Go back to the interactive dataset

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
3517156General Mills Inc.USAWater2016PublicFood & Beverage ProcessingConsumer StaplesChinaYangtze River (Chang Jiang)Physical-Projected water stressIf water becomes less available it is likely to become more expensive. If water becomes more polluted, we will need to add water treatment to our processes to ensure high quality water for our processes.>6 yearsProbableLowOther: Deep Dive analysis of challenges and opportunitiesIn the reporting period surveyed, we have invested >$500,000 in research and analysis with several non-profit organizations to identify the scale of our risk and paths forward to mitigating that risk.We have not yet finished our deep dive assessment of the Yangtze River. Responses to date to water challenges have been to apply our usual monitoring protocols within our facility. Watershed responses will be determined once the assessment is completed.
3527156General Mills Inc.USAWater2016PublicFood & Beverage ProcessingConsumer StaplesChinaYangtze River (Chang Jiang)Physical-Increased water stressIf water becomes less available it is likely to become more expensive. If water becomes more polluted, we will need to add water treatment to our processes to ensure high quality water for our processes.>6 yearsProbableLowOther: Deep Dive analysis of challenges and opportunitiesIn the reporting period surveyed, we have invested >$500,000 in research and analysis with several non-profit organizations to identify the scale of our risk and paths forward to mitigating that risk.We have not yet finished our deep dive assessment of the Yangtze River. Responses to date to water challenges have been to apply our usual monitoring protocols within our facility. Watershed responses will be determined once the assessment is completed.
3537156General Mills Inc.USAWater2016PublicFood & Beverage ProcessingConsumer StaplesChinaYangtze River (Chang Jiang)Physical-Projected water scarcityIf water becomes less available it is likely to become more expensive. If water becomes more polluted, we will need to add water treatment to our processes to ensure high quality water for our processes.>6 yearsProbableLowOther: Deep Dive analysis of challenges and opportunitiesIn the reporting period surveyed, we have invested >$500,000 in research and analysis with several non-profit organizations to identify the scale of our risk and paths forward to mitigating that risk.We have not yet finished our deep dive assessment of the Yangtze River. Responses to date to water challenges have been to apply our usual monitoring protocols within our facility. Watershed responses will be determined once the assessment is completed.
3547360GKNUnited KingdomWater2016PublicAutomobiles & ComponentsConsumer DiscretionaryMexicoSantiagoPhysical-Increased water stressSuppliers would be required to procure water at higher costUnknownUnknownLowWater management incentivesLow
3557577Gold Fields LimitedSouth AfricaWater2016PublicMaterialsSouth AfricaOrangePhysical-Increased water stressHigher operating costsA number of the products required by Gold Fields’ operations are highly water intensive to produce. Examples of such products include: diesel, cyanide and electricity. Gold Fields’ South Deep mine in South Africa is in a particularly water stressed region. Electricity production in South Africa is water intensive and consumes 1.38m3 of water per MWh of electricity produced. Increased water stress may limit the production of water intensive products which could in turn disrupt Gold Field’s operations. Alternative suppliers may need to be found at an increased cost to operations.1-3 yearsProbableLow-mediumOther: reduced reliance on water intensive productsSupplier engagement and diversification is managed in house.In order to manage this risk, Gold Fields South Deep has issued an initial expression of interest for a 40MW photovoltaic on-site solar electricity generation plant.
3567577Gold Fields LimitedSouth AfricaWater2016PublicMaterialsGhanaOther: VoltaPhysical-Increased water scarcityHigher operating costsSeasonal variation in rainfall poses a risk to the electricity supply of Gold Fields’ Ghanaian operations. Tarkwa and Damang continue to source their power from the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG). Hydro-power schemes contribute some 47% of Ghana’s power, but with dam levels still dropping rapidly, security of electricity supply remains under threat. Daily load-shedding, of between 25% – 30% of the mines’ electricity consumption, was introduced during FY2014 and persisted throughout FY2015.Current-up to 1 yearProbableMedium-highIncreased capital expenditure; Supplier diversificationThe capital cost of the two Genser-owned gas turbine power plants is estimated at US$82 million.To address the current load shedding requirements, Tarkwa and Damang initiated a number of actions during 2015 as part of their five-year energy security plan. This included, making more extensive use of diesel generators at Damang, amid relatively lower diesel prices, and reaching a power management agreement with the Power Ministry for our Ghanaian mines. An important mitigating strategy is a 20 year PPA with independent US-based power producer, Genser Energy. Implementation of this plan commenced in 2015 and permits have been received from the Environmental Protection Agency (EPA) for the construction of two Genser-owned gas turbine power plants near the mines. By January 2018, Genser should be in a position to provide 100% of the power supply needs at Tarkwa and Damang.
3577577Gold Fields LimitedSouth AfricaWater2016PublicMaterialsGhanaOther: VoltaPhysical-Increased water stressHigher operating costsSeasonal variation in rainfall poses a risk to the electricity supply of Gold Fields’ Ghanaian operations. Tarkwa and Damang continue to source their power from the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG). Hydro-power schemes contribute some 47% of Ghana’s power, but with dam levels still dropping rapidly, security of electricity supply remains under threat. Daily load-shedding, of between 25% – 30% of the mines’ electricity consumption, was introduced during FY2014 and persisted throughout FY2015.Current-up to 1 yearProbableMedium-highIncreased capital expenditure; Supplier diversificationThe capital cost of the two Genser-owned gas turbine power plants is estimated at US$82 million.To address the current load shedding requirements, Tarkwa and Damang initiated a number of actions during 2015 as part of their five-year energy security plan. This included, making more extensive use of diesel generators at Damang, amid relatively lower diesel prices, and reaching a power management agreement with the Power Ministry for our Ghanaian mines. An important mitigating strategy is a 20 year PPA with independent US-based power producer, Genser Energy. Implementation of this plan commenced in 2015 and permits have been received from the Environmental Protection Agency (EPA) for the construction of two Genser-owned gas turbine power plants near the mines. By January 2018, Genser should be in a position to provide 100% of the power supply needs at Tarkwa and Damang.
3587838Grupo Televisa S.A.MexicoWater2016PublicMediaConsumer DiscretionaryThe Group does not perform analysis at basin level or river basin that does not apply
3597903H&M Hennes & Mauritz ABSwedenWater2016PublicRetailingConsumer DiscretionaryBangladeshGanges-BrahmaputraPhysical-Increased water stressSupply chain disruptionPollution of surface water due to uncontrolled discharges by industrial and agricultural users has made these sources unavailable for use by suppliers and communities, putting increased pressure on ground water reserves which are steadily declining. This puts supplier operations at risk due to supply of water and the health and livelihood of the people in communities who are employed in the industry.4-6 yearsProbableUnknownOther: Engagement with suppliers, NGOs, communities and policy makersLow-mediumIn addition to monitoring the waste water discharge from our supplier factories, we are working within the Partnership for Cleaner Textiles to improve water managment, ensure efficient operations and proper waste water treatment, not only among H&M suppliers, but influencing the whole apparel industry in Bangladesh. H&M's business model is flexible to adapt to changed circumstances and production can be moved to other locations if necessary.
