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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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2501 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Coastal Plain of Los Angeles | Physical-Projected water stress | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2502 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Coastal Plain of Los Angeles | Physical-Climate change | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2503 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Coastal Plain of Los Angeles | Reputational-Changes in consumer behavior | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2504 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Coastal Plain of Los Angeles | Physical-Drought | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2505 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Coastal Plain of Los Angeles | Regulatory-Higher water prices | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2506 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Coastal Plain of Los Angeles | Regulatory-Regulatory uncertainty | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2507 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Kaweah Delta | Physical-Climate change | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2508 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Kaweah Delta | Physical-Projected water stress | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2509 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Kaweah Delta | Physical-Drought | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2510 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Kaweah Delta | Regulatory-Regulatory uncertainty | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2511 | 23197 | Hormel Foods | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Kaweah Delta | Reputational-Changes in consumer behavior | Higher operating costs | Potential impact to water availability or quality would require additional conservation methods, treatment methods, and other activity to assure that water quality and product standards are met. | Unknown | Unknown | Unknown | Engagement with customers; Engagement with public policy makers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness | Dependent on project need, but likely low impact to cost of goods sold. | Dependent on project need. |
| 2512 | 23206 | Wood Group | United Kingdom | Water | 2016 | Public | Oil & Gas | Energy | United Kingdom | Thames | Physical-Flooding | Property damage | A significant impact of climate changes concerns variations in precipitation. This may result in droughts in some areas, while others are in danger of being exposed to floods. Challenges come from increased average precipitation, as a result of increased atmospheric moisture due to emissions of GHGs. Average annual precipitation, measured globally; indicate small but certain increasing trends for inland areas. In 2014, the Thames Valley was struck by severe floods. The recorded water levels were at their highest for 60 years. This resulted in numerous communities being placed under evacuation notice. While Wood Group did not sustain any damage to infrastructure, the impact of the rainfall was loss of business. Work hours were invested into emergency planning meetings, and employees of the exposed buildings worked several days out with the regular office, impacting work efficiency. This seems like an isolated case at the moment, however, considering climate change, and change of potential patterns of rainfall, this type of events indicate a potential new climate being created, changing lifestyles and working habits globally. | 4-6 years | Probable | Medium | Develop flood emergency plans | It is hard to quantify the costs associated with our response strategy, but, as the FERP program is internally developed we can quantify it through time invested in this project. Annually and collectively, WG spend about 40 hours a year to update and maintain the FERP. If we take that the average UK salary for an operations manager in 2015 was c.a. £35,000, our cost here would be £2,500-£3,000 a year. | WG developed a Flood Emergency Response Plan (FERP), to understand the consequences of flood impact and the best use of resources to manage it. WG’s Local Business Continuity Team (LBCT) acted in line with the ISO 22301 (Business Continuity Management). As a response to early flood warnings, LBCT guided by the Business Continuity Director sent out an SMS to all staff informing them about the local situation which reached 94% of staff. As a response to the situation, Sandbags were in position and an IT employee was on standby overnight.Management costs are connected to Wood Group long term plans & strategy, reflected in our FERP. To develop FERP, Wood Group assessed all equipment & processes in the low-lying areas, considering relocation of equipment. |
| 2513 | 23206 | Wood Group | United Kingdom | Water | 2016 | Public | Oil & Gas | Energy | United Kingdom | Other: DEESIDE RIVER BASIN | Reputational-Negative media coverage | Brand damage | An organisation’s reputation makes a firm more attractive to investors, customers, suppliers, exchange partners & employees. As Wood Group predominantly serve the oil and gas industry, perception of the impact of the industry on the environment, including here water has a clear and direct correlation to our reputation. Thus, if any negative media attention would appear in relation to Wood Group, this would significantly and directly impact our brand value. Through our commitment to transparent and responsible business we wish to maintain our reputation within the oil and gas industry and beyond built on trust and honesty. | 1-3 years | Probable | High | Greater due diligence | A study published by the Paris School of Economics in 2011 found a correlation between negative media attention and financial performance of business. They found that on the days when negative media coverage is noted, trading volume falls byabout 18%. At average our trading volumes are at >1million shares a day. | Delivering a service that promotes best practice around HSE is key for minimizing risks to our reputation by reinforcing our shareholders & clients view of Wood Group as a responsible organization. A Company can lose 20-30% of its value if its reputation is negatively impacted, where media plays a crucial role. This could potentially present £300-500 million impact on Wood Group (this figure includes all European operations as negative media attention would impact Wood Group as a brand), a fall in business & a potential $50 million profit loss over the next 3 years. In the case of an incident in relation to water we could also face enforcement action from the regulators. |
