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    smart water a prosperous future for thefood and drink supply chain

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    Business in the CommunityWater on wheat

    (Maarten Takens / ickr)2

    Executive summary 3

    Foreword 4

    Introduction 5

    Why this report? 6

    Ten reasons why businesses should take action 11

    Six steps towards sustainable water management 14

    What the food and drink sector is already doing 19Useful tools, guidance and initiatives 38

    Contents

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    Smart Water: a prosperous future for the food and drink supply chain 3photo caption

    Water is a national concern in the UK : Water scarcity, water quality, population

    growth and climate change make for a challenging future.

    Feeding the nation: The UK food supply chain employs 3.7m people, produces60% of our food and contributes 7% of GDP.

    An essential ingredient: Water is vital to food and drink, including growing,cleaning, cooling and processing.

    Water risks and the food and drink supply chain : Activities in the food anddrink supply chain can reduce water availability in areas of need and pollute watersources.

    Why should businesses take action?

    • Act responsibly

    • Protect reputation

    • Ensure a social licence to operate

    • Reduce water costs and improve economic performance

    • Develop resilience to water scarcity

    • Develop resilience to ooding

    • Respond to investor expectations

    • Support government policy, comply with legislation and be prepared for futurechanges

    • Reduce energy use and carbon emissions

    • Ensure long-term resilience through valuing water as a natural capital

    1Understand your relationship with water

    Understand the nature of your water use and disposal, where it occurs inthe value chain, the characteristics of water sources, your impacts, and associatedrisks and opportunities.

    2 Create a plan of actionPrioritise areas where you can have most impact and decide on a planframed in a water policy with targets, and mechanisms for monitoring progress andpublicly disclosing information. The policy should be forward looking and addresswater quality and quantity in operations, agricultural supply chains and catchments.

    3 Manage water sustainably in your operationsIdentify where water efciencies can be made and invest in new productionprocesses/technologies. Use alternative water sources and involve staff in watermanagement.

    4 Work with your agricultural suppliersCollaborate with agricultural suppliers, including: providing advice andinformation; sharing your water sustainability practices, tools and lessons learnt;encouraging suppliers to develop sustainable water management strategies; andproviding incentives for action such as procurement standards, supplier scorecards,premium prices and longer-term contracts.

    5 Build resilience to ooding and water shortagesPut risk management plans in place for your operations and supply chainsto increase resilience to extreme weather and ensure you are prepared to respondquickly. Support farmers in developing parallel plans.

    6 Collaborate on sustainable water managementDevelop an understanding of catchment-level risks and oppor tunitiesassociated with water at your operating sites and in your supply chain. Look foropportunities to engage locally, with catchment par tnerships, and nationally, withGovernment and industry initiatives.

    Executive summaryWhy this report is needed and what businesses can do

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    Business in the CommunityRory Stewart4

    Water is central to our lives: for drinking, to sustain wildlife,

    for farming and for ir rigation. Safeguarding the quantityand quality of our water is vital for our health, wellbeingand our economy. We are moving into a century withincreasing drought and oods.

    Food and drink companies and farmers are central toovercoming our water challenges. We would like everybusiness in England, from a small family farm to a largefood manufacturing company, to have access to the waterresources they need to run their businesses and grow in away that protects the environment.

    I hope that this report will open up new conversationswith businesses in the food and farming sector aboutmanaging water sustainably in their operations, supplychains and catchments in which they operate. We aredeeply grateful to His Royal Highness, The Prince of Walesand Business in the Community for the work they havedone.

    Rory Stewart Parliamentary Under Secretary of Statefor Environment and Rural Affairs

    Foreword

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    Smart Water: a prosperous future for the food and drink supply chain

    Water is our most precious resource, however the global

    demand for safe, fresh water continues to increase, withthe Water Resources Group currently forecasting that by2030, water withdrawals will exceed water renewals, if noaction is taken.

    We believe that effective and responsible waterstewardship is critical to ensure the safe and resilientsupply of our current and future global requirements.

    At Nestlé, we are determined to play our role in helpingconserve and preserve the UK’s water resources. Wehave focused on improving the water efciency across ouroperations and have already delivered a 45% reduction inabsolute water usage, against an ambitious target of 50%by 2020 (compared to 2006).

    We recognise however, that to optimise our impact onwater stewardship, we must both take and promotea catchment level approach considering where wesource our materials, our factory locations and whereour consumers and local communities live. Workingtogether with our employees, partner organisations andsociety we can help educate and engage, to identify newand innovative opportunities to address these ongoingchallenges.

    We are all facing this urgent challenge and need to nd

    ways in which we can not only drive efcient use andeffective treatment of our water and waste water, butwork collaboratively at a catchment level to implementinterventions where they can be most efcient andsustainable.

    By working better together on a pre-competitive basis andsharing best practices across water security, water supply,sanitation and treatment we can accelerate our collective,positive impact on the water challenges we face.

    Dame Fiona KendrickChairman and CEO, Nestlé UK & Ireland

    Introduction

    Dame Fiona Kendrick(Nestlé) 5

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    Smart Water: a prosperous future for the food and drink supply chain

    Why this report?

    This report is intended as a practical resource for food anddrink manufacturers, caterers and retailers operating in theUK. Plenty of tools and resources exist to help businesses,but it can be difcult to know where to start – and whereresponsibilities end. This report brings these into one place.It explains why looking after water matters, and the businessdrivers for having a food and drink supply chain resilient torisks associated with water. It provides guidance framed in‘Six Steps’ for companies to work through. To inspire action,it draws on examples of w hat companies are already doingindependently, with their agricultural supply chains and throughcollective action. At the end of the report, useful tools, initiativesand information sources are listed.

