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2016 – Water risks that could impact companies’ supply chain

Row numberAccount NumberCompany NameIncorporated CountryCDP ProgramReporting YearAccessIndustry Activity GroupGiCS SectorCountryRiver basinRisk driverPotential impactDescription of impactTimeframeLikelihoodMagnitude of potential financial impactResponse strategyCosts of response strategyDetails of strategy and costs
1513253China Steel CorporationTaiwanWater2016PublicMining - Iron, Aluminum, Other MetalsMaterialsAustraliaOther: QueenslandPhysical-FloodingSupply chain disruptionShortage of raw material for production, difficult for material handling.1-3 yearsProbableMedium-highIncreased capital expenditureThe 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.
1523253China Steel CorporationTaiwanWater2016PublicMining - Iron, Aluminum, Other MetalsMaterialsBrazilAmazonasPhysical-FloodingSupply chain disruptionShortage of raw material for production, difficult for material handling.1-3 yearsProbableMedium-highIncreased capital expenditureThe 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.
15357963Birla CarbonUSAWater2016PublicChemicalsMaterialsSouth KoreaOther: SeaPhysical-Increased water stressSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
1543312Chugai Pharmaceutical Co., Ltd.JapanWater2016PublicPharmaceuticals, Biotechnology & Life SciencesHealth CareJapanOther: Arakawa riverPhysical-FloodingTransport disruptionTransport disruption causes delay of developments but it does not affect product supply very much.Current-up to 1 yearUnlikelyLowSupplier diversification; Other: secure and distributed storage50 million yenWe have excess stock of materials for production and the duplicated cell bank in another facility to reduce the risk of activity loss by floods.The local government has also completed counter-measures for the flooding problem (e.g. Super levee).
1553435CJ CheiljedangSouth KoreaWater2016PublicFood & Beverage ProcessingConsumer StaplesSouth KoreaHan-Gang (Han River)Physical-Climate changeTransport disruptionThe Company may be affected by disruptions to transport goods transported during heavy rains, etc.UnknownUnlikelyLowInfrastructure investment; Supplier diversification the audit and training use 30 million KRWWe are monitoring the weather such as heavy rain. To provide a specific precipitation scenarios, and respond to traffic paralysis
1563538CMS Energy CorporationUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaOther: Lake Michigan WatershedPhysical-Seasonal supply variability/Inter annual variabilityHigher operating costsThe largest supplier cost is the cost of fuel (i.e. coal and natural gas). Impact might include water regulations specific to the coal and natural gas industries. Coal supply could be impacted by lake levels, and in turn require we dredge intake locations to support continued operation.>6 yearsUnknownUnknownEngagement with public policy makersOur strategy would be implemented on a case by case. Potential costs remain unknown at this time.Costs are too difficult to predict at this time due to unknown magnitude of potential impacts.
1573538CMS Energy CorporationUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaOther: Lake Michigan WatershedRegulatory-Regulatory uncertaintyHigher operating costsThe largest supplier cost is the cost of fuel (i.e. coal and natural gas). Impact might include water regulations specific to the coal and natural gas industries. Coal supply could be impacted by lake levels, and in turn require we dredge intake locations to support continued operation.>6 yearsUnknownUnknownEngagement with public policy makersOur strategy would be implemented on a case by case. Potential costs remain unknown at this time.Costs are too difficult to predict at this time due to unknown magnitude of potential impacts.
1583538CMS Energy CorporationUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaOther: Lake Huron WatershedPhysical-Seasonal supply variability/Inter annual variabilityHigher operating costsThe largest supplier cost is the cost of fuel (i.e. coal). Impact might include water regulations specific to the coal industry. Fuel supply could be impacted by lake levels, and in turn require we dredge intake locations to support continued operation.>6 yearsUnknownUnknownEngagement with public policy makersOur strategy would be implemented on a case by case. Potential costs remain unknown at this time.Costs are too difficult to predict at this time due to unknown magnitude of potential impacts.
1593538CMS Energy CorporationUSAWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesUnited States of AmericaOther: Lake Huron WatershedRegulatory-Regulatory uncertaintyHigher operating costsThe largest supplier cost is the cost of fuel (i.e. coal). Impact might include water regulations specific to the coal industry. Fuel supply could be impacted by lake levels, and in turn require we dredge intake locations to support continued operation.>6 yearsUnknownUnknownEngagement with public policy makersOur strategy would be implemented on a case by case. Potential costs remain unknown at this time.Costs are too difficult to predict at this time due to unknown magnitude of potential impacts.
