1. REPNOW ORT UNLOCKING THE PROFITSAL ONE IN WATER SAVINGS How big companies manage water risk and the business opportunities in doing soSecond edition, June 2010 Ethical CorporationA RY SU MM PO RTRE RY NTAMEPLI C OMCALL TO ORDER ON +44 (0) 207 375 7554

2. COMPLIMENTARY REPORT SUMMARY How this report will benefit you Uncover effective corporate water management and stewardship strategies with this second edition Ethical Corporation report.Through 75 pages of in-depth analysis, you will receive: Practical solutions to setting your companys water strategy Easy-to-adopt lessons from companies that have saved hundreds of thousands of Euros through their water initiatives Cost and savings comparison table featuring multinationals that are early-movers in water stewardship Brand new findings, 9 in-depth real corporate case studies, and critical analysis Expert advice on water, cost savings, critical business issues, calculating risks, long-term rewards and quick winsHow will this report benefit your sustainability strategy, and your bottom line? Benchmark your water initiatives and performance against leading food & beverage companies, extractive companies, and many more Learn to calculate your water risk factor Gain exclusive strategy from big companies on how they cut costs and build reputation through water stewardship Understand the 5 water issues every company must know how to address Design your companys water management by selecting best practices from Whitbread, M&S, Unilever, Shell, SAB Miller, Coca-Cola, Molson Coors, Intel, Rio Tinto, and more Any questions about our in-depth, practical research? Get in touch with Pamela Muckosy, Head of Research & Training, Ethical Corporation at +44 (0) 207 375 7554 or toll-free in Canada/US at 1-800-814-3459, pam.muckosy@ethicalcorp.com. Order at www.ethicalcorp.com/water 3. COMPLIMENTARY REPORT SUMMARY Some key findings Water has emerged as one of the much-discussed/hot topics among sustainability professionals. A May 2010 survey conducted for this report finds that 99% of sustainability respondents believe that water concerns will become more of a priority for businesses in the next 5-10 years.Do you think water-related concerns will become more of a priority for businesses in the next 5-10 years?I YesI No99%1% Source: Ethical Corporation survey for the Unlocking the Profit in Water Savings report, 20-25 May 2010 (n=96) Leading companies have already been managing responsible water programmes for up to 10 years, so there are now real lessons to share. In fact, 52% currently rank water stewardship as one of their top five responsible business issues. Is water stewardship currently one of your companys top five responsible business issues?I YesI No52% 48% Source: Ethical Corporation survey for the Unlocking the Profit in Water Savings report, 20-25 May 2010 (n=96) Call to order on +44 (0) 207 375 7554 or toll-free in Canada/U.S. at 1-800- 814-3459 4. COMPLIMENTARY REPORT SUMMARY How are companies taking action? Ethical Corporation analysts categorise water initiatives as follows: InternalCorporate initiativesRecycling others greywaterRecycling greywaterReusing water External Rainwater harvesting Upstream agriculture Technical solutionsWater reporting Micro-finance/ lending Leakage repair Educational programmes Educational programmes SupportSensor taps Providing informationLow-flush toilet cisterns ExternalDownstream consumersPromotional programmesExternalEducational programmes Community/partnership Product development Joining standard/initiative Certifying productsReporting on water usageWork with networks Local community work Companies with responsible water initiatives have realised massive cost savings.Corporate initiatives Its actually rather impressive.For example, Whitbread has implemented aerated showerheads, dual-flush toilets, sensors on urinals and water recycling which costs 93,000 and 80,000 annually, but saves them 350,000 annually.Here are just a few of the additional cost savings featured: a 40,503/year from Impress Metals surface water project; 316,225/year from David Lloyds leakage repair, bill auditing and trade effluent; and 1.6 million from Sainsburys use of sensors on urinals, leakage repair and reduced Upstream agriculture toilet cistern capacity. Downstream consumers Call to order on +44 (0) 207 375 7554 5. COMPLIMENTARY REPORT SUMMARY Contents Foreword ........................................................................................................................................................................................................3 Executive summary..........................................................................................................................................................................................4 Introduction ....................................................................................................................................................................................................6 Section 1: Water risks and opportunities ........................................................................................................................................................71.1 Calculating your water risk factor ......................................................................................................................................................7 1.1.1 Industry affects water needs ....................................................................................................................................................7 1.1.2 Water is local the issues of water insecurity ........................................................................................................................8 1.1.3 Water demand increases and so does the population ............................................................................................................8 1.1.4 Water management affects company reputation......................................................................................................................91.2 Understanding your opportunities through water stewardship ........................................................................................................101.3 Water is important the result of Ethical Corporations 2010 survey ..........................................................................................121.4 The big water issues: What every executive should know ..............................................................................................................14 1.4.1 Water insecurity ......................................................................................................................................................................14 1.4.2 Water costs and efficiency......................................................................................................................................................16 1.4.3 Community partnerships and access to clean water..............................................................................................................19 1.4.4 Water footprinting and its challenges ....................................................................................................................................21 1.4.5 Becoming water neutral ........................................................................................................................................................24 1.4.6 Labelling, reporting and auditing ..........................................................................................................................................26 Section 2: Strategies and solutions ..............................................................................................................................................................302.1 Company strategies ..........................................................................................................................................................................302.2 Tools and techniques........................................................................................................................................................................31 Section 3: Corporate case studies ................................................................................................................................................................343.1 Introduction to corporate case studies ............................................................................................................................................343.2 Shell working with water scarcity ................................................................................................................................................343.3 Rio Tinto developing a global water strategy ..............................................................................................................................373.4 Intel successful water efficiency measures, at the Ocotillo Campus, Arizona, U.S.......................................................................393.5 Whitbread water reductions by technical solutions .................................................................................................................... 