Motivations for Water Stewardship Strategy

GreenBiz16

PHOENIX, ARIZONA

February 24, 2016

Motivations for Water Stewardship Strategy

GreenBiz16

PHOENIX, ARIZONA

Introductions Background

10 minutes

Ecolab Olam Gap Ford 25 minutes

Q&A 20 minutes

Insights Discussions

Conclusion 5 minutes

+ Opportunities for service providers across the value chain

+ Market creation: Water Risk Monetizer, Alliance for Water Stewardship Standard

Emilio Tenuta Ecolab

+ Translating global commitment to local actions in seventy countries

+ Watershed perspective: Central Valley, California

Alejandra Sanchez Olam International

+ Water in apparel sourcing countries

+ Women and water: Personal Advancement & Career Enhancement

Melissa Fifield Gap, Inc.

+ CEO-level commitment

+ Building on success: from operational efficiency to the six elements of corporate stewardship strategy

Sue Rokosz Ford Motor Co.

+ Corporate Water Stewardship and Sustainable Development

Heather Rippman Pacific Institute

Motivations for Water Stewardship Strategy

GreenBiz16

PHOENIX, ARIZONA

Water Stewardship and Sustainable Development

“…the use of water that is socially equitable, environmentally sustainable, and economically beneficial, achieved through a stakeholder-inclusive process that involves site- and catchment-based actions.”

COMPANY RISK caused by inefficient, polluting, and inequitable operations, products, or services

RIVER BASIN RISK

caused by changing

environmental and social conditions

PHYSICAL

not enough water, too much water,

water unfit for use

REGULATORY

changing, ineffective, and

poorly implemented public policy

REPUTATIONAL

perception that the company does

business irresponsibly or unsustainably

Water Stewardship and Sustainable Development

Water Stewardship and Sustainable Development

COMMUNITY ENGAGEMENT

COLLECTIVE ACTION

DIRECT OPERATIONS

SUPPLY CHAIN AND WATERSHEDS

PUBLIC POLICY

TRANSPARENCY AND DISCLOSURE

Six Elements of the CEO Water Mandate

2030 Sustainable Development Goals

6.3 Water quality and pollution prevention

6.5 Integrated water resources management

6.4 Efficiency and sustainable withdrawals

6.6 Restored and protected ecosystems

6.1 and 6.2 WASH for work

6.1 and 6.2 Water access, sanitation & hygiene for communities

SDG6 global and

national targets,

monitoring, and

evaluation systems

SDG 6: Sustainable Management of Water and Sanitation for All

The UN Global Compact

8,402 COMPANIES + 162 COUNTRIES

EVOLUTION OF A CORPORATE WATER STRATEGY – EXTENDING THE BENEFITS TO THE SUPPLY CHAIN

Senior Environmental Engineer, Environmental Quality Office SUE ROKOSZ

In June 2000, Bill Ford attended

the opening of the Viva el Agua

exhibit at the Papalote Children’s

Museum in Mexico City, where he

announced a Global Water

Management Initiative focused on

water conservation, reuse and

water quality management.

EXTENDING THE STRATEGY TO THE CORPORATION

DEVELOPING A MANUFACTURING WATER STRATEGY

Ford achieved its global water target two years early, in 2013.

Strategy is currently being updated.

Ford committed to a 3% year-over-year reduction in water use per vehicle produced at its manufacturing facilities globally.

This commitment resulted in a 42% reduction in water use per vehicle, from 2000 to 2009.

This target was achieved two years early, in 2013.

In 2010, a formal global manufacturing water strategy was developed, setting a target of 30% reduction in water use per vehicle from 2009 to 2015.

1 2 3 4 5

• Our corporate water strategy aligns with the core elements of the UN CEO Water Mandate.

• Companies that support the CEO Water Mandate commit to implementing the framework’s six core elements for water management and pledge to publicly report their progress annually.

• Ford endorsed the Water Mandate in 2014.

