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2016 – Water risks that could impact companies’ direct operations
| Row number | Account Number | Company Name | Incorporated Country | CDP Program | Reporting Year | Access | Industry Activity Group | GiCS Sector | Country | River basin | Risk driver | Potential impact | Description of impact | Timeframe | Likelihood | Magnitude of potential financial impact | Response strategy | Costs of response strategy | Details of strategy and costs |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2151 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | India | Ganges-Brahmaputra | Regulatory-Regulatory uncertainty | Higher operating costs | The Ganges river is heavily contaminated with heavy metals and biological pollutants from the unregulated industry, agricultural fertiliser runoff and poor sanitation. More widely ground water is over abstractedDepleting quality and availability could impact our ability to operate, as pretreatment of incoming water will become more intensive and complex, ultimately resulting in higher operating costs in the form of energy, maintenance and testing.Regulatory changes to address the increasing water stress could represent both opportunities and risks for the business. Greater regulation on water quality and abstraction could lead to better operating environment but may result in increased investment into initiatives such as Zero Liquid Discharge and ground water replenish schemes. Additional impacts to the business include: • Higher water prices • Regulatory uncertainty | 1-3 years | Probable | Medium | Engagement with community; Infrastructure investment | In 2015 we have invested over €670k on ecoefficiency measures across Indian factories in the Ganges basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included condensate & heat recovery and pre-treatment optimisation. | Infrastructure investment In our factories located across India, we continue to support water efficiency projects through the central capital programme. Site Directors and SHE teams engage closely with authorities (public and private). In 2015, across our 38 factories in India, 35 reported as Zero Liquid Discharge, recycling all water back into site operations and maintenance. Engagement with community: We recognise the shared risks and value associated with operating beyond our fenceline & support several local NGOs & partnerships in source protection and watershed management activities. Our work is based around three core principles: Governance of Water; Quantity of Water; and Benefits to Community. • Engagement with other stakeholders: Agriculture uses more than 80 per cent of country’s water resources. Community interventions in the area focus on supporting and capacitating farmers to adopt water efficient agriculture practices, judicious use of water, encouraging use of organic farm inputs and organic pesticides. • Product development & engagement with consumersOur strategy is to meet consumers’ needs for products which use less water and offer a high performance benefit at the same time. For example Lifebuoy has launched a self-foaming handwash in India. It uses 18% less water, saving around half a litre of water each day simply by switching from their regular handwash. Similarly Sunlight dishwash is encouraging consumers to switch from traditional materials, such as bars, pastes and ash, to using liquids. Consumers use one-third less water, equivalent to saving two buckets of water every time the dishes are cleaned. |
| 2152 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | India | Ganges-Brahmaputra | Regulatory-Higher water prices | Higher operating costs | The Ganges river is heavily contaminated with heavy metals and biological pollutants from the unregulated industry, agricultural fertiliser runoff and poor sanitation. More widely ground water is over abstractedDepleting quality and availability could impact our ability to operate, as pretreatment of incoming water will become more intensive and complex, ultimately resulting in higher operating costs in the form of energy, maintenance and testing.Regulatory changes to address the increasing water stress could represent both opportunities and risks for the business. Greater regulation on water quality and abstraction could lead to better operating environment but may result in increased investment into initiatives such as Zero Liquid Discharge and ground water replenish schemes. Additional impacts to the business include: • Higher water prices • Regulatory uncertainty | 1-3 years | Probable | Medium | Engagement with community; Infrastructure investment | In 2015 we have invested over €670k on ecoefficiency measures across Indian factories in the Ganges basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included condensate & heat recovery and pre-treatment optimisation. | Infrastructure investment In our factories located across India, we continue to support water efficiency projects through the central capital programme. Site Directors and SHE teams engage closely with authorities (public and private). In 2015, across our 38 factories in India, 35 reported as Zero Liquid Discharge, recycling all water back into site operations and maintenance. Engagement with community: We recognise the shared risks and value associated with operating beyond our fenceline & support several local NGOs & partnerships in source protection and watershed management activities. Our work is based around three core principles: Governance of Water; Quantity of Water; and Benefits to Community. • Engagement with other stakeholders: Agriculture uses more than 80 per cent of country’s water resources. Community interventions in the area focus on supporting and capacitating farmers to adopt water efficient agriculture practices, judicious use of water, encouraging use of organic farm inputs and organic pesticides. • Product development & engagement with consumersOur strategy is to meet consumers’ needs for products which use less water and offer a high performance benefit at the same time. For example Lifebuoy has launched a self-foaming handwash in India. It uses 18% less water, saving around half a litre of water each day simply by switching from their regular handwash. Similarly Sunlight dishwash is encouraging consumers to switch from traditional materials, such as bars, pastes and ash, to using liquids. Consumers use one-third less water, equivalent to saving two buckets of water every time the dishes are cleaned. |
