgETs Project’s leadership index, all scoring above Wind power is
are all participating in the cdP growth is no closer. so, all eyes are on the world’s governments predicted to triple
OncE THEy HaVE bEEn sET? 90 out of 100 for disclosure of climate risks
supply chain Programme to work with their and a call goes out for them to deliver a clear and robust and performance. between 2008
Emissions reductions across the business and 2013.
suppliers to gain a better understanding of direction, one that will allow the market to respond, shape
can be achieved in a number of ways – from energy companies’ efforts and galvanise action among all
their impacts.
carbon management strategies through to types of energy users.
encouraging behavioural change in employees
For many companies 40-60% of
to support carbon reductions.
carbon emissions are generated
Uk for example has set itself a unsustainable energy use index
target to supply the entire Uk business with in the supply chain.
renewable energy and plans to Extreme risk
improve energy efficiency associated with There is clearly a lot of activity around High risk
gHg emissions originating from energy and emissions reductions within major Medium risk
electricity use in factories by 20% indexed European based companies and there Low risk
to local sales by 2011. are also considerable opportunities for No data
those companies who reduce their own
Telecoms company has set targets emissions, from a cost as well as leadership
to reduce energy consumption of its products and efficiency perspective. There are also
and services, for example mobile phone opportunities for companies able to provide
chargers. it has also set reduction targets low carbon solutions and to develop new
for suppliers. While is retrofitting technologies which will help others to
swiss packaging Country rank risk
some of its properties with insulation and significantly reduce their emissions.
manufacturer Belarus 14/166 Extreme
tetra pak has has set a target of 2% absolute reductions
per annum. it will be through a combination of significant Moldova 16/166 Extreme
achieved a internal emissions reductions coupled Ukraine 17/166 Extreme
12% absolute has invested significantly in 2008 with the creation of a new generation of Estonia 18/166 Extreme
reduction
to support energy saving installations in ten low carbon products, such as smart grids, Netherlands 29/166 Extreme
in Co2 emissions
(2005 – 2008). countries including china, the czech Republic energy efficient buildings, video-conferencing Poland 30/166 Extreme
energy use in and Hungary. in Hungarian stores solar panels and a considerable increase in the use of Belgium 32/166 Extreme
2008 was are being installed. renewables, that we will achieve the cuts Luxembourg 37/166 Extreme
similar to 2002 required to prevent dangerous climate Czech Rep 38/166 High
maplecroft ™
has set a number of reduction
although change. as demonstrated through the Russia 43/166 High
packaging targets – including an aim to ‘grow the
stern review of 2007, the faster we make
output had business not the carbon’ and it uses
the transition to a low carbon economy, The Unsustainable Energy index (UEi) quantifies the level of unsustainable energy use in each
increased 32%. photovoltaics in california, solar-thermal
the less it will cost us all. country. specifically, it evaluates the risk of being unable to source energy from low carbon sources
installations in France and wind turbines
and/or operating/investing/lending in an energy intensive economy. Over the longer term, reliance For more
on unsustainable energy may impact the economy of some countries, in particular those that are information
heavily reliant on imported fossil fuels. The UEi forms one of the four main components of www.maplecroft.com
Maplecroft’s climate change Risk Report 2009/10.
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7. MULTi-diMEnsiOnaL » MULTi-LayEREd » MULTi-sPEEd
WaTER
WaTER scaRciTy, and THE cHaLLEngE THis PREsEnTs TO aLL cOMPaniEs,
is FasT Rising UP THE cORPORaTE agEnda. HOW aRE cOMPaniEs REsPOnding?
aRTicLEs by: » andy WaLEs, gROUP HEad OF sUsTainabLE dEVELOPMEnT, sabMiLLER, and
daVE TicknER, HEad OF FREsHWaTER PROgRaMMEs, WWF Uk
» cR TEaM, saLTERbaxTER
FacTs and MaPs: » saLTERbaxTER and MaPLEcROFT
The complexity of
the water challenge
Very few activities occur in the world today HOW aRE cOMPaniEs REsPOnding? WaTER FOOTPRinTing – two water footprinting exercises; one of
that do not rely on freshwater in one way in parallel, as a result of a better awareness societies assEssing LiFEcycLE iMPacTs south african breweries (sab) in south africa,
or another. Whether this dependence is of the water challenge, there is a rapid largely fail to in addition to this target which primarily and a second of Plzeñský Prazdroj in the
for personal sustenance, basic hygiene, increase in private sector recognition of the value and relates to how efficiently water is used within czech Republic.
