About AECOM
Global Reach, Endless Possibilities
INNOVATIVE WATER MANAGEMENT
STRATEGIES
WATER FOOTPRINT AS A COMPONENT
OF LIFE CYCLE ASSESSMENT FOR
INDUSTRIES
ASIA WATER CONFERENCE 2012
NG HON SENG
Objectives
Water Risk Assessment
Understand existing initiatives of water reporting / water accounting
Introduce the concept of Water Footprint
Understanding the differences and similarities between Water Footprint & Life Cycle Assessment
Provide an overview of water footprint benchmarking at Micro & Macro levels
Page 2
Outline • Overview
- Water Risk - Drivers & Elements & Opportunities
- Water Management Strategies
• Water Reporting Initiatives
• Concept of Water Footprint - Integration of Water Footprint(WF) with Life Cycle assessment (LCA)
- Overview of ISO 14046
• Benchmark & Industrial experiences
• Conclusion - Potential Implementation Challenges in Malaysia
Page 3
Page 4
47% of world’s population will be living in area’s of high water stress by 2030 unless new policies are introduced
Organization for Economic Cooperation and Development (OECD)
Source : World Water Forum 2012 - Marsellie
Rapidly Changing World of Water
Overview
Page 5
What Impacts Water
• Climate Change?
• Population growth?
• Continuous rise of Asia?
• Any human activities and policies will have direct impact on water.
How will the water cycle change
• Water cycle acceleration
• Water cycle intensification
Human activities ~ Consumption ~
Product ~ Industrial activities
Source : worldpress.com
Overview
Page 6
Industrial Response to Water Issues
• Volumetric water accounting
• Estimation of water risk : Qualitative / Quantitative
• Understanding the risk
• Mitigation Plans
Water Risk – Shared Responsibility
Page 7
Source : The CEO Water Mandate ; UN Global Compact Website
Water Risk – Global Events C
oca
-Co
la
Announced a goal to reduce world-wide water use by 20% against 2004 baseline by 2012. In 2004, Coca-Cola lost its license to use water at its Kerala, India plant even tough the company made genuine attempts in water conservation in India. They installed more than 300 rain-water harvesting structures in 17 states in India
No
rweg
ian
go
ve
rnm
en
t 1,100 companies in its portfolio of holdings, representing €33 billion in value, to meet certain defined minimum standards of water risk reporting and management
Texas In
str
um
en
ts o
r In
tel C
orp
ora
tio
n
Estimated shutdown of a Texas Instruments or Intel Corporation semiconductor chip plant due to temporary water unavailability could translate into a revenue loss of as much as $200 million in a given quarter
Un
ilever Company
Sustainability Reporting indicates that it has reduced the amount of water it used per ton of production by 63% since 1995 compared to 2007, with an estimated saving of USD 26 million between the year 2001 - 2007
Page 8
Source : The Finance Professional’s Post : A Publication of New York Society of Security Analyst - 04/22/2010
13th Annual Global CEO Survey by PriceWater Coopers in January 2010) : 41% of CEO’s said freshwater scarcity will have a negative impact on their company’s long term success CDP Water Disclosure 2010 Global Report : 39% of responding companies reported impacts and half of the respondents classified water related risk as being current or near-term – 1 to 5 years
Water Risk Model – Concerns & Drivers
Page 9
Source : The CEO Water Mandate ; UN Global Compact Website
Water Management Strategies – Key Measures
Page 10
Governance
• Quantifiable targets for reducing freshwater use and wastewater
• Percentage of facilities operating in water stressed area
• Engaging with communities
Source
• Total water withdrawal by source
• Analysis of regional watershed
• Impact assessment across the supply chain
• Reducing reliance on conventional drinking water supply
Usage
• Water use efficiency or water use ratio
• Quantitative accounting of internal operations
Recycle & Reuse
• Percentage of total volume of water recycled or reused
Discharge - Zero discharge
• Total water discharged by quality and destination
Assessment of Existing Practice
Risk Assessment
Sustainable Water
Management
Page 11
Approach to manage water risk
Public Disclosure
Stakeholder Engagement
Internal Process
