The document summarizes the key findings of the 2012 CDP Water Disclosure report. It finds that while awareness of water-related risks is increasing among Global 500 companies, more action is still needed. Specifically, it notes that over half of respondents experienced water impacts in the past 5 years, but board oversight and goal setting on water issues remains relatively unchanged. It also finds that collective action approaches are becoming more widely recognized as effective strategies to address water challenges.

1. CDP Water Disclosure
2012 Report Findings
Collective action delivers strategic business value
CDP Global Water Forum
October 23, 2012

2. Overview
Summary Results
Global 500 Findings
Geography-specific Findings
Sector Highlights
Concluding Remarks
1 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

3. Summary Results

4. Global 500 - Summary Results
CDP Water Disclosure demonstrates increased water-related awareness
and activity among Global 500 companies
• Companies reporting on water-related issues has remained static (60%)
• More than half of respondents have experienced water-related detrimental
impacts in the past 5 years (53%)
• Respondents identify water as a substantial risk to their business (68%)
• More respondents identify water-related business opportunities (71%)
• 2012 saw minimal change in respondents with board-level oversight of
policies, strategies or plans (58%) and with concrete target or goal setting
(55%)
• More respondents are able to identify supply chain risks (71%) and more
require supplier reporting (39%)
• Collective action is an emerging and effective means to address water-
related challenges (74%) Compared to 2011
3 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

5. Global 500 Findings

6. Global 500 Findings
1 Water risk is a prominent and rising issue among 2012 respondents
• 53% of respondents have
experienced water-related
detrimental impacts in the
past 5 years; up from 38%
in 2011.
– Financial costs as high
as $US200 million.
• More respondents (68%)
report exposure to water-
related risks, up from 59%
in 2011.
5 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

7. Global 500 Findings
2 Water represents a strategic opportunity to improve financial and brand
performance
• 71% of respondents
reported a total of 319
water-related
opportunities.
• 78% of opportunities
are expected to
materialize now or
within the next 5
years.
– Some opportunities
have sales potential
of more than €800
million by 2020.
6 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

8. Global 500 Findings
3 Water is still not receiving the boardroom attention it deserves
• Board-level oversight of
water policies, strategies or
plans is essentially
unchanged from 2011
(58%).
• Respondents setting water-
related concrete targets or
goals has also changed
little (55%).
Water is not receiving the boardroom attention that the risks and
opportunities related to water imply it should be.
7 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

9. Global 500 Findings
4 Assessing and addressing exposure to water-related supply chain risk
is on the rise
• 71% of respondents
are now able to state
whether or not they are
exposed to supply
chain risks (up from
62% in 2011).
– 29% of respondents
still remain unaware.
• More respondents
(39%) require key
suppliers to report on
water use, risks, and
management.
– There is still room for
improvement.
8 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

10. Global 500 Findings
5 Collective action as an approach to addressing risks and opportunities
• 74% of respondents report goals and
actions related to collective action
initiatives.
– Community engagement (56%)
– Supply chain and watershed
management (43%)
– Collective action (38%)
– Public policy (24%)
• Benefits: increased business continuity,
license to operate and brand value
• Opportunities: gain fresh ideas, increase
momentum for change and pool resources Collective Action Image Courtesy of Mike Auraz,
Executive Strategy Director at Undercurrentz
9 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

11. Geography-specific
Findings

12. Global 500 - Geography-specific Findings
1 European companies, Germany in particular, once again lead in their
response to water-related issues
11 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

13. Sector Highlights

14. Global 500 - Sector Highlights
1 Consumer Staples sector respondents experiencing detrimental
impacts in the past five years has doubled since 2011 and is
significantly higher than the Global 500 average.
13 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

15. Global 500 - Sector Highlights
2 Energy sector respondents has the lowest response rate despite high
exposure to risk; few respondents report board-level oversight of their
water policies and even fewer set concrete targets or goals.
14 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

16. Concluding Remarks

17. Concluding remarks
The strategic importance of water-related issues continues to grow
• Water stewardship strategy is a framework for addressing water-
related risks and identifying business opportunities
• Collective action is emerging as an effective means for companies to
address water-related challenges and capitalize on opportunities
• Clear best practices are emerging and being adopted within and
across sectors
• CDP has a role to play in establishing sustainable water management
practices by raising awareness and accelerating the development and
adoption of corporate water reporting standards
16 2012 Water Disclosure Report Findings Copyright © 2012 Deloitte Development LLC. All rights reserved.

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