| 2153 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | United States of America | Colorado River (Pacific Ocean) | Physical-Rationing of municipal water supply | Plant/production disruption leading to reduced output | Lake Mead is a manmade reservoir fed by the Colorado River; a combination of poor snowfall, over abstraction and a changing climate have resulted in reducing water levels over the last 7 years. Our operations are fed from municipal supply taken from Lake Mead and managed by Southern Nevada Water Authority. Given the water restrictions facing residents, agriculture and industries in California as the state responds to the 2014-15 drought. In the event that water levels in Lake Mead continue to drop, and a similar response from the water authorities imposed, it is very probable that our ice cream production at the site would be disrupted. | 4-6 years | Unknown | Medium | Engagement with other stakeholders in the river basin; Infrastructure investment; Infrastructure maintenance | During the reporting year, the site conducted a water assessment (at a cost equivalent of €25K) identified 27 water efficiency projects with an estimated capital cost of $600k. | • Engagement with suppliers Site teams have regular engagement with Southern Nevada Water Authority on short and medium term water access and infrastructure plans. • Infrastructure investment The site has been working closely with suppliers to identify and implement water and energy saving. In the water assessment that took place within the reporting year, 27 water efficiency projects were identified to mitigate risk. Projects include boiler optimisation, CIP improvements and water reuse. Several projects have already been implemented saving 25k m3. Last year, Henderson undertook an independent audit of environmental compliance and risk which included water quality and availability. The audit programme identifies, assesses and prioritizes risks to operations. Water risks associated with Lake Mead water supply have been included within the North America’s Ice Cream Category risk assessment and planning meetings. • New products, markets In 2015, Unilever ran a focused dry shampoos campaign in water scarce areas of North America including Nevada, and upstream state of Colorado. This saw uptick sales compared to our other shampoos that use water. In 2015 our Dove brand and Delta Faucet Company launched the water efficient Delta Hydrafall™ showerhead. Standard US showerheads use 2.5 gallons of water per minute. The innovative Delta H2Okinetic technology sculpts water into a unique wave pattern, producing larger droplets. This reduces the volume of water used by 0.5 gallons per minute, to two gallons of water per minute. |
| 2154 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | Indonesia | Other: Citarum | Physical-Climate change | Other: Constraint to growth, Disruption to sales, Plant/production disruption leading to reduced output | Rapid Industrialisation, urbanisation and the poor solid waste management is depleting the quality of rivers. 40% of Jakarta’s residents lack access to clean water. Large seasonal variability poses challenges around both water availability and flooding. To date, the factories have not been affected but with climate projections expected to accentuate the seasonal variability, impact to operations is probable. | 4-6 years | Probable | Medium-high | Alignment of public policy positions with water stewardship goals; Engagement with community; Engagement with customers; Infrastructure investment | In 2015 we have invested over €1.2m on ecoefficiency measures across factories in the Citarum basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included condensate & heat recovery, elimination of steam systems. | • Infrastructure investment The Cikarang site continue to drive performance on water efficiency, further investing into water recycling to eliminate liquid discharge and minimise risks associated with availability, flooding and incoming quality.Rainwater harvesting is installed at all Unilever Indonesia’s factories with significant volumes of water reused for process and maintenance activities. • Engagement with community During 2015, Unilever Indonesia ran an internal engagement campaign on water efficiency, raising awareness of declining water quality and urging staff to save water and ways to avoid pollution. Over the past 5 years, Unilever has engaged with NGOs such as WWF and the Green Initiative Foundation to plant trees upstream of the Citarum river and rehabilitate the mangrove forests. The projects aim to conserve the forests while at the same time raise the welfare of farmers. To help residents of Jakarta and neighbouring areas prepare for the rainy season, Unilever continued the Aksi Anti Kuman using social media site Wipol. This post flood clean up and medical campaign supports schools and residents to avoid diseases common with floods and recover quickly.• Alignment of public policy positions with water stewardship goals During 2015 Unilever worked with government agencies to establish 225 community waste banks, under the Green & Clean Program. The initiative which was started in 2010 now reaches 10 major cities in Indonesia (Jakarta, Bandung, Surabaya, Yogyakarta, Medan, Denpasar, Makassar, Balikpapan, Banjarmasin and Manado), with total of 976 waste banks assisted by Unilever. One of the objectives of the initiatives are to avoid waste contaminating water bodies. |
| 2155 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | Indonesia | Other: Citarum | Physical-Declining water quality | Other: Constraint to growth, Disruption to sales, Plant/production disruption leading to reduced output | Rapid Industrialisation, urbanisation and the poor solid waste management is depleting the quality of rivers. 40% of Jakarta’s residents lack access to clean water. Large seasonal variability poses challenges around both water availability and flooding. To date, the factories have not been affected but with climate projections expected to accentuate the seasonal variability, impact to operations is probable. | 4-6 years | Probable | Medium-high | Alignment of public policy positions with water stewardship goals; Engagement with community; Engagement with customers; Infrastructure investment | In 2015 we have invested over €1.2m on ecoefficiency measures across factories in the Citarum basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included condensate & heat recovery, elimination of steam systems. | • Infrastructure investment The Cikarang site continue to drive performance on water efficiency, further investing into water recycling to eliminate liquid discharge and minimise risks associated with availability, flooding and incoming quality.Rainwater harvesting is installed at all Unilever Indonesia’s factories with significant volumes of water reused for process and maintenance activities. • Engagement with community During 2015, Unilever Indonesia ran an internal engagement campaign on water efficiency, raising awareness of declining water quality and urging staff to save water and ways to avoid pollution. Over the past 5 years, Unilever has engaged with NGOs such as WWF and the Green Initiative Foundation to plant trees upstream of the Citarum river and rehabilitate the mangrove forests. The projects aim to conserve the forests while at the same time raise the welfare of farmers. To help residents of Jakarta and neighbouring areas prepare for the rainy season, Unilever continued the Aksi Anti Kuman using social media site Wipol. This post flood clean up and medical campaign supports schools and residents to avoid diseases common with floods and recover quickly.