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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
100137113OMNIA HOLDINGS LTDSouth AfricaWater2016PublicChemicalsMaterialsSouth AfricaSOUTH AFRICAN WATER MANAGEMENT AREAS (WMAs)Physical-Climate changeReduction in revenueThree significant climate trends have recently been observed 1. the average temperature is increasing; 2 the average number of days with a high dew point appears to be increasing; and3. the character of precipitation is changing. These changing weather patterns will impact crop production in four primary ways. Firstly, the long-term changes in average temperatures and precipitation patterns may affect the types of crops cultivated in specific areas. Secondly, these changes can lead to an increase in pests and invasive species. Acute losses can also be expected from more frequent and intense weather extremes, such as floods and droughts. Lastly, the impacts of runoff, soil erosion and reduced infiltration from the increased intensity of storm events can negatively affect crop production. These impacts are likely to place additional cost pressures on farmers who in turn may not purchase our Fertlizer, leading to a reduction in sales.Current-up to 1 yearProbableMedium-highIncreased investment in new technology; New products, marketsThe Nutriology® programme is part of the way that the Fertilizer division operates. The Fertilizer division is the largest of the three Omnia divisions and the operational costs are significant. These, however, cannot be disclosed publically.The Agriculture division, through its Omnia Nutriology® model, has a full plan to support the pillars of modern, sustainable agriculture. This entails the use of a large team of agronomic specialists supported by competent technological services. This division, among other things: - Invests in programmes that enhance nutrient and water use efficiency.- Advises on good farming practices to conserve water and prevent soil erosion.- Develops and deploys new agronomic techniques and fertilizer products that help increase crop yields.This strategy has already been implemented and is yielding benefits through assisting farmers to reduce their water use and costs and creating revenue and employment opportunities for staff at Omnia.
100237113OMNIA HOLDINGS LTDSouth AfricaWater2016PublicChemicalsMaterialsSouth AfricaSOUTH AFRICAN WATER MANAGEMENT AREAS (WMAs)Physical-Increased water scarcityReduction in revenueThree significant climate trends have recently been observed 1. the average temperature is increasing; 2 the average number of days with a high dew point appears to be increasing; and3. the character of precipitation is changing. These changing weather patterns will impact crop production in four primary ways. Firstly, the long-term changes in average temperatures and precipitation patterns may affect the types of crops cultivated in specific areas. Secondly, these changes can lead to an increase in pests and invasive species. Acute losses can also be expected from more frequent and intense weather extremes, such as floods and droughts. Lastly, the impacts of runoff, soil erosion and reduced infiltration from the increased intensity of storm events can negatively affect crop production. These impacts are likely to place additional cost pressures on farmers who in turn may not purchase our Fertlizer, leading to a reduction in sales.Current-up to 1 yearProbableMedium-highIncreased investment in new technology; New products, marketsThe Nutriology® programme is part of the way that the Fertilizer division operates. The Fertilizer division is the largest of the three Omnia divisions and the operational costs are significant. These, however, cannot be disclosed publically.The Agriculture division, through its Omnia Nutriology® model, has a full plan to support the pillars of modern, sustainable agriculture. This entails the use of a large team of agronomic specialists supported by competent technological services. This division, among other things: - Invests in programmes that enhance nutrient and water use efficiency.- Advises on good farming practices to conserve water and prevent soil erosion.- Develops and deploys new agronomic techniques and fertilizer products that help increase crop yields.This strategy has already been implemented and is yielding benefits through assisting farmers to reduce their water use and costs and creating revenue and employment opportunities for staff at Omnia.
100342037Mondelez International IncUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesNot knownIn our 10K Annual Report risk factors, we report that, among other risks, severe weather, the potential longer-term consequences of climate change on agricultural productivity, water risk and changes in governmental agricultural programs may influence the price of commodities. We also note that many of our commodities are grown by smallholder farmers who might lack the capacity to invest to increase productivity or adapt to changing conditions. If we are not successful in our mitigation activities, if we are unable to price to cover increased costs or must reduce our prices, or if we are limited by supply constraints, our financial condition and results of operations could be materially adversely affected.Other: Transforming our agricultural supply chains is an essential foundation for a sustainable future. We've launched innovative, industry leading holistic programs in key commodities like cocoa and wheat. Cocoa Life: 10 year, $400 million investment, empowering more than 200,000 farmers and improving the lives of more than 1 million people. Harmony: our European wheat program, Harmony, promotes biodiversity and good environmental practices in wheat production. Beyond this, as the foundation for all our work in sustainable agriculture, we're embedding sustainability into our sourcing practices across our commodities.At least $400 million. That is the amount committed over 10 years to agricultural signature program Cocoa Life.
