The Future of Sustainability Reporting in the Food Processing Sector, Presented by Klop
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Transcript of The Future of Sustainability Reporting in the Food Processing Sector, Presented by Klop
GRI conference 2010Piet Klop, World Resources Institute
Reporting on risk
The Future of Sustainability Reporting in the Food Processing Industry
• forward looking, predictive
• close collaboration with (institutional) investors and corporations
• intelligence on environmental trends, policies, consumer preferences and their financial impact
Intro
Reporting on risk
1. Problem2. Disclosure
3. Riska) Sector research
b) Tools
c) Market information
4. Response
Extreme Scarcity<500
Scarcity500-1,000
Stress1,000-1,700
Adequate1,700-4,000
Abundant4,000-10,000
Surplus>10,000
Ocean/Inland Water
No Datam3/person/year
19751975200020002025202520032003
With permission from Coca Cola
Where is water scarce?
1. Problem
2. Disclosure3. Risk
a) Sector research
b) Tools
c) Market information
4. Response
Reporting on risk
Irrelevant (for investors)
“… many companies are not including material water risks and performance data in their financial filings, nor are they providing local-level water data, particularly in the context of facilities in water-stressed regions.”
• Life Cycle Analysis (water footprinting): necessary but not enough
• Context: renewable water availability• Corporate water behaviour corporate water risk• Risk: physical, regulatory, reputational
– Shortages, disruption– Cost increases– Competition, growth restrictions
• Production facilities + supply chain– Food & beverage (+ agriculture)
impact on impact by
Behaviour (CSR) risk (10K)
1. Problem
2. Footprinting
3. Riska) Sector research
b) Tools
c) Market information
4. Response
Reporting on risk
Water risks and impacts
Reputation
Regulatory (+ litigation)
Physical
Product useProduction process
Supply chainPoint of impact:
Type of risk:
Commodity price spikes Disruption in water supply
Water quality standards constraining power generation
Court settlement to scale back operations
Insecure water rights
Multinationals’ suppliers singled out for violations
Competition with social uses
Profligate water use
Scarcity limiting sales
Weeding Risk: Climate Change & Water Scarcity Impacts on
the F&B Sector
Food & Beverage
11
Magnitude & likelihood
12
Financial impacts
13
E.g. sugar
14