• Alignment of public policy positions with water stewardship goals During 2015 Unilever worked with government agencies to establish 225 community waste banks, under the Green & Clean Program. The initiative which was started in 2010 now reaches 10 major cities in Indonesia (Jakarta, Bandung, Surabaya, Yogyakarta, Medan, Denpasar, Makassar, Balikpapan, Banjarmasin and Manado), with total of 976 waste banks assisted by Unilever. One of the objectives of the initiatives are to avoid waste contaminating water bodies. |
| 2156 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | Indonesia | Other: Citarum | Physical-Flooding | Other: Constraint to growth, Disruption to sales, Plant/production disruption leading to reduced output | Rapid Industrialisation, urbanisation and the poor solid waste management is depleting the quality of rivers. 40% of Jakarta’s residents lack access to clean water. Large seasonal variability poses challenges around both water availability and flooding. To date, the factories have not been affected but with climate projections expected to accentuate the seasonal variability, impact to operations is probable. | 4-6 years | Probable | Medium-high | Alignment of public policy positions with water stewardship goals; Engagement with community; Engagement with customers; Infrastructure investment | In 2015 we have invested over €1.2m on ecoefficiency measures across factories in the Citarum basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included condensate & heat recovery, elimination of steam systems. | • Infrastructure investment The Cikarang site continue to drive performance on water efficiency, further investing into water recycling to eliminate liquid discharge and minimise risks associated with availability, flooding and incoming quality.Rainwater harvesting is installed at all Unilever Indonesia’s factories with significant volumes of water reused for process and maintenance activities. • Engagement with community During 2015, Unilever Indonesia ran an internal engagement campaign on water efficiency, raising awareness of declining water quality and urging staff to save water and ways to avoid pollution. Over the past 5 years, Unilever has engaged with NGOs such as WWF and the Green Initiative Foundation to plant trees upstream of the Citarum river and rehabilitate the mangrove forests. The projects aim to conserve the forests while at the same time raise the welfare of farmers. To help residents of Jakarta and neighbouring areas prepare for the rainy season, Unilever continued the Aksi Anti Kuman using social media site Wipol. This post flood clean up and medical campaign supports schools and residents to avoid diseases common with floods and recover quickly.• Alignment of public policy positions with water stewardship goals During 2015 Unilever worked with government agencies to establish 225 community waste banks, under the Green & Clean Program. The initiative which was started in 2010 now reaches 10 major cities in Indonesia (Jakarta, Bandung, Surabaya, Yogyakarta, Medan, Denpasar, Makassar, Balikpapan, Banjarmasin and Manado), with total of 976 waste banks assisted by Unilever. One of the objectives of the initiatives are to avoid waste contaminating water bodies. |
| 2157 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | Indonesia | Other: Citarum | Physical-Increased water stress | Other: Constraint to growth, Disruption to sales, Plant/production disruption leading to reduced output | Rapid Industrialisation, urbanisation and the poor solid waste management is depleting the quality of rivers. 40% of Jakarta’s residents lack access to clean water. Large seasonal variability poses challenges around both water availability and flooding. To date, the factories have not been affected but with climate projections expected to accentuate the seasonal variability, impact to operations is probable. | 4-6 years | Probable | Medium-high | Alignment of public policy positions with water stewardship goals; Engagement with community; Engagement with customers; Infrastructure investment | In 2015 we have invested over €1.2m on ecoefficiency measures across factories in the Citarum basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included condensate & heat recovery, elimination of steam systems. | • Infrastructure investment The Cikarang site continue to drive performance on water efficiency, further investing into water recycling to eliminate liquid discharge and minimise risks associated with availability, flooding and incoming quality.Rainwater harvesting is installed at all Unilever Indonesia’s factories with significant volumes of water reused for process and maintenance activities. • Engagement with community During 2015, Unilever Indonesia ran an internal engagement campaign on water efficiency, raising awareness of declining water quality and urging staff to save water and ways to avoid pollution. Over the past 5 years, Unilever has engaged with NGOs such as WWF and the Green Initiative Foundation to plant trees upstream of the Citarum river and rehabilitate the mangrove forests. The projects aim to conserve the forests while at the same time raise the welfare of farmers. To help residents of Jakarta and neighbouring areas prepare for the rainy season, Unilever continued the Aksi Anti Kuman using social media site Wipol. This post flood clean up and medical campaign supports schools and residents to avoid diseases common with floods and recover quickly.• Alignment of public policy positions with water stewardship goals During 2015 Unilever worked with government agencies to establish 225 community waste banks, under the Green & Clean Program. The initiative which was started in 2010 now reaches 10 major cities in Indonesia (Jakarta, Bandung, Surabaya, Yogyakarta, Medan, Denpasar, Makassar, Balikpapan, Banjarmasin and Manado), with total of 976 waste banks assisted by Unilever. One of the objectives of the initiatives are to avoid waste contaminating water bodies. |
