Water Risk in Brazil and Water Stewardship as a response Agenda
1 Introduction to United Nations Global Compact (UNGC)
2 Current situation of water resources in Brazil
3 Water Stewardship as a Response
Examples of practices in Brazilian 4 companies Introduction to United Nations Global Compact (UNGC) United Nations Global Compact (UNGC) • Launched by UN Secretary-General Kofi Annan in 2000; • With more than 12,000 signatories, 9,000 of which are companies; • More than 85 Local Networks in 100 countries; • The world’s largest voluntary corporate citizenship initiative. The Ten Principles of the UN Global Compact Value Proposition Articulation with public policies of the UN Global Compact Tools and Platforms
Local Action
Events
Reporting
Recognition • Launched in 2003; Global Compact • The Global Compact Network in Brazil today is the fourth biggest local network, with more Brazilian Network than 700 signatories (250 SMEs); • Partnership with UNDP since 2011; • Governed by a committee of 40 organizations; • Board: BASF; B3, CPFL Energia, ENEL Brasil and Itaú Unibanco; • Six lines of action: o Anti-corruption; o Human rights; o Water; o Food and Agriculture; o Energy and Climate; o Sustainable Development Goals - (SDGs). Sustainable Development Goals (SDGs) Water Working Group
Os Objetivos de Desenvolvimento Sustentável
To collaborate to build a water governance agenda in the signatory companies, elaborating contents, tools, studies and promoting trainings, capacity building, building projects in partnership with organizations of interest in a collaborative way.
• Launch of Less Loss, More Water Movement in 2015; • Partnership with the CEO Water Mandate to internalize the Water Stewardship culture; • Multisetorial discussions. Current situation of water resources in Brazil In 2030, will there be water for all Brazilians?
• Brazil has 12% of the total volume of fresh water from all over the world. Challenges: • Continental dimensions and diversity; • Disproportionate distribution per region; • Unsuitable water resources management; • The lack of citizens' environmental education; • Water losses in water supply; • Poor supply infrastructure; • Lack of wastewater treatment;
• Droughts and floods. http://arquivos.ana.gov.br/imprensa/noticias/20150902_O CDE-GovernancadosRecursosHidricosnoBrasil.pdf Brazil – Local Water Risks
• WRI’s Aqueduct project analyzed water stress in Brazilian cities with more than 1 million people. • High competition of the water naturally available between different users. • Businesses, farms, and communities vulnerable to scarcity. Brazil – Local Water Risks
• Pronounced wet and dry seasons seasonal variability. • Northeastern has experienced considerable fluctuations in total average water supply from year to year high inter-annual variability. • Inter-annual variability may be increasing in southern and southeastern Brazil heavy deforestation of the Amazon Brazil – Local Water Risks
• Two Contrasting Severe Seasonal Extremes in Tropical South America in 2012: ❖ Intense rainfall and floods in Amazonia. ❖ A severe drought in Northeast Brazil. • Both events were considered records for the last 50 years; • Many districts in Amazonia and Northeast Brazil states declared a disaster area. Impacts: • Severe increase of the water level for the local urban and rural riverside population in the Amazon; • Agricultural loss and food supply compromised in the cities of Northeastern Brazil.