Water Risk – Corporate Reporting on Water
Page 12
Murky Waters – Corporate Reporting on Water Risk
-Voluntary & Mandatory corporate reporting of 100 largest publicly-traded companies in 2008
-Chosen within 8 sectors ; beverage, chemicals, electric power, food, homebuilding, mining, oil & gas and semiconductors
-Assessment Criteria’s include:
-Water Accounting
-Risk Assessment
-Direct Operations
-Supply Chain
-Stakeholder Engagement
-Opportunities
Limitation : scoring is meaningful comparison only within sectors and not across all the 100 companies
Source : Murky Waters : Corporate Reporting on Water Risks
Page 13
Water Risk – Corporate Reporting on Water
73% reports some level of Physical Risk
48% reports some level of Litigation Risk
On a scoring scale of 0-100, no single
company surpassed 43 points
Source : Murky Waters : Corporate Reporting on Water Risks
Outline • Overview
- Water Risk - Drivers & Elements & Opportunities
- Water Management Strategies
• Water Reporting Initiatives
• Concept of Water Footprint - Integration of Water Footprint(WF) with Life Cycle assessment (LCA)
- Overview of ISO 14046
• Benchmark & Industrial experiences
• Conclusion - Potential Implementation Challenges in Malaysia
Page 14
Water Reporting Tools & Initiatives
Page 15
Source : UNEP – The CEO Mandate – Water Footprint and Corporate Water Accounting for Resource Efficiency
Water Related Initiatives
Existing Frameworks
Water Footprint Manual 2009
Calculation of the water footprint for different sectors (i.e. consumers, business and nations).
ISO 14046 Water Foot Print - Principles, Requirement and Guidelines (PWI)
This new standard aims to provide internationally harmonized metrics for water footprints.
ISO14040:2006 Life Cycle Assessment (LCA)
Incorporates water use assessment.. LCA has been standardized within the ISO 14040:2006.
Beverage Industry Environmental Roundtable (BIER)’3
Formed a ‘Water Footprint Network Group’ to develop sector-specific guidelines for measuring the water footprint of a product or enterprise.
The WBCSD Global Water Tool©
Excel workbook that maps water use and assesses water risks relative to global operations and supply chain by comparing sites with validated water and sanitation data on a country and watershed basis.
Page 16
Water Reporting Initiatives
Page 17
Global Water Tool
(WBCSD)
Outline • Overview
- Water Risk - Drivers & Elements & Opportunities
- Water Management Strategies
• Water Reporting Initiatives
• Concept of Water Footprint - Integration of Water Footprint(WF) with Life Cycle assessment (LCA)
- Overview of ISO 14046
• Benchmark & Industrial experiences
• Conclusion - Potential Implementation Challenges in Malaysia
Page 18
Water Footprint
An indicator that could map the impact of human consumption on global fresh water resources
Freshwater use includes consumption and pollution that contribute to the production of goods and services consumed by inhabitants of a certain geographical region
Divided into two;
-Water Footprint of a product
- Water Footprint of an individual
Page 19
Water Footprint
Page 20
Green Water
Volume of
evapotranspiration from agricultural or forest crops
Grey Water
Volume required to bring the pollutants to levels complying to local standards For water quality
Blue
Water
Volume evaporated or otherwise lost
from the manufacturing
Process
Water Footprint
Water Footprint
Page 21
Source : Global Water Summit 2011, presented by WWF -UK
Water Footprint
Page 22
Export.gov
TOP-DOWN APPROACH
• Individual production processes as their basic building blocks
• WF is estimated by mapping out the direct water requirements of a particular product system throughout the process chain associated
• Advantage : This approach can be combined with the methodological framework provided by Life Cycle Assessment
BOTTOM-UP APPROACH
• ‘Virtual Water Flow’ as the basic building blocks
• Estimate the WF by calculating the virtual water content of goods and international trade data
• The trade data is only traced to the immediate exporting country in most cases, due to the complexity in tracing to the origins of production
• Disadvantage: time consuming to carry out detailed process-based analyses and inevitable truncation error