1603551Colgate Palmolive CompanyUSAWater2016PublicConsumer Durables, Household and Personal ProductsConsumer StaplesUnited States of AmericaMississippi RiverPhysical-Climate changeSupply chain disruptionHurricanes have the potential to cause operational disruption ranging from days to weeks depending on severity. 90% of the US Petrochemical refineries, crackers and chlor alkali plants are located in the Gulf Coast region. While not considered material, interruption in supply of basic feedstocks could cause increase in raw material pricing, shifting sources of supply or operational disruption depending on the severity of the hurricane event.There have been historical disruptions in petroleum derived materials sourced from the Gulf of Mexico, as well other materials from Mexico. One-time costs were approximately $1.0 million.>6 yearsHighly probableLow-mediumEngagement with suppliers; Greater due diligenceActions include supplier/material/formulation qualification costs, potential increased logistics costs and administrative costs, in order to offset the potential increased cost due to material availability. The one-time cost for qualification of a new material or formulation can range between $50,000 -150,000 per event, depending on a number of factors including the number of manufacturing sites using the material.Cost of the CDP Supply Chain Water survey is about $20,000 annually.Colgate uses an Enterprise Risk Management (ERM) Program to identify, assess, prioritize and manage physical risks, including natural disasters. We have Product Category Contingency Sourcing Plans, site selection protocols that consider climatic risk, Environmental and Loss Prevention Design Standards, Global Procurement Risk Management Strategy, Hurricane Contingency Planning, Logistics “Plan B”, and Business Readiness Planning. Specific to tropical cyclones we implement the Hurricane Contingency Sourcing Plan annually for key feedstock sourced from the Gulf of Mexico. Implementation of the plan entails an inventory build of feedstock prior to the annual Hurricane season to minimize risk associated with disruption in supply.Colgate has a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical materials, non-substitutable formulas). Every year we update our segmentation strategies where we classify materials and suppliers according to the criticality of the material segment as well as the market complexity and buyer power using a segmentation matrix tool. Risk management plans including changes in source of supply and potential alternative formulations are in place.Colgate has a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical materials, non-substitutable formulas). Every year we update our segmentation strategies where we classify materials and suppliers according to the criticality of the material segment as well as the market complexity and buyer power.The one-time cost for qualification of a new material or formulation can range between $50,000 -150,000 per event, depending on a number of factors including the number of manufacturing sites using the material.Additionally, Colgate uses the CDP Supply Chain survey to engage suppliers in assessing water risk and water-related impacts at a cost of about $20,000 annually.
1613732Conagra Brands IncUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaSacramento River - San Joaquin RiverPhysical-DroughtSupply chain disruptionThe drought in California not only affects our direct tomato operations but also impacts tomato growers within the Sacramento - San Joaquinn river basin.Current-up to 1 yearHighly probableLowEngagement with community; Engagement with suppliersUnable to quantify currently, depends on the supply of the current harvest.Currently ConAgra manages the potential impact of the drought in California by contracting with growers with well access on their grounds or farm in the Delta and have water rights. By doing so, we are able to work with growers that will have the ability to irrigate their fields to better control the outcome of the crop. Additionally, ConAgra Foods has contingency plans in place to obtain tomato paste from alternate suppliers to ensure other facilities are not impacted by the drought if unable to receive tomato paste from our two tomato fresh-pack facilities in California, In addition to working with our growers, our Helm, California facility donated a $5,000 grant from winning a Sustainable Development Award to UC Davis to help fund drought research.
1623551Colgate Palmolive CompanyUSAWater2016PublicConsumer Durables, Household and Personal ProductsConsumer StaplesUnited States of AmericaMississippi RiverPhysical-FloodingSupply chain disruptionHurricanes have the potential to cause operational disruption ranging from days to weeks depending on severity. 90% of the US Petrochemical refineries, crackers and chlor alkali plants are located in the Gulf Coast region. While not considered material, interruption in supply of basic feedstocks could cause increase in raw material pricing, shifting sources of supply or operational disruption depending on the severity of the hurricane event.There have been historical disruptions in petroleum derived materials sourced from the Gulf of Mexico, as well other materials from Mexico. One-time costs were approximately $1.0 million.>6 yearsHighly probableLow-mediumEngagement with suppliers; Greater due diligenceActions include supplier/material/formulation qualification costs, potential increased logistics costs and administrative costs, in order to offset the potential increased cost due to material availability. The one-time cost for qualification of a new material or formulation can range between $50,000 -150,000 per event, depending on a number of factors including the number of manufacturing sites using the material.Cost of the CDP Supply Chain Water survey is about $20,000 annually.Colgate uses an Enterprise Risk Management (ERM) Program to identify, assess, prioritize and manage physical risks, including natural disasters. We have Product Category Contingency Sourcing Plans, site selection protocols that consider climatic risk, Environmental and Loss Prevention Design Standards, Global Procurement Risk Management Strategy, Hurricane Contingency Planning, Logistics “Plan B”, and Business Readiness Planning. Specific to tropical cyclones we implement the Hurricane Contingency Sourcing Plan annually for key feedstock sourced from the Gulf of Mexico. Implementation of the plan entails an inventory build of feedstock prior to the annual Hurricane season to minimize risk associated with disruption in supply.Colgate has a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical materials, non-substitutable formulas). Every year we update our segmentation strategies where we classify materials and suppliers according to the criticality of the material segment as well as the market complexity and buyer power using a segmentation matrix tool. Risk management plans including changes in source of supply and potential alternative formulations are in place.Colgate has a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical materials, non-substitutable formulas). Every year we update our segmentation strategies where we classify materials and suppliers according to the criticality of the material segment as well as the market complexity and buyer power.The one-time cost for qualification of a new material or formulation can range between $50,000 -150,000 per event, depending on a number of factors including the number of manufacturing sites using the material.Additionally, Colgate uses the CDP Supply Chain survey to engage suppliers in assessing water risk and water-related impacts at a cost of about $20,000 annually.
