49 Water Utilities
49 Water Utilities
49 Water Utilities
49 – Water Utilities
32 Topics
Companies that purchase and redistribute water to the end-consumer. Includes large-scale water treatment systems.
Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
Environmental Energy Water Energy demand in provision of water and wastewater 430, 556 Business
efficiency of treatment and services
operations wastewater
treatment Energy required to be consumed in sourcing and treating
systems water to a quality that meets social demands for
industrial and health applications, and for treating
wastewater to a standard that protects the health of the
community and the environment. Measure can be
reflected as energy demand per unit of water or
wastewater treated.
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
of source water deteriorates.
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
Accounting for as much as 55% of facility operating
budgets (see document), energy costs are a major
concern for water-wastewater utilities. A current lack of
expertise in energy efficiency strategies - through
equipment upgrades and monitoring strategies -
contributes to unnecessary costs, energy consumption
and pollutant emissions.
Natural water Water-related Water management over the twentieth century often 35 Mediating
systems impacts infrastructure involved large infrastructure projects such as dams and Institution
river diversions. These projects were used to address
both conditions of water scarcity and water excesses;
namely, the construction of artificial water storage
facilities (dams) or the exploitation of natural systems
(aquifer storage and recharge), allowing water to be
stored for use during periods of scarcity, and controlling
its potentially devastating impacts during floods.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
if left unaltered
offer a wide range of ‘benefits that are often essential to
maintaining a basic standard of living in both urban and
rural areas’.
Water-related infrastructure imposes many changes on 434 Mediating
natural water systems. Large dams built for water Institution
storage, recreation, or flood control are intended to alter
the natural hydrologic regime by affecting the size,
distribution, and timing of streamflow. They also trap
sediments and food sources used downstream in deltas,
and affect temperature regimes leading to changes in
ecosystems. Major irrigation systems withdraw water
from rivers or lakes to be used consumptively on fields to
grow food, reducing flows in natural systems. These
physical, chemical, and geomorphological changes affect
the biological productivity and characteristics of aquatic
ecosystems, which in turn affect flora and fauna as well
as economics and politics
Fresh water Management of As the global population grows and demand for food and 428 Civil Society
availability reduction of energy increases, the pressure on freshwater ecosystems Organization
fresh water will intensify. To add to this, the main effects of climate
availability due change are likely to be felt through changes to the
to water hydrological cycle.
collection and
distribution
projects
Water sources - primary and alternative; infrastructure 32, 561 Business
for collecting and distributing water; and risks to water
quality and quantity. Types of risks that exist in relation
to water quality and quantity; processes for monitoring
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
such risks; identification and use of alternative water
sources; potential and actual impacts on human health,
environment and surrounding infrastructure. Risks
include CBR contaminations, infrastructure collapse,
natural disasters, etc. Related to types of water sources
from which water is retrieved and to which it is
redistributed. These include surface water (in river, lake,
wetland), under river flow water (found in hyphoreic
zone), groundwater (from pore space of rocks and soil),
sea water, and frozen water (icebergs). Involves available
quantity of water from such sources. Identification and
use of alternative water sources in case of extreme
weather events; includes interconnections with other
water systems (storm, rain, etc.) in case of need due to
natural disaster, extreme weather conditions,
contaminations, etc. Relates to conservation plan in case
of water shortage.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
economic vitality of society. CBR threats exist that water
utilities must be prepared to prevent and deal with.
Water resource Measures taken to ensure water availability. 605 Business
management
Water availability includes protecting the natural stock of
water (both ground and surface) against overuse and
pollution, as well as against peaks and troughs in
availability. However, it also includes ensuring availability
within the natural environment to ensure that ecosystem
services are sustained. With increasingly frequent
extremes and observed declines in river flow and run off,
water availability is likely to become a greater challenge
in the future. Buffering water resources against climate
change as well as changes to demand and supply will
require “no regret” investments and long term inclusion
of risk mitigation and adaptation strategies within
investment decisions.
Local, national Describe water management on local, national or 605 Business
and regional regional level.
agreements
Rivers or lakes are sometimes shared among various
different countries. For example, the Nile River Basin is
shared by 9 countries. Of these, Egypt and Sudan
undertake very substantial withdrawals from the river.
This underscores the importance of irrigation for their
agricultural economies. However, these withdrawals are
several times the amount of water generated from
within these two countries, with Egypt being by far the
biggest consumer. All of these countries located at the
Nile River Basin are already in a situation of water stress
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
(i.e. when the demand for water exceeds the available
amounts during a certain period or when poor quality
restricts its use).
Economic and trade policies play a crucial role in
promoting the sustainable use of water resources. The
question that arises is what sort of policies are best
suited to ensuring sustainable outcomes at national,
regional and global levels. There is a tendency towards
protectionist policies that protect national or regional
resources, particularly as water becomes scarcer and
more valuable. Protectionism argues that use of
economic instruments and the market mechanism risks
having water resources diverted to regions that have
more economic prowess, leaving the vulnerable further
marginalized. However, enacting protectionist policies
can also foster a climate of inequality where water poor
regions cannot afford products that have high water
footprints.