Water Footprint Vs Life Cycle Assessment
Water Footprint
- Measures actual direct & indirect volumes of value chain
- Captures type of water use, location, timing
- Provides basis for local impact assessment and formulation of sustainable water use strategy
Limitations
- Does not provide direct measure of impact
- Absolute product scores are not meaningful in themselves
Strategic Risk Assessment , Operational Crisis prevention & Real Responses
Page 23
Life Cycle Assessment
- Quantifies all impact categories
- Risk weighting water categories generates aggregated impact scores
- Score provides basis for comparing products with respect to overall environmental impact
Limitations
- Aggregating water hides critical temporal and local scarcity dimensions of water
- Coefficient for impact weighting subject to interpretation/bias adding to uncertainty
Leadership & Marketing
The standard would:
• Deliver principles, requirements and guidelines for a water footprint metric of products, processes and organizations, based on the guidance of impact assessment as given in ISO 14044
• Define how the different types of water sources (e.g., ground water) and water releases (e.g., grey water) should be considered, and how local environmental (e.g., dry/wet areas) and socio-economic (e.g., developed/developing countries) conditions should be treated
• Address the communication issues linked to water footprinting (based on ISO 14020 series on environmental labels and declarations)
• Be compatible with the rest of the ISO 14000 family of environmental management standards.
Page 24
ISO14046 – Water Footprint – ‘Principles, Requirement and Guidelines’
Outline • Overview
- Water Risk - Drivers & Elements & Opportunities
- Water Management Strategies
• Water Reporting Initiatives
• Concept of Water Footprint - Integration of Water Footprint(WF) with Life Cycle assessment (LCA)
- Overview of ISO 14046
• Benchmark & Industrial experiences
• Conclusion - Potential Implementation Challenges in Malaysia
Page 25
Water Footprint Benchmark – National Level
Page 26
Average water footprint of Malaysia:
2103 m³/yr per capita
Part of footprint falling outside of the country:
32.2 %
Global average water footprint (for comparison):
1385 m³/yr per capita
Source : Water Footprint Network
Water Footprint Benchmark – Industrial Sectors
Page 27 Source : Water Footprint Network
Challenge we face to
ensure world’s rapidly
growing energy and
food demand as to
balance this with
water security
Water Footprint Benchmark – Products
1 kg of beef: 14-15,000 liters
1 liter of milk: 880 liters
1 liter of wine: 1000 liters
1 liter of coffee: 900 liters
1 liter of tea: 128 liters
1 kg of cereals: 1000-5000 liters
1 kg of steel: 260 liters
Source: Water Footprint Network
Page 28
Case Study – Coca-Cola
World largest beverage company
Water as the main ingredient and is an essential component of manufacturing process
Initiatives :
- Business unit level qualitative risk assessment in 2004 sensitized the system to water risk
- Detailed plant level quantitative risk assessment in 2005 & 2008/2009
Page 29
Case Study – Coca-Cola
Page 30
Case Study – Coca-Cola
Page 31
Page 32
Social License to Operate (Coke)
Local Scarcity Footprint and Targets ( SAB Miller, Levi’s)
Basin Governance (TSB, Sasol)
Human Right to Water (Pepsi)
Leadership & Stewardship (M&S , DEG)
Shared Risk (Flamingo)
Investor Risk (SwissRe, CDP)
Examples of Initiatives by Companies
Conclusion
Page 33
• There is an intrinsic link between the challenge we face to
ensure world rapidly growing energy and food demand as
to balance this with water security and other global
issues, most notably climate change.
• Need for a holistic water footprint effort within the
industries to mitigate water related risk.
• The global business community increasingly recognizes
the water challenge, but to respond effectively it needs
guidance, tools, standards and schemes to enable
change to more sustainable practices.
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About AECOM
Global Reach, Endless
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Ng Hon Seng,
Country Director, Malaysia
019-2340382
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