1633551Colgate Palmolive CompanyUSAWater2016PublicConsumer Durables, Household and Personal ProductsConsumer StaplesUnited States of AmericaNot knownPhysical-DroughtHigher operating costsIncreasing global demand and climate change will have a cumulative effect over time. While not considered material, commodity-purchased agricultural materials will continue to experience changing supply patterns, increasing cost volatility and shifting of demand to available materials as a result of temperature changes and water issues such as drought.Current-up to 1 yearProbableLow-mediumEngagement with suppliersActions include supplier/material/formulation qualification costs, potential increased logistics costs and administrative costs, in order to offset the potential increased cost due to material availability. The one-time cost for qualification of a new material or formulation can range between $50,000 -150,000 per event, depending on a number of factors including the number of manufacturing sites using the material.Cost of the CDP Supply Chain Water survey is about $20,000 annually.Colgate has a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical materials, non-substitutable formulas). Every year we update our segmentation strategies where we classify materials and suppliers according to the criticality of the material segment as well as the market complexity and buyer power using a segmentation matrix tool. Selected agricultural materials that are impacted by change in precipitation extremes and droughts are considered in this process (e.g. corn, tropical oils). Risk management plans including changes in source of supply and potential alternative formulations are in place.Additionally, Colgate uses the CDP Supply Chain survey to engage suppliers in assessing water risk and water-related impacts at a cost of about $20,000 annually.
1643551Colgate Palmolive CompanyUSAWater2016PublicConsumer Durables, Household and Personal ProductsConsumer StaplesUnited States of AmericaNot knownPhysical-Seasonal supply variability/Inter annual variabilityHigher operating costsIncreasing global demand and climate change will have a cumulative effect over time. While not considered material, commodity-purchased agricultural materials will continue to experience changing supply patterns, increasing cost volatility and shifting of demand to available materials as a result of temperature changes and water issues such as drought.Current-up to 1 yearProbableLow-mediumEngagement with suppliersActions include supplier/material/formulation qualification costs, potential increased logistics costs and administrative costs, in order to offset the potential increased cost due to material availability. The one-time cost for qualification of a new material or formulation can range between $50,000 -150,000 per event, depending on a number of factors including the number of manufacturing sites using the material.Cost of the CDP Supply Chain Water survey is about $20,000 annually.Colgate has a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical materials, non-substitutable formulas). Every year we update our segmentation strategies where we classify materials and suppliers according to the criticality of the material segment as well as the market complexity and buyer power using a segmentation matrix tool. Selected agricultural materials that are impacted by change in precipitation extremes and droughts are considered in this process (e.g. corn, tropical oils). Risk management plans including changes in source of supply and potential alternative formulations are in place.Additionally, Colgate uses the CDP Supply Chain survey to engage suppliers in assessing water risk and water-related impacts at a cost of about $20,000 annually.
1653551Colgate Palmolive CompanyUSAWater2016PublicConsumer Durables, Household and Personal ProductsConsumer StaplesUnited States of AmericaNot knownPhysical-Climate changeHigher operating costsIncreasing global demand and climate change will have a cumulative effect over time. While not considered material, commodity-purchased agricultural materials will continue to experience changing supply patterns, increasing cost volatility and shifting of demand to available materials as a result of temperature changes and water issues such as drought.Current-up to 1 yearProbableLow-mediumEngagement with suppliersActions include supplier/material/formulation qualification costs, potential increased logistics costs and administrative costs, in order to offset the potential increased cost due to material availability. The one-time cost for qualification of a new material or formulation can range between $50,000 -150,000 per event, depending on a number of factors including the number of manufacturing sites using the material.Cost of the CDP Supply Chain Water survey is about $20,000 annually.Colgate has a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical materials, non-substitutable formulas). Every year we update our segmentation strategies where we classify materials and suppliers according to the criticality of the material segment as well as the market complexity and buyer power using a segmentation matrix tool. Selected agricultural materials that are impacted by change in precipitation extremes and droughts are considered in this process (e.g. corn, tropical oils). Risk management plans including changes in source of supply and potential alternative formulations are in place.Additionally, Colgate uses the CDP Supply Chain survey to engage suppliers in assessing water risk and water-related impacts at a cost of about $20,000 annually.
