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2016 – Water risks that could impact companies’ supply chain
| Row number | Account Number | Company Name | Incorporated Country | CDP Program | Reporting Year | Access | Industry Activity Group | GiCS Sector | Country | River basin | Risk driver | Potential impact | Description of impact | Timeframe | Likelihood | Magnitude of potential financial impact | Response strategy | Costs of response strategy | Details of strategy and costs |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 101 | 3253 | China Steel Corporation | Taiwan | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Philippines | Other: Bohol | Physical-Climate change | Supply chain disruption | Shortage of raw material for production, difficult for material handling. | 1-3 years | Highly probable | Medium-high | Increased capital expenditure | The major cost is only for the rent of extra storehouse or office and approximately under one million dollars. | The short term supply interruption can be managed through proper inventory control or adjustment of blending ratio. |
| 102 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | China | Other: Various | Physical-Projected water scarcity | Supply chain disruption | Key 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 years | Probable | Low-medium | Engagement 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 incentives | This 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. |
| 103 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | China | Other: Various | Regulatory-Increased difficulty in obtaining withdrawals/operations permit | Supply chain disruption | Key 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 years | Probable | Low-medium | Engagement 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 incentives | This 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. |
| 104 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | China | Other: Various | Reputational-Negative media coverage | Supply chain disruption | Key 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 years | Probable | Low-medium | Engagement 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 incentives | This 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. |
| 105 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | China | Other: Various | Regulatory-Higher water prices | Supply chain disruption | Key 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 years | Probable | Low-medium | Engagement 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 incentives | This 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. |
| 106 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | China | Other: Various | Physical-Declining water quality | Supply chain disruption | Key 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 years | Probable | Low-medium | Engagement 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 incentives | This 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. |
| 107 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | China | Other: Various | Physical-Increased water scarcity | Supply chain disruption | Key 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 years | Probable | Low-medium | Engagement 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 incentives | This 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. |
| 108 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | China | Other: Various | Regulatory-Regulation of discharge quality/volumes leading to higher compliance costs | Supply chain disruption | Key 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 years | Probable | Low-medium | Engagement 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 incentives | This 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. |
| 109 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Physical-Projected water stress | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 110 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Physical-Declining water quality | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 111 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Physical-Increased water scarcity | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 112 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Physical-Projected water scarcity | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 113 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Reputational-Negative media coverage | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 114 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Physical-Increased water stress | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 115 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Physical- Pollution of water source | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 116 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Italy | Po | Physical-Rationing of municipal water supply | Supply chain disruption | Key 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 years | Probable | Medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This 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. |
| 117 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Physical-Climate change | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 118 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Physical-Projected water scarcity | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 119 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Physical-Drought | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 120 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Physical-Increased water scarcity | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 121 | 2611 | Campbell Soup Company | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Cub | Regulatory-Mandatory water efficiency, conservation, recycling or process standards | Plant/production disruption leading to reduced output | The water risk in this area of Utah could potentially affect production capabilities in the future. | 4-6 years | Unlikely | Medium | Engagement with other stakeholders in the river basin; Re-siting of facilities | Unknown, but likely in the millions. | We need to complete additional analysis to verify the risk potential and identify probable scenarios in the near term. |
| 122 | 57963 | Birla Carbon | USA | Water | 2016 | Public | Chemicals | Materials | South Korea | Other: Sea | Physical-Seasonal supply variability/Inter annual variability | Supply chain disruption | Unknown | Probable | Unknown | Develop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification | |||