100457963Birla CarbonUSAWater2016PublicChemicalsMaterialsChinaOther: Bailang River and Dailiao RiverPhysical-Increased water stressSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
100557963Birla CarbonUSAWater2016PublicChemicalsMaterialsChinaOther: Bailang River and Dailiao RiverPhysical-FloodingSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
100645103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Physical-Climate changeSupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
100745103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Physical-Projected water scarcitySupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
100845103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Reputational-Inadequate access to water, sanitation and hygieneSupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
100945103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Physical-Inadequate infrastructureSupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
101045103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Physical-Increased water stressSupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
101157963Birla CarbonUSAWater2016PublicChemicalsMaterialsEgyptNilePhysical-FloodingSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
101245103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Physical-DroughtSupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
101345103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Physical-Increased water scarcitySupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
101445103AbbVie IncUSAWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareSingaporeOther: AHAASBasin1591Physical-Projected water stressSupply chain disruptionInability to receive product inputs/raw materials from local suppliers. Inability to have products made by contracted third-party manufacturers. Loss of business, revenues, growth. Alternates for the above would need to be identified and contracted - some of which is in place already.>6 yearsUnlikelyMedium-highAlignment of public policy positions with water stewardship goals; Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Infrastructure investment; Infrastructure maintenance; Increased investment in new technology; Promote best practice and awareness; Supplier diversification60,000-100,000 Singapore dollars (fluctuated by foreign exchange rates with US Dollar).Establishing regionally diversified supplier and third-party manufacturing networks are partially in place for such substitutes. Cost of switching suppliers carries less immediate cost compared to shifting internal manufacturing site/capabilities.Details of Singapore dollar cost estimates & summary strategic activities: Supplier diversification (30,000); Infrastructure & new technology investment (60,000); External engagement (5,000).
101547918Mahindra Lifespace Developers LimitedIndiaWater2016PublicReal EstateFinancialsIndiaGanges-BrahmaputraPhysical-Climate changeSupply chain disruptionRaw material supply viz. Cement Steel, aggregates. Etc. which have their source from the region near Ganges may affected due to rise in water levels due to climate change.The scarcity of basic construction materials could escalate cost and reduce qualityThe supply chain could get disrupt since there shall be a need to change the suppliers for different materials>6 yearsUnlikelyLowEngagement with suppliers; New products, markets; Supplier diversificationThe investment could be upto 5% of total investment on sustainability initiativesThe strategy adopted is as follows:1) Annual Suppliers meeting is held to continuously review the suppliers performance.2) Raw material source chcking is done by the procurement team to analyze the future risk.3) Developing contacts with alternate suppliers.
101654599TÜMOSAN MOTOR VE TRAKTÖR SANAYI A.S.TurkeyWater2016PublicElectrical Equipment and MachineryIndustrialsTurkeyKizilirmakPhysical- Pollution of water sourceHigher operating costsclimatisation of plants4-6 yearsUnlikelyLow-mediumEngagement with community; Engagement with public policy makersuknownaa
101754599TÜMOSAN MOTOR VE TRAKTÖR SANAYI A.S.TurkeyWater2016PublicElectrical Equipment and MachineryIndustrialsTurkeyKizilirmakPhysical-Climate changeHigher operating costsclimatisation of plants4-6 yearsUnlikelyLow-mediumEngagement with community; Engagement with public policy makersuknownaa
101857487TANAX, INC.JapanWater2016PublicContainers & PackagingMaterials
101957963Birla CarbonUSAWater2016PublicChemicalsMaterialsIndiaOther: Ganges, Cauvery and PatalgangaPhysical-FloodingSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102057963Birla CarbonUSAWater2016PublicChemicalsMaterialsIndiaOther: Ganges, Cauvery and PatalgangaPhysical-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
102157963Birla CarbonUSAWater2016PublicChemicalsMaterialsUnited States of AmericaMississippi RiverRegulatory-Increased difficulty in obtaining withdrawals/operations permitSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102257963Birla CarbonUSAWater2016PublicChemicalsMaterialsCanadaSt. LawrencePhysical-FloodingSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102357963Birla CarbonUSAWater2016PublicChemicalsMaterialsCanadaSt. LawrenceRegulatory-Regulation of discharge quality/volumes leading to higher compliance costsSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102457963Birla CarbonUSAWater2016PublicChemicalsMaterialsCanadaSt. LawrenceRegulatory-Increased difficulty in obtaining withdrawals/operations permitSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102557963Birla CarbonUSAWater2016PublicChemicalsMaterialsBrazilOther: Perdido RiverPhysical-DroughtSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102657963Birla CarbonUSAWater2016PublicChemicalsMaterialsBrazilOther: Perdido RiverPhysical-Projected water stressSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102757963Birla CarbonUSAWater2016PublicChemicalsMaterialsBrazilOther: Perdido RiverPhysical-FloodingSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