    (Photos from top left: Matthew Power / Anglian Water, Adnams,Darkday / ickr, David Salaa / ickr, Anglian Water) 7

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    Business in the Community

    Water: a national concern

    Our national freshwater resources, and the ecologicalbiodiversity they contain, face a number of threats and a stablesupply of good quality freshwater can no longer be guaranteedin many parts of the UK.

    Several parts of the UK face problems of water scarcity. This is particularly so in the East and South East, due to a highdemand for water, coupled with relatively low rainfall. Waterscarcity is reected in reduced river ows, lowered reservoirand groundwater levels, and a drying up of wetlands – all ofwhich can have a critical impact upon aquatic ecosystems. 1

    In many catchments, where water is fully committed andabstraction cannot be increased without causing environmentalharm, businesses may face limits on the amount of wateravailable for abstraction at their sites. 2

    Water quality is also an issue. Despite signicantimprovements in the health of many of our rivers, more needs tobe done. Currently only 17% of water bodies in England meet‘good ecological status’, as dened by the Water FrameworkDirective. 3 A key concern is ‘diffuse’ pollution from manysources, including agriculture. This matters to all of us – with

    potential economic as well as environmental consequences.

    Water scarcity also worsens waterquality through a diminished ability todilute pollutants, and by increasing therisk of low oxygen levels.

    Population growth is increasing thedemands on water resources. The UKpopulation is forecast to grow by around10 million by 2035. Over 40% will be in the relatively water-scarce South East.

    Climate change will be felt throughout the country. Overall,the UK can expect warmer wetter winters and hotter driersummers, with the South East getting drier, and Scotland andthe North West of England getting wetter. 4

    Droughts may become more commonplace; and changingrainfall patterns could af fect river ows and make it harder forgroundwater reserves to be recharged. At the same time, moreintense rainfall is likely to increase the frequency of surfacewater ooding as experienced in a catalogue of major oods in2007, 2009, 2013 and 2015.

    Only 17% ofwater bodies in

    England meet‘good ecological

    status’

    Otter (Pixel Addict / ickr)8

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    Smart Water: a prosperous future for the food and drink supply chain

    Water: an essential ingredient

    From farm to factory, water is an essential ingredient inproducing food and drink. It is a main ingredient in themanufacturing and processing stage and is an indispensableelement in many steps, such as washing, boiling, steaming,cooling and cleaning. 5 The cleaning of processing equipment/plants and food products accounts for up to 70% of a factory’susage and generates signicant wastewater. Other par ts of thesupply chain, such as the hospitality and food service sectorsalso use signicant amounts of water in food preparation andin cleaning preparation areas. Retailers too use water in theirstores, for cleaning and personal use. At an operational level,key risks relate to water use and scarcity.

    Farmers too depend on water resources to grow crops andfeed animals, as well as on the ecosystems’ services, suchas pollination and good quality soil that are supported byhealthy water. In the UK, agriculture accounts for 2-3% of waterwithdrawals from mains supplies. Drinking water for livestockaccounts for 41% of this, followed closely by irrigation (38%).Farmers also use water for machinery washing. 6

    The ‘water footprint’ of the UK’s food and drink sector is highlycomplex. Over 50% of our water consumption is ‘embedded’ in

    imported products (i.e. water that is used overseas to producethe food and drink that we import) with sometimes long andcomplex supply chains. 7

    “Everything we do in food istotally reliant on water. We need

    to treat water based on its truevalue, arguably the most valuablecommodity to the food industry as

    without it everything else simplystops. ”

    Andrew Edlin ,Group Sustainability Director,

    2 Sisters Food Group

    Cleaning lettuce (WRAP) 9

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    Business in the Community

    Food and drink companies have largely focused on reducingwater risks in their direct operations. However, they also need tounderstand the risks to water sources from agricultural activitiesin their supply chains and the opportunities to work with farmersto help protect water in the environment.

    Good farming practices can play a vital role in protectingwater sources, wildlife and farm pro tability. Much progresshas been made, for example, in helping to reduce the risk ofrun-off from inputs, restoring wetland areas and peat bogs, andtackling over-grazing. 70% of farmland is now in some form ofenvironmental stewardship. 8 A number of water-related risks inthe food and drink supply chain are, however, associated withagriculture. There remains much that can be done to mitigatethese impacts and promote more sustainable and resilientfarms.

    Agricultural water use can reduce water availability inrivers, aquifers and lakes. This can result in the degradationof downstream aquatic ecosystems, including detrimentaleffects on sheries. Although the abstraction licensing regimeregulates the water that they can abstract, farmers tend to needwater at times of higher demand and lower availability, and this

    can exacerbate water availability problems.

    Agricultural activities can pollute water sources. Pollutioncan originate from either a point source, such as a slurry store,or diffusely, such as run-off from farmland carrying valuablenutrients, pesticides and soil. Not only are such losses a wastefor the farming business, they can impact on water qualitythrough:

    • The release of nutrients, particularly phosphates and nitratesfrom poor soil management and from fer tiliser application,contributing to eutrophication and the need for costlydrinking water treatment. In the UK, around 60% of nitrates

    and 25% of phosphorus in water bodies are estimated tohave farming origins. 9

    • The release of other chemicals, such as pesticides, into thewater environment which can also be harmful to aquatic lifeand impact on public water supply.

