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Call Summary

I. Top 10 key take-away from Stockholm (Betsy Otto) Emphasis on engaging the power of the private sector

Government failure of managing water more sustainability

1) Water has become a mainstream corporate issue.

2) Companies are where the action.

3) Companies are not waiting for perfect information to take action.

4) Risk management (internal) and risk disclosure (external) driving action.

5) Reputational risk is as a big a worry as physical risk for companies.

6) Supply chain water management is a hot topic. Some companies are engaging outside of their fenceline.

7) Working with intermediaries is key to supply chain and local watershed management.

8) Pricing in risk is still a challenge.

9) Philosophical difference between managing water risk and water stewardship.

10) Confusion about which water risk tools to use for what.

Call Summary

II. Response to Water Related Risk (Charles Iceland)

1) Baseline water stress and projected change in water stress.

2) Risk facing companies using Aqueduct. Facilities facing stress today as compared to facilities facing water stress in the future.

3) Power and irrigated land. Locations facing stress today as compared to locations facing stress in the future.

4) What are people doing about the nexus?

• World Bank water energy trade-off analysis (country rapid assessments, scenario analysis, economists quantify trade-offs, and governments making tough choices).

• Water related risks (electric power generation, coal development, shale oil and gas development).

• FAO and University of Nebraska (looking at look at crop yields and how to use water more sustainably).

Call Summary

III. Corporate Water Strategies (Jon Freedman and Shannon Quinn) Jon Freedman, VP of Government Relations, GE Water:

• GE manages water risk for GE corporate and also GE’s customers. GE’s global water business has 50,000 customers in 130 countries where they provide water treatment to customers including industry and domestic water use.

• GE corporate is located in 150 countries. Overlaid maps for manufacturing plants around the world. Track water consumption and set performance goals. From 2008-2012 the performance goal is to reduce water use by 20% by 2012. Aqueduct will be useful to set additional performance targets.

• Aqueduct will help GE communicate to other GE customers on technologies for greater water reduction.

Shannon Quinn, Researcher, P&G:

• Water is important to P&G. P&G and suppliers require water for products. 80% of P&G’s products require water use. Manufacturing and consumer side. Solutions: 1) site action (reduce water in manufacturing sites), 2) new products use less products, and 3) social responsibility and philanthropy (reach out to people with very pressing water issues).

• P&G’s strategy. Currently evaluating holistic water risk at a plant level and evaluating water risk tools including Aqueduct to come up with a methodology.

Call Summary

IV. Q&A

Andreea Culian, WRI:

Q: Does engagement on water issues depend on being able to make the business or financial case, or is happening anyway due to greater attention being given to water issues? A. Both, but the primary drivers are the desire by companies to manage business well and manage potential risk, and there is external pressure from the investment community to show how they are preparing for water related risk as Wall Street becomes more aware of the risk.

Call Summary

IV. Q&A

Jon Freedman, GE:

Q: How are tools going to harmonize and play out? A: This is a period of innovation. The tool developers need clarity in helping companies interpret the stress and scarcity maps and other similarities and differences. Need to provide clarity on how the different pieces of information inform different corporate water management strategies. A: Need to figure out which indicator for each tool is best for your business.

Phil Sumner, Pfizer:

Q: Now using the WBCSD’s global water tool but will evaluate all the tools in the New Year. Will Aqueduct’s new tool be available soon? A: Aqueduct will have maps of physical, regulatory, and reputational risk by January 1, 2013. A: Pfizer will compare different tools in January 2013.

Call Summary

IV. Q&A

Scott Dyer, P&G: Q: How do we assess water risk (centralized or site by site)? How to integrate baseline map to site specific tools such as GEMI water tool that has to be filled out by site/plant managers? A: Aqueduct provides a portfolio level assessment but may provide facility level assessment down the road.

Al Pacardi, Excelon:

Q: Interested in local information, who is using the water, and thermal impact? A: The WWF Water Risk filter starts looks at the facility level, as does the GEMI Local Water Tool. Aqueduct Alliance member Coca-Cola has a 90-question survey for facility managers.

Top 10 Takeaways

Takeaways

1. Water has become a mainstream corporate

issue.

2. Companies are where the action is (literally).

3. Companies are not waiting for perfect

information to take action.

Takeaways (con’t.) 4. Risk management (internal) and risk

disclosure (external) are driving

action.

5. Reputational risk is as big a worry as

physical risk for many companies.

6. Supply chain water management is a

hot topic. Some companies are

engaging outside their fence line.

Takeaways (con’t.) 7. Working with intermediaries is key to

supply chain and local watershed

management

8. Pricing in risk is still a challenge.

9. Philosophical difference between

managing water “risk” and water

“stewardship.”

