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2016 – Water risks that could impact companies’ supply chain

Row numberAccount NumberCompany NameIncorporated CountryCDP ProgramReporting YearAccessIndustry Activity GroupGiCS SectorCountryRiver basinRisk driverPotential impactDescription of impactTimeframeLikelihoodMagnitude of potential financial impactResponse strategyCosts of response strategyDetails of strategy and costs
60112942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesColombiaOther: Magdalena River Basin; Projects in 25 river basinsPhysical-Seasonal supply variability/Inter annual variabilitySupply chain disruptionColombia is one of the major coffee producing countries where Nestlé sources its green beans, therefore the effects of climate change and water challenges on Colombian coffee sector have an impact on our sourcing of raw materials. Colombia endures a dual water challenge with both water shortage and excess, with 23% of the population facing problems of access to water during dry years and close to 10% affected by intense rain events. This water imbalance has a strong negative effect on the productivity of farms, with harvest drops of up to 40%. In rural Colombia, 25% of the population is active in coffee farming, where 95% are smallholders. Since coffee is the country’s main agricultural product, the effective implementation of an integrated water management system depends on the inclusion of the coffee sector as a pioneer and an axis stakeholder – especially since the occurrence and severity of extreme events is likely to increase.• The impact in Colombia is estimated to last more than 5 years. It is both droughts and floods.4-6 yearsProbableMediumEngagement with community; Engagement with suppliers; Infrastructure investment; Increased investment in new technology; Promote best practice and awareness; Water management incentivesThe cost of response is estimated at CHF 24.6 million over five years (2014–2018). To address these issues, Nescafé and Nespresso launched a major water stewardship initiative with the Dutch Ministry of Foreign Affairs, the Colombian Federation of Coffee Growers, the Wageningen University and the Ministry of Rural Development. The cost has been financed by this private public partnership.In cooperation with the Colombian Ministry of Rural Development, the Colombian Federation of Coffee Growers, the Dutch Ministry of Foreign Affairs and the Wageningen University and Research Centre, the Intelligent Water Management (IWM) project seeks to make the Colombian coffee sector more resilient to the effects of climate change and water scarcity through improved environmental performance at a farm and watershed level. The programs focus on 4 areas: •Clean technology transfer – saving water and discharging better-quality water after the coffee-washing process. Training on the economic management of farms and IWM has been given to hundreds of participating coffee producers, while 10 pioneering water-reuse systems have been constructed. The feasibility of a central mill as an alternative to individual mills was also assessed. •Healthy ecosystems – using agroforestry and bioengineering to minimise soil erosion and ensure the conservation of important water areas. Around 160 were selected for reforestation and agroforestry projects, and coffee plantlets were distributed to farmers to create nurseries. 15 sites prone to landslides were also selected for specific bioengineering restoration projects. •Knowledge generation – implementing a water and climate monitoring system and preventing crop damage due to extreme weather events. All the equipment for 25 water and climate monitoring stations was installed at selected farms, and 2 rounds of water samples taken. •Cooperation and participation – collective action and advocacy through engagement with public and private sector organisations, academia and civil society. Action plans are under development, and 27 local Manos al Agua community participation groups have been set up. The IWM program will now concentrate on training farmers and implementing specific actions in each of the 25 river basins - reforesting, bioengineering activities and the installation of climate monitoring stations.
60212942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesPakistanIndusRegulatory-Statutory water withdrawal limits/changes to water allocationHigher operating costsLowering of water level may give rise to regulator changes to limit water withdrawal from ground resources. This may affect the volumes of production and may lead to newer water technologies to be implemented with potential increasing operational costs.>6 yearsProbableHighIncreased investment in new technologyHighConventionally, farmers across Pakistan cultivate rice by sowing seeds within nurseries, and then transplanting the seedlings into the puddled soil of the paddy fields. However, this approach requires large amounts of water, as well as labour and fuel. Also, in some areas, rice grown by traditional methods contains high levels of arsenic due to contamination from deep-well irrigated water.This is a serious issue for Nestlé Pakistan, which uses rice in its products. Working with the University of Agriculture in Faisalabad, we ran a six-month field trial to test the direct seeding of rice, rather than the traditional two-step approach.Twelve of the most popular varieties of rice were sown under normal moisture conditions rather than in puddled soil.The results highlighted a number of benefits. Water use was cut by up to 50%, arsenic residues were down by more than 65%, and much less labour was required to nurture the seeds. Even tractor use was halved, helping reduce fuel consumption and greenhouse gas emissions, and the directly seeded plants took two weeks fewer to grow.Given the encouraging results, we will be collaborating with our suppliers to promote this new method of farming, to ensure we can continue to provide consumers with the best rice possible. We will also conduct further field trials at different locations across the Punjab to continue to evaluate the suitability of the direct seeding method, and investigate variances in arsenic residues across different varieties of rice.
60312942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesPanamaOther:Physical-Increased water stressHigher operating costsIn Panama, there are two main seasons: rainy and dry. Normally, the dry season begins in mid-December and finishes in late May. During this period of water shortage, springs form where groundwater meets the surface. This may affect the volumes of production and may lead to newer water technologies to be implemented with potential increasing operational costs.1-3 yearsProbableMediumEngagement with suppliers; Infrastructure investmentLowIn 2014, Nestlé Agricultural Services field inspectors helped build springwater collection points in five dairy farms in Panama to capture this water, and trained the farmers using our Spring Water Collection Manual.As their cows could remain in pastures where no water was otherwise available, milking could continue during the long dry season. The cows and calves are now in better physical condition, and milk yields have risen by 10%. The number of farms adopting this approach increased to 25 in 2015.
