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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
511065Assa AbloySwedenWater2016PublicBuilding ProductsIndustrialsChinaNot knownPhysical-Rationing of municipal water supplyHigher operating costsIf water availability is limited and prices for water increase, the potential impact is that the the prices of the raw materials that ASSA ABLOY uses, e.g. copper and brass, will increase.>6 yearsProbableLowEngagement with suppliersThe cost of the response strategy is not yet evaluated.ASSA ABLOY cannot disclose any further details on strategy and costs.
521069Aspen Pharmacare HoldingsSouth AfricaWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSouth AfricaPongola-Umzimkulu (WMA)Physical-DroughtOther: Production disruption leading to reduced output and higher operating costs.Aspen’s operations rely on a number of agricultural raw materials, for example sugar, maize starch, palm oil and lactose. Sugar is sourced from the east coast of KwaZulu-Natal which is projected to become severely water stressed in the near future. Disruption in supply could impact production and supply chain costs. Example: Droughts in various parts of the country severely affected sugar crops and the by-product of sugar production, molasses, Molasses is used in the synthesis of alcohol and solvents. Sugar, molasses and solvents are key ingredients used in the production of pharmaceutical products. The supplier was forced to obtain supply from an alternative source and this led to an increase in alcohol and solvent pricing. The Draft National Pricing Strategy gazetted by the Department of Water and Sanitation on the 13 November 2015 is also noted in this regard and the implications of this strategy on the business will be assessed and monitored.1-3 yearsHighly probableMediumOther: Development of a group-wide water strategy.To be established.Aspen is considering developing a group wide water strategy which will prioritise raw materials in the supply chain for strategic management.
531085Associated British FoodsUnited KingdomWater2016PublicFood & Beverage ProcessingConsumer StaplesSouth AfricaOther: All basins in which we operate in South AfricaOther: Increased pressure on water supply, drought, revoking of abstraction permits, poor maintenance of irrigation infrastructureOther: Maintained productivityOver half of the cane processed by Illovo is produced by independent outgrowers who vary in size from extensive farms to a few hectares. A drop in sugar cane supply from outgrowers due to increasing drought frequency and intensity or overall water scarcity could significantly impact Illovo's supply chain and consequently Illovo's productivity.4-6 yearsHighly probableHighInfrastructure investmentR240 million - the cost of one year's equivalent replant by outgrowers in South Africa.Maintaining and developing outgrower supply remains a key area of focus for Illovo. Illovo actively engages with their outgrowers on this issue. To alleviate these risks, Illovo has funded water conveyance infrastructure servicing to vulnerable outgrowers to ensure a sustainable sugarcane supply. Outgrowers also benefit from Illovo's support for drought resistant crop development and investment in new technology. A time frame of five years is planned with an expected success of return to normal cane supply.
541113AT&T Inc.USAWater2016PublicTelecommunication ServicesTelecommunication Services
551158AU OptronicsTaiwanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyTaiwanOther: local riverPhysical-Climate changeSupply chain disruptionDrought may result in loss of level of operation from supply chains1-3 yearsHighly probableHighAlignment of public policy positions with water stewardship goals; Engagement with public policy makers; Increased capital expenditure; Increased investment in new technology; New products, markets; Promote best practice and awareness; Supplier diversification; Water management incentivesmaterial and site verification may cost 100-300 millionsecure second source; require current single source having multiple manufacturing sites on different areas
561158AU OptronicsTaiwanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyTaiwanOther: local riverPhysical-DroughtSupply chain disruptionDrought may result in loss of level of operation from supply chains1-3 yearsHighly probableHighAlignment of public policy positions with water stewardship goals; Engagement with public policy makers; Increased capital expenditure; Increased investment in new technology; New products, markets; Promote best practice and awareness; Supplier diversification; Water management incentivesmaterial and site verification may cost 100-300 millionsecure second source; require current single source having multiple manufacturing sites on different areas
571158AU OptronicsTaiwanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyTaiwanOther: local riverPhysical-Increased water stressSupply chain disruptionDrought may result in loss of level of operation from supply chains1-3 yearsHighly probableHighAlignment of public policy positions with water stewardship goals; Engagement with public policy makers; Increased capital expenditure; Increased investment in new technology; New products, markets; Promote best practice and awareness; Supplier diversification; Water management incentivesmaterial and site verification may cost 100-300 millionsecure second source; require current single source having multiple manufacturing sites on different areas
581227Avery Dennison CorporationUSAWater2016PublicContainers & PackagingMaterialsUnited States of AmericaNot knownPhysical-Increased water stressWe use significant amounts of paper in many of our products. We recognize that paper can be a water intensive process. Should water stress increase costs for our paper suppliers, this may result in increased commodity prices for AVY.UnknownUnknownMediumEngagement with suppliers; Greater due diligence; Supplier diversificationCosts are limited for this response. Preliminary evaluation of supplier risk may cost approximately $25K with third party experts. Supplier engagement and diversification has no additional cost as these are part of our standard business practice.AVY intends to evaluate paper supplier water risks more thoroughly, identifying high risk suppliers and the nature of the risk (scarcity, flooding, water availability, etc.). We then intend to engage suppliers to identify measures for water management/risk mitigation. Where risk mitigation is insufficient we intend a parallel strategy of supplier diversification. The timeline for our evaluation is 24-36 months, with supplier engagement initiating during and following that effort. We derived our cost estimate with third party assistance. Based on previous experience with supplier engagement we anticipate this strategy will be successful in preventing operational or financial impacts.