1663565Coca-Cola European PartnersUnited KingdomWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaOther: Not country or river basin specific. Our approach is company-widePhysical-Seasonal supply variability/Inter annual variabilityThrough the water footprint and water scarcity risk analysis of our product and value chain we have identified that up to 80% of our value chain water footprint is associated with our key agricultural ingredients. If our agricultural supply chain were to be affected by water stress, it could result in the disruption of our upstream supply chain -resulting in reduced availability or poor quality of ingredients, as well as increased commodity prices for those ingredients we purchase. This impact could affect all our products as well as our procurement processes.>6 yearsProbableMediumEngagement with suppliersOver the past 4 years, CCE has invested $356,500 (£230,000) in water replenishment projects with WWF-UK, WWF-France and Natuurpunt in Belgium. Together with funding from The Coca-Cola Foundation, this amounts to an investment of approximately $4.5 million in water replenishment projects since 2012. Investment in replenishment programmes provides a strong benefit for CCE, as it helps us mitigate water scarcity and water quality risks in the areas where we operate that are water stressed.Our strategy regarding water impacts is company-wide, and CCE is headquartered in the United States. However, all of our operations and the majority of our sourcing is undertaken in Europe. At CCE, water consumption and scarcity has been assessed throughout our value chain. Through multiple water footprint studies, we know that approximately 80% of the total water footprint of our value chain comes from our agricultural ingredients, including beet and cane sugars, fruit juices, coffee, and pulp and paper products. In order to address the issue, we have committed to sustainably source 100% of our key agricultural ingredients by 2020. We have established a set of Sustainable Agriculture Guiding Principles (SAGPs), in conjunction with The Coca-Cola Company, which we expect our key agricultural suppliers to adhere to. In 2014, 100% of our key sugar suppliers agreed to adhere to our SAGPs by 2020. We are working with our suppliers and with partners like the Sustainable Agriculture Initiative (SAI), Bonsucro and the Rainforest Alliance to develop ways of monitoring compliance. In 2015, we began working with suppliers and third-party frameworks to establish programs that will allow farmers to comply with our SAGPs. Our water replenishment programmes are a key part of our value chain water strategy, as they help to replenish the water used in our beverages, where it is sourced from areas of water stress. Over the past 4 years, CCE has invested $356,500 (£230,000) in water replenishment projects with WWF-UK, WWF-France and Natuurpunt in Belgium. Together with funding from The Coca-Cola Foundation, this amounts to an investment of approximately $4.5 million in water replenishment projects since 2012. Through these projects, we have replenished 1,509,400 m3 of water since 2012. This cost has been derived from invoice and contract data, and we expect investment to increase in the future.
1674212Dai Nippon Printing Co., Ltd.JapanWater2016PublicTrading Companies & Distributors and Commercial Services & SuppliesIndustrialsIndonesiaOther: Kali MalangPhysical-FloodingPlant/production disruption leading to reduced outputThere is the potential for reduced production due to logistics delays and material procurement delays as a result of summer typhoons.4-6 yearsUnlikelyLowDevelop flood emergency plansIf logistics are delayed in this location, and production is suspended for one week, annual production will fall by approximately 2%.As part of BCP measures, supplier distribution, and a back-up systems from Japan have been established.
16857963Birla CarbonUSAWater2016PublicChemicalsMaterialsEgyptNileReputational-Inadequate access to water, sanitation and hygieneSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
1693732Conagra Brands IncUSAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaSacramento River - San Joaquin RiverRegulatory-Higher water pricesSupply chain disruptionThe drought in California not only affects our direct tomato operations but also impacts tomato growers within the Sacramento - San Joaquinn river basin.Current-up to 1 yearHighly probableLowEngagement with community; Engagement with suppliersUnable to quantify currently, depends on the supply of the current harvest.Currently ConAgra manages the potential impact of the drought in California by contracting with growers with well access on their grounds or farm in the Delta and have water rights. By doing so, we are able to work with growers that will have the ability to irrigate their fields to better control the outcome of the crop. Additionally, ConAgra Foods has contingency plans in place to obtain tomato paste from alternate suppliers to ensure other facilities are not impacted by the drought if unable to receive tomato paste from our two tomato fresh-pack facilities in California, In addition to working with our growers, our Helm, California facility donated a $5,000 grant from winning a Sustainable Development Award to UC Davis to help fund drought research.
1703795Constellation Brands, Inc.USAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaSacramento River - San Joaquin RiverPhysical-DroughtSupply chain disruptionClimate changes resulting in extreme weather events, such as drought conditions, may affect water availability and/or quality. If water resources are impacted by drought conditions, it could result in production interruptions in our agricultural supply chain.1-3 yearsUnknownUnknownEngagement with suppliers; Greater due diligence; Promote best practice and awareness; Supplier diversificationDuring FY16 we spent between 125,000$ & 350,000 USD$ on direct and indirect supplier engagement.The Robert Mondavi Winery in collaboration with the Wine Institute and PG&E hosted some of our suppliers for a 'Sustainable Winery Workshop' addressing new technologies for water and energy efficiency in April 2015. Our grape management staff works closely with our suppliers to share best practices, understand conditions and perform field visits.