    • Microbial contamination from manure and efuent, impactingon bathing and shellsh waters. Over a quarter of failuresto meet the standards of the Bathing and Shellsh WatersDirectives are due to faecal contamination from livestock. 10

    • Soil being eroded and washed off farmland intowatercourses. This reduces the quality of raw drinkingwater and causes sedimentation of spawning gravels.Sedimentation also increases the risk of ooding throughblocking pipes and culverts and promoting the growth ofaquatic vegetation. 11

    “We hope that food and drink companies willrecognise the risks to water resources from activitiesin their agricultural supply chains and will takeaction to help farmers improve their contribution to

    protecting water in the environment. ”Christine Tuckett , Deputy Director - Agriculture, Groundwaterand Land Management, Environment AgencyRiver pollution from pig

    farming (WaterkeeperAlliance / ickr)10

    Water risks and opportunities in agriculture

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    Ten reasons whybusinesses should takeaction

    The stuff of life(David Salaa / ickr)

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    Business in the Community

    Ten reasons why businessesshould take action

    1Act responsibly

    Businesses very simply have a responsibility for andinterest in managing water sustainably and protecting

    natural resources in the areas they operate in, buy from and sellto. This will help secure resources for their long-term use.

    2 Protect reputationA water-related incident, such as pollution fromefuent discharges or poor agricultural practices,could have signicant reputational impacts both directly and forbrands and retailers further up the supply chain.

    3 Ensure a social licence to operateAt catchment level, companies need ensure that theyare not taking an unfair share of water, or pollutinglocal ecosystems, and potentially creating grievances.

    4Reduce costs and improve economic

    performanceFor food and drink companies, managing water

    sustainably reduces the cost of water consumption anddisposal, and associated heating, cooling and treatment. In2014, signatories of the Federation House Commitment (seepage 23 ) collectively saved £2 million through a range ofwater management initiatives. For farmers, actions to improvewater quality can bring broader economic benets through, forexample, reduced fertiliser costs, ood mitigation, improved airquality and improved animal health.

    5 Develop resilience to water scarcityAn inability to access sufcient good quality water inthe UK arguably poses a strategic risk to the sector.Globally, food and farming businesses are already affected bydisruptions to operations, increased operating costs, decreasesin agricultural productivity and limits on growth driven by watershortages. 12 When buyer contracts are lost through disruption tosupply they can be difcult to regain.

    Apple washing (WRAP)12

    “Transforming business-as-usual operationalapproaches to water management into strategicwater stewardship efforts across the entire valuechain reduces risk, elevates strategic preparedness,improves investor appeal and enhances businesses’resilience. ” Paul Simpson ,Chief Executive Of cer, CDP

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    Smart Water: a prosperous future for the food and drink supply chain 13photo caption

    “The case for action tomanage and protect this

    precious resource is veryclear if we are to build

    resilience to meet futuredemand. Food and Drink

    Federation members haveachieved much in terms

    of reducing water usewithin their manufacturing

    operations and werecognise the need tobuild on this success

    by working with ourcustomers and suppliers

    to deliver sustainable watermanagement across our

    supply chains. ” Ian Wright ,

    Director General, Food and DrinkFederation

    6Develop resilience to ooding

    Flooding is a particular concern for farmers: 58%of the most productive English farmland is situated

    within the oodplain and around 30,000 hectares of high-qualityarable and hor ticultural land oods each year. Following theoods of 2014 affecting 50,000ha of farmland, the NationalFarmers Union estimated that the cost of ooding for farmerscould hit £100 million. Disruption to food production alsoimpacts on businesses further up the supply chain.

    7Respond to investor expectationsInvestors are increasingly concerned about the threatsthat poorly understood and managed water risks

    pose to the future performance of their investments. ThroughCDP, a large and growing number of institutional investorsare holding companies accountable and are asking how theyare addressing their water impacts and associated risks andopportunities. 13

    8Support government policy, comply withlegislation and be prepared for futurechanges

    Key pieces of legislation and policy include the EU WaterFramework Directive (requiring a more holistic approach tothe management of water quality), the 2014 Water Act (whichsets out proposals for changes to charging and abstractionregimes) and the EU Bathing Water Directive (requiring thatlocal authorities display information on the cleanliness of beachwater).

    9Reduce energy use and carbon emissions

    By improving water efciency, businesses can cutenergy use and reduce carbon emissions associated

    with heating or chilling water. Moreover, using less water createsless wastewater, leading to further energy savings.

    10 Ensure long-term resilience throughvaluing water as a natural capitalA business that puts a value on the servicesit draws from water will be able to make more informedinvestment decisions. Nestlé and Unilever use a ‘true cost’ orshadow price for water to analyse the return on investment ofwater-efciency investments. Valuing water resources will alsohelp farmers to become more resilient and avoid environmentaldamage and nes, as well as reducing rehabilitation andconstruction costs.

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    Six steps towardssustainable watermanagement

    Peak District river crossing(Steve p2008 / ickr)

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    Smart Water: a prosperous future for the food and drink supply chain

    By following the steps set out below, businesses can worktowards sustainable water management. The steps complementother guidance, including WWF’s Water Stewardship Steps,the CEO Water Mandate’s Water Stewardship Progression andCDP’s annual water questionnaire. They are interconnected,and include direct actions (which tend to be easiest toimplement) as well as engagement with the supply chain andother organisations (which can be more complex but are oftenmore impactful). The steps may be followed sequentially, in adifferent order or all at the same time.

    This guidance provides a framework: there is no xed formulafor action. Individual and collaborative efforts are needed toaddress challenges and water policies should be tailored to suiteach company and the needs of the catchment.

