Monday, November 29, 2010

Water a business risk, opportunity for companies, finds CDP survey

One in five of the world's companies using the largest amounts of water have said they are facing business constraints due to droughts and other shortages, flooding and rising prices, a global survey has revealed.

The survey of the 302 biggest companies in the most water-intensive sectors, across 25 countries revealed that water security remains high on the corporate agenda, with 67 per cent of respondents reporting responsibility for water-related issues at the board or executive committee level.

The inaugural Water Disclosure Report released by Carbon Disclosure Project (CDP) last week has said that encouragingly, 89 per cent of companies have already developed strategies surrounding the issue and 60 per cent have set targets relating to reducing water waste.

The findings of the global survey underline the fact that companies are increasingly viewing water as more than a potential business risk, with several proactive ones making efforts to be sustainable on this front.

The report also indicated that some of the world's largest and most water-intensive companies also see business opportunities in strengthening their water management practices and offering services to address water woes.

The survey is one of the many that the highly influential CDP carries out. The organization conducts an annual study of what companies are doing to measure and reduce greenhouse gas emissions on behalf of institutional investors holding $16trillion USD of assets.

The water survey was requested on behalf of these 137 institutional investors to increase transparency and accountability on water scarcity and other water-related issues, and help drive sustainability.

The water survey had asked the world's largest companies for information on their water use. It found that water is already impacting business operations, with more than half of respondents classifying their water risk as current or imminent within one to five years.

News reports quoted head of CDP Water Disclosure Marcus Norton as saying, "We see corporations using their imagination and looking at these challenges as opportunities for growth. From some of the feedback from companies, I think it's really a reflection that companies have been through this with carbon."

"This is a strategic issue. Water is fairly cheap, often undervalued and underappreciated. Companies I'm sure will save some costs by measuring and managing their water use, but by properly understanding the watershed they operate in, and their suppliers operate in, they will put themselves in a position to understand and mitigate risk, and to understand and seize opportunities. How I think water will really hurt companies is not that it becomes more expensive, but that it runs out or they don't have access to it". he added.

The report said companies in the food and drink, tobacco, and metals and mining sectors were most at risk. Among the concerns listed by them were fines and litigation for pollution.

Companies in the chemical and pharmaceuticals & biotech sectors had high response rates, at 100 per cent and 81 per cent while those in the oil & gas and construction, infrastructure & real estate industries lagged behind. Overall, about 80 per cent of companies opted to report their results publicly, the report added.

Friday, April 23, 2010

World's top 302 companies asked to disclose water usage

Several of the world's largest corporations, some with operations spanning several countries, have been urged to disclose their complete water usage and participate in the first voluntary water-disclosure exercise being undertaken at a global scale by London-based investor-backed non-profit organization Carbon Disclosure Project (CDP).

The CDP issued the first of its kind water-disclosure questionnaire last week in London and began a campaign that seeks to put water consumption on par with carbon emissions as a concern of company shareholders. The organization had scheduled for release of the questionnaire around this time when it launched the initiaitve around November last year.

The exercise is purely voluntary and those who have been approached may not respond. But, they are being encouraged by a pool of investors that brings with it formidable wealth, to do so. The investors represent some $16000 billion worth of assets between themselves.

The initiative comes against a backdrop of declining global water availability creating an immense challenge for companies, and a demand for increasing accountability on usage of the fast depleting resource. In fact, several reports have highlighted that poor water availability as well as an increase in its procurement cost is emerging a formidable business risk.

Several projections point out that in several areas across the world, water may not just be available to run business operations in the not so distant future. At the same time, experts have been issuing stern warnings that companies, and their investors, should start to appreciate the new category of risk to their future businesses -- running out of water.

Projects like CDP's not only manage to create awareness and help businesses and institutional investors understand the risks and opportunities associated with water scarcity and other water-related issues, but at the same time, give a unstated warning to most companies operating in water-intensive sectors.

The 302 companies asked to send in their responses by July-end include the who's who of the global business world -- ABB, Nokia, Intel, Procter & Gamble, Bayer, Boeing, Cadbury, Carrefour, Christian Dior, Danone, IBM, Johnson & Johnson, Coca-Cola, Nestle, Unilever, PepsiCo, McDonald's, Nike, Novartis, Sony Corporation, Yum Brands, among others.

