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2016 – Water risks that could impact companies’ direct operations

Row numberAccount NumberCompany NameIncorporated CountryCDP ProgramReporting YearAccessIndustry Activity GroupGiCS SectorCountryRiver basinRisk driverPotential impactDescription of impactTimeframeLikelihoodMagnitude of potential financial impactResponse strategyCosts of response strategyDetails of strategy and costs
8518054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaColorado River (Pacific Ocean)Physical-Increased water stressWater supply disruptionCaesars’ owned resorts/casinos in the arid Southwest receive their water from Lake Mead, a reservoir on the Colorado river. Since 2000, the Colorado River has been in a drought and local purveyors have enacted new restrictions and costing. Restrictions are a way to prepare for a future of water stress and increased cost are used to pay for new infrastructure. Withdrawal limitations on the Colorado River could have impacts on availability of water if alternate sources of water supply are not developed.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with public policy makers; Infrastructure investment; Increased capital expenditure~$10,000,000-$15,000,000 would be the cost to significantly reduce water use at 5 resort/casino locations in the Colorado river basin considered at risk.If Southern Nevada Water Authority (SNWA) and Las Vegas Valley Water ration water because of increased water stress, there will be a large increase in cost and a new set of voluntary or mandatory water stewardship goals. To exceed our reduction goal of 25% by 2025 we will need to outlay new capital and work closely with SNWA on their plans.If water rationing encroaches on our customer’s experience, this would pose a substantive risk to revenue. Therefore, we would need to consider a vast capital project to develop massive graywater systems, new wells, xeriscaping, and other new technologies to continue to provide our current services. The cost of strategy is an estimate and was derived based on past facility and operations improvement projects and engineering experience.
8528054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaColorado River (Pacific Ocean)Physical-Increased water stressHigher operating costsCaesars’ owned golf courses in the arid Southwest receive their water from the Colorado river. Since the year 2000, the Colorado river has been in a drought with increasing water stress. Public pressure or policy will increase costs and then limit water available for recreational and ornamental uses. Because water is a necessity for golf course operation, increasing water stress will directly affect operational costs and then operation itself.>6 yearsProbableMedium-highEngagement with public policy makers; Infrastructure investment; Increased capital expenditure~$150,000/yr. savings or a 50% discount could be expected for using recycled water for irrigating the golf course. There will be additional cost for maintenance of irrigation equipment and a cost to engage policy makers to set up the public infrastructure needed.One of the locations rated at high risk is a golf course in Southern Nevada. With changing attitudes toward recycled water use there has been and will be increased public support of the infrastructure needed to change our golf course and others across the basin to recycled water. To connect a golf course to a reclaimed water system, could cost local municipalities upwards of $2 million. This would be the lynchpin in order for Caesars to use recycled water.The cost of strategy is an estimate and was derived based on past recycled water projects.
8538054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaColorado River (Pacific Ocean)Regulatory-Higher water pricesHigher operating costsCaesars’ owned golf courses in the arid Southwest receive their water from the Colorado river. Since the year 2000, the Colorado river has been in a drought with increasing water stress. Public pressure or policy will increase costs and then limit water available for recreational and ornamental uses. Because water is a necessity for golf course operation, increasing water stress will directly affect operational costs and then operation itself.>6 yearsProbableMedium-highEngagement with public policy makers; Infrastructure investment; Increased capital expenditure~$150,000/yr. savings or a 50% discount could be expected for using recycled water for irrigating the golf course. There will be additional cost for maintenance of irrigation equipment and a cost to engage policy makers to set up the public infrastructure needed.One of the locations rated at high risk is a golf course in Southern Nevada. With changing attitudes toward recycled water use there has been and will be increased public support of the infrastructure needed to change our golf course and others across the basin to recycled water. To connect a golf course to a reclaimed water system, could cost local municipalities upwards of $2 million. This would be the lynchpin in order for Caesars to use recycled water.The cost of strategy is an estimate and was derived based on past recycled water projects.
8548338Hitachi, Ltd.JapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyThailandChao PhrayaPhysical-Climate change>6 yearsUnlikelyHighInfrastructure investment; Infrastructure maintenance????????????????????????67?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????2?????????????????????????????????????????????
85510666Lexmark International, Inc.USAWater2016PublicTechnology Hardware & EquipmentInformation TechnologyMexicoBravoPhysical-FloodingPlant/production disruption leading to reduced outputWater is used in production at facilityUnknownUnlikelyMedium-highGreater due diligence; Promote best practice and awareness; Supplier diversificationNo additional costLexmark has diversified to add additional suppliers, including corresponding contract manufacturing locations in Europe.
8568054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaMississippi RiverPhysical-FloodingProperty damageThe property at risk is in the upper Mississippi River basin. Like some of the levees in New Orleans, a retaining wall along an elevated river prevents water from swamping this property.If an upstream dike, dam or lock on that system gave way during an extremely severe storm, 7 feet of water would inundate most of the area.Historically Caesars has been impacted negatively by flooding in both coastal and riverfront areas resulting in lost revenue, remediation costs, and various impacts to the workforce which can influence property performance.>6 yearsHighly probableHighDevelop flood emergency plans; Engagement with public policy makers; Increased capital expenditure~$10,000,000 is the cost expected from flooding which includes damage, preventative measures, and revenue loss.Flooding isn’t something which can be avoided but steps can be taken to mitigate by management planning. Currently we have measures in place on a property specific basis to have supplies on hand to prevent infiltration of water or to have pumping equipment available to remove water which does enter the property. If historic water levels begin to rise and flooding occurrence increases It will be imperative to work with local policy makers to continue to enhance the flood protection in place and develop new infrastructure as backup. Additionally we will work with local jurisdictions to develop the latest flood emergency plans.The cost of strategy is an estimate and was derived based on past facility and operations improvement projects and engineering experience.