592135Braskem S/ABrazilWater2016PublicChemicalsMaterialsBrazilOther: Hydrographic Basin 2 - "High Tietê"Physical-DroughtSupply chain disruptionIncreased operating costs and disruption of supply of raw material.>6 yearsProbableMediumEngagement with public policy makers; Engagement with suppliersR$105000Engagement through CDP Supply Chain program for management of opportunities and risks.
601452Bank of AmericaUSAWater2016PublicBanks, Diverse Financials, InsuranceFinancialsRest of worldOther: GlobalPhysical-FloodingSupply chain disruptionPotential flooding impacts at our suppliers’ facilities is the main water-related physical risk to our supply chain. The potential for flooding represents a real and serious risk to the operations of our suppliers. Extreme flooding, such as that in Thailand in 2011, has the potential to impact the supply of materials to our business operations teams.Current-up to 1 yearUnlikelyLow-mediumOther: Disaster preparednessThis activity is a routine part of our business and thus has no incremental cost ($0).We have completed an assessment to identify supplier categories at highest risk from flooding. We have also developed detailed disaster recovery plans for suppliers in high risk categories. If flooding were to occur at a supplier facility, there is a documented plan to move the work to an alternate site. This activity is a routine part of our business and thus has no incremental cost ($0). We plan to expand this analysis to include more vendors in the future.
611536Barrick Gold CorporationCanadaWater2016PublicMaterialsChileOther: Rio de EstrechoRegulatory-Statutory water withdrawal limits/changes to water allocationHigher operating costsSuppliers could be subjected to water permitting restrictions. As a result, some of our suppliers could risk competitive and physical positioning changes due to regulatory risks. Regulatory risks could affect the pricing of supplier commodities. These costs would be passed on to Barrick and could increase operating costs at the sites. As well, costs would be incurred through changing suppliers, if required.UnknownUnknownUnknownEngagement with community; Greater due diligenceBarrick has one significant commodity supply point in a water stressed area in Chile. This is backed up by redundant supply points in Chile and elsewhere in the globe. Frequent competitive and operational planning reviews of major and critical supplies and supply chains provide warning of pending water stress related regulatory and cost situations. This allows various options for supply continuity planning to take place before the situation becomes urgent. Costs include minimal increase for staff time to implement logistics of response strategy.
621536Barrick Gold CorporationCanadaWater2016PublicMaterialsChileOther: Rio de EstrechoRegulatory-Higher water pricesHigher operating costsSuppliers could be subjected to water permitting restrictions. As a result, some of our suppliers could risk competitive and physical positioning changes due to regulatory risks. Regulatory risks could affect the pricing of supplier commodities. These costs would be passed on to Barrick and could increase operating costs at the sites. As well, costs would be incurred through changing suppliers, if required.UnknownUnknownUnknownEngagement with community; Greater due diligenceBarrick has one significant commodity supply point in a water stressed area in Chile. This is backed up by redundant supply points in Chile and elsewhere in the globe. Frequent competitive and operational planning reviews of major and critical supplies and supply chains provide warning of pending water stress related regulatory and cost situations. This allows various options for supply continuity planning to take place before the situation becomes urgent. Costs include minimal increase for staff time to implement logistics of response strategy.