| 2514 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Chile | Other: Ascotan salt flat drainage basin | Physical-Increased water scarcity | Other: see description of impact | Curtailed mine production and prevention of mine expansion opportunities, increased capital expenditures and operational maintenance costs associated with development of alternative, renewable water supplies. | Unknown | Unknown | Unknown | Other: see details of strategy | High | El Abra has sufficient water rights to support current operations, but a change to the project, such as increased production or mill processing, would require additional water beyond our current groundwater pumping. In response, El Abra is studying the feasibility of constructing a seawater desalination plant to support possible increased sulfide ore production or mill processing. |
| 2515 | 23206 | Wood Group | United Kingdom | Water | 2016 | Public | Oil & Gas | Energy | United Kingdom | Other: OTHER UK | Reputational-Negative media coverage | Brand damage | An organisation’s reputation makes a firm more attractive to investors, customers, suppliers, exchange partners & employees. As Wood Group predominantly serve the oil and gas industry, perception of the impact of the industry on the environment, including here water has a clear and direct correlation to our reputation. Thus, if any negative media attention would appear in relation to Wood Group, this would significantly and directly impact our brand value. Through our commitment to transparent and responsible business we wish to maintain our reputation within the oil and gas industry and beyond built on trust and honesty. | 1-3 years | Probable | High | Greater due diligence | A study published by the Paris School of Economics in 2011 found a correlation between negative media attention and financial performance of business. They found that on the days when negative media coverage is noted, trading volume falls byabout 18%. At average our trading volumes are at >1million shares a day. | Delivering a service that promotes best practice around HSE is the key for minimizing risks to our reputation by reinforcing our shareholders & clients view of Wood Group as a responsible organization. A Company can lose 20-30% of its value if its reputation is negatively impacted, where media plays crucial role. This could potentially present £300-500 million impact on Wood Group (this figure includes all European operations as negative media attention would impact Wood Group as a brand), a fall in business & a potential $50 million profit loss over the next 3 years. In the case of an incident in relation to water we could also face enforcement action from the regulators. |
| 2516 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | United States of America | Colorado River (Pacific Ocean) | Regulatory-Regulatory uncertainty | Other: see description of impact | In the arid western U.S. water rights are often contested, and disputes are generally time-consuming, expensive and not necessarily dispositive unless they resolve both actual and potential claims. The loss of a water right or a continued use of a currently available water supply, or the inability to expand our water resources could materially and adversely affect our mining operations by increasing costs, forcing us to curtail operations, prevent expansions or forcing premature closures. | Unknown | Unknown | Unknown | Other: see details of strategy | Unknown | In response to the business continuity risk, our company continues to explore opportunities to augment existing water supplies and to complete water right settlement agreements that secure existing water supplies. Mining sites in arid regions also maintain water balance models to better understand water users and to identify losses within the operation. The company also remains an active participant in ongoing water rights adjudication proceedings and in litigation over federal reserved water rights claims, both of which are currently ongoing in Arizona. |
| 2517 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | United States of America | Colorado River (Pacific Ocean) | Physical-Increased water scarcity | Other: see description of impact | Our operations in the western U.S. require significant quantities of water. The loss of a water right or a continued use of a currently available water supply, or the inability to expand our water resources could materially and adversely affect our mining operations by increasing costs, forcing us to curtail operations, prevent expansions or forcing premature closures. | Unknown | Unknown | Unknown | Other: see details of strategy | Unknown | In response to this business continuity risk, our company continues to explore opportunities to augment existing water supplies. Mining sites in arid regions also maintain water balance models to better understand water users and to identify losses within the operation. |