3607903H&M Hennes & Mauritz ABSwedenWater2016PublicRetailingConsumer DiscretionaryChinaYangtze River (Chang Jiang)Regulatory-Regulatory uncertaintySupply chain disruptionPressure on available water and declining quality has led to targets at the national level to improve efficiency and reduce pollution. The implementation of these targets at local or regional level can vary and there is uncertainty at how they may affect the industry in terms of policies and enforcement, which may cause disruptions to supplier operations.4-6 yearsProbableUnknownOther: Engagement with suppliers, NGOs, communities and policy makersLow-mediumAs part of our global program for direct suppliers, we ensure that compliance with waste water standards are enforced and work in improving efficiency in water intense processes such as denim production. We also screen our suppliers against publicly available data on discharge violations to ensure appropriate actions have been taken to avoid violations in the future and encourage suppliers to disclose their performance. With second tier suppliers, whom we do not have direct business relationships with, we engage through Cleaner production programs in partnership with Solidaridad, BMI and NRDC to improve water and chemical management. We have a goal to impact chemical, water and energy managment throughout the value chain, please see section 8.1b for our goals around these collaborations.We monitor regulatory changes, keep close dialogue with suppliers and are developing a collective action project engaging multiple stakeholders in a scalable model to improve local governance of water resources. H&M's business model is flexible to adapt to changed circumstances and production can be moved to other locations if necessary.
3618884Imperial BrandsUnited KingdomWater2016PublicTobaccoConsumer StaplesSpainGuadianaPhysical-Increased water scarcitySupply chain disruption8% of the total tobacco purchased comes from Spain, which is a region with high water stress risk, according to the Maplecroft Water Stress Index; in case of water scarcity issues in this region the products using this tobacco origin would be affected.Current-up to 1 yearProbableLow-mediumSupplier diversificationLow - mediumWe buy tobacco from many different origins and suppliers, which should protect us from a shortage of Spanish tobacco, since it can be substituted by tobacco from other countries.Our leaf procurement team ensures farmers keep enough stock to cover 1/2 years provision, so, in the case of an unexpected issue with the year harvest, there is enough ime to react.Associated costs are not forecasted to be of material significance.
3628027Halliburton CompanyUSAWater2016PublicOil & GasEnergyIndiaIndusPhysical-DroughtHigher operating costsGuar is a crucial component of hydraulic fracturing fluids as a gelling agent. Global production of guar beans is concentrated in Rajasthan, India, and adjacent areas of Pakistan. Although this is a drought resistant crop, persistent disruption to water supplies could reduce supply and therefore increase our operating costs.UnknownUnlikelyLowEngagement with suppliers; Increased investment in new technologyWe have not separately quantified the costs of these strategic responses. This is in part because many of them are integral to our business and cannot therefore be separated out from normal costs of doing business.However, we believe the overall financial cost of these measures will be minimal.Our supply chain teams are in constant contact with suppliers and engage with them on capacity building, performance standards, HSE, and supply chain resilience.We have also developed chemistries that rely on different gelling agents and therefore reduce our exposure to this risk.
3638027Halliburton CompanyUSAWater2016PublicOil & GasEnergyIndiaIndusReputational-Inadequate access to water, sanitation and hygieneHigher operating costsGuar is a crucial component of hydraulic fracturing fluids as a gelling agent. Global production of guar beans is concentrated in Rajasthan, India, and adjacent areas of Pakistan. Although this is a drought resistant crop, persistent disruption to water supplies could reduce supply and therefore increase our operating costs.UnknownUnlikelyLowEngagement with suppliers; Increased investment in new technologyWe have not separately quantified the costs of these strategic responses. This is in part because many of them are integral to our business and cannot therefore be separated out from normal costs of doing business.However, we believe the overall financial cost of these measures will be minimal.Our supply chain teams are in constant contact with suppliers and engage with them on capacity building, performance standards, HSE, and supply chain resilience.We have also developed chemistries that rely on different gelling agents and therefore reduce our exposure to this risk.
3648027Halliburton CompanyUSAWater2016PublicOil & GasEnergyIndiaIndusPhysical-Climate changeHigher operating costsGuar is a crucial component of hydraulic fracturing fluids as a gelling agent. Global production of guar beans is concentrated in Rajasthan, India, and adjacent areas of Pakistan. Although this is a drought resistant crop, persistent disruption to water supplies could reduce supply and therefore increase our operating costs.UnknownUnlikelyLowEngagement with suppliers; Increased investment in new technologyWe have not separately quantified the costs of these strategic responses. This is in part because many of them are integral to our business and cannot therefore be separated out from normal costs of doing business.However, we believe the overall financial cost of these measures will be minimal.Our supply chain teams are in constant contact with suppliers and engage with them on capacity building, performance standards, HSE, and supply chain resilience.We have also developed chemistries that rely on different gelling agents and therefore reduce our exposure to this risk.
3658027Halliburton CompanyUSAWater2016PublicOil & GasEnergyIndiaIndusPhysical-FloodingHigher operating costsGuar is a crucial component of hydraulic fracturing fluids as a gelling agent. Global production of guar beans is concentrated in Rajasthan, India, and adjacent areas of Pakistan. Although this is a drought resistant crop, persistent disruption to water supplies could reduce supply and therefore increase our operating costs.UnknownUnlikelyLowEngagement with suppliers; Increased investment in new technologyWe have not separately quantified the costs of these strategic responses. This is in part because many of them are integral to our business and cannot therefore be separated out from normal costs of doing business.However, we believe the overall financial cost of these measures will be minimal.Our supply chain teams are in constant contact with suppliers and engage with them on capacity building, performance standards, HSE, and supply chain resilience.We have also developed chemistries that rely on different gelling agents and therefore reduce our exposure to this risk.
3668027Halliburton CompanyUSAWater2016PublicOil & GasEnergyIndiaIndusPhysical-Increased water scarcityHigher operating costsGuar is a crucial component of hydraulic fracturing fluids as a gelling agent. Global production of guar beans is concentrated in Rajasthan, India, and adjacent areas of Pakistan. Although this is a drought resistant crop, persistent disruption to water supplies could reduce supply and therefore increase our operating costs.UnknownUnlikelyLowEngagement with suppliers; Increased investment in new technologyWe have not separately quantified the costs of these strategic responses. This is in part because many of them are integral to our business and cannot therefore be separated out from normal costs of doing business.However, we believe the overall financial cost of these measures will be minimal.Our supply chain teams are in constant contact with suppliers and engage with them on capacity building, performance standards, HSE, and supply chain resilience.We have also developed chemistries that rely on different gelling agents and therefore reduce our exposure to this risk.