60412942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesPanamaOther:Physical-Seasonal supply variability/Inter annual variabilityHigher operating costsIn Panama, there are two main seasons: rainy and dry. Normally, the dry season begins in mid-December and finishes in late May. During this period of water shortage, springs form where groundwater meets the surface. This may affect the volumes of production and may lead to newer water technologies to be implemented with potential increasing operational costs.1-3 yearsProbableMediumEngagement with suppliers; Infrastructure investmentLowIn 2014, Nestlé Agricultural Services field inspectors helped build springwater collection points in five dairy farms in Panama to capture this water, and trained the farmers using our Spring Water Collection Manual.As their cows could remain in pastures where no water was otherwise available, milking could continue during the long dry season. The cows and calves are now in better physical condition, and milk yields have risen by 10%. The number of farms adopting this approach increased to 25 in 2015.
60512942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesEcuadorPhysical-Climate changeDecrease in shareholder valueThe highlands and forests of Ecuador are under constant threat from human activity, as local populations are forced to farm higher up, on poor quality land prone to erosion. Large areas of forest are cleared for grazing and other agricultural purposes; most trees are not replaced or invasive species of tree are planted, and this removal of the tree canopy has a significant impact on water availability and ecosystem diversity.>6 yearsProbableMedium-highEngagement with community; Engagement with other stakeholders in the river basin; River basin restoration; Strengthen links with local communityLow-mediumThrough the Let’s Plant Water programme, Nestlé seeks to educate and reforest. As part of its educational component, Nestlé signed a cooperation agreement in 2014 with the Quito Botanical Garden to spread its water conservation education programme to 10000 children.Let’s Plant Water also works to reforest areas near water using native tree species, in collaboration with neighbouring communities, civil society bodies and public institutions. Since 2011, 108950 native trees have been planted in areas close to water, with the active participation of Nestlé volunteers, neighbouring communities and local scout groups.We hope to expand the programme with a 100% increase in reforestation, planting 180000 native trees and educating 30000 children about the environment by 2018.
60612942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesEcuadorPhysical-Projected water stressDecrease in shareholder valueThe highlands and forests of Ecuador are under constant threat from human activity, as local populations are forced to farm higher up, on poor quality land prone to erosion. Large areas of forest are cleared for grazing and other agricultural purposes; most trees are not replaced or invasive species of tree are planted, and this removal of the tree canopy has a significant impact on water availability and ecosystem diversity.>6 yearsProbableMedium-highEngagement with community; Engagement with other stakeholders in the river basin; River basin restoration; Strengthen links with local communityLow-mediumThrough the Let’s Plant Water programme, Nestlé seeks to educate and reforest. As part of its educational component, Nestlé signed a cooperation agreement in 2014 with the Quito Botanical Garden to spread its water conservation education programme to 10000 children.Let’s Plant Water also works to reforest areas near water using native tree species, in collaboration with neighbouring communities, civil society bodies and public institutions. Since 2011, 108950 native trees have been planted in areas close to water, with the active participation of Nestlé volunteers, neighbouring communities and local scout groups.We hope to expand the programme with a 100% increase in reforestation, planting 180000 native trees and educating 30000 children about the environment by 2018.
60712942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesCote d IvoireOther: Lak de BuyoPhysical-Increased water stressSupply chain disruptionCôte d’Ivoire’s cocoa production accounts for approximately 40 per cent of the world’s supply. Most cocoa is produced in the south-west of the country. The Earth Security Group published their finding that, supply shortages of cocoa are expected as early as 2020. Ghana and Co^te d’Ivoire are Switzerland’s top cocoa suppliers; both face production bottlenecks that threaten cocoa exports in the coming years. Swiss-based multinationals must go beyond traditional development and CSR approaches to think more creatively about business model innovations that will help smallholder farmers capture more value from the global chocolate market. The impact is expected to last approx. between 4-6 years.4-6 yearsProbableMediumEngagement with community; Engagement with other stakeholders in the river basin; Strengthen links with local communityNestlé became the IFRC’s first corporate partner in Africa in 2002 and, in 2014, we renewed our partnership, committing CHF 5 million over five years to the IFRC.- Over the years of our collaboration, we have increasingly focused on improving access to clean water, sanitation and hygiene in rural communities, such as the cocoa-growing regions of Côte d’Ivoire. Here, a programme of activities was introduced to improve health and hygiene awareness among vulnerable groups, including schoolchildren, teachers and local community members. Around 228861 people in Côte d’Ivoire have now benefited from the initiative, which includes the monitoring and improvement of water quality and water infrastructure, the provision or renovation of sanitation facilities, and the raising of awareness through hygiene awareness programmes in villages and schools. - The IFRC delivers developmental projects to increase the access to water, sanitation and hygiene for all under the framework of its Global Water and Sanitation Initiative (GWSI). Nestlé also supports the GWSI indirectly through joint activities in international forums, internal coordination and management meetings and activities, and the launch of key publications. We are currently supporting the rapid mobile phone-based (RAMP) system in Côte d’Ivoire. Mobile technology and online platforms have become increasingly applicable to both humanitarian and developmental efforts in recent years, and the IFRC’s RAMP system is being adapted and tested to meet the needs of GWSI projects. RAMP gives users real-time access to data, and providesquick analysis, visualisation and mapping tools. It has helpedprogramme managers by increasing transparency andproviding a platform for improved knowledge sharing.