8578054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaMississippi RiverPhysical-Declining water qualityHigher operating costsThe Mississippi River basin generally has high return flow ratios and generally extremely low upstream protected land. Both these conditions lead to poor water quality. Water quality could degrade to the point that will affect our operational equipment from washing machines to cooling towers.>6 yearsProbableMedium-highInfrastructure investment; Infrastructure maintenance; Increased capital expenditure~$1,000,000-$10,000,000 (cost for all sites at risk) would be the cost to install monitoring equipment followed by advanced filtration or more robust operational equipment.Caesars has installed monitoring equipment at various sites throughout our portfolio. We will continue to expand our monitoring to determine if there is a risk to our operational equipment. If monitoring shows continued risk Caesars will invest in advanced filtration equipment or more robust operational equipment.
8588054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaOther: Kirkwood Cohansey AquiferPhysical-Declining water qualityHigher operating costsCostal New Jersey generally has high return flow ratios and generally extremely low upstream protected land. Both these conditions lead to poor water quality. Water quality could degrade to the point that will affect our operational equipment from washing machines to cooling towers.>6 yearsProbableMedium-highInfrastructure investment; Infrastructure maintenance; Increased capital expenditure~$1,000,000-$10,000,000 (cost for all sites at risk) would be the cost to install monitoring equipment followed by advanced filtration or more robust operational equipment.Caesars has installed monitoring equipment at various sites throughout our portfolio. We will continue to expand our monitoring to determine if there is a risk to our operational equipment. If monitoring shows continued risk Caesars will invest in advanced filtration equipment or more robust operational equipment.
8598104Harmony Gold Mining Co LtdSouth AfricaWater2016PublicMaterialsSouth AfricaVaal (WMA)Physical-DroughtPlant/production disruption leading to reduced outputDroughts have one of the highest water related impacts on the profitability of Harmony’s business as water is critical to its mining operations. A significant amount of water is used in the development and growth of Harmony’s assets, 14.6 million m3 in FY15.In Harmony’s South African operations, water is not drawn directly from surface sources, except for Kalgold. Harmony’s operations source water from bulk water service providers (Rand Water), surface water run-off, water that enters underground operations, recycled water and boreholes. 82% of Harmony’s water consumption is supplied by bulk water service providers. Harmony is restricted by legislation and is not able to abstract water from nearby rivers. Harmony’s Unisel mine relies on water from Sedibeng Municipality. Unisel is situated furthest away from the water service provider and thus experiences very low water pressure in times of water shortage. This resulted in issues with domestic water use at the mine in FY15.While operations were not disrupted by the 2015 drought, domestic water consumption was compromised in areas surrounding South African operations. Drought related disruptions at its Free State operations have been experienced each year from 2011-2014 and at Unisel in 2013. It is expected that Kalgold may become very water constrained within the next 2-3 years. At present Rand Water’s only source is the Vaal River catchment. Any drought in the area over the next 5 years may jeopardise Harmony’s production.1-3 yearsProbableMediumInfrastructure investment; Promote best practice and awarenessHarmony spent R 2million to develop and implement a holistic water management strategy. Harmony spent R 33m at Doornkop and about R7m at Kusasalethu million to implement the specific water-related projects in the reporting year.Managing this risk increased Harmony’s CAPEX expenditure by approximately R50 million.In FY2013 Harmony’ implemented an on-going holistic water management strategy at all mines to mitigate the risk of drought. The strategy aims to improve water efficiency, enhance water security, optimise recycling and build larger return-water dams.Harmony has adopted a group-wide campaign to re-use process water and reduce dependency on groundwater. Long-term targets were set to reduce the amount of water used for primary activities by 4.5%, and increase water recycling by 5% by FY18. In addition, Harmony’s operations completed comprehensive water balances and undertook water treatment initiatives to assess and reduce fresh water consumption.The following drought-risk mitigation initiatives were continued in FY15:• At Kalgold, a comprehensive geohydrological assessment informed a revision of the water balance. Technical changes were implemented at the plant & tailings storage facilities to maximise recovery of water for re-use. Similar work was completed at Doornkop.• The holding capacities of the water dams at Kusasalethu were upgraded through desilting & enhanced pumping capabilities;• Commissioning of a water treatment plant at Doornkop and Kusasalethu to encourage recycling & reduce dependency on potable sources;• Implementation of process changes to improve water efficiency;• Optimisation of water separation & recycling systems;• Construction of larger return water dams & installation of large covered tanks to reduce evaporation.The cost estimate was derived from actual costs incurred in FY2015 in order to manage this risk. These included invoices for capital expenditure.
8608104Harmony Gold Mining Co LtdSouth AfricaWater2016PublicMaterialsPapua New GuineaOther: WatutPhysical-FloodingHigher operating costsHigh precipitation rates and extreme precipitation events pose a risk to Harmony’s operations. These events could cause flooding and create water management issues which may result in; dangerous working conditions, production hindrances and increased operating costs.In Papua New Guinea (PNG), precipitation extremes on the steep terrain are a contributing factor to the increased risk of slope failures and landslides. During FY2015 access roads to Harmony’s mines were closed several times due to landslides. Extreme rain resulted in a loss of infrastructure at the Hidden Valley operations as well as stability issues at tailings dams. Furthermore, the Chief Inspector of Mines’ office in PNG imposed restrictions on mining operations due to the risk of possible slope failures, and this affected mining flexibility. Excessive rainfall can also result in high levels of surface water runoff and erosion. High rainfall coupled with low evaporation rates would create a positive water balance at Harmony’s PNG operations. A positive water balance will require a high rate of discharge from the tailings storage facility and limits opportunities to recycle process water. Increased water discharge results in amplified operating costs due to greater water treatment requirements before discharge. Modifications to the capacity of water and tailings storage will also be necessary.Current-up to 1 yearProbableMediumInfrastructure investment; Other: Controlling rainfall run-off to prevent erosion and sediment entering the river system. Other: Conservation of site-water used to limit the volumes of contaminated waste water discharged into the river system during high rainfall events.The costs associated with managing the risk to precipitation extremes include:• Slope stability radar monitoring system: R3.7 million.In addition, geotechnical assessments were part of the operational costs and were carried out to monitor precipitation extremes. Harmony takes out insurance on its PNG operations to ensure the risk of precipitation extremes is covered. The insurance costs around R38 million annually.Harmony is currently managing the risks associated with increased rainfall at its PNG operations by implementing the following water management techniques:• Controlling rainfall run-off to prevent erosion and sediment entering the river system; and• Site-water is conserved to limit the volumes of contaminated waste water discharged into the river system during high rainfall events.Extensive slope stabilisation is carried out at Harmony’s PNG operations along with a strategy of progressive rehabilitation. An onsite nursery at the Hidden Valley mine has is continually hardening thousands of seedlings for field planting. Land erosion is combatted by the field planting of seedlings and is carried out throughout PNG. Hidden Valley implemented a slope stability radar monitoring system during FY2015. This allowed for the successful management of the eastern wall failure and other smaller failures throughout the year. In addition, specific geotechnical risk assessments are undertaken for all work sites in PNG and the associated mitigation plans are updated annually.Hidden Valley’s topography coupled with the high levels of rainfall presents a risk to the operation of vehicles on site. Harmony has implemented specific measures to mitigate these risks which include:• Revising the specifications of logistics trucks used on the Hidden Valley mine access road by limiting this to 6×6 trucks only.• Ensuring qualified driving trainers are supplied by the contractor. • Declaring mandatory stops for all trucks prior to the hazardous inclines on the Hidden Valley mine access road to check trailers, radio communication, escort vehicles, etc.The cost estimate was derived from actual costs incurred in FY2015 in order to manage this risk. These included invoices for assessments and system set ups.
