HOST Bill McDowell Editorial Director, Meatingplace MODERATOR Lisa Keefe Editor, Meatingplace
THE ISSUE: CORPORATE WATER RISK AND STEWARDSHIP Peter Schulte Research Associate
Non-profit (501(c)3), charitable organization established in 1987 $1.9M annual operating budget (less than 20 employees) Focus Areas: - Freshwater resources/climate change - Community strategies/environmental justice - Globalization/ethical trade/corporate social responsibility About the Pacific Institute
Pacific Institute: Context Pacific Institutes endgame: environmental sustainability and social equity Water issues as a prism: focus on business risks is one ray of light Management of water-related business risks (i.e. corporate water stewardship) will benefit society and the environment: improve the triple bottom line
Major Water Trends and Challenges Unmet demand: Failure to meet basic human needs; Aquatic ecosystems are being degraded and destroyed The Squeeze: Growing population and increases in agricultural and industrial water demand constrained by a static and in some places declining water supply Changing expectations: Corporate social responsibility, greater consumer and investor interest in ethical/sustainable conduct Climate change: Hydrologic cycle changing; Less snowpack, longer droughts, more intense floods, less access to water
Drivers of risk Internal – The industry sector / nature of water use – The maturity and reach of internal practice External – Hydrologic context (i.e. water scarce?) – Political context (i.e. sufficient capacity?) – Economic context (i.e. developing country?) – Social context (i.e. access to water/sanitation?) – Environmental context (i.e. healthy ecosystems?)
Sources of risk Direct operations Supplier operations Watershed conditions Direct operations Supplier operations Watershed conditions Company influence Impact on company
Motivations for Proactively Managing Water-Related Risk Ensuring license to operate in a specific location; Preventing or reacting to operational crises resulting from inadequate water availability; Gaining competitive advantage over competitors Assuring investors and markets that business operations will continue to be profitable; Upholding corporate values and ethics.
A Framework for Action 1.Measure water use and wastewater discharge in direct operations and supply chain 2.Assess surrounding watershed conditions; identify key water physical, reputational, and regulatory risks 3.Engage key stakeholders 4.Integrate water issues into strategic business planning & governance 5.Disclose water performance & associated risks
Tools for Measuring Water Performance and Assessing Risk Water footprinting www.waterfootprint.org Life Cycle Assessment http://lcinitiative.unep.fr/ WBCSD Global Water Tool www.wbcsd.org/web/watertool.htm GEMI Water Sustainability Tools www.gemi.org/water/ www.gemi.org/waterplanner/
Implement internal efficiency measures for water use and wastewater discharge (e.g. water recycling?) Corporate water accounting / footprinting Supply chain engagement Engagement with water policy and management to advance sustainable water management Advocate sustainable practices to other businesses in same watershed Ecosystem restoration Ways to curb water-related business risks
Developed by companies in partnership with the UN Global Compact (Launched July 2007) Conceived with recognition that: – water crisis is increasingly a business issue – comprehensive sustainability strategies will be needed – sound implementation can benefit business and societies – collective action will be necessary Over 60 endorsing companies, including Coca-Cola, Levi, Unilever, Pepsi, Dow, Bayer, Cadbury, and Nike A Call-to-Action and Strategic Framework
Peter Schulte www.pacinst.org firstname.lastname@example.org Relevant publications: Water Scarcity & Climate Change: Growing Risks for Businesses & Investors http://www.pacinst.org/reports/business_water_climate/full_report.pdf Corporate Water Accounting: http://www.pacinst.org/reports/corporate_water_accounting_analysis/corporate_water_ac counting_analysis.pdf Water Disclosure 2.0: http://www.pacinst.org/reports/water_disclosure/report.pdf Guide to Business Engagement with Water Policy: http://www.pacinst.org/reports/guide_to_responsible_business_engagement.pdf
TURN OFF THE WATER! Complete Solutions FromAqua Z Product Categories Cooling Tower Corrosion & Deposition Inhibitors Feedwater Oxygen Scavengers Deposition & Corrosion Inhibitors Boiler ALL-IN-ONE Treatments and Additives Steam & Condensate Treatments Fuel Oil Additives Cooling Water Additives Closed Loop Treatment Biocides RO Anti-scale Agents RO Cleaners Bioaugmentation Industrial Process Cleaners Industrial Process Additives Waste Water Coagulants Waste Water Flocculants Waste Water Specialty Blends
APPLICATION Scott Hartter Vice President Environment, Health & Safety Cargill Meat Solutions
POLL QUESTIONS: Water Management in Meat Plants Poll Question #1: Have you been involved in a formalized ISO based management system such as ISO 9000 or ISO 14001? Poll Question #2: Has a water supply issue limited your current or planned operations during the past 5 years?
Water Management System Elements A formalized management system (or process) has just a few key elements within the Plan-Do-Check- Act framework. An effective facility water management program can be developed keeping in mind these elements. An effective management system helps to bring all stakeholders (commercial, regulatory/compliance, and operations) together in order to align efforts.
PLAN – Understanding requirements Identify quality and quantity requirements for each major usage point in your plant and identify limitations within your water supply. This will help you to develop a plant water balance and identify potential technology improvement needs and reuse opportunities. Plant water balance – depending upon your current ability to meter, a detailed water balance may be difficult to develop. Start with a simple block flow and add detail as you add metering capability. Identify other potential water supply sources and potential supply security issues (scarcity, water rights policy, municipality limitations) that may arise in the future.
