Applicability of Water Stewardship Tools to Large Industries: Great Lakes Case Studies

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8 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Applicability of Water Stewardship
Tools to Large Industries:

Great Lakes Case Studies

Dale K. Phenicie
, Council of Great Lakes
Industries

Wendy Larson
,
LimnoTech

Joe
DePinto
,
LimnoTech

Paul
Wiegand
, National Council for Air and Stream
Improvement


IAGLR 2012, Cornwall, ON

May
13
-
17,
2012

Why This Project?


Heightened focus on water


Greater attention on water use performance


Greater international dialogue, especially for water scarce
areas


Many water tools


Need for industry to understand emerging tools


Expectation for industry participation


Tools might become de facto regulation


Concerns of water availability and access


Focus on industrial effects


Applicability to big industry in all areas?




2

Study Sponsors


Council of Great Lakes Industries (CGLI)


Great Lakes Protection Fund (GLPF)


National Council for Air and Stream
Improvement (NCASI)


Electric Power Research Institute (EPRI)


3

Overview


Drivers for water stewardship initiatives


Summary of tools and underlying metrics


Relevance to Great Lakes Industries


4

Why Businesses and Investors

are Interested



Financial Risk


Costs


Revenues



Physical Risk


Scarcity, quality


Regulatory Risk


Change in rules of the
game, less
availability, loss of
license to operate


Reputational Risk


Loss of market share




5

Selected Global Water Stewardship Tools


Water Footprint
Network (WFN)


ISO Water Footprint Standard


Alliance for Water Stewardship
(AWS)


European Water Stewardship (EWS)
Standard


Global
Reporting Initiative (GRI
)


World Resources
Institute
(WRI)
Aqueduct
Project


WBCSD Global
Water Tool


WWF
-
DEG Water Risk Filter


Carbon Disclosure Project (CDP)
Water Disclosure Project


CERES Aqua Gauge



Global Environmental Management
Initiative (GEMI) Local Water Tool


UNEP/SETAC Life Cycle Initiative


Strategic Water Management
Framework (Australia minerals)


UN CEO Water Mandate


Veolia Water Impact Index


Federation House Commitment to
Water Efficiency


Water Brief for Business


Water Neutral Offset Calculator


WaterSense Certification Scheme


Water Stewardship Initiative



6

Four Categories of Tools


Water use accounting (i.e., Water
Footprinting
)


Business risk assessment frameworks


Reporting and disclosure protocols


Standards and certification frameworks



7

Study Approach


Review of key water stewardship initiatives and
underlying “metrics”


Selection of metrics for evaluation


Application to four industrial facilities


case
studies


Development of

key findings &

recommendations


8

Initiative

Developer

Main Driver

What does it do?

Global Water Tool (GWT)

World Business Council for
Sustainable Development (WBCSD)



CEO
-
led global organization

Managing business risk

Maps corporate water use against scarcity data



Water Footprint (WFN)

Water Footprint Network



Network of corporations, NGOs,
academics and governments

Water use accounting

Measures total volume of freshwater
consumed and assesses sustainability



Global Reporting Initiative
(GRI)

Global Reporting Initiative (GRI)



International
multi
-
stakeholder
network of experts

Reporting and disclosure

Produces a comprehensive sustainability
reporting framework

CDP Water Disclosure
Project

Carbon Disclosure Project Water
Disclosure



Non
-
profit organization holding
corporate climate change database
and acting on behalf of
investors


Reporting and disclosure

Provides critical water
-
related data from
corporations to inform global market place on
investment risk and commercial opportunity

European Water
Stewardship (EWS)
Standard

European Water Partnership (EWP)



Regional initiative of Alliance for
Water Stewardship (AWS)
which is
developing
an international
standards and certification program

Standards and certification

Defines sustainable water management
principles and creates basis for objective
reporting, certification and communication



