Presentation on theme: "Pick and choose which slides you want for your presentation Think about which questions you want to ask your audience (to inspire you, more questions are."— Presentation transcript:
Pick and choose which slides you want for your presentation Think about which questions you want to ask your audience (to inspire you, more questions are offered in the last slides) Contact WBCSD if you want any of the photos in higher resolution: Preparation of your PowerPoint Presentation Please note that this is a Working Document! Version January 2007
Business in the world of water
Sample Agenda, e.g. 10:00 – 12:00 10:05 – 10:15 Water & Business: an overview – Ms. X, Company X 10:15 – 10:50Context and Presentation of the Scenarios 10:50 – 11:20Breakout discussions in 3 groups 11:20 – 11:30Feedback from each group 11:30 – 11:40 Water & Scenarios within Company Y – Mr. Y, Company Y 11:40 – 12:00Q&A and Close
Objective of this Session Understand water-business links …by using scenario framework as a tool
190 global network of international companies WBCSD objectives include: –Business Leadership –Policy Development –The Business Case –Best Practice –Global Outreach Business Cannot Succeed in a Society that Fails World Business Council for Sustainable Development (WBCSD)
How much water will be withdrawn with respect to the amount that is naturally available? Freshwater Stress is Increasing… Faster than Expected
License to Operate Climate Change Droughts Stranded Assets Increased Production Costs and Interruptions Community and Regulatory Pressure Health of Employees Brand Image Limitations to Growth of Consumer Markets Water Risks to Business
Introducing the WBCSD Water Scenarios
Clarify and enhance understanding by business Objectives in Building these Scenarios Promote mutual understanding …and support effective business action
19 Leading multinational companies in diverse sectors: Oil and gas Food and beverage Mining and metals Consumer products Environmental & engineering consultants Financial Water services WBCSD Water Program – Core Team
WBCSD Scenario-Building Process
Introducing Scenarios: Learning from the Future
Understand the Scenarios yourself…
Reflect on how you could use them in your company
Strategy is about what we should do Scenarios explore what might happen Scenarios for Better Strategies…
Current Realities (mental maps) Multiple Paths Alternative Future Images SCENARIOS The Present The Path The Future FORECAST Scenarios versus Forecasts
X Predictions Projections Preferences Credible Challenging Coherent …stories describing paths to different futures, that help us make better decisions today What are Scenarios?
Introducing the WBCSD Water Scenarios
Complex Interplay of Local and Global Influences…
Three Parallel Stories Post-its for ideas on dilemmas and business actions
Key Story Themes
Hydro More drops, more value per drop Hydro Economy Huge Opportunities In the Shadow of the Olympics More and More Mega Cities China ranks fourth in the world for renewable water resources, but because of its large population, it has only 1/4 of the global average of water per capita.
Unlocking Legacies of the Past Photo: Naval Safety Center
Ocean Accounting for the whole system Unintended Consequences Global Fair Water Movement Water Footprints Networked Global Governance Approximately 37% of the global population (over 2 billion people) lives within 100 km (60 miles) of a coastline.
Estimated water use by life cycle stage (%) Unilever, 2005 Virtual Water – to produce one kilogram of… 1,300 liters 3,400 liters 15,500 liters
Climate change impacts accelerate…. Impacts of historical water overdrafts & ecosystem changes manifest Security through interdependency emphasised Accountability for virtual water uses/impacts emphasised 2006 States enable economic value of water Global market opportunity for innovative solutions Rapid gains in efficiency Social tensions/conflicts and rivalries over water increase Legal and moral liabilities about access and responsible use flare National security interests inhibit progress towards IWRM.. Local solutions sought Three Different Futures Could Unfold…
Breakout Discussions – 3 Groups (30 minutes) What are the key dilemmas in Hydro/Rivers/Ocean? What actions do you recommend to deal with them? Group 1 Group 2 Group 3 Learn & share Report back
For your Company, is Water a…
What are you going to drink for lunch?