Policy-makers have to be cognizant that neither the
market-based nor the exclusive reliance on command-
and-control approaches can be a ‘one-size-fits-all’
approach. After all, what may seem like a beneficial
intervention in one place, may have unintended
consequences in others, given the complexity of the links
between countries and regions. As some theorists
suggest, resource scarcity in one region can have
significant indirect effects on the international
community.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
important to develop measures for regional water
management in order to ensure that the interests of all
the countries dependent on this one water source have
the ability to use it.
Wastewater Risk Identification and management of risks to wastewater 564, 565 Business
quality management quality in relation to contamination (of the water itself
and environment through which it flows) as well as the
infrastructure used for transportation. Includes the
materials (rigid or flexible) used for sewage systems;
design capacity and expected lifeline; number of
connections (to households, commercial, industrial and
natural discharge locations, including streams, lakes,
etc.); number of necessary upgrades due to leaks and
breakage, as well the frequency of upgrades;
environmental impacts of pipeline construction.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
Wastewater Adherence to Level of compliance with regulations. Successful 563 Business
reuse regulations on wastewater reuse projects must take into account all
wastewater regulations - those specific to wastewater treatment
reuse plants and utilities to which the wastewater is distributed
- with which they must comply during the planning
process. This includes, but is not limited to, applying for
required permits, such as permits for ground/surface
water withdraw and water quality parameters; following
air emission limits of relevant power plant. Ultimately,
such compliance is evident in the processes employed for
monitoring and ensuring wastewater chemical
compositions and flow rates based on wastewater
availability, composition, and water treatment process
fluctuations.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
desalination (distillation and reverse osmosis) in order to
become fresh water.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
Emissions to air Wastewater Types, relative amounts and frequency of pollutants 544 Business
treatment generated by wastewater treatments. Relates to volume
plants of wastewater treated; infrastructure capacities and
stability.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
irrigation projects, plays an important part in meeting
demands for water. Yet while they contribute to food
and energy and help manage the extremes of water,
water resources infrastructure can also adversely impact
human health. Dams and irrigation projects can, if not
appropriately designed and managed, create breeding
grounds for, for example, black flies that spread
onchocerciasis and mosquitoes that spread malaria,
lymphatic filariasis and Japanese encephalitis. These
projects may also create habitats that encourage growth
of the host snail of schistosomes.
Untreated Measures aiming at reducing untreated wastewater 78 Mediating
wastewater discharge. Institution
discharge
Illegal and unreported releases of untreated wastewater
continue to be an issue all over the world. For example,
up to 90% of wastewater in developing countries flows
untreated into rivers, lakes and highly productive coastal
zones, threatening health, food security and access to
safe drinking and bathing water.
Water Endocrine Leading companies also partner with technology 460 Financial
pollutants' disruptors providers to investigate treatment of emerging water Markets &
treatment pollutants such as endocrine disruptors. Information
Users
Recycled Post wastewater Relates to treatments applied to wastewater and use of 563 Business
wastewater treatment ultimate output (recycled water). Multiple types of
quality wastewater treatments can be adapted to different uses,
such as in local refineries and power generation
companies. For instance, recycled/ reclaimed water can
be distributed to local electric utilities for use in their
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
production systems, i.e. power generation cooling
systems or discharged to streams to promote
environmental flows. Different 'types' of water exist
based on treatment: tertiary water refers to water that is
filtered and disinfected for industrial and irrigation use;
nitrified water is nitrified tertiary water for cooling
towers; softened RO water is secondary water with
either lime clarification or MF plus RO for groundwater
recharge; etc.
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
categories: · Companies as service-providers (e.g. water
utilities). · Companies as users of water (This applies to
almost all industries, however businesses producing
water-based products or who use water intensively, such
as silicon chip manufacturers, oil industry, beverage
companies, or food- and feed processing industries, will
face greater public scrutiny) · Companies as enablers of
access to water (e.g. manufacturers of water and
wastewater treatment equipment)
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
Drinking-water Microbial and Ensure drinking-water safety includes microbial and 588 Mediating
safety chemical chemical hazards Institution
hazards
Access to safe-drinking water is essential to health, a
basic human right.
Corruption Water allocation Measures taken to avoid corruption with regard to water 516 Mediating
allocation. Institution
A formidable problem in many water institutions is
corruption. In too many cases corrupt behaviour has
become the norm and ironically, corruption can
constitute an institution in its own right. Corruption not
only undercuts development and raises the stakes
regarding risks and uncertainties of water availability and
allocation, it also undermines critical foundations of
trust, the rule of law, fairness, and efficiency of water
institutions. Well-functioning institutions have developed
systems of accountability. Considering the frequency of
corruption in water, formal systems of accountability are
often deterred and replaced by discretionary decision-
making, characterized by exclusiveness and limited
transparency. This renders water institutions less
effective and less prone to adapt to new challenges as
the status quo is preferred to protect vested interests.