8618212Heineken NVNetherlandsWater2016PublicFood & Beverage ProcessingConsumer StaplesMexicoSan JuanReputational-Negative media coveragePlant/production disruption leading to reduced outputThe facility is in a water scarce or distressed river basins which means that there is a higher risk that water will not be sufficiently available in the future. Given the fact that in our operations on average we need about 3.7 hl water per hl beer, a shortage of water availability has a business impact due to production limits, or additional costs of alternative supply.4-6 yearsProbableLow-mediumEngagement with community; Engagement with other stakeholders in the river basin; Establish site-specific targets; River basin restorationLow-mediumIn September 2013, HEINEKEN Mexico joined a consortium with other companies, universities, civil society organisations and government institutions to establish the Monterrey Metropolitan Water Fund (FAMM).The Monterrey Metropolitan Water Fund will focus on the preservation of the watershed of the San Juan River, which supplies more than 4 million people in and around Monterrey. There are four key objectives: helping to mitigate flooding, improving water infiltration, raising awareness about water, and working alongside government to attract resources which favour the watershed. HEINEKEN’s involvement in the Fund takes two forms. Our local brewery Cuauhtémoc Moctezuma in Monterrey is a direct participant in FAMM as part of our water-balancing commitment. Additionally, the FEMSA Foundation (created by FEMSA whose brewing activities were acquired by HEINEKEN in 2010) is one of the founding organisations of the Latin America Water Funds Partnership together with the Nature Conservancy. Costs for HEINEKEN will be more than 1.3 million dollar in the coming 6 years.
8628212Heineken NVNetherlandsWater2016PublicFood & Beverage ProcessingConsumer StaplesMexicoSan JuanPhysical-Increased water stressPlant/production disruption leading to reduced outputThe facility is in a water scarce or distressed river basins which means that there is a higher risk that water will not be sufficiently available in the future. Given the fact that in our operations on average we need about 3.7 hl water per hl beer, a shortage of water availability has a business impact due to production limits, or additional costs of alternative supply.4-6 yearsProbableLow-mediumEngagement with community; Engagement with other stakeholders in the river basin; Establish site-specific targets; River basin restorationLow-mediumIn September 2013, HEINEKEN Mexico joined a consortium with other companies, universities, civil society organisations and government institutions to establish the Monterrey Metropolitan Water Fund (FAMM).The Monterrey Metropolitan Water Fund will focus on the preservation of the watershed of the San Juan River, which supplies more than 4 million people in and around Monterrey. There are four key objectives: helping to mitigate flooding, improving water infiltration, raising awareness about water, and working alongside government to attract resources which favour the watershed. HEINEKEN’s involvement in the Fund takes two forms. Our local brewery Cuauhtémoc Moctezuma in Monterrey is a direct participant in FAMM as part of our water-balancing commitment. Additionally, the FEMSA Foundation (created by FEMSA whose brewing activities were acquired by HEINEKEN in 2010) is one of the founding organisations of the Latin America Water Funds Partnership together with the Nature Conservancy. Costs for HEINEKEN will be more than 1.3 million dollar in the coming 6 years.
8638212Heineken NVNetherlandsWater2016PublicFood & Beverage ProcessingConsumer StaplesMexicoSan JuanPhysical-DroughtPlant/production disruption leading to reduced outputThe facility is in a water scarce or distressed river basins which means that there is a higher risk that water will not be sufficiently available in the future. Given the fact that in our operations on average we need about 3.7 hl water per hl beer, a shortage of water availability has a business impact due to production limits, or additional costs of alternative supply.4-6 yearsProbableLow-mediumEngagement with community; Engagement with other stakeholders in the river basin; Establish site-specific targets; River basin restorationLow-mediumIn September 2013, HEINEKEN Mexico joined a consortium with other companies, universities, civil society organisations and government institutions to establish the Monterrey Metropolitan Water Fund (FAMM).The Monterrey Metropolitan Water Fund will focus on the preservation of the watershed of the San Juan River, which supplies more than 4 million people in and around Monterrey. There are four key objectives: helping to mitigate flooding, improving water infiltration, raising awareness about water, and working alongside government to attract resources which favour the watershed. HEINEKEN’s involvement in the Fund takes two forms. Our local brewery Cuauhtémoc Moctezuma in Monterrey is a direct participant in FAMM as part of our water-balancing commitment. Additionally, the FEMSA Foundation (created by FEMSA whose brewing activities were acquired by HEINEKEN in 2010) is one of the founding organisations of the Latin America Water Funds Partnership together with the Nature Conservancy. Costs for HEINEKEN will be more than 1.3 million dollar in the coming 6 years.