3678054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaOther: San JoaquinPhysical-Projected water stressSupply chain disruptionSuppliers of produce are in a water scarce region with an extremely high baseline water stress risk. There is a high level of competition for available water and freshwater availability is an ongoing concern. This particular river basin also sees a high level of fluctuation in river discharge. For these reasons and others, this region is susceptible to increased water costs. If and when water costs rise to a point where suppliers either experience a produce supply shortage or are required to raise the price of their produce more than 8%, on average, this would result in a substantive change for Caesars. In the event that there is a shortage, Caesars would be required to procure produce from alternative suppliers or make substantial changes to their food menus. All Caesars properties incorporating produce into their menu would be impacted. Procuring produce from alternative suppliers would most likely cost more.>6 yearsProbableLow-mediumSupplier diversificationThe threshold for substantive change to Caesar’s produce cost is $5 million or an 8% increase in food costs.In the context of Caesars’ portfolio-wide operations, the procurement of produce from alternate suppliers will have a low to medium negative impact on the cost of goods.Caesars is proactively planning for water-related impact on their supply chain through the preparation of alternate supplier lists. Switching from primary to secondary and third tier suppliers is likely going to cost more, but these alternate suppliers will be more reliable during a water shortage event because they are selected based on geographic locations with less water stress. While supplier diversification acts as a safety net, it does not allow Caesars to benefit from primary supplier discounts. In the unfortunate event of a water shortage effecting the San Joaquin basin, Caesars will not be the only business looking to alternate suppliers for their produce. This spike in demand will also drive up prices.
36857963Birla CarbonUSAWater2016PublicChemicalsMaterialsUnited States of AmericaMississippi RiverPhysical-Projected water stressSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
3698054Caesars EntertainmentUSAWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesConsumer DiscretionaryUnited States of AmericaMississippi RiverPhysical- Pollution of water sourceSupply chain disruptionSuppliers of cattle are in an area of the country that is highly dependent on the use of discharged and treated wastewater. Over time, suppliers may begin to incur higher operational cost resultant of more stringent water monitoring. In the event that the water quality is unacceptable, Caesars’ beef supply may be disrupted. In this case, Caesars would be required to procure beef from alternative suppliers or make substantial changes to their food menus. All Caesars properties incorporating beef into their menu would be impacted. Procuring beef from alternative suppliers would most likely cost more.>6 yearsUnlikelyLowSupplier diversificationThe threshold for substantive change to Caesar’s beef cost is $2 million or 8% increase in beef costs.In the context of Caesars’ portfolio-wide operations, the procurement of beef from alternate suppliers will have a low, but undesirable, impact on the cost of beef.Caesars is proactively planning for water-related impact on their supply chain through the preparation of alternate supplier lists. Switching from primary to secondary and third tier suppliers is likely going to cost more, but these alternate suppliers will be more reliable during a water shortage event because they are selected based on geographic locations with less of a water scarcity risk. While supplier diversification acts as a safety net, it does not allow Caesars to benefit from primary supplier discounts. In the unfortunate event of a water quality issue effecting the Mississippi River basin, Caesars will not be the only business looking to alternate suppliers for their beef. This spike in demand will also drive up prices.
3708104Harmony Gold Mining Co LtdSouth AfricaWater2016PublicMaterialsPapua New GuineaOther: WatutPhysical-Dependency on hydropowerPlant/production disruption leading to reduced outputHarmony has aimed to maximise its use of alternative energy resources in Papua New Guinea. As such, in 2011, Hidden Valley was connected to a hydropower transmission line as a part of the Papua New Guinea national electricity grid. The Hidden Valley operation is now predominantly driven by a hydro-powered electricity grid. In FY2015 83% of Hidden Valley’s power consumption was generated by hydropower which is an increase on 70% in the previous year.Intermittent or reduced water supply (possibly due to drought) limits the generation capacity of a hydro power plant and subsequently limits the electricity supply. Mining is highly dependent on the supply of electricity and any shortages have the potential to significantly compromise Harmony’s PNG operations.It is difficult to determine the period over which Harmony is likely to experience this risk. In the event that the national utility is not able to supply Harmony’s electricity demand its operations will require an alternative energy source. This may result in an increased reliance on diesel generators and consequently increase operational costs.UnknownUnlikelyMediumEngagement with suppliers; Infrastructure investmentElectricity from the national grid in Papua New Guinea is charged at R1.97 /kWh. It costs Harmony R3.15 /kWh to generate electricity from diesel generators. The move from grid electricity to diesel generation will increase Harmony’s expenditure on electricity by approximately 60 %.The costs associated with engaging with the national utility and developing energy efficiency strategies are covered internally. Therefore Harmony is not exposed to any additional costs.Harmony’s response strategy includes engaging with energy suppliers, investing in diesel generation and developing energy efficiency policies.Harmony communicates with the national utility of PNG through its greater stakeholder engagement process. This process enables Harmony to discuss and understand when the utility is likely to experience generation challenges because of water shortages. In this way Harmony is able to plan when to activate their alternative energy sources. Diesel generators will be used to meet Harmony’s electricity demand in periods when the national utility is unable to supply the required loads. Harmony currently produces 17% of its own electricity using diesel generators and thus has the ability to produce its own electricity but may require further capacity if energy shortages became persistent. Harmony also has a revised energy efficiency and climate change policy and strategy. This strategy articulates its commitment to improving energy efficiency and will particularly beneficial to minimising the impacts incurred as a result of electricity shortages. The cost estimate for this response strategy was quantified by calculating the cost to generate electricity from diesel generators compared to the current electricity price Harmony pays to the national utility at its PNG operations.
3718212Heineken NVNetherlandsWater2016PublicFood & Beverage ProcessingConsumer StaplesUnited States of AmericaOther: Corn BeltPhysical-Increased water stressSupply chain disruptionGiven the fact that agricultural raw materials including corn need water to grow, a decrease in (or absence of) water availability for these crops could result in a lesser quality (and so an inferior quality of beer), a lesser quantity and so a potential price increase (resulting in a decrease of the profit margin).>6 yearsProbableLow-mediumSupplier diversificationLow-mediumWe source on a global scale and not every year from the same suppliers and regions. Raw materials are priced according global markets, cost impact will be limited.