102857963Birla CarbonUSAWater2016PublicChemicalsMaterialsBrazilOther: Perdido 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
102958298South32AustraliaWater2016PublicMining - Iron, Aluminum, Other MetalsMaterialsAustraliaOther: Tamar RiverPhysical-Dependency on hydropowerDisruption to salesAs TEMCO relies on hydropower, there is a risk that our energy supply will be reduced through periods of low rainfall or inappropriate water management1-3 yearsUnlikelyLowThe potential costs of the response strategy would be directly related to the volume of hydropower loss.South32 engages with our energy suppliers on an ongoing basis. In the case of TEMCO, if hydropower is unavailable, there is the contingency of the Bass-link cable for power from mainland Australia. This risk is realised if the Basslink cable is non-operational. Where there is the risk this occurring, we would work with the suppliers to reach a reduction agreement in conjunction with other impacted businesses and communities.
103058298South32AustraliaWater2016PublicMining - Iron, Aluminum, Other MetalsMaterialsAustraliaOther: Tamar RiverPhysical-Dependency on hydropowerPlant/production disruption leading to reduced outputAs TEMCO relies on hydropower, there is a risk that our energy supply will be reduced through periods of low rainfall or inappropriate water management1-3 yearsUnlikelyLowEngagement with suppliersThe potential costs of the response strategy would be directly related to the volume of hydropower loss.South32 engages with our energy suppliers on an ongoing basis. In the case of TEMCO, if hydropower is unavailable, there is the contingency of the Bass-link cable for power from mainland Australia. This risk is realised if the Basslink cable is non-operational. Where there is the risk this occurring, we would work with the suppliers to reach a reduction agreement in conjunction with other impacted businesses and communities.
103159917Pulmuone Co., Ltd.South KoreaWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: worldwidePhysical-Climate changeOther: Restriction of productionBecause the usage amount of beans is high for the products of this company, the crops, price, and quality of beans have a significant effect on the business, operation, sales, and expense. Issues such as decreased output, price increase, or supply and demand of beans may arise due to change in climate (flood/drought). Decreased output and increased raw materials price would result from floods or droughts.Current-up to 1 yearProbableHighSupplier diversificationIn order to procure new supply chains, visitation (business trip) expenses are basically required for evaluation of the new companies (inspection of processing facilities, farms, distribution competitiveness etc.), and expenses for sample tests and production tests are required for quality evaluation. Also organic certifications from at least two agencies1. Diversification of supply chainThe companies are procuring supply chains in various countries, such as the United States, Canada, Australia, France, and China, to respond to huge climate change such as due to El Nino or La Nina, and in a narrower sense, has procured company pools of five or more within the United States to overcome the variance in quality and price due to the difference in precipitation per region within such supply chain, thus, is engaging in risk hedging through dispersion or areas. Moreover, for organic items, the company is operating production sites by dividing into the northern hemisphere and southern hemisphere, and is engaging in management to prevent issues in the supply and demand by obtaining organic certifications from at least two agencies. In particular, because the amount of supply is very small for organic products, such products are more exposed to the issue of supply and demand, thus, operating several production sites is necessary, and instances of making purchases arise by regarding such purchases as investments for maintaining the supply chain despite the high unit price. 2. Prior management of crops Establishing strategies on how to purchase within the procured supply chain pool is important by having prior understanding of the crop condition of the year. 1) the company receives crop reports through continuous meetings. The company continuously receives reports regarding the quantity of seeding, prediction of abnormal climates, and crop forecast pursuant to such, and examines for any risk factors. 2) the company understands the crop status such as through the growth and development condition per region pursuant to precipitation or temperature through directly visiting farms during seedtime or harvest season, and establishes the purchasing direction in advance, in line with environmental factors, such as quality change and decomposition.