Ford, PepsiCo, Molson Coors, L’OrĂ©al and Reed Elsevier, some of whom are involved in the project in various capacities, are among those who have already accepted to respond.

Indian companies that have been sent the questionnaire are Bharat Heavy Electricals LTD (BHEL), Indian Oil, ITC, Larsen & Toubro, NTPC, ONGC, Reliance Industries, Steel Authority of India Ltd (SAIL). There is also Arcelor Mittal, the global steel giant of India-born LN Mittal.

The questionnaire asks the respondents to spell out if they have a water policy, strategy or management plan. And, if they have one, then it asks comanies to describe it.

It also asks respondents to identify the percentage of their operations in the world’s water-stressed areas and what portion of their water use comes from these regions. It asks companies to spell out their water use, recycling and discharges into or near wildlife habitats as well as list water-related risks and opportunities.

Basically, companies are being asked for details of their water footprint and also make a disclosure that they are maintaining stewardship on this count.

Companies that choose to respond to the questions have the option of making their answers available only to these investors, or to the larger public as well. Also, companies that have not been sent the questionnaire can also respond to it, if they want.

As human population growth and climate change exacerbate water shortages worldwide, such efforts will go a long way to ensure that water management remains tight, and companies and people remain accountable for their water usage.

Wednesday, April 14, 2010

Asian tree to provide low-cost water purification method

As water pollution continues to play havoc with the world's dwindling water supplies, the search for innovative and low-cost purification technologies continues.

Some Canadian researchers have come across a tree found in several parts of Asia that could also provide another low-cost water purification technique to help bring down the incidence of waterborne disease in the developing world. This could be welcome news for Asia, as along with Africa, it remains one of the largest areas where water scarcity and pollution run hand-in-hand.

If one adds some parts of Latam (Latin America), then over a billion people reportedly rely on untreated surface water sources for their daily water needs. Reports suggest that almost two million die from diseases from contaminated water every year. Children under five years of age account for the largest number of deaths.

According to the researchers, a simple procedure that uses seeds from the Moringa oleifera tree can produce upto 99.99 per cent bacterial reduction in previously untreated water.

The seeds can be crushed into powder and used as a water-soluble extract in suspension, which creates an effective natural clarification agent for highly turbid and untreated pathogenic surface water.

The technique improves drinkability and reduces water turbidity (cloudiness), thus making water microbiologically and aesthetically acceptable for human consumption.

Monday, April 5, 2010

PepsiCo to provide water to 3 million people by 2015

Cola major PepsiCo has unveiled global plans to provide access to safe water to three million people in developing countries by 2015. The company has also announced plans to bring down its water consumption in production.

PepsiCo announced recently that it would continue to make efforts to arrive at positive water balance in its operations in water-distressed areas.

It will be a welcome step as the company, along with its main rival Coca Cola, has often been accused of exploitation of water resources around some of its manufacturing plants. The two cola majors have been under intense pressure in India, where they have both been separately announcing plans to arrive at a positive water balance -- recharging water levels in areas where their plants have become controversial as much as they have been taking from the soil.

The company said during 2011, the PepsiCo Foundation will reach its goal of providing access to safe water and sanitation to 1 million people through support of several partners. It has been working with several partners, spread across countries, in projects that seek to enhance access to water and sanitation facilities to local communities.

A statement issued by the company said it had set a global goal in 2007 to reduce water consumption by 20 per cent per unit of production by 2015. To date, the company has achieved a more than 15 per cent improvement in water use efficiency as compared to the company's 2006 baseline, it added.

Some of its global partners include Water.org, Safe Water Network, The Energy Resources Institute, China Women's Development Foundation and the Earth Institute at Columbia University. Together, they have been helping install village water and irrigation systems, establishing water health centers, constructing rainwater harvesting cisterns, improve sanitation programs and recharge aquifers in developing communities, particularly in Ghana, Kenya, Brazil, China and India.

The announcements by the company come against a backdrop of increased focus of corporate role in sustainable development. Companies are now being held accountable for mismanagement of water resources, particularly in water-starved regions.

Thursday, April 1, 2010

India launches Web-enabled groundwater information system

The Indian government has launched a Web-enabled information system that will allow all stakeholders to access information about groundwater availability acrosss the country seamlessly.