3728241Henkel AG & Co. KGaAGermanyWater2016PublicConsumer Durables, Household and Personal ProductsConsumer StaplesIndonesiaNot knownPhysical-DroughtChanging weather patterns or natural disasters (which may be driven by climate change) could lead to price increases and/or supply shortages for important raw materials and packaging materials, e.g. for palm oil and Palm kernel oil. Palm kernel oil is an important raw material for surfactants, an active washing substance in laundry detergents and household cleaners as well as cosmetic products. If dry weather conditions brought by the El Niño weather pattern, as predicted for 2016, would curb output in major palm oil producer countries Indonesia and Malaysia, this may impact the price and demand for palm kernel oil.UnknownProbableLowGreater due diligence; Supplier diversification; Other: Henkel combats procurement risks through a comprehensive risk management approach. This involves the proactive management of Henkel's vendor portfolio along with strategies designed to secure both price and volume through the conclusion of contracts. Henkel works within interdisciplinary teams (e.g. Research and Development, Supply Chain Management and Purchasing) on devising alternative formulations and different forms of packaging, so that the company can respond to unforeseen fluctuations in raw material prices. In addition, Henkel avoid becoming dependent on individual vendors so as to better secure the constant supply of the goods and services that it requires. Henkel puts an emphasis on reducing price and supply risks while maintaining uniformly high quality. As part of an active price management approach, Henkel secures prices over the long term, both by means of contracts and, when appropriate and possible, financial hedging instruments. In order to minimize the risk of supplier default, Henkel uses supplier default clauses and performs detailed risk assessments of suppliers to determine their financial stability. With the aid of an external, independent financial services provider, Henkel continuously monitors important suppliers whose financial situation is regarded as critical. If a high risk of supplier default is identified, Henkel systematically prepares back-up plans to ensure continuous supply.Henkel combats procurement risks through a comprehensive risk management approach. This involves the proactive management of Henkel’s vendor portfolio along with strategies designed to secure both price and volume through the conclusion of contracts. Henkel works within interdisciplinary teams (e.g. Research and Development, Supply Chain Management and Purchasing) on devising alternative formulations and different forms of packaging, so that the company can respond to unforeseen fluctuations in raw material prices. In addition, Henkel avoid becoming dependent on individual vendors so as to better secure the constant supply of the goods and services that it requires. Henkel puts an emphasis on reducing price and supply risks while maintaining uniformly high quality. As part of an active price management approach, Henkel secures prices over the long term, both by means of contracts and, when appropriate and possible, financial hedging instruments. In order to minimize the risk of supplier default, Henkel uses supplier default clauses and performs detailed risk assessments of suppliers to determine their financial stability. With the aid of an external, independent financial services provider, Henkel continuously monitors important suppliers whose financial situation is regarded as critical. If a high risk of supplier default is identified, Henkel systematically prepares back-up plans to ensure continuous supply.
3738884Imperial BrandsUnited KingdomWater2016PublicTobaccoConsumer StaplesIndiaOther: SeveralPhysical-Increased water scarcitySupply chain disruption9% of the total tobacco purchased comes from India, which is a region with high water stress risk, according to the Maplecroft Water Stress Index; in case of water scarcity issues in this region the products using this tobacco origin would be affected.Current-up to 1 yearProbableLow-mediumSupplier diversificationLow-mediumWe buy tobacco from many different origins and suppliers, which should protect us from a shortage of Indian tobacco, since it can be substituted by tobacco from other countries. Our leaf procurement team ensures farmers keep enough stock to cover 1/2 years provision, so, in the case of an unexpected issue with the year harvest, there is enough ime to react.Associated costs are not forecasted to be of material significance.
3748241Henkel AG & Co. KGaAGermanyWater2016PublicConsumer Durables, Household and Personal ProductsConsumer StaplesMalaysiaPhysical-DroughtChanging weather patterns or natural disasters (which may be driven by climate change) could lead to price increases and/or supply shortages for important raw materials and packaging materials, e.g. for palm oil. Palm kernel oil is an important raw material for surfactants, an active washing substance in laundry detergents and household cleaners as well as cosmetic products. If dry weather conditions brought by the El Niño weather pattern, as predicted for 2016, would curb output in major palm oil producer countries Indonesia and Malaysia, this may impact the price and demand for palm kernel oil.UnknownProbableLowGreater due diligence; Supplier diversification; Other: Henkel combats procurement risks through a comprehensive risk management approach. This involves the proactive management of Henkel's vendor portfolio along with strategies designed to secure both price and volume through the conclusion of contracts. Henkel works within interdisciplinary teams (e.g. Research and Development, Supply Chain Management and Purchasing) on devising alternative formulations and different forms of packaging, so that the company can respond to unforeseen fluctuations in raw material prices. In addition, Henkel avoid becoming dependent on individual vendors so as to better secure the constant supply of the goods and services that it requires. Henkel puts an emphasis on reducing price and supply risks while maintaining uniformly high quality. As part of an active price management approach, Henkel secures prices over the long term, both by means of contracts and, when appropriate and possible, financial hedging instruments. In order to minimize the risk of supplier default, Henkel uses supplier default clauses and performs detailed risk assessments of suppliers to determine their financial stability. With the aid of an external, independent financial services provider, Henkel continuously monitors important suppliers whose financial situation is regarded as critical. If a high risk of supplier default is identified, Henkel systematically prepares back-up plans to ensure continuous supply.Henkel combats procurement risks through a comprehensive risk management approach. This involves the proactive management of Henkel’s vendor portfolio along with strategies designed to secure both price and volume through the conclusion of contracts. Henkel works within interdisciplinary teams (e.g. Research and Development, Supply Chain Management and Purchasing) on devising alternative formulations and different forms of packaging, so that the company can respond to unforeseen fluctuations in raw material prices. In addition, Henkel avoid becoming dependent on individual vendors so as to better secure the constant supply of the goods and services that it requires. Henkel puts an emphasis on reducing price and supply risks while maintaining uniformly high quality. As part of an active price management approach, Henkel secures prices over the long term, both by means of contracts and, when appropriate and possible, financial hedging instruments. In order to minimize the risk of supplier default, Henkel uses supplier default clauses and performs detailed risk assessments of suppliers to determine their financial stability. With the aid of an external, independent financial services provider, Henkel continuously monitors important suppliers whose financial situation is regarded as critical. If a high risk of supplier default is identified, Henkel systematically prepares back-up plans to ensure continuous supply.
3758338Hitachi, Ltd.JapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyThailandChao PhrayaPhysical-Climate change?????????????????????????????????????????????????????????????2011??????????????????????????????????????????3?????????????>6 yearsUnlikelyHighEngagement with suppliers; Supplier diversification; Tighter supplier performance standards???????????????????????????
3768338Hitachi, Ltd.JapanWater2016PublicTechnology Hardware & EquipmentInformation TechnologyThailandChao PhrayaPhysical-Flooding?????????????????????????????????????????????????????????????2011??????????????????????????????????????????3?????????????>6 yearsUnlikelyHighEngagement with suppliers; Supplier diversification; Tighter supplier performance standards???????????????????????????
3778528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaBreede-Gouritz (WMA)Physical-DroughtOther: Higher commodity prices resulting in reduced profitKWV have identified risks posed to the grape growers from which they source in relation to changing precipitation patterns. In the past, reduced rainfall has negatively impacted grape crops in the region from which KWV normally source grapes. As a result KWV sourced grapes from other suppliers who weren’t impacted by climatic conditions. Although there was no impact on the business in terms of increased costs, this highlights the vulnerability of some of KWV’s key suppliers to water stress.UnknownProbableLowSupplier diversificationThere were no costs associated with sourcing grapes from alternative suppliers in this instance.KWV sourced grapes from alternative suppliers in this instance. There were no cost implications.