| 2518 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | United States of America | Colorado River (Pacific Ocean) | Regulatory-Statutory water withdrawal limits/changes to water allocation | Other: see description of impact | In the arid western U.S. water rights are often contested, and disputes are generally time-consuming, expensive and not necessarily dispositive unless they resolve both actual and potential claims. The loss of a water right or a continued use of a currently available water supply, or the inability to expand our water resources could materially and adversely affect our mining operations by increasing costs, forcing us to curtail operations, prevent expansions or forcing premature closures. | Unknown | Unknown | Unknown | Other: see details of strategy | Unknown | In response to this business continuity risk, our company continues to explore opportunities to augment existing water supplies and to complete water right settlement agreements that secure existing water supplies. Mining sites in arid regions also maintain water balance models to better understand water users and to identify losses within the operation. |
| 2519 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | United States of America | Colorado River (Pacific Ocean) | Physical-Flooding | Other: see description of impact | Potential short-term interruptions to business operations and potential safety hazard. | Unknown | Unknown | Unknown | Other: see details of strategy | Unknown | While overall rainfall events can be infrequent and short-term in nature, large volumes of water can accumulate from isolated heavy rainfall events. Business interruption can also stem from higher intensity, short duration storms. These isolated events can produce negative, but generally non-material, effects on mining and production rates. Evaporation and other water management activities have been developed to varying degrees at these sites to help reduce the volume of captured stormwater. |
| 2520 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | United States of America | Other: Arizona tributaries to Colorado River (Pacific Ocean) | Reputational-Litigation | Other: see description of impact | In the arid western U.S. water rights are often contested, and disputes are generally time-consuming, expensive and not necessarily dispositive unless they resolve both actual and potential claims. The loss of a water right or a continued use of a currently available water supply, or the inability to expand our water resources could materially and adversely affect our mining operations by increasing costs, forcing us to curtail operations, prevent expansions or forcing premature closures. | Unknown | Unknown | Unknown | Unknown | In Arizona, we are a participant in two active general stream adjudications in which, for over 40 years, the Arizona courts have been attempting to quantify and prioritize surface water claims for two of the state's largest river systems, which affect our operating mines at Morenci, Safford, Sierrita and Miami. Litigation results could be material to the company as described in our 2015 Form 10-K, Part I. Item 3 (Legal Proceedings), page 64-66. | |
| 2521 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Chile | Other: Ascotan salt flat drainage basin | Regulatory-Regulatory uncertainty | Other: see description of impact | The loss of a water right or a continued use of a currently available water supply, or the inability to expand our water resources could materially and adversely affect our mining operations by increasing costs, forcing us to curtail operations, prevent expansions or forcing premature closures. | Unknown | Unknown | Unknown | Other: see details of strategy | High | Our El Abra operation, near Calama, Chile is conducting studies to assess the feasibility of constructing a desalination plant to treat seawater for potential use for sulfide ore production or mill processing. |
| 2522 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Chile | Other: Ascotan salt flat drainage basin | Regulatory-Statutory water withdrawal limits/changes to water allocation | Other: see description of impact | The loss of a water right or a continued use of a currently available water supply, or the inability to expand our water resources could materially and adversely affect our mining operations by increasing costs, forcing us to curtail operations, prevent expansions or forcing premature closures. | Unknown | Unknown | Unknown | Other: see details of strategy | High | Our El Abra operation, near Calama, Chile is conducting studies to assess the feasibility of constructing a desalination plant to treat seawater for potential use for sulfide ore production or mill processing. |
| 2523 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Peru | Other: Chili River | Physical-Increased water scarcity | Other: see description of impact | Water for our Cerro Verde operations comes from renewable sources through a series of storage reservoirs on the Chili River watershed that collect water primarily from seasonal precipitation. | Unknown | Unlikely | Unknown | Other: see details of strategy | Response strategy is already budgeted | Cerro Verde's participation in the Pillones Reservoir Project has allowed better regulation of the Chili River system, securing water rights to support Cerro Verde's operations. In 2015, Cerro Verde completed construction of a wastewater treatment plant that intercepts raw sewage that would otherwise be discharged into the Chili River and processes it for both use at Cerro Verde mine and for return of treated water into the Chili River. Prior to construction, Cerro Verde reached agreement with the Regional Government of Arequipa, the National Government, the local water utility company, Servicio de Agua Potable y Alcantarillado de Arequipa S.A. (SEDAPAR) and other local institutions to allow it to reuse an average of one cubic-foot-per-second of the treated water to support the recently completed concentrator expansion. |