The system was jointly developed by Central Ground Water Board (CGWB), which is under the administrative control of the Water Resources Ministry, and the National Informatics Centre (NIC).

Launching the system on World Water Day on March 22, India's Union Minister for Water Resources Pawan Kumar Bansal said the system would provide all the stakeholders access to various thematic layers as well as the nationwide database generated by CGWB on groundwater level and water quality.

The initiative would help more effective sharing of information relating to groundwater resource availability and water level trend with user groups, planners and administrators, he added.

The Online system comes at a time when India's groundwater resources are dwindling at a fast pace. In several blocks across the country, the rate of extraction of groundwater is increasing and exceeds the rate of recharge, leading to lowered water tables. Experts have cautioned that over-exploitation of aquifers is also likely to hit the fragile ecosystems.

Bansal urged all Federal and state government departments which are repositories of groundwater data to come forward to pool it on the Web-based knowledge platform for the benefit of all stakeholders.

The system would initially be available in Government-to-Government (G2G) domain for planning and decision-making for management of groundwater resources. later on, the system will allow groundwater information availability to people and all organizations. It would allow, for instance, a farmer to access groundwater information for his village through the e-kiosks that are being set up across the country.

Groundwater remains India’s water lifeline and well over 85 per cent of rural water supply comes from it. Also, as much as half of the urban and industrial water supply too comes from groundwater systems.

The Indian Government has been making efforts to strengthen groundwater resource management system in the country and had in late 2008 announced the launch of a new scheme -- Ground Water Management and Regulation -- after merging three existing ones into a comprehensive one. The scheme, which had an outlay of Rs 460 crore, was also expected to help in delineating groundwater development worthy areas and developing area specific artificial recharge and rain water harvesting techniques.

Monday, March 22, 2010

ISRO eyes tapping water on Moon

After the discovery of water on moon, Indian scientists are looking at possibilities to tap the resource. For them, next on the agenda: transforming the lunar water that exists in vapour form into liquid state for utilizing it on Earth or using it for setting up human bases on the Moon.

A team of Indian scientists is reportedly studying ways and means to collect the lunar water after discovering the north and south poles of the Moon contained about one billion tonne of water or water-ice. Since the discovery of water in September 2009, scientists have announced that water is present on the Moon in vapour and ice form also.

Former Indian Space Research Organisation (ISRO) chairman G Madhavan Nair was quoted recently as saying, "As the water on Moon is mostly in its vapour and ice form, space scientists are studying scientific means of converting that into liquid water on the lunar surface itself".

Nair, a space scientist himself, was at the helm of ISRO's Chandrayaan-1 mission, India's first mission to the Moon.

Scientists believe discovery of water ice on the Moon is important as it can serve as a natural resource for astronauts on future lunar landing missions. The ice could also be melted into drinking water or be separated into its components of oxygen and hydrogen to provide breathing air and rocket fuel for launching interplanetary missions from the moon.

"Studies are being conducted to assess whether oxygen concentrators can be used for a similar process to liquidate the water vapour to have large quantities of liquid water in the challenging lunar environment", said Nair, adding that since exploitation of Moon and Mars for colonisation is the next step, plans are also being chalked out to reach there at an affordable cost.

News reports state that NASA has shown confidence that these vast sources of water on Moon could also be used to generate oxygen that could sustain human life in the lunar bases. Also, European Space Agency scientists are also reportedly studying the process of interaction between the hydrogen nuclei and oxygen present in the lunar dust grains to produce hydroxyls and water.

Nair said the next step could be to have ISRO's planned lander under Chandrayaan-2 taken to the Moon's polar region. "We could go further beneath the surface with appropriate instruments, and this time, it could be deeper than what Mini-Sar has managed. That will further seal all estimates we have made about water on the Moon. I believe getting to the spot and examining the area from deep under the surface could change all ways of thinking about the Moon", he added.

Monday, March 15, 2010

World's leading companies not forthcoming on water-related risk disclosures: Report

Most companies operating in water-intensive sectors including utilities and computer-chip makers are failing to provide investors with enough information on water-related risks, a report has warned.

Also, investors have almost no idea how their supply chains could be hit by water shortages in the future in several cases, the report -- 'Murky Waters: Corporate Reporting on Water Risk' -- prepared by sustainable investor group CERES and financial services firm UBS, states.