DO – Maintaining Operational Control with People, Processes, Technology Develop a water steering team with key departmental members and give them a hammer. Training/Awareness must be an ongoing process for all employees. Some plants have over 2,000 water users to educate. SOPs – ensure water usage is embedded into equipment and process operating procedures. Controls – where can we use technology to automate and ensure consistent usage that meets rqrmts and eliminates discretionary use?
CHECK – If you cant measure, you cant improve Identify key usage points to install metering/monitoring. Implement an auditing program (weekend shutdown checklist and audit, leak/tag program, nozzle replacement program, etc) Establish targets, goals and key performance indicators.
ACT – Where the rubber hits the road The output from the steering team will be an Opportunity List of potential water reduction projects Eat the elephant one bite at a time – agree to a prioritization process to identify the top 3-5 opportunities and then ensure capital and resource needs are well developed to fully capture the value. Make it fun – all good programs utilize some type of idea campaign to create engagement and a forum to ensure all employees ideas are captured. Brag about your successes and make sure your employees are recognized appropriately for accomplishments.
KEYS TO SUCCESS Top Management Support – The best management systems are those that the plant manager not only endorses, but is actively involved. If its important to your boss, it will be important to you……. Make sure you tie water use to energy use. Water use is normally a very large operational expense. Nearly every drop of water used is either heated or chilled and pumped a number of times before it leaves your plant, and then it must be treated, adding another cost to water usage.
KEYS TO SUCCESS Filtration and separation technology will continue to be an ally as we work to improve our water resource sustainability. Ensure someone in your organization stays abreast of available technology. As new products, processes, and food safety interventions are evaluated and developed, considerations should be made to implement improved technology.
RESULTS Cargill began setting water usage reduction goals in 2001. During this time, we have added significantly to our water demand for food safety interventions. Our meat businesses have adopted ISO 14001 as a means to identify and control significant environmental aspects and impacts (including water use) and have maintained ISO 14001 certification since 2007. Since 2001, our meat plants have improved water usage efficiency by over 15%. Cargill has 5 large beef processing plants located in areas of water scarcity, which has impacted how we look at our business and growth opportunity.
POLL QUESTION RESULTS: Water Management in Meat Plants Poll Question #1: Have you been involved in a formalized ISO based management system such as ISO 9000 or ISO 14001? Poll Question #2: Has a water supply issue limited your current or planned operations during the past 5 years?
Bill Gill Assistant Vice President Environmental Affairs Smithfield Foods THE SOLUTION: REDUCTION AND CONSERVATION
POLL QUESTIONS Do you produce and distribute a water usage report on a regular basis? 1.Every quarter 2.Every 6 months 3.Once a year 4.I have never produced a report Do you receive feedback or questions about your water usage report? 1.Yes 2.No 3.Sometimes 4.I have never produced a report
The Key What You Dont Measure, You Cant Manage More Importantly What You Dont Manage, You Cant Change
Smithfield Opportunity 4 Independent Operating Companies 50 + Sites Over 7 Billion Gallons Total Annual Usage Food Safety Contract Sanitation A Variety of Circumstances and Costs
The Program ISO Certified EMS at the Facility Level Water as a Significant Aspect Continuous Improvement Web-based Metrics Software Facility Level Target Compare, Contrast, Transfer, Recognize
The True Value (Cost) of Water City Water Rate or Pumping Cost Disinfection/Treatment Heat It Up/Cool It Down High Pressure Pumping Pump it Out Treat It Pay the City
The (perhaps not so) Obvious Temperature-based Flow Control for Equipment Cooling Tower Recycle Reuse of Cooling Water Brine Recycling Leaks Turn It Off
A Bit Out of the Box Pressure Regulation Final Effluent Reuse Report in Dollars Alternative Sources Use Existing Heat and Cold
Actual Stuff Feedmill utilized spring water that was flooding basement as boiler feed water. Cut water use by 90% (700k gallons and $60k per year) Found abandoned cooling tower at closed plant. Piped to bank of hydraulic units on single pass and saved 1 MG per year.
More Actual Stuff Set up holding tank for leftover pickle during clean up. Saved 300,000 gallons of pickle and $140k per year. Used a closed loop glycol system to replace single pass cooling water, saving 2.4 million gallons per year.
A Couple More Added pressure regulator at point of entry saving 73 MG and $219k per year. Recycled refrigeration cooling water back into plant (uninsulated) for reuse as equipment cooling water saving 12.5 MG and $160k.
On a Somewhat Larger Scale NC plant w/ up to 4 MGD GW withdrawal Permit limited on withdrawals and discharge Essentially using the available supply even with conservation and reuse in place Partnered w/ local Authority to build 4.4 mgd regional surface water treatment plant Increases cost, but assures supply going fwd
POLL QUESTION: RESULTS Do you produce and distribute a water usage report on a regular basis? 1.Every quarter 2.Every 6 months 3.Once a year 4.I have never produced a report Do you receive feedback or questions about your water usage report? 1.Yes 2.No 3.Sometimes 4.I have never produced a report
FOR MORE INFORMATION: Peter Schulte: email@example.com@pacinst.org Bill Gill: firstname.lastname@example.org@smithfieldfoods.com Scott Hartter: Scott_A_Hartter@cargill.comScott_A_Hartter@cargill.com Barry Owings: email@example.com@vincitgroup.com Lisa Keefe: firstname.lastname@example.org@meatingplace.com Bill McDowell: email@example.com@meatingplace.com Webinar recording and PowerPoint presentation will be emailed to you within 48 hours. For more information: www.meatingplace.com/webinars www.meatingplace.com/webinars