Investor-driven water reporting initiative which builds upon CDP’s climate reporting system. Provides sector-specific scoring for useful benchmarking against industrial peers. First benchmarking report released in October 2015.

Description

CDP’s Water program provides companies with a framework for reporting action on water to investors, customers, policymakers and NGOs. It is used by 617 investors with $63 trillion in assets and more than 1,500 companies worldwide. CDP’s water questionnaire and accompanying water scoring methodology, both developed with input from financial institutions, companies and NGO’s, broadly align with the CEO Water Mandate corporate water disclosure guidelines and many, including WWF and WRI, have aligned their products with CDP’s reporting requirements.

CDP’s 2017 water questionnaire is composed of eight modules that follow a logical pathway aiming to assist companies to understand, assess and communicate water impacts, risks and opportunities as well as their response to these. The accompanying water scoring methodology provides companies and investors with a benchmark of corporate water performance. It gives an indication of the level of action taken by the company to assess and manage its impacts on, and from, water related issues during the reporting year but does not make any assessment of the effectiveness and impact of a company’s water management and risk mitigation activities. CDP also provides a wide range of webinars, workshops, one-to-one support and knowledge transfer to responding companies and investors. In addition, it offers a service to drive greater transparency and improved water performance throughout company supply chains.

Farming

Withdrawal and consumptive volumes should be provided, including distribution among sources. Any quantitative targets should be listed. Companies should also report the percentage of suppliers who, in their turn, report on water use, water risk and management.

Water risks should be assessed by applying an existing water risk tool and explaining how it has been used. Potential tools and methods include, but are not limited to, the Global Water Tool, GEMI’s Local Water Tool , Life Cycle Assessment, AQUASTAT (FAO), the Water Footprint Assessment tool, Aqueduct and the Water Risk Filter.

Under risk assessment, companies are also asked to report on contextual factors used in the analysis. These include current, future and scenario analyses of water availability, water regulatory frameworks, stakeholder conflicts, implications of water on key commodities, including product water intensity. Any river basin management plans should be reported here as well.

The company should define the required water quality for direct and indirect uses. Any detrimental impacts related to water experienced during the reported year, including pollution of water sources, should be reported and mitigation strategies outlined. This includes also inherent water risks that could generate a substantive change in the business, operations, revenue or expenditure and potential impact to direct operations and supply chain.

Under risk assessment, companies are asked to report on contextual factors used in the analysis, including current, future and scenario analyses of industry and region specific water quality parameters. Water risks should be assessed by applying an existing water risk tool and explaining how it has been used. Potential tools and methods include, but are not limited to, the Global Water Tool, GEMI’s Local Water Tool, Life Cycle Assessment, AQUASTAT (FAO), the Water Footprint Assessment tool, Aqueduct and the Water Risk Filter.

The company must specify whether current and future water availability is incorporated into their water risk assessment. Water availability is defined as the natural runoff (through groundwater and rivers) minus the flow of water that is required to sustain freshwater and estuarine ecosystems and the human livelihoods and well-being that depend on these ecosystems.

The company should also specify to what level the status of ecosystems and habitats has been considered in their water risk assessment. Ecosystem vulnerability is mentioned as one potential impact driver of detrimental effects to business, operations, revenue or expenditure, direct operations or supply chain.

Under risk assessment, companies are asked to report on contextual factors used in the analysis. These include current, future and scenario analyses of status of ecosystems.

Reporting “zero discharges” can only be supported if the facility has a closed water circuit or zero liquid effluent discharge which most often implies that all water is re-used by the operations during processing or production.

Recycled or reused water is defined according to GRI – G4’s explanation of Indicator EN10, as an act of processing used water/wastewater through another cycle before discharge to final treatment and/or discharge to the environment. It specifies three general types of water recycling/reuse practices: wastewater recycled back in the same process or higher use of recycled water in the process cycle; wastewater recycled/re-used in a different process, but within the same facility; and wastewater re-used at another of the reporting organization’s facilities.