Take Home Question Considering the scenarios as a set, what do you now think are the biggest risks and opportunities for your business operations, investment decisions, products, or services in an increasingly water-stressed world? These scenarios highlight the complex interrelationship between water, energy and food security and the need for a holistic approach to water management. Jeroen van der Veer, CEO of Shell
Clarify and enhance understanding by business of the key issues and drivers of change related to water. Promote mutual understanding between the business community and non-business stakeholders on water management issues. Support effective business action as part of the solution to sustainable water management. Objectives in Building these Scenarios Core Team: 19 leading multinational companies in diverse sectors: Oil and gas / Food and beverage / Mining and metals / Consumer products / Environmental & engineering consultants / Financial / Water services
Orientation Scenario Building Affirmation Application Jan-Sept 2005Oct 2005 Jan Interviews Workshops: - Panama - China - Switzerland Research Synthesis Framework Narratives Focused analysis Drafting Test plausibility, challenge, relevance Ownership Communication Sector strategies Business awareness Wider advocacy New Initiatives Collaborative action Key Stages in the Scenario Process
2005 – 2010:More and More Mega Cities Consume more and more water, leads to increasing water stress 2008 – 2010:In the Shadow of the Olympics Positive press coverage ignores increasing tensions between rural & urban (preferential treatment to urban and industrial) 2010 – 2015:Huge Opportunities China opens up its market to outside companies in attempt to bring best technologies; 5-yr plan to 2015, business is active participant 2015 – 2025: Hydro Economy China is spinning its water cycle faster more value/drop – Chinese solutions on global market take many by surprise Hydro More drops, more value per drop
Hydro More and more mega-cities & secondary cities Hydro Economy Huge Opportunities In the Shadow of the Olympics More and More Mega Cities Consume more and more water, leads to increasing water stress Unsustainable water demand: impossible to treat wastewater treatment by 2020, leads to industrial spills
Hydro Beijing Olympic Games Hydro Economy Huge Opportunities In the Shadow of the Olympics More and More Mega Cities Positive press coverage doesnt look at increasing tensions between rural & urban (preferential treatment to urban and industrial) Shortly after Olympics, water-related incidents gain international attention, e.g. car parts plant shut down due to over-extraction of groundwater
Hydro Huge Opportunities Hydro Economy Huge Opportunities In the Shadow of the Olympics More and More Mega Cities China ranks fourth in the world for renewable water resources, but because of its large population, it has only 1/4 of the global average of water per capita instead of single way forward, China embarks on period of economic experimentation… government promotes innovation and supports best-in-class technologies & water management policies. China opens up its market to outside companies in attempt to bring best technologies. When develop 5-yr plan to 2015, business is active participant
Hydro Hydro Economy Hydro Economy Huge Opportunities In the Shadow of the Olympics More and More Mega Cities China is spinning its water cycle faster: same amount of water used more often more value/drop By 2025: China known worldwide for cost-effective water solutions of all scales Ageing infrastructure in Europe: Chinese solutions on global market take many by surprise – those companies involved early got the advantage
Unlocking Legacies of the Past Photos:Naval Safety Center,
Unlocking Legacies of the Past
Rebound effects – what you do with the energy youve saved
Rivers Security Deficit Security Deficit Trust Deficit Local Partnerships By 2010, low-income and emerging economies often lack safe drinking water – but if they want clean water, they have to pay for it This leads to rich getting richer and poor getting poorer – citizens distrusts governments Also in developed world, old water systems results in greater costs – in 2015, for the 1 st time, middle-class households struggle to pay for water bills
Rivers Trust Deficit Security Deficit Trust Deficit Local Partnerships « Water management is, by definition, conflict management. » Worldwatch Institute, 2005 Increase media coverage – increased pressure on EU and US companies that operate in developing countries: taking water from poor for industrial, manufacturing or agribusiness use, which leads to boycotting But many governments use water policy as a way of asserting the right to deny access.
Rivers 2-gether Security Deficit Trust Deficit Local Partnerships Business understands water security is not only efficiency & technology, but also policy – form public- private partnerships, PPPs: the more business participates in helping shape water policy, more likely ensure own needs By 2010, recognize that water security closely tied to energy security (& food, & health…): energy needed for water, water needed for energy
2005 – 2015:Security Deficit Low-income and emerging economies lack safe drinking water – if they want clean water, they have to pay for it 2010 – 2015:Trust Deficit Increase media coverage – increased pressure on EU and US companies that operate in developing countries 2015 – 2020:Local Partnerships Increased number of PPPs, business help shaping policy Rivers Security for all… in terms of quality and quantity
Ocean Accounting for the whole system 2005 – 2015:Unintended Consequences Asleep at the water wheel – more conferences, little action Floods continue because of mismanagement of climate change and mismanagement of ecosystems, deforestation in Asia, Rhine delta is under pressure 2010 – 2015:Global Fair Water Movement « Need global standards to guarantee right to clean water for all humans on planet » 2015 – 2020:Water Footprints Drive for bio-fuels in Southern Europe increases pressures on scarce water resources – companies start to report on their water footprint 2020 – 2025:Networked Global Governance Companies with large water footprints engage in virtual water trading on basis of fully priced externalities - emergence of water-based economic zones
Ocean Unintended Consequences & Fair Movement Unintended Consequences Global Fair Water Movement Water Footprints Networked Global Governance Lulling to sleep & Floods continue 2010: Africa & L. America complain that water is being used by rich-country lifestyles Large international food company – outsource growing & processing of chickens to Brazil – Brazilians suffer from exporting precious water while locals suffer shortages 2015: 5 confirmed cases of cholera in London: energizes Global Fair Water Movement
Ocean Water Footprint Unintended Consequences Global Fair Water Movement Water Footprints Networked Global Governance 2010 – companies report total volume of water used directly or indirectly (total accounting) (need tools) Approximately 37% of the global population (over 2 billion people) lives within 100 km (60 miles) of a coastline.