Summary of Five Initiatives

9

22 Metrics Evaluated

Indicator

Metrics

Withdrawal Amounts







total volume abstracted by source

total volume consumed by source

water transfers (inter
-
basin and ground/surface)

peak/average/seasonal use by source

Withdrawal Source Characterization



sources under stress

amount of renewable water

Withdrawal Impact & Available Supply





relative to total available supply

effect on ecosystem services

effect on human services

Discharge Amounts

total volume discharged to receiving body

Discharge Quality



regulated pollutant load

non
-
regulated pollutant load

Discharge Impact



eutrophication potential

effect on downstream human uses

effect on ecosystem (generally)

Recycling/Reuse

internal recycling and reuse

external recycling and reuse

Equitable & Transparent Governance





water consumption per unit product

water resource management strategy (use & disclosure)

permits and other consents (withdrawals)

permits and other consents (discharges)

Benefits

economic and social benefits

Key Findings from Case Studies


Potential for significant value


Tells a favorable story about Great Lakes water use


Enables comparison of water use to available supply


Provides framework for reporting on regulatory
environment, best practices and economic benefits


Effective mechanism for identifying gaps in knowledge


No one tool provides all the answers


Increased understanding of differences between water
footprinting

and other tools


No
existing tools support optimal allocation of water
resources by accounting for environmental, economic &
social considerations



11

Key
Findings from Case Studies


Devil in the details


Data precision, site boundaries and metric definitions can
significantly affect results


Measurements sufficient for regulatory reporting or internal
management are often insufficient for metrics calculations


Water budgets can be challenging due to spatial boundary &
data
availability


Context is critical to defining value


Metrics alone have limited value


A large water footprint may be sustainable where water
supply is sufficient to support the use


Important to consider return flows and context


Impacts must be assessed at the local level and
consider:


Magnitude and timing of use


Location of withdrawal and discharge points


Volume and quality of
discharge

12

Key
Findings from Case Studies


Some metrics are redundant, insufficient or missing


Many metrics designed to address water scarcity concerns


Less useful for water abundant region


Too much water is often a concern


But metrics not generally designed to address stormwater issues


Grey water footprint found to have limited value


Metrics for recycling/reuse lack
methods


Tools only partially address water resource needs in GL
Basin


Primary focus is on water quantity


Invasive species, habitat loss, legacy contaminants not addressed


No guidance for assessing ecosystem impacts


Focused on information gathering and discussion frameworks


Structure for describing water stewardship practices but no
guidelines for what is “good” or “bad”
practice




13

Suggestions


Potential
u
sers of tools


tool metrics help to define the new water stewardship
landscape, important business
-
related shortcomings
remain


Select a tool that is well
-
matched to the users’
need


Apply water stewardship tools thoughtfully while
considering shortcomings or
gaps


Tool Developers


be
explicit about the objectives, appropriate use, and value
associated with a particular
tool; note valid alternatives


provide
detailed
definitions &
methodologies for calculating
metrics


consider convergence of similar water stewardship tools


integrate
measures of environmental stewardship with social
and economic stewardship in a meaningful and comparative
way

14

Council of Great Lakes Industries

http://www.cgli.org/waterfootprint/waterfootprint.html



Wendy Larson

Associate Vice President, LimnoTech

www.limno.com

734
-
332
-
1200

wlarson@limno.com


For more information…

15

Extra slides

16

Water Use Accounting Tools:

Water Footprinting


Principal tools


Simple accounting of withdrawal volumes/flows


ISO 14046 Water Footprint


Water Footprint Network

17

Business Risk Assessment Tools


Global Water Tool


Tools released during project duration:


World Resources Institute (WRI) Aqueduct


WWF
-
DEG
Water Risk
Filter Tool


GEMI Local Water Tool (LWT)


WFN
water scarcity maps





18

Reporting and Disclosure Tools


Carbon Disclosure Project: Water Disclosure


Global Reporting Initiative (GRI)


Released during project duration:


Ceres Aqua Gauge



19

Certification and Standards



Product and industry certification


e.g. Bonsucro, Better Cotton, Forest Stewardship
Council (FSC)


Alliance for Water Stewardship


First draft released during project duration


European Water Stewardship Standard used as
surrogate (regional initiative)


20

Key Findings


Potential for significant value


No one tool provides all the answers


Devil in the details


Context is critical to defining value


Some metrics are redundant, insufficient or
missing


Tools only partially address water resource
needs in GL Basin



21

Water Accounting Tools

22

ISO 14046

Water Footprint


In development
-

standard expected 2013/14


Intended to fill gap in ISO’s environmental
management suite of existing standards on
life cycle assessment (LCA)


Will go beyond inventory and be required to
be reported at the impact level


Will use weighting factors, which will be a
function of regional and/or local conditions.

