Laura Ediger
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Transcript of Laura Ediger
Water Pollution in China: How Can Business Help?
Workshop at Nanjing UniversityJanuary 15, 2010
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Overview
1. How is BSR involved?2. Why companies care about water pollution3. Current approaches in China
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We work with business to create a just and sustainable world
We have worked in more than 70 countries from six offices in Asia, Europe, and North America
San FranciscoBeijingGuangzhouHong KongNew YorkParis
Languages & Dialects Spoken:
CantoneseDutchEnglishFrenchGermanGuaraniHindiItalian
JapaneseKannadaLaoMandarinPortugueseRussianShona
SpanishSwedishTagalogTaiwaneseThaiUrduVietnamese
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Member Network: over 250 companies from a broad range of industries
Sample corporate members include:
Alcatel-LucentAramex InternationalBank of New York MellonCisco SystemsCitigroupThe Coca-Cola CompanyDuke EnergyFord Motor CompanyGEIBM
Pfizer Royal Dutch ShellSAPSodexo GroupSony CorporationStarbucks Coffee CompanyTime WarnerWal-Mart StoresThe Walt Disney CompanyWells Fargo & Company
IKEAKraft FoodsJohn Wiley & SonsLevi Strauss & Co.Marks & SpencerMcDonald’s CorporationMcGraw-HillMicrosoftNikeNovartis
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The BSR Approach
MemberNetwork
Cross-sector Collaboration
ConsultingServices
Research & Innovation
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Why Companies Care aboutWater Pollution
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Brand is everything
“Gap, Levi Strauss factory pollution exposed in Africa”
Photo: http://news.sky.com/skynews/Home/World-News/Gap-And-Levi-Promise-Action-After-Manufacturing-Operations-Exposed-As-Causing-Pollution-In-Africa/Article/200908115351904
“Coca-Cola, Pepsi on Beijing’s worst polluter list”--AFP, 19 August 2009
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“China’s waterways pay price in textile boom”
--Wall Street Journal, August 26, 2007
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It costs money
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Water Management = Risk Management
• Competition with community needs• Brand damage by association with
suppliers’ impact on freshwater resources
Reputation
• Suspension of discharge or supply permit
• Price increases driven by scarcity
Regulation
• Disruption from lack of availability• Reallocation to other needs during
drought
Physical
ImpactRisk
Source: JP Morgan. 2008. Watching Water: A Guide to Evaluating Corporate Risks in a Thirsty World. Available at http://www.jpmorgan.com
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It’s the right thing to do
• Clean, safe water is vital for ecosystem and human health
• Increased transparency and sustainability reporting is shining a light on many environmental impacts that companies hadn’t paid attention to
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Water issues are not going away
• Competing demands from industry, residents, agriculture, recreation are only going to increase
• The right to use water is going to become more and valuable, and more and more political
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What are Companies Doing in China?
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Risk Assessments
• Water footprints• Supply chain assessment
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Supply Chains -- Compliance
• Expanded environmental compliance programs• External verification of supplier performance by
audit firms, NGOs• Shared standards for supplier water quality
guidelines• Monitoring – Web H2O• Detailed Code of Conduct requirements
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Dedicated to responsible practices around water use and wastewater discharge in supply chains using industry-developed guidelines.
1 Clear and consistent expectations for the environmental performance of mills and laundries regarding wastewater
2 Standards are reviewed by environmental and textile industry experts to ensure adequacy and technical feasibility
3 Standards designed to allow individual companies to implement a water effluent treatment program that fits their business objectives
Member CompaniesColdwater Creek, Inc.Gap Inc.H&M Hennes & Mauritz ABJC Penney CompanyLL BeanLevi Strauss & Co.NIKE, Inc.Nordstrom, Inc.Timberland
Sustainable Water Group
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Parameter 2006 2007 2008Sampling
Temperature
pH
Traditional Parameters:
Total Suspended Solids Biochemical Oxygen Demand Chemical Oxygen Demand Chemical Constituents:
Antimony
Arsenic
Cadmium
Chromium
Cobalt
Copper
Cyanide
Lead
Mercury
Nickel
Zinc
Color
Foam:
Domestic Sewage:
BSR-AWQWG WATER QUALITY GUIDELINES & TESTING STANDARDS
WebH2O: Online Environmental Database Tool
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Supply Chains -- Support
• Intensive in-person help to improve wastewater management technology and processes
• Training for wastewater managers (CTI)• Occasional encouragement• Tie incentives (production orders) to
performance on water issues
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Development of education and training programs in water and wastewater management.
• Providing water management training for factory managers.
• Include topics such as: regulatory environment, risks and opportunities, financial expectations, and problem-solving approaches.
Water Resource Management Training
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Community Engagement
• Coca-Cola:– partnership with WWF to protect Yangtze River basin– rainwater harvesting in 12 villages in NW China– partnership with UNDP, MWR, MOFCOM, to improve
water access and sanitation• Pepsi:
– grants on Safe Water and efficiency– partnership with All China Women’s Federation on
safe drinking water• Lots of interest (primarily from beverage
companies), but not much experience
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Main challenges to supply chain work
• Regulatory environment• Limited NGO / civil society pressure• Highly technical issue• Long-term horizon often necessary for
investment – in most industries, neither customer nor supplier have this
• Many of worst polluters are not in MNC top tier supplier base
• Not a component of purchasing decisions