Even though most of these publicly-traded companies depend on water, they do not adequately disclose their financial risks to droughts and future regulations, even as water scarcity problems mount across the world.

The report, released last month, assessed the water-related disclosures of 100 of the world's largest publicly traded companies operating in the food, drink, electricity, mining, oil and gas, semiconductor, chemicals and construction industries.

It scored the companies based on five key categories of disclosure: water accounting, risk assessment, direct operations, supply chain and stakeholder engagement.

Puting the companies' water policies on a scale of up to 100, the report found that even the best-performing firms like beverage giant Diageo, Swiss mining company Xstrata and US electricity provider Pinnacle West, scored not more than 43 points. Eighty of the 100 companies scored fewer than 30 points.

Overall, several companies did not include any information on water risks and performance in their financial filings and provided no data on how water shortages could affect facilities operating in water-stressed regions.

Non-availability of water has emerged as a formidable business risk across the world. Poor water availability as well as an increase in its procurement cost are predicted with increasing frequency and climate change and poor management of water resources are expected to exacerbate the problem of scarcity.

CERES, which is a Boston-based coalition of investors with $8 trillion USD under management, used information collected by Bloomberg LP from corporate reports and financial filings of beverage, chemicals, electric power, food, homebuilding, mining, oil and gas and semiconductor companies. UBS analyzed the data for CERES. Regulatory, reputational and litigation risks related to water supply were also looked into.

The report states that not even one company from the 100 selected had provided detailed water data on its supply chains, despite the fact that many of them operate global supply chains with sizeable water footprints across several areas of the world that are at high risk from the increased incidence of droughts.

It cites some recent incidents where businesses have been affected by regional water shortages. For instance, the drought in California last year reportedly cost the state's agricultural industry $1 billion USD (£640 million) and led to the loss of an estimated 21,000 jobs. Similarly, the 2007-08 drought in Georgia increased costs for energy firm Southern Co by $33 million as it was forced to replace falling hydroelectric power output with more costly fossil fuel-based power.

Monday, March 1, 2010

First community-run water system in Andhra Pradesh to go live today

WaterHealth India, which has won a concession by the government of the south Indian state of Andhra Pradesh to run community water systems in five of the state's 23 districts on a (build, own, operate and transfer) BOOT basis, will make its first project site live by March 1.

The company was one of the five selected from 40 companies that had sought to provide safe and clean drinking water to a large majority of villagers across the state at affordable prices.

WaterHealth India, a wholly-owned subsidiary of US-based WaterHealth International Inc, provides purified water through its water purification centers, called WaterHealth Centers. The company will create necessary infrastructure, maintain and run the WaterHealth Centers for the next 10 years.

The company will provide Community Water Systems in at least one village per mandal in the districts of Medak, Rangareddy, East Godavari, West Godavari and Srikakulam covering over 220 mandals. The four sites -- Nagaram, Tholeru, Kanuru and G. Vemavaram -- will start selling purified water to more than 100,000 consumers living in the vicinity of these plants.

As per plans, a total of 220 centers will be installed by WaterHealth in this year under the project. Overall, WaterHealth India envisages that more than 3 million people will be served by its projects.

The move is part of the efforts being initiated by the state government to improve rural water supply and sanitation services. Thousands of people in several villages across the state have been suffering from serious health problems including diarrhoea and typhoid due to lack of potable water and accessing contaminated groundwater.

The state government had released a tender and sought participation of companies for providing safe and clean drinking water to a large majority of villagers at affordable prices. Overall 1,100 mandals comprising of all districts will be covered, impacting a cross section of over 10 million people in the rural areas.

WaterHealth International, which has presence in countries like Ghana, the Philippines and Sri Lanka helps, has experince in serving remote and underserved communities get access to safe drinking water by involving the local community in setting up low-cost water purification plants. The customers pay a nominal charge for the water they use.

Friday, February 26, 2010

India’s Voltas seeks to acquire water treatment companies

India's leading engineering services company Voltas Ltd has charted plans to expand operations in the global water treatment business. The company is also scouting for companies for acquisition overseas as well as in India.

The company, belonging to India's second largest business group, Tatas, is eyeing small-sized companies that will allow it to get entrenched in the local industry without having to set up fresh capacities and operations. The aquired companies are expected to provide Voltas pre-qualification in the water segment in their countries.