631536Barrick Gold CorporationCanadaWater2016PublicMaterialsChileOther: Rio de EstrechoRegulatory-Increased difficulty in obtaining withdrawals/operations permitHigher operating costsSuppliers could be subjected to water permitting restrictions. As a result, some of our suppliers could risk competitive and physical positioning changes due to regulatory risks. Regulatory risks could affect the pricing of supplier commodities. These costs would be passed on to Barrick and could increase operating costs at the sites. As well, costs would be incurred through changing suppliers, if required.UnknownUnknownUnknownEngagement with community; Greater due diligenceBarrick has one significant commodity supply point in a water stressed area in Chile. This is backed up by redundant supply points in Chile and elsewhere in the globe. Frequent competitive and operational planning reviews of major and critical supplies and supply chains provide warning of pending water stress related regulatory and cost situations. This allows various options for supply continuity planning to take place before the situation becomes urgent. Costs include minimal increase for staff time to implement logistics of response strategy.
641536Barrick Gold CorporationCanadaWater2016PublicMaterialsChileOther: Rio de EstrechoRegulatory-Regulatory uncertaintyHigher operating costsSuppliers could be subjected to water permitting restrictions. As a result, some of our suppliers could risk competitive and physical positioning changes due to regulatory risks. Regulatory risks could affect the pricing of supplier commodities. These costs would be passed on to Barrick and could increase operating costs at the sites. As well, costs would be incurred through changing suppliers, if required.UnknownUnknownUnknownEngagement with community; Greater due diligenceBarrick has one significant commodity supply point in a water stressed area in Chile. This is backed up by redundant supply points in Chile and elsewhere in the globe. Frequent competitive and operational planning reviews of major and critical supplies and supply chains provide warning of pending water stress related regulatory and cost situations. This allows various options for supply continuity planning to take place before the situation becomes urgent. Costs include minimal increase for staff time to implement logistics of response strategy.
651536Barrick Gold CorporationCanadaWater2016PublicMaterialsChileOther: Rio de EstrechoRegulatory-Regulation of discharge quality/volumes leading to higher compliance costsHigher operating costsSuppliers could be subjected to water permitting restrictions. As a result, some of our suppliers could risk competitive and physical positioning changes due to regulatory risks. Regulatory risks could affect the pricing of supplier commodities. These costs would be passed on to Barrick and could increase operating costs at the sites. As well, costs would be incurred through changing suppliers, if required.UnknownUnknownUnknownEngagement with community; Greater due diligenceBarrick has one significant commodity supply point in a water stressed area in Chile. This is backed up by redundant supply points in Chile and elsewhere in the globe. Frequent competitive and operational planning reviews of major and critical supplies and supply chains provide warning of pending water stress related regulatory and cost situations. This allows various options for supply continuity planning to take place before the situation becomes urgent. Costs include minimal increase for staff time to implement logistics of response strategy.
661536Barrick Gold CorporationCanadaWater2016PublicMaterialsChileOther: Rio de EstrechoRegulatory-Unclear and/or unstable regulations on water allocation and wastewater dischargeHigher operating costsSuppliers could be subjected to water permitting restrictions. As a result, some of our suppliers could risk competitive and physical positioning changes due to regulatory risks. Regulatory risks could affect the pricing of supplier commodities. These costs would be passed on to Barrick and could increase operating costs at the sites. As well, costs would be incurred through changing suppliers, if required.UnknownUnknownUnknownEngagement with community; Greater due diligenceBarrick has one significant commodity supply point in a water stressed area in Chile. This is backed up by redundant supply points in Chile and elsewhere in the globe. Frequent competitive and operational planning reviews of major and critical supplies and supply chains provide warning of pending water stress related regulatory and cost situations. This allows various options for supply continuity planning to take place before the situation becomes urgent. Costs include minimal increase for staff time to implement logistics of response strategy.