Ocean Networked Global Governance Unintended Consequences Global Fair Water Movement Water Footprints Networked Global Governance 2020: companies with large water footprints engage in virtual water trading on basis of fully priced externalities - emergence of water-based economic zones Need market mechanism & governments through legislation: Europe, US and Asia address true value of water & complete cycle – new laws
Key Messages Technology is only part of the solution. Relevant innovation is driven locally. Business cannot buy its way out of water problems. Creating trust helps to secure the license to operate. Anticipate risks that stem from outside your current business model. Growing water issues and complexity will drive up costs.
How do companies plan to use the scenarios? Test strategy (corporate, operations, product?) Raise awareness of water issues Multi-stakeholder dialogue
Which legacies need to be unlocked to drive innovation? Where else will cities face big water challenges? What appropriate solutions can you see and reach? What happens if the water haves and have not issues are ignored? What constitutes fair water uses and who will decide? How can water conflicts be avoided? What happens when the whole system isnt taken into account? How can virtual water be made more transparent? What are the tensions and trade-offs in managing water resources and allocation at local and global levels? Discussion in Groups – 30 minutes
Extra questions for discussion on H – Hydro Which legacies need to be unlocked to enable more sustainable water practices and more appropriate solutions? Will further urbanization intensify the water crisis, or does it provide an opportunity to find a solution? If the quality, availability, or cost of water for your suppliers, yourselves, or your customers/consumers changed significantly (x2, x10) in the next 5, 10, or 20 years, how would your business be affected? How can businesses be encouraged to see water-related problems and constraints as opportunities for innovation and value creation? What are the dilemmas raised by the multifaceted efficiency challenge (more value per drop, more drops for less, less pollution and energy per drop, more jobs per drop)? Which sectors will need to take the lead in partnering with municipal and national authorities to ensure city solutions are agreed and implemented on a sufficiently fast and large scale? Where else are governments and their societies likely to respond with market- enabled solutions?
Extra questions for discussion on 2 – Rivers Whose water needs and what water uses will matter most? Will business be seen as a legitimate stakeholder in water allocation discussions and disputes? Who might be new partners or stakeholders in judging your business operations or in providing new and better solutions to grow your business? Can all conflicts over water be avoided – and, if not, where will the fracture lines first appear? To what extent can the legacy of corruption be overcome in water management? How do we allocate water fairly for all users in a community, not just the highest bidders?
Extra questions for discussion on O – Ocean To what extent can human and business activity adapt to new and evolving constraints imposed by the big – or hydrological – water cycle? Can you assess your water footprint? What measures do you have in place to monitor water use? What do your competitors do? What is best practice? How will formal institutional arrangements give a voice to the ecosystem? When we solve a water problem upstream, how can we avoid unintended consequences downstream? How can more investment be mobilized to finance new innovative schemes for local water solutions?
Business-focused questions How is your business dependent on water for its success today – upstream, midstream, downstream? Do you know and understand your water supply, treatment, and disposal context? Do you know the influential institutional and/or governmental individuals who deal with water in your business community? Can you assess your water footprint? What measures do you have in place to monitor water use? What do your competitors do? What is best practice? If the quality, availability, or cost of water for your suppliers, yourselves, or your customers/consumers changed significantly (x2, x10) in the next 5, 10, or 20 years, how would your business be affected? Do you consider water in your long-term strategic planning? What are the generic opportunities and threats in each scenario? Who is the prime mover – that is, which organizations and institutions are setting the standard? Reading the scenarios – ask yourself not whether, but what if – how would your business be affected if this future came true? Which aspects of each scenario are particularly relevant to your products and services? What other water dimensions need to be added? Which water challenges and opportunities seem most relevant to you as a citizen? A consumer? A businessperson? Considering the scenarios as a set, what do you now think are the biggest risks and opportunities for your business operations, investment decisions, products, or services in an increasingly water- stressed world? Who might be new partners or stakeholders in judging your business operations or in providing new and better solutions to grow your business?