8648332Hitachi Construction Machinery Co., Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsChinaOther: Nan Fei He(???)Regulatory-Mandatory water efficiency, conservation, recycling or process standardsHigher operating costsCurrent-up to 1 yearHighly probableLowInfrastructure investment; Infrastructure maintenance
8658332Hitachi Construction Machinery Co., Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsIndiaOther: Ponnaiyar riverRegulatory-Mandatory water efficiency, conservation, recycling or process standardsPlant/production disruption leading to reduced outputCurrent-up to 1 yearHighly probableLowInfrastructure investment; Infrastructure maintenance
8668332Hitachi Construction Machinery Co., Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsIndonesiaOther: Kaso riverRegulatory-Mandatory water efficiency, conservation, recycling or process standardsPlant/production disruption leading to reduced outputCurrent-up to 1 yearHighly probableLowInfrastructure investment; Infrastructure maintenance
8678338Hitachi, Ltd.JapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyChinaOther: Bei JiangPhysical-Climate changeCurrent-up to 1 yearHighly probableLowInfrastructure investment; Infrastructure maintenance???????????????????????????????????????????????????????????????????????????????????????????????????1??????????????????????????????????????????????????????????????????????2015??????2?2???????????????????????????????????
8688528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaOlifants(WMA)Physical-FloodingWater supply disruptionPalesa Mine is located in close proximity to the Moses River. In the event of increased heavy rainfall and flooding (which are likely to increase with climate change), there is an increased risk of contaminated water overflowing from the pollution control dams and negatively impacting the local environment and the Moses River. This has not yet occurred, but is a possibility.1-3 yearsProbableMediumOther: Incorporating flood risk management into revised Integrated Water and Waste Management Plan (IWWMP). In addition, mine infrastructure is already built to withstand heavy rainfall events.No costs are anticipated specific to managing this risk since these are incorporated into standard business costs associated with developing and submitting the updated IWWMP and the infrastructure already exists for the mine to withstand heavy rainfall events.Palesa Mine is in the process of updating its IWWMP as part of the new Palesa Extension Project. The revised IWWMP (subject to approval by the relevant authorities) includes the development of an additional pollution control dam to help mitigate the risks of water overflows during heavy rainfall events.Note that the mine infrastructure is already built to withstand heavy rainfall events. The stormwater channels are built to withstand a 1 in 100 year flood event and the storm water and pollution control dams are also built to withstand heavy rainfall events.
8698528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaOlifants(WMA)Physical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Tsogo Sun’s Ridge Casino Complex and Stay Easy Eastgate have identified a risk of disruption to operations due to water shortages owing to infrastructure decay and poor maintenance of municipal water infrastructure. Water is essential for the operations of hotels and casinos as it is used for food preparation, drinking, garden irrigation, pools and fountains and in bathrooms and kitchens. A lack of water could pose a risk in terms of operational disruptions and associated negative impacts on brand image.4-6 yearsProbableMediumInfrastructure investmentA cost of R300 000 which is not considered significant in the context of the business.In the event that water shortages start to impact the complex, Tsogo Sun plans on installing additional boreholes to help ensure continuity of supply. In addition to specific measures mentioned here, water efficiency projects have been implemented across a number of Tsogo Sun properties (e.g. timing of irrigation to only irrigate at cool times of the day and daily monitoring of water to manage usage). The cost has been determined by Tsogo Sun based on the projects that they have implemented.
8708528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaBerg-Olifants (WMA)Physical-Inadequate infrastructurePlant/production disruption leading to reduced outputBerg River Textiles (a Deneb company) has identified risks relating to disruption in water supplies due to inadequate infrastructure and poor maintenance of infrastructure by the municipality. They have also identified a risk associated with high/increasing water tariffs. Berg River Textiles, as a textiles manufacturer, relies on significant volumes of water for its production processes. Any disruption to operations as a result of water shortages could impact on their ability to meet orders and, in the worst case scenario, could result in stoppages in operation. Any increases in water tariffs could increase operating costs and could impact on product prices and company competitiveness.UnknownProbableMedium-highOther: Water management methodsThe costs relating to integrating considerations of water efficiencies into new CAPEX projects has not been quantified. However, it is likely to be minimal since it is integrated into the standard CAPEX approval processes.Berg River Textiles is actively managing its water usage in order to improve efficiencies wherever possible. Berg River Textiles aims to reduce water consumption through all new CAPEX projects, taking into consideration efficiency and liquor ratio of processes and water pollution prevention through the reduction of concentration of contaminants per volume discharged.
8718528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaBerg-Olifants (WMA)Physical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, The Stay Easy Century City and Mykonos Casino have identified risks relating to disruption to municipal water supplies as a result of infrastructure decay and poor maintenance. This poses a risk of water shortages that would disrupt operations at the hotel and casino, with the potential to negatively impact on brand image.1-3 yearsProbableLow-mediumInfrastructure investmentThe costs specific to these two facilities have not yet been quantified, but could be between R300 000 and R2 000 000 based on costs of similar projects at other Tsogo Sun Properties. These costs are not necessarily considered significant in the context of the business.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available. The costs have been estimated based on Tsogo Sun’s experience with other similar projects.
