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Deloitte Consulting LLP

March 16, 2011

Water: business value


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884 million people

worldwide dont haveregular access to safedrinking water.

www.water.org
http://www.water.org/http://www.water.org/


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Water withdrawals arepredicted to increaseby 50 percent by 2025in developing countries,and 18 percent indeveloped countries.

www.unwater.org
http://www.unwater.org/http://www.unwater.org/


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47% of the population

will face watershortagesby 2030

www.oecd.org
http://www.oecd.org/http://www.oecd.org/


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Copyright 2011 Deloitte Development LLC. All rights reserved.4

Public opinion

70% of Americans say they payattention to what companies are doing

regarding the environment (Yankelovich)

80% believe that solving drinkingwater problems requires significant help

from business(Circle of Blue)

93%believe corporations should play a

role in preserving freshwater and

reducing water usage in the countries

where they operate (Ogilvy Omnibus, 5/2010)


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Competition for fresh water and water

shortages will be so acute that virtually every

industry in the world will require sweeping

systemic transformation over the nextdecade. (GlobeScan/Circle of Blue)

Multi-faceted engagement with water will be

required for companies and governments to

effectively manage businesses andcommunities. (Ibid.)

Corporate disclosure of waterrelated risks

is seriously inadequate and is typically

prepared for public relations purposes.(JP Morgan)

Companies do not go into enough detail

about critical water issues. (Ibid.)

Industry response


7/28Copyright 2011 Deloitte Development LLC. All rights reserved.6

Reputation and brand

License to operate Business continuity

Innovation

What is the value?


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What is brand and reputation?

Brand is owned by the company; Reputation

is owned by stakeholders

http://www.instituteforpr.org/wp-content/uploads/Schreiber_Henley_Presentation.pdf http://www.oceantomo.com/productsandservices/investments/intangible-market-value


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Why are they important?

While sustainability is a proven way to

sustain brand value, it should not be

used as an alternative to staying true to

a brands values or customers.

Interbrand 2010.

http://www.interbrand.com/Libraries/Articles/Interbrand_Sustainable_In

novation.sflb.ashx

Not surprisingly, sustainability is

driving brand value across all sectors

from automotive, to consumer

products, to financial services.

Interbrand 2008.



Measure your water footprint Determine physical,

regulatory and reputationalrisks with direct and indirectwater use

Align water with energy andclimate risk strategy

Align price with value

Incorporate water intogovernance

Increase engagement withexternal stakeholders (NGOs,communities, etc.) anddevelop reporting strategy

How to build value? A stewardship strategy


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Footprint and risk



Water accounting - footprinting

www.pacinst.org
http://www.pacinst.org/http://www.pacinst.org/


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Risk mapping

www.wbcsd.org and www.gemi.org

Aqueduct Water Risk Tool. GE, World Resources Instituteand Goldman Sachs
http://www.wbcsd.org/http://www.gemi.org/http://www.gemi.org/http://www.wbcsd.org/


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Partnerships



The CEO Water Mandate recognizes that thebusiness sector, through the production ofgoods and services, impacts waterresources both directly and throughsupply chains.

Endorsing CEOs acknowledge they have aresponsibility to make water-resourcesmanagement a priority

CEO water mandate

http://www.unglobalcompact.org/issues/Environment/CEO_Water_Mandate/
http://www.unglobalcompact.org/issues/Environment/CEO_Water_Mandate/http://www.unglobalcompact.org/issues/Environment/CEO_Water_Mandate/



NGOs

www.waterforpeople.org, www.circleofblue.org, www.water.org
http://www.waterforpeople.org/http://www.circleofblue.org/http://www.water.org/http://www.water.org/http://www.circleofblue.org/http://www.waterforpeople.org/


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Reporting andDisclosure


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Investors care

www.cdproject.net
http://www.cdproject.net/http://www.cdproject.net/


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To grow our business sustainably we need to reducethe total amount of water used across our value chain,

especially in regions where water availability is

already under pressure from climate change.

Unilever

The Carbon Disclosure Project (CDP)Water Disclosure was launched in 2010.

The CDP WD represents 137 investorswith assets of US$16 trillion.

Of the 302 companies targeted forsubmission to the CDP water disclosureproject about 50% completed responses

CDP water

www.cdproject.net

Climate Change and global warming could reduce

snow pack and runoff volumes needed to support

Hydro electric generation. This, in turn, is likely to

raise the cost of energy production. Those costs could

have a direct impact on the financial bottom line for

the company.

Air Products and Chemicals

Typically water is a get into business and/or stay in

business requirement. The mining industry isdependent on water, and water is a finite resource.

With water scarcity scenarios a looming threat, the

identified opportunities will enable Anglo Platinum to

continue with businessusual and enable long term

expansion plans.

Anglo Platinum
http://www.cdproject.net/http://www.cdproject.net/


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Intel


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Embedded water

20 gal.1 beer

12 gal.computer chip

www.waterfootprint.org

1 assuming a typical chip size of approximately 1cm2 (chips vary in size depending on the specific product.)
http://www.waterfootprint.org/http://www.waterfootprint.org/


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INTEL water stewardship program elements

Partnering with communities

Reduce, reuse, recycle

Water footprinting

Reporting & Transparency


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INTEL stakeholder engagement - communities

Arizona: gray waterreuse & groundwaterreinjection

Israel: water treatmentfor internal recycling andcommunity irrigation

China & New Mexico:ultrapure water (UPW)technology development.

Massachusetts:community waterconservation fund


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INTEL Water use and goals

Invested $100 million in

water conservation since1998.

Saved 36 billion gallonsof water enough for

335,000 U.S. homes forone year.

Use ~8B gallons ofwater a year.

Reduce water use perchip below 2007 levels by2012

CSR report

Absolute and normalized By major facility

By scope direct, energy use,tier-1 suppliers

Local conservation initiatives andinvestments


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INTEL footprint approach
http://../My%20Documents/AAA_Tools%20and%20Reference%20Material/!!!Report%20Outs/To%20the%20public%20or%20otherwise%20outside%20Intel/DC%20Policy%20Forum%20June%202010/Waterfootprintgraphic_page%20from%20CSR%20report_Cropped.pdf


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Copyright 2011 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited
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