671581Bayer AGGermanyWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareGermanyOther: The risk driver reported in this row may mainly apply to suppliers in developing countries but this could also affect Bayer's headquarter and sites in Germany and elsewhere. Listing this risk for each river basin separately would result in a vast amount of redundant information. To ensure the readability of the report, we have decided to group the information here.Reputational-Negative media coverageConstraint to growthEXPLANATION: Low enforcement of wastewater standards for pharmaceutical or chemical suppliers especially in developing countries could potentially lead to incidences of increased respective concentrations in environmental water bodies and potentially in drinking water. If such topics are picked up by media or NGOs in industrialized countries, certain reputational risk exists for the entire industry, including Bayer.>6 yearsUnlikelyLowEngagement with suppliers; Tighter supplier performance standardsIn 2015 we spend more than USD 25,000 for membership fees for supplier initiatives and about EUR 100,000 in initiatives related to the engagement with suppliers and their assessment and audits in relation to sustainability topics, including water.DETAILS of RESPONSE STRATEGY: Our Supplier Code of Conduct is the main strategy to protect us against sustainability related supplier risks, e.g. it contains aspects related to water management and responsible water use. It is the basis for supplier selection, evaluation processes, supplier online assessments and on-site audits. Through partnerships, we further drive those topics. DERIVATION OF COST ESTIMATE: In 2015, supplier evaluation was conducted by a leading web-based service platform (EcoVadis) for sustainability performance monitoring. Besides, the main initiatives in which we foster the engagement with suppliers and their assessment in relation to sustainability topics are “Together for Sustainability” and the “Pharmaceutical Supply Chain Initiative”. To estimate the reported costs we summed up the membership fees for these two initiatives and the use of EcoVadis.
681581Bayer AGGermanyWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareUnited States of AmericaTrinity River (Texas)Physical-FloodingOther: Constraint to future growthEXPLANATION: Flooding from hurricanes/ tropical storms will always be a concern. These events could affect several industries, including customers and suppliers of Bayer.Current-up to 1 yearProbableMedium-highSupplier diversificationThere are no extra costs for our response strategy.DETAILS of RESPONSE STRATEGY: Bayer mitigates supply chain risks by diversifying the supplier base and is therefore reducing the dependency on a few selected suppliers. There are only few cases where Bayer relies on a single source of supply. It is highly unlikely that two independent suppliers are adversely affected at the same time. DERIVATION OF COST ESTIMATE: There are no extra costs for our response strategy.
691581Bayer AGGermanyWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareBrazilOther: GHAASBasin3457Physical-Increased water stressSupply chain disruptionEXPLANATION: Our raw material suppliers are located in many different states in Brazil and abroad. The probability of a significant impact from floods or severe water scarcity is currently low. Nevertheless, we recognize the risks that could result from major disruption to the business operations of one of our key suppliers and to the transportation and distribution infrastructure, as key raw materials are supplied via road freight.>6 yearsUnlikelyLowSupplier diversificationThere are no extra costs for our response strategy.DETAILS of RESPONSE STRATEGY: Bayer mitigates supply chain risks by diversifying the supplier base and is therefore reducing the dependency on a few selected suppliers. There are only few cases where Bayer relies on a single source of supply. It is highly unlikely that two independent suppliers are adversely affected at the same time. DERIVATION OF COST ESTIMATE: There are no extra costs for our response strategy.
701581Bayer AGGermanyWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareBrazilOther: GHAASBasin3457Physical-FloodingSupply chain disruptionEXPLANATION: Our raw material suppliers are located in many different states in Brazil and abroad. The probability of a significant impact from floods or severe water scarcity is currently low. Nevertheless, we recognize the risks that could result from major disruption to the business operations of one of our key suppliers and to the transportation and distribution infrastructure, as key raw materials are supplied via road freight.>6 yearsUnlikelyLowSupplier diversificationThere are no extra costs for our response strategy.DETAILS of RESPONSE STRATEGY: Bayer mitigates supply chain risks by diversifying the supplier base and is therefore reducing the dependency on a few selected suppliers. There are only few cases where Bayer relies on a single source of supply. It is highly unlikely that two independent suppliers are adversely affected at the same time. DERIVATION OF COST ESTIMATE: There are no extra costs for our response strategy.
711581Bayer AGGermanyWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareChinaOther: Hai HoRegulatory-Regulation of discharge quality/volumes leading to higher compliance costsPlant/production disruption leading to reduced outputEXPLANATION: To our suppliers located all round China the same Chinese water laws and regulations apply. The most important thing we consider as water risk at our site at Beijing is wastewater discharge. If the supplier wastewater discharge exceed regulation limit, the supplier will face temporary shutdown of production as punishment.>6 yearsUnknownLowSupplier diversificationThere are no extra costs for our response strategyDETAILS OF RESPONSE STRATEGY: Alternative suppliers are available for key raw materials. Bayer mitigates supply chain risks by diversifying the supplier base, therefore reducing the dependency on a few selected suppliers. There are only few cases where Bayer relies on a single source of supply. It is highly unlikely that two independent suppliers are adversely affected at the same time.DERIVATION OF COST ESTIMATE: There are no extra costs for our response strategy.
