Scaling-upWASHactioninCompanies'SupplyChains:PromotingSustainableGrowthStockholmWorldWaterWeek2016Thursday1September,11:00– 12:30

Objectivesofthissession

§ Followuponlastyear’ssession‘AcceleratingCorporateActiononWASH’

§ Presentthefindingsofthecollaborativeresearchprojecton‘ScalingCorporateActiononWASHinSupplyChains’

§ Gatheradditionalinsightfromcorporates,academics,NGOsandgovernmenton:§ Challengesandbarrierstoaction§ Typesofguidanceandtoolsneededbycorporatestoaccelerate

actionintheirsupplychains

Agenda

11:05 FindingsfromthecollaborativeactionresearchprojectbyCEOWaterMandate,WaterAid andWBCSD

11:20 ChallengestoactionincorporatesupplychainsandpotentialsolutionsPanel discussion

11:45 Mappingsolutionsandidentifyingfurtherneedfor guidanceFacilitatedbreakoutdiscussion

12:10 FeedbackfrombreakoutdiscussionsanddiscussionsonwayforwardPanel discussion

12:25 Concludingremarks

TatianaFedotova(WBCSD)andMai-LanHa(CEOWaterMandate)

Findingsofthecollaborativeresearchproject:ScalingCorporateActiononWASHinSupplyChains

Background:

§ StockholmWorldWater2015– JointmeetingbytheMandate,WaterAid,andWBCSDfocusedonunderstandinghowtoAccelerateCorporateActiononWASH

§ DiscussionsledtotheidentificationoftheneedforresearchonhowtoaddressWASHincompanies’supplychains

Objectives:§ UnderstandcurrentobstaclestoimprovingWASHincompanies’supply

chains,particularlyinkeysectorssuchasforestryandagriculture§ Exploreanddevelopguidance,tools,andresourcesneededtohelp

companiesleverageimprovedWASHintheirsupplychains,§ Explorethepotentialfordevelopingand/orutilizingexistingcollaboration

platforms

Background & Objectives

Timeline

Phase1(April- July)Scopingand

BackgroundResearch

Phase1(July)

ShortBriefingPaperwithMajorFindings

andRecommendations

Phase1(August)StockholmWorldWaterWeek

PresentationofFindingsandDiscussion

Phase2(Q42016-Q12017)DevelopingGuidanceasNeeded

Phase 1: Scoping and Background research

KeyElements:1) Understandingcompanies’supplychains2) Approachestosupplychainsustainability3) ApproachescompaniesaretakingtoaddressWASH– success

andchallenges

Methodology:• Deskbasedresearch(codesofconduct,publiclyavailable

information)• Interviews

• 10completed(Levi’s,Olam,Diageo,UNICEF,SEDEX,H&M,Unilever,Nestle,Gap)

White Paper Outline

Section1:IntroductionSection2:SupplyChainsandWASHChallengesSection3:CompanyApproachestoAddressingWASHSection4:IssuesontheFrontierSection5:NextSteps

BusinessCaseforWASH

- Globaleconomiclossesof$260billioneveryyear,largelyduetolosttimeandproductivity(WHO,2012)

- BasicWASH=robusteconomy,benefittocostratioashighas7:1indevelopingcountries(OECD2011,2012)

- GeneralizedunderstandingatthemacrolevelthatgoodWASHleadstohealthierworkersandcommunities=increasedproductiveandreductionsinabsenteeism

HERproject:LeviStraussAbsenteeismfellby55%andturnoverhasdroppedfrom50%to12%.Onefactorycalculateda$4:$1ROI.

- SiteleveldataonWASHinterventionsandbusinessoutcomeinsufficient

Supply Chain and WASH Challenges: Highlights

- Needtoaddresswater-relatedissues,includingWASHincompanies’supplychains

- WASHisbutoneofmanysustainabilityissuesthatisbeingaddressed

Hardware Related WASH Issues – Examples Applicable Context Absence of potable water, toilets, or handwashing facilities Factories and farmsAbsence of adequate menstrual hygiene materials and services for their disposal

Factories and farms

Absence of hot water and unsanitary conditions in dormitories

Factories and farms

Inability to access potable water, sanitation, and hygiene services due to work schedules

Factories and Farms

Inability to access potable water, sanitation, and hygiene services due to incentive structure