    1Understand your

    relationship with water

    Develop an understanding of the speci c water challengesfor different products, operations and locations.

    • Use – Where and for what in your value chain do you usewater? How much do you use and when? What is yourprojected use?

    • Source – Where do you source your water? Which otherusers do you share sources with? Where is your wastewatergoing? What are the characteristics of the water catchments(e.g. physical risks, existing initiatives)?

    • Impact – What is the impact of your water use? How cannegative impacts (e.g. on availability, quality) be reduced?How much water do you reuse? Can you have a positiveimpact (e.g. wastewater treatment, staff clean-up activities)?Are you legally compliant?

    • Risks – Which water-related risks (physical, regulatory,reputational, other) is your company exposed to across thevalue chain now and in the future? What are the catchment-level risks in areas where you operate?

    • Opportunities – Can you identify water-related opportunities(e.g. new markets, improved reputation) across the valuechain?

    S T E P

    15Drain outow into a river(Darkday / ickr)

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    Business in the Community

    Reed beds helping tolter water in a sustainable

    drainage system (Nestlé)16

    2Create a plan of action

    Prioritise areas where you can have most impact anddecide on a plan of action re ecting local conditions in thewater catchments you buy from, sell to or operate in.

    • Develop a water policy – The plan of action should beframed in a water policy that is integrated into your businessstrategy.

    • Include targets and monitoring – The plan should includeambitious and time-bound targets for water efciencyand pollution reduction as well as clear mechanisms formonitoring progress and publicly disclosing information.

    • Include direct operations and consider risks in theagricultural supply chain and water catchments.

    • Look ahead – Plans need to be forward looking, taking intoaccount how economic growth and environmental changewill impact on production and water use.

    3Manage water sustainably

    in your operations

    It is important to ensure that you are managing watersustainably in your operations to improve your directimpacts and the integrity of your ‘ask’ to suppliers.

    • Identify where water ef ciencies can be made in youroperations – Look for opportunities to reduce wastage,address leakages and install low- or no-cost water efciencydevices.

    • Identify reporting schemes – Enquire whether your tradeassociation runs a water use reporting scheme, such asthose operated by the Food and Drink Federation and DairyUK, and consider joining.

    • Invest in new production processes/technologies –Look at how your production processes can be adapted touse less water.

    • Identify opportunities to reuse waste and surface water.

    • Identify alternative water sources – Look at introducinge.g. rainwater harvesting.

    • Manage surface water issues – Minimize the risk ofpollution incidents, ensure water discharged into local riversis adequately treated and look at introducing sustainabledrainage systems.

    • Engage your employees – Raise awareness, ensureemployees have the skills and knowledge they need andprovide incentives for staff to get involved in sustainablewater management.

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    Smart Water: a prosperous future for the food and drink supply chain

    4Work with your

    agricultural suppliers

    It is important to demonstrate leadership and work withagricultural suppliers to reduce water-related risks in yoursupply chain.

    • Identify key agricultural suppliers – Ask them what theyare doing about sustainable water management.

    • Provide advice and information to raise awareness ofthe risks and opportunities – e.g. associated with sensitivecatchments and with specic products. Help suppliers to beaware of the support available e.g. from Catchment SensitiveFarming (CSF), Rivers Trusts and water companies.

    • Share your water sustainability practices, tools andlessons learnt – Where appropriate involve suppliers indeveloping your water policy and new tools.

    • Encourage suppliers to develop sustainable watermanagement strategies – To track changes in water useand quality over time and to report regularly on progress.

    • Provide incentives for action – Such as procurementstandards, supplier scorecards, premium prices and longer-

    term contracts.

    • Encourage suppliers to sign up to farm assuranceschemes – Such as the Leaf Marque, Red Tractor orConservation Grade.

    • Train procurement teams – Ensure they can engage withsuppliers on sustainable water management and understandbest practice and relevant legislation.

    • Support suppliers to implement capital-intensivemitigation measures (such as on-farm slurry storage) –This might include longer-term contracts, facilitating lowcost loans and signposting to funding sources such asCountryside Stewardship Grants.

    • Create peer-to-peer knowledge sharing networks –Use existing supplier forums, e.g. ASDA’s Sustain & SaveExchange and Tesco’s Supplier Network, and signpost tonetworks such as The Water Network and The Water ActionHub.

    • Collaborate with other businesses – Work with thosein your supply chain, or sourcing from the same area, toachieve inuence and share lessons.

    • Partner with initiatives supporting farmers – Such as CSF,the Campaign for the Farmed Environment and catchmentpartnerships.

    Effective engagement should be founded on long-termrelationships to foster trust, allow for capital investment andenable long-term measures to be delivered. It can also behelpful to employ a trusted intermediary to act in an advisoryrole.

    S T E P

    17(Loren Kerns / ickr)

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    Business in the CommunityFlooding, Arundel, Sussex,2014 (Rob Watkins / ickr)18

    5Build resilience to ooding and water

    shortages

    Prepare for the increase in extreme weather events.

    • Be prepared for periods of too much water – Plan for andreduce ood risk.

    • Be prepared for periods of water scarcity – Understandand mitigate against possible impacts on production andwater quality. Identify the potential to increase water storagecapacity and alternative water sources, whilst ensuring thatactions do not impact negatively on other users and theenvironment. Link up with other abstractors in the area.

    • Identify less water stressed areas – Investigate alternativesources of ingredient supply from less water stressed areas.

    • Working at catchment level – Consider what interventionscan be made at catchment level and talk to regulators, riverbasin management authorities and water utilities.