8728663SK HynixSouth KoreaWater2016PublicSemiconductors & Semiconductors EquipmentInformation TechnologySouth KoreaHan-Gang (Han River)Physical-Seasonal supply variability/Inter annual variabilityHigher operating costsAccording to climate change water scarcity stress is increasing. Since we have irregular seasonal precipitation, 50~60% of total precipitation is focused in summer. Our main water resource, Han River basin, is under this irregular seasonal precipitation.1-3 yearsProbableMediumSupplier diversificationNot impact our operating profitsAccording to AQUEDUCT WRI, our business site which has our main production facilities shows “low to medium risk” in “baseline water stress”. We have established a plan for water supply in a mid and long term to secure a stable water supply and signed MOU with K-water service for mutual cooperation to supply water in a smother way
8738528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaPongola-Umzimkulu (WMA)Physical-Increased water scarcityOther: Disruption to or closure of operationsFrame Knitting Manufacturers (a Deneb company) has identified a risk of operational disruptions due to declining water reserves and also declining water quality. Frame Knitting Manufacturers also identified a risk associated with increasing water restrictions. Frame Knitting Manufacturer’s operates a dye house. The dyeing process is highly dependent on a sufficient supply of good quality water. Any disruption to water supply or declining water quality could impact on their ability to meet orders and, in the worst case scenario, could result in stoppages in operation. Increased water restrictions could increase could impact on the cost to manufacture the product.>6 yearsProbableHighIncreased investment in new technologyThe costs associated with the implementation of the new technologies to reduce water usage were R13 000 000. This cost is considered a significant investment in the context of the operation.In order to reduce water usage during the dyeing process, a new technology has been installed that allows the dyeing to be done at a lower liquor ratio, whereby lower weights of dye liquor are used to dye a given weight of goods. This helps Frame Knitting Manufacturers to reduce their water usage per weight of materials dyed and in turn reduce their vulnerability to water shortages, declining quality and increasing water restrictions. The cost of R13 000 000 was provided by Frame Knitting Manufacturers based on the actual cost incurred.Frame Knitting Manufacturers has also implemented storage tanks to avoid the drainage of water to effluent and reduced the number of rinse cycles in the dyeing process to save water.Frame Knitting Manufacturers also understand the importance of managing this risk by increasing the level of due diligence. In order to do this, Frame Knitting Manufacturers has identified an opportunity to foster greater levels of awareness amongst employees on the impact of wastage of water.
8748528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaPongola-Umzimkulu (WMA)Physical-DroughtOther: Reduced production outputGold Reef Chemicals (a Deneb company) has identified a risk of water shortages from increased drought conditions. They have also identified risks associated with increasing water tariffs and declining water quality. Water shortages could result in reduced production which would impact on revenue. Rising water tariffs will increase operating costs and could impact on product prices and company competitiveness.Declining water quality could reduce finished product quality.UnknownProbableMedium-highOther: Water management methodsThe costs associated with managing this risk have been estimated at R400 000 which is made up of R250 000 for a project to re-use process flush water for general plant cleaning and R150 000 for the installation of DI plants and water filtration systems. These costs are not considered significant in the context of the whole operation.To manage this risk, Gold Reef Chemicals is emphasising the importance of good water management practices amongst employees in order to reduce water usage. In addition, Gold Reef Chemicals has costed R250 000 for the implementation of a project to re-use process flush water for general plant cleaning which will reduce water withdrawals and R150 000 for the installation of DI plants and water filtration systems which will improve water quality.Additionally as part of Gold Reef Chemicals’ management system, the company has established a target to reduce water usage by 5%. Key Performance Indicators have been allocated to various departments outlining environmental goals. These are monitored on a weekly basis on the shop floor and on a monthly basis during monthly management meetings.
8758528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaBreede-Gouritz (WMA)Other: Disruption of supplyOther: Disruption to or closure of operationsHexTex (a Deneb company) has identified risks related to scarcity of water/droughts, declining water quality and increasing water tariffs. They have also identified a risk relating to changes in discharge regulations.Water is critical for the operations of HexTex as it is used in the textile manufacturing process. Water shortages could result in reduced production and associated reduced loss. In the worst case, water scarcity could result in closure of the operation. Declining water quality will negatively impact on the dyeing processes and colour of dyed material. Higher water tariffs would increase operating costs and associated product price. This could impact on selling volumes and, ultimately, revenue. Changes in discharge regulations may impact on effluent pricing or may require the implementation of new processes. Increased effluent pricing and implementation of new processes would increase the cost of doing business.UnknownUnlikelyUnknownEngagement with suppliersThere is no cost associated with continuous engagement with the municipality. This is integrated into the day-to-day management of the business.HexTex manages water actively with targets to reduce water consumption in all new CAPEX projects, taking into consideration efficiency and liquor ratio of processes. All new CAPEX projects subjected to complete assessment on water usage and environmental impacts before a final decision is made on whether to proceed with the project. HexTex has also established targets to reduce the concentration of contaminants per volume discharged and prevent water pollution with safer products (chemicals) for use in processes. HexTex also continuously engages with the municipality about water availability.
8768528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaBreede-Gouritz (WMA)Physical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, The Garden Route Casino has identified risks relating to disruptions from infrastructure decay and poor maintenance by the municipality. These risks could result in disruptions to operations and negative brand impacts.UnknownProbableLow-mediumInfrastructure investmentThe costs associated with implementing boreholes at the property have not yet been quantified but could be between R300 000 and R2 000 000 based on costs of similar projects at other Tsogo Sun Properties. This is not considered a significant cost in the context of the entire operation.In the event of disruptions in supply from the municipality, the facility will invest in installing boreholes at the property to ensure continuity of supply. The costs of this have not yet been quantified. In addition to specific measures mentioned here, water efficiency projects have been implemented across a number of Tsogo Sun Properties. Garden Route Casino installed optical sensors for bathroom taps to improve the water efficiency. The cost has been estimated based on Tsogo Sun’s experience with other similar projects.
8778724IAMGOLD CorporationCanadaWater2016PublicMaterialsOther: All operations and activitiesReputational-Community oppositionLoss of license to operateCommunity opposition can lead to reputational damage and can lead to a loss of a social license to operate, restrict access to fresh water for mining activities, cause tensions, and ultimately lead to disruptions in production.Strengthen links with local communityContinue to engage with communities and other stakeholders regarding water concerns to continue to earn social license to operate.
8788528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaVaal (WMA)Physical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Blackrock and Goldfields Casino Complexes have identified risks relating to disruption in water supplies from the local municipality. In the case of Blackrock Casino, water supplies have been disrupted in the past due to infrastructure upgrades conducted by the municipality. A lack of water could pose a risk in terms of operational disruptions and associated negative impacts on brand image.Current-up to 1 yearHighly probableLow-mediumInfrastructure investmentThe costs of the installation of back-up water supplies including the boreholes at Blackrock casino were approximately R800 000. This is not considered a significant cost in the context of the whole organisation.Systems and infrastructure have been put in place to ensure a back-up supply of water is available in the event of disruptions at Blackrock Casino Complex. The municipality sends water trucks when requested and boreholes have been installed at the property. To increase water efficiency, Blackrock installed water flow restrictors on taps and showerheads. At Goldfields, water tanks have been installed and can be used during periods of water shortages. In addition to specific measures mentioned here, water efficiency projects have been implemented across a number of Tsogo properties.The costs associated with sinking boreholes for Blackrock have been provided.