10.Confusion about which water risk

tools to use for what.

United Technologies

DuPont

John Deere

Procter & Gamble

Gold Sponsors Silver Sponsors Bronze Sponsors

Data by

Baseline Water Stress

Many locations already face very high water stress

Long Term Change in Water Stress (2025):

IPCC scenario A1B

Data Provided Courtesy of The Coca-Cola Company

Water stress to grow 2-8 times worse in many places by

2025

The take-home message for public and private sector

decision makers is that they will have to make large-scale

adjustments in a relatively short time period in order to adapt

to a rapidly changing water resource reality.

Water Risk Framework 2.0

Overall Water Risk

Physical Risk

QUANTITY

Physical Risk

QUALITY

Regulatory &

Reputational Risk

Baseline Water Stress

Inter-annual Variability

Seasonal Variability

Flood Occurrence

Drought

Upstream Storage

Water Reuse

Nutrient Loads

Upstream Protected Land

Media Coverage

Access to Water

Threatened Freshwater

Amphibians Species

Companies are lining up for Aqueduct data

Monsanto – developing water strategy and need to prioritize facilities

AUO Optronics – identify priority facilities for water conservation, etc.

Owens Corning – identify priority facilities and analyze major risk drivers

BPH Billiton – developing water strategy across global operations

Florida Power & Light – determine percentage of operations in risky areas

Exelon Corporation – identify plants requiring immediate risk mitigation

Bloomberg – need risk information to support new water services division

Proctor & Gamble – water risk analysis for global facilities

GE Energy – want to overlay existing “fleet” to identify priority risk areas;

also for upcoming global water and power analysis

Company prioritizes water-related risks to address

Global Map % of Manufacturing Plants

High Risk Medium Risk Low Risk

Water Stress 15.4% 30.8% 53.8%

Water Reuse

(Water Pollution)

7.7% 15.4% 76.9%

Socio- economic

Drought

7.7% 7.7% 84.6%

Projected Change in

Water Stress for 2025

30.8% 69.2% 0%

17% of global power plant design capacity is located in

areas of water stress concern

Hydro, Thermal, and Nuclear Power Plants and Baseline Water Stress

29% of current global power plant design capacity would

see water stress grow 2 to 8 times worse by 2025

Hydro, Thermal, and Nuclear Power Plants and

Long Term Change in Water Stress (2025): IPCC scenario A1B

40% of irrigated crops is located in areas of water stress

concern

Baseline Water Stress in Irrigated Areas

73% of current irrigated crops would see water stress

grow 2 to 8 times worse by 2025

Change in Water Stress by 2025 in Irrigated Areas

(IPCC Scenario A1B)

The “Nexus” is the talk of the town:

Bonn, November 2011

Washington DC, January 2012

Tampa, May 2012

Lincoln, May 2012

Los Angeles, August 2012

Stockholm, August 2012

Etc.

What are people thinking of doing at the Nexus?

World Bank water-energy tradeoffs analysis

• Aqueduct: country rapid assessments

• WEAP: scenarios analysis

• Economists quantify trade-offs

• Governments make tough choices??

Water-related risks and

• Electric power generation

• Coal development

• Shale oil and gas development

Water and food:

• Sustainably increasing crop yields and water productivity

using mapping, modeling and information systems

November 8-9, 2012 WRI CCG MindShare Meeting

Nov 8 plenary session: An Emerging Tool for

Business: How to interpret and respond to water

related risks using WRI’s Aqueduct Tool

Nov 9 break-out session: What is business doing to

address the water-food-energy nexus?

Managing Water Risk

September 7, 2012

Jon Freedman

VP – Government Affairs & Policy

GE Power and Water

Water & Process Technologies

29 /

GE /

September 11, 2012

Becoming the global water leader

Glegg

Pure Water

Solutions

Water & Process

Specialty Chemicals

BetzDearborn

Osmonics ZENON

Equipment &

Membranes

Desalination & Reuse

Mobile Water

Ionics

Hollow Fiber Technology

MBR Technology

30 /

GE /

September 11, 2012

GE Water is a global leader

Manufacturing site

50,000+ customers in 130 countries

• HQ: Trevose, Pennsylvania

• 7,900 employees • 130 countries • 50,000 customers • 50 global

manufacturing sites

Wuxi, China Products: Element Rolling, Pro & High Purity Equipment Assembly, Cassette Assembly

Niskayuna, New York, USA GE Global Research Center

Munich, Germany European Technology Center

Bangalore, India John F. Welch Technology Center

Shanghai, China China Technology Center

Oroszlány, Hungary Products: Element Rolling

Hoskote, India Products: Element Rolling

Sorocaba, Brazil Products: Equipment Assembly

Minnetonka, Minneapolis, USA Products: Filters, Membranes and RO machines

Images denote major manufacturing facilities

31 /

GE /

September 11, 2012

Broad portfolio of solutions Desalination Solutions: Drawing on the ocean’s virtually limitless

water resources, GE’s desalination

technologies are helping water scarce

regions to create new freshwater

sources that can quench growing

demand.