Water Experts concur that the water crisis is a crisis of water 508 Civil Society
management governance. Corruption is certainly not its only cause, Organization
but it is a major factor and a catalyst in this crisis.
Corruption pervades all aspects of the water sector, it
inflates costs for drinking water, how it is detrimental for
irrigation or large dams and it abets large-scale water
pollution. Corruption creeps into water management in
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
many industrialised countries and makes the global
adaptation to climate change even more difficult.
Local New plant Utilities are highly dependent on a number of 479 Business
community instalment stakeholders to conduct their business, including:
engagement Local communities: Not In My Back-Yard attitude is quite
strong when it comes to building power plants, waster or
water treatment facilities, or transmission lines. Our
Head of Utilities referred to this as the ‘banana issue’,
Build Absolutely Nothing Near Anything, which is faced
by the sector.
Other Business Climate change Global concern over water supplies is increasing, and the 479 Business
strategy affecting utility sector will be directly affected by this issue due to
business - Fresh the large volumes of fresh water used in power
water generation. A physical shortage of water (for nuclear and
availability thermal plants) and/or a temporary limit on water usage
by local governments (for hydro facilities) can result in
drastically reduced outputs, potentially requiring utilities
to purchase replacement power from the market to
meet supply commitments. As a direct result of the
reduced power supply, power prices will spike at these
times, compounding the problem for those affected.
Nuclear power plants with recirculating water cooling
(evaporation cooling towers) consume up to 35% more
water than standard coal plants. Poor hydrological
conditions in a given year can have a significant financial
impact. Going forward, we see this issue growing in
importance, as water scarcity gains attention in the
public eye and climate change continues to exert its
effect on water supplies.
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
Economic and Water scarcity, deteriorating water quality, aging 460 Financial
environmental distribution and collection networks in developed Markets &
risks affecting markets, as well as increased consumption and rapid Information
business infrastructure expansion in emerging markets represent Users
some of the key challenges for water utilities. Tightening
regulations, political risks and adequate cost recovery are
yet other concerns. Leading companies perform active
resource management, reduce water losses in
distribution, and foster demandside efficiency.
Fostering water Water scarcity, deteriorating water quality, aging 460 Financial
demandside distribution and collection networks in developed Markets &
efficiency markets, as well as increased consumption and rapid Information
infrastructure expansion in emerging markets represent Users
some of the key challenges for water utilities. Tightening
regulations, political risks and adequate cost recovery are
yet other concerns. Leading companies perform active
resource management, reduce water losses in
distribution, and foster demandside efficiency.
Corporate Executive Board Executive board compensation and ROE chosen as 521 Business
governance compensation pricing factor. High profile securities fraud fines (USD
0.6bn, Goldman Sachs vs. SEC), record ESG related
provisions (USD 20bn, BP oil spill) and questionable
compensation schemes (18.7% of US TARP used for
bonus payments) may suggest need for a general
corporate governance review.
Gender GOVERNANCE / EUROPE: boardroom lady boom: is it 389 Financial
participation on possible without quotas? Markets &
governance On 22 June, the CapitalCom agency published its 2011 Information
bodies survey into the boardroom gender mix of CAC 40 Users
companies, with fairly encouraging results: the
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
WATER UTILITIES Page 18 of 24
Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
proportion of women on the board has doubled in recent
years, from 10.5% in 2009 to 20.8% in 2011.
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
Commission in December 2010 and the European
parliament resolution of 17 January 2008 calling for the
Commission and member states to promote a balance
between women and men on company boards,
particularly where member states are shareholders.
Sustainability Topics for Sectors: What do stakeholders want to know? May 2013
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Topic
Sustainability
Topic Specification Explanation Reference(s)1 Constituency
Category
(if available)
reach retirement age within the next five years.
Companies such as RWE AG have set up plans to address
this challenge.
Water The liberalization trend increases competition and 460 Financial
management rewards integrated, cost-efficient and customer- Markets &
oriented water management strategies. The recent Information
recognition of access to water and sanitation as a human Users
right underscores the importance of stakeholder
engagement. As pricing strategies come under increased
scrutiny, companies opt for increasingly innovative tariff
structures
Water losses Water Water scarcity, deteriorating water quality, aging 460 Financial
distribution distribution and collection networks in developed Markets &
markets, as well as increased consumption and rapid Information
infrastructure expansion in emerging markets represent Users
some of the key challenges for water utilities. Tightening
regulations, political risks and adequate cost recovery are
yet other concerns. Leading companies perform active
resource management, reduce water losses in
distribution, and foster demandside efficiency.
1
All references can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx
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References
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