Robert Greenwood (Principal, Ross Strategic) - UN CEO Water ...

Guide to Water-RelatedCollective ActionCEO Water Mandate MumbaiWorking SessionMarch 7, 2012

Guide to Water-Related Collective Action | 2Societal Risks by Severity and LikelihoodSource: World Economic Forum 2012

Guide to Water-Related Collective Action | 3Risk and ControlImpact on CompanyDirectoperationsSupplieroperationsWatershedconditionsCompany InfluenceDirectoperationsSupplieroperationsWatershedconditions

SuccessGuide to Water-Related Collective Action | 4From Challenge to Systematic, Sustainable OutcomeExit collectiveaction as riskreduces throughachievingcollective actionobjectives and/orinstitutionalizationof externalcapacity & interestEvaluate CA need and Determineappropriate CA processInitiate CollectiveActionBuild Capacity & InterestTime

Guide to Water-Related Collective Action | 5Background• Collective Action Guide Initiated March 2012• Collaboration Among• CEO Water Mandate• Water Futures Partnership• Pacific Institute (rep. Mandate Secretariat)• Pegasys Strategy and Development• Ross Strategic• Official Release at Stockholm WWW 2012• Beta Version 1.0

Guide to Water-Related Collective Action | 6

Guide to Water-Related Collective Action | 7Case Example Contributors• AB-InBev• Finlays Horticulture• Molson Coors BrewingCompany• Sasol New Energy• Anglo American• SABMiller• SEAAWA• Nike, Levi, H&M, Nautica• Suez Environment• The Coca-Cola Company

Guide to Water-Related Collective Action | 8Why a Collective Action Guide?• Collective action when effective:• Fresh ideas and perspectives• Credibility and legitimacy• Momentum for change• Resources to address common objectives• Resilient solutions• Collective action challenges:• Non-conventional relationships, non-traditional partners• Complex needs, interests, personalities, organizational structures• Public scrutiny, unrealistic expectations, skepticism about motives• CEO Water Mandate Guide to Water-Related Collective Action• Optimize collective effort, common objectives, shared outcomes• Minimize risk of inefficient process, miscommunication, poor outcomes

Guide to Water-Related Collective Action | 9Positioning Collective Action• Coordinated engagement among interested parties insupport of common objectives• Emphasis on joint, two-way dialog• produces stronger outcomes than unilateral action• Range of forms• Informal information exchange and consultation to• Structured joint decision making, implementation,and accountability• Effective collective action tailored• needs, objectives, conditions, and capabilities

Guide to Water-Related Collective Action | 10Scope and Purpose• Companies new to external engagement• Internal scoping of collective action needs/options• Prepare company to initiate external party discussions• Assist in unpacking the balance between:• Motivation for engagement in multi-party collaborativeefforts as the backbone of SWM progress• Requirements for effective collective action = ability andwillingness to embrace joint interests, shared goals, andcommon objectives• Two companion efforts:• Water Action Hub• Water Futures Partnership Compendium of LessonsLearned

Guide to Water-Related Collective Action | 11Collective Action Guide: Overview• Section 1: Introduction• Section 2: Scope and Purpose of the Collective Action Guide• Section 3: Understanding Water-Related Collective Action• Section 4: Preparing for Collective Action• Section 5: Structuring and Managing Collective Action• Appendices:• Resources• Structured Analysis Frameworks

Guide to Water-Related Collective Action | 12Understanding Water-Related CollectiveAction: Driver and Motivations• Risk & Stewardship• Managing operational pressures resulting frominadequate availability, supply, or quality• Maintaining/enhancing legal/social license to operateby demonstrating responsible resource management• Assuring investors and other stakeholders water risksadequately addressed• Uphold corporate values and commitments related tosustainable development• Collective action desirable/necessary whenunilateral action will not produce these outcomes

Guide to Water-Related Collective Action | 13Water Management Domains and Degreeof ControlCatchments withSupplier OperationsCatchments withCompany OperationsSupplier Operations• Optimize Water Use• Minimize WaterResource ImpactsCompany Operations• Optimize Water Use• Minimize WaterResource ImpactsWATER MANAGEMENT INTERDEPENDENCEHigh Direct Control Medium to Low Direct Control Indirect Control

