Packaging suppliers could be asked by key customers to produce their water use data, under a ‘water disclosure project’ just launched by the Carbon Disclosure Project (CDP).
A first annual Water Disclosure Project report is due autumn 2010, which will allow investors to evaluate exposure to water shortages of the world’s biggest, water intensive companies.
A questionnaire is going out to 300 of the world's largest companies in sectors including fast moving consumer goods (FMCG), food and beverages, paper, chemicals, pharmaceuticals and semi-conductor manufacturing, which is relevant to radio-frequency identification technology.
The selected companies will be asked to measure and disclose figures on water usage and to identify water-related risks and opportunities in their own operations and within supply chains. In some cases it could embrace packaging suppliers.
Head of CDP Water Disclosure Marcus Norton told Packaging Today that in order to defend the choice of companies, a selection process had to be as ‘scientific’ as possible. He said the packaging supply chain would find out soon which major industry consumers have been included on the list.
The UN forecasts that by 2030 almost half of the world's population will live in areas facing water stress - an expected impact of climate change. Companies could see water shortages impacting on their manufacturing processes and also face new regulations increasing water prices, according to the CDP.
"It is vital that institutional investors have access to high quality information on how water-related risks threaten corporations, both directly and within their supply chains, to make better informed decisions and direct the flow of capital away from risks," said Norges Bank Investment Management (NBIM), the project's lead sponsor.