The company is also keen to acquire small companies in the hydro-carbon industry.

Voltas officials said the company was looking to make a few small-scale acquisitions in the range of Rs 100-200 crore in the water and hydrocarbon segment.

The company has been making efforts to expand its presence in the water industry, particularly in the water treatment segment, ever since it had undertaken a Rs 300 crore sewage treatment project in Singapore in 2007. It was keen to acquire companies in Singapore and Europe but had not been able to make any progress so far.

Voltas is eyeing overseas acquisitions in the water treatment segment whereas it prefers domestic acquisitions in the hydrocarbon space.

The company offers engineering solutions and undertakes electro-mechanical projects, which also include water management and treatment. Also, with water shortages becoming a big problem in several countries including India, China and the Middle East, the company has decided to step up its focus on the water treatment industry.

Over the years, Voltas has broaden its capabilities in the entire spectrum of water and wastewater management, including treatment of water for potability as well as industrial usage. The company also makes water, wastewater and sewage treatment equipment.

The company is also expecting a slew of new orders in the coming months from West Asia, Singapore and Hong Kong, among other countries.

Monday, February 15, 2010

Amnesty International accuses India’s Vedanta of water pollution

Global human rights group Amnesty International has accused London-based metals and mining group Vedanta for alleged poor waste management practices at its aluminium refinery in India's eastern state of Orissa, which has hit the supply of water locally.

Amnesty has said the refinery is causing water and air pollution that is threatening health of thousands of locals in the state. However, Vedanta has refuted the claim and said they were based on an "outdated document".

The international rights group on February 10 released a report, alleging that the 8,000 strong tribal community near the refinery suffered violations of human rights to water and health. The report, which quoted documents from Orissa State Pollution Control Board gave instances where vedanta failed to put in place adequate pollution controls.

This resulted in leakages of alkaline wastewater into the river, the main source of water in the area. People in Niyamgiri Hills, where the company mines alumina, had complained of serious skin ailments, hazards that were not witnessed before the mining began, said Amnesty.

According to Amnesty, these complaints are likely rooted in the periodic contamination of Vansadhara river, the main water source for the people and possible seapage of toxic elements into ground water from a highly alkaline waste known as red mud pond.

The Amnesty-Vadanta stand-off comes soon after an Indian Government report has called for an urgent upgrade of the country's wastewater treatment facilities, stating that most of the Indian cities have been managing to treat their wastewater only partially and the untreated waste is flowing back into rivers that form major sources of drinking water.

The discharge of untreated sewage into water courses is the biggest source of water pollution in India, the report released last month by state-run Central Pollution Control Board (CPCB) had said.

Vedanta has charted plans to pour more investment in the refinery and expand its capacity six-fold. The expansion is expected to deliver significant economic stimulus to the local community, especially historically underdeveloped areas of Orissa, the company said.

Amnesty has reportedly urged the Indian government not to approve the expansion until pollution laws were enforced, the health impact investigated and the waste management process rectified by the refinery.

Vedanta, on the other hand, said the criticism of the project is misplaced and repeated offers made by the company to Amnesty to enter into a dialogue on the report had been rejected.

Monday, February 1, 2010

India's leading engineering company McNally Bharat Engineering has planned to make a foray into the fast growing water industry in India. The company is eyeing water and wastewater projects in the country.

McNally Bharat Engineering has entered into an exclusive technical partnership agreement with Singapore's leading water technology company Hyflux for this purpose.

The technical partnership will allow McNally Bharat, that undertakes turnkey projects in infrastructure and related manufacturing activities primarily in India, to set up sea water desalination, water and wastewater plants in India. Hyflux has a strong presence in the water desalination industry with projects across the world.

The Indian company is eyeing projects in the industrial, municipal and agricultural sector in India.

"With this tie-up MBE shall be setting strong foot-print in this area in India where there is a strong demand in Sea water desalination project particularly in municipal, agricultural and other industrial usage", a company statement said.

Several Indian companies, engaged in providing engineering services, have turned towards the water industry and remain bullish on the business potential in view of the Indian government's increased spending on infrastructure. The increased focus on water infrastructure and irrigation systems has attracted several companies to make a foray into the sector.