Guide to Water-Related Collective Action | 14Understanding Water-Related CollectiveAction• Public sector primary responsibility for sustainablewater management• Public sector may suffer from:• Inadequate financial resources• Insufficient institutional capacity• Inappropriate governance mechanisms• Water-related challenges can arise and escalate• Collective action responds to these deficiencies• Engagement tied to local/catchment-level outcomes

Guide to Water-Related Collective Action | 15Benefits of Collective Action• Clear articulation of problems, shared ownership of solutions,clarity of joint purpose• More informed decision making by the business initiator andother parties to the engagement• Broader scope and depth of motivation and momentum insupport of water-related improvements• An expanded pool of expertise, capacity, or financial resourcesfocused on fostering change• More durable outcomes that are supported by the engagedparties• Establishment and maintenance of credibility and legitimacywith critical interested parties• Stronger water governance by engaging multiple stakeholders,including all water users

Guide to Water-Related Collective Action | 16Collective Action Preparation• Internal analysis and dialog to understand:• water challenges action areas,• interested parties, and• engagement options.• Create solid footing for initiating externaldiscussions and collective action implementation• Possibility of partner as “guide” to approachingcollective action considering• capacity, networks, reputation, and mandate

Guide to Water-Related Collective Action | 17Collective Action Preparation and ImplementationELEMENT 1:Articulating Water-RelatedChallenges and Action Areas(Section 4.1)ELEMENT 2:Characterizing the InterestedParty Landscape(Section 4.2)ELEMENT 3:Selecting a Collective Action Level of Engagement(Section 4.3)ELEMENT 4:Preparing for Collective Action(Section 4.4)ELEMENT 5:Implementation, Refinement and Evolution(Section 5)

Guide to Water-Related Collective Action | 18Discussion Segment OneLinking Water Resources ManagementChallenges and Collective Action

Guide to Water-Related Collective Action | 19Water Resource Management CycleCatchment Water ResourceWater Infrastructure SystemUpstream WaterResourcesWater Supply andTreatmentCatchmentEcosystemsWaterGovernance &ManagementCompany, Supplier,and CommunityWater UsesReceiving WaterResourcesWaste Water andStormwater Treatmentand Discharge

Guide to Water-Related Collective Action | 20Characterizing Water-Related Challenges, Causes, and RisksDrivers ofWater ResourceStateWaterManagementSystemWater-RelatedChallengesCompanyInterestsEconomicDevelopmentDemographicShiftsChanges toquality,quantity, oravailability;alterations togoals orobjectivesInfrastructureManagementand FundingWaterGovernance andRegulationInsufficientresponse towatermanagementpressuresandrequirementsWater Over-AllocationWaterSupply/SanitationUnreliable/UnavailableWater QualityDeteriorationDirectoperationalimpacts orconcernedcommunityactors orcustomersPhysical RiskRegulatory RiskClimateVariabilityWater Planning,Management,and PricingFlood DamageReputationalRiskSocial NormsandExpectationsEcosystemDegradationStewardshipOpportunity

Guide to Water-Related Collective Action | 21Potential Collective Action Areasfrom the Water Action HubnEfficient Water UseEffluent Management,Wastewater Reclamation, ReuseCommunity-Level Access to SafeWater, Sanitation, and HygieneStorm Water Management andFlood ControlInfrastructure Finance,Development, Operation, orMaintenanceSustainable AgricultureClimate Change Adaptation andResilienceEcosystem, Source WaterProtection, RestorationMonitoring and KnowledgeSharingEngaging in ParticipatoryPlatformsPublic Awareness and EducationImproved Water Governance,Policy Development, andImplementation

Guide to Water-Related Collective Action | 22From Challenge to ActionIMMEDIATE WATER CHALLENGEWater Quality Deterioration:SedimentationWATER MANAGEMENT SYSTEM DEFICIENCYWater Governance and Regulation:Regulation of land management practicerequirements to prevent sedimentation lackingDRIVER OF WATER RESOURCE STATEEconomic Development:Expansion of basin agricultural activityACTION AREA A:SustainableAgricultureACTION AREA B:Improved WaterGovernance andPolicy DevelopmentACTION AREA C:Engaging inParticipatoryPlatformsACTION AREA D:PublicAwareness andEducation

Guide to Water-Related Collective Action | 23Scoping Water-Related Challenges andExplore three questions:Action Areas1. What are your priority water-related challengesin the catchment of concern?2. What socioeconomic drivers and underlyingdeficiencies in the water system lead to thechallenges?3. Which type of interventions (action areas) willbest address the problems you have identified?

