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The Future of Sustainability Reporting in the Food Processing Sector, Presented by Klop
1. GRI conference 2010 Piet Klop, World Resources Institute Reporting on risk The Future of Sustainability Reporting in the Food Processing Industry
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4. Extreme Scarcity <500 Scarcity 500-1,000 Stress 1,000-1,700 Adequate 1,700-4,000 Abundant 4,000-10,000 Surplus >10,000 Ocean/ Inland Water No Data m 3 /person/year 1975 2000 2025 2003 With permission from Coca Cola Where is water scarce?
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9. Water risks and impacts Reputation Regulatory (+ litigation) Physical Product use Production process Supply chain Point of impact: Type of risk: Commodity price spikes Disruption in water supply Water quality standards constraining power generation Court settlement to scale back operations Insecure water rights Multinationalsâ suppliers singled out for violations Competition with social uses Profligate water use Scarcity limiting sales
10. Weeding Risk : Climate Change & Water Scarcity Impacts on the F&B Sector Food & Beverage
Lake Mead: The Future Is Drying Up http://www.nytimes.com/2007/10/21/magazine/21water-t.html?_r=2&ref=magazine 'THIRD STRAW': Water authority digs deep for third intake pipe at Lake Mead http://www.lvrj.com/news/water-authority-digs-deep-for-third-intake-pipe-at-lake-mead-79158322.html
India: 70% of irrigation and 80% of domestic supplies from groundwater 60% of aquifers may reach âcritical conditionâ by 2030 China: Will the North China Plain run out of groundwater? â⊠scientists say [the aquifers] below the North China Plain may be drained within 30 years. â Thereâs no uncertainty,â [says] Richard Evans, a hydrologist who has worked in China for two decades and has served as a consultant to the World Bank and Chinaâs Ministry of Water Resources. âThe rate of decline is very clear, very well documented. They will run out of groundwater if the current rate continuesâ.â McKinsey and IFC project that by 2030, water demand in 8 of Chinaâs 10 major basins will exceed available supply. The shortfall will be highest in the Hai River Basin (Beijing): -39%. Australia: â This is more typical of a one in a 1,000-year drought, or possibly even drierâŠâ â David Dreverman, head of the Murray-Darling river basin commission http://www.guardian.co.uk/world/2006/nov/08/australia.drought Southern Europe: Barcelona forced to import emergency water http://www.guardian.co.uk/world/2008/may/14/spain.water The tanker Sichem Defender arrived at the port of Barcelona yesterday carrying something far more precious than its usual cargo of chemicals. Nearly 23m litres of drinking water - enough for 180,000 people for a day - was the first delivery in an unprecedented emergency plan to help this parched corner of Spain ahead of the holiday season. As the country suffers its worst drought since records began 60 years ago, Catalonia, of which Barcelona is the capital, has been the worst-hit region. After months without adequate rainfall its reservoirs are down to just over a quarter of normal capacity. A year ago they stood at almost double that.
Physical / supply chain: e.g. agricultural commodities. Example: NW drought-induced spike in barley and (hydropower-dependent) aluminum prices for Anheuser Busch Physical / production process: e.g. semiconductor manufacturing. Highly dependent on uninterrupted supply of pure water supply. Unfortunately concentrated in some of the most water scarce areas Physical / product use: no water no market for water-intensive appliances in emerging markets as India Regulatory / physical: Mt. Hope Bay (MA) water quality standards forcing Dominion (utility) to invest US$ 1.1 billion investment in water recycling Regulatory / production process: Perrier (i.e. Nestle) forced â through public pressure and court cases - to scale back operations in Wisconsin and Illinois Regulatory / product use: real estate development without securing water rights first as in Frederick (MD), but also California where water scarcity is (belatedly) curtailing development Reputation / supply chain: e.g. Unileverâs suppliers in China, easily singled out in media for alleged water pollution Reputation / production process: e.g. Coca Cola chased out of Kerala, India, through sustained campaign accusing the bottling company of out-competing more deserving uses of scarce water Reputation / product use: highly water demanding activities in water-scarce environment make for easy culprits in intensifying competition for water or during episodes of acute drought
-in terms of the impacts identified on the last slide, we prioritized what we believe to be the most impactful -we believe that the likely rise in agricultural crop prices has the potential to be the most likely to occur with a large financial impact
WATER âą Average annual rainfall of 75-120cm âą Has a long growing season, which makes consistent water availability a critical factor for a good harvest. âą Sensitive to lack or surplus of water. During 2008 Maharashtra witnessed lower rainfall than average, resulting in reduced yields (tonnes of cane per hectare of land cultivated). However in the same year, cane availability was negatively impacted in Uttar Pradesh due to floods. Hot and humid tropical regions with a temperature range of 26-32 degrees Celsius. Mahrastra ï UP