| 2524 | 23228 | Freeport-McMoRan Inc. | USA | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Indonesia | Other: Ajkwa | Physical-Flooding | Other: see description of impact | Potential interruptions to business operations and potential safety hazard. | Unknown | Unknown | Unknown | Other: see details of strategy | Unknown | The Grasberg Mine is located in steep, mountainous terrain that experiences average annual rainfall of approximately 200 inches, leading to periodic mudslides. |
| 2525 | 23633 | YÜNSA YÜNLÜ SANAYI VE TICARET A.S. | Turkey | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Turkey | Other: All of our production is done at Çerkezköy Plant in Tekirdag- Turkey. | Other: All of our production is done at Çerkezköy Plant in Tekirdag- Turkey. | Closure of operations | As we are in textile industry flooding can cause a great negative effect to our raw materials and products. Flood could also cause shut off, daily shut off cost is 350,000 USD. | Current-up to 1 year | Probable | High | Develop flood emergency plans; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Infrastructure investment; Infrastructure maintenance | We insured our Çerkezköy Plant for 217,956 USD. | We engage with our stakeholders mainly with governmental organizations like, Çerkezköy Industrialized Zone Management, with peer companies. We took necessary precautions like flood prevention systems. We insured our Çerkezköy Plant for 217,956 USD. |
| 2526 | 23633 | YÜNSA YÜNLÜ SANAYI VE TICARET A.S. | Turkey | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Turkey | Other: All of our production is done at Çerkezköy Plant in Tekirdag- Turkey. | Physical-Flooding | Closure of operations | As we are in textile industry flooding can cause a great negative effect to our raw materials and products. Flood could also cause shut off, daily shut off cost is 350,000 USD. | Current-up to 1 year | Probable | High | Develop flood emergency plans; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Infrastructure investment; Infrastructure maintenance | We insured our Çerkezköy Plant for 217,956 USD. | We engage with our stakeholders mainly with governmental organizations like, Çerkezköy Industrialized Zone Management, with peer companies. We took necessary precautions like flood prevention systems. We insured our Çerkezköy Plant for 217,956 USD. |
| 2527 | 29789 | Cenovus Energy Inc. | Canada | Water | 2016 | Public | Oil & Gas | Energy | Canada | Mackenzie River | Regulatory-Increased difficulty in obtaining withdrawals/operations permit | Delays in permitting | Permitting delays resulting in 2 year delay to asset development plans. | >6 years | Unlikely | High | Infrastructure investment; Increased investment in new technology | Medium | We have focused on demonstrating continual improvement in our water use intensity, by applying existing technologies and developing new technologies that have resulted in more efficient operations that use less water and occupy less land. We use water every year to support drilling and construction programs to develop our assets and we are striving to improve our water management performance in this area by making continued improvements to our internal processes and procedures. Cenovus continues to use our online water tracking program and applicable mobile phone app to improve our water tracking. It enables increased reporting accuracy, reduced time and costs associated with data entry. |
| 2528 | 29789 | Cenovus Energy Inc. | Canada | Water | 2016 | Public | Oil & Gas | Energy | Canada | Mackenzie River | Regulatory-Unclear and/or unstable regulations on water allocation and wastewater discharge | Higher operating costs | Unclear regulations on water disposal could result in increased cost of operation. | 4-6 years | Unlikely | Medium | Engagement with public policy makers | Low | Engage with regulators to gain clarity on disposal regulations. |
| 2529 | 29789 | Cenovus Energy Inc. | Canada | Water | 2016 | Public | Oil & Gas | Energy | Canada | Churchill River | Regulatory-Mandatory water efficiency, conservation, recycling or process standards | Higher operating costs | Increasing stringency of water efficiency regulations requiring technology retrofits to existing operations. | 4-6 years | Unlikely | Medium | Engagement with public policy makers | Low | Cenovus is installing water use efficiency retrofits, such as glycol cooling loops and blowdown boilers, at existing operations in order to meet new disposal regulations. Cenovus continues to invest in technology development that can reduce our water use without compromising our energy efficiency. Internally at Cenovus we have a variety of working groups working across assets to share water saving opportunities and best practices related to water. We participate in Canada's Oil Sands Innovation Alliance (COSIA) to share our best practices and learn those of others. |
| 2530 | 29936 | Pinnacle Foods Group | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Mississippi River | Regulatory-Higher water prices | Higher operating costs | Because Pinnacle Foods leverages municipal water in a variety of ways such as the cleaning of vegetables and within our production processes, any increases in water prices will result in higher operating costs. | 1-3 years | Unlikely | Low | Other: Efficiency Programs | Cost of response strategy is assumed to add no significant additional cost as any expenses incurred are included within the boundary or normal operating costs, but are not expected to exceed 1 million USD. | Our Supply Chain Leadership Team continuously monitors current regulatory and market conditions that may result in increased operational costs. To mitigate exposure to this risk, we have continued to reduce water usage through efficiency and projects. For example, we have replaced air compressors in our Fort Madison IA plant, saving 40 million gallons of water, annually. |