| 2158 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | Mexico | Panuco | Physical-Increased water stress | Other: Constraint to growth, Higher operating costs | The Panuco river basin spans the southern part of the state of Tamaulipas, México and supplies water to Mexico city & surrounding areas. Water stress in the basin is expected to increase principally from changes in seasonality, water demand and depleting water quality. This is likely to result in either water shortages or restricted access impacting for the 4 sites operating in the region. | 1-3 years | Probable | Medium | In 2015 we have invested close to €970k on ecoefficiency measures across in the Panuco basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included elimination of steam systems, cooling tower replacements and water recirculation. | Investment into efficiency In 2015 we have invested close to €970k on ecoefficiency measures across in the Panuco basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included elimination of steam systems, cooling tower replacements and water recirculation.As part of the carbon positive ambition for our operations, Unilever Mexico sites was exploring ways to move away from the current water and carbon intensive electrical energy supplies. In 2016 we announced that 90% of electrical energy would come from wind. | |
| 2159 | 20309 | Volkswagen AG | Germany | Water | 2016 | Public | Automobiles & Components | Consumer Discretionary | Czech Republic | Elbe River | Regulatory-Higher water prices | Higher operating costs | Due to the development in the last years a further increase of the water price is probable. | 1-3 years | Probable | Low | Establish site-specific targets; Infrastructure investment | The equipment costs for the water reduction are allocated to the total costs of the projects and therefore could not be separately identified. | Due to the quite low financial impact there are no specific countermeasures defined. Nevertheless the production site also has the target to reduce the specific water demand per car produced by 25% from 2010 till 2018. This is going to minimize the impact of the increasing water prices due to the lower water consumption per car produced. |
| 2160 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | Mexico | Panuco | Regulatory-Higher water prices | Other: Constraint to growth, Higher operating costs | The Panuco river basin spans the southern part of the state of Tamaulipas, México and supplies water to Mexico city & surrounding areas. Water stress in the basin is expected to increase principally from changes in seasonality, water demand and depleting water quality. This is likely to result in either water shortages or restricted access impacting for the 4 sites operating in the region. | 1-3 years | Probable | Medium | In 2015 we have invested close to €970k on ecoefficiency measures across in the Panuco basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included elimination of steam systems, cooling tower replacements and water recirculation. | Investment into efficiency In 2015 we have invested close to €970k on ecoefficiency measures across in the Panuco basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included elimination of steam systems, cooling tower replacements and water recirculation.As part of the carbon positive ambition for our operations, Unilever Mexico sites was exploring ways to move away from the current water and carbon intensive electrical energy supplies. In 2016 we announced that 90% of electrical energy would come from wind. | |
| 2161 | 19829 | Unilever plc | United Kingdom | Water | 2016 | Public | Consumer Durables, Household and Personal Products | Consumer Staples | Mexico | Panuco | Regulatory-Increased difficulty in obtaining withdrawals/operations permit | Other: Constraint to growth, Higher operating costs | The Panuco river basin spans the southern part of the state of Tamaulipas, México and supplies water to Mexico city & surrounding areas. Water stress in the basin is expected to increase principally from changes in seasonality, water demand and depleting water quality. This is likely to result in either water shortages or restricted access impacting for the 4 sites operating in the region. | 1-3 years | Probable | Medium | In 2015 we have invested close to €970k on ecoefficiency measures across in the Panuco basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included elimination of steam systems, cooling tower replacements and water recirculation. | Investment into efficiency In 2015 we have invested close to €970k on ecoefficiency measures across in the Panuco basin from the central €30m sustainability capital budget. These projects drive water, energy and waste and minimise the impact on business operations. Projects funded included elimination of steam systems, cooling tower replacements and water recirculation.As part of the carbon positive ambition for our operations, Unilever Mexico sites was exploring ways to move away from the current water and carbon intensive electrical energy supplies. In 2016 we announced that 90% of electrical energy would come from wind. | |
| 2162 | 19845 | Union Pacific Corporation | USA | Water | 2016 | Public | Ground Transportation - Railroads Transportation | Industrials | United States of America | Not known | Physical-Climate change | Closure of operations | Extreme precipitation changes and droughts can negatively affect UP's operations and infrastructure and therefore increase operational costs. How the risk impacts UP: Change in precipitation extremes and droughts can create a harsher work environment for employees, increasing rail maintenance costs, and impacting service by decreasing the velocity of operations. For example, flooding and resulting washouts impacted several key routes and therefore impacted operations. | Unknown | Unknown | Unknown | Infrastructure investment | In 2015, UP's capital program totalled $4.3 billion. Approximately $1.9 billion was invested in replacement capital to harden infrastructure and improve the safety and resiliency of the network. | Union Pacific manages potential severe weather events through a combination of its experience in responding to weather events and long-range planning to maintain infrastructure, aggressive updating of equipment and a diverse portfolio of business. UP also manages these extreme weather events by employing the use of its available surge resources and adjusted transportation plans. |