60812942NestléSwitzerlandWater2016PublicFood & Beverage ProcessingConsumer StaplesCote d IvoireOther: Lak de BuyoPhysical-Increased water scarcitySupply chain disruptionCôte d’Ivoire’s cocoa production accounts for approximately 40 per cent of the world’s supply. Most cocoa is produced in the south-west of the country. The Earth Security Group published their finding that, supply shortages of cocoa are expected as early as 2020. Ghana and Co^te d’Ivoire are Switzerland’s top cocoa suppliers; both face production bottlenecks that threaten cocoa exports in the coming years. Swiss-based multinationals must go beyond traditional development and CSR approaches to think more creatively about business model innovations that will help smallholder farmers capture more value from the global chocolate market. The impact is expected to last approx. between 4-6 years.4-6 yearsProbableMediumEngagement with community; Engagement with other stakeholders in the river basin; Strengthen links with local communityNestlé became the IFRC’s first corporate partner in Africa in 2002 and, in 2014, we renewed our partnership, committing CHF 5 million over five years to the IFRC.- Over the years of our collaboration, we have increasingly focused on improving access to clean water, sanitation and hygiene in rural communities, such as the cocoa-growing regions of Côte d’Ivoire. Here, a programme of activities was introduced to improve health and hygiene awareness among vulnerable groups, including schoolchildren, teachers and local community members. Around 228861 people in Côte d’Ivoire have now benefited from the initiative, which includes the monitoring and improvement of water quality and water infrastructure, the provision or renovation of sanitation facilities, and the raising of awareness through hygiene awareness programmes in villages and schools. - The IFRC delivers developmental projects to increase the access to water, sanitation and hygiene for all under the framework of its Global Water and Sanitation Initiative (GWSI). Nestlé also supports the GWSI indirectly through joint activities in international forums, internal coordination and management meetings and activities, and the launch of key publications. We are currently supporting the rapid mobile phone-based (RAMP) system in Côte d’Ivoire. Mobile technology and online platforms have become increasingly applicable to both humanitarian and developmental efforts in recent years, and the IFRC’s RAMP system is being adapted and tested to meet the needs of GWSI projects. RAMP gives users real-time access to data, and providesquick analysis, visualisation and mapping tools. It has helpedprogramme managers by increasing transparency andproviding a platform for improved knowledge sharing.
60913019Netcare LimitedSouth AfricaWater2016PublicHealthcare Providers & Services, and Healthcare TechnologyHealth CareSouth AfricaOther: All basins in which we operate in South AfricaPhysical-Projected water stressOther: Patient health and well-beingShortage of medicine and other critical materials necessary for patient care due to increasing or projected water stress could hinder our ability to deliver quality health care.1-3 yearsProbableMedium-highSupplier diversificationInitial strategy development R1 to R 2 millionNetcare Water Strategy - a component of the Group wide water strategy, initiated during the reporting year, is the identification of risk areas within our supply chain associated with water supply. We will only be able to quantify the potential financial impact of this risk once we have a better understanding of supply chain risk. The strategy for overcoming these issues will include building resilience in our supply chain through supplier diversification and engaging with our suppliers on their strategy to manage water issues. The estimated 'cost of strategy' provided was derived from actual and projected cost calculations. The Netcare Water Strategy will be implemented over the next five years and is expected to decrease our supply chain risk to 'low-medium'.
61013117Newmont Mining CorporationUSAWater2016PublicMaterialsAustraliaOther: HothamPhysical-DroughtHigher operating costsOur Boddington Western Australia operation requires abstraction of Hotham River water for processing purposes. Lower than average rainfall limits the amount of water available for abstraction.Current-up to 1 yearHighly probableLow-mediumInfrastructure investment; Infrastructure maintenance$10 million USDSite awareness programs, flocculation trials (increased tails density reducing water consumption), infrastructure modifications - rerouting pipework (recycling of water) and optimization of plan process control (increasing water efficiency).
61113267Nikon CorporationJapanWater2016PublicConsumer Durables, Household and Personal ProductsConsumer DiscretionaryThailandChao PhrayaPhysical-Climate changePlant/production disruption leading to reduced output????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????1-3 yearsProbableMedium-highSupplier diversification????????????????????????????????????????????
61213267Nikon CorporationJapanWater2016PublicConsumer Durables, Household and Personal ProductsConsumer DiscretionaryThailandChao PhrayaPhysical-FloodingPlant/production disruption leading to reduced output????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????1-3 yearsProbableMedium-highSupplier diversification????????????????????????????????????????????
61313363Nissan Motor Co., Ltd.JapanWater2016PublicAutomobiles & ComponentsConsumer DiscretionaryJapanOther: SeveralPhysical-Increased water stressSupply chain disruptionNissan procure raw material and vehicle parts from suppliers all over the world. Nissan’ suppliers are also located area where current water stress is high such as U.S.A., Mexico and Japan. (Japan was selected as an example in the "country" column.) If supplier faced with water shortage, it could disrupt supply chain and lead to plant/production disruption leading to reduced output.1-3 yearsProbableMedium-highEngagement with suppliersModerate cost is required for CDP Supplier Chain Program"Costs of response strategy" is the cost for CDP supplier program.Based on Nissan Green Program 2016 (NGP2016, Nissan mid-term Environmental Strategy Plan) Nissan is enhancing engagement with suppliers. Nissan holds regular annual environmental briefing sessions for suppliers where it fully shares targets, action plans and understanding of what constitutes environmental impact. Since fiscal 2012, it has conducted surveys to gather information from suppliers on their environmental performance in areas including CO2 emission levels, water use and waste. In fiscal 2014, Nissan further expanded its activities by adopting the supply chain program run by CDP. In fiscal 2015, it worked to improve the accuracy of performance data with the cooperation of CDP and other external specialists. Further, the company institutes mandatory questionnaires concerning handling of environment-impacting substances and environmental management when selecting each supplier. Completion of surveys is also written in Nissan Green Purchasing Guideline
61413395Noble Energy, Inc.USAWater2016PublicOil & GasEnergyUnited States of AmericaOther: Rio Grande, Colorado, & NuecesPhysical-Increased water scarcitySupply chain disruptionPortions of Noble Energy’s operations are in areas of physical water scarcity. Should scarcity increase, restrictions on groundwater and surface water withdrawals could lead to interruptions in its operations or increased operational costs related to sourcing water from additional suppliers.1-3 yearsProbableMediumInfrastructure investmentInfrastructure investment is approached in two ways. Noble Energy may directly invest the capital for storage, piping, and other infrastructure, or the Company may work with landowners or commercial interests to buy capacity in existing or planned infrastructure and pay fees for their use as operational expenses.Noble Energy is evaluating the water management strategy for operations in the Permian Basin and Eagle Ford Shale, which were acquired in 2015. The Company is evaluating water risk, including water scarcity and works with midstream companies to plan infrastructure, development, and operations in order to mitigate these risks.
