A Partnership with the Bottled Water Sector to End Water Poverty Photo Credit: Oxfam

A partnership with the bottled water sector to end water poverty Photo Credit:Photo Oxfam By capturing a tiny fraction of bottled water revenues, the Global Investment Fund for Water (GIFFW) aims... to end water poverty and tackle the sanitation challenge. 2 Executive Summary While consumers around the world buy Contents 376 billion litres of packaged water each year, Contents generating revenues of over $160 billion, Executive Summary more than 660 million of the world’s poorest Page 3 people still rely on unsafe water for drinking and 1. washing and more than two billion have no Introducing the Global access to adequate toilets. Investment Fund For Water Page 4 By capturing a tiny fraction of Detailed technical and financial 2. bottled water revenues, the analysis conducted over the past Global Investment Fund for year concludes that it is feasible Bottled Water and the Water (GIFFW) aims to generate for GIFFW to raise $100-200 Global Goals a significant, sustained source million per year in a ‘pioneer’ Page 6 of funds for targeted, catalytic phase by working with a select investments to provide sustainable group of companies that are water and sanitation services to already indicating their willingness 3. end water poverty and tackle the to participate. Raising revenues from sanitation challenge. bottled water Over 10-15 years, GIFFW aims The industry is ready to take part. to raise even greater sums for Page 14 Bottlers, retailers, distributors and investment and to become an consumers are already engaged integral part of the sector. 4. in a wide range of water-related GIFFW’s ambition is to be nothing CSR and sustainable development less than an independent and Smart investments, activities, and are looking for widely recognised indicator of changing lives further ways to engage with the industry best practice, an effective Page 16 new UN Sustainable Development means for collaboration and, Goals1, particularly SDG 6. most importantly, to make a substantial contribution to the 5. GIFFW is unique in proposing a delivery of sustainable water and way for the entire bottled water From pioneering partners to sanitation services where they are sector to engage collectively a new global standard needed most. in the achievement of the Page 20 Sustainable Development Goals. It answers a real need for a ANNEX 1 catalytic investment vehicle for water and sanitation projects Water bottlers and brands that engages the private sector, Page 22 governments, civil society and other stakeholders, and provides comprehensive plans on how such ANNEX 2 funds could be deployed. Retailers Page 23 1 On 25 September 2015, UN Member States adopted a set of 17 goals as part of a new sustainable development agenda. Each goal has specific targets to be achieved over the next 15 years. The goals are universal – they apply to developed and developing countries, and actively encourage participation and partnership by governments, private sector and civil society. www.un.org/sustainabledevelopment/sustainable-development-goals/ 3 1 Introducing the Global Investment Fund For Water The Global Investment Fund for Water (GIFFW) is built on the concept that micro-contributions from the bottled water sector can raise significant funds to help end water poverty2 for hundreds of millions of people. Although 2.6 billion people gained The GIFFW concept has been access to improved drinking developed over three years by water sources between 1990 and financial, technical, civil society 2015, 663 million people still rely and governance experts and is on unimproved water sources now confidently emerging as a and more than 2 billion still do partnership with the potential to not have access to a toilet. raise hundreds of millions, if not A much higher number have billions of dollars, for catalytic to use unreliable or expensive investments in water and services relative to income. In the sanitation activities. decades ahead, the challenge is This report sets out the GIFFW not only to ensure access to water concept: its alignment with and sanitation for all, but also to the UN-agreed Sustainable ensure that services are reliable, Development Goals, potential sustainable and fairly priced. fundraising mechanisms, and a The fast-growing bottled water disbursement strategy that will industry has a keen interest in address the most pressing needs the global sustainability challenge in the water and sanitation sector. in terms of managing water GIFFW’s aim is to become no less resources, plastic usage, waste than a globally recognised brand, reduction and recycling, and developed with and funded by the many companies already make retail and bottled water industry, substantial contributions to water working in close collaboration charities and related development with the public and third sectors, and sustainability activities. to provide sustainable water and 663m GIFFW’s aim is to take that sanitation services to the most people still rely commitment to scale, providing under-served people in the world. on unimproved a global platform for the bottled water sector to contribute to water sources ending water poverty – including bottlers and distributors, brand >2bn owners, retailers and consumers. people still do not have access to a toilet 2 In this report, ‘water poverty’ means the condition of not having access to 4 adequate water and sanitation services to meet basic needs. 