HOW BUSINESS AND ORGANIZATIONS AROUND THE WORLD ARE ADDRESSING THE WATER STEWARDSHIP AGENDA

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1 HOW BUSINESS AND ORGANIZATIONS AROUND THE WORLD ARE ADDRESSING THE WATER STEWARDSHIP AGENDA 3 rd Karachi International Water Conference Adrian Sym, CEO, Alliance for Water Stewardship November 21 st, 2017

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3 WATER AND STRATEGIC POLICY MAKING Pakistan Mongolia China Bhutan North Korea South Korea Nepal India Taiwan MyanmarVietnam Laos Bangladesh Thailand Philippines Cambodia Brunei Sri Lanka Malaysia Singapore Indonesia East Timor Japan Papua New Guinea - Up to 3.4 billion could be living in water-stressed areas of Asia by Demand will grow by 30-40% but in most areas water fully allocated and groundwater depleting - Asia-Pacific cannot sustain economic growth unless water is brought into the equation (ADB 2016) Australia New Zealand Source: OECD 2017 Water Hotspots

4 WATER AND STRATEGIC POLICY MAKING Source: OECD 2017 Water Hotspots

5 WATER & PEOPLE S EVERYDAY NEEDS

6 WATER AND BUSINESS RISK PHYSICAL RISK: Too much water, too little water, future sustainability REPUTATIONAL RISK: Consumer, community, investor, government perceptions REGULATORY RISK: Actual or potential regulator action

7 WATER AND BUSINESS RISK

8 WATER AND INVESTOR CONCERN Water Crises

9 WATER STEWARDSHIP DEFINITION The use of water that is:- socially equitable environmentally sustainable economically beneficial achieved through a stakeholder-inclusive process that involves: site and catchment-based actions

10 WATER STEWARDSHIP FOCUS With water stewardship, the focus moves from Water as an input to be managed to Water as a shared asset to be stewarded Recognizing the value water creates for communities and businesses

11 WHY A WATER STEWARDSHIP STANDARD? Incentivise private sector water users to exceed minimum regulatory requirements Enable global consistency of approach and outcomes Drive transparency Ensure needs and challenges of diverse stakeholders are understood and addressed Connect global drivers with locally-appropriate action

12 AWS STANDARD SYSTEM SIX STEPS FOUR OUTCOMES Independent 3 rd party certification Credible claims of meeting best practice

13 AWS STANDARD IN A NUTSHELL PROCESSES CONTEXT OUTCOMES Catchment conditions Stakeholders concerns Shared water challenges Risks & opportunities Site water stewardship strategy & plan Water Balance Water Quality Water-related values Water governance

14 GLOBAL UPTAKE OF AWS STANDARD AWS Certified sites Sites formally seeking AWS certification

15 WATER STEWARDSHIP IN PAKISTAN WAPRO Project Nestle Islamabad Lahore City Wide Partnership Nestle Kabirwala Nestle Port Qasim Archroma Pakistan Ltd

16 PAKISTAN WATER STEWARDSHIP NETWORK

17 EXAMPLE FROM CHINA: INDUSTRIAL PARKS Kunshan Qiandeng Town 136 firms 12 pilot sites Kunshan City Industrial Water Stewardship Engage more Program IPs in China Top 30 polluters involved A full-year of engagement and incentive schemes to be introduced Changzhou Textile IP 14 firms 1 pilot sites Tianjin TEDA firms Recognition scheme IP Management New project proposal with TEDA Eco-center on Capacity Building to Industrial Park Managers in ASEAN countries Other Asian Countries & Onwards

18 EXAMPLE FROM CHINA: INDUSTRIAL PARKS Online Monitoring Mandatory Response Plan for Spilt PUSH Reduce Discharge Permit by 20% Penalty Tariff Rate Water/Electricity Drainage Water Quality Control Daily Fines on Illegal Discharge Subsidy for Upgrade / Renovation Env. Credit Rating (Green Finance) PULL Reward on Actual Reduction of Pollution Loading Reward on Achieving Certification (e.g. AWS) Permit Trading Scheme Green Supply Chain

19 EXAMPLE FROM CHINA: INDUSTRIAL PARKS Key learnings - AWS Standard needs Sector Specific Knowledge - Needs to further strengthen the capacity of Industrial Park Management - Approach needs to leverage AWS system to attract other stakeholders to join - Global Brands - Financial institutions - Local NGOs - Various levels of government authorities - Localize and materialize incentives for water stewardship & AWS Certification

20 EXAMPLE FROM PERU: AGRO EXPORT

21 EXAMPLE FROM PERU: AGRO EXPORT

22 EXAMPLE FROM PERU: AGRO EXPORT

23 EXAMPLE FROM PERU: AGRO EXPORT PUSH POLICY PULL

24 EXAMPLE FROM PERU: AGRO EXPORT - One certified site - Four other sites pursuing certification - Concrete interest from other retailers & traders - Investor led project beginning to build capacity to apply AWS Standard with clients in Peru - Foundations for stakeholder platform - Negotiations with National Water Authority on linking AWS Standard to Blue Certificate

25 EXAMPLE FROM SCOTLAND: HEALTHCARE NHS HIGHLAND - Aiming to have world s 1 st AWS certified healthcare facility

26 000's EXAMPLE FROM SCOTLAND: HEALTHCARE NHS Highland Drugs Spend Public Health the Hidden Cost / Total

27 EXAMPLE FROM SCOTLAND: HEALTHCARE - Up to 90% of an oral dose is excreted as a active substance and enters the water system - More than 600 pharmaceuticals have been found in the environment worldwide. - Pharmaceuticals can end up in drinking water, and accumulate in fish, vegetables, and livestock. - Some medicines are worse than others because of their potential to affect people and wildlife, e.g. antibiotics, antidepressants, painkillers, anti-inflammatories

28 CONCLUSION - Clear private & public benefits from water stewardship - Enables coordination of multiple policy objectives - Long term, water stewardship needs to demonstrate contribution to systemic change - To do so, we need to understand that water stewardship is 10% H²O, 90% people