7257963Birla CarbonUSAWater2016PublicChemicalsMaterialsEgyptNilePhysical-Seasonal supply variability/Inter annual variabilitySupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
732135Braskem S/ABrazilWater2016PublicChemicalsMaterialsBrazilOther: Guandu Basin (Rio de Janeiro)Physical-Increased water scarcitySupply chain disruptionIncreased operating costs and disruption of supply of raw material.>6 yearsProbableMediumEngagement with public policy makers; Engagement with suppliersR$105000Engagement through CDP Supply Chain program for management of opportunities and risks.
742191Bristol-Myers SquibbUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareWe have not completed a country or water basing analysis of these risks at this time.
752269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesPakistanIndusPhysical-DroughtPlant/production disruption leading to reduced outputIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityApproximately £50,000.We continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
762269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesPakistanIndusPhysical-Projected water scarcityPlant/production disruption leading to reduced outputIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityApproximately £50,000.We continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
772269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesBangladeshGalanaPhysical-Projected water scarcityPlant/production disruption leading to reduced outputIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityApproximately £50,000.We continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
782269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesBangladeshGalanaPhysical-DroughtPlant/production disruption leading to reduced outputIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityApproximately £50,000.We continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
792354Brown-Forman CorporationUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaNot knownPhysical-DroughtSupply chain disruptionWeather, the effects of climate change, and other agricultural uncertainties can disrupt our supply chain, which may affect production operations, insurance costs and coverage, as well as the timely delivery of our productsto customers.UnknownProbableMedium
8057963Birla CarbonUSAWater2016PublicChemicalsMaterialsChinaOther: Bailang River and Dailiao RiverPhysical-Seasonal supply variability/Inter annual variabilitySupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
812269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesIndiaIndusPhysical-Increased water scarcitySupply chain disruptionIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityUnknownWe continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
822269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesIndiaIndusPhysical-DroughtSupply chain disruptionIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityUnknownWe continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
832269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesMozambiqueNot knownPhysical-Projected water scarcitySupply chain disruptionIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityUnknownWe continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
842269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesMozambiqueNot knownPhysical-DroughtSupply chain disruptionIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityUnknownWe continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
852269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesTurkeyNot knownPhysical-Projected water scarcityPlant/production disruption leading to reduced outputIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityApproximately £50,000.We continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
8657963Birla CarbonUSAWater2016PublicChemicalsMaterialsChinaOther: Bailang River and Dailiao RiverReputational-Inadequate access to water, sanitation and hygieneSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
872269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesTurkeyNot knownPhysical-DroughtPlant/production disruption leading to reduced outputIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowEngagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityApproximately £50,000.We continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
882269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesZimbabweNot knownPhysical-Projected water scarcitySupply chain disruptionIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityUnknownWe continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
892269British American TobaccoUnited KingdomWater2016PublicTobaccoConsumer StaplesZimbabweNot knownPhysical-DroughtSupply chain disruptionIn terms of our supply chain, we will also consider water risk in our strategic leaf growing regions. Impacts may be in terms of leaf quality & quantity of leaf, with consequence to the wider business in terms of manufacturing/product quality. These water security risks are currently being assessed, initially in terms of likelihood of occurrence, and subsequently in terms of the consequence of any impact to our business.UnknownUnknownLowAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with other stakeholders in the river basin; Engagement with suppliers; Promote best practice and awareness; Strengthen links with local communityUnknownWe continue to engage with a broad range of stakeholders to better understand water related risks that exist within our supply chains, specifically using the data provided by the Social Responsibility in Tobacco Production (SRTP). Our focus on Sustainable Farmer Livelihoods ensures we take into account the sustainable management of the natural resources (including water resources) on which our farmers depend, in an holistic manner. This is especially important today when we are facing more and more challenges in agriculture including the increasing demand for land and natural resources.
902335Brother Industries, Ltd.JapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyChinaHuang He (Yellow River)Physical-Increased water scarcityPlant/production disruption leading to reduced outputThe impact might occur in the operation of supplier's production plant and the shortage of parts supply if the reduction in intake due to the severe shortage of water is generated, and being expected the decrease volume in production.1-3 yearsUnlikelyLow-mediumEngagement with public policy makers; Engagement with suppliersCosts for a response strategy are under review because the methodology measures to reduce the water intake limits are undetermined.We are scheduling meetings with appropriate personnel with administrative responsibility for this area to better understand the possibility to reduce intake levels and the best methods to execute restrictions while determining costs.