3788528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaBerg-Olifants (WMA)Physical-Increased water scarcityOther: Brand damage and increased operational costsGABS have identified risks relating to a lack of water available for washing buses as a result of increased water shortages in South Africa. In the event that buses cannot be cleaned regularly due to water constraints, there is a risk of customer dissatisfaction and potentially loss of revenue. In the event that the suppliers who wash the GABS buses are required to purchase back-up supplies of water, there will also be cost impacts for GABS as these increased costs are passed on to the customer.>6 yearsUnlikelyMediumOther: There is currently no response strategy in place; however this risk will be monitored over timeNoneThere is currently no response strategy in place; however this risk will be monitored over time.
3798528Hosken Consolidated InvestmentsSouth AfricaWater2016PublicHotels, Restaurants & Leisure, and Tourism ServicesIndustrialsSouth AfricaOther: All South African river basinsPhysical-Increased water scarcityOther: Disruption to operations and higher operating costsAll HCI companies depend to some extent on a reliable source of electricity from the national electricity provider, Eskom, for power. The vast majority of Eskom’s power production comes from coal-fired power stations which rely on significant quantities of water for cooling purposes. In the increasingly likely scenario of future water shortages in South Africa, Eskom is likely to experience disruptions due to a lack of water and in the event that water needs to be obtained by other means (e.g. desalination or through new water infrastructure), the cost of electricity could further increase. Eskom also faces risks in relation to changing precipitation patterns and an intensification of rainfall events causing flooding, as damages can result from using wet coal in the power stations. Should Eskom be impacted by these water related risks, HCI companies could face both increasing disruptions to electricity supplies and increasing costs.Current-up to 1 yearHighly probableMediumOther: Investment in energy efficiency / back-up energy suppliesA generator can cost in the range of R100 000 – R1 000 000, depending on the power requirements. This is not considered to be significant in the context of the whole organisation.In order to manage this risk, a number of our subsidiaries are investing in back-up power supplies (predominantly diesel generators) to reduce vulnerability to power cuts from Eskom as a result of current operational difficulties (some of which are related to water). This will allow continuity of operations for facilities reliant on electricity in the scenario of increasing disruptions to electricity supplies resulting from water related impacts to Eskom. The cost has been estimated based on our knowledge of generator costs from previous projects.
3808663SK HynixSouth KoreaWater2016PublicSemiconductors & Semiconductors EquipmentInformation TechnologyRest of worldOther: River basin near suppliers' business sitePhysical-Climate changeDisruption to salesLots of source materials used for manufacturing semiconductor comes from different countries so we think our major suppliers can face similar water-related risks which we consider. Major suppliers in Asia can be under climate change such as irregular seasonal precipitation, earthquake which can lead shipping delay of source materials or unstable supply of source materials.4-6 yearsUnlikelyMediumEngagement with suppliers; Other: Strengthen internal resourcesNot impact our operating profitsSK hynix recognizes importance of water and water-related risks and values how we manage the risks ofsuppliers. We consider the importance of preparing for and developing big frame to manage water-related risks internally and to share water-related risks, strategies with suppliers. Full internal resources for this are not prepared yet, so we have limited request for our suppliers to report on water management and are considering how we share the water-related information with our suppliers. We, however, have plan to request our suppliers for report on their water-related information.
3818698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesSpainOther: All river basins where IBERDROLA is locatedRegulatory-Changed product standardsHigher operating costsAs a consequence of the fulfilment of future new standards by the suppliers and the facilities adaptation to these new raw materials may increase operational costs.>6 yearsUnlikelyLow-mediumEngagement with suppliers; Increased investment in new technology€10 million%5 amount invested in R&D in IBERDROLA FY2015. IBERDROLA is committed to research, development and innovation, which are strategic variables for confronting the challenges facing the Company. We are in a continuous improvement to adapt all our facilities by implementation of an innovative management and technology strategy over the last decade, which has led us to become a world leader and benchmark in R&D, thanks to the successful implementation of a common model in all areas, collaboration with our technology providers and the promotion of culture of innovation. We value building strong relationships with our diverse suppliers; these relationships give us the competitive advantage as being one of the best in the utility market. Through our efforts, we are able to seek out suppliers who are capable of providing the best service in terms of cost, quality and delivery. We have in place a Contracting and relationship with suppliers policy. The cost to cope with this risk is based on our R&D investment.
3828698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesSpainOther: All river basins where IBERDROLA is locatedReputational-Negative media coverageBrand damageOur company can be involved in a problem of a supplier, despite being totally outside them. This may result in a damage on the image and reputation of the Group, and finally in a reduction in capital availability.>6 yearsUnlikelyLow-mediumEngagement with suppliers€11 millionIBERDROLA has developed a GLOBAL SUPPLIER MANAGEMENT MODEL (including a Total Supplier Management System) that enables the company to register and classify its suppliers. Tenders by IBERDROLA include contractual conditions requiring that the parties act within stringent levels of security, occupational risk prevention, and respect for the environment. Once the suppliers have registered in our Global Suppliers Management System, suppliers are evaluated on the basis of their technical and production capabilities, among other things, and their status in the following areas is weighted: - Quality - Safety and occupational risk prevention - Environment - Social Responsibility - Economic and financial condition - Prior references - Anti-bribery & Corruption assessment. The status of suppliers as regards sustainability, the first four areas mentioned above, has a weight of 40% in the total score. To improve the status of suppliers with a lesser performance in this area, involvement, awareness-raising and motivation activities are conducted throughout the year, in order for suppliers to achieve certification in quality, the environment and/or occupational risk prevention.The cost to cope with this risk in 2015 is related to Environmental Mangement System Costs and Supplier Management Cost.
3838698Iberdrola SASpainWater2016PublicElectric Utilities & Independent Power Producers & Energy Traders (including fossil, alternative and nuclear energy)UtilitiesSpainOther: All river basins where IBERDROLA is locatedPhysical-FloodingHigher operating costsIncreased operational cost related to important materials for ongoing business operation.>6 yearsUnlikelyMediumInfrastructure maintenance€8.8 millionEnvironmental Corporate Department has included, as part of the Environmental Scorecard of the Group, the most important operational risks per region and business to get an overall view and to raise coordinated actions plans if needed. IBERDROLA, by supporting environmental certification of their suppliers, makes possible to minimize the risk of natural disasters including floods. Moreover, to minimise the impact of possible incidents, insurance policies are contracted.The cost associated with this risk has been calculated as the 10% of investments in new plants in Spain.
