Tuesday, July 10, 2007

Seeking Social Response Solutions for Clean Water: How Some Firms Are Working Now to Mitigate the Potential Risk of Global Natural Resource Wars

You think business and society is carbon constrained…look at water. Future resource wars are inevitable without swift social response.

If the world’s population continues to grow, if we continue to expand our economies, and if we continue to use our resources more quickly than natural processes can replenish them – then resource wars are inevitable. I say this because there simply are not enough resources, be them oil, gas, water, timber, fisheries or agriculture land available for us to continue our rate of consumption unabated. This is known. Yet, we are slow to adopt strategies that can serve to mitigate the risk of future resource constraints and worse yet, resource wars and catastrophic resource failures.

Proclaimed as the “Blue Planet” approximately 71% of the earth’s surface is covered with water. This sounds promising until you consider that about 97.5% of the water on earth is saline, while the remaining 2.5% is fresh water. And the majority of fresh water (68.7%) is currently in the form of ice. With a world population of 6.6 billion people and growing, the amount of fresh water for hydration, hygiene, agriculture, industrial production and ecosystem health gets stretched thin quickly.

The
Business for Social Responsibility (BSR) summarizes the challenging water issues society now faces in this new century. According to BSR, industry accounts for 23% of the total fresh water use worldwide. The United Nations estimates that more than 1.4 billion lack access to clean, fresh and potable water.

With so much attention on climate change, clean energy and alternative transportation fuels and technologies, often other significant environmental issues and social response actions taken by leading corporations are overlooked or understated. We focus on water in this blog because it is literally life line for all human existence and life on earth. Water is a big time resource issue in this new century. Companies like Pepsi, Coors Brewing, Coca-Cola, Diageo, and numerous others taking very proactive measures to conserve, protect and enhance the quality of water for their customers, communities they serve and future generations.

Water is something that we take for granted. It’s likely more precious to human health, quality of life and the sustainability of our planet and future generations than oil, yet we place tremendous economic value on oil, and very little on water. Water is essential to life, yet we pollute and waste it daily with for products, services and activities that on the surface – provide economic utility – but in reality – may be irrational choices we’ve made to earn a buck. If we continue to undervalue water and utilize it for wasteful products and processes, we will constrain future growth and ultimately impact global ecosystems and human health.

Social Response Water Leaders
Coca-Cola’s corporate social responsibility efforts focus on numerous issues including climate change, accountability, packaging, manufacturing processes and
water. Coca-Cola recognizes the value of water to its brand, reputation and long-term longevity as a global beverage company. Coca-Cola has developed a Corporate Water Pledge that essentially state’s that they will reduce, recycle and replenish the water they use. First they will reduce and recycle water from their manufacturing operations. Secondly they will replenish water by developing watershed protection program, community water partnerships and developing rainwater harvesting structures in regions that lack access to clean and potable water. Imagine if big oil reduced, recycled and replenished?

In addition, Coca-Cola is working in partnership with the World Wildlife Fund
(WWF) to conserve water in seven of the world’s most critical eco-regions. The seven eco-regions in which Coca-Cola and WWF are collaborating include: the Yangtze River, the Rio Granda/Rio Bravo in U.S. and Mexico, Southeastern U.S. Rivers and Streams, the Mesoamerican Reef, Mekong River on the Tibetan Plateau, Rivers and Lakes of Coastal East Africa, the Danube River in Europe. Coca-Cola and WWF are addressing unique conservation and watershed issues in each of these seven eco-regions.

In Burkina Faso, one of the poorest countries in the world, Diageo worked with to deliver its
Water of Life initiative with NGO partner WaterAid. Together Diageo and WaterAid enhanced access to clean water, improved sanitation, and provided effective sanitation and hygiene education to local community organizations.

As global risks of water (price, availability, quality, conservation) impact consumers and communities, pressures will increase on corporations and governments to provide solutions. Whether delivered by corporations like Coca-Cola, NGOs like WaterAid or governments, the worlds growing population is thirsty for clean water, and is placing new demands on water for sanitation, agriculture and industry. We see the life-cycle of water as a social response product growth market in this new century.

Mark C. Coleman
Senior Associate, AHC Group, Inc.
Mark@ahcgroup.com

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