1713795Constellation Brands, Inc.USAWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaSacramento River - San Joaquin RiverPhysical-Climate changeSupply chain disruptionClimate changes resulting in extreme weather events, such as drought conditions, may affect water availability and/or quality. If water resources are impacted by drought conditions, it could result in production interruptions in our agricultural supply chain.1-3 yearsUnknownUnknownEngagement with suppliers; Greater due diligence; Promote best practice and awareness; Supplier diversificationDuring FY16 we spent between 125,000$ & 350,000 USD$ on direct and indirect supplier engagement.The Robert Mondavi Winery in collaboration with the Wine Institute and PG&E hosted some of our suppliers for a 'Sustainable Winery Workshop' addressing new technologies for water and energy efficiency in April 2015. Our grape management staff works closely with our suppliers to share best practices, understand conditions and perform field visits.
1724058Crescent Point Energy CorporationCanadaWater2016PublicOil & GasEnergy
1734092Croda InternationalUnited KingdomWater2016PublicChemicalsMaterialsUnited KingdomOther: HumberPhysical-FloodingSupply chain disruptionRestricted autumn sowing of high Erucic rapeseed (HERO)and poor establishment of crop in UK due to high rainfall and subsequent flooding– can lead to potential shortfall of HERO1-3 yearsUnlikelyLow-mediumSupplier diversificationLowMitigate against future failure of UK crop by evaluating non-UK HEAR/HERO sourcing options for Hull plant
1744092Croda InternationalUnited KingdomWater2016PublicChemicalsMaterialsUnited States of AmericaDelaware RiverPhysical-Increased water scarcitySupply chain disruptionReduced corn crops due to water scarcity and droughts in US. Droughts in India impact on the cost and availability of sorbitol going into AmericaCurrent-up to 1 yearProbableLowSupplier diversificationLowApproved all suppliers in North America for Sorbitol. Also, approved the main supplier to Croda Singapore for sorbitol to Croda Inc
1754136Cummins Inc.USAWater2016PublicElectrical Equipment and MachineryIndustrials
1764212Dai Nippon Printing Co., Ltd.JapanWater2016PublicTrading Companies & Distributors and Commercial Services & SuppliesIndustrialsVietnamOther: Dong NaiPhysical-FloodingPlant/production disruption leading to reduced outputThere is the potential for reduced production due to logistics delays and material procurement delays as a result of summer typhoons.4-6 yearsUnlikelyLowDevelop flood emergency plans; Engagement with communityIf logistics are delayed in this location, and production is suspended for one week, annual production will fall by approximately 2%.As part of BCP measures, supplier distribution, and a back-up systems from Japan have been established.
1774212Dai Nippon Printing Co., Ltd.JapanWater2016PublicTrading Companies & Distributors and Commercial Services & SuppliesIndustrialsMalaysiaOther: Johor River, Sungai Kim KimPhysical-FloodingPlant/production disruption leading to reduced outputThere is the potential for reduced production due to logistics delays and material procurement delays as a result of summer typhoons.4-6 yearsUnlikelyLowDevelop flood emergency plansIf logistics are delayed in this location, and production is suspended for one week, annual production will fall by approximately 2%.As part of BCP measures, supplier distribution, and a back-up systems from Japan have been established.
1784212Dai Nippon Printing Co., Ltd.JapanWater2016PublicTrading Companies & Distributors and Commercial Services & SuppliesIndustrialsSingaporeOther: Johor RiverPhysical-FloodingPlant/production disruption leading to reduced outputThere is the potential for reduced production due to logistics delays and material procurement delays as a result of summer typhoons.4-6 yearsUnlikelyLowDevelop flood emergency plansIf logistics are delayed in this location, and production is suspended for one week, annual production will fall by approximately 2%.As part of BCP measures, supplier distribution, and a back-up systems from Japan have been established.
1794226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Physical-Inadequate infrastructurePlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1804226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Physical-Seasonal supply variability/Inter annual variabilityPlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1814226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Regulatory-Mandatory water efficiency, conservation, recycling or process standardsPlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1824226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Physical-DroughtPlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1834226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Physical-Increased water scarcityPlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1844226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Physical-Rationing of municipal water supplyPlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1854226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Regulatory-Higher water pricesPlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1864226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsChinaHuang He (Yellow River)Regulatory-Increased difficulty in obtaining withdrawals/operations permitPlant/production disruption leading to reduced outputThis factory is producing a compressor of an air conditioner.When operation stops, I have an influence on production volume.1-3 yearsUnlikelyLowDevelop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are fewWhen an emergency has occurred in Xian in China, correspondence is possible at Suchou inChina.A supplier, like.