| 2163 | 19845 | Union Pacific Corporation | USA | Water | 2016 | Public | Ground Transportation - Railroads Transportation | Industrials | United States of America | Not known | Physical-Drought | Closure of operations | Extreme precipitation changes and droughts can negatively affect UP's operations and infrastructure and therefore increase operational costs. How the risk impacts UP: Change in precipitation extremes and droughts can create a harsher work environment for employees, increasing rail maintenance costs, and impacting service by decreasing the velocity of operations. For example, flooding and resulting washouts impacted several key routes and therefore impacted operations. | Unknown | Unknown | Unknown | Infrastructure investment | In 2015, UP's capital program totalled $4.3 billion. Approximately $1.9 billion was invested in replacement capital to harden infrastructure and improve the safety and resiliency of the network. | Union Pacific manages potential severe weather events through a combination of its experience in responding to weather events and long-range planning to maintain infrastructure, aggressive updating of equipment and a diverse portfolio of business. UP also manages these extreme weather events by employing the use of its available surge resources and adjusted transportation plans. |
| 2164 | 19845 | Union Pacific Corporation | USA | Water | 2016 | Public | Ground Transportation - Railroads Transportation | Industrials | United States of America | Not known | Physical-Flooding | Closure of operations | Extreme precipitation changes and droughts can negatively affect UP's operations and infrastructure and therefore increase operational costs. How the risk impacts UP: Change in precipitation extremes and droughts can create a harsher work environment for employees, increasing rail maintenance costs, and impacting service by decreasing the velocity of operations. For example, flooding and resulting washouts impacted several key routes and therefore impacted operations. | Unknown | Unknown | Unknown | Infrastructure investment | In 2015, UP's capital program totalled $4.3 billion. Approximately $1.9 billion was invested in replacement capital to harden infrastructure and improve the safety and resiliency of the network. | Union Pacific manages potential severe weather events through a combination of its experience in responding to weather events and long-range planning to maintain infrastructure, aggressive updating of equipment and a diverse portfolio of business. UP also manages these extreme weather events by employing the use of its available surge resources and adjusted transportation plans. |
| 2165 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Physical-Climate change | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2166 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Physical-Rationing of municipal water supply | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2167 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Regulatory-Unclear and/or unstable regulations on water allocation and wastewater discharge | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2168 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Physical-Increased water scarcity | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2169 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Physical-Projected water scarcity | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2170 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Physical-Projected water stress | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2171 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Regulatory-Regulatory uncertainty | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2172 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Physical-Drought | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2173 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Regulatory-Higher water prices | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2174 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Regulatory-Mandatory water efficiency, conservation, recycling or process standards | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2175 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | China | Not known | Reputational-Negative media coverage | Plant/production disruption leading to reduced output | The risks drivers we've encountered in China are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | The cost of the response is dependent on the chosen mitigation strategy. Stockpiling of additional parts in anticipation of a water supply related manufacturing output disruption would have minimal costs, as would a temporary transfer of work to other sites in more water abundant areas. Re-engineering of plant processes could cost in excess of $1 million, depending on the extent of the project. Additional monitoring of emerging regulations and community engagement could cost $50,000 per year. | UTC's strategy is founded on our annual 5% water use reduction requirement for all UTC facilities. In addition, sites in water scarcity areas must implement up to 10 water management best practices. Depending on site complexity and scope of required engineering changes, this strategy could cost in excess of $1 million. Should these actions be inadequate to mitigate the risk, additional actions including transferring work to other locations and changes to supplier contract scopes could also be used. |
| 2176 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Regulatory-Regulatory uncertainty | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2177 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Physical-Climate change | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2178 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Physical-Projected water scarcity | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2179 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Physical-Increased water stress | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2180 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Regulatory-Mandatory water efficiency, conservation, recycling or process standards | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2181 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Physical-Drought | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2182 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Physical-Increased water scarcity | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2183 | 19859 | United Technologies Corporation | USA | Water | 2016 | Public | Aerospace & Defense | Industrials | Mexico | Not known | Regulatory-Higher water prices | Plant/production disruption leading to reduced output | The risks drivers we've encountered in Mexico are consistent across all of our locations, so we did not identify the risks across the river basins in which we are located. In addition to physical supply limitations, in some jurisdictions where UTC operates the regulatory environment associated with water risk is likely to change. We believe our experience in China 2010 - 2015 serves as a model a potential combination of water supply and regulatory uncertainty. Both have the potential to disrupt normal manufacturing operations at our plant, and the regulatory changes also present a potential impact to our compliance status and public reputation. | 1-3 years | Highly probable | Low | Engagement with community; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | ||