Source: Marengo, Jose A., et al. "Two contrasting severe seasonal extremes in tropical South America in 2012: flood in Amazonia and drought in northeast Brazil." Journal of climate 26.22 (2013): 9137-9154. http://mtc-m21b.sid.inpe.br/col/sid.inpe.br/mtc-m21b/2013/11.27.13.23.04/doc/Marengo_two.pdf Brazil – Local Water Risks
Population and water demand have increased in recent decades Brazil – Local Water Risks
• Deforestation in the Amazon: ➢ Link with the occurrence of droughts in Brazil ➢ Interfere with the forest’s function “giant water pump”. Water-Related Risks Local Water Risks in Brazil PHYSICAL RISKS: water scarcity Example: The drought and the water crisis of 2014-2015 in São Paulo
Causes: • Low rainfall amounts; • Increased demand for water; • Inefficient water management system; • Climate change; • Inadequate policies; 15.mai.2014 - Homens caminham pelo leito seco de um • Lack of environmental education. dos reservatórios do sistema Cantareira. Impacts: • Socioeconomic impacts (tourism and leisure along riverbanks and dams); • Increases in food prices; • Increases energy tariffs in homes, industries and commerce. Local Water Risks in Brazil PHYSICAL RISKS: water scarcity Example: Drought and the water crisis of 2014-2015 in São Paulo:
Agriculture: • Crops affected: sugarcane, orange and beans. • The price of products increased tomatoes and lettuce. Industrial sector: • The city of Tambaú loss of R$ 4 million with the fall in production. • Water rationing: ➢ Anticipate the collective vacations; ➢ Interrupted production. • The manufacturer of engines Cummins: ➢ Water trucks; ➢ Each one costed about R$ 1 thousand. Local Water Risks in Brazil
PHYSICAL RISKS: water scarcity
Example: Drought and the water crisis of 2014-2015 in São Paulo:
Hydro-electric energy:
• The losses reached about R$ 20 billion by the end of 2014. • The production of hydroelectric power was interrupted. • Thermal energy, alternatively.
Damage to some companies:
• Hewlett Packard: US$5 million increase in electricity costs. • General Motors Company: increase in electricity costs by US$5.9 million. The company responded with energy efficiency measures. Local Water Risks in Brazil PHYSICAL RISKS: floods Example: Losses in agriculture and livestock due to the floods that affected municipalities of Amazonas • Agricultural losses R$ 4.4 million (IDAM). • The banana crop loss of almost R$ 2 million.
Measures taken to avoid further losses:
• Anticipation of the planting of certain products. • Transfer of several herds. ❖ Much higher costs acquisition of rations and the rental of pasture. Local Water Risks in Brazil
RISK DUE TO THE RIVER BASIN
Example: water crisis that occurred in São Paulo in 2014-2015 • The industries suffered serious reductions in their activities; • Decrease in the level of reservoirs Alto Tietê and the Cantareira; • Priority for water supply was for human consumption; • Reduction of river flow; • Deterioration of water quality; • Greater investment in treatment.
Indústria de São Paulo sofre os efeitos da crise hídrica. Local Water Risks in Brazil REGULATORY RISKS • National Water Resources Policy; • National Policy on the Environment; • Environmental licensing: ✓ Activities polluting; ✓ Disagreement with environmental legislation; ✓ Fines or interruption of activities. Example: • State Foundation for Environmental Protection (Fepam); • Cettraliq company (RS); • Treatment of liquid effluents; • Releasing effluents in the Guaíba River (RS); • Emitting odors above the threshold set by the environmental license. Local Water Risks in Brazil REPUTATIONAL RISKS:
The collapse of the Fundão Dam in Mariana/MG
• 35 km from the center of the municipality of Mariana (MG), on November 5, 2015. • Mining tailings dam controlled by Samarco Mineração S.A. • Total volume dumped: 62 million m³. • Pollution of the Rio Doce (Doce River) that supplies the population in MG and ES. • Recovery of 5,000 streams along the Doce River. • Socioeconomic and environmental rehabilitation works R$20 billion over 15 years. Questions Introduction to CEO Water Mandate e Water Stewardship as a Response to the water risks in Brazil Introduction CEO Water Mandate
• Initiative of the UN Global Compact. • Launched by UN Secretary General in 2007. • Implemented in partnership with the Pacific Institute, companies and the UN Global Compact.
https://ceowatermandate.org/ CEO Water Mandate Objective
To mobilize a critical mass of business leaders to address global water challenges through corporate water stewardship, in partnership with the United Nations, governments, civil society organizations, and other stakeholders.