61513395Noble Energy, Inc.USAWater2016PublicOil & GasEnergyUnited States of AmericaOther: All U.S.Regulatory-Regulation of discharge quality/volumes leading to higher compliance costsHigher operating costsAn increase in public concern and scrutiny over underground injection wells and an increase in development of shale plays in the U.S. could lead to a decrease in the available capacity of disposal wells. This reduced capacity can lead to increased costs.1-3 yearsHighly probableMediumIncreased investment in new technologyNot reportedNoble Energy is evaluating alternatives to disposal via underground injection, including reuse and recycling of wastes.
61613395Noble Energy, Inc.USAWater2016PublicOil & GasEnergyUnited States of AmericaOther: All U.S.Other: Limited injection capacityHigher operating costsAn increase in public concern and scrutiny over underground injection wells and an increase in development of shale plays in the U.S. could lead to a decrease in the available capacity of disposal wells. This reduced capacity can lead to increased costs.1-3 yearsHighly probableMediumIncreased investment in new technologyNot reportedNoble Energy is evaluating alternatives to disposal via underground injection, including reuse and recycling of wastes.
61713524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareChinaHuang He (Yellow River)Physical-DroughtSupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in China to be 41.8Mm3, relating to a estimated external cost of USD63mio.4-6 yearsHighly probableMedium-highEngagement with suppliersIf all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD63mio for China, however, water efficiency measures will allow to reduce these by about 30-40% or even turn to be a benefit, if suppliers are early adopters and proactively react on the internalization of external costs by becoming more water efficient.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in China has just commenced, by direct engagement with selected suppliers to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
61813524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareChinaHuang He (Yellow River)Physical-Climate changeSupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in China to be 41.8Mm3, relating to a estimated external cost of USD63mio.4-6 yearsHighly probableMedium-highEngagement with suppliersIf all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD63mio for China, however, water efficiency measures will allow to reduce these by about 30-40% or even turn to be a benefit, if suppliers are early adopters and proactively react on the internalization of external costs by becoming more water efficient.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in China has just commenced, by direct engagement with selected suppliers to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
61913524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareChinaHuang He (Yellow River)Physical-Ecosystem vulnerabilitySupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in China to be 41.8Mm3, relating to a estimated external cost of USD63mio.4-6 yearsHighly probableMedium-highEngagement with suppliersIf all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD63mio for China, however, water efficiency measures will allow to reduce these by about 30-40% or even turn to be a benefit, if suppliers are early adopters and proactively react on the internalization of external costs by becoming more water efficient.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in China has just commenced, by direct engagement with selected suppliers to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62013524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareChinaHuang He (Yellow River)Physical-Increased water scarcitySupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in China to be 41.8Mm3, relating to a estimated external cost of USD63mio.4-6 yearsHighly probableMedium-highEngagement with suppliersIf all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD63mio for China, however, water efficiency measures will allow to reduce these by about 30-40% or even turn to be a benefit, if suppliers are early adopters and proactively react on the internalization of external costs by becoming more water efficient.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in China has just commenced, by direct engagement with selected suppliers to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62113524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareChinaHuang He (Yellow River)Physical-Projected water scarcitySupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in China to be 41.8Mm3, relating to a estimated external cost of USD63mio.4-6 yearsHighly probableMedium-highEngagement with suppliersIf all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD63mio for China, however, water efficiency measures will allow to reduce these by about 30-40% or even turn to be a benefit, if suppliers are early adopters and proactively react on the internalization of external costs by becoming more water efficient.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in China has just commenced, by direct engagement with selected suppliers to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62213524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareIndiaGanges-BrahmaputraPhysical-Projected water scarcitySupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in India to be 41.7Mm3, relating to a estimated external cost of USD40mio.4-6 yearsHighly probableMedium-highEngagement with suppliersCosts of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs. If all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD40mio for India, however, water efficiency measures will allow to reduce these by about 30-40%.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in India has just commenced, by direct engagement with supplier groups to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62313604NVIDIA CorporationUSAWater2016PublicSemiconductors & Semiconductors EquipmentInformation TechnologyTaiwanOther: TaichungPhysical-Increased water stressSupply chain disruptionOur semiconductor manufacturing is carried out in Taiwan including in river basins with an 'extremely high' level of baseline water stress according to the WRI Aqueduct tool. Semiconductor manufacturing is a relatively high water intensity activity. A shortage of available water supply and/or water use restrictions, should they be imposed on our contract manufacturing operations in Taiwan, could cause some disruption to production output, particularly during the dry season between December and April.1-3 yearsProbableLowEngagement with suppliers; Supplier diversification; Water management incentivesTo date we have not incurred any additional costs associated with this response strategyThrough our membership of the Electronic Industry Citizenship Coalition, we request that our manufacturing suppliers provide us with data on their water use and water reduction goals. While we have identified a substantive inherent risk associated with manufacturing operations in Taiwan, we consider the residual risk to our business to be low thanks to the efforts that our supplier, TSMC, has taken and continues to take to mitigate the risk. TSMC has developed a contingency plan for flood and drought risk, collaborates with local government agencies and other parties to mitigate water supply risks, and has invested in many water conservation and recycling initiatives. In addition to adopting a minimum process water recycling rate of 85%, TSMC also selects high water efficiency process tools, implements process water drainage segregation and sets up process water reclaim systems in new factory construction. NVIDIA has also qualified a second manufacturing source for our semiconductors, which is located in a different region and serves to mitigate the overall risk level.