912335Brother Industries, Ltd.JapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyChinaHuang He (Yellow River)Physical-Declining water qualityPlant/production disruption leading to reduced outputThe impact might occur in the operation of supplier's production plant and the shortage of parts supply if the reduction in intake due to the severe shortage of water is generated, and being expected the decrease volume in production.1-3 yearsUnlikelyLow-mediumEngagement with public policy makers; Engagement with suppliersCosts for a response strategy are under review because the methodology measures to reduce the water intake limits are undetermined.We are scheduling meetings with appropriate personnel with administrative responsibility for this area to better understand the possibility to reduce intake levels and the best methods to execute restrictions while determining costs.
922354Brown-Forman CorporationUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaNot knownPhysical-Increased water scarcitySupply chain disruptionWeather, the effects of climate change, and other agricultural uncertainties can disrupt our supply chain, which may affect production operations, insurance costs and coverage, as well as the timely delivery of our productsto customers.UnknownProbableMedium
932354Brown-Forman CorporationUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaNot knownPhysical-Seasonal supply variability/Inter annual variabilitySupply chain disruptionWeather, the effects of climate change, and other agricultural uncertainties can disrupt our supply chain, which may affect production operations, insurance costs and coverage, as well as the timely delivery of our productsto customers.UnknownProbableMedium
942354Brown-Forman CorporationUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaNot knownPhysical-FloodingSupply chain disruptionWeather, the effects of climate change, and other agricultural uncertainties can disrupt our supply chain, which may affect production operations, insurance costs and coverage, as well as the timely delivery of our productsto customers.UnknownProbableMedium
952354Brown-Forman CorporationUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaNot knownSupply chain disruptionAs water is one of the major components of our products, the quality and quantity of the water available for use is important to our ability to operate our business. If hydrologic cycle patterns change, and droughts become more common or severe, or if the water supply were interrupted for other reasons, there might be a scarcity of desirable water in some of the key production regions for our products, including Tennessee, Kentucky, Finland, Mexico, and California.UnknownProbableMediumEngagement with suppliersCosts of response strategy is equivalent to 1 FTE to implement this aspect of the program.In evaluating its 50 largest suppliers, Brown Forman Tequila Mexico looks to mitigate supply chain disruption resulting from commodity and price variability. Suppliers are evaluated for raw materials, packaging materials, inputs, etc.
962354Brown-Forman CorporationUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesMexicoSantiagoSupply chain disruptionAs water is one of the major components of our products, the quality and quantity of the water available for use is important to our ability to operate our business. If hydrologic cycle patterns change, and droughts become more common or severe, or if the water supply were interrupted for other reasons, there might be a scarcity of desirable water in some of the key production regions for our products, including Tennessee, Kentucky, Finland, Mexico, and California.UnknownProbableMediumEngagement with suppliersCosts of response strategy is equivalent to 1 FTE to implement this aspect of the program.In evaluating its 50 largest suppliers, Brown Forman Tequila Mexico looks to mitigate supply chain disruption resulting from commodity and price variability. Suppliers are evaluated for raw materials, packaging materials, inputs, etc.