8798528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaMzimvubu-Tsitsikamma(WMA)Physical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Garden Court East London Hotel and Queens Casino have identified risks relating to disruption to municipal water supplies as a result of burst water pipes, infrastructure decay and poor maintenance. This poses a risk of water shortages that would disrupt operations at the hotel and casino, with the potential to negatively impact on brand image.1-3 yearsProbableLow-mediumInfrastructure investmentThe costs specific to these two facilities have not yet been quantified, between R300 000 and R2 000 000 based on costs of similar projects at other Tsogo Sun Properties. This is not considered to be significant in the context of the whole company.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available. The cost of the response strategy has been estimated based on other similar projects implemented by Tsogo Sun.
8808528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaOther: Mvoti – Umzimkulu (WMA)Physical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Suncoast Casino, Cabana Beach and Umhlanga Sands report risks relating to disruption to municipal water supplies as a result of infrastructure decay and maintenance. Southern Sun Elangeni and Maharani reports a risk of regional and municipal restrictions due to water shortages/drought. Water is essential for the operations of hotels and casinos as it is used for food preparation, drinking, garden irrigation, pools and fountains and in bathrooms and kitchens. A lack of water could pose a risk in terms of operational disruptions and associated negative impacts on brand image.1-3 yearsProbableLow-mediumInfrastructure investmentThe costs specific to these facilities have not yet been quantified, but could be between R300 000 and R2 000 000 based on costs of similar projects at other Tsogo Sun Properties. This is not considered to be significant in the context of the whole company.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available.Suncoast Casino has implemented an initiative to reclaim the water from the air conditioner air handling units and cooling towers. They have also installed meters throughout the complex for more accurate and detailed control of water reticulation network.The cost of the response strategy has been estimated based on other similar projects implemented by Tsogo Sun.
8818528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaLimpopoPhysical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, three of Tsogo Sun’s complexes (Silverstar, Montecasino and Gold Reef) have identified risks relating to disruption in municipal water supplies due to burst water pipes, leaks and poor municipal and reservoir maintenance. In the case of Montecasino, Johannesburg Water conducts regular maintenance and repairs to infrastructure and stops supplies to the complex during these periods. Gold Reef has experienced disruptions due to a burst mains water supply pipe and ring feed water leaks. Without water, Tsogo’s hotels, casinos, and theme park complexes cannot operate since the restaurants, bathrooms, and other guest facilities depend on water. This poses a risk of disruptions to operations and negative brand impacts.UnknownProbableLow-mediumInfrastructure investmentThe costs incurred for the installation of the rainwater harvesting system and the development of on-site boreholes at Montecasino amounted to approximately R1.8 million. This is not considered to be significant in the context of the whole company.In order to manage risks relating to water shortages and degradation of municipal water infrastructure, Tsogo Sun is investing in improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure such that back-up supplies of water are available. At Montecasino, boreholes have been drilled on site and a number of water efficiency projects have been implemented (including the installation of a rainwater harvesting system) to reduce usage of municipal water. In Gold Reef, Tsogo Sun also uses water from an underground mine for the water rides which results in a reduction municipal water usage.
8828528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaOther: Usuthu-Mhlathuze (WMA)Physical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Garden Court Ulundi reports a risk relating to disruption to municipal water supplies regularly. Each event lasts for about 8 hours.Water is essential for the operations of hotels and casinos as it is used for food preparation, drinking, garden irrigation, pools and fountains and in bathrooms and kitchens. A lack of water could pose a risk in terms of operational disruptions and associated negative impacts on brand image.1-3 yearsProbableLow-mediumInfrastructure investmentThe costs specific to this facility have not yet been quantified, but could be between R300 000 and R2 000 000 based on costs of similar projects at other Tsogo Sun Properties. This is not considered to be significant in the context of the whole company.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available.The costs are based on other similar projects done by Tsogo Sun.
88317296Solvay S.A.BelgiumWater2016PublicChemicalsMaterialsUnited States of AmericaOther: Pease (Red River)Regulatory-Higher water pricesPlant/production disruption leading to reduced outputPotential impact and response strategy will be discussed with concerned business unit>6 yearsProbableLowEngagement with other stakeholders in the river basin; Promote best practice and awareness
8848528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSeychellesNot knownOther: Disruption of supplyBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Tsogo Sun’s Maia Luxury Resort has identified a risk of water supply disruptions due to maintenance. Paradise Sun has identified a risk of supply shortages due to seasonal droughts and a risk of flooding. It was flooded in 2004 during tsunami. Tsogo Sun’s hotels and resorts rely on water being readily available for guests, kitchens, bathrooms, and other guest facilities and are not able to operate without water supplies. Any temporary closures as a result of lack of water could have a negative impact on the brand’s image.UnknownProbableLow-mediumInfrastructure investmentThe costs specific to these two facilities have not yet been quantified.In order to manage risks relating to water shortages and degradation of municipal water infrastructure, Tsogo Sun is investing in improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure such that back-up supplies of water are available. At Paradise Sun, the water drainage system was found to be inadequate for the high rainfall and the gardens flooded regularly. French drains were installed in November 2015 which has partially resolved the problem. We also implemented projects such as: water flow restrictors on taps and showerheads, garden irrigation with water from treated sewage and grey water, optical sensors for taps and auto stop water flow on beach showers.
8858528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsTanzaniaOther: Wami-RuvuPhysical-Inadequate infrastructureBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Southern Sun Dar-es-Salaam has identified a risk of disruptions to municipal water supplies. Tsogo Sun’s hotels rely on water being readily available for guests, kitchens, bathrooms, and other guest facilities and are not able to operate without water supplies. Any temporary closures as a result of lack of water could have a negative impact on the brand’s image.Current-up to 1 yearProbableLow-mediumInfrastructure investmentNot yet quantified.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available.