govern their
growing crops, producing energy, importance of water for the wellbeing of breweries, it is also becoming increasingly
Andy Wales, freshwater The results of the footprinting show that the
manufacturing goods or maintaining society, the growth of the economy and the resources important to understand and evaluate the
Group Head of percentage split of water use across the four
Sustainable ecosystems to keep the earth in balance protection of the environment. numerous adequately. way water is used throughout the value chain.
key components of the beer value chain are
Development, – human beings are inextricably linked reports and activities around water have To do this, sabMiller has partnered with
comparable for south africa and the czech
SABMiller to freshwater. emerged, while business forums such as the WWF to undertake water footprints of the
Water Republic breweries. in both studies crop
Un global compact’s cEO Water Mandate beer value chain in south africa and the
Facing THE cHaLLEngEs footprinting is processing, brewing and bottling and waste
and the World Economic Forum (WEF) have czech Republic.
Unless water management improves the next step disposal account for a small percentage of
helped to distil these important debates.
significantly, we will face major challenges for application Environmental footprinting has been growing the total water footprint, while crop cultivation
Organisations such as the Water Footprint throughout
in securing enough water to support the for a number of years, in particular with the is in excess of 90% of the footprint.
network (WFn) and the alliance for Water businesses.
growing world population, to underpin development of value chain and carbon
stewardship (aWs) have also been in terms of absolute numbers, however, the
economic growth and to meet environmental footprint tools in the last three years. given
Dave Tickner, established to help measure and set south african footprint is more than three
needs. To date, the track record on managing the growing awareness of water scarcity,
Head of Freshwater standards around water use. times that of the czech Republic’s footprint; in
water sustainability in many parts of the water footprints have been considered as
Programmes, south africa the estimated water footprint of
WWF UK
world is poor. For a company such as sabMiller, given the a natural next step, although there are
one litre of beer was 155 litres whereas in the
nature of the beverage industry, the reliance important differences.
For most governments water management is czech Republic it was estimated as 45 litres.
on water-intensive agricultural ingredients
not, in practice, a priority and societies largely For the context of beer production, the key
and the fact that several operations are in so why the differing results? Factors include
fail to value and govern their freshwater components of a water footprint include crop
water-stressed regions, the scarcity of water the greater evaporative demand on crops in
resources adequately. so despite significant cultivation (including direct water use in
– as well as its quality – are increasingly south africa due to climatic conditions; a
strides in legislation and water-efficiency growing crops, and indirect water use linked
critical issues. in response to these issues, higher reliance in south africa on irrigated
technology in recent years, water scarcity and to energy use in farming, irrigation and crop
in november 2008, sabMiller announced a crops; different levels of crop imports for
water pollution continue to be all too common transportation) crop processing; brewing and
target of cutting the amount of water used brewing (south africa imports more than the
occurrences. climate change will add to the bottling; and waste disposal.
per hectolitre of beer produced to an average czech Republic); and the different types of
challenge in many parts of the world, bringing
of 3.5 hectolitres by 2015 – a 25% reduction Following these key components and using packaging used.
increasing uncertainty over rainfall patterns
from 2008. a tool developed by the Water Footprint
and an increased likelihood of extreme
network, sabMiller and WWF have conducted
weather events, such as droughts.
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WaTER
Continued...
step-by-step approach, a footprint is only the first…
in 2007, the intergovernmental Panel on plans. The importance of measuring supply
climate change stated that a 2-3°c rise in chain water impacts is well illustrated by
CR team,
global temperatures could result in water Unilever, which estimates that only 5% of its
salterbaxter
scarcity for over 3 billion people – almost water footprint comes from manufacturing.
half the world’s population. and if people
The ‘measure to manage’ mantra serves
are short of water so are businesses and
well with water. Pharmaceutical giant abbott
the potential for conflict over usage rights
To help interpret the results of the water made aware of the complex and significant conducted water stress assessments for 40
Crop cultivation escalates massively. The focus on water is
footprints for south africa and the czech role of water in our lives and economies. of its manufacturing sites and since 2007 has
within the beer certainly growing with initiatives, reports and
value-chain is in Republic, full-day workshops were held For WWF and sabMiller, water footprinting reduced water consumption by over 1 billion
tools such as water footprinting. yet following
excess of 90% in each country. The workshops included is the beginning of a process and can be the litres – a 37% reduction normalised by sales,
a positive start, the cEO water mandate has
of the total WWF experts, senior managers from the bedrock on which meaningful actions can be or 7% in absolute terms.