| 123 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Physical-Increased water stress | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 124 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Physical-Projected water stress | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 125 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Reputational-Community opposition | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 126 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United States of America | Other: Various | Reputational-Negative media coverage | Supply chain disruption | This is an important area for the production of two of Burberry's key raw materials, cotton and leather. Cotton and leather are agricultural commodities that require substantial water.According to the WWF Water Risk Filter, areas of the US are exposed to potential water risk driven by water scarcity triggered by over abstraction and drought. A reduction in the availability of quality water for this area could increase lead times and the cost of raw material production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges. Lack of water could also affect the quality of raw materials available. Water pollution from pesticide/fertiliser use could also affect Burberry through increased wastewater treatment costs. Furthermore, Burberry could experience reputation damage if water pollution affects the local environment and its communities. Changes in water availability and quality could undermine the livelihoods of the local communities. As established from Burberry's environmental baseline that was carried out in 2012, Burberry's environmental impacts are concentrated down the supply chain in raw material production. 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 years | Probable | Low-medium | Engagement 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; Tighter supplier performance standards; Water management incentives | This is very difficult for Burberry to estimate. | In 2015 Burberry joined the Better Cotton Initiative (BCI) to support and drive global demand for sustainable cotton. The BCI works with over one million cotton farmers worldwide, helping them to minimise the use of harmful pesticides, reduce water consumption and care for soil and natural habitats, while promoting decent work for the farmers.Burberry has been undergoing research to review the cattle farming practices in the US to better understand the risks associated with water pollution and scarcity. Burberry has also engaged with suppliers on this topic.A significant challenge in addressing water risk from cattle is the lack of traceability within leather supply chains. Burberry uses the Leather Working Group audit and others to promote better traceability, and to assess water risks as necessary. Recognising the significance of impacts beyond tanneries, Burberry traces hides to their country of origin and address issues according to regional risk. Burberry is working with tanneries and the wider industry to further improve traceability and to promote accountability for environmental impacts and animal welfare across the supply chain. This includes facilitating action to improve water management at cattle farms in the supply chain. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 127 | 2611 | Campbell Soup Company | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Cub | Regulatory-Regulatory uncertainty | Plant/production disruption leading to reduced output | The water risk in this area of Utah could potentially affect production capabilities in the future. | 4-6 years | Unlikely | Medium | Engagement with other stakeholders in the river basin; Re-siting of facilities | Unknown, but likely in the millions. | We need to complete additional analysis to verify the risk potential and identify probable scenarios in the near term. |
| 128 | 57963 | Birla Carbon | USA | Water | 2016 | Public | Chemicals | Materials | South Korea | Other: Sea | Physical-Flooding | Supply chain disruption | Unknown | Probable | Unknown | Develop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification | |||
| 129 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Physical-Climate change | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 130 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Reputational-Community opposition | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 131 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Physical-Drought | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 132 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Physical-Projected water scarcity | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 133 | 2611 | Campbell Soup Company | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Cub | Physical-Increased water scarcity | Plant/production disruption leading to reduced output | The water risk in this area of Utah could potentially affect production capabilities in the future. | 4-6 years | Unlikely | Medium | Engagement with other stakeholders in the river basin; Re-siting of facilities | Unknown, but likely in the millions. | We need to complete additional analysis to verify the risk potential and identify probable scenarios in the near term. |
| 134 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Physical-Projected water stress | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 135 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Reputational-Negative media coverage | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 136 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Physical-Ecosystem vulnerability | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 137 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Physical-Increased water scarcity | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 138 | 2611 | Campbell Soup Company | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Cub | Regulatory-Statutory water withdrawal limits/changes to water allocation | Plant/production disruption leading to reduced output | The water risk in this area of Utah could potentially affect production capabilities in the future. | 4-6 years | Unlikely | Medium | Engagement with other stakeholders in the river basin; Re-siting of facilities | Unknown, but likely in the millions. | We need to complete additional analysis to verify the risk potential and identify probable scenarios in the near term. |