    6Collaborate on sustainable water

    management

    Collaboration is critical given the scale of the challengesand the nature of shared water risks.

    • Advance sustainable water management at catchmentlevel – Collaborate to ensure that water scarcity andpoor water quality do not impact negatively on the localenvironment, community and economy. Ensure your plansand policies are in line with the River Basin ManagementPlans in place to achieve the goals of the Water FrameworkDirective. Look for opportunities to engage with and usethe expertise of catchment partnerships and other localinitiatives.

    • Support government schemes aimed at encouragingbetter water management practices – Including theCatchment Based Approach, CSF and CountrysideStewardship. Encourage knowledge exchanges andconsider private sector match funding.

    • Share knowledge and good practice – Innovate, try newapproaches and partnerships, and share learning. Ask watercompanies and government to support you by providingaccessible information on key water issues.

    • In uence governance – Look for opportunities to engagein long-term planning for sustainable water management.Work with government and other stakeholders to ensure thatsustainable water management is supported by regulatoryand policy frameworks and voluntary initiatives at catchment,national and international level.

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    Hosing down (WRAP)20 Business in the Community

    1 Understanding yourrelationship with water Understanding the nature of your water use and risks to waterquality, and where effort needs to be focused, is the rst step inbeing able to manage water more sustainably. Food and drinkcompanies need to understand the water risks associated withtheir direct operations, their agricultural supply chains and thecatchments within which they operate and source from.

    Several water footprinting tools and frameworks are available,including those run by the Water Footprint Network and CarbonTrust, to help companies understand the water input to theirproducts as well as associated risks and where in the supplychain these occur. These tend, however, to focus more on wateruse rather than water quality.

    Measuring and mapping water risk is a critical way in whichcompanies can assess water-related risks for their ownoperations, suppliers or growth plans. Useful tools includeWWF-DEG’s Water Risk Filter, the World Business Councilfor Sustainable Development’s (WBCSD) Global Water Tooland the WRI Aqueduct Tool. The results provide companieswith guidance on where to focus, including actions that canbe initiated with suppliers or other companies. Risk mappingcan also inform strategic long-term choices on a company’ssupply chain. It is important to know about sensitive uses in thecatchments where you operate, such as drinking and bathingwaters. The Environment Agency’s What’s In Your Backyard tool

    helps with this.

    • Kellogg’s used the WBCSD Global Water Tool to assesscurrent and future water-related risks at its global facilitylocations and evaluated key ingredient supplies, overlayingits supply source locations against global water stress mapsand renewable water supply projections. Physical risksrelating to declining water quality, ooding and increasedwater scarcity were identied as well as regulatory risksrelating to mandatory water efciency and conservationmeasures. The ndings have helped Kellogg’s to prioritiserisks, monitor trends and evaluate regional conditions, and toimprove water efciency and put in place contingency plansin its operations and supply chain. 14

    • Marks & Spencer is working in partnership with

    WWF-UK to assess and mitigate the water risk across itsfood business. In earlier phases of their partnership WWFand M&S have worked on water issues on the ground inKenya and South Africa. During the current phase of thepartnership, the physical, reputational and regulatory waterrisks across M&S’s food supply chains have been assessed,down to farm level, using the WWF Water Risk Filter. Keylocations of water risk have been identied and prioritisedconsidering the volume sourced by M&S and the respectivevalue to the business. The next stage of the work is todevelop mitigation strategies for the hotspots, focused onsupporting collective action to develop integrated solutions.The long term aim will be to inuence the governance to helpsecure sustainable water management in these basins toaddress risk over the long term.

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    Smart Water: a prosperous future for the food and drink supply chain

    The ve-year Water Resource Management Plans produced bywater companies also provide a useful resource, showing theprojected needs of public water demand in specic areas.

    Some businesses undertake their own water assessments, oftenas part of broader sustainability initiatives.

    • Waitrose introduced the ‘Waitrose Farm Assessment’ in2011 to survey its fresh produce farms to understand howcontinuous improvement towards sustainability is beingimplemented and the challenges faced. Waitrose usestrained assessors to engage with each farmer bi-annually. 15

    • As part of its 20 x 20 Sustainability Plan, Sainsbury’s isworking with farmers and growers for its own brand productsto collect data on how they source their water and how muchthey use. Sainsbury’s has made a commitment to map waterusage for its top 30 commodities and introduce supply riskmanagement where necessary, and is developing plans tomonitor water use in the most sensitive sourcing zones incollaboration with other stakeholders. 16

    27%of companies

    reported UK water risks that couldlead to a substantive change in

    business, operations, revenue orexpenditure through CDP’s 2015

    water information request. 18

    Dry Martini (Adnams) 21

    Adnams undertakes a full lifecycle analysis of water

    Adnams is based in Southwold and faces risks associated withwater scarcity and quality. Climate change is threatening theavailability of water in the region: rainfall patterns are changing andsaline intrusion is making local boreholes unusable. The companyis particularly mindful of its reliance on water, using over 75 millionlitres per year in manufacturing beer and spirits.

    Adnams strives to reduce or reuse as much of the water it uses aspossible and has one of the lowest production ratios in the UK. Thenext step is a full lifecycle analysis of water, much the same as itdid with carbon, leading to a reduction of around 1,000 tonnes ofCO2 every year. Adnams sees water is slightly different: it’s aboutstewardship as much as usage. Adnams anticipates that it will see

    some best practice in the agricultural stages of the lifecycle, butthat there might also be the greatest opportunities for reduction ormanagement here too. Being able to capitalise on these will helpits suppliers while exercising Adnams’ responsibility to the region.In turn, this will improve the resilience of its business as weatherpatterns continue to change. 17

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    Reed bed, Hampshire(Anguskirk / ickr)22 Business in the Community

    2 Creating aplan of actionCreating a plan of action is the next step. Most company waterpolicies focus on operational water efciency and should bebroadened to address water quality and quantity in operations,agricultural supply chains and catchments.