62413524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareIndiaGanges-BrahmaputraPhysical-Climate changeSupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in India to be 41.7Mm3, relating to a estimated external cost of USD40mio.4-6 yearsHighly probableMedium-highEngagement with suppliersCosts of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs. If all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD40mio for India, however, water efficiency measures will allow to reduce these by about 30-40%.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in India has just commenced, by direct engagement with supplier groups to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62513524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareIndiaGanges-BrahmaputraPhysical-Ecosystem vulnerabilitySupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in India to be 41.7Mm3, relating to a estimated external cost of USD40mio.4-6 yearsHighly probableMedium-highEngagement with suppliersCosts of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs. If all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD40mio for India, however, water efficiency measures will allow to reduce these by about 30-40%.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in India has just commenced, by direct engagement with supplier groups to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62613524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareIndiaGanges-BrahmaputraPhysical-DroughtSupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in India to be 41.7Mm3, relating to a estimated external cost of USD40mio.4-6 yearsHighly probableMedium-highEngagement with suppliersCosts of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs. If all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD40mio for India, however, water efficiency measures will allow to reduce these by about 30-40%.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in India has just commenced, by direct engagement with supplier groups to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62713524NovartisSwitzerlandWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareIndiaGanges-BrahmaputraPhysical-Increased water scarcitySupply chain disruptionAn assessment of the water consumption and risk footprint of the materials supply chain and monetization of environmental externalities show us that that such impacts are highest in the material supply chain. Most relevant countries include China and India. With the study undertaken in 2015 we quantified the water footprint of our materials supply chain in India to be 41.7Mm3, relating to a estimated external cost of USD40mio.4-6 yearsHighly probableMedium-highEngagement with suppliersCosts of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs. If all externalities were included, water costs would grow in the amount of the current externalities, i.e. USD40mio for India, however, water efficiency measures will allow to reduce these by about 30-40%.Our response strategy in managing environmental externalities of the materials supply chain includes to actively manage the selection of suppliers and to influence their environmental footprint by a more close cooperation. The dialogue with suppliers in India has just commenced, by direct engagement with supplier groups to discuss possible actions to minimize environmental impacts and related risks. Costs of such a strategy would potentially be significant, however in the long-term, economic benefits would be bigger than costs.
62813604NVIDIA CorporationUSAWater2016PublicSemiconductors & Semiconductors EquipmentInformation TechnologyTaiwanOther: TaichungPhysical-Rationing of municipal water supplySupply chain disruptionOur semiconductor manufacturing is carried out in Taiwan including in river basins with an 'extremely high' level of baseline water stress according to the WRI Aqueduct tool. Semiconductor manufacturing is a relatively high water intensity activity. A shortage of available water supply and/or water use restrictions, should they be imposed on our contract manufacturing operations in Taiwan, could cause some disruption to production output, particularly during the dry season between December and April.1-3 yearsProbableLowEngagement with suppliers; Supplier diversification; Water management incentivesTo date we have not incurred any additional costs associated with this response strategyThrough our membership of the Electronic Industry Citizenship Coalition, we request that our manufacturing suppliers provide us with data on their water use and water reduction goals. While we have identified a substantive inherent risk associated with manufacturing operations in Taiwan, we consider the residual risk to our business to be low thanks to the efforts that our supplier, TSMC, has taken and continues to take to mitigate the risk. TSMC has developed a contingency plan for flood and drought risk, collaborates with local government agencies and other parties to mitigate water supply risks, and has invested in many water conservation and recycling initiatives. In addition to adopting a minimum process water recycling rate of 85%, TSMC also selects high water efficiency process tools, implements process water drainage segregation and sets up process water reclaim systems in new factory construction. NVIDIA has also qualified a second manufacturing source for our semiconductors, which is located in a different region and serves to mitigate the overall risk level.
62913562NRG Energy IncUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaMississippi RiverPhysical-Seasonal supply variability/Inter annual variabilityTransport disruptionNRG has inherent water risks that have the potential to impact fuel supply. The Mississippi River is used to move coal by barge. NRG has 2 locations that receive coal delivery from barges. Severe flooding or drought can limit or stop barge traffic. The reduced access to the river could impact fuel supply.Current-up to 1 yearProbableLow-mediumDevelop flood emergency plans; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Infrastructure maintenance; Greater due diligence; Supplier diversificationNRG ComOps Managers and a Meteorologist manage risk of fuel delivery. The cost is apportioned to time associated with logistics of barged coal and the meteorologist is $50,000.00 per year of 11,194 million total NRG Business revenues. Fuel delivery risk is minimized by maintaining a 25 day supply; this gives time to react to issues as they arise. NRG Coal Inventory on December 31, 2014 was valued at $414 million and would represent the average daily coal inventory for NRG's generating fleet.NRG has inherent water risks that have the potential to impact fuel supply. NRG's fuel supplied by barge transportation requires constant monitoring of weather and river conditions. NRG has a staff meteorologist to forecast weather; this information is used to create strategies to ensure fuel deliveries. The cost is apportioned to time associated with logistics of barged coal and the meteorologist. To minimize risk NRG must understand the process of moving materials by barge and the risks associated with each river segment. NRG has developed a decision tree of solutions to recognize problems and get ahead of this issue to minimize risk and to maintain electric generation. For example, if fuel is unable to be loaded at the preferred port, it is likely that the fuel can be loaded at another location. If fuel cannot be delivered by barge it can be trucked in. Trucking fuel is more expensive than barge delivery, but the increased demand for electricity would make fuel trucking economically feasible.As part of the risk minimization strategy it is important that NRG understand the demand for barge transportation for other commodities, such as, grain and chemicals. These commodities fluctuate in delivery volumes and can increase delivery time. NRG also minimizes fuel delivery risk by maintaining a 25 day fuel supply; this gives lead time to react to issues as they arise. NRG Coal/Lignite Inventory on December 31, 2014 was valued at $414 million and would represent the average daily coal inventory for NRG's generating fleet.
