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Sustainability and Climate Change

Tapping into water’s hidden value

Water managementWith the increased growth expected in Africa comes an increased need for management of natural resources such as water to ensure that they can meet the needs of this business growth. It is well known that South Africa’s current water sources and purification systems are under strain and climate change is expected to further aggravate the growing scarcity of water with changing rainfall patterns.

These changes could have different impacts on business from increasing water shortages to increasing costs for clean water. Does business really understand the impact it will have on their own business? 

Business impact


The development of a water strategy is essential for those who understand the growing demand stakeholders are placing on businesses and brands to become better stewards of our increasingly fragile water supply. In the past, businesses have viewed water as a minimal operational cost and not a strategic issue. However, water has now emerged as a critical issue for both corporations and the public sector in response to increased water demand, climatic risks and potentially negative impacts on brand value.

The results of the 2010 CDP Water Disclosure report indicated that of the companies responding - 50% said they expected impacts within 1 to 5 years and 39% see current impacts.

The value of a water stewardship program (the hidden value of water) resides in brand value, business continuity (physical availability, license to operate) and as a driver for innovation.

Client challenges

  • Identifying all risks and opportunities arising from water in the business
  • Understanding stakeholder expectations
  • Potential reputation risk if water is not managed effectively by the business
  • Understanding the impact of water scarcity on operations, products and more importantly profitability now and in the future
A Sustainable solution

Deloitte’s Sustainability Enterprise Value Map provides a holistic blueprint that identifies efficiencies and taps into potential value embedded across the entire water supply chain. Only by approaching water from the position of how it impacts the business as a whole and how initiatives add value to shareholders and stakeholders, can leaders begin to truly understand, manage and report on the key areas of value and risk. By understanding the hidden impact of water throughout the water supply chain Deloitte can assist in developing a sustainable business strategy for both present and future Sustainability and Climate Change conditions.

Contacts

Duane Newman  
Duane Newman
Director
Tel: 011 806 5362
Email: dnewman@deloitte.co.za

Peter Oldacre  
Peter Oldacre
Senior Manager
Tel: 011 209 6308
Email:poldacre@deloitte.co.za

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