3848719Hyundai Steel CoSouth KoreaWater2016PublicMining - Iron, Aluminum, Other MetalsMaterialsAustraliaPhysical-Climate changeSupply chain disruptionIn Australia, there are many of problems in mining operation due to the abnormal temperature phenomena from climate change. Since more than a half of this our raw material is from Australia, we are directly affected by unstable supply due to the mining operation problem.1-3 yearsProbableMedium-highSupplier diversificationno extra cost for strategySince we discover the supply source with mostly similar condition, there is no extra cost for strategy conduction.
3858724IAMGOLD CorporationCanadaWater2016PublicMaterialsPhysical-Climate changeSupply chain disruptionExtreme weather events could affect both the upstream and downstream the supply chain by causing major delays. These delays could hinder production and / or product sales.Supplier diversification; Other: having adequate lead times that allow for some delays
3868868Illovo Sugar LtdSouth AfricaWater2016PublicFood & Beverage ProcessingConsumer StaplesSouth AfricaOther: All basins in which we operate in Southern AfricaOther: Increased pressure on water supply, drought, revoking of abstraction permits, poor maintenance of irrigation infrastructureOther: Maintained productivityOver half of the cane processed by Illovo is produced by independent outgrowers who vary in size from extensive farms to a few hectares. A drop in sugar cane supply from outgrowers due to increasing drought frequency and intensity or overall water scarcity could significantly impact Illovo’s supply chain and consequently our productivity.4-6 yearsHighly probableHighInfrastructure investmentR240 million – cost of one year’s equivalent replant by outgrowers in South Africa.Maintaining and developing outgrower supply remains a key area of focus for Illovo. In many respect the risks to outgrowers are the same as those experienced by Illovo. We actively engage with our outgrowers on this issue. To alleviate these risks, Illovo has funded water conveyance infrastructure servicing vulnerable outgrowers to ensure a sustainable sugarcane supply. Outgrowers also benefit from Illovo’s support for drought resistant crop development and investment in new technology. A time frame of five years is envisioned with an expected success of return to normal cane supply.
38757963Birla CarbonUSAWater2016PublicChemicalsMaterialsUnited States of AmericaMississippi RiverRegulatory-Regulation of discharge quality/volumes leading to higher compliance costsSupply chain disruptionUnknownProbableUnknownDevelop flood emergency plans; Engagement with suppliers; Infrastructure investment; Greater due diligence; Promote best practice and awareness; Supplier diversification
3888884Imperial BrandsUnited KingdomWater2016PublicTobaccoConsumer StaplesMadagascarTsiribihinaReputational-Negative media coverageSupply chain disruptionWe only buy 1% of our tobacco in Madagascar, but this region is especially critical with regards to agricultural practices.If our tobacco suppliers do not use good environmental practices, then the sustainable supply of tobacco and our reputation can be negatively affected.Current-up to 1 yearProbableLow-mediumEngagement with suppliers; Promote best practice and awareness; Tighter supplier performance standardsLow-mediumOur agronomists and field technicians provide support and training to local farmers who supply us directly with tobacco leaf. Personnel in our technical departments work to raise awareness of environmental and safety issues. This includes training on the safe and correct use of pesticides and fertilizers, and techniques to help farmers reduce the need for them; improvements to tobacco field irrigation; and soil and water analyses to assess nutrient requirements and control water pollution.
3898884Imperial BrandsUnited KingdomWater2016PublicTobaccoConsumer StaplesBrazilOther: Río PardoReputational-Negative media coverageSupply chain disruptionBrazil is one of our major tobacco suppliers country, we buy 18% of our tobacco there.It is the country in our supply chain where we have our biggest water footprint, according to the "Water Footprint tool".In case of insufficient freshwater for irrigation our Company would face a decrease in the tobacco supply from Brazil.Current-up to 1 yearProbableLow-mediumEngagement with suppliers; Promote best practice and awareness; Water management incentivesLow-mediumBrazil Water Project - The Altadis Foundation, part of Imperial Tobacco Group, implemented the ‘Water Guardian Project’. This initiative in southern Brazil encourages leaf growers to help conserve the region’s water resource. The Water Guardian Project was launched in May 2011 in the Rio Pardo basin – an important leaf sourcing area for Imperial Tobacco. In conjunction with one of our key supply partners and with the support of a local university and the local authorities, the project rewards farmers in the region who help to protect the water supply.
3908884Imperial BrandsUnited KingdomWater2016PublicTobaccoConsumer StaplesBrazilOther: Río PardoPhysical-Projected water stressSupply chain disruptionBrazil is one of our major tobacco suppliers country, we buy 18% of our tobacco there.It is the country in our supply chain where we have our biggest water footprint, according to the "Water Footprint tool".In case of insufficient freshwater for irrigation our Company would face a decrease in the tobacco supply from Brazil.Current-up to 1 yearProbableLow-mediumEngagement with suppliers; Promote best practice and awareness; Water management incentivesLow-mediumBrazil Water Project - The Altadis Foundation, part of Imperial Tobacco Group, implemented the ‘Water Guardian Project’. This initiative in southern Brazil encourages leaf growers to help conserve the region’s water resource. The Water Guardian Project was launched in May 2011 in the Rio Pardo basin – an important leaf sourcing area for Imperial Tobacco. In conjunction with one of our key supply partners and with the support of a local university and the local authorities, the project rewards farmers in the region who help to protect the water supply.
3918884Imperial BrandsUnited KingdomWater2016PublicTobaccoConsumer StaplesBrazilOther: Río PardoRegulatory-Higher water pricesSupply chain disruptionBrazil is one of our major tobacco suppliers country, we buy 18% of our tobacco there.It is the country in our supply chain where we have our biggest water footprint, according to the "Water Footprint tool".In case of insufficient freshwater for irrigation our Company would face a decrease in the tobacco supply from Brazil.Current-up to 1 yearProbableLow-mediumEngagement with suppliers; Promote best practice and awareness; Water management incentivesLow-mediumBrazil Water Project - The Altadis Foundation, part of Imperial Tobacco Group, implemented the ‘Water Guardian Project’. This initiative in southern Brazil encourages leaf growers to help conserve the region’s water resource. The Water Guardian Project was launched in May 2011 in the Rio Pardo basin – an important leaf sourcing area for Imperial Tobacco. In conjunction with one of our key supply partners and with the support of a local university and the local authorities, the project rewards farmers in the region who help to protect the water supply.
3928884Imperial BrandsUnited KingdomWater2016PublicTobaccoConsumer StaplesTanzaniaOther: SeveralReputational-Negative media coverageWater supply disruption8% of the total tobacco purchased comes from Tanzania.If our tobacco suppliers do not use good environmental practices, then the sustainable supply of tobacco and our reputation can be negatively affected.Current-up to 1 yearProbableLow-mediumEngagement with suppliers; Promote best practice and awareness; Tighter supplier performance standardsLow - mediumSocial Responsibility in Tobacco Production: Our suppliers and growers are encouraged to establish sustainable agricultural and post-harvest practices. These include good agricultural practices such as integrated pest management, soil conservation, water conservation and pollution prevention to maximise yields and minimise dependence on agrochemicals; energy conservation techniques to improve curing efficiency; the planting of woodlots for tobacco farmers to become self-sufficient in fuel; and farmer training in safety and environmental management. More information on SRiTP is available by visiting www.LeafTc.co.uk.