| 2184 | 20050 | Vale | Brazil | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Brazil | Other: Doce, Velhas, Paraopeba, Piracicaba, Piranga, Santo Antonio and Itacaiúnas, Itaqui, Bacanga. | Physical-Climate change | Property damage | Due to climate change, precipitation patterns changes present a risk to Vale’s operations. Heavier rainfall leading to floods and/or landslides may cause damage to equipment and logistic assets, reducing or even disrupting production. Logistic assets are especially vulnerable and railways can be affected by floods and landslides. Vale has already experienced a flood in 2009 in the Brazilian state of Pará which damaged equipment and rails and interrupted iron ore transportation from Carajás for seven days. Another risk related to climate change is the sea level rise, which may affect port operations, creating obstacles for the loading and unloading of Vale’s products, as well as raising security issues. Vale has already identified trends in its ports that if further exacerbated, may contribute to a negative impact for operations. Vale’s São Luís port (NE Brazil), for instance, already undergoes permanent daily dredging due to its natural daily tidal variation which is quite extreme and results in the deposition of large quantities of sediment; one of the most severe variations worldwide with a daily variation of 6 meters. A rise in sea level may have an adverse impact to the dredging. This same impact could be expected at the ports in the southeast region of Brazil. | Current-up to 1 year | Highly probable | Medium-high | Increased investment in new technology | Damages suffered by Vale’s logistics in the Northern region of Brazil can affect the entire operation (Carajás ore is transported by rail to the port). Regarding capital costs of repairing damaged ports and other related assets, the losses would be around USD 37 million per year (assuming 37% of iron ore sales come from Carajás and that impacts will result in a decrease of 0.5% in revenue). | Vale has invested in the identification of risks related to changes in precipitation patterns to the operations in regions where Vale operates. Vale has been continuously investing in a weather monitoring radar system and monitoring centres, which will allow us to take preventive measures. The monitoring system will rely on long-range radars and 25 automatic weather-monitoring stations, as well as on an 80-teraflops supercomputer. Since 2011, the University of São Paulo (USP) has been providing 24-hour weather forecasts to Vale. Also, one of Vale‘s Technology Institute (ITV) studies comprises a study of “regionalization”, i.e. numeric simulations of a regional climate model for the north (the eastern Amazon) and southeast of Brazil. |
| 2185 | 20050 | Vale | Brazil | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Brazil | Other: Underground water bodies | Regulatory-Limited or no river basin/catchment management | Higher operating costs | CONAMA resolution Número 396 establishes criteria for the classification of underground waters. | 4-6 years | Probable | Medium-high | Engagement with public policy makers | Costs related to this risk’s management actions are considered low-medium. | Vale has measuring equipment to monitor underground water quality in the regions where we operate. Measurement results can be used to support official initiatives deriving from CONAMA resolution Número. 396. |
| 2186 | 20050 | Vale | Brazil | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Brazil | Other: Underground water bodies | Physical-Declining water quality | Higher operating costs | CONAMA resolution Número 396 establishes criteria for the classification of underground waters. | 4-6 years | Probable | Medium-high | Engagement with public policy makers | Costs related to this risk’s management actions are considered low-medium. | Vale has measuring equipment to monitor underground water quality in the regions where we operate. Measurement results can be used to support official initiatives deriving from CONAMA resolution Número. 396. |
| 2187 | 20309 | Volkswagen AG | Germany | Water | 2016 | Public | Automobiles & Components | Consumer Discretionary | Germany | Danube | Physical-Seasonal supply variability/Inter annual variability | Higher operating costs | The operation permit of the deep water wells is going to phase out by the end of the year and could not be renewed. On this account external water suppliers have to be used in combination with the implementation of water recycling in the production. | Current-up to 1 year | Highly probable | Low-medium | Infrastructure investment; Infrastructure maintenance; Supplier diversification | Planning, development and construction of a new WWTP including an MBR around 6 Mio. € | In 2016 a new WWTPincluding a MBR is going into operation. The effluent will be used as recycling water and should therefore reduce the freshwater consumption by approximately 500.000 m³/a.We try to establish preventive actions to start minimizing the potential risks now. Site-specific targets will support these actions and ensure that we reach our goals. In addition the production site has the target to reduce the specific water demand per car produced by 25% from 2010 till 2018. |
| 2188 | 20050 | Vale | Brazil | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Brazil | Other: Itaqui and Bacanga. | Physical-Projected water scarcity | Plant/production disruption leading to reduced output | According to ITV’s regional climate model, between 2015 and 2039, a reduction of 15% in the yearly rainfall levels in NE Brazil is expected. This translates to a reduction in water availability and longer drought periods. Longer drought periods are predicted in the São Luis region (northeast Brazil) which will further reduce the water availability in reservoirs and wells, putting the shipping activities of ores at the port at risk because water is used in wetting the tracks and maintaining air quality, necessary for the operation. | >6 years | Probable | Medium-high | Increased investment in new technology | The risks posed by changes in precipitation extremes and droughts were considered an intermediate risk for Vale and therefore the financial implications were not calculated. | Vale has an operational risk area which conducts periodic risk analysis for all Vale businesses and operations, including those related to climate change. Also, Vale, through ITV, has developed a regional climate model for north and southeast Brazil to understand how climate change may impact its operations. The risk analysis considering climate change aspects are considered to be routine and its costs have been absorbed by the company. |
