YtDl2r
YtDl2r
YtDl2r
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Risks that can be<br />
influenced by a company<br />
Risks that can be<br />
influenced by basin<br />
stakeholders<br />
Physical risk Regulatory risk Reputational risk<br />
»»<br />
Indirect water use; »»<br />
Direct risk is expected to »»<br />
Most significant for<br />
therefore risk is limited be limited<br />
retailers as consumers<br />
»»<br />
Water scarcity or »»<br />
However, the risks<br />
become more sensitive<br />
contamination of water may be significant for to the impact of their<br />
sources may interrupt suppliers<br />
purchases on the<br />
retail suppliers<br />
- Increasing competition environment and local<br />
- Indirect water use,<br />
with other water users populations<br />
especially from<br />
in the basin may lead - Depending on the<br />
agricultural suppliers, to withdrawal of water situation, consumers<br />
is significant<br />
rights<br />
may decide to refrain<br />
- Changes in precipitation<br />
- Stricter regulations from buying certain<br />
patterns, severe and increased govern-<br />
products in the store or<br />
drought, and flooding mental enforcement not to shop in the store<br />
due to climate change may increase cost<br />
at all<br />
may interrupt supplies for freshwater and »»<br />
Potential causes of<br />
since the most<br />
wastewater treatment brand and reputation<br />
significant water use and discharge, which damage are:<br />
is embedded in crop would lead to price - Agricultural runoff and<br />
or livestock production, increases<br />
wastewater, which may<br />
and potable water is a<br />
have negative impacts<br />
non-substitutable ingredient<br />
on local water sources<br />
for beverage<br />
and ecosystems<br />
products<br />
- High water use in areas<br />
where population<br />
lacks drinking water<br />
»»<br />
Relatively low due to low<br />
direct consumption and<br />
opportunity to switch<br />
suppliers in case of<br />
supplier interruption<br />
- Freshwater availability<br />
(quantity) for suppliers<br />
might be under pressure<br />
due to increasing<br />
demand from other<br />
basin users<br />
- Other basin users may<br />
pollute freshwater<br />
sources (quality)<br />
»»<br />
Some potential risk for<br />
suppliers, which may<br />
impact competitive<br />
position of retailer:<br />
- No or limited<br />
regulation or no or<br />
limited enforcement by<br />
local government can<br />
impact water quantity<br />
and quality in basin<br />
- If operating in a<br />
multi-national basin,<br />
differences in regulations<br />
and enforcement<br />
per country can have<br />
greater impact on<br />
water quantity and<br />
quality downstream<br />
»»<br />
Reputation may be<br />
damaged by selling<br />
products that require<br />
a lot of water and are<br />
produced in basis with<br />
high water-related risks<br />
»»<br />
Decline in economic,<br />
social, and physical<br />
well-being of consumers<br />
due to lack of access<br />
to clean water may<br />
affect market growth for<br />
retailers located in that<br />
area<br />
Table 12. A general overview of water-related risks for the retail sector<br />
52
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