8868528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsMozambiqueIncomatiOther: Disruption of supplyBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Southern Sun Maputo reports a risk of frequent disruptions to municipal water supplies as a result of flooding. Tsogo Sun’s hotels rely on water being readily available for guests, kitchens, bathrooms, and other guest facilities and are not able to operate without water supplies. Any temporary closures as a result of lack of water will have a negative impact on the brand’s image.Current-up to 1 yearProbableLow-mediumInfrastructure investmentNot yet quantified.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available. Southern Sun Maputo also implemented garden irrigation using water from treated sewage and grey water from the property to increase water resilience. Also, in various offshore hotels, Tsogo Sun implemented water flow restrictors on taps and showerheads.
8878528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsNigeriaOther: Ogun-OshunOther: Disruption of supplyBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Southern Sun Ikoyi reports a risk of insufficient water supply. The municipal water supply for Tsogo Sun in Nigeria is non-existent so Southern Sun Ikoyi accesses water through boreholes. In the reporting year, one borehole failed and two new boreholes have had to be sunk.Tsogo Sun’s hotels rely on water being readily available and are not able to operate without water supplies. Any temporary closures as a result of lack of water will have a negative impact on the brand’s image.Current-up to 1 yearProbableLow-mediumInfrastructure investmentNot yet quantified.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available.
8888528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsZambiaZambeziOther: Disruption of supplyBrand damageTsogo Sun has identified a risk associated with unreliable water supplies which could disrupt operations and reduce profitability. More specifically, Southern Sun Ridgeway reports a risk of insufficient water supply. The municipal water supply for Tsogo Sun in Zambia is intermittent so Southern Sun Ridgeway accesses water through a borehole. Tsogo Sun’s hotels rely on water being readily available and are not able to operate without water supplies. Any temporary closures as a result of lack of water will have a negative impact on the brand’s image.Current-up to 1 yearProbableLow-mediumInfrastructure investmentNot yet quantified.Tsogo Sun is actively managing its risks relating to water supply disruptions through improved measurement and monitoring of water usage, implementation of water efficiency projects, and investment in infrastructure (e.g. storage tanks and boreholes) to ensure back-up supplies of water are available.
8898724IAMGOLD CorporationCanadaWater2016PublicMaterialsOther: All operations and activitiesPhysical-Increased water scarcityReduction of water supply may lead to increases of treatment costs and may require additional water infrastructure.Engagement with community; Infrastructure investment; Strengthen links with local communityIAMGOLD has developed a Water Standard to encourage responsible water stewardship at all sites through efficient water management and water conservation efforts. We encourage the development of innovative technologies to optimize water use. We continue to engage with communities and other stakeholders regarding water concerns.
8908675Husky Energy Inc.CanadaWater2016PublicOil & GasEnergyCanadaOther: Atlantic OceanOther: Physical - ice and icebergsClosure of operationsThe potential consequences of a severe weather or iceberg-related event to Husky's offshore operations include possible production disruptions, spills, asset damage and human impacts. While this is mitigated through the methods described below, financial implications of a severe event could be greater than $10 million.Current-up to 1 yearUnlikelyHighOther: Annual monitoring and managementMediumHusky has an ice management program that includes ice surveillance aircraft. Regular surveillance flights commence in February and continue until the threat has abated. Husky employs support vessels to actively manage ice and icebergs. These vessels are equipped with tools including towing ropes and nets and water cannons. The Company maintains ad-hoc relationships with contractors, allowing the quick mobilization of additional resources. It spends an average of $13.5 million per year on the ice management program.
8918675Husky Energy Inc.CanadaWater2016PublicOil & GasEnergyCanadaOther: Saskatchewan: North Saskatchewan River BasinRegulatory-Mandatory water efficiency, conservation, recycling or process standardsHigher operating costsPotential for increased water recycling requirement in Saskatchewan.UnknownUnknownMedium-highEngagement with public policy makers; Infrastructure investmentMedium-highPreparing for possible changes to regulation by (1) engaging with regulators to anticipate planned changes; (2) evaluating water risk at the facility level for all of the heavy oil operations; (3) improved characterization of produced water and research of water recycling technology.
8928675Husky Energy Inc.CanadaWater2016PublicOil & GasEnergyUnited States of AmericaOther: Maumee River WatershedRegulatory-Regulation of discharge quality/volumes leading to higher compliance costsHigher operating costsIncreased regulatory requirements relating to discharge1-3 yearsProbableMedium-highInfrastructure investmentmedium-highEvaluated additional water treatment infrastructure to ensure this risk is addressed through treatment and/or reduction of effluent streams.
8938675Husky Energy Inc.CanadaWater2016PublicOil & GasEnergyCanadaOther: Athabasca River WatershedPhysical-Increased water scarcityHigher operating costsPotential for change by neighbouring operator to affect access to water at the Sunrise Energy Project.UnknownUnlikelyHighEngagement with other stakeholders in the river basin; Engagement with suppliersLowContinue to engage with industry peers on plans, collaborate for mutual benefit
8948698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaOther: All river basins where IBERDROLA is locatedPhysical-FloodingClosure of operationsThis is not a relevant risk for IBERDROLA nowadays, because of the location of our facilities. Future floods may affect the operation of power stations, including the hydro capacity available leading to different global operational costs and stop for maintenance. It may also put electricity substations at risk.1-3 yearsUnlikelyLow-mediumDevelop flood emergency plans; Infrastructure maintenance €21.2 millionDepending on the availability of water, climatic variation has the potential to impact our hydro operations, cooling requirements of thermal power stations, thermal efficiencies of our power plant, patterns of energy load growth and the robustness of our transmission and distribution infrastructure in response to more extreme weather variations. IBERDROLA has developed a strong awareness of the physical risks associated with water availability. The assessment of risk is an ongoing activity, which is developed at various levels of risk control within the company. The risks are informed by individual assessment, industry experience and assistance from various expert groups. As an example of response strategy, storms affected our operations in Maine area at the beginning of 2015. The restoration and support efforts by IBERDROLA USA subsidiaries is a clear example of best practice during emergency situations produced by climate disasters. In UK, ScottishPower Energy Networks’ engineers also responded to a number of severe storm force weather events over the course of the 2015 winter. The response was quick and effective in both cases. The cost to cope with this risk in 2015 corresponds to activities in environmental prevention and environmental impact remediation like prepare substation spill plans and effluent treatment.