    Companies do not need to work it all out themselves. There arenumerous sources of support and advice available, including:the Water Footprint Network, WWF’s water stewardship work,the Carbon Trust, Waterwise, WRAP’s Rippleffect (for SMEs),the Environment Agency, water companies and privateconsultancies. CDP’s annual water information request providesa useful framework for companies to address their water-related impacts and associated risks and oppor tunities, whilstcommunicating clearly and meaningfully with a large andgrowing number of critical stakeholders.

    Companies can also show commitment and achieverecognition through seeking certication (e.g. Alliance for WaterStewardship (AWS) Standard, European Water Stewardship(EWS) Standard, ISO14046 and Carbon Trust Standard forWater), achieving an A-rating in CDP’s water questionnaire, orentering awards (e.g. the UK Water Efciency Awards or BITC’sResponsible Business Awards). The AWS and EWS are thetwo leading certication schemes: both promote a catchmentapproach and offer a progressive level of certication,providing a useful structure and framework for achieving good

    water stewardship.

    Several companies in the food and drink sector, includingGeneral Mills and Nestlé , are committed to the AWS Standardand others been awarded the Carbon Trust Standard for Water(focused on water efciency rather than broader stewardship)including Sainsbury’s , Coca-Cola Enterprises andWhitbread .

    Diageo’s Water Blueprint

    Launched in 2015, Diageo’s Water Blueprint focuses on fourcore areas – the sourcing of raw materials, its operations, thecommunities in which it operates, and local and global advocacy forbest practice in water stewardship. Targets include:

    • Reducing water use by 50% through efciency measures;

    • Returning 100% of wastewater to the environment safely;

    • Replenishing water stressed areas with the equivalent amountof water used in production, through reforestation, farming andother projects; and

    • Equipping suppliers with tools to protect water resources in waterstressed areas. 19

    InterContinental Hotels Group (IHG®) is working with the WaterFootprint Network to develop a global water stewardship programmefor IHG. This includes understanding, managing and reducing IHG’slocal-level water usage. IHG helps its hotels to manage water usethrough an online tool, IHG Green Engage™ system. 20

    At its beef processing facility in Ireland, ABP Food Group undertook a gap assessment against the EWS Standard. Thishas helped the site to introduce a holistic approach to watermanagement and to prioritise investments. An in-depth sub meteringsystem has been introduced at the site and water-related targetsidentied. 21

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    Potatoes(Olivier Bacquet / ickr) 23Smart Water: a prosperous future for the food and drink supply chain

    3 Managing water sustainablyin your operationsIdentifying water ef ciencies

    Water efciency can be an important rst step in managingdirect water use. To deliver environmental benets companiesshould aim for reductions in absolute consumption, par ticularlyin the water-stressed catchments of the South and East.

    Work undertaken by WRAP identied the main ways ofreducing water use in food manufacture processes in theUK as the reuse of cooling water, xing water ow and leaks,automatic shut-off, control of overows and optimising supplypressure. 22 For food and factory cleaning, optimising cleaningroutines and controlling efuent concentration to minimisewastewater production can reduce water use without signicant

    investment.23

    For wholesalers and retailers simple actions such as installingmetering and low- or no-cost water efciency devices likeefcient taps, urinal controls, waterless urinals and ‘point of use’water machines can contribute to signicant savings.

    The Federation House Commitment , managed by WRAP inpartnership with the Food and Drink Federation ran from 2008 to2014 and has been the biggest collaborative effort in the UK toreduce water use in the food and drink sector. This set out a processfor companies to improve water efciency within their operations.70 companies signed up, between them representing a quarter ofwater use for the sector.

    From 2007 to 2014, signatories collectively made a 15% reduction inwater use and a 22.9% reduction in water intensity, representing anannual saving of around £0.4 million. From 2015, water use data arecollected via FDF, Dairy UK and other trade associations. 24

    2 Sisters develops water control systems for potato processing

    2 Sisters Food Group faced a challenge in potato processing at itsCarlisle factory, with water for cooling products being supplied ingreater quantities than needed and creating excess efuent, whichwas costly to treat.

    To establish the optimum ow required, sub-metering was installedon equipment and water use monitored. The 2 Sisters team thendeveloped a control system to deliver the exact quantity of waterneeded. The system was so successful that four more wereintroduced to cover similar equipment on site. These ve systemsreduced water use and efuent production by 25.6% per tonne ofnished product. The system is now installed as standard on anynew equipment requiring a specied volume of water.

    Internal staff played an important role in assessment and design.Key to success was the engagement and involvement of people whomaintain and operate the site. 25

    MyFresh improves water ef ciency by 20%

    MyFresh Prepared, a William Jackson Food Group company,supplies prepared vegetable ingredients. Water is used in factoryoperations for cleaning crops before processes, and for transportingand cooling.

