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SOLVING the WATER CRISIS: LESSONS from CLIMATE CHANGE Front Cover Image AUGUST 2021 © 2021 Pollination Group IMPROVING GOVERNANCE UNIFYING UNDERSTANDING ATTRACTING THROUGH A BUILDING AROUND A AGREEING AND MANAGING FINANCE AND BASIN-BASED SYSTEM-WIDE COMMON GOAL THE SCIENCE WATER RISK INVESTMENT APPROACH RESILIENCE SOLVING THE WATER CRISIS: LESSONS FROM CLIMATE CHANGE Front cover image: MACKENZIE RIVER, NORTHWEST TERRITORIES, CANADA In far northern Canada, pulses of freshwater flow down rivers after inland ice and snow melts. These pulses, known as a freshet, carry huge amounts of sediment. The sediment seen in this image flowed into the Beaufort Sea from the Mackenzie River, the longest northward-flowing river in North America. Source: Photo by USGS on Unsplash ACKNOWLEDGEMENTS This report was produced by Pollination, with key authors being Martijn Wilder AM, Mina Guli, Olivia Kelly, Richard Saines and Marisa Martin. Thanks also goes to Debra Jason for the design work. Additional contributions were provided by Holly Buschman, Howard Bamsey, Dr Emma Carmody, Peter Gleick, Gemma James, Erika Korosi, Stuart Orr, Colin Strong and Jed Youngs. This report is targeted to those who are working in the water space as well as investors and corporates who have a critical role to play in ensuring a secure water future. We are grateful for the funding provided by the BHP Group to assist in conceiving and contributing to this report and in doing so to encourage new thinking for global water stewardship. BHP Group’s own Water Stewardship Position Statement is available here. All views contained herein remain those of the author alone, and do not necessarily represent the views of BHP Group or any other persons who contributed to this paper. 2 of 80 WATER REPORT 2 EXECUTIVE SUMMARY 18 WATER 25 BROAD INSIGHTS TO WATER FROM THE APPROACH TO CLIMATE CHANGE 29 SCIENCE & DATA 34 GOVERNANCE & RESOURCE MANAGEMENT 41 CORPORATE CLIMATE ACTION, CLIMATE RISK & DISCLOSURE 48 ADAPTATION 52 FINANCE 59 NATURE-BASED SOLUTIONS 64 TECHNOLOGY TRANSFER 68 WORKING IN KEY SECTORS – ENERGY & AGRICULTURE 72 STORAGE 75 AWARENESS, LEADERSHIP & COMMUNICATION 79 WATER & PRICING SOLVING THE WATER CRISIS: LESSONS FROM CLIMATE CHANGE 1 of 80 EXECUTIVE SUMMARY “WATER IS LIFE.” IT’S ONE OF THE MOST COMMONLY USED PHRASES IN THE WATER SECTOR, AND FOR THOSE WHO HAVE BEEN TO SOME OF THE MOST WATER-SCARCE PLACES ON THE PLANET, IT’S OBVIOUS. 2 of 80 EXECUTIVE SUMMARY Note from the authors Aerial photographs of places like Egypt show a bright strengths within the water sector, and reflects on green band wending its way through the barren learnings we can take from the pitfalls within it. All desert – the green banks of the Nile bright with life. of this is done within the context of the lessons we can take from within the climate space, which can At the same time, and as the World Economic Forum be applied to accelerating action towards water’s is consistently acknowledging, water is in crisis. Sustainable Development Goal 6 (SDG6). A significant decline in the available quality and quantity of freshwater, resulting in harmful effects on You will note that the recommendations in this report human health and/or economic activity. The sheer do not identify known actors within the water sphere uncertainty around the future water availability is who should progress these recommendations or lead causing planning problems for cities, communities, them. This is a deliberate omission. Our call to action businesses, farmers, and households. It relates to is for the water sector to now coalesce around these everything, and everyone, everywhere. recommendations and come together to identify who is best to progress these recommendations, Water is an immense topic. From water access, either led by individual organisations or through a water sanitation and hygiene to water scarcity. coalition. This report is targeted to those who are There is much to learn, to share and to understand, working in the water space as well as investors and and even more to do if we are to protect and preserve corporates who have a critical role to play in ensuring our world’s water supplies for the future. This report a secure water future. explores the lessons and learnings from climate change that we can extract and apply to water – We are grateful for the contributions and feedback as much what we should avoid, as what should apply. on this report from the following individuals: Holly Buschman, Howard Bamsey, Dr Emma Carmody, In preparing this report we have had many Peter Gleick, Gemma James, Erika Korosi, Stuart Orr, discussions with people within the water and climate Colin Strong and Jed Youngs. We are also grateful for area to include their reflections on the strengths and the funding provided by the BHP Group to deliver this pitfalls