| 139 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | Mongolia | Other: Various | Physical-Increased water stress | Supply chain disruption | This is an important area for the production of one of Burberry's key raw materials, cashmere. Cashmere is an agricultural commodity combed from goats. The goats and herder communities require sufficient water for the grasslands that they depend on. According to the WWF Water Risk Filter and other research, Mongolia is exposed to water risk driven by water scarcity. More frequent and intense droughts as a result of climate change, and increased livestock numbers degrading the ability for soils to hold moisture, have added pressures to this vulnerable ecosystem. A reduction in the availability of quality water for this area could reduce the availability and quality of cashmere available in Burberry's supply chain, increasing lead times and the cost of production. In turn, this could affect Burberry's potential to generate revenue. It could also reduce profit margin for key product ranges.Furthermore, Burberry could experience reputation damage if water scarcity and desertification associated with cashmere affects the local environment and its communities.Changes in water availability and quality could undermine the livelihoods of the local communities in Mongolia. As established in Burberry's environmental baseline carried out in 2012, Burberry's environmental impacts are concentrated in the supply chain in raw material production. Burberry is committed to support these livelihoods and to help the next generation of herders. | 4-6 years | Probable | Medium | Engagement with community; Engagement with public policy makers; Engagement with other stakeholders in the river basin; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Strengthen links with local community; Tighter supplier performance standards | This is very difficult for Burberry to estimate. | Burberry is committed to reducing cashmere's environmental impacts to secure a sustainable supply of this essential raw material long into the future and improve the livelihoods that depend on it.In 2015 Burberry became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to restore grasslands, promote animal welfare and ensure a decent living for cashmere goat herders. With input from a number of stakeholders, including animal welfare specialists and land management experts, the SFA has drafted an Animal Welfare and a Land Management Code of Practice. The Codes will be piloted with several hundred herder communities in Mongolia in 2016/17, with the aim of creating a certified source of sustainable cashmere. SFA also works to improve the livelihoods of herders and their families and has established a training programme to help young herders develop skills and knowledge in agricultural practices and goat husbandry.This includes engaging with herders on water issues and promoting grassland management that enhances soil moisture and supports local hydrology.Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 140 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United Kingdom | Other: River Lossie | Reputational-Community opposition | Supply chain disruption | Key supply chain sites are located in this river basin and the site has been identified for flood risk. Flooding at 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. This is particularly pertinent because this site is related to the supply chain of one of Burberry's Heritage products, which is a strategic product range. Furthermore, flooding 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 years | Probable | Low-medium | Develop flood emergency plans; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Water management incentives | This is very difficult for Burberry to estimate. | Burberry has engaged with the supplier in this location by encouraging them to improve flood resilience through emergency plans and flood defence mechanisms. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 141 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United Kingdom | Other: River Lossie | Reputational-Negative media coverage | Supply chain disruption | Key supply chain sites are located in this river basin and the site has been identified for flood risk. Flooding at 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. This is particularly pertinent because this site is related to the supply chain of one of Burberry's Heritage products, which is a strategic product range. Furthermore, flooding 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 years | Probable | Low-medium | Develop flood emergency plans; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Water management incentives | This is very difficult for Burberry to estimate. | Burberry has engaged with the supplier in this location by encouraging them to improve flood resilience through emergency plans and flood defence mechanisms. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 142 | 2414 | Burberry Group | United Kingdom | Water | 2016 | Public | Textiles, Apparel, Footwear and Luxury Goods | Consumer Discretionary | United Kingdom | Other: River Lossie | Physical-Flooding | Supply chain disruption | Key supply chain sites are located in this river basin and the site has been identified for flood risk. Flooding at 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. This is particularly pertinent because this site is related to the supply chain of one of Burberry's Heritage products, which is a strategic product range. Furthermore, flooding 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 years | Probable | Low-medium | Develop flood emergency plans; Engagement with suppliers; Establish site-specific targets; Greater due diligence; Promote best practice and awareness; Water management incentives | This is very difficult for Burberry to estimate. | Burberry has engaged with the supplier in this location by encouraging them to improve flood resilience through emergency plans and flood defence mechanisms. Burberry also manages its stock of product and counter-sourcing options to reduce exposure to potential supply chain challenges. |
| 143 | 2611 | Campbell Soup Company | USA | Water | 2016 | Public | Food & Beverage Processing | Consumer Staples | United States of America | Other: Cub | Physical-Drought | Plant/production disruption leading to reduced output | The water risk in this area of Utah could potentially affect production capabilities in the future. | 4-6 years | Unlikely | Medium | Engagement with other stakeholders in the river basin; Re-siting of facilities | Unknown, but likely in the millions. | We need to complete additional analysis to verify the risk potential and identify probable scenarios in the near term. |