| 2189 | 20050 | Vale | Brazil | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | New Caledonia | Other: No river basin. | Physical-Increased water stress | Constraint to growth | The decrease of water availability and the region background and lack of database information could generate impacts at Vale’s operations in the long term. In addition, Vale’s mines in New Caledonia are subject to operation stoppages due to heavy rain, especially regarding portable equipment. | >6 years | Unknown | Medium | Water management incentives | Costs related to this risk’s management actions are considered low-medium. Potential financial implications are associated with extreme precipitation that could jeopardize operations. | Vale implements water management including, but not limited to: Water balance studies aiming at the development of actions of water reuse and recirculation, training to establish a culture of rational use of water resources. In New Caledonia, Vale has performed field inspections on drainage conditions and has purchased equipment better suited for these conditions (e.g. pit trucks instead of haul trucks). |
| 2190 | 20050 | Vale | Brazil | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | China | Other: No river basin | Physical-Increased water stress | Constraint to growth | Vale has identified high water stress in the Chinese operations. Being considered with an extremely high risk by the WRI Aqueduct, the water stress in the region is included as a risk that could generate substantive changes to the company for the long term. | >6 years | Unknown | Low | Water management incentives | Costs related to this risk’s management actions are considered low-medium. | Vale implements water management including, but not limited to: Water balance studies aiming at the development of actions of water reuse and recirculation. Training to establish a culture of rational use of water resources. Regarding Chinese operations, Vale reuses about 99% of the water. |
| 2191 | 20050 | Vale | Brazil | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Peru | Other: No river basin. | Physical-Increased water scarcity | Higher operating costs | The decrease of water availability in the region as well as the fact that Sechura desert has increased pollutant levels may trigger need to improve water quality to meet requirements as an input to production and consequently increased maintenance costs of water treatment. | >6 years | Highly probable | Medium | Increased investment in new technology | Costs related to this risk’s management actions are considered medium. | Vale has invested in new technologies in order to desalinise water to meet operational unit water requirements, as well as the implementation of water control mechanisms and process optimization to become more water resilient. |
| 2192 | 20205 | Vinci | France | Water | 2016 | Public | Construction & Engineering | Industrials | Not known | Reputational-Community opposition | Brand damage | VINCI needs to carefully manage water discharges resulting from its operations in order to prevent water pollution and avoid reputational damage. Since VINCI builds and operates public infrastructures, it is important that the company maintains a good corporate reputation with all its stakeholders. Otherwise, VINCI would risk losing projects, which would in turn reduce its market shares and revenues. | Current-up to 1 year | Probable | Low-medium | Alignment of public policy positions with water stewardship goals; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | Low-medium | Prevention of water pollution is included in VINCI’s environmental policy at the group level. VINCI’s subsidiaries have taken a number of initiatives to reduce the water pollution risk associated with their activities. Some subsidiaries have invested in water treatment equipment and water management tools, developed emergency arrangements to prevent and reduce water pollution, and made efforts to raise awareness on water issues through environmental training. VINCI has also been reporting water consumption of its activities since 2004. It is gradually increasing the accuracy of its reporting on water consumption, despite the diversity of its activities. | |
| 2193 | 20205 | Vinci | France | Water | 2016 | Public | Construction & Engineering | Industrials | Not known | Reputational-Community opposition | Brand damage | VINCI is seeking new growth opportunities outside the European Union, in regions that are increasingly exposed to water-related risks such as Africa, the Middle-East, Asia and Oceania. As it expands its operations into these regions, VINCI should carefully address water challenges in order to avoid being criticized and suffer damage to its business reputation. As a result of reputational damage, VINCI could lose several projects and market shares, and see its revenues decline significantly. | >6 years | Probable | Medium-high | Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Medium-High | Investments in water-saving technologies and infrastructures such as leak detection systems and taps & watering tools have been made by some of VINCI’s subsidiaries. Also, most VINCI companies have started recycling water and make efforts to raise awareness on water-related issues through environmental training. | |
| 2194 | 57963 | Birla Carbon | USA | Water | 2016 | Public | Chemicals | Materials | Hungary | Danube | Physical-Flooding | Plant/production disruption leading to reduced output | Other potential impacts may include closure of operations, employee health and well-being, disruption to sales, property damage, supply chain disruption, and transport disruption. | Unknown | Probable | Unknown | Develop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Supplier diversification | ||
| 2195 | 20205 | Vinci | France | Water | 2016 | Public | Construction & Engineering | Industrials | Not known | Regulatory-Poor enforcement of water regulation | Fines/ penalties | An important part of VINCI’s activities are subject to water laws and regulations. This is especially true for construction sites and transport operations. Non-compliance to water laws and regulations could lead to financial sanctions which would increase the overall cost of VINCI’s operations. VINCI could also face certain legal sanctions forcing it to interrupt some of its activities. | Current-up to 1 year | Highly probable | Medium-high | Engagement with public policy makers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Other: Comply with local legal requirements or company own internal standards, whichever is more stringent | Low-medium | VINCI companies all carefully monitor the evolution of water-related laws and regulations. Legal requirements are being progressively integrated into the management process of most subsidiaries. When necessary, VINCI companies invest in technologies and infrastructures to adapt to or comply with regulatory requirements. For this reason, in most cases, VINCI has been able to successfully mitigate the risks associated with regulatory non-compliance. | |