63013562NRG Energy IncUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaMississippi RiverPhysical-FloodingTransport disruptionNRG has inherent water risks that have the potential to impact fuel supply. The Mississippi River is used to move coal by barge. NRG has 2 locations that receive coal delivery from barges. Severe flooding or drought can limit or stop barge traffic. The reduced access to the river could impact fuel supply.Current-up to 1 yearProbableLow-mediumDevelop flood emergency plans; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Infrastructure maintenance; Greater due diligence; Supplier diversificationNRG ComOps Managers and a Meteorologist manage risk of fuel delivery. The cost is apportioned to time associated with logistics of barged coal and the meteorologist is $50,000.00 per year of 11,194 million total NRG Business revenues. Fuel delivery risk is minimized by maintaining a 25 day supply; this gives time to react to issues as they arise. NRG Coal Inventory on December 31, 2014 was valued at $414 million and would represent the average daily coal inventory for NRG's generating fleet.NRG has inherent water risks that have the potential to impact fuel supply. NRG's fuel supplied by barge transportation requires constant monitoring of weather and river conditions. NRG has a staff meteorologist to forecast weather; this information is used to create strategies to ensure fuel deliveries. The cost is apportioned to time associated with logistics of barged coal and the meteorologist. To minimize risk NRG must understand the process of moving materials by barge and the risks associated with each river segment. NRG has developed a decision tree of solutions to recognize problems and get ahead of this issue to minimize risk and to maintain electric generation. For example, if fuel is unable to be loaded at the preferred port, it is likely that the fuel can be loaded at another location. If fuel cannot be delivered by barge it can be trucked in. Trucking fuel is more expensive than barge delivery, but the increased demand for electricity would make fuel trucking economically feasible.As part of the risk minimization strategy it is important that NRG understand the demand for barge transportation for other commodities, such as, grain and chemicals. These commodities fluctuate in delivery volumes and can increase delivery time. NRG also minimizes fuel delivery risk by maintaining a 25 day fuel supply; this gives lead time to react to issues as they arise. NRG Coal/Lignite Inventory on December 31, 2014 was valued at $414 million and would represent the average daily coal inventory for NRG's generating fleet.
63113562NRG Energy IncUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaMississippi RiverPhysical-DroughtTransport disruptionNRG has inherent water risks that have the potential to impact fuel supply. The Mississippi River is used to move coal by barge. NRG has 2 locations that receive coal delivery from barges. Severe flooding or drought can limit or stop barge traffic. The reduced access to the river could impact fuel supply.Current-up to 1 yearProbableLow-mediumDevelop flood emergency plans; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Infrastructure maintenance; Greater due diligence; Supplier diversificationNRG ComOps Managers and a Meteorologist manage risk of fuel delivery. The cost is apportioned to time associated with logistics of barged coal and the meteorologist is $50,000.00 per year of 11,194 million total NRG Business revenues. Fuel delivery risk is minimized by maintaining a 25 day supply; this gives time to react to issues as they arise. NRG Coal Inventory on December 31, 2014 was valued at $414 million and would represent the average daily coal inventory for NRG's generating fleet.NRG has inherent water risks that have the potential to impact fuel supply. NRG's fuel supplied by barge transportation requires constant monitoring of weather and river conditions. NRG has a staff meteorologist to forecast weather; this information is used to create strategies to ensure fuel deliveries. The cost is apportioned to time associated with logistics of barged coal and the meteorologist. To minimize risk NRG must understand the process of moving materials by barge and the risks associated with each river segment. NRG has developed a decision tree of solutions to recognize problems and get ahead of this issue to minimize risk and to maintain electric generation. For example, if fuel is unable to be loaded at the preferred port, it is likely that the fuel can be loaded at another location. If fuel cannot be delivered by barge it can be trucked in. Trucking fuel is more expensive than barge delivery, but the increased demand for electricity would make fuel trucking economically feasible.As part of the risk minimization strategy it is important that NRG understand the demand for barge transportation for other commodities, such as, grain and chemicals. These commodities fluctuate in delivery volumes and can increase delivery time. NRG also minimizes fuel delivery risk by maintaining a 25 day fuel supply; this gives lead time to react to issues as they arise. NRG Coal/Lignite Inventory on December 31, 2014 was valued at $414 million and would represent the average daily coal inventory for NRG's generating fleet.
63213566NSK Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsChinaLiao HePhysical-Increased water scarcityPlant/production disruption leading to reduced outputWhile the impact is currently not obvious, there is a possibility that the growth will be inhibited by future decreases in production or by a serious shortage in water, etc.4-6 yearsUnlikelyLowSupplier diversificationLowWe decentralize the supplier as much as possible based on the result of the risk assessment, and are decreasing the water risk.
63313566NSK Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsIndiaIndusPhysical-Increased water scarcityPlant/production disruption leading to reduced outputWhile the impact is currently not obvious, there is a possibility that the growth will be inhibited by future decreases in production or by a serious shortage in water, etc.4-6 yearsUnlikelyLowSupplier diversificationLowWe decentralize the supplier as much as possible based on the result of the risk assessment, and are decreasing the water risk.