| 144 | 2688 | Canon Inc. | Japan | Water | 2016 | Public | Technology Hardware & Equipment | Information Technology | Thailand | Chao Phraya | Physical-Flooding | Higher operating costs | Canon may be forced to discontinue production of some or all of its products if the specific outside suppliers that supply key components and special materials across Canon’s product lines experience unforeseen difficulties such as a flooding, or if such parts and special materials are in short supply. Further, the prices of components and special materials purchased from specific outside suppliers may surge, triggered by the imbalance of supply and demand along with other factors. | Unknown | Highly probable | High | Supplier diversification | Supplier decentralization involves massive costs. | We are also involved in diversify our supply chain through such measures as dispersing fixed production, transferring production during emergencies, and redistributing our supply structures, as well as engaging in finding alternate parts and procurement from a number of suppliers.Although these activities incur massive costs, we have established systems that will minimize, with a high probability, financial and operational harm in the event of a natural disaster. |
| 145 | 2880 | Carrefour | France | Water | 2016 | Public | Food & Staples Retailing | Consumer Staples | Bangladesh | Ganges-Brahmaputra | Physical-Increased water stress | Constraint to growth | Water pollution & scarcity is one of the biggest challenges on the 21st century, where Carrefour has the leverage to positively impact. There a huge environmental impact of the industrial wet textile operations (dyeing, washing and tanning). We can observe a raising concern from stakeholders since 2012 reinforced by a high media activity about this impact. | 1-3 years | Highly probable | High | Infrastructure investment; Increased investment in new technology; New products, markets; Tighter supplier performance standards | Costsresponsestrategyarespreadamongthe teamsandexistingactions:timeCorporateteam forsupport,GlobalSourcing team for audit and training.Thereforethe costscan'tpreciselybeallocated | Carrefour has launched the Clean Water Project, which has been designed by Carrefour Global Sourcing Sustainability teams (which are part of the merchandises team) for the Textile department. It is a global program to handle Textile, Home-textile & the Leather industry on main global environmental risks and regional environmental risks (Regulations, Raw materials cost, Industry maturity). The teams made a Risk Mapping which identifies the processes, countries and the related risks as a global approach. Then the regional approach highlights the inefficient use of water and energy, as well as the critical standard of tanneries in Bangladesh. This project aims to minimize the main industrial and regional sourcing risks exposing Carrefour and be renowned for our responsible sourcing. Regarding leather, Carrefour has decided to ban leather from Bangladesh to focus our work with the tanneries which are 100% Leather Working Group (LWG). Besides, direct work with suppliers, Carrefour launched a cross companies initiative to share good practices and lessons learnt of pilots. Thus the selected approach currently focus on enterprise wide chemical management, it encompasses chemical inventory, screening of product risks, chemical substitution and chemical management system. The deployment phase will start mid-2016. Each of selected suppliers will be pre-audited and trained on chemical management before the guide would be provided for implementation because Carrefour is involved in developing supplier’s leadership on those subjects. Performance achievement will also be audited. In the mean time the teams are working to identify a well known standard which will be a base for the next audit. A Chemical products engineer as been recruited and will be responsible to assist technically our different suppliers and local teams. |
| 146 | 2880 | Carrefour | France | Water | 2016 | Public | Food & Staples Retailing | Consumer Staples | Bangladesh | Ganges-Brahmaputra | Physical-Climate change | Constraint to growth | Water pollution & scarcity is one of the biggest challenges on the 21st century, where Carrefour has the leverage to positively impact. There a huge environmental impact of the industrial wet textile operations (dyeing, washing and tanning). We can observe a raising concern from stakeholders since 2012 reinforced by a high media activity about this impact. | 1-3 years | Highly probable | High | Infrastructure investment; Increased investment in new technology; New products, markets; Tighter supplier performance standards | Costsresponsestrategyarespreadamongthe teamsandexistingactions:timeCorporateteam forsupport,GlobalSourcing team for audit and training.Thereforethe costscan'tpreciselybeallocated | Carrefour has launched the Clean Water Project, which has been designed by Carrefour Global Sourcing Sustainability teams (which are part of the merchandises team) for the Textile department. It is a global program to handle Textile, Home-textile & the Leather industry on main global environmental risks and regional environmental risks (Regulations, Raw materials cost, Industry maturity). The teams made a Risk Mapping which identifies the processes, countries and the related risks as a global approach. Then the regional approach highlights the inefficient use of water and energy, as well as the critical standard of tanneries in Bangladesh. This project aims to minimize the main industrial and regional sourcing risks exposing Carrefour and be renowned for our responsible sourcing. Regarding leather, Carrefour has decided to ban leather from Bangladesh to focus our work with the tanneries which are 100% Leather Working Group (LWG). Besides, direct work with suppliers, Carrefour launched a cross companies initiative to share good practices and lessons learnt of pilots. Thus the selected approach currently focus on enterprise wide chemical management, it encompasses chemical inventory, screening of product risks, chemical substitution and chemical management system. The deployment phase will start mid-2016. Each of selected suppliers will be pre-audited and trained on chemical management before the guide would be provided for implementation because Carrefour is involved in developing supplier’s leadership on those subjects. Performance achievement will also be audited. In the mean time the teams are working to identify a well known standard which will be a base for the next audit. A Chemical products engineer as been recruited and will be responsible to assist technically our different suppliers and local teams. |