within the current approach to water and to report and in doing so to encourage new thinking for identify where there are existing solutions that should global water stewardship. be amplified. We recognise that this field contains a depth of expertise, insight and understanding. For this I commend this report to you. May it spark thought, reason, this report does not intend to simply restate debate and, above all, a greater understanding of the the current position on water. challenges and opportunities we face as we address one of the greatest risks facing our generation. Many of the solutions required to address the water crisis are already in operation in particular regions Water. and through specific organisation platforms. What is required however, is rapid scaling of these existing solutions accelerated through collaboration. This Martijn Wilder AM. report draws out some of the examples of the existing Founding Partner, Pollination SOLVING THE WATER CRISIS: LESSONS FROM CLIMATE CHANGE 3 of 80 RIVER NILE, SUDAN It is easy to see from this image why people have been drawn to the Nile River in Egypt for thousands of years. Green farmland marks a distinct boundary between the Nile floodplain and the surrounding harsh desert. Source: Photo by USGS on Unsplash SOLVING THE WATER CRISIS: LESSONS FROM CLIMATE CHANGE 4 of 80 EXECUTIVE SUMMARY Insights and key recommendations he Earth is facing a major water crisis. Freshwater ecosystems are dying, freshwater species populations are collapsing, and wetlands are T disappearing faster than forests. While health messaging encourages good hand hygiene, billions of people lack access to adequate handwashing facilities. With an increasing demand for the planet’s limited supplies of freshwater, material water shortages are visible around the world. Rivers no longer meet the ocean, lakes are drying up, towns report no access to drinking water and major cities are literally running dry. These are not just isolated incidents in far-flung places across the world, they’re part of an increasing trend – the paring away of where we are now, from where we need to be: on water management, quality, access, availability, distribution and use. Without immediate action, that ever-widening gap (the “Gap”) is expected to accelerate with massive repercussions on communities, economies, and ecosystems around the world. This report explores the degree to which the history, context, and key elements of the approach to climate change can provide insights and lessons on dealing with, and managing, the global water crisis. Resolving a path forward to “Close the Gap” between the goals set out in SDG6 and the current state of play will require an extremely rapid acceleration of action across all sectors, from consumers to policymakers, corporates and investors. Learning from the successes and failures of the climate community is a step on that path. Implementing those insights and lessons in a cohesive and strategic way across multiple geographies and a wider ranging group of stakeholders will require the water community to break down its traditional siloed approach and come together in a way it has never done before. SOLVING THE WATER CRISIS: LESSONS FROM CLIMATE CHANGE 5 of 80 EXECUTIVE SUMMARY Insights ver the last 30 years the international community has built a global international Oclimate change law and policy governance regime, commencing with the 1992 United Nations Framework Convention on Climate Change (UNFCCC). This framework has been critical for bringing together and driving international effort on adopting commitments to address climate change and to set the ambitions to lower both annual carbon emissions, and consequently, total atmospheric concentrations of greenhouse gases. It has also supported significant engagement by non-governmental organisations and businesses driving measures that reduce greenhouse emissions and investing in activities that drive efforts to move Woman Farmer, Paddy Field, Nedumangad, India. the global economy to net zero emissions. In the last few years, increasing pressure by WATER IS ABOUT MORE investors, shareholders and financial regulators THAN SUPPLY AND SCARCITY have accelerated action on climate change through Water extends far beyond issues of supply, scarcity, driving a shift of capital and investment away quality, sanitation, and management. Water from activities that contribute to climate change underpins all ecosystems on the planet and holds toward areas of the economy that will assist with enormous cultural and spiritual value for first nations decarbonisation, in particular new/renewable communities. Water has the power to fundamentally energy, transport and forestry. change the lives of people around the world. Women and girls, rural farmers, fishermen, communities, Despite
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