    A two-year campaign saw MyFresh cut water consumption by 20%through reducing incoming water pressure, simplifying efuentstreams and installing more efcient pumps. Upgrading thetreatment process also enabled a signicant reduction in efuentwater storage. A water awareness initiative was launched to improveunderstanding amongst colleagues. 26

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    24 Business in the Community

    Reusing wastewater through new production

    processesMany food and drink manufacturers have invested in newproduction technology to improve water efciency and efuentquality. Where hygiene requirements allow it, technologies forwater reuse and recycling are being introduced in an effortto produce more with less. On-site treatment of wastewaterefuent is in par t being driven by higher prices levied by waterutility companies and tougher discharge consents to surfacewater by the Environment Agency.

    Several food and drink manufacturers, including Kellogg’s ,Müller Wiseman Dairies and Kraft Foods , have introduced

    reverse osmosis in manufacturing plants to treat water destinedfor sewer and reuse it in ‘grey water’ applications withinfactories, such as in wet scrubbers and cooling operations.Reverse osmosis can result in signicant savings in water use,as well as efuent disposal and water treatment chemical costs.

    Some manufacturers are also making use of wastewater as partof feedstock for on-site anaerobic digestion power plants.

    • Arla Foods processes 500m 3 water per day at its Aylesburysite, providing treated water of better than potable qualityand producing biogas which is used to fuel the on-sitepower plant. 27

    • McCain Foods has invested over £16 million in renewableenergy at its Whittlesey site, near Peterborough. Ananaerobic lagoon digests starchy wastewater from itsprocess to generate biogas, which alongside its three120m wind turbines, generate on average 70% of the site’selectrical needs. The installation of a reverse osmosis plantat Whittlesey also allows higher levels of water recycling,which has seen water usage reduce by 25%. 28

    Using alternative water sources

    Companies are looking for opportunities to use alternativesources of water to mains water. Where there is a high levelof embedded water in food inputs, such as potatoes andsugar beet, many companies extract this water to use in theproduction process.

    • PepsiCo has introduced thermodynamic technology (stackheat) to extract water from potatoes, which are fried forcrisps, and reuse it throughout its plants. It aims to take UKfactories off the water grid by 2018 and to reduce the waterimpact of crops grown in water-stressed areas by 50%. 29

    • British Sugar purchases around 7.5 million tonnes of UKsugar beet annually – a large proportion of this (over 5.5million tonnes) is actually embedded water. The companyextracts this water and where possible uses it in its factoriesfor process duties such as cleaning, heating, cooling andtransportation. In total, around 80% of the water coming intosites is from beet. 30

    • Greenvale has a water recycling and treatment system for itspotato packing and processing operations called Cascade.In addition to treating used water for reuse, the processrecovers the sand and soil from the water so that this too can

    be reused and sold on, eliminating sludge disposal costs.The system has reduced the cost of energy to chill the waterby 50%. Using recycled clean, chilled water also reducesthe risk of bacterial cross-contamination and improvesproduct quality, increasing its shelf life and improving theappearance of the potatoes. 31

    Sustainable drainagesystem at Tutbury coffee

    manufacturing plant (Nestlé)24

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    Smart Water: a prosperous future for the food and drink supply chain

    Several retailers, including Sainsbury’s and Marks & Spencer ,have introduced rainwater harvesting systems at their storesto provide an alternative and free source of water for toiletfacilities, car washing or irrigation for green walls.

    Managing surface water Some companies are introducing sustainable drainage systemsas a more environmentally friendly way to treat wastewater thantraditional chemical treatment plants.

    • Natures Way Foods , a leader in fresh salad and fruitproduce, has created reed beds at sites in West Sussexto provide a wetland ecosystem that cleanses wastewaterusing natural microbes, the soil, sand or gravel at the base,

    and the reeds themselves. At one of these sites, the reedbed treats the wastewater, which is stored in a reservoir andused by a third party to irrigate lettuce crops that come backto the company. At another site, treated water is used tocreate wildlife ponds planted with lilies, rushes and naturalseeds. 32

    • Westons , a rural family-owned cider-making company, treatsall liquid waste on site through a number of steps includingdissolved air otation, activated sludge, and membranebiological reactor (MBR). The water then passes througha reed bed before entering Weston’s wetland/reservoir andbeing used to irrigate the orchards or discharged directly tothe brook. 33

    Engaging employees

    Engaging employees is a fundamental part of sustainable watermanagement – from raising awareness about conserving waterand preventing pollution, training on water saving devices,responsibility for monitoring activities, to employee involvementin clean-up activities. Employees should be encouraged tocome up with ideas and equipped with the skills they need, andmanagement should be incentivised to take action. MolsonCoors , for example, holds an annual Water Stewardship Monthin which employees get involved in water clean-up projects and‘Lunch and Learn’ sessions.

    Heron (Teresa Shen / ickr) 25

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    Ladybird on barley(Jamie Henderson / ickr) Business in the Community26

    4 Working withagricultural suppliersSome food and drink businesses are working with farmers andother suppliers on water-related issues on their land and in theircatchment - either as part of broader sustainability initiatives orin response to specic water challenges. But much more needsto be done.

    Good farm management in practiceThere are many excellent examples of good farm managementpractice to build on, with farmers acting independently and incollaboration with food and drink businesses, water companiesand other organisations.

    Overbury Farms creates a silt trap and reed bed to improvewater quality

    Overbury Farms in Gloucestershire supplies Molson Coors withmalting barley. It is an accredited LEAF Marque farm and hasimplemented the six steps described in ‘Simply Sustainable Water’.It is protecting nearby water sources through a range of measuresincluding:

    • Establishing grass and pollen/nectar rich buffer strips tohelp intercept pesticides and fertilisers before they meetwatercourses and to create ecologically rich habitats.