| 147 | 2880 | Carrefour | France | Water | 2016 | Public | Food & Staples Retailing | Consumer Staples | Bangladesh | Ganges-Brahmaputra | Physical-Declining water quality | Constraint to growth | Water pollution & scarcity is one of the biggest challenges on the 21st century, where Carrefour has the leverage to positively impact. There a huge environmental impact of the industrial wet textile operations (dyeing, washing and tanning). We can observe a raising concern from stakeholders since 2012 reinforced by a high media activity about this impact. | 1-3 years | Highly probable | High | Infrastructure investment; Increased investment in new technology; New products, markets; Tighter supplier performance standards | Costsresponsestrategyarespreadamongthe teamsandexistingactions:timeCorporateteam forsupport,GlobalSourcing team for audit and training.Thereforethe costscan'tpreciselybeallocated | Carrefour has launched the Clean Water Project, which has been designed by Carrefour Global Sourcing Sustainability teams (which are part of the merchandises team) for the Textile department. It is a global program to handle Textile, Home-textile & the Leather industry on main global environmental risks and regional environmental risks (Regulations, Raw materials cost, Industry maturity). The teams made a Risk Mapping which identifies the processes, countries and the related risks as a global approach. Then the regional approach highlights the inefficient use of water and energy, as well as the critical standard of tanneries in Bangladesh. This project aims to minimize the main industrial and regional sourcing risks exposing Carrefour and be renowned for our responsible sourcing. Regarding leather, Carrefour has decided to ban leather from Bangladesh to focus our work with the tanneries which are 100% Leather Working Group (LWG). Besides, direct work with suppliers, Carrefour launched a cross companies initiative to share good practices and lessons learnt of pilots. Thus the selected approach currently focus on enterprise wide chemical management, it encompasses chemical inventory, screening of product risks, chemical substitution and chemical management system. The deployment phase will start mid-2016. Each of selected suppliers will be pre-audited and trained on chemical management before the guide would be provided for implementation because Carrefour is involved in developing supplier’s leadership on those subjects. Performance achievement will also be audited. In the mean time the teams are working to identify a well known standard which will be a base for the next audit. A Chemical products engineer as been recruited and will be responsible to assist technically our different suppliers and local teams. |
| 148 | 2880 | Carrefour | France | Water | 2016 | Public | Food & Staples Retailing | Consumer Staples | Bangladesh | Ganges-Brahmaputra | Physical-Increased water scarcity | Constraint to growth | Water pollution & scarcity is one of the biggest challenges on the 21st century, where Carrefour has the leverage to positively impact. There a huge environmental impact of the industrial wet textile operations (dyeing, washing and tanning). We can observe a raising concern from stakeholders since 2012 reinforced by a high media activity about this impact. | 1-3 years | Highly probable | High | Infrastructure investment; Increased investment in new technology; New products, markets; Tighter supplier performance standards | Costsresponsestrategyarespreadamongthe teamsandexistingactions:timeCorporateteam forsupport,GlobalSourcing team for audit and training.Thereforethe costscan'tpreciselybeallocated | Carrefour has launched the Clean Water Project, which has been designed by Carrefour Global Sourcing Sustainability teams (which are part of the merchandises team) for the Textile department. It is a global program to handle Textile, Home-textile & the Leather industry on main global environmental risks and regional environmental risks (Regulations, Raw materials cost, Industry maturity). The teams made a Risk Mapping which identifies the processes, countries and the related risks as a global approach. Then the regional approach highlights the inefficient use of water and energy, as well as the critical standard of tanneries in Bangladesh. This project aims to minimize the main industrial and regional sourcing risks exposing Carrefour and be renowned for our responsible sourcing. Regarding leather, Carrefour has decided to ban leather from Bangladesh to focus our work with the tanneries which are 100% Leather Working Group (LWG). Besides, direct work with suppliers, Carrefour launched a cross companies initiative to share good practices and lessons learnt of pilots. Thus the selected approach currently focus on enterprise wide chemical management, it encompasses chemical inventory, screening of product risks, chemical substitution and chemical management system. The deployment phase will start mid-2016. Each of selected suppliers will be pre-audited and trained on chemical management before the guide would be provided for implementation because Carrefour is involved in developing supplier’s leadership on those subjects. Performance achievement will also be audited. In the mean time the teams are working to identify a well known standard which will be a base for the next audit. A Chemical products engineer as been recruited and will be responsible to assist technically our different suppliers and local teams. |
| 149 | 2924 | Catalyst Paper Corporation | Canada | Water | 2016 | Public | Forest and Paper Products - Forestry, Timber, Pulp and Paper, Rubber | Materials | |||||||||||
| 150 | 3253 | China Steel Corporation | Taiwan | Water | 2016 | Public | Mining - Iron, Aluminum, Other Metals | Materials | Australia | Other: Western Australia | Physical-Flooding | Supply chain disruption | Shortage of raw material for production, difficult for material handling. | 1-3 years | Probable | Medium-high | Increased capital expenditure | The major cost is only for the rent of extra storehouse or office and approximately under one million dollars. | The short term supply interruption can be managed through proper inventory control or adjustment of blending ratio. |
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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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