THE BEGINNING OF FORD’S WATER JOURNEY

The success of the manufacturing water strategy led to receptivity to the development of a corporate water strategy.

FORD’S CORPORATE WATER STRATEGY

Ford’s corporate water strategy aligns with the elements of the UN CEO Water Mandate.

DIRECT OPERATIONS ACTIONS - MANUFACTURING

Ford has reduced global manufacturing water use by over 10 billion gallons since 2000.

Direct Operations

We will reduce water impacts in our manufacturing plants by:

• ensuring all employees have access to potable water, sanitation, and hygiene • seeking opportunities for continuous improvement using methodologies such as

water assessments • evaluating and implementing technologies to reduce water use and increase water

recycling where feasible • meeting local quality standards or Ford global standards for wastewater discharge

(whichever is more stringent)

SUPPLY CHAIN ACTIONS

We will work to reduce water impacts in our supply and value chain by: • working with suppliers to understand the water intensity of raw materials • identifying and engaging suppliers in water-stressed regions where we operate

and supporting actions to implement water efficiency improvements • In 2014, we launched a new supply chain sustainability initiative called the

Partnership for A Cleaner Environment (PACE) to share leading practices for energy and water use reductions with suppliers.

Supply Chain

Ford has asked suppliers with high water use or those who are in water stressed regions to respond to CDP Water.

THE PACE PROCESS

Ford shares its leading practices with suppliers participating in PACE.

1. Suppliers create roadmaps - multi-year plans for increasing environmental performance through either greenhouse gas (GHG) emission reductions or water use reductions - and report progress. 2. Baseline environmental data is entered into the roadmap. 3 and 4. As leading practices are implemented, the reductions in GHG emissions or water use are calculated, and progress toward goals is reported against the baseline. 5. Leading practice lists are periodically updated to include additional leading practices reported to us by our suppliers or implemented in our own facilities.

PACE consists of a five-step iterative process:

Ford is a member of the US Water Partnership & Global Water Challenge.

We will collaborate with others, both public and private, to address water challenges by:

• striving to be recognized as an automotive industry leader within the core elements of the

United Nations CEO Water Mandate • being actively involved in stakeholder efforts to address water challenges globally where we

operate • mobilizing positive action on water issues through efforts directed at employees, public and

private stakeholders, and the supply chain

Collective Action Public Policy

COLLECTIVE ACTION AND PUBLIC POLICY

COMMUNITY ENGAGEMENT

16.7% of the projects in the Global Caring Month of September 2015 were focused on water.

We will work within the communities to facilitate access to water, sanitation and hygiene and promote sustainable water management by: • using outreach opportunities such as the Global Caring Month and Ford Volunteer Corps’

seasonal initiatives to support water stewardship • exploring innovative, market-based approaches to community water programs • documenting our journey through our annual corporate sustainability report

Community Engagement

TRANSPARENCY

Ford was an inaugural responder to CDP Water and was named to the 2015 CDP Water “A” List of Leaders.

We will be transparent with key stakeholders, customers, and the public by:

• publishing and sharing our Company water strategy, targets, and results in relevant corporate reports

• publishing and sharing our global water usage for direct operations on both an absolute and per production unit basis

• being transparent in discussions with governments and other public authorities on water issues

Transparency

Melissa Fifield

GreenBiz Forum February 2016

Supply chain water risk

Source: Conservation International analysis for Gap Inc., 2014

Women + Water Gap Inc. is working to provide safe access to clean water for women in communities where we do business

Product

Women Manufacturing

24

Growing Responsibly- Global Strategy Driving Local Action

Alejandra Sanchez Sustainability Manager

Click with the right mouse button on the graphic and choose change picture

Edible Nuts, Spices & Vegetable Ingredients Cashews | Peanuts | Almonds | Hazelnuts | Onion | Garlic | Spices | Tomatoes |Sesame Confectionary & Beverage Coffee | Cocoa | Shea | Specialty Fats Food Staples & Packaged Foods Sugar | Rice | Dairy | Grains | Palm | Packaged Food Industrial Raw Materials Cotton | Wool | Wood | Rubber | Fertilizers

Click with the right mouse button on the graphic and choose change picture

25,000 Employees

31,000 Seasonal Workers

70 Countries

4,000,000 Farmers

140 Processing

Sites

Olam Joins the UN CEO Water Mandate

27

“ Water security is critical to global food security and the

resilience of Olam’s international food supply chain.