recently been criticised for fostering
water footprint. procurement, operations and corporate taken in conjunction with other stakeholders.
corporate control and threatening access and once a business has a robust water
affairs functions of the local subsidiaries,
‘Measure to manage’ is a phrase that to water. so how do we make sense of the management approach, what are the options
as well as senior managers at the global level.
water debate? for communication? There is no one-size-fits-
in south africa, water use for agriculture businesses know well, and with agreed all approach and below we consider some of
Recently there have been calls for water,
was highlighted as the biggest risk area in the and tested methods there is a chance to the communications options.
climate change and energy to be linked
water footprint. currently, WWF south africa a 2-3oC rise
build strong standards for water users, together at the cOP15 negotiations in a LOcaL issUE, a LOcaL aPPROacH
has an existing project developing a toolkit for in global
to define meaningful interventions, and copenhagen. in simple terms you need The Uk’s acca suggests that water issues
sustainable sugar cane cultivation. Following temperatures water to generate energy and energy to do not only pose a significant risk, but also
the water footprinting exercise, sab Ltd is to do so in a coordinated fashion. could
provide water; demand for both is also need a different response to that required for
now working with WWF to tailor this toolkit potentially
result in water increasing. so the two are inseparable. carbon. Unlike carbon, water is a local issue
for barley farming. This will complement sab
The business future around water hinges add to this the predicted impacts of with risks determined by the local water
Ltd’s existing agricultural extension workers scarcity for over
on an ability to understand, measure and 3bn people in climate change on water supplies, let alone situation. Water impacts such as shortages,
who engage with farmers on issues such
engage. The complex challenges surrounding the near future. population growth, and the landscape of drought and pollution are often clearly visible.
as yield management and water efficiency.
water in the 21st century will only grow in water is one that is certainly going to change. so it is important to communicate locally,
Locally in the czech Republic, sabMiller is the coming years and companies must be showing efficiency measures taken locally
prepared to engage outside their factory are companies ready to deal with this
also considering projects to help understand to reassure communities that their water
gates – the traditional comfort zone changing landscape? some 40% of Fortune
spain has the risk of climate change on water availability resources are being carefully managed.
– to ensure the long-term viability of 1,000 companies said the impact of a water
more than 700 and how this may have an impact on crop
desalination this critical resource. shortage on their business would be ‘severe’ an assessment of 110 companies’ reporting
growth in the future. it is also reviewing
plants or ‘catastrophic’ – but only 17% said they on water by the Pacific institute showed that
how legislative changes may influence crop
producing were prepared for such a crisis*. so why are although 89% reported water use data,
growing areas, with particular reference to
enough water so few businesses responding, and what do “relatively few provided data on regional or
groundwater, nitrate limits, and engaging
each day for they need to do? local water use or any contextual information
with suppliers in the process.
around 8 million in which their water uses and/or impacts
inhabitants. diREcT and indiREcT aPPROacH
Looking to the future, we believe that water could be understood”.
as with many challenging issues, the starting
footprinting will continue to be a useful tool
point is to understand the issue and work first
for companies, and more people will be
on areas where a business has direct control
– measuring the operational footprint and
identifying efficiency improvements. Mapping
supply chain impacts comes next often using
a water footprint. and once the high impact
areas have been identified, businesses can
prioritise action and form water reduction
* The Marsh Center for Risk Insights
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9. MULTi-diMEnsiOnaL » MULTi-LayEREd » MULTi-sPEEd
WaTER
Continued...
FacTs and MaPs
insidE OUT aPPROacH Most companies that report on their WAter is A eUroPeAn, As WeLL As, A deveLoPinG WorLd issUe –
Before diving One of the greatest forces for change and environmental impacts cover water in one
into what a
And tHere Are not MAny coMPAnies deALinG WitH it.
efficiency improvements can be a company’s way or another. a leading example of well-
water footprint own employees. not even the most robust integrated water communications is nestlé.