23

Water Footprint Network


Virtual Water


Water “embedded” in a product


Water Footprint


Total actual and virtual water to produce a
product, summed over the various steps of the
production chain


Measured in terms of water volumes
consumed

and/or
polluted
.


Includes
where

&
when

the water was used

24

Colors of a Water Footprint


Green water footprint


Volume of rain & soil water
consumed



Blue water footprint


Volume of surface or groundwater
consumed


Grey water footprint


Volume of freshwater

required to assimilate

the pollutant load

25

Product Water Footprints

Require 2500 liters of water to produce

26

Arrows show trade flows >10

Gm
3
/yr

Regional virtual water balances

(only agricultural trade)

[Hoekstra & Chapagain, 2008]

27

Business Risk Accounting Tools


28


World Business Council for Sustainable Development
(WBCSD)


Tool to estimate business risk from water scarcity


Locate corporate facilities in

water
-
scarce areas


Employees in countries lacking

access to water or sanitation


Suppliers in water
-
scarce areas


Excel workbook and mapping

tool

1
3
1
2
2
1
0
0.5
1
1.5
2
2.5
3
3.5
No Data
Extreme
Scarcity
Scarcity
Stress
Sufficient
Abundant
Sites Distribution (Watershed)
Annual Renewable Water Supply per Person
(Source: WRI, Projections for 2025)
Global Water Tool

29

WRI: Aqueduct

Water Risk Framework


Objective:


Help companies understand strategic
implications of water risk


Challenges:


Water risks are physical, environmental,
economic, social & regulatory


Water risks vary by location

30

Aqueduct

Water Risk Framework

31

WWF
-
DEG

Water Risk Filter Tool


Helps investors understand
and analyze their exposure to
water
-
related business risks


Uses large set of weighted

risk indicators based on
publicly available datasets


Both basin and company
-
related risks provided in
multiple categories

32

WWF
-
DEG

Water Risk Filter

33

GEMI Local Water Tool (LWT)


Interactive downloadable tool just released


Helps companies understand current and
emerging water impacts and risks as they
relate to operations, needs and circumstances


Includes potential response actions


34

[Hoekstra & Mekonnen, 2011]

Blue water footprint

Blue water availability

Blue water scarcity

Water Footprint Network

35

Ceres Aqua Gauge


Framework for assessing
corporate water risk & mgmt.


Detailed definitions of leading
practice


Excel
-
based tool


Investors scorecard for a
company’s water management
practices in 28 categories



36

Reporting and Disclosure


37

Reporting and Disclosure

Water
Management and
Governance

Risk Indicators

Risk Assessment

Impacts to
Business

Opportunities

Managing Trade
-
offs Between
Water and Carbon

Withdrawals and
Recycling

Discharges

Water Intensity

EN 8
-

Total water withdrawal by source

EN 9
-

Water sources significantly affected by withdrawal of water

EN 10
-

Percentage and total volume of water recycled and reused

EN 21
-

Total water discharge by quality and destination

EN 25
-

Identity, size, protected status, and biodiversity value of
water bodies and related habitats significantly affected by the
organization’s discharge of water and runoff


Focus on investment community


Disclosure of risks


Opportunities for business


‘Common language’ for use in
sustainability reporting


Water related metrics

38

Certification and Standards


39

Certification and Standards



40

Alliance for Water Stewardship


First draft out for comments (June 15)


Voluntary certification program


NGO
-
driven, extensive stakeholder
input


Criteria and indicators for 4 principles:


Water governance


Water balance


W
ater quality


I
mportant water areas


41

Proposed Structure: AWS Standard

1.