8958698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesSpainOther: All river basins where IBERDROLA is locatedRegulatory-Poor enforcement of water regulationBrand damageNowadays, financial crisis has taken first importance in the political scenario; new policies on climate change and nuclear generation (after Fukushima) are uncertain. Changes in environmental regulations during 2013 made uncertain the future for electric utilities in Spain. Changes in regulations with less requirements may affect the IBERDROLA Group’s business as soon as other companies with lower financial, social and environmental commitment may gain competitive advantage reducing the Group's turnover. It can also lead to an increase in our insurance premiums.1-3 yearsProbableMediumEngagement with public policy makers€10.6 millionIn relation to the insurance cover, IBERDROLA has international insurance programmes to coverequity (insurance for material damages, machinery breakdowns, loss of profits, damages from natural disasters and risks arising from construction work) and third-party liabilities (general civilliability, liability for environmental risks, professional civil liability, etc.). The cost to cope with this risk in 2015 corresponds to these insurances.
8968698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesBrazilOther: All river basins where IBERDROLA is locatedReputational-Inadequate access to water, sanitation and hygieneBrand damageAccess to water resources and sanitation is essential for the development of any population and business. The risk of difficult access in the future long-term, can damage directly to the production on the overall mix of our Company, any risks associated with the production, possible investments and its image.4-6 yearsUnlikelyLow-medium€1.6 millionThe materiality analysis for IBERDROLA by KPMG in 2015 has reflected a low risk associated with the supply of water. The availability of water is critical to ensure a good quality of life of the population where our Company carries on its business, IBERDROLA has installed systems for capturing and storing rainwater for human consumption in the area around the Caetité windfarm in inland Bahia (Brazil).This initiative will supply water to over 3,300 homes that currently have no connection to the general water system, and no access to any type of storage resource. IBERDROLA and NEOENERGIA will work on this project with the Brazilian Ministry for Social Development and the Fight against Hunger (MDS) as part of the Water for All programme. IBERDROLA has also joined the challenge of achieving the objectives of Sustainable Development Goals (SDGs), including Goal 6: Clean water and sanitation.
8978724IAMGOLD CorporationCanadaWater2016PublicMaterialsOther: All operations and activitiesRegulatory-Higher water pricesHigher operating costsHigher water prices would lead to higher operational costs.Engagement with public policy makersMonitor water policies to ensure that reasonable water prices are secure and available.
89818156Sysmex CorporationJapanWater2016PublicHealthcare Providers & Services, and Healthcare TechnologyHealth CareBrazilNot knownPhysical-Declining water qualityPlant/production disruption leading to reduced output4-6 yearsUnlikelyLowOther: ?????????????????????????????????????????????????????????
8998698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesMexicoOther: All river basins where IBERDROLA is locatedOther: Poor Water QualityHigher operating costsIndependent separation networks are used for industrial and sanitary water. The latter is subjected to final treatment in biodigesters, whereas process water goes through hydrocarbon separators before its return to the natural medium. La Laguna plant collects sewage for its processes, and the water discharged by this plant has better quality than the collected water.Main plants affected: Monterrey, Altamira (all groups), La Laguna, and Tamazunchale.>6 yearsUnlikelyLow-mediumIncreased investment in new technology€0.06 millionThe principal water withdrawn within the Group’s activities takes place in the cooling systems, processes and standby services for the thermal generation plants. Most of the water is returned to the environment, partly as evaporated water and the rest included in discharges from the facilities. In all our plants, water is discharged under constant monitoring of various parameters (temperature, turbidity, conductivity, etc.) by the Company and the Administration, to make sure that the characteristics of the effluent are always below the established limits. At La Laguna and Monterrey combined cycle plants a system has been designed for reusing water from the pool. Costs to cope with this risk in 2015 have been generated by effluent treatment activities investments.
9008698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesSpainOther: All river basins where IBERDROLA is locatedPhysical-Declining water qualityHigher operating costsAccess to water resources is essential to the development of any population and business. Even if IBERDROLA's facilities are located in an excellent strategic position not being object of water risk in the short term, we are aware that pollution and poor water quality could lead to a possible damage to plants, reducing production, increasing the stops for maintenance or even close.4-6 yearsProbableLow-mediumIncreased investment in new technology€7.4 millionAll the thermal power-generation plants in Spain have treatment systems that treat residual water before discharging it into the natural receptor environment. Water from the process undergoes physicochemical treatment, which includes the separation of hydrocarbons. Wastewater is treated in compact treatment systems with biological aerobic processes. As regards the treatment of discharges, at the Velilla thermal plant in Spain, biological treatment for desulphurisation commenced in April 2012 at the Effluents Treatment Plant, to reduce nitrides and nitrates in the discharge. An exhaustive inspection was performed of the water used in the direct production process at the Cofrentes nuclear power plant. All of the effluents from the water-steam cycle, from the reactor coolants, and from the standby systems are processed in the liquid waste treatment system and are returned to the cycle for reuse. The cost to cope with this risk in 2015 corresponds to purchase costs derived from effluent treatment equipment.

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created Sep 18 2017

updated Oct 4 2018

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CDP's water program motivates companies to disclose and reduce their environmental impacts by using the power of investors and customers. The data CDP collects help influential decision makers to reduce risk, capitalize on opportunities and drive action towards a more sustainable world. This dataset comes from question W3.2c asking companies to list the inherent water risks that could generate a substantive change in their business, operations, revenue or expenditure, the potential impact to their direct operations and the strategies to mitigate them.

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