The company is required to report on contextual factors used in the risk assessment, including access to fully-functioning WASH services for all employees. The proportion of sites/facilities/operations that provide fully-functioning WASH services to all workers should be indicated.

The company should make estimates of future changes in water availability, potential regulatory changes, potential stakeholder conflicts, implications of water on their key commodities, and changes in the status of ecosystems and habitats. Furthermore, scenario analysis should be performed on the availability of sufficient quantity and quality of water relevant for their operations, regulatory and or tariff changes, stakeholder conflicts concerning water resources, implications of water on key commodities and potential changes in the status of ecosystems and habitats.

Under risk assessment, companies are asked to report on water discharge volume and quality data by standard effluent parameters, destination, treatment method and whether it was reused by another organization. Water risks should be assessed by applying an existing water risk tool and explaining how it has been used. Potential tools and methods include, but are not limited to, the Global Water Tool, GEMI’s Local Water Tool, Life Cycle Assessment, AQUASTAT (FAO), the Water Footprint Assessment tool, Aqueduct and the Water Risk Filter.

Processing

Withdrawal and consumptive volumes should be provided, including distribution among sources. Any quantitative targets should be listed. Companies should also report the percentage of suppliers who, in their turn, report on water use, water risk and management.

Water risks should be assessed by applying an existing water risk tool and explaining how it has been used. Potential tools and methods include, but are not limited to, the Global Water Tool, GEMI’s Local Water Tool , Life Cycle Assessment, AQUASTAT (FAO), the Water Footprint Assessment tool, Aqueduct and the Water Risk Filter.

Under risk assessment, companies are also asked to report on contextual factors used in the analysis. These include current, future and scenario analyses of water availability, water regulatory frameworks, stakeholder conflicts, implications of water on key commodities, including product water intensity. Any river basin management plans should be reported here as well.

The company should define the required water quality for direct and indirect uses. Any detrimental impacts related to water experienced during the reported year, including pollution of water sources, should be reported and mitigation strategies outlined. This includes also inherent water risks that could generate a substantive change in the business, operations, revenue or expenditure and potential impact to direct operations and supply chain.

Under risk assessment, companies are asked to report on contextual factors used in the analysis, including current, future and scenario analyses of industry and region specific water quality parameters. Water risks should be assessed by applying an existing water risk tool and explaining how it has been used. Potential tools and methods include, but are not limited to, the Global Water Tool, GEMI’s Local Water Tool, Life Cycle Assessment, AQUASTAT (FAO), the Water Footprint Assessment tool, Aqueduct and the Water Risk Filter.

Under risk assessment, companies are asked to report on water discharge volume and quality data by standard effluent parameters, destination, treatment method and whether it was reused by another organization. Water risks should be assessed by applying an existing water risk tool and explaining how it has been used. Potential tools and methods include, but are not limited to, the Global Water Tool, GEMI’s Local Water Tool, Life Cycle Assessment, AQUASTAT (FAO), the Water Footprint Assessment tool, Aqueduct and the Water Risk Filter.

Consumption volumes and the proportion of sites/facilities/operations where volumes are measured should be provided. Water consumption is defined as an “amount of water that is used but not returned to its original source”. This includes water that has evaporated, transpired, has been incorporated into products, crops or waste, consumed by man or livestock or otherwise removed from the local source.

Reporting “zero discharges” can only be supported if the facility has a closed water circuit or zero liquid effluent discharge which most often implies that all water is re-used by the operations during processing or production.

Recycled or reused water is defined according to GRI – G4’s explanation of Indicator EN10, as an act of processing used water/wastewater through another cycle before discharge to final treatment and/or discharge to the environment. It specifies three general types of water recycling/reuse practices: wastewater recycled back in the same process or higher use of recycled water in the process cycle; wastewater recycled/re-used in a different process, but within the same facility; and wastewater re-used at another of the reporting organization’s facilities.

The company is required to report on contextual factors used in the risk assessment, including access to fully-functioning WASH services for all employees. The proportion of sites/facilities/operations that provide fully-functioning WASH services to all workers should be indicated.

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