103259917Pulmuone Co., Ltd.South KoreaWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: worldwidePhysical-FloodingOther: Restriction of productionBecause the usage amount of beans is high for the products of this company, the crops, price, and quality of beans have a significant effect on the business, operation, sales, and expense. Issues such as decreased output, price increase, or supply and demand of beans may arise due to change in climate (flood/drought). Decreased output and increased raw materials price would result from floods or droughts.Current-up to 1 yearProbableHighSupplier diversificationIn order to procure new supply chains, visitation (business trip) expenses are basically required for evaluation of the new companies (inspection of processing facilities, farms, distribution competitiveness etc.), and expenses for sample tests and production tests are required for quality evaluation. Also organic certifications from at least two agencies1. Diversification of supply chainThe companies are procuring supply chains in various countries, such as the United States, Canada, Australia, France, and China, to respond to huge climate change such as due to El Nino or La Nina, and in a narrower sense, has procured company pools of five or more within the United States to overcome the variance in quality and price due to the difference in precipitation per region within such supply chain, thus, is engaging in risk hedging through dispersion or areas. Moreover, for organic items, the company is operating production sites by dividing into the northern hemisphere and southern hemisphere, and is engaging in management to prevent issues in the supply and demand by obtaining organic certifications from at least two agencies. In particular, because the amount of supply is very small for organic products, such products are more exposed to the issue of supply and demand, thus, operating several production sites is necessary, and instances of making purchases arise by regarding such purchases as investments for maintaining the supply chain despite the high unit price. 2. Prior management of crops Establishing strategies on how to purchase within the procured supply chain pool is important by having prior understanding of the crop condition of the year. 1) the company receives crop reports through continuous meetings. The company continuously receives reports regarding the quantity of seeding, prediction of abnormal climates, and crop forecast pursuant to such, and examines for any risk factors. 2) the company understands the crop status such as through the growth and development condition per region pursuant to precipitation or temperature through directly visiting farms during seedtime or harvest season, and establishes the purchasing direction in advance, in line with environmental factors, such as quality change and decomposition.
103359917Pulmuone Co., Ltd.South KoreaWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: worldwidePhysical-DroughtOther: Restriction of productionBecause the usage amount of beans is high for the products of this company, the crops, price, and quality of beans have a significant effect on the business, operation, sales, and expense. Issues such as decreased output, price increase, or supply and demand of beans may arise due to change in climate (flood/drought). Decreased output and increased raw materials price would result from floods or droughts.Current-up to 1 yearProbableHighSupplier diversificationIn order to procure new supply chains, visitation (business trip) expenses are basically required for evaluation of the new companies (inspection of processing facilities, farms, distribution competitiveness etc.), and expenses for sample tests and production tests are required for quality evaluation. Also organic certifications from at least two agencies1. Diversification of supply chainThe companies are procuring supply chains in various countries, such as the United States, Canada, Australia, France, and China, to respond to huge climate change such as due to El Nino or La Nina, and in a narrower sense, has procured company pools of five or more within the United States to overcome the variance in quality and price due to the difference in precipitation per region within such supply chain, thus, is engaging in risk hedging through dispersion or areas. Moreover, for organic items, the company is operating production sites by dividing into the northern hemisphere and southern hemisphere, and is engaging in management to prevent issues in the supply and demand by obtaining organic certifications from at least two agencies. In particular, because the amount of supply is very small for organic products, such products are more exposed to the issue of supply and demand, thus, operating several production sites is necessary, and instances of making purchases arise by regarding such purchases as investments for maintaining the supply chain despite the high unit price. 2. Prior management of crops Establishing strategies on how to purchase within the procured supply chain pool is important by having prior understanding of the crop condition of the year. 1) the company receives crop reports through continuous meetings. The company continuously receives reports regarding the quantity of seeding, prediction of abnormal climates, and crop forecast pursuant to such, and examines for any risk factors. 2) the company understands the crop status such as through the growth and development condition per region pursuant to precipitation or temperature through directly visiting farms during seedtime or harvest season, and establishes the purchasing direction in advance, in line with environmental factors, such as quality change and decomposition.
103461691Grafica 43BrazilWater2016PublicContainers & PackagingMaterials

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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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