DIRECT SUPPLY CHAIN COLLECTIVE PUBLIC COMMUNITY TRANSPARENCY OPERATIONS AND WATERSHEDS ACTION POLICY ENGAGEMENT AND DISCLOSURE Commitment to the Mandate’s Six Key Elements
Direct Operations: water-use assessments; targets for conservation and waste-water, etc.
Supply Chain and Watershed Management: supplier sustainability strategies; assess and respond to watershed risk, etc.
Collective Action: civil society, governments, UN, other water initiatives, etc.
Public Policy: inputs to public-policy making; advocacy on water sustainability, etc.
Community Engagement: support local groups; water education; infrastructure, etc.
Transparency: report on implementation and progress How can companies join the CEO Water Mandate?
• Open to companies of all sizes and industry sectors and from all parts of the world. • Restricted to existing business members of the UN Global Compact.
Requirements: • The company must be an UN Global Compact participant or intend to become one within six months • To report annually on their implementation progress, • To report annually their progress in implementing the six key elements of the Mandate.
https://www.unglobalcompact.org/take- action/action/water-mandate Water Stewardship Progression
OPERATIONS CONTEXT STRATEGY ENGAGEMENT
Provide WASH services in the workplace Advance Understand sustainable water water-stressed and management and high-risk basins Measure and Integrate water collective action monitor water management into practices business strategy Assess risks and Facilitate improved impacts in the performance in the value chain Drive water value chain efficiency and reduce pollution
COMMUNICATION
Achieve meaningful & inclusive dialogue with stakeholders Business Benefits of Stewardship
ACTION BUSINESS BENEFITS •Save money Water efficiency •Build resilience to water stress •Protect license to operate Reduce pollution •Comply with regulations and prevent fines •Reduce water stress facing your Encourage others to improve water operations and your suppliers’ performance operations •Strengthen reputation and credibility •Foster a dependable supply of Support public water governance water •Build reputation and credibility SUPPORTING FUNCTIONS WORKSTREAMS GOALS CEOWater 2016 Mandate • The The Water Stewardship • Working Group Supply Chain and and Watershed Toolbox Management Support Endorsers’Support Commitmentsto Supply Operations, Sustainable Management and Support AchievementSupport Sustainable2030of Development Goal 6: Chain Projectand Working Group Facilitation StrategicPlanning Technology and Communications Governance and Accountability • Recruiting and Fundraising • Integrity in Water Stewardship Collective Action on Water Best Practices for Effective Access to Initiatives Events Collective Action and and PolicyPublic Engagement, Community Community and Partnerships the Mandate’s - 2018 Strategic Plan Strategic 2018 Waterand Sanitation forAll , Six CoreElements • • Harmonized Corporate Water Alignment Reporting Metrics with with SDG6 Transparency Disclosure and Impact Impact Direct Operations, Supply Chains, and Watershed Management
▪ Support companies in addressing WASH, wastewater quality, water efficiency in direct operations. ▪ Improve effectiveness of supply chain stewardship. ▪ Provide guidance on water risk evaluation tools, results, and integration into water stewardship strategy ▪ Help meet commitments to respect the HRWS. Collective Action, Community Engagement and Public Policy
• Facilitate credible, fair, and effective multi-stakeholder water stewardship initiatives; • Development of collective action impact metrics; • Support achievement of human rights to water and sanitation;
• Advocate for and engagement on implementation of SDG6; • Tracking and providing input to metrics and indicators at international level; • Provide avenue to showcase private sector practice. Water Action Hub (WAH)
• Online platform; • To efficiently identify potential collaborators; • Engage in water-related collective action; • To improve water management in regions of critical strategic interest.
