1. Sustainable Water Resources Roundtable Meeting Washington, D.C., April 27, 2011 Water Footprinting & Other Sustainability Metrics… an Overview Paul L. Freedman President LimnoTech Ann Arbor, Michigan

2. LimnoTech Overview Founded 1975 Focus on water issues Services: use cutting edge science & engineering approaches to guide clients in solving water pollution & management challenges Serve diverse clients –Federal & State agencies –Municipalities –Corporations/Industries –Non profits Geography: - 49 states, - 3 provinces, - 5 continents

3. LimnoTech: role in Footprinting & Water Stewardship Corporate water footprints Partnered with various NGOs & Agencies on global training Watershed protection, restoration, & replenishment Active development role in WFN & AWS Active participant in ongoing evolution of field of metrics

4. Increased Awareness 2009 Globescan 32,000 people in 15 countries found: –90% perceived as serious problems –78 % said that companies have a clear role and obligation to find solutions 4

5. Why Businesses are Interested Financial Risk –Costs –Revenues 5 Physical Risk –Scarcity, quality Regulatory Risk –Change in rules less availability, loss of license Reputational Risk –Loss of market

6. Global Water Initiatives Aquawareness : EWP Alliance for Water Stewardship BIER Water Footprint Working Group Carbon Disclosure Project - Water Disclosure Corporate Water Gauge Federation House Commitment to Water Efficiency Global Environmental Management Initiative (GEMI) Global Reporting Initiative Global Water Tool (WBCSD) UNEP/SETAC Life Cycle Initiative Strategic Water Management Framework (Australia minerals) UN CEO Water Mandate Veolia Water Impact Index Water Brief for Business Water Footprint Network Water Neutral Offset Calculator WaterSense Certification Scheme Water Stewardship Initiative ISO Water Footprint Standard

7. Elements of Water Stewardship Frameworks 1.Water use accounting –Withdrawals, discharge, consumption –Supply chain, direct, and end use 2.Impacts assessment –Access to human or aquatic life –Impaired quality 3.Business Risks –Shortages & costs –Regulation –Managment 4.Prevention & response –Conservation, management, and reuse –Watershed improvements 5.Public Communication & Disclosure

8. Selected Water Stewardship Initiative Simplified Characterization WATER USE WATER IMPACTS BUSINESS RISKS PREVENTION & RESPONSE DISCLOSURE Water Footprint Network (WFN) ✘✘ ✳ ✘ Global Water Tool (WBCSD) ✘✘ Global Reporting Initiative (GRI) ✘✘✘ CDP Water Disclosure ✘✘✘✘ ISO Water Footprint* ✘ ✳✳✳ Global Env. Mgmt. Initiative (GEMI)* ✘ ✳ ✘ Alliance for Water Stewardship (AWP)* ✘✘✘✘ ✳ under development

9. Motivation for Water Metrics Assessment Risk reduction Standards & Certification Transparency & Disclosure

10. Water Footprint Approach Basis: Dr. Arjen Hoekstra (Univ. Twente, Netherlands) Green Blue GreyDirect Supply Chain End Use Water Footprint

11. Examples 2700 l 2400 l 70 l 140 l per cup

12. World Business Council for Sustainable Development (WBCSD) Tool to estimate business risk from water scarcity –Locate Corporate facilities in water-scarce areas –Employees in countries lacking access to water or sanitation –Suppliers in water-scarce areas Excel workbook and mapping tool Global Water Tool ®

13. Example Output

14. Carbon Disclosure Project Water Disclosure Parallel to carbon disclosure Focus on investment community –Disclosure of risks –Opportunities for business Detailed questionnaire –uses –discharge –risk –strategic –condition –recycle –opportunity –management

15. Standardize sustainability reporting Example water reports –EN 8 water withdrawal by source –EN 9 water sources affected by withdrawal –EN 10 water recycled/reused –EN 21 water discharged (quantity, quality, destination) –EN 23 impact of spills –EN 25 biodiversity of water bodies –EN 28 fines

16. Example GRI Output EN 8. 9. 21 Chapter 5.10 Water Consumption *****’s power distribution business operations do not interfere with the wetlands listed by the Ramsar Convention (1971) which addresses the preservation and rational use of wetlands, nor does its water consumption significantly affect ecosystems/natural habitats. In terms of industrial power generation, the water from the reservoirs, which only passes through turbines is not considered consumed water. ***’s power plants employ water from rivers, lakes and reservoirs for cooling in an open circuit without any recirculation. **** does not recycle the water used in the administrative facilities. The water consumption by the administrative facilities in 2008 was, 545,905 m3 with a 2.0% reduction compared to 2007.

17. ISO 14046 Water Footprint Parallel to carbon footprint Consistent with life cycle assessment “footprint” with weighting factors to produce “score” Under development

18. Alliance for Water Stewardship Certification program Initiated by multi stakeholder groups of global NGOs Parallel to FSC, MSC certification Focus on industry Builds a regional efforts by EWP and WSI Elaborate stakeholder input Under development

19. Summary Water Stewardship Initiative Many tools & approaches Different roots & objectives Different capabilities & applications No one tool does it all Field & tools under development

20. Sustainable Water Resources Roundtable Meeting Washington, D.C., April 27, 2011 For more information contact: Paul L. Freedman, President LimnoTech (www.limno.com) 501 Avis Drive Ann Arbor, MI 48108 734-332-1200 pfreeman@limno.com Water Footprinting & other Sustainability Metrics… an Overview