63413566NSK Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsIndiaGanges-BrahmaputraPhysical-Increased water scarcityPlant/production disruption leading to reduced outputWhile the impact is currently not obvious, there is a possibility that the growth will be inhibited by future decreases in production or by a serious shortage in water, etc.4-6 yearsUnlikelyLowSupplier diversificationLowWe decentralize the supplier as much as possible based on the result of the risk assessment, and are decreasing the water risk.
63513566NSK Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsThailandChao PhrayaPhysical-Increased water scarcityPlant/production disruption leading to reduced outputWhile the impact is currently not obvious, there is a possibility that the growth will be inhibited by future decreases in production or by a serious shortage in water, etc.4-6 yearsUnlikelyLowSupplier diversificationLowWe decentralize the supplier as much as possible based on the result of the risk assessment, and are decreasing the water risk.
63613566NSK Ltd.JapanWater2016PublicElectrical Equipment and MachineryIndustrialsMexicoSantiagoPhysical-Increased water scarcityPlant/production disruption leading to reduced outputWhile the impact is currently not obvious, there is a possibility that the growth will be inhibited by future decreases in production or by a serious shortage in water, etc.4-6 yearsUnlikelyLowSupplier diversificationLowWe decentralize the supplier as much as possible based on the result of the risk assessment, and are decreasing the water risk.
63713889OMRON CorporationJapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyChinaOther: Biliuhe RiverPhysical-Increased water stressFines/ penaltiesDalian City has been promoting the expansion of the middle water use, there is a possibility of going down the administrative guidance to encourage the use of recycled water.1-3 yearsUnlikelyLowSupplier diversification0When the water risk was confirmed by filtering about a local supplier factory in the Dalian neighborhood which is included in a production plant of the 200th piece of supplier purchase amount dominance which is being investigated at present, assessment of current conditions including an interview and advice are putting necessary correspondence into effect.
63813889OMRON CorporationJapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyIndonesiaOther: CitarumPhysical-Increased water stressFines/ penaltiesBecause the spread of waterworks infrastructure is behind schedule, and the river water quality is also bad, it's affected by a waterworks aspect of good hygiene in an area in an area with a problem. Development of ability in administration's effluent treatment facility is planned for at present.1-3 yearsUnlikelyLow0When the water risk was confirmed by filtering about a local supplier factory in the Indonesia Bekasi neighborhood which is included in a production plant of the 200th piece of supplier purchase amount dominance which is being investigated at present, assessment of current conditions including an interview and advice are putting necessary correspondence into effect.
63913909Ono Pharmaceutical Co., Ltd.JapanWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareJapanYodoPhysical-Declining water qualityReduction in revenue????,?????????????????????????????,?????????????,???????????????????????????????>6 yearsProbableMediumIncreased capital expenditure?????????????
64013909Ono Pharmaceutical Co., Ltd.JapanWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareJapanOther: ???Physical-Declining water qualityReduction in revenue????,?????????????????????????????,?????????????,???????????????????????????????>6 yearsProbableMediumIncreased capital expenditure?????????????
64114057Orkla ASANorwayWater2016PublicFood & Beverage ProcessingConsumer Staples
64214275PanAustAustraliaWater2016PublicMining - Iron, Aluminum, Other MetalsMaterialsLaos, People s Democratic Republic ofOther: Nam Mo RiverPhysical-FloodingHigher operating costsThe operations are located in a high rainfall environment. Severe weather can result in damage to infrastructure and road access to the operations.1-3 yearsProbableLow-mediumEngagement with suppliers; Other: Alternative Transport UseThe costs to manage are absorbed within the business.Additional storage of raw materials is maintained onsite ahead of the wet season and a register of alternative providers is maintained for consumables in different geographical regions. Weather forecasting is also undertaken.
64314562Pernod RicardFranceWater2016PublicFood & Beverage ProcessingConsumer Staples
64414605PepsiCo, Inc.USAWater2016PublicFood & Beverage ProcessingConsumer StaplesOther: Company-widePhysical-Increased water stressSupply chain disruptionOur company is dependent on a successful and sustainable agriculture sector. The majority of our raw materials in terms of dollar spend come directly from agriculture, ranging from small-holder farmers in developing and emerging markets to large-scale agribusinesses in developed markets. The importance of water scarcity to our agricultural supply chain is therefore clear and we have already seen the impacts that water scarcity and flooding can have on the reliability and cost of supply.UnknownUnknownUnknownEngagement with suppliersLow-mediumIn this context, we define critical tier 1 suppliers as direct growers/farmers and manufacturers of our products. We use complementary mapping tools to identify our locations most likely to face water scarcity and also to understand which of our key suppliers may likely face water scarcity. Our supply chain water risk initiative with an academic partner uses historic meteorological data to identify specific indicators for climate-induced water risk and to support forecasts for potential water deficits. Following its piloting in 2012, the project’s model correctly predicted 2013 monsoon conditions in two India regions that source our potatoes. The same approach is now being tested in regions with significantly different climates — the United Kingdom and the south-eastern United States. Through our SFI, we are encouraging better water use. For example, one of the indicators is whether “water is applied to provide optimal yield while balancing conservation of aquatic life, rainfall and applied moisture in order to reduce water waste.” In partnership with our British farmers, we aimed to reduce the carbon and water impact of our core crops in the UK by 50% over five years (2011 to 2015). Data for 2015 is not yet available. We have developed tools: Cool Farm Tool to measure Co2e (metrics = Kgs Co2e per tonne raw potato produced) and i-cropTM to measure water (metrics = mm water applied per tonne raw potato produced).
