Addressing Water Scarcity - A Summary of Shared Perspectives
Author: Camilla Flatt
Date: 28/11/2008
africapractice and Capital MS&L release a ‘shared perspectives’ report on Addressing Water Scarcity
28 November 2008
africapractice, a strategic communications consultancy and Capital MS&L, a financial communications consultancy, released today the takeouts of an intimate roundtable discussion they convened between investors and businesses on whether water will be the new carbon?
The roundtable took place in London, 22 October 2008. Participants included senior management level from Unilever, HBSC, Coca-Cola, Marks & Spencers, Hendersons, WS Atkins, and ITT Fluid Technology. Participants heard from corporate and investment leaders in the field - the Vice President of Health, Safety and Environment for Nestle, Claus Conzelmann, the Head of CSR for Diageo, Will Peskett, and senior analysts from JP Morgan and Generation Investments.
During the course of the year, the media has increasingly alluded to the connection between water and carbon, and companies are taking this connection seriously. Earlier this year at Davos, CEOs not only highlighted their ambitions to become ‘carbon neutral’, but also ‘water neutral’. 21 British food companies pledged to reduce their carbon dioxide emissions amongst other environmental reductions, linking the outcomes of this initiative to the equivalent of saving 140 ml of water per day, or £60 million a year saved in water bills.
The ‘Water: the New Carbon?’ event revealed that water is a complex area and while similarities can be drawn to ‘carbon’ in the most basic areas, the solutions in how to manage the issue is vastly different. The similarities relate to the attention businesses and the media are giving to water as well as the interplay between water, carbon and energy. The differences relate to how the resource should be manage. Water is a local issue rather than a global issue and therefore solutions are local so global frameworks like the Kyoto Protocol will not work. And unlike carbon, the process of valuing water and putting a price on it is extremely difficult if not politically sensitive. Many believe that water is a basic human right and should be free but because of its multiple uses, such as in industry, creating a free market for the resource would lead to its unsustainable use.
The consensus was that managing water risks is an emerging field and lessons from carbon can be taken, but in reality, the approach and methods need to be tailored to the specific sector and the specific location. The summary concludes that the challenges facing each industry are different which means that communications will play a key role in creating a common language and understanding about how to address increasing water risks.
“A scarcity of clean, fresh water presents increasing risks to companies in many countries and many economic sectors. These risks are difficult for investors to assess, due both to poor information about the underlying supply conditions and to fragmentary or inadequate reporting by individual companies.” - JP Morgan
About Capital MS&L
Capital MS&L is an international corporate and financial communications consultancy advising ambitious public and private companies of all sizes. The first financial communications consultancy to establish a sustainability and environmental communications team, which has grown to become a market-leading practise. Expert in assisting companies communicate their sustainability story to investors and other stakeholders. We have extensive knowledge of helping institutional investors, and in particular mainstream asset management and private equity firms, position themselves appropriately in the sustainable investment marketplace. Capital has a firm wide commitment to the reduction of its environmental impact, and is a carbon-neutral company.
About africapractice
africapractice is a dedicated strategic communications, corporate citizenship and public affairs
consultancy working with governments, international organisations and businesses to implement and communicate their commitment to African development. africapractice has a global network of offices and affiliates, drawing on local knowledge and expertise to deliver bespoke communications solutions.
We blend project management and consulting disciplines with professional public relations and an intimate knowledge of the political, media and business environments in which we live and work. As part of our Corporate Citizenship Practice, we have a Water Advisory service which exists to support and advise companies and investors operating in Africa on water scarcity and water provision issues. Our aim is to enhance our clients’ understanding of water scarcity risks for their African operations and to help them realise the inherent opportunities for improving operations and stakeholder relations.
For more information about the event or Capital MS&L and africapractice, please contact:
Ashleigh Lezard
Ashleigh.lezard@capitalmsl.com
Camilla Flatt