| 2196 | 20205 | Vinci | France | Water | 2016 | Public | Construction & Engineering | Industrials | Not known | Regulatory-Mandatory water efficiency, conservation, recycling or process standards | Constraint to growth | Given the intensifying global water crisis and the urgent need to protect natural resources and bodies (including water quality and habitats) worldwide, we expect water-related laws and regulations to be tightened in the future, which could potentially impact our business activities. Regulatory tightening may lead to financial and technical costs, and we may lose market shares if we are not able to comply with new requirements. | Current-up to 1 year | Probable | Medium-high | Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; River basin restoration; Other: Comply with local legal requirements or company own internal standards, whichever is more stringent | Low-medium | VINCI companies all carefully monitor the evolution of water-related laws and regulations, and are well prepared to adapt to potential changing/new requirements. To minimize adaptation costs, some subsidiaries try to anticipate changing/new regulations and make the necessary investments before they come into force. | |
| 2197 | 20205 | Vinci | France | Water | 2016 | Public | Construction & Engineering | Industrials | Not known | Physical-Climate change | Constraint to growth | An increasing amount of unpredictable/extreme environmental events and floods may happen in the future as a result of climate change and rising sea levels. We predict that our outdoor construction activities and energy systems projects will be the most severely impacted. Floods and climate hazards could lead to delays in operations and/or supply chain disruptions, pollution from products swept away from floodwaters and destruction of working sites; all constraining our future growth. | >6 years | Probable | High | Develop flood emergency plans; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Medium-high | VINCI companies that are the most likely to be affected by floods are already including flood risks into their environmental impact assessments and/or surveys. Some actions have been taken and investments have been made by some subsidiaries to mitigate flood risks. For instance, some VINCI companies have improved retention of pollutants on construction sites and designed emergency plans. In the United Kingdom, most VINCI companies have been monitoring flood risks and sharing knowledge about the issue. | |
| 2198 | 20205 | Vinci | France | Water | 2016 | Public | Construction & Engineering | Industrials | Not known | Physical-Increased water stress | Constraint to growth | The intensifying global water crisis means that several regions of the world will soon experience greater water stress. As a result, VINCI's water-intensive activities could face adaptation costs, delays in operations or supply chain disruptions. VINCI could also lose important market shares if it is not able to adapt adequately. Moreover, water scarcity, especially in developing regions, may lead to greater political and economic instability and in turn affect VINCI's operations. | >6 years | Probable | High | Engagement with suppliers; Infrastructure investment; Increased investment in new technology; Promote best practice and awareness | Medium-high | Investments in water-saving technologies and infrastructures such as leak detection systems and taps & watering tools have been made by some of VINCI’s subsidiaries (VINCI Construction Terrassement, Stade de France, VINCI Autoroutes). Moreover, most VINCI companies have started recycling water and make efforts to raise awareness on water-related issues through environmental training. | |
| 2199 | 20309 | Volkswagen AG | Germany | Water | 2016 | Public | Automobiles & Components | Consumer Discretionary | Slovakia | Danube | Regulatory-Increased difficulty in obtaining withdrawals/operations permit | Higher operating costs | Due to potential changes in the water legislation difficulties in getting the operating permits (wells for water withdrawals, wastewater discharge standards for quality and quantity, rainwater retention) could accrue in the future. This will lead to higher operation costs and investment in new technology. | >6 years | Probable | Low | Engagement with community; Engagement with public policy makers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance | The equipment costs for the water reduction are allocated to the total costs of the projects and therefore could not be separately identified. | We try to establish preventive actions to start minimizing the potential risks now. Site-specific targets will support these actions and ensure that we reach our goals. Increased investment in new technology and infrastructure as follows:• operating permit for fresh water wells will include advanced measurement and monitoring equipment• higher investment in leakage searching and elimination to increase the security of sufficient water supply and decrease the water losses• usage of reverse osmosis permeate as input for the cooling tower with the aim to reduce the fresh water demand• use of recycled water in water tests• wastewater reuse in the washout of the paint shop• process optimization of the body washer and passivation These actions should minimize the water demand of the production site further and secure the water supply. |
| 2200 | 20515 | Waste Management, Inc. | USA | Water | 2016 | Public | Trading Companies & Distributors and Commercial Services & Supplies | Industrials | United States of America | Other: Multiple River Basins | Physical-Drought | Other: Constraint to future growth | Uncertainties in water regulations may impact the company's landfill operations. | Unknown | Probable | Low | Other: Implement minimum performance standards | Low | Anticipate and mitigate regulatory uncertainties by implementing best management practices now rather than later, when regulations become applicable. Cost: Less than 1% of our global revenue of $13B. |
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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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