3939730JBS S/ABrazilWater2016PublicFood & Beverage ProcessingConsumer StaplesBrazilAmazonasPhysical-Increased water scarcityOther: Constraint to future growthPotential Risks to agriculture in Certain regions due to changes in water availability. This can affect the supply of raw material for the company, such as cattle, poultry, pork and animal feed.4-6 yearsProbableMedium-highAlignment of public policy positions with water stewardship goalsHigh. This strategic cost classification considers the necessary investment to perform an adequate response to the identified risk.Environmental Monitoring System of cattle suppliers, which assists in combating deforestation. Partnership projects with investors to develop integrated production (farming, forestry and livestock).JBS supports projects like the New Field Program (Programa Novo Campo), which promotes sustainable practices and spring preservation to increase the productivity of farms in the Amazon region, in order to develop a new operating model that preserves natural resources and brings financial benefits to the ranchers in the region.
3949031InditexSpainWater2016PublicRetailingConsumer DiscretionaryBangladeshNot knownPhysical-Increased water stressBrand damageSuppliers may incur in water stress due to inefficient use of water and inefficient wastewater treatments. This may have detrimental impacts on a supplier's reputation and to the company’s reputation by associationCurrent-up to 1 yearProbableLow-mediumOther: Comply with local legal requirements and company own internal standards, whichever is more stringentCost of response strategy has been estimated as medium.In 2015, Inditex continued to integrate sustainability criteria for the use of water in all of its business areas, thanks to the implementation of its Global Water Management Strategy. The rational use of water and our commitment to “zero discharge” of undesirable chemical substances, directly related to water quality, are given special attention in the Master Plan for Water Management in the Supply Chain. This plan sets out the joint work of Inditex and its suppliers to integrate both of these criteria in the whole of the production process. During 2014 Inditex developed the Green to Wear standard for environmental sustainability for wet process factories (pre-treatment, dye, printing, finish, wash, tanneries and artificial leather). The production of Green to Wear items is in line with the philosophy of cleaner production and less intense resource consumption. In 2015, we continue working for suppliers to follow the Green to Wear standard in their wet processes through specific technical training projects. In 2015, the participation in these projects of 200 direct suppliers and after 404 wet processes mills audited and active, has let improve traceability and environmental performance of our supply chain. This improvement has been achieved through the implementation of real practical measures which improve the sustainable and efficient management of wet processes mills in the following areas: raw materials, water, technology and processes, chemicals, wastewaters, waste and energy. Thus, all aligned, we advance towards the commitment of zero discharge of hazardous substances in 2020. Medium cost of response strategy has been estimated regarding the relation between the suppliers placed in Bangladesh and global supply chain. Audits and training sessions across our supply chain in have involve a cost of 1,228,000 €. Further information at http://www.wateractionplan.com
3959031InditexSpainWater2016PublicRetailingConsumer DiscretionaryBangladeshNot knownPhysical-Projected water stressBrand damageSuppliers may incur in water scarcity due to inefficient use of water and inefficient wastewater treatments. This may have detrimental impacts on a supplier's reputation and to the company’s reputation by associationCurrent-up to 1 yearHighly probableMediumEngagement with suppliersCost of response strategy has been estimated as medium.Inditex is one of the main promoters of the Bangladesh Water PaCT: Partnership for Cleaner Textile, seeks to improve the sector of wet processes in Bangladesh, contributing to the well-being of its employees and the community and encouraging competition in the long term. Adherence to this program of many of our supply chain in Bangladesh has enabled savings of 13.4 million cubic meters of water per year and has avoided the emission of 169,400 tons of CO2, and dumping 10.6 million cubic meters of wastewater.Thanks to the Bangladesh Water PaCT and the environmentally sustainable production standard for Inditex Green to Wear products that guides the actions of our suppliers, we have been able to identify personalized measures for greater energy and water savings and better management of the waste water of our suppliers. Medium cost of response strategy has been estimated regarding the relation between the suppliers placed in Bangladesh and global supply chain. The program Bangladesh Water PaCT has reached a total investment of $ 28.4 million. Further information at http://www.textilepact.org/
3969031InditexSpainWater2016PublicRetailingConsumer DiscretionaryChinaNot knownPhysical-Increased water stressBrand damageSuppliers may incur in water stress due to inefficient use of water and inefficient wastewater treatments. This may have detrimental impacts on a supplier's reputation and to the company’s reputation by associationCurrent-up to 1 yearProbableLow-mediumOther: Comply with local legal requirements or company own internal standards, whichever is more stringentCost of response strategy has been estimated as medium.In 2015, Inditex continued to integrate sustainability criteria for the use of water in all of its business areas, thanks to the implementation of its Global Water Management Strategy. The rational use of water and zero discharge commitment of undesirable chemical substances, directly related to water quality, are given special attention in the Master Plan for Water Management in the Supply Chain. This plan sets out the joint work of Inditex and its suppliers to integrate both of these criteria in the whole of the production process. We continue working for suppliers to follow Green to Wear standard in their wet processes through specific technical training projects. The participation in these projects of 200 direct suppliers and after 404 wet processes mills audited and active, has let improve traceability and environmental performance of our supply chain. We work with University of A Coruña in the analysis of most relevant chemicals in textile wastewater. This effort allows us continuous improvement of Green to Wear standard methodology and progress towards 0 discharge goal. We also work on the analysis and improvement of supplier’s water purification. Since 2014, Inditex eliminated the use of undesired water repellents in supply chain. Our commitment to zero discharge is also developed through the Free Policy of Perfluorocarbons (PFCs). This policy, mandatory for all our suppliers, demands removal of perfluorocarbon compounds in finishes of water repellency of our garments. Similarly, we inform our suppliers about PFCs free alternatives available on the market. In 2015 we worked with 90 direct suppliers to promote substitution of these unwanted substances for more sustainable products. Medium cost of response strategy has been estimated regarding the relation between the suppliers placed in China and global supply chain. Audits and training sessions across our supply chain in have involve a cost of 1,228,000€. Further information at http://www.wateractionplan.com
3979031InditexSpainWater2016PublicRetailingConsumer DiscretionaryIndiaNot knownPhysical-Projected water stressBrand damageSuppliers may incur in water stress due to inefficient use of water and inefficient wastewater treatments. This may have detrimental impacts on a supplier's reputation and to the company’s reputation by associationCurrent-up to 1 yearProbableLow-mediumOther: Comply with local legal requirements or company own internal standards, whichever is more stringentCost of response strategy has been estimated as medium.In 2015, Inditex continued to integrate sustainability criteria for the use of water in all of its business areas, thanks to the implementation of its Global Water Management Strategy. The rational use of water and zero discharge commitment of undesirable chemical substances, directly related to water quality, are given special attention in the Master Plan for Water Management in the Supply Chain. This plan sets out the joint work of Inditex and its suppliers to integrate both of these criteria in the whole of the production process. We continue working for suppliers to follow Green to Wear standard in their wet processes through specific technical training projects. The participation in these projects of 200 direct suppliers and after 404 wet processes mills audited and active, has let improve traceability and environmental performance of our supply chain. We work with University of A Coruña in the analysis of most relevant chemicals in textile wastewater. This effort allows us continuous improvement of Green to Wear standard methodology and progress towards 0 discharge goal. We also work on the analysis and improvement of supplier’s water purification. Since 2014, Inditex eliminated the use of undesired water repellents in supply chain. Our commitment to zero discharge is also developed through the Free Policy of Perfluorocarbons (PFCs). This policy, mandatory for all our suppliers, demands removal of perfluorocarbon compounds in finishes of water repellency of our garments. Similarly, we inform our suppliers about PFCs free alternatives available on the market. In 2015 we worked with 90 direct suppliers to promote substitution of these unwanted substances for more sustainable products. Medium cost of response strategy has been estimated regarding the relation between the suppliers placed in India and global supply chain. Audits and training sessions across our supply chain in have involve a cost of 1,228,000€. Further information at http://www.wateractionplan.com