1874226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusPhysical-Seasonal supply variability/Inter annual variabilityThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1884226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusRegulatory-Increased difficulty in obtaining withdrawals/operations permitThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1894226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusRegulatory-Mandatory water efficiency, conservation, recycling or process standardsThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1904226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusPhysical-Inadequate infrastructureThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1914226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusPhysical-Increased water scarcityThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1924226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusPhysical-Rationing of municipal water supplyThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1934226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusPhysical-DroughtThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1944226Daikin Industries, Ltd.JapanWater2016PublicBuilding ProductsIndustrialsIndiaIndusRegulatory-Higher water pricesThis factory is producing an air conditioner.When operation stops, I have an influence on production volume.Develop flood emergency plansIt isn't being calculated, but it's regarded as the cost of the small sum.Because there are few production scales and there are more factories for which it can substitute in Thailand & Malaysia.A supplier, like.When an emergency has occurred in India, correspondence is possible at Suchou in Thailand and Malyasia.A supplier, like.
1954311DanoneFranceWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: world widePhysical-Climate changeSupply chain disruptionChanges in weather patterns have consequences for hydrology and water resources. Main physical risks are associated to the worldwide sourcing of agricultural raw materials (milk and fruits) and water in the mid-term (10-12 years). For example, the milk supply in Sub-Saharan areas, fruits supply in China. So the non availability of water could substantially impact the price and availability of raw materials, which could have an adverse effect on its results. In particular, a potential increase in the prices of these raw materials (especially milk) may not be passed on, in the sales price of Danone’s products, notably in countries whose economic environment has deteriorated, which could have a significant adverse effect on Danone’s activities and results. If we consider water scarcity risk , if liquid milk, milk powder and other milk ingredients prices were to increase by 5% due to water scarcity, this would mean a 166M€ loss for Danone.>6 yearsProbableHighEngagement with suppliers; Supplier diversification; Other: industrial flexibilityproject provide sustainable access to key raw materials 50M€ supported by Danone Ecosystem fund, subsidaries and other co-funding organismImplementation of a sustainable relationship with suppliers is a key component of Danone's activity, within its own business and throughout its ecosystem. -Numerous initiatives in the United States, Mexico, Brazil or Europe have reinvented the contractual relationship between Danone and its farmers, in order to offer greater visibility and price stability in the long-term. This innovative approach applies not only to increasingly volatile milk market prices but also to the production costs of the operation. -Second approch is the project supported by Ecosystem Fund, today around 40% of projects provide sustainable access to key raw materials with more than 50M€ Funding (Ecosystem, the subsiday and other cofunding partners).These projects aims to secure and develop milk and fruit sourcing through sustainable agriculture and farmers empowerment with value for local consumers and communities. These projects, real laboratories for studying the obstacles, as well as the opportunities for change, implement new, more sustainable models, through co-creation with our stakeholders. - In addition Danone reinforced its strategy of sustainable agriculture: In dairy division 50% of direct sourced milk is under FarMs Program and 75% of fruits and vegetables of ELN division are under growing healthy program. Separately, we are working on geographical diversification of thesourcing and micro irrigation projects on fruits to help manage exposure of climate change. Moreover, Danone is developing industrial flexibility to be able to manage quickly changes in its products recipes (ex : use liquid milk rather than milk powder depending on the situation). Impact on cost is linked to the difference of market price between fresh milk andreconstituted milk. This difference can be positive or negative, depending on the country and the market situation.
1964311DanoneFranceWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: world widePhysical-Increased water scarcitySupply chain disruptionChanges in weather patterns have consequences for hydrology and water resources. Main physical risks are associated to the worldwide sourcing of agricultural raw materials (milk and fruits) and water in the mid-term (10-12 years). For example, the milk supply in Sub-Saharan areas, fruits supply in China. So the non availability of water could substantially impact the price and availability of raw materials, which could have an adverse effect on its results. In particular, a potential increase in the prices of these raw materials (especially milk) may not be passed on, in the sales price of Danone’s products, notably in countries whose economic environment has deteriorated, which could have a significant adverse effect on Danone’s activities and results. If we consider water scarcity risk , if liquid milk, milk powder and other milk ingredients prices were to increase by 5% due to water scarcity, this would mean a 166M€ loss for Danone.>6 yearsProbableHighEngagement with suppliers; Supplier diversification; Other: industrial flexibilityproject provide sustainable access to key raw materials 50M€ supported by Danone Ecosystem fund, subsidaries and other co-funding organismImplementation of a sustainable relationship with suppliers is a key component of Danone's activity, within its own business and throughout its ecosystem. -Numerous initiatives in the United States, Mexico, Brazil or Europe have reinvented the contractual relationship between Danone and its farmers, in order to offer greater visibility and price stability in the long-term. This innovative approach applies not only to increasingly volatile milk market prices but also to the production costs of the operation. -Second approch is the project supported by Ecosystem Fund, today around 40% of projects provide sustainable access to key raw materials with more than 50M€ Funding (Ecosystem, the subsiday and other cofunding partners).These projects aims to secure and develop milk and fruit sourcing through sustainable agriculture and farmers empowerment with value for local consumers and communities. These projects, real laboratories for studying the obstacles, as well as the opportunities for change, implement new, more sustainable models, through co-creation with our stakeholders. - In addition Danone reinforced its strategy of sustainable agriculture: In dairy division 50% of direct sourced milk is under FarMs Program and 75% of fruits and vegetables of ELN division are under growing healthy program. Separately, we are working on geographical diversification of thesourcing and micro irrigation projects on fruits to help manage exposure of climate change. Moreover, Danone is developing industrial flexibility to be able to manage quickly changes in its products recipes (ex : use liquid milk rather than milk powder depending on the situation). Impact on cost is linked to the difference of market price between fresh milk andreconstituted milk. This difference can be positive or negative, depending on the country and the market situation.