| 2531 | 30495 | SunPower Corporation | USA | Water | 2016 | Public | Electrical Equipment and Machinery | Industrials | Philippines | Other: Santa Rosa Watershed | Physical-Projected water scarcity | Plant/production disruption leading to reduced output | For example, we have a Fab that uses large quantities of water located in the Philippine’s Santa Rosa watershed and are at risk of having water scarcity over the long term (approximately 10 to 20 years) since the watershed is experiencing rapid land conversion as residential and industrial development. | >6 years | Unlikely | Medium-high | Infrastructure investment; Increased investment in new technology; Water management incentives | We design our buildings to be resource efficient and resilient to potential water risks and in 2015 we have invested over $60,000 in more than 30 voluntary projects. | In 2015 alone, we invested over $60,000 in more than 30 voluntary projects that reduced annual water usage estimated at 258 megaliters. The investments in these projects saved us an estimated $250,000 in operating costs. At one facility we installed a system to capture the condensate water from our Make-up Air Units for use as cooling tower make-up water and for landscaping. Another site recycles water from glass washers to the cooling towers, where the water is recycled through the cooling tower discharge until it no longer meets quality standards. In addition, several sites now recycle deionized reject water for use in other onsite processes. |
| 2532 | 30495 | SunPower Corporation | USA | Water | 2016 | Public | Electrical Equipment and Machinery | Industrials | Philippines | Other: Santa Rosa Watershed | Physical-Climate change | Plant/production disruption leading to reduced output | For example, we have a Fab that uses large quantities of water located in the Philippine’s Santa Rosa watershed and are at risk of having water scarcity over the long term (approximately 10 to 20 years) since the watershed is experiencing rapid land conversion as residential and industrial development. | >6 years | Unlikely | Medium-high | Infrastructure investment; Increased investment in new technology; Water management incentives | We design our buildings to be resource efficient and resilient to potential water risks and in 2015 we have invested over $60,000 in more than 30 voluntary projects. | In 2015 alone, we invested over $60,000 in more than 30 voluntary projects that reduced annual water usage estimated at 258 megaliters. The investments in these projects saved us an estimated $250,000 in operating costs. At one facility we installed a system to capture the condensate water from our Make-up Air Units for use as cooling tower make-up water and for landscaping. Another site recycles water from glass washers to the cooling towers, where the water is recycled through the cooling tower discharge until it no longer meets quality standards. In addition, several sites now recycle deionized reject water for use in other onsite processes. |
| 2533 | 30495 | SunPower Corporation | USA | Water | 2016 | Public | Electrical Equipment and Machinery | Industrials | Malaysia | Other: Sungai Linggi | Physical-Climate change | Plant/production disruption leading to reduced output | Research indicates that climate change could amplify the violent storms will occur between the Tropic of Cancer and the Tropic of Capricorn. SunPower’s manufacturing operations located in the Philippines and Malaysia are in this area and could experience damage as a result of typhoons and other extreme weather events. Substantial storm damage to these factories (or vendors/transport in the supply chain) as a result of climate change-related severe weather events could result in business interruption or severe impact resulting from a shortage of supply or products. Property damage could increase repair costs, cause lost work time and lost revenue as operations need to shutdown to recover leading to disruptions in production. | >6 years | Unlikely | Medium-high | Infrastructure investment; Increased investment in new technology | We design our buildings to be resource efficient and resilient to risks such as extreme storms with the help of FM Global. | SunPower and AUO Corp. formed the joint venture AUOSP and each owns 50% of the solar cell manufacturing facility in Malaysia that manufactures solar cells. The two-building facility is over 108,000 square meters (more than 1 million square feet), which is approximately the size of seven U.S. football fields, and houses 28 solar cell production lines. Over $214 million was invested in developing Fab 3. This cost estimate is derived based on our annual financial accounting and disclosure in the SEC 10K filing. Though these impacts represent the worst case scenario, our plants have redundant operations between Fab 2 and 3. |
| 2534 | 44674 | Synthomer plc | United Kingdom | Water | 2016 | Public | Chemicals | Materials | Saudi Arabia | Other: Umm er Radhuma- Dammam Aquifer System | Physical-Increased water scarcity | Plant/production disruption leading to reduced output | Saudi Arabia is relying more on desalination (as well as recycling processes) to maintain water supplies - there are risks of disruption and cost increases as aquifer stocks run out | 4-6 years | Probable | Low-medium | Establish site-specific targets; Promote best practice and awareness | Not estimated | The primary focus is on efficient water usage and working to meet long term company targets to only consume the water that is sold in our products. |