https://wateractionhub.org/ Resources and tools https://ceowatermandate.org/ Transparency and Disclosure
• To define and promote common metrics across the corporate water stewardship community; • Influence and align with SDG6 target indicators; • Refine tools and guidance to support an integrated approach to setting context-appropriate corporate targets and reporting meaningful progress. SDG6 Targets Proposed Indicators 6.1 Access to Water % population with water access % pop with safe sanitation 6.2 Sanitation & Hygiene % pop with access to hygiene % WW (vol) safely managed 6.3 WW and WQ % water bodies with WQ % change in WRE 6.4 Efficiency withdrawal % of available IWRM implementation (0-100) 6.5 IWRM % TB area managed 6.6 Ecosystems % change in wetlands extent 6.a Cooperation ODA in % of publ spenditure 6.b Participation % local units with participation Partnership and Collective Action Platforms • Partnership of private and public sector businesses and organizations; • Working together to strengthen businesses contribution to achieving the Sustainable Development Goals (SDG). • Aims to mobilize business to address water, sanitation and hygiene (WASH) challenges in the following places: ➢ Workplace; ➢ Communities where companies operate; ➢ Across supply chains.
WASH4Work’s Current Partners: Partnership and Collective Action Platforms https://wash4work.org/ Business Alliance for Water and Climate
• Launched by CDP, CEO Water Mandate, SUEZ, and World Business Council for Sustainable Development (WBCSD) in December 2015. • To analyze and report water-and-climate-related risks and impacts, and to implement collaborative response strategies along the value chain. • 50 member companies the goal is to reach 100 by 2018. • 16 case studies. http://bafwac.org
Key objectives are to: The three areas of action are: • Increase the number of companies • Climate resilient agricultural supply committed to BAFWAC actions; chains; • Ensure broad uptake and action on • Circular water management: water improving water security from the reuse and resource recovery; private sector; • Natural infrastructure (including • Track progress from committed hybrid green/grey solutions). companies as to their progress on each of the three actions. Questions Examples of practices in Brazilian companies Context of Water Stewardship in Brazil
In Brazil, companies where water is an intensive use input have achieved efficiency through water management programs.
Good Practices and Examples in Brazil:
▪ Nestlé;
▪ SAVEh – Hydroefficiency self-evaluation System – Ambev;
▪ "Less Loss, More Water Movement“. WATER STEWARDSHIP @ NESTLÉ
Relatório Nestlé na Sociedade Criação de Valor Compartilhado 2016 http://corporativo.nestle.com.br/asset-library/documents/rs2016_2.pdf WATER STEWARDSHIP @ NESTLÉ
W EFFICIENCY – 2 Factories ZERO WATER CAPTED Reduction of 35% of water per ton produced by 2020
A ADVOCACY – long-term partnerships for collective constructions – CEO Water Mandate
T TREAT efficiently – Internal requirements more restrictive than legislation
E ENGAGE – involve suppliers in water management with a focus on impacts at the river basin level
R AWARE – Water Education for students and teachers – WET Project
Relatório Nestlé na Sociedade Criação de Valor Compartilhado 2016 http://corporativo.nestle.com.br/asset-library/documents/rs2016_2.pdf SAVEh – Hydroefficiency self-evaluation System – Ambev
• Free platform through which Ambev shares its water management system with other companies. • Ambev has reduced water losses by 40% in the last 13 years. • Completion of a self-diagnosis customized action plan for each company. • Designed by Ambev together with the Avina Foundation. • To assist small and medium-sized companies that use water in their production process to reduce water consumption. https://saveh.com.br/ "Less Loss, More Water Movement"
• 6.5 billion m³ of water are wasted in Brazil. • R$ 8 billion in economic losses for the country. • It was created to reduce water loss in distribution systems. • UN Global Compact Network Brazil initiative compliance with the SDG6.4. • Led by the companies Braskem and SANASA. • Aims to enhance the efficiency of water distribution until 2030. • Creation of a broad debate on water losses in distribution systems. • Participation of governments, civil society and the private sector, and the engagement of previously selected municipalities. https://www.youtube.com/watch?v=eXVfjz_anUA Questions Thank you CONTACTS:
Mai-Lan Ha [email protected]
Mariana Paál F. Martinato [email protected]
Cristiani Vieira [email protected]
Giuliana Chaves Moreira [email protected]
Sites www.pactoglobal.org.br http://www.ceowatermandate.org