1974311DanoneFranceWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: world widePhysical-Increased water stressSupply chain disruptionChanges in weather patterns have consequences for hydrology and water resources. Main physical risks are associated to the worldwide sourcing of agricultural raw materials (milk and fruits) and water in the mid-term (10-12 years). For example, the milk supply in Sub-Saharan areas, fruits supply in China. So the non availability of water could substantially impact the price and availability of raw materials, which could have an adverse effect on its results. In particular, a potential increase in the prices of these raw materials (especially milk) may not be passed on, in the sales price of Danone’s products, notably in countries whose economic environment has deteriorated, which could have a significant adverse effect on Danone’s activities and results. If we consider water scarcity risk , if liquid milk, milk powder and other milk ingredients prices were to increase by 5% due to water scarcity, this would mean a 166M€ loss for Danone.>6 yearsProbableHighEngagement with suppliers; Supplier diversification; Other: industrial flexibilityproject provide sustainable access to key raw materials 50M€ supported by Danone Ecosystem fund, subsidaries and other co-funding organismImplementation of a sustainable relationship with suppliers is a key component of Danone's activity, within its own business and throughout its ecosystem. -Numerous initiatives in the United States, Mexico, Brazil or Europe have reinvented the contractual relationship between Danone and its farmers, in order to offer greater visibility and price stability in the long-term. This innovative approach applies not only to increasingly volatile milk market prices but also to the production costs of the operation. -Second approch is the project supported by Ecosystem Fund, today around 40% of projects provide sustainable access to key raw materials with more than 50M€ Funding (Ecosystem, the subsiday and other cofunding partners).These projects aims to secure and develop milk and fruit sourcing through sustainable agriculture and farmers empowerment with value for local consumers and communities. These projects, real laboratories for studying the obstacles, as well as the opportunities for change, implement new, more sustainable models, through co-creation with our stakeholders. - In addition Danone reinforced its strategy of sustainable agriculture: In dairy division 50% of direct sourced milk is under FarMs Program and 75% of fruits and vegetables of ELN division are under growing healthy program. Separately, we are working on geographical diversification of thesourcing and micro irrigation projects on fruits to help manage exposure of climate change. Moreover, Danone is developing industrial flexibility to be able to manage quickly changes in its products recipes (ex : use liquid milk rather than milk powder depending on the situation). Impact on cost is linked to the difference of market price between fresh milk andreconstituted milk. This difference can be positive or negative, depending on the country and the market situation.
1984311DanoneFranceWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: world widePhysical-Projected water stressSupply chain disruptionChanges in weather patterns have consequences for hydrology and water resources. Main physical risks are associated to the worldwide sourcing of agricultural raw materials (milk and fruits) and water in the mid-term (10-12 years). For example, the milk supply in Sub-Saharan areas, fruits supply in China. So the non availability of water could substantially impact the price and availability of raw materials, which could have an adverse effect on its results. In particular, a potential increase in the prices of these raw materials (especially milk) may not be passed on, in the sales price of Danone’s products, notably in countries whose economic environment has deteriorated, which could have a significant adverse effect on Danone’s activities and results. If we consider water scarcity risk , if liquid milk, milk powder and other milk ingredients prices were to increase by 5% due to water scarcity, this would mean a 166M€ loss for Danone.>6 yearsProbableHighEngagement with suppliers; Supplier diversification; Other: industrial flexibilityproject provide sustainable access to key raw materials 50M€ supported by Danone Ecosystem fund, subsidaries and other co-funding organismImplementation of a sustainable relationship with suppliers is a key component of Danone's activity, within its own business and throughout its ecosystem. -Numerous initiatives in the United States, Mexico, Brazil or Europe have reinvented the contractual relationship between Danone and its farmers, in order to offer greater visibility and price stability in the long-term. This innovative approach applies not only to increasingly volatile milk market prices but also to the production costs of the operation. -Second approch is the project supported by Ecosystem Fund, today around 40% of projects provide sustainable access to key raw materials with more than 50M€ Funding (Ecosystem, the subsiday and other cofunding partners).These projects aims to secure and develop milk and fruit sourcing through sustainable agriculture and farmers empowerment with value for local consumers and communities. These projects, real laboratories for studying the obstacles, as well as the opportunities for change, implement new, more sustainable models, through co-creation with our stakeholders. - In addition Danone reinforced its strategy of sustainable agriculture: In dairy division 50% of direct sourced milk is under FarMs Program and 75% of fruits and vegetables of ELN division are under growing healthy program. Separately, we are working on geographical diversification of thesourcing and micro irrigation projects on fruits to help manage exposure of climate change. Moreover, Danone is developing industrial flexibility to be able to manage quickly changes in its products recipes (ex : use liquid milk rather than milk powder depending on the situation). Impact on cost is linked to the difference of market price between fresh milk andreconstituted milk. This difference can be positive or negative, depending on the country and the market situation.