972354Brown-Forman CorporationUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesFinlandNot knownSupply chain disruptionAs water is one of the major components of our products, the quality and quantity of the water available for use is important to our ability to operate our business. If hydrologic cycle patterns change, and droughts become more common or severe, or if the water supply were interrupted for other reasons, there might be a scarcity of desirable water in some of the key production regions for our products, including Tennessee, Kentucky, Finland, Mexico, and California.UnknownProbableMedium
982414Burberry GroupUnited KingdomWater2016PublicTextiles, Apparel, Footwear and Luxury GoodsConsumer DiscretionaryChinaOther: VariousPhysical-Increased water stressSupply chain disruptionKey supply chain wet processing takes place in this river basin. According to the WWF Water Risk Filter, these sites are exposed to potential water risk driven by water scarcity and pollution.A reduction in the availability of quality water for these sites could increase lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce the profit margin for key product ranges. Water pollution could also affect Burberry through increased water treatment costs. Furthermore, Burberry could experience reputation damage and community opposition if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities in this river basin. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain. Burberry is committed to support these livelihoods and to help local communities thrive and become more resilient. There are many potential impacts including reputational damage, and regulatory risk but these have been summarised by 'supply chain disruption'.4-6 yearsProbableLow-mediumEngagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Greater due diligence; Increased capital expenditure; Increased investment in new technology; Promote best practice and awareness; Supplier diversification; Tighter supplier performance standards; Water management incentivesThis is very difficult for Burberry to estimate.Burberry has implemented a programme working closely with the Natural Resource Defense Council's Clean By Design programme to reduce water and energy consumption at key supply chain partner facilities.This programme assesses site level water and energy efficiency and identifies opportunities to reduce water and energy consumption. 180 opportunities have been identified through 60 site visits so far. Burberry also enrols key supply chain partners on the Higg Index that scores facilities on their management of energy, water, air emissions, waste water and chemicals. This incentivises progress by identifying opportunities and publicly benchmarking performance. Burberry also researches new innovations that reduce water consumption e.g. water-less dyeing or new tanning processes or technologies. In terms of tanneries, Burberry encourages tanneries to be audited by the Leather Working Group which helps to promote best practice in energy, water and chemical management. Burberry also engages with key tanneries directly to gather quantitative consumption data, and to support them in implementing improvements. Burberry also performs regular effluent testing on key suppliers' raw waste water to evaluate the presence of certain chemicals that could have an in impact on the environment. This will help supply chain partners to identify the presence of chemicals of concern, and target their inventory appropriately. In turn, this will reduce supply chain partners' vulnerability to changes in wastewater and chemical regulation. This will also reduce Burberry's exposure to reputation risk associated with water pollution. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges.
992414Burberry GroupUnited KingdomWater2016PublicTextiles, Apparel, Footwear and Luxury GoodsConsumer DiscretionaryChinaOther: VariousPhysical-Projected water stressSupply chain disruptionKey supply chain wet processing takes place in this river basin. According to the WWF Water Risk Filter, these sites are exposed to potential water risk driven by water scarcity and pollution.A reduction in the availability of quality water for these sites could increase lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce the profit margin for key product ranges. Water pollution could also affect Burberry through increased water treatment costs. Furthermore, Burberry could experience reputation damage and community opposition if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities in this river basin. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain. Burberry is committed to support these livelihoods and to help local communities thrive and become more resilient. There are many potential impacts including reputational damage, and regulatory risk but these have been summarised by 'supply chain disruption'.4-6 yearsProbableLow-mediumEngagement with suppliers; Establish site-specific targets; Infrastructure investment; Infrastructure maintenance; Greater due diligence; Increased capital expenditure; Increased investment in new technology; Promote best practice and awareness; Supplier diversification; Tighter supplier performance standards; Water management incentivesThis is very difficult for Burberry to estimate.Burberry has implemented a programme working closely with the Natural Resource Defense Council's Clean By Design programme to reduce water and energy consumption at key supply chain partner facilities.This programme assesses site level water and energy efficiency and identifies opportunities to reduce water and energy consumption. 180 opportunities have been identified through 60 site visits so far. Burberry also enrols key supply chain partners on the Higg Index that scores facilities on their management of energy, water, air emissions, waste water and chemicals. This incentivises progress by identifying opportunities and publicly benchmarking performance. Burberry also researches new innovations that reduce water consumption e.g. water-less dyeing or new tanning processes or technologies. In terms of tanneries, Burberry encourages tanneries to be audited by the Leather Working Group which helps to promote best practice in energy, water and chemical management. Burberry also engages with key tanneries directly to gather quantitative consumption data, and to support them in implementing improvements. Burberry also performs regular effluent testing on key suppliers' raw waste water to evaluate the presence of certain chemicals that could have an in impact on the environment. This will help supply chain partners to identify the presence of chemicals of concern, and target their inventory appropriately. In turn, this will reduce supply chain partners' vulnerability to changes in wastewater and chemical regulation. This will also reduce Burberry's exposure to reputation risk associated with water pollution. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges.
1002611Campbell Soup CompanyUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaOther: CubPhysical-Rationing of municipal water supplyPlant/production disruption leading to reduced outputThe water risk in this area of Utah could potentially affect production capabilities in the future.4-6 yearsUnlikelyMediumEngagement with other stakeholders in the river basin; Re-siting of facilitiesUnknown, but likely in the millions.We need to complete additional analysis to verify the risk potential and identify probable scenarios in the near term.

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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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