is and how to
water strategy will be a success if employees The consumer-facing ‘Water Zone’ campaign
calculate it,
it is important don’t support it. apart from raising awareness is available from the corporate homepage and
includes a water quiz, water facts and links
Water is often considered a developing world issue. it is also
a European issue. nine countries in Europe are considered 5th 9 100m
to understand and helping to establish a water saving water stressed and the water footprint of European business Italy is the 5th largest There are 9 water Over 100 million
culture, communicating to employees can to how nestlé is managing water. add to this net importer of virtual stressed countries Europeans lack
the broader stretches all over the world via supply chains and trade. Water
water in the world in Europe; Belgium, access to safe
landscape help to identify where water is being wasted the focus on water as a key issue in nestlé’s and water stress will be more and more discussed in the same
(water used to grow Bulgaria, Cyprus, drinking water
of initiatives and provide ideas for efficiency savings. sustainability programme and it shows a solid forums as carbon and climate change. Though the issues have imported crops or Germany, Italy, resulting in nearly
around approach through consumer and standard their differences, they are intrinsically linked. They require make imported Macedonia, Malta, 40 child deaths
sustainable TackLing THE issUEs TOgETHER both uni- and multi-lateral action to tackle them. businesses products). The UK is Spain and the UK. from diarrhoea
corporate responsibility communications
water Water has for some time now been a focus will be under increasing pressure to demonstrate water the 6th. every day.
channels. nestlé also features interactive
management. for ngOs, charities and research institutes. management. but the Ungc cEO Water Mandate has 58
Working on a water footprinting exercise is
one thing, but a business working in isolation
content such as MP3s and video and
produces a stand-alone water management
signatories of which 26 are European. it is a tiny proportion
of companies who will have to deal with this issue.
40%
of Europe’s fresh water comes from the Alps. Temperature in the
report in addition to its annual sustainability
will not be sufficient to solve all the issues. so region has gone up 1.48 degrees and the way water is collected
report as does sabMiller. and distributed by the mountains is changing.
working in collaboration, as we have seen with
sabMiller and WWF, can be very effective. but not all water reporting is this advanced
or broad. The Pacific institute’s research on
communicating as part of a credible
water disclosure by companies shows there
partnership will not only boost the impact Water security index
are pockets of good practice. but not enough
of your communications, it will help to reach
companies are reporting consistently on Extreme risk
audiences that corporate communications
direct and indirect impacts and what they High risk
alone may not reach.
are doing to address the issues. Only 15% Medium risk
THE aWaRE and THE nOT sO aWaRE of the 110 companies surveyed met all of Low risk
a recent Eurobarometer survey showed that the criteria of the research framework. No data
42% of Europeans are worried about water While 89% reported water use data and
pollution, the second highest issue of concern 64% water quality indicators, only 7%
after climate change. but consumer described their approach to measuring
awareness and action are two very different supplier water performance.
things, and the likelihood that water impacts
networking, partnerships, dialogue
are factored into day-to-day purchasing Country rank risk
with stakeholders – there are lots of
decisions is, at best, low. Moldova 31/162 High
communication options. but it seems that
Romania 45/162 High
so communication with consumers is more even with all these opportunities, water still
Ukraine 59/162 High
of an exercise in education than promoting a doesn’t get the attention that it deserves.
Poland 79/162 High
energy costs product based on its water footprint. What’s World Water Week passed in a blink. Water
Bulgaria 81/162 High
account for required here is communication to address plays an essential role for both businesses
Hungary 83/162 High
40-50% of the the misconception that water is a free public and societies and the challenges around the
Belgium 90/162 Medium
total cost of good and to switch consumers onto the idea issue are increasing. There is no doubt the
Portugal 96/162 Medium
desalinated of water efficiency. issue is creeping up corporate agendas, but
water. arguably not fast enough. and businesses
Belarus 97/162 Medium
maplecroft ™
not surprisingly, utility provider Veolia has need to communicate better how they are
Germany 102/162 Medium
the issue of water as a key challenge on its going to tackle this big issue.
corporate home page and links to a world The Water security index profiles 162 countries and explores the risk posed by the relative availability
water week section containing videos on of a reliable and suitable fresh water resource for both the local population and industry. Maplecroft
basic elements of providing clean water. created the index to investigate critical water issues that influence a country’s population, economy, For more
environment, national security and international relations. These include: access for human information
development (the proportion of the population with access to safe drinking water and sanitation); www.maplecroft.com
availability (the amount of renewable water accessible to each country and its reliance on external
water supplies); water stress (the relationship between available water and supply demands); water
intensity (the water dependency of the economy of each country).
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