| 2535 | 31343 | Royal Bafokeng Platinum Ltd | South Africa | Water | 2016 | Public | Materials | South Africa | Limpopo (WMA) | Physical-Increased water stress | Plant/production disruption leading to reduced output | Water scarcity in the region may result in reduced availability and increased cost of potable water, leading to disruptions in production and higher input costs. This may also lead to disruptions in community supply and increasing demand for community support from RBPlat. This is particularly relevant for RBPlat as large amounts of potable water are consumed in the concentrator plants. Although there have not been any water security issues yet, the cost of potable water has increased by 25 % over the last 3 years. | Current-up to 1 year | Highly probable | Medium-high | Infrastructure investment; Increased capital expenditure | We have built a water treatment plant which will enable us to use treated water and hence reduce the need to use potable water at a cost of R20 million. | In order to mitigate this risk, RBPlat constructed and commissioned a water treatment plant in late 2015. The water treatment plant enables us to re-use contaminated mine water in the concentrator plant and hence reduces the need to use potable water. In addition, the mine has implemented a closed loop system where water is reused on site as much as possible; therefore reducing the dependence on potable water. The cost of the water treatment plant was approximately R20 million and is a direct capital cost. The costs incurred were derived from actual invoices. | |
| 2536 | 31343 | Royal Bafokeng Platinum Ltd | South Africa | Water | 2016 | Public | Materials | South Africa | Limpopo (WMA) | Physical-Increased water scarcity | Plant/production disruption leading to reduced output | Water scarcity in the region may result in reduced availability and increased cost of potable water, leading to disruptions in production and higher input costs. This may also lead to disruptions in community supply and increasing demand for community support from RBPlat. This is particularly relevant for RBPlat as large amounts of potable water are consumed in the concentrator plants. Although there have not been any water security issues yet, the cost of potable water has increased by 25 % over the last 3 years. | Current-up to 1 year | Highly probable | Medium-high | Infrastructure investment; Increased capital expenditure | We have built a water treatment plant which will enable us to use treated water and hence reduce the need to use potable water at a cost of R20 million. | In order to mitigate this risk, RBPlat constructed and commissioned a water treatment plant in late 2015. The water treatment plant enables us to re-use contaminated mine water in the concentrator plant and hence reduces the need to use potable water. In addition, the mine has implemented a closed loop system where water is reused on site as much as possible; therefore reducing the dependence on potable water. The cost of the water treatment plant was approximately R20 million and is a direct capital cost. The costs incurred were derived from actual invoices. | |
| 2537 | 31343 | Royal Bafokeng Platinum Ltd | South Africa | Water | 2016 | Public | Materials | South Africa | Limpopo (WMA) | Physical- Pollution of water source | Fines/ penalties | Both our operations have been issued with Water Use Licenses. However, the conditions attached to the license, specifically related to ground and surface water quality, are not aligned to industry standards. In addition, one of the issues with the quality of our contaminated water is elevated levels of nitrates, likely to be caused by the contamination of underground water by the explosives used in our blasting processes. This has the potential to cause surface and groundwater contamination if accidental discharge and seepage occurs. In addition, the open-cast pits that are to be rehabilitated as per the Mine EMPR have subsequently filled with process water from the return water dams. This could potentially result in fines or penalties if not rehabilitated. | 1-3 years | Highly probable | Medium | Engagement with public policy makers; Infrastructure maintenance | Our on-going water management costs related to monitoring and modelling are approximately R860,000 per year. | We have engaged and continue to engage with the Department of Water and Sanitation in order to amend the Water Use License conditions and await their response in this regard. We also conduct regular surface and ground-water monitoring in order to model the groundwater impacts caused from our mining operations. We have also built a water treatment plant, which not only reduces our potable water intake but assists in minimising the contaminants from our process water so the water can be re-used. The costs incurred for on-going water management were derived from actual invoices. | |
| 2538 | 31343 | Royal Bafokeng Platinum Ltd | South Africa | Water | 2016 | Public | Materials | South Africa | Limpopo (WMA) | Regulatory-Regulatory uncertainty | Fines/ penalties | Both our operations have been issued with Water Use Licenses. However, the conditions attached to the license, specifically related to ground and surface water quality, are not aligned to industry standards. In addition, one of the issues with the quality of our contaminated water is elevated levels of nitrates, likely to be caused by the contamination of underground water by the explosives used in our blasting processes. This has the potential to cause surface and groundwater contamination if accidental discharge and seepage occurs. In addition, the open-cast pits that are to be rehabilitated as per the Mine EMPR have subsequently filled with process water from the return water dams. This could potentially result in fines or penalties if not rehabilitated. | 1-3 years | Highly probable | Medium | Engagement with public policy makers; Infrastructure maintenance | Our on-going water management costs related to monitoring and modelling are approximately R860,000 per year. | We have engaged and continue to engage with the Department of Water and Sanitation in order to amend the Water Use License conditions and await their response in this regard. We also conduct regular surface and ground-water monitoring in order to model the groundwater impacts caused from our mining operations. We have also built a water treatment plant, which not only reduces our potable water intake but assists in minimising the contaminants from our process water so the water can be re-used. The costs incurred for on-going water management were derived from actual invoices. | |