3989031InditexSpainWater2016PublicRetailingConsumer DiscretionaryTurkeyNot knownPhysical-Projected water stressBrand damageSuppliers may incur in water stress due to inefficient use of water and inefficient wastewater treatments. This may have detrimental impacts on a supplier's reputation and to the company’s reputation by associationCurrent-up to 1 yearProbableLowOther: Comply with local legal requirements or company own internal standards, whichever is more stringentCost of response strategy has been estimated as medium.In 2015, Inditex continued to integrate sustainability criteria for the use of water in all of its business areas, thanks to the implementation of its Global Water Management Strategy. The rational use of water and zero discharge commitment of undesirable chemical substances, directly related to water quality, are given special attention in the Master Plan for Water Management in the Supply Chain. This plan sets out the joint work of Inditex and its suppliers to integrate both of these criteria in the whole of the production process. We continue working for suppliers to follow Green to Wear standard in their wet processes through specific technical training projects. The participation in these projects of 200 direct suppliers and after 404 wet processes mills audited and active, has let improve traceability and environmental performance of our supply chain. We work with University of A Coruña in the analysis of most relevant chemicals in textile wastewater. This effort allows us continuous improvement of Green to Wear standard methodology and progress towards 0 discharge goal. We also work on the analysis and improvement of supplier’s water purification. Since 2014, Inditex eliminated the use of undesired water repellents in supply chain. Our commitment to zero discharge is also developed through the Free Policy of Perfluorocarbons (PFCs). This policy, mandatory for all our suppliers, demands removal of perfluorocarbon compounds in finishes of water repellency of our garments. Similarly, we inform our suppliers about PFCs free alternatives available on the market. In 2015 we worked with 90 direct suppliers to promote substitution of these unwanted substances for more sustainable products. Medium cost of response strategy has been estimated regarding relation between suppliers placed in Turkey and global supply chain. Audits and training sessions across our supply chain in have involve a cost of 1,228,000 €. Further information at http://www.wateractionplan.com
3999031InditexSpainWater2016PublicRetailingConsumer DiscretionaryRest of worldNot knownPhysical-Climate changeHigher operating costsClimate change causes a rising of temperatures and water deficit that may affect the quality, quantity and price of water resources and certain raw materials that are water intensive such as cotton. Consequently, operational costs may increase and delays or disruptions in the production chain may occur.UnknownProbableLow-mediumOther: Other: Comply with local legal requirements or company own internal standards, whichever is more stringentLow-mediumIn order to cope with extreme droughts that may affect quality, quantity and price of water intensive raw materials, Inditex is fostering the use of materials obtained from more sustainable sources. Raw material choices are closely intertwined with our biodiversity, water and energy management strategies. We promote organic cotton farming because it is based in sustainable use of water and in not to use chemicals. For instance, in 2015, 34 million garments of 100% certified organic cotton have been placed on the market, this results in a consumption of 4,219 tons of organic cotton, representing a growth of 318% by weight. As a result, we have been ranked as the ninth largest consumer of organic cotton in the world. In addition, we are introducing into our collections other sustainable materials or recycled, such as TENCEL ® Lyocell or recycled cotton and recycled polyester, allowing a considerable reduction in the consumption of water and energy; and also, less consumption of natural resources and the reduction on waste generation. This fact is due to the awareness and training of our sales teams and our suppliers about the advantages offered by this type of fiber compared to conventional. Since 2014 Inditex has its own Forest Product Policy to protect primary forests in danger of extinction as a Group guideline in the selection of raw materials of forest origin, ensuring that they are from forests that are managed in a sustainable manner. This policy has an impact of the choice of raw materials for the furniture or paper products and on the choice of artificial textile fibers manufactured from pulp such as viscose, modal and lyocell, avoiding that they originate from primary endangered forests, illegally felled or those with habitats of endangered species. Regarding cost of response estimation, since Inditex is currently developing measures to enhance sustainable fibers consumption, we expect a low-medium cost in the case of future strategy application.
4009730JBS S/ABrazilWater2016PublicFood & Beverage ProcessingConsumer StaplesBrazilParanaPhysical-Increased water scarcityOther: Constraint to future growthPotential Risks to agriculture in certain regions due to changes in water availability. This can affect the supply of raw material for the company, such as cattle, poultry, pork and animal feed.4-6 yearsProbableMedium-highAlignment of public policy positions with water stewardship goalsHigh. This strategic cost classification considers the necessary investment to perform an adequate response to the identified risk.Environmental Monitoring System of cattle suppliers, which assists in combating deforestation. Partnership projects with investors to develop integrated production (farming, forestry and livestock).JBS supports projects like the New Field Program (Programa Novo Campo), which promotes sustainable practices and spring preservation to increase the productivity of farms in the Amazon region, in order to develop a new operating model that preserves natural resources and brings financial benefits to the ranchers in the region.Since JBS performs technical visits at Poultry and Pork's suppliers it is possible to interact and improve the management of water. JBS Foods has been supporting the installation of tanks for collecting and storing rainwater and electric generators for its integrated partners, to ensure a regular supply of both water and power. A tank has the capacity to supply a farm with up to 45,000 chickens for approximately 3 months. However, these amounts vary in accordance with the number of animals in the farm and the capacity of the tank, which can vary from 500 to 1,000 cubic meters. This initiative demonstrates the innovative approach and firm commitment of JBS and its integrated producers to identify solutions to ensure water availability.

About

Profile Picture Simeran

created Sep 18 2017

updated Sep 20 2018

Description

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.

Activity
Community Rating
Current value: 0 out of 5
Raters
0
Visits
463
Downloads
106
Comments
0
Contributors
0
Meta
Category
Companies
Permissions
Public
Tags
Row Label
SODA2 Only
Yes
Licensing and Attribution
Data Provided By
(none)
Source Link
(none)
License Type
License Type
CDP Open Database License

Filter

  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;

Sort

  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;
  • ;

Search

Post a Comment

Comments

  • Total Comments: 0
  • Average Rating: 0.0

Sharing

This dataset is public

Publishing

See Preview