core slides

Slide1 : 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: info@wbcsd.org Preparation of your PowerPoint Presentation Please note that this is a Working Document! Version January 2007


Slide2 : Business in the world of water


Slide3 : Sample Agenda, e.g. 10:00 – 12:00


Slide4 : Objective of this Session Understand water-business links …by using scenario framework as a tool


Slide5 : 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)


Slide6 : How much water will be withdrawn with respect to the amount that is naturally available? Freshwater Stress is Increasing… Faster than Expected ---- 2005


Slide7 : 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


Slide8 : Introducing the WBCSD Water Scenarios


Slide9 : Clarify and enhance understanding by business Objectives in Building these Scenarios Promote mutual understanding …and support effective business action


Slide10 : 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


Slide11 : WBCSD Scenario-Building Process


Slide12 : Introducing Scenarios: Learning from the Future


Slide13 : Understand the Scenarios yourself…


Slide14 : Reflect on how you could use them in your company


Slide15 : Strategy is about what we ‘should’ do Scenarios explore what ‘might’ happen Scenarios for Better Strategies…


Slide16 : Scenarios versus Forecasts


Slide17 : X Predictions Projections Preferences  Credible Challenging Coherent …stories describing paths to different futures, that help us make better decisions today What are Scenarios?


Slide18 : Introducing the WBCSD Water Scenarios


Slide19 : Complex Interplay of Local and Global Influences…


Slide20 : Three Parallel Stories


Slide21 : Key Story Themes


Slide22 : 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.


Slide23 : Unlocking Legacies of the Past Photo: Naval Safety Center


Slide24 : Efficiency Photo: © Unilever Over the last two decades, Eskom has introduced a number of innovative technologies to save water. These include dry cooling, desalination of polluted mine water for use at the power stations, etc. In doing so, more than 200 million liters of water are saved every day. E.g.: Dry cooling technology uses about 15 times less water than conventional wet-cooled power stations.


Slide25 : Rivers Security for all… in terms of quality and quantity Security Deficit Trust Deficit Local Partnerships « Water management is, by definition, conflict management. » Worldwatch Institute, 2005


Slide26 : Redistribution Challenge Agriculture: 70% Industry: 22% Domestic: 8%


Slide27 : 2-sides: ‘Haves’ and ‘Have-nots’ Photo: © International Federation of Red Cross and Red Crescent Societies Aug 2006: Kerala, India ban on Coke and PepsiCo products after Centre for Science and Environment said they contained unsafe levels of pesticides. Six other states in India prohibited sales at or near schools, colleges and hospitals. Sep 2006: Kerala ban lifted by an Indian court due to inconsistencies in the group's analysis. ‘Coca-Cola India has always been completely confident of the safety of its soft drinks in India because they are produced to the same level of purity, regarding pesticides, as the EU criteria for bottled water (globally accepted as one of the most stringent in the world).’ Sep 29 2006 The Coca-Cola Company statement, www.coca-cola.com


Slide28 : 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.


Slide29 : 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


Slide30 : Unintended Consequences


Slide32 : 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…


Slide33 : 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


Slide34 : For your Company, is Water a…


Slide35 : What are you going to drink for lunch?


Slide36 : 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


Slide37 : EXTRA SLIDES


Slide38 : 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


Slide39 : Orientation Scenario Building Affirmation Application Jan-Sept 2005 Oct 2005 Jan 2006 2006 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


Slide40 : 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


Slide41 : 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


Slide42 : Hydro Beijing Olympic Games 2008 Hydro Economy Huge Opportunities In the Shadow of the Olympics More and More Mega Cities Positive press coverage doesn’t 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


Slide43 : 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. 2012 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


Slide44 : 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


Slide45 : Unlocking Legacies of the Past Photos: Naval Safety Center, www.safetycenter.navy.mil


Slide46 : Unlocking Legacies of the Past


Slide47 : Rebound effects – what you do with the energy you’ve saved


Slide48 : 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 1st time, middle-class households struggle to pay for water bills


Slide49 : 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.


Slide50 : 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, PPP’s: 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


Slide51 : 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 PPP’s, business help shaping policy Rivers Security for all… in terms of quality and quantity


Slide52 : Security Deficit


Slide53 : 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


Slide54 : 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


Slide55 : 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.


Slide56 : 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


Slide57 : Asleep at the Water Wheel – Flooding Photo: © UN Photo/ Sophia Paris


Slide58 : Natural Phenomenon – Sea rise Picture: © Food and Agriculture Organization of the United Nations


Slide59 : Interconnected


Slide60 : 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.


Slide61 : How do companies plan to use the scenarios? Test strategy (corporate, operations, product?) Raise awareness of water issues Multi-stakeholder dialogue


Slide62 : Discussion in Groups – 30 minutes


Slide63 : 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?


Slide64 : 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?


Slide65 : 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?


Slide66 : 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?