| 2539 | 31681 | Sandfire Resources NL | Australia | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Gascoyne River | Regulatory-Regulation of discharge quality/volumes leading to higher compliance costs | Higher operating costs | Increased regulation of discharge would result in increased monitoring and reporting costs and potential for increase in infrastructure costs related to water resources management and compliance | 1-3 years | Probable | Medium | Engagement with public policy makers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Promote best practice and awareness | Costs have not been determined | In the immediate area of the Sandfire DeGrussa Operation there is no opportunity to use excess water and discharge into local ephemeral streams is undertaken. Change in regulation may require significant investment in infrastructure to meet any changed requirements. |
| 2540 | 31343 | Royal Bafokeng Platinum Ltd | South Africa | Water | 2016 | Public | Materials | South Africa | Limpopo (WMA) | Reputational-Negative media coverage | Fines/ penalties | Both our operations have been issued with Water Use Licenses. However, the conditions attached to the license, specifically related to ground and surface water quality, are not aligned to industry standards. In addition, one of the issues with the quality of our contaminated water is elevated levels of nitrates, likely to be caused by the contamination of underground water by the explosives used in our blasting processes. This has the potential to cause surface and groundwater contamination if accidental discharge and seepage occurs. In addition, the open-cast pits that are to be rehabilitated as per the Mine EMPR have subsequently filled with process water from the return water dams. This could potentially result in fines or penalties if not rehabilitated. | 1-3 years | Highly probable | Medium | Engagement with public policy makers; Infrastructure maintenance | Our on-going water management costs related to monitoring and modelling are approximately R860,000 per year. | We have engaged and continue to engage with the Department of Water and Sanitation in order to amend the Water Use License conditions and await their response in this regard. We also conduct regular surface and ground-water monitoring in order to model the groundwater impacts caused from our mining operations. We have also built a water treatment plant, which not only reduces our potable water intake but assists in minimising the contaminants from our process water so the water can be re-used. The costs incurred for on-going water management were derived from actual invoices. | |
| 2541 | 31343 | Royal Bafokeng Platinum Ltd | South Africa | Water | 2016 | Public | Materials | South Africa | Limpopo (WMA) | Regulatory-Unclear and/or unstable regulations on water allocation and wastewater discharge | Fines/ penalties | Both our operations have been issued with Water Use Licenses. However, the conditions attached to the license, specifically related to ground and surface water quality, are not aligned to industry standards. In addition, one of the issues with the quality of our contaminated water is elevated levels of nitrates, likely to be caused by the contamination of underground water by the explosives used in our blasting processes. This has the potential to cause surface and groundwater contamination if accidental discharge and seepage occurs. In addition, the open-cast pits that are to be rehabilitated as per the Mine EMPR have subsequently filled with process water from the return water dams. This could potentially result in fines or penalties if not rehabilitated. | 1-3 years | Highly probable | Medium | Engagement with public policy makers; Infrastructure maintenance | Our on-going water management costs related to monitoring and modelling are approximately R860,000 per year. | We have engaged and continue to engage with the Department of Water and Sanitation in order to amend the Water Use License conditions and await their response in this regard. We also conduct regular surface and ground-water monitoring in order to model the groundwater impacts caused from our mining operations. We have also built a water treatment plant, which not only reduces our potable water intake but assists in minimising the contaminants from our process water so the water can be re-used. The costs incurred for on-going water management were derived from actual invoices. | |
| 2542 | 31343 | Royal Bafokeng Platinum Ltd | South Africa | Water | 2016 | Public | Materials | South Africa | Limpopo (WMA) | Regulatory-Regulatory uncertainty | Fines/ penalties | There are a number of changing regulations in the water and waste space that may have a cost impact on RBPlat. One is the draft Waste Classification and Management Regulations under the National Environmental Management Act. The regulations require the lining of new pollution control infrastructure and mine residue dumps. Another example is the new waste charge/discharge system that could result in penalties for discharge of contaminated water. | 1-3 years | Highly probable | Medium | Infrastructure investment | There are cost estimates done for the lining of the tailings facility but these numbers can’t be disclosed now as they are not final. | In order to comply with the waste regulations, we will line an extension of our tailings facility. We just completed an EIA study for the extension of the tailings facility and are still waiting for approval. No water is discharged from RBPlat operations. The mine operates on a closed loop system and helps prevent the contamination of ground and surface water resources. | |