1994311DanoneFranceWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: world widePhysical-Projected water scarcitySupply chain disruptionChanges in weather patterns have consequences for hydrology and water resources. Main physical risks are associated to the worldwide sourcing of agricultural raw materials (milk and fruits) and water in the mid-term (10-12 years). For example, the milk supply in Sub-Saharan areas, fruits supply in China. So the non availability of water could substantially impact the price and availability of raw materials, which could have an adverse effect on its results. In particular, a potential increase in the prices of these raw materials (especially milk) may not be passed on, in the sales price of Danone’s products, notably in countries whose economic environment has deteriorated, which could have a significant adverse effect on Danone’s activities and results. If we consider water scarcity risk , if liquid milk, milk powder and other milk ingredients prices were to increase by 5% due to water scarcity, this would mean a 166M€ loss for Danone.>6 yearsProbableHighEngagement with suppliers; Supplier diversification; Other: industrial flexibilityproject provide sustainable access to key raw materials 50M€ supported by Danone Ecosystem fund, subsidaries and other co-funding organismImplementation of a sustainable relationship with suppliers is a key component of Danone's activity, within its own business and throughout its ecosystem. -Numerous initiatives in the United States, Mexico, Brazil or Europe have reinvented the contractual relationship between Danone and its farmers, in order to offer greater visibility and price stability in the long-term. This innovative approach applies not only to increasingly volatile milk market prices but also to the production costs of the operation. -Second approch is the project supported by Ecosystem Fund, today around 40% of projects provide sustainable access to key raw materials with more than 50M€ Funding (Ecosystem, the subsiday and other cofunding partners).These projects aims to secure and develop milk and fruit sourcing through sustainable agriculture and farmers empowerment with value for local consumers and communities. These projects, real laboratories for studying the obstacles, as well as the opportunities for change, implement new, more sustainable models, through co-creation with our stakeholders. - In addition Danone reinforced its strategy of sustainable agriculture: In dairy division 50% of direct sourced milk is under FarMs Program and 75% of fruits and vegetables of ELN division are under growing healthy program. Separately, we are working on geographical diversification of thesourcing and micro irrigation projects on fruits to help manage exposure of climate change. Moreover, Danone is developing industrial flexibility to be able to manage quickly changes in its products recipes (ex : use liquid milk rather than milk powder depending on the situation). Impact on cost is linked to the difference of market price between fresh milk andreconstituted milk. This difference can be positive or negative, depending on the country and the market situation.
2004311DanoneFranceWater2016PublicFood & Beverage ProcessingConsumer StaplesRest of worldOther: world wideRegulatory-Higher water pricesHigher operating costsRegulatory risk for our supply chain is existing, but it is not so high because the raw materials we use as a food company are fundamentals. Water price increase is an identified risk, and in some sites localized in water-stressed area, a potential risk of re-allocation could occur. Higher water prices will increase raw material prices as milk or fruits (the agricultural sector depends a lot on water resources).4-6 yearsProbableMediumEngagement with suppliers; Promote best practice and awarenessdifficult to assessRegarding our Scientific and Regulatory Affairs networking, we review regularly the supply chain regulatory risk. As we have implemented sustainability principles with our suppliers and farming charter, we manage the water -related regulatory risks through this agreement. The next step is to work further with our sourcing department.

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created Sep 18 2017

updated Sep 20 2018

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CDP's water program motivates companies to disclose and reduce their environmental impacts by using the power of investors and customers. The data CDP collects help influential decision makers to reduce risk, capitalize on opportunities and drive action towards a more sustainable world. This dataset comes from question W3.2d asking companies to list the inherent water risks that could generate a substantive change in their business, operations, revenue or expenditure, the potential impact to their supply chain and the strategies to mitigate them.

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