Water Crisis – Real Business Risks, Impact, and Opportunities

Perhaps the most important topic of the year.

4th Quarter 2015 MSR Topic

Conversation Starter: Emilio Tenuta, VP Corporate Sustainability at Ecolab
DATE: Friday, December 4th, 8am-noon
LOCATION: Milwaukee Metro – details made available to members
Current Confirmed Attendees: Bostik, CNH Industrial, GE, InPro, Johnson Controls Inc., Kohler, Michel’s, Sargento, Smithfield (formerly Patrick Cudahy), SPX Corporation Waukesha, and WMEP.

Basically, water, the once plentiful resource, is growing scarcer. That scarcity is a finance issue—one that has the potential to disrupt business and supply chain operations, lead to increased costs, and increase the price of commodity products.

– William Sarni, Deloitte

Some stats you might not be aware of:

  • Business regions currently impacted: Brazil, India, California, Florida, Cairo, Tokyo
  • CDP water report 2014
    • 81% of companies identify current risk in water
    • 61% have been impacted by water risk
    • 33% of companies state water scarcity impact 1-6% of profit
  • US Based Fortune 500
    • 94% face potential physical challenges
    • 69% face reputational risk
    • 80% affects location decisions
  • Economic IMPACT: current
    • California – 7th largest economy of the world – $3B hit last year
    • China – 46 Trillion RMB
    • Brazil 1-2% of GDP to date this year
  • Water Scarcity DRIVERS: By the way, it’s NOT climate change (though it could contribute)
    • Increased population
    • Increased middle class (doubling in 10 years around the world)
    • Increased demands by 2050: Food 60%; Energy 80%; Water 50%
    • (Look familiar? These are in alignment with similar findings from McKinsey on Resource Scarcity )
  • A global tour of drought – 7 recent water crises: http://j.mp/WaterCrisesTour

Tools: Check out

(more details on water crisis and resources download my notes from July’s GEMI conference in MKE)

 

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