| 2543 | 31681 | Sandfire Resources NL | Australia | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Gascoyne River | Physical-Flooding | Closure of operations | A substantial increase in water inflow from aquifers to underground operations which exceeds pumping capacity could result in flooding of the mine. As the only facility currently operated by Sandfire, a requirement to dewater the mine would require the water to be discharged. This would increase ecosystem vulnerability | Unknown | Unknown | High | Develop flood emergency plans | Costs have not been determined | Options for alternate disposal of water and management of underground water flow have been developed and are being implemented Additional exploration of underground aquifer potential and locations to ensure increased confidence in models for water management underground. Additional hydrogeological studies undertaken for the operational activities Amendments to Licences to ensure approvals are current and sufficient to meet possible future dewatering and discharge requirements |
| 2544 | 31681 | Sandfire Resources NL | Australia | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Gascoyne River | Regulatory-Mandatory water efficiency, conservation, recycling or process standards | Higher operating costs | Mandatory water efficiency targets do not take account of technical aspects of operational facilities and may result in higher operating costs to meet regulatory or mandated targets | Unknown | Probable | Medium | Engagement with public policy makers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Increased capital expenditure; Promote best practice and awareness | Costs have not been determined | Operational requirements around water efficiency and targets are driven by process and mining requirements which are variable over time and subject to change. However we do focus on water management efficiency and minimal use and minimal contamination |
| 2545 | 44674 | Synthomer plc | United Kingdom | Water | 2016 | Public | Chemicals | Materials | United Kingdom | Other: Humber | Physical-Flooding | Property damage | Our site sits on the banks of the river Humber. Sea levels in this area are predicted to rise, due to climate change, in the next 100 years.The worst case scenario would see a catastrophic flood event that could lead to regional flooding and closure of the site | >6 years | Probable | High | Develop flood emergency plans; Engagement with public policy makers | Not determined | No specific strategy has yet been defined - engagement with the EA and other groups around flood defence management on the Humber one initial area for consideration. |
| 2546 | 31681 | Sandfire Resources NL | Australia | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Gascoyne River | Regulatory-Unclear and/or unstable regulations on water allocation and wastewater discharge | Delays in permitting | Changes in legislation and application of new related regulations will lead to some uncertaintyExceptional requests by regulators creates additional compliance and reporting requirements | Current-up to 1 year | Probable | Medium-high | Engagement with public policy makers; Increased capital expenditure; Other: Additioanl consultancy to addres regulatory requests | $25,000 -$50,000 to resolve | Strategy is to engage with regulators in development of changes to the regulatory framework to minimise impact through incorporation of consideration changes in planning. |
| 2547 | 31681 | Sandfire Resources NL | Australia | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Gascoyne River | Regulatory-Poor coordination between regulatory bodies | Delays in permitting | Changes in legislation and application of new related regulations will lead to some uncertaintyExceptional requests by regulators creates additional compliance and reporting requirements | Current-up to 1 year | Probable | Medium-high | Engagement with public policy makers; Increased capital expenditure; Other: Additioanl consultancy to addres regulatory requests | $25,000 -$50,000 to resolve | Strategy is to engage with regulators in development of changes to the regulatory framework to minimise impact through incorporation of consideration changes in planning. |
| 2548 | 31681 | Sandfire Resources NL | Australia | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Gascoyne River | Regulatory-Regulatory uncertainty | Delays in permitting | Changes in legislation and application of new related regulations will lead to some uncertaintyExceptional requests by regulators creates additional compliance and reporting requirements | Current-up to 1 year | Probable | Medium-high | Engagement with public policy makers; Increased capital expenditure; Other: Additioanl consultancy to addres regulatory requests | $25,000 -$50,000 to resolve | Strategy is to engage with regulators in development of changes to the regulatory framework to minimise impact through incorporation of consideration changes in planning. |
| 2549 | 31681 | Sandfire Resources NL | Australia | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Gascoyne River | Regulatory-Statutory water withdrawal limits/changes to water allocation | Plant/production disruption leading to reduced output | Strategy is to engage with regulators in development of changes to the regulatory framework to minimise impact through incorporation of consideration changes in planning. | Unknown | Unknown | Low-medium | Establish site-specific targets; Infrastructure investment; Promote best practice and awareness | Costs are unknown | Strategy is to ensure water use is maintained in accordance with Licenced extraction / allocation and implement water efficiency programs and engage with regulator on a regular basis |
| 2550 | 31819 | New Gold Inc. | Canada | Water | 2016 | Public | Materials |
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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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