    • Planting catch cover crops to intercept rainfall, locking upnutrients within the soil structure of the eld so that they cannotbe washed away, and reducing soil erosion, potential silting, and

    nutrient and pesticide pollution of the nearby water course.• Creating a silt trap and reed bed in a ditch line to slow down the

    water ow so that particles potentially carrying pesticides andfertilisers drop out and lie as silt that can later be dug out andreturned to the elds. 36

    Billockby Farms installs rainwater harvesting

    Billockby Farms in Norfolk supplies milk to ASDA. With each cowdrinking between 90 and 190 litres of water per day (depending ontheir stage of lactation), water use is a key business cost. Water isalso used in the parlour for washing down and cleaning out.

    To improve water efciency and reduce costs, the far m installedrainwater harvesting facilities as part of the expansion of its dairy.An estimated 1,188 m 3 of rainwater will be collected annually forparlour and yard washing. To help cover the costs of nearly £20,000,the farm secured a 50% grant from the Norfolk Coast and BroadsLocal Action Group. 34

    Jepco installs EnviroSCAN probes to improve irrigation

    In East Anglia, lettuce producer Jepco has installed EnviroSCANprobes that detect electrical conductivity resistance to measuresoil moisture during the entire growing period. The data can bemonitored via computer or smar tphone, and is then fed through intothe mobile boom used for ir rigation. 35

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    Sources of support and guidance

    Businesses can work with, and signpost to, the differentorganisations and initiatives already providing tools, training,guidance and grants such as the Catchment Based Approachand Catchment Sensitive Farming (both described in detailin Step 6), the Campaign for the Farmed Environment, RiversTrusts, LEAF (Linking Environment and Farming), Tried andTested, the Environment Agency, and catchment managementschemes run by water companies, as well as independentadvisors.

    A number of food and drink companies have partnered withorganisations to produce guidance for suppliers on sustainablewater management. Molson Coors and ASDA worked withLEAF to develop the ‘Simply Sustainable Water’ bookletproviding actions to enhance water management. 37 The Foodand Drink Federation’s water working group includingcompanies like Nestlé, Coca-Cola Enterprises and Kellogg’s,came together to produce ‘Every Last Drop’, a guide to savingwater along the food supply chain. 38 Marks & Spencer workedwith WWF to produce ‘Good Water Stewardship’ guidance forits global network of agricultural producers.

    Management tools such as the LEAF Audit, Integrated PestManagement Plans and Nutrient Management Plans will alsosupport farmers in improving water quality and protecting theirwater sources.

    Potatoes(Andrew / ickr) 27Smart Water: a prosperous future for the food and drink supply chain

    Water management: key actions for farmers

    The Environment Agency’s ‘Water management: key actions forfarmers’ sets out the actions that farmers can take, and the potentialeconomic and environmental benets. It includes messages on:

    1. Managing nutrients well – e.g. fertilizing at the best time for thecrop, checking growing conditions, avoiding spreading slur ry atcertain times, and creating buffer strips alongside water courses.

    2. Managing soil sustainably – e.g. carrying out soil tests,choosing crop rotations to manage risks to soil structure, plantingcover crops and constructing sustainable drainage systems.

    3. Managing your water use effectively and planning yourlonger-term water management – e.g. checking for leaks,recording water use and using more effective irrigation

    techniques; planting drought tolerate crops, harvesting rainwateror developing a high ow storage reser voir.

    4. Managing your land to reduce ood risk – e.g. nding outif your land is at risk of ooding, slowing down water ow,monitoring and maintaining eld drains and ditches.

    5. Managing livestock so they do not freely access watercourses – e.g. providing an alternative water supply, establishinghedges or woodland alongside water courses, and fencing alongthe margins of elds adjacent to water courses in catchmentswhere there are sensitive bathing and shellsh waters.

    6. Using pesticides ef ciently and disposing of them carefully – e.g. completing a Crop Protection Management Plan, ensuringstores and handling areas are proofed against any potential loss,and ensuring sprayers are routinely maintained.

    The Environment Agency has also developed a useful resource‘What’s in Your Back Yard ’ that gives farmers an idea of theenvironmental state of water bodies, the proximity of protectedareas (such as those protecting drinking waters) around their land,and whether agriculture is believed to be contributing to waterquality issues. 39

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    Scum on a Dorset beach(Matt Brown / ickr) Business in the Community28

    Food and drink companies could look for opportunities topartner with water companies in the work they are doing withfarmers to reduce the impact of pesticides and fertiliserson water quality. Anglian Water and Yorkshire Water , forexample, are working with farmers to reduce the levels of theslug control pesticide Metaldehyde in waters. Anglian Water isproviding advice as well as substitute products and is runninga ‘pesticide amnesty’ in target areas where it will collect andsafely dispose of pesticides. Thames Water is working withfarmers to reduce the levels of nutrients running off theirland and entering rivers through measures such as fertiliserspreading improvements and constructing buffer strips.

    Campaign for the Farmed Environment (CFE)

    CFE was launched in 2009, as the industry-led voluntary approachto encourage farmers and land managers to protect and enhancethe environmental value of farmland, through measures that sitalongside productive agriculture.

    CFE is a partner ship approach, supported by many organisationscommitted to agriculture and the environment. It promotesbest practice and tools, locally targeted uptake of incentivisedmanagement, and CFE Voluntary Measures aimed at protectingwater resources and meeting WFD objectives including buffer strips,winter cover crops and overwintered stubbles.

    CFE has, for example, helped an arable farmer in the East of

    England to introduce six-metre buffer strips for two miles alongside ariver to protect against nutrient and pesticide loss.

    It is also involved in the Frome and Piddle