64514678PG&E CorporationUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)Utilities
64614709Koninklijke Philips NVNetherlandsWater2016PublicElectrical Equipment and MachineryIndustrialsChinaOther: Country-widePhysical- Pollution of water sourcePlant/production disruption leading to reduced outputBoth risk of water scarcity and flooding are present in the Philips supply chain. Both events can have a negative impact on the operations of our suppliers and can cause constraints in our operations, disruption of supply and/or expose Philips to possible reputational risk.Current-up to 1 yearProbableMediumEngagement with suppliers; Greater due diligence; Promote best practice and awareness; Supplier diversification; Tighter supplier performance standardsMediumThe exposure of our supply chain to water risk is part of our audit program. Next, our key suppliers are also subject to audits by our Insurance and Risk Management Department, jointly with our insurance providers.Since 2011, Philips’ Supplier Sustainability Office has partnered with the Institute of Public & Environmental Affairs (IPE) in China, who publishes a map of Chinese factories linked to water and air pollution. Philips Group Innovation invested EUR 21 million in Green Innovations, spread over projects focused on global challenges related to water, air, waste, energy, food and access to affordable healthcare.
64714709Koninklijke Philips NVNetherlandsWater2016PublicElectrical Equipment and MachineryIndustrialsChinaOther: Country-widePhysical-Inadequate infrastructurePlant/production disruption leading to reduced outputBoth risk of water scarcity and flooding are present in the Philips supply chain. Both events can have a negative impact on the operations of our suppliers and can cause constraints in our operations, disruption of supply and/or expose Philips to possible reputational risk.Current-up to 1 yearProbableMediumEngagement with suppliers; Greater due diligence; Promote best practice and awareness; Supplier diversification; Tighter supplier performance standardsMediumThe exposure of our supply chain to water risk is part of our audit program. Next, our key suppliers are also subject to audits by our Insurance and Risk Management Department, jointly with our insurance providers.Since 2011, Philips’ Supplier Sustainability Office has partnered with the Institute of Public & Environmental Affairs (IPE) in China, who publishes a map of Chinese factories linked to water and air pollution. Philips Group Innovation invested EUR 21 million in Green Innovations, spread over projects focused on global challenges related to water, air, waste, energy, food and access to affordable healthcare.
64814709Koninklijke Philips NVNetherlandsWater2016PublicElectrical Equipment and MachineryIndustrialsChinaOther: Country-widePhysical-Increased water stressPlant/production disruption leading to reduced outputBoth risk of water scarcity and flooding are present in the Philips supply chain. Both events can have a negative impact on the operations of our suppliers and can cause constraints in our operations, disruption of supply and/or expose Philips to possible reputational risk.Current-up to 1 yearProbableMediumEngagement with suppliers; Greater due diligence; Promote best practice and awareness; Supplier diversification; Tighter supplier performance standardsMediumThe exposure of our supply chain to water risk is part of our audit program. Next, our key suppliers are also subject to audits by our Insurance and Risk Management Department, jointly with our insurance providers.Since 2011, Philips’ Supplier Sustainability Office has partnered with the Institute of Public & Environmental Affairs (IPE) in China, who publishes a map of Chinese factories linked to water and air pollution. Philips Group Innovation invested EUR 21 million in Green Innovations, spread over projects focused on global challenges related to water, air, waste, energy, food and access to affordable healthcare.
64914709Koninklijke Philips NVNetherlandsWater2016PublicElectrical Equipment and MachineryIndustrialsChinaOther: Country-widePhysical-Projected water scarcityPlant/production disruption leading to reduced outputBoth risk of water scarcity and flooding are present in the Philips supply chain. Both events can have a negative impact on the operations of our suppliers and can cause constraints in our operations, disruption of supply and/or expose Philips to possible reputational risk.Current-up to 1 yearProbableMediumEngagement with suppliers; Greater due diligence; Promote best practice and awareness; Supplier diversification; Tighter supplier performance standardsMediumThe exposure of our supply chain to water risk is part of our audit program. Next, our key suppliers are also subject to audits by our Insurance and Risk Management Department, jointly with our insurance providers.Since 2011, Philips’ Supplier Sustainability Office has partnered with the Institute of Public & Environmental Affairs (IPE) in China, who publishes a map of Chinese factories linked to water and air pollution. Philips Group Innovation invested EUR 21 million in Green Innovations, spread over projects focused on global challenges related to water, air, waste, energy, food and access to affordable healthcare.
65014709Koninklijke Philips NVNetherlandsWater2016PublicElectrical Equipment and MachineryIndustrialsChinaOther: Country-wideRegulatory-Regulatory uncertaintyPlant/production disruption leading to reduced outputBoth risk of water scarcity and flooding are present in the Philips supply chain. Both events can have a negative impact on the operations of our suppliers and can cause constraints in our operations, disruption of supply and/or expose Philips to possible reputational risk.Current-up to 1 yearProbableMediumEngagement with suppliers; Greater due diligence; Promote best practice and awareness; Supplier diversification; Tighter supplier performance standardsMediumThe exposure of our supply chain to water risk is part of our audit program. Next, our key suppliers are also subject to audits by our Insurance and Risk Management Department, jointly with our insurance providers.Since 2011, Philips’ Supplier Sustainability Office has partnered with the Institute of Public & Environmental Affairs (IPE) in China, who publishes a map of Chinese factories linked to water and air pollution. Philips Group Innovation invested EUR 21 million in Green Innovations, spread over projects focused on global challenges related to water, air, waste, energy, food and access to affordable healthcare.

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created Sep 18 2017

updated Sep 20 2018

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CDP's water program motivates companies to disclose and reduce their environmental impacts by using the power of investors and customers. The data CDP collects help influential decision makers to reduce risk, capitalize on opportunities and drive action towards a more sustainable world. This dataset comes from question W3.2d 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 supply chain and the strategies to mitigate them.

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