Continually improving water management is therefore not just a pressing environmental

and social concern but a business imperative”

-Sunny Verghese, Managing Director and

CEO

The California Business Environment

28

50,000 contracted acres across the state

11,000 acres of Almonds

5 Processing Facilities SGWMA

Over 400 Water Agencies

Located in Severely Over drafted GW Basins Continuous cycle of droughts

Aging Infrastructure Increased Stakeholders

Complex Regulatory Environment

Environmental Risks Becoming Business Risks

29

Physical

Reputational Regulatory

The Six Elements in a California Context

30

1. Sustainable Plant Initiative 2. WWF and the AWS Standard 3. CWAC 4. SGWMA 5. Creating Shared Value (60-inch program, drip irrigation,etc) 6. CDP and Grower Relations

COMMUNITY ENGAGEMENT

COLLECTIVE ACTION

DIRECT OPERATIONS

SUPPLY CHAIN AND WATERSHEDS

PUBLIC POLICY

TRANSPARENCY AND DISCLOSURE

Thank you

Emilio Tenuta Vice President, Corporate Sustainability Ecolab

HEALTHCARE / INFECTION

PREVENTION

FOOD & BEVERAGE

PROCESSING

LIGHT INDUSTRY

HEAVY INDUSTRY

FOODSERVICE & LODGING

ENERGY SERVICES

WORLD’S LEADER IN WATER, ENERGY & HYGIENE TECHNOLOGIES AND SERVICES

ASSOCIATES IN 171 COUNTRIES

47,000 1.3 MILLION CUSTOMERS

(25,000 IN THE FIELD)

6,900 PATENTS

OUR WATER STEWARDSHIP JOURNEY

45% MORE ENERGY 50% MORE FOOD

30% MORE WATER

Enterprise Footprint

Customer Impact

Beyond the Fences

127B gallons saved in 2015

LESSONS LEARNED: PRIORITIZE WATER STRATEGY TO DRIVE GROWTH

Need/ability to meet increasing demand – enable long-term operational sustainability

DECISION MAKING UNDER

THE NEW NORMAL

Water stewardship is important – the business and societal risks of water scarcity and quality continue to increase

Making the business case is challenging but necessary – need to quantify cost savings, productivity/efficiency, growth potential and risk mitigation

Drive local action – a global commitment can help drive action, but change primarily occurs at a local level

+ Opportunities for service providers across the value chain

+ Market creation: Water Risk Monetizer, Alliance for Water Stewardship Standard

Emilio Tenuta Ecolab

+ Translating global commitment to local actions in seventy countries

+ Watershed perspective: Central Valley, California

Alejandra Sanchez Olam International

+ Water in apparel sourcing countries

+ Women and water: Personal Advancement & Career Enhancement

Melissa Fifield Gap, Inc.

+ CEO-level commitment

+ Building on success: from operational efficiency to the six elements of corporate stewardship strategy

Sue Rokosz Ford Motor Co.

+ Corporate Water Stewardship and Sustainable Development

Heather Rippman Pacific Institute

Motivations for Water Stewardship* Strategy

GreenBiz16 PHOENIX, ARIZONA

“…the use of water that is socially equitable, environmentally sustainable, and economically beneficial, achieved through a stakeholder-inclusive process that involves site- and catchment-based actions.” *

+ Your insights from this session

+ Your unique motivations

Workshop Participants GreenBiz16

Motivations for Water Stewardship Strategy

GreenBiz16

PHOENIX, ARIZONA