Sustainable Insight: Water Scarcity – A dive into global ... - KPMG

8 | Sustainable Insight: Water Scarcity – A dive into global reporting trendsReduction andtreatment strategiesneed workWe analyzed the number of companiesthat report specific plans to reducethe amount of water their businessuses, and those that report on treatingwaste or contaminated water.ReductionLess than half the G250 (44 percent)report on plans to reduce the amount ofwater they use.Once again, companies in themining and pharmaceuticals sectorsdemonstrate strong commitment towater reporting, with 100 percentdetailing plans to reduce their waterusage in their CR reports. Waterreduction plans are also reportedby a high proportion of large globalelectronics and computer firms(71 percent) and automotive companies(69 percent).However, some industries that relyheavily on water have relatively lowrates of reporting on water reductionplans. For example, less than half(46 percent) of oil and gas companies inthe G250 articulate plans to reduce theirwater consumption.The financial services sector (29 percent)and the communications and mediasector (32 percent) have the lowest ratesof reporting on water reduction plansbut – it could be argued – they have a lowreliance on water, and therefore may notsee water reduction as a high priority.So while the issue of water scarcityis rising in the public consciousness,many leading companies are not yettaking steps to reduce their waterconsumption. As a result, they will likelyexperience increasing public or investorpressure to do so.Results also vary by country. Of thosethat produce a CR report, 95 percentof Indian companies, 69 percent ofSpanish companies and 66 percent ofUK companies include specific plans toreduce water usage. This contrasts withjust 24 percent of Chinese companiesand 27 percent of Japan-basedcompanies.Treatment and reuseJust over one quarter (27 percent) of theworld’s top 250 companies report onwater treatment.Sectors with high water usage havethe highest rates of reporting on watertreatment: mining (100 percent),chemicals (75 percent), electronicsand computers (67 percent) and oil andgas (63 percent). Only 11 percent ofcommunications and media companiesand just one percent of financialservices companies do the same.Once again, we find that Indiancompanies record some of thehighest levels of reporting. Some95 percent report on water treatment,with companies based in Spain(48 percent), South Korea and Australia(both 42 percent) exhibiting the nexthighest rates. When it comes to watertreatment reporting, the UK – unusually– falls to near the bottom of the list (27percent) while only 19 percent of UScompanies provide similar data.© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.