Farms

Supply Chain and WASH Challenges: Highlights

- Behavioralchangecomponentsareintricatelylinkedtosocialnorms- AddressingWASHinsupplychainsmoredifficultgivendifferencesin

localwatergovernanceBehavioral change components of WASH - Examples Cultural Acceptability of Sanitation Services - Understanding what type of sanitation services are culturally acceptable and will

be used for a certain community Increasing Workers’ Understanding of the Importance of Proper Hygiene- Finding mechanisms to motivating them to wash their handsCultural Barriers on Discussions around Menstrual Hygiene- Difficulty raising menstrual hygiene matters with male managers- Managers don’t understand the need for additional time in the toilet or washroomAbsence of information on good practices on menstrual hygiene Understanding that good hygiene practice is critical to product quality (such as in production of food and beverages)

Company Approaches to WASH: Highlights

Across all tiers, though collaboration is one of the only ways to

reach suppliers with

very little visibility or leverage

(agricultural products, or otherwise).

Collaboration

Predominantly used for those

with direct buying

relationships or where there

is good visibility

Worker Well-Being &

Livelihoods

Raw Materials Those

suppliers with whom

corporates have little

direct interaction

Certification Systems

Suppliers with most direct

buying relationships and leverage

Some Tier 2 Suppliers

where there is visibility

Continuous Learning and

Capacity Building

Suppliers with direct buying relationships and leverage

Some Tier 2 Suppliers

Compliance: Audits and Remedy

Issues on the Frontier

1) Absenceofguidanceforagriculturebasedinterventions

2) ConnectionbetweenworkplaceandcommunitycenteredWASHprograms

3) AddressingWASHinareasofweakgovernance

Potential Actions to Improve WASH in Supply Chains

Areaofaction TypeofActionAudits • EstablishacommonminimumstandardforWASH,including

hardwareandbehavioralelements.• Developguidancefortransitionfromcompliancetocapacity-

buildingculture.

Certification • StandardizeWASHelementsincertificationschemes.(RoundtableonSustainablePalmOil,RainforestAlliance,ForestStewardship,etc.)

Industry-ledPlatforms • IntegrateWASHcomponentsintoindustryledefforts(suchasSAIPlatform,SustainableApparelCoalition,ElectronicIndustryCitizenshipCoalition)

Scaling/strengthening“bottomup”well-beingandlivelihoodprograms

• Replicateandscale“bottomup”approachesthatfocusonneedsofworkersatfarmorfactorylevel.

• CoordinatepartnershipsandcollectiveactionactivitiestoadvanceWASHinstrategicgeographies.

Clarifyingcompany/governmentrole

• Developingguidance/atoolkitthatdelineatesrolesthatcompaniescanplayinsupportinggovernmentactiononWASH.Guidancewouldbedevelopedinpartnershipwithgovernment.

TheWASH4WorkInitiative

Mobilize business action to address WASH Challenges in the workplace, in communities where companies operate, and across supply chains.

http://www.wateractionhub.org/wash4work

Challengestoactionincorporatesupplychainsandpotentialsolutions

Paneldiscussion

JeffreyEisenbraun NickHepworth LisaHook

Mappingsolutionsandidentifyingfurtherneedforguidance

Feedbackfrombreakoutdiscussionsanddiscussiononwayforward

ChrisBrown MichaelAlexander LisaHook

§ Whitepaperavailableonlineon:§ http://www.wateraid.org/policy-practice-and-advocacy/stockholm-world-water-week-2016§ FeedbackwelcomeuntilFriday16September

§ Contributionsfromtoday’ssessionwillbecirculatedtoallattendeesbyendofSeptember§ Makesuretoleaveyourbusinesscardorsigntheattendeesheettoreceiveacopy

§ Phase2– DevelopingtoolsandguidancetosupportcorporateactiononWASHwillstartinendof2016§ Whitepaperlikelytobesupplementedwithfieldresearchinthecomingmonths

§ AllofourworkwillalsofeedintothenewWASH4Work initiative– whichallthreeorganisations(WBCSD,WaterAid,CEOWaterMandate)areinvolvedin

Nextsteps

Thank you!

Questions/Comments?

Mai-LanHa,CEOWaterMandate– mlha@pacinst.org

TatianaFedotova,WBCSD– fedotova@wbcsd.org

SaraTraubel,WBCSD– traubel@wbcsd.org

HannahGreig,WaterAid – hannahgreig@wateraid.org

ChristianLannerberth,WaterAid – Christian.lannerberth@wateraid.se