CDP Water Security Disclosure: A Case Study, Confidential Client
Carbon Disclosure Project (CDP) Water Security Disclosure provides companies with insight into current and future water-related risks and opportunities. The water security questionnaire also helps companies to drive improvements in water management and enables standardizing against leading practices.
The structure and content of the water security questionnaire reflect trends in corporate water reporting, the evolving needs of water data users, and developments in public policy agendas.
At Bilancia, We strategized a plan to perform the water stress assessment, operations risk assessment and the financial cost of the risks identified.
Our Approach
Our team facilitated the following to draft the CDP WS.
Mapped the elements of analysis of the sections & sub-sections of the CDP’s WS Questionnaire with the operations of the client.
Prepared a methodology, imported the data, selected the indicators, conducted a baseline & scenario analysis, computed financial implications, drafted a mitigation plan, and conclusively drafted the CDP response.
Overviewed the water risk indicators to assess a company’s risk based on its location and operational characteristics, determined both basin and operational risks. These indicators evaluate water quality risk based on parameters that negatively impact water security for both humans and freshwater biodiversity, including Biochemical Oxygen Demand (BOD), Electrical Conductance (EC), and Nitrogen. The impact of water quality jeopardizes the production output, increases operational costs, causes Supply chain disruption, and increases energy consumption.
Collected information for basin and operational risk assessment using WWF Water Risk Filter tool. Prepared portfolio based on details of WWF Water Risk Filter. Analyzed the Water Stress/ Basin Risk for Business units using WRI Aqueduct/WWF Water Risk Filter, we calculated the Aggregate/Overall Water Risk.
Measured the change from water stress Baseline Values on Water stress, Seasonal Variability, Water Supply, and Water Demand and interpreted the scale of the risk categories: Low (<10%), low to medium (10-20%), high (20 40%), (40-80%), extremely (>80%). The final step is drafting the respective CDP questions.
The Verification of water accounting is done by an authorized third party. They Select the applicable verification standard such as AA1000AS, ASAE3000, Alliance for Water Stewardship certification, and others. They verify the reported data by following the selected verification standard.