Companies like McNally Bharat expect the renewed focus on water infrastructure sector to culminate in more orders in the irrigation systems, water supply and sewage water treatment space.

The Indian government had raised the allocation for irrigation projects by almost 100per cent to $57 billion USD for the Eleventh Five Year Plan ending 2012.

Monday, January 25, 2010

Pentair eyes home water management market in India, plans new unit

The $3.5-billion US-based Pentair Group has identified India as its biggest emerging market globally. The company is keen to make its mark in the fast growing home water management and water purification segments in India.

Like several other leading companies in the sector, Pentair also sees a slew of opportunities from source-to-sink in the water management category in the country.

The company's wholly-owned Indian subsidiary Pentair Water India has decided to set up a pump manufacturing unit in the country and is finalising a location for the same. It already has a sizeable presence in India, having made its entry in 1998.

So far, it has been active in the industrial water treatment segment in the country and had been supplying membranes to almost all water purifying companies in India. The company has been providing water treatment solutions for a range of industrial, commercial and institutional applications.

The company's existing manufacturing facility at Goa is also being used to export water treatment systems to West Asia markets. Now, it has decided to set up a new pump manufacturing unit at an estimated investment of Rs 20 crore. But, as of now, the company has not decided on the location for the manufacturing facility.

The company is looking at Pune, Coimbatore and Gujarat for the plant.

Pentair is ramping up its presence in India when the water and wastewater management industry has emerged as one of the most recession proof segments poised for growth over the next several years. Companies like Pentair also stand to benefit with several state governments stepping up investments in projects related to water infrastructure.

Monday, January 18, 2010

VA Tech Wabag to set up India’s largest desalination plant in Chennai

India's leading water-treatment company VA Tech Wabag has been the country's largest desalination project that will have a daily production capacity of 100 million litres. The plant will come up at Nemmeli, near Chennai, the capital of India's southern Tamil Nadu state.

The project contract has bagged by VA Tech Wabag from the Chennai Metropolitan Water Supply and Sewerage Board. The Board has turned towards seawater desalination in a big way to ramp up the supply of water for the city, which has not been able to keep pace with rising demand.

The Nemmeli desalination plant is Chennai's second, with the first coming up at Minjur in the city's north.

VA Tech Wabag, which is also based in Chennai, will implement the project as a 70:30 joint venture with Israel-based IDE Technologies. The Rs 1,033-crore reverse osmosis plant will be commissioned in the next 24 months.

VA Tech Wabag expects to commence construction on the project from next month.

The contract value is divided into two parts - Rs 533 crore towards design and construction and Rs 500 crore as operation and maintenance charges spread over seven years. The construction cost of Rs 533 crore project will be funded by a grant from the Indian Government.

The project has been allocated to the company on a design, build and operate (DBO) basis. Chennai Metropolitan Water Supply would be allocating the fund for the O&M contract.

Sunday, January 10, 2010

BARC to help Mumbai set up desalination plant

Civic authorities in India's financial capital Mumbai have decided to appoint premier state-run atomic agency, Bhabha Atomic Research Centre (BARC) as consultant in a project that seeks to set up the city's first sea water desalination plant.

BARC, which already desalinates water for its captive consumption, will provide technical expertise to the city for the project that will likely help tackle water crisis in the city.

Mumbai, which is the capital of India's western state of Maharashtra, has been facing severe water scarcity and local authorities have been resorting to a host of measures, including water rationing to curb rising demand for the resource. The city has also been rationing water to bring down its usage.

The city's main civic body, Brihanmumbai Municipal Corporation (BMC) has also charted plans to go for public-private partnership to set up desalination plants to resolve the city's water woes in the coming years.

BARC has already helped Chennai, the capital city of Tamil Nadu state in setting up a 10 million litres of day (MLD) desalination plant and another at Kalpakkam with an installed capacity of 6.5 MLD.

For Mumbai, BARC plans to consult the civic authorities on the type of technology to be deployed at the plant that would be suitable for desalinating water on large scale. BARC is also expected to guide Mumbai civic authorities on the feasibility and the survey reports.

The proposed project has already attracted the attention of the private sector and even as the BMC has identified areas where it may set up the desalination plants, as many as 18 international and local companies have submitted expressions of interest to carry out a feasibility study. The companies would have the mandate to set up plants with a capacity of 10 MLD at various places near the coastline.