Municipal Solutions: Facing unprecedented growth and water

demand, cities are turning to GE’s

advanced membrane and water quality

measurement technologies to tackle

increasingly stringent water and

wastewater regulations and the threat of

new, virulent pathogens in our lakes and

rivers.

Industrial Wastewater: Once considered a by-product, GE’s

water reuse technology is transforming

industrial wastewater into a sustainable,

new water source that can often be used

many times over—dramatically reducing

the strain on our precious water

resources.

Utility Solutions: GE is optimizing system efficiency &

increasing uptime in cooling towers and

boilers by reducing energy usage and

greenhouse gas emissions. Advanced

monitoring systems reduce the risk of

pathogen growth, such as Legionella, in

cooling systems.

Residential Products: GE point-of-use and point-of-entry

filtration systems are enabling

homeowners to produce higher quality

water from every tap in the home. This

same technology is helping developing

countries to leapfrog traditional, costly

infrastructure and provide safe water to

those who need it most.

Product Water: Consumers use the products they trust –

whether it is pharmaceuticals, food, or

beverages. As brands expand globally,

GE technologies ensure high quality

ingredient water for manufacturing

regardless of a plant’s location or its

water source.

Process Chemicals &

Separations: Silently working in pipes, tanks and

process fluids, GE’s advanced chemicals

protect valuable production assets from

corrosion and fouling faced in day-to-day

operations, while improving overall

manufacturing efficiency and quality.

GE Power & Water, Water & Process Technologies Government Relations – Page 32

GE – Privileged & Confidential

Double R&D to $1.5B by ’10

Grow revenues to $25B by ‘10

Reduce GHG emissions 1% by ‘12

Reduce water 20% by ‘12

Inform public

1

2

3

4

5

2005 - 2010

Double R&D to $10B

Grow 2X of GE’s growth

Improve energy efficiency by 50%

Reduce water 25%

Inspire a prosperous clean economy

1

2

3

4

5

2010 - 2015 2x

33 /

GE /

September 11, 2012

GE thought leadership on reuse

• Global White Paper

promoting greater reuse

• “A menu for policy makers”

• Downloaded >40,000 times

2011 Saudi Reuse Summit

34 /

GE /

September 11, 2012

End

Sustainable Water

Management:

The P&G Approach

September 7, 2012

Shannon Quinn, MCP

Researcher

The Procter & Gamble Company

quinn.se@pg.com

Published our first

environmental safety

publication

(1956)

Announced new Long-Term Environmental Sustainability

Vision and 2020 Goals

(2010)

Introduced global corporate cause: Live, Learn and

Thrive™ (2005)

One of the first corporate sustainability departments and

sustainability report (1999)

Pioneered the use of Life Cycle Assessment

(1990s)

Co-founded the Society of Environmental Toxicology

and Chemistry (1981)

Developed first test to evaluate chemical

biodegradability

(1973)

Strong Sustainability Heritage

Issues of

Sustainability:

Not Barriers…

but Business

Opportunities

LONG-TERM WATER VISION: - Water Quantity (no contribution to scarcity) - Water Quality (reuse effluent from sites)

Powering our plants with 100% renewable energy

Designing products that delight consumers while maximizing the conservation of resources

Using 100% renewable materials or recyclate for all our products and packaging

Having zero consumer or manufacturing waste go to landfills

Long-Term Environmental

Sustainability Vision

Relevance of Water to P&G 1. P&G and supplier’s manufacture plants require water

for making ingredients and products

2. Roughly 80% of P&G’s products require water for their use and disposal

*P&G recognizes water issues & relevance for business*

Working towards solutions through:

1. Site actions

2. Use of our products and/or consumer awareness raising

• E.g. Downy Single Rinse (24 billion liters saved)

3. Social responsibility/philanthropy to help alleviate pressing water issues

Evaluating Water Risks

• P&G already assesses basic water risk at plant level, but now working towards a more holistic assessment

• Investigating current water risk assessment tools

– WRI Aqueduct Water Risk Atlas, WWF Water Risk Filter, GEMI Local Water Tool, WBCSD Global Water Tool

• Looking into various assessment models and will decide on next steps this fall

Sustainable Water Management at P&G

SAFEGUARD FUTURE GROWTH OF THE BUSINESS THROUGH

SUSTAINABLE WATER MANAGEMENT AT OUR SITES AND

WATER EFFICIENT PRODUCTS

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