Water Crisis – Real Business Risks, Impact, and Opportunities

Water Crisis – Real Business Risks, Impact, and Opportunities

Perhaps the most important topic of the year.

4th Quarter 2015 MSR Topic

Conversation Starter: Emilio Tenuta, VP Corporate Sustainability at Ecolab
DATE: Friday, December 4th, 8am-noon
LOCATION: Milwaukee Metro – details made available to members
Current Confirmed Attendees: Bostik, CNH Industrial, GE, InPro, Kohler, Michel’s, Sargento, Smithfield (formerly Patrick Cudahy), SPX, and WMEP.

Basically, water, the once plentiful resource, is growing scarcer. That scarcity is a finance issue—one that has the potential to disrupt business and supply chain operations, lead to increased costs, and increase the price of commodity products.

– William Sarni, Deloitte

Some stats you might not be aware of:

  • Business regions currently impacted: Brazil, India, California, Florida, Cairo, Tokyo
  • CDP water report 2014
    • 81% of companies identify current risk in water
    • 61% have been impacted by water risk
    • 33% of companies state water scarcity impact 1-6% of profit
  • US Based Fortune 500
    • 94% face potential physical challenges
    • 69% face reputational risk
    • 80% affects location decisions
  • Economic IMPACT: current
    • California – 7th largest economy of the world – $3B hit last year
    • China – 46 Trillion RMB
    • Brazil 1-2% of GDP to date this year
  • Water Scarcity DRIVERS: By the way, it’s NOT climate change (though it could contribute)
    • Increased population
    • Increased middle class (doubling in 10 years around the world)
    • Increased demands by 2050: Food 60%; Energy 80%; Water 50%
    • (Look familiar? These are in alignment with similar findings from McKinsey on Resource Scarcity )
  • A global tour of drought – 7 recent water crises: http://j.mp/WaterCrisesTour

Tools: Check out

(more details on water crisis and resources download my notes from July’s GEMI conference in MKE)