Guide to Water-Related Collective Action | 24Discussion Segment TwoEngaging on Water: With Whom, onWhat Topic

Guide to Water-Related Collective Action | 25Understanding Prospective ExternalParty Participants• Many potential interests, organizations, individuals• Those sharing the water resource• Community-based organizations• Producer co-operatives• Governmental water managers• NGOs with water or community-related missions• Donors and aid agencies• Infrastructure managers• Research institutions• Analysis to identify critical, legitimate, and relevantinterested parties

Guide to Water-Related Collective Action | 26Identifying Critical Participants• Six Point Analysis• Decision Point• Opportunity• Expertise• Impacts• Expectations• Conflict

Guide to Water-Related Collective Action | 27Identifying & Characterizing ProspectiveParticipantsExplore three questions:1. Who has what type of interest in yourchallenges and planned action areas?2. Who can best help address your challenges?3. Who needs to be part of the solution(s) thatwill address your challenges?

Guide to Water-Related Collective Action | 28Discussion Segment ThreeScoping the Collective Action Level(s) ofEngagement

Guide to Water-Related Collective Action | 29Understanding Collective ActionLevels of Engagement• Four levels of engagement:1. Sharing information (informative)2. Seeking advice (consultative)3. Pursuing common objectives (collaborative)4. Integrating decisions, resources, actions(integrative)

Guide to Water-Related Collective Action | 30Understanding Collective Action• Distinct choices:Levels of Engagement (2)• Resource requirements• Desire/need for common purpose andconsensus• Expectations for joint, coordinated action• Expectations for responsiveness• Less demanding levels may meet objectives• Less demanding levels often precede moredemanding ones

Guide to Water-Related Collective Action | 31Collective Action Levelsand Associated RequirementsCollective ActionProcessResourceRequirementsDesire/Need forCommon Purpose andConsensusExpectation forCoordinated ActionExpectations forCompanyResponsivenessInformative Low Not Needed Not Expected LowConsultative Moderate Low Low or Not Expected LowCollaborative Moderate to High Moderate to High Moderate to High Moderate to HighIntegrative High High High High

Guide to Water-Related Collective Action | 32Selecting the Level of Engagement• Three factors:1. External party dependence2. External party interest/capacity3. Internal company interest/capacity• High dependence points to high engagement levels• Interest or capacity may constrain, at least nearterm,options

DependencyLOW HIGHExternal Interest /Capacity RequirementGuide to Water-Related Collective Action | 33Mapping Dependency, Interest, and CapacityOutcomes to Collective Action Engagement LevelsIntegrativeCollaborativeReserveCapacity/InterestConsultativeInformativeReserveInterest/CapacityInternal Interest/Capacity Requirement

Guide to Water-Related Collective Action | 34Collective Action Levels and AssociatedRequirements• What degree of dependence on external partiesdoes success in your action have?• What is the degree of external party interest andcapacity to participate in a collective action relatedto your action area?• What is the degree of internal organizationalinterest and capacity to participate in a collectiveaction related to your area?

Guide to Water-Related Collective Action | 35Discussion Segment FourDesigning and ImplementingCollective Action

Guide to Water-Related Collective Action | 36Designing the Collective ActionEngagement• Articulating collective action• objectives, intervention type, and outcomes• Establishing core roles and general participation• Roles: initiator, convener, process manager, neutralparty, experts, funders• General Participation: effective, completerepresentation of interests• Addressing Interest and Capacity deficiencies• External: Clarity for shared risk, responsibility, benefits• External: Capacity for effective representation• Internal: State of credibility and trust• Internal: Capacity to be responsive to other interests

Guide to Water-Related Collective Action | 37Structuring and Managing Collective Action• External, iterative engagement to produce:• Products (scope of work, process charter, etc.)• Understanding, trust, credibility amongparticipants• Four effective collective action principles• Create clarity• Support interaction and responsiveness• Establish transparency and accountability• Build in ability to adapt

Guide to Water-Related Collective Action | 38Structuring and Managing Collective ActionSix effective collective action structural elements• Degree of formality• Decision-making approach• Commitments and responsibility boundaries• Time frame• Legal, regulatory, and policy factors• Closure expectations

Guide to Water-Related Collective Action | 39Wrap UpMoving to Action; Next Steps