1. CDP WATER DISCLOSURE GLOBAL WATER RISK Canadian Water Summit June 14, 2011 Chris Hedemann CDP Water Disclosure chris.hedemann@cdproject.net +44 (0)20 7415 7073 www.cdproject.net/water-disclosure Lead Sponsors

2. Overview Global water risk Greater and delocalised impact How can we manage global risk? CDP Water Disclosure Our structure and mission The business need for water information Our first year’s findings What businesses are doing about water How are businesses in Canada engaging on water?

3. Global risks have greater impacts The Deepwater Horizon Spill (Source: Reuters)

4. Global risks have delocalised impacts Marooned flood victims in Pakistan try to escape on helicopter side bars (Source: Reuters)

5. We need collective action to tackle global risk While individual organizational efforts will be critical in helping to address the water challenge, collective efforts – across sectors and societal spheres – will also be required. – CEO Water Mandate, Preamble and Core Elements, January 2011

6. We need relevant information to tackle global risk We recommend that investors assess the reliance of their portfolios on water resources and their vulnerability to problems of water availability and pollution The financial impact of water shortages on sectors and companies is unclear, because information on water use data and impacts is spotty and partial – JP Morgan, Watching Water, April 2008

7. CDP seeks corporate water disclosure on behalf of investors 354 Investors representing $43 trillion Authority Information Information Authority 408 Corporations from Global 500, Australia 100, South Africa 100

8. CDP uses a 3-part questionnaire

9. CDP seeks corporate water disclosure on behalf of investors 354 Investors representing $43 trillion Authority Information Information Authority 408 Corporations from Global 500, Australia 100, South Africa 100

10. NBIM – Investor Expectations A: Clear Water Management Strategy Clear strategy regarding water management Water footprint and risk analysis Preventive and corrective action plan for identified risk B: Sustainable Water Management Monitoring systems for environmental and social impacts of activities with regard to water, including sustainable water measures Consultation and/or collaboration with stakeholders C: Governance Structure Transparent and well-functioning governance structure Transparent performance reporting

12. There is general lack of awareness of risk in supply chains

14. Varied response across industry sectors

15. Lack of awareness of risk in supply chains

16. Opportunity is everywhere 62% of responding companies identify water-related business opportunities Examples include Improved water management leading to reduced operating costs Urbanisation and population growth expanding market for water treatment chemicals and facilities Infrastructure to support growing populations and to adapt to climate change (e.g. flood defences, stormwater systems)

17. Canadian companies are developing their engagement on water issues 10 Canadian companies responded from 15 that were invited

18. Canadian companies with more sophisticated responses Proactively managing water shortage by forecasting, measuring and saving water Enhancing community water supplies in Pakistan and Tanzania Aware of need to develop supply chain awareness and already taking the first steps Setting strong targets in response to shortage risk and delivering on them Engaged with developing water management plan in Lower Athabasca River Engaging with NGOs including DUCS wetland group and WBCSD Water working group

19. Key points Local water issues create global risks with the potential for high, delocalised impact Businesses and investors need to engage on water now to manage this risk The first step is developing maturity in the measuring and monitoring of water issues CDP Water Disclosure can help companies and investors take this first step

20. CDP WATER DISCLOSURE GLOBAL WATER RISK Canadian Water Summit June 14, 2011 Chris Hedemann CDP Water Disclosure chris.hedemann@cdproject.net +44 (0)20 7415 7073 www.cdproject.net/water-disclosure Lead Sponsors

21. Key references 2030 Water Resources Group (2009). Charting our Water Future: Economic frameworks to inform decision-making Beck, U. ‘Climate for Change, or How to Create a Green Modernity’. Theory, Culture and Society, 27(2-3): 254 - 266 Giddens, A. (2009) The Politics of Climate Change, Cambridge: Polity Newson, M. (2009) Land, Water and Development: Sustainable and adaptive management of rivers, London: Routledge