423.6 Unilever working outside of the company....................................................................................................................................453.7 M&S educating suppliers and customers ....................................................................................................................................473.8 SABMiller leadership in water footprinting ..................................................................................................................................493.9 Molson Coors water stewardship..................................................................................................................................................533.10 Coca-Cola stakeholder engagement in communities ..................................................................................................................56 Summary of corporate initiatives, trends and recommended action ............................................................................................................60 Appendices ....................................................................................................................................................................................................61A: UN water map ....................................................................................................................................................................................61B: Methodology and company questionnaire ........................................................................................................................................62C: Corporate water resources ................................................................................................................................................................64D: Further information on corporate water savings ..............................................................................................................................68 References ....................................................................................................................................................................................................70Figure 1: Which of the following is the primary water concern for businesses?............................................................................................13 Figure 2: Do you think water-related concerns will become more of a priority for businesses in the next 5-10 years? ......................................13 Figure 3: Is water stewardship currently one of your companys top five responsible business issues?......................................................14 Figure 4: Corporate water savings ................................................................................................................................................................18 Figure 5: Blue-, green-, and grey water ........................................................................................................................................................23 Figure 6: The water footprint of common products ......................................................................................................................................24 Figure 7: Model possible company actions ................................................................................................................................................33 Figure 8: Model unilever example ..............................................................................................................................................................33 Figure 9: Rio Tintos water strategy ..............................................................................................................................................................38 Figure 10: Ocotillo AZ water conservation strategy ......................................................................................................................................40 Figure 11: Whitbread water strategy ..............................................................................................................................................................44 Figure 12: Unilever water gradient (estimate)................................................................................................................................................47 Figure 13: Areas of physical and economic water scarcity ............................................................................................................................61Order at www.ethicalcorp.com/water 6. Ethical Corporation report centre Recent publications cover topics such as anti-corruption, voluntary initiatives in CSR, emerging market issues, and managing carbon emissions. You can also visit Ethical Corporations website and download some free research papers: www.ethicalcorp.com/reports Anti-corruption, ethics and compliance in Russia Practical information to develop local compliance strategies and overcome corruption challenges. For more infor- mation, current prices or online ordering, visit: www.ethicalcorp.com/russia Anti-corruption, ethics and compliance in China and Counter corruption in your supply chain in China Learn more about the issues critical to your operational security, ethical management and success in China. For more information, current prices or online ordering, visit: www.ethicalcorp.com/china Best practices for designing effective ethics programmes Find out which ethics and compliance training is most effective and productive. For more information, current prices or online ordering, visit: www.ethicalcorp.com/ectraining The Carbon Reduction Commitment Energy Efficiency Scheme: How companies cut carbon, save money, and meet legal compliance A hands-on management briefing on real-life ways big UK companies cut carbon, and their costs. Order online or obtain more information at: www.ethicalcorp.com/crc Corporate greenhouse gas emissions reporting Learn how your competitors are calculating and verifying their GHG emissions and discover which metrics and verifi- cation standards will work for you. For more information, current prices or online ordering, visit: www.ethicalcorp.com/greenhousegas Guide to industry initiatives in CSR Get the inside track from some of the worlds key industry-based initiatives. For more information, current prices or online ordering, visit: www.ethicalcorp.com/initiatives Job-specific guides for embedding CSR throughout your company Winning methods for integrating sustainability into operational departments including communications, finance and facilities. For more information, current prices or online ordering, visit: www.ethicalcorp.com/csr Essential strategies for effective emissions trading and offsetting With practical information from the leading companies, this report is everything you need to develop your companys emissions trading and offsetting strategy. Including case studies from 15 companies across industry. For more infor- mation, current prices or online ordering, visit: www.ethicalcorp.com/emissionstrading Unlocking the profit in water savings: How big companies manage water risk and the business opportunities in doing so Learn how water risks factor into your operations, and what you should do to ethically manage water use. For more information, current prices or online ordering, visit: www.ethicalcorp.com/waterORDER NOW! Pre-order before 4th June and SAVE 200 Special pre-order price: 595 OnlineClick here to purchase CallTel: +44 (0) 20 7375 7554@Emailpam.muckosy@ethicalcorp.com Publishing date: June 2010 Secure PDF: 78 pages