Make a leadership commitment

2. Measure the site’s water use

3. Measure the use of water in the defined area of influence

4. Measure the current status of water in the defined area of influence

5. Measure the impacts and risks of the site’s water use in the defined
area of influence

6. Measure and manage the site’s indirect water use

7. Develop plans for rare incidents

8. Develop and internally disseminate a water robust stewardship plan or
policy

9. Remain in legal compliance and respect water rights.

10. Improve your water impacts at the site and beyond within the defined
area of influence

11. Develop and maintain the necessary capacity to undertake water
stewardship

12. Disclose your water stewardship plans, actions and results


42

Conclusions


43

Key Findings


Potential for significant value


Tells a favorable story about Great Lakes water use


Enables comparison of water use to available supply


Provides framework for reporting on regulatory
environment, best practices and economic benefits


Effective mechanism for identifying gaps in knowledge


No one tool provides all the answers


Increased understanding of differences between water
footprinting

and other tools


No
existing tools support optimal allocation of water
resources by accounting for environmental, economic &
social considerations



44

Key Findings


Devil in the details


Data precision, site boundaries and metric definitions can
significantly affect results


Measurements sufficient for regulatory reporting or internal
management are often insufficient for metrics calculations


Water budgets can be challenging due to spatial boundary &
data
availability


Context is critical to defining value


Metrics alone have limited value


A large water footprint may be sustainable where water
supply is sufficient to support the use


Important to consider return flows and context


Impacts must be assessed at the local level and
consider:


Magnitude and timing of use


Location of withdrawal and discharge points


Volume and quality of
discharge

45

Key Findings


Some metrics are redundant, insufficient or missing


Many metrics designed to address water scarcity concerns


Less useful for water abundant region


Too much water is often a concern


But metrics not generally designed to address stormwater issues


Grey water footprint found to have limited value


Metrics for recycling/reuse lack
methods


Tools only partially address water resource needs in GL
Basin


Primary focus is on water quantity


Invasive species, habitat loss, legacy contaminants not addressed


No guidance for assessing ecosystem impacts


Focused on information gathering and discussion frameworks


Structure for describing water stewardship practices but no
guidelines for what is “good” or “bad”
practice




46

Potential for Significant Value


Tells a favorable story about Great Lakes water use


Enables comparison of water use to available supply


Provides framework for reporting on regulatory
environment, best practices and economic benefits


Effective mechanism for identifying gaps in
knowledge


Structure for external communication


47

No One Tools Provides all the Answers


Increased understanding of differences between
water
footprinting

and other tools


Demonstrated importance of understanding
purpose and objectives of developers


Highlighted that no one tool addresses all needs
or interests


No existing tools support optimal allocation of
water resources by accounting for environmental,
economic & social considerations

48

Devil in the Details


Data precision, site boundaries and metric
definitions can significantly affect results


Measurements sufficient for regulatory
reporting or internal management are often
insufficient for metrics calculations


Water budgets can be challenging due to
spatial boundary & data availability


Definitions are important, some varied
considerably

49

Context is Critical to Defining Value


Metrics alone have limited value


A large water footprint may be sustainable where
water supply is sufficient to support the use


Important to consider return flows and context


Impacts must be assessed at the local level
and consider:


Magnitude and timing of use


Location of withdrawal and discharge points


Volume and quality of discharge

50

Some Metrics are Redundant,
Insufficient or Missing


Many metrics designed to address water
scarcity concerns


Less useful for water abundant region


Too much water is often a concern


But metrics not generally designed to address
stormwater issues


Grey water footprint found to have limited
value


Metrics for recycling/reuse lack methods

51

Tools Partially Address Water
Resource Needs in GL Basin


Primary focus is on water quantity


Invasive species, habitat loss, legacy contaminants
not addressed


No guidance for assessing ecosystem impacts


Focused on information gathering and discussion
frameworks


Structure for describing water stewardship
practices but no guidelines for what is “good”
or “bad” practice

52