5 2 Bottled Water and the Global Goals GIFFW’s primary focus is to support the achievement of SDG 6 by 2030: “Ensuring the availability and sustainable management of water and sanitation for all.” Sustainable Development By aligning with recycling Goal (SDG) 6 is central to the programmes and helping to achievement of almost all 17 reduce plastic bottle waste, Sustainable Development Goals. GIFFW will also seek to encourage Ensuring and protecting safe sustainable production and water supplies is essential to consumption (SDG 12). health, agriculture and economic development, ending hunger and poverty, and protecting life on land and below water. 6 The There is an encouraging alignment of views from water industryThe bottlers,There is anbrand encouraging owners and alignment retailers of around views from the GIFFW water viewindustry concept.bottlers, brandMany ofowners those andconsulted retailers about around GIFFW the like GIFFW view itsconcept. simplicity Many and of appreciatethose consulted the virtue about of GIFFWsupporting like outcomesits simplicity such and as appreciate water efficiency the virtue and of supportingsafe water supplyoutcomes for suchthose as who water need efficiency it most.3 and safe water supply for those who need it most.3 Most are aware of consumer Among the major bottlers and However, there is a growing expectations of the industry brand owners, there are different understanding that water and around water usage and views as to whether bottled water sanitation must be addressed stewardship, the use and should be seen as a separate together in the context of the recycling of plastic bottles, and drinks category or part of the SDGs, as poor sanitation can the provision of safe water in wider beverage industry, raising contaminate water supplies. Also developing countries. They the possibility that a micro-levy compelling is the fact that safe recognise the need to embrace could go beyond bottled water to sanitation is essential to keeping such challenges and respond. a broader range of consumables. girls in school and addressing gender inequality. More often than not, these already For retailers, who constantly shape their sustainability and review opportunities to frame and Ideally GIFFW will provide a CSR practices, while most also deliver their offer, GIFFW offers mechanism for collective action recognise that much more can be a simple yet effective scheme across the value chain that can done, particularly in a coordinated that may be easily grasped by achieve real change at scale to and efficient manner. GIFFW is consumers. Those who have been help achieve SDG 6 and make a seen as having distinct potential introduced to the GIFFW concept significant impact on achieving to put the bottled water industry agree that, when set up and many other Goals. GIFFW will at the forefront of achieving SDG 6 communicated effectively, it fulfils draw on development, finance by 2030. these criteria. and industry best practice with a recognised, independent Provision of clean water resonates brand that assures consumers particularly well with stakeholders, of the highest levels of industry while sanitation needs are harder engagement and transparency. to communicate. 3 futureau consulting, The Bottled Water Sector: Analysis, opportunities, engagement. www.giffwater.org 7 A fast growing sector….. In 2015, global sales of plain If value advances at a similar bottled water totalled 376 billion pace, the 2020 global market for litres, with a value of US$160 packaged water will be worth well billion. By 2020, global volumes over US$200 billion. are forecast to approach 520 billion litres on a compound annual growth rate (CAGR) of nearly 7%. Table 1: Total Bottled Water Volume & Value: Small Pack & Bulk by Region, 2015 VOLUME - BN LITRES VALUE - US$ BN VOLUME VALUE VPL* SML PACK BULK SML PACK BULK TOTAL TOTAL SML PACK UP TO 10.1 LITRES UP TO 10.1 LITRES BN LITRES US$ BN US$ 10 LITRES PLUS 10 LITRES PLUS ASIA PACIFIC 68.9 86.7 38.1 11.8 155.6 49.9 0.55 N AMERICA 37.8 6.1 34.0 2.0 43.9 36.0 0.90 EUROPE 4 64.3 3.7 38.5 1.0 68.0 39.5 0.60 L AMERICA 19.9 40.2 13.9 4.7 60.2 18.6 0.70 AFRICA 17.3 2.2 7.2 0.4 19.5 7.6 0.42 MIDDLE EAST 14.8 14.0 6.6 1.8 28.8 8.4 0.44 TOTAL 223.0 153.0 138.3 21.7 376.0 160.0 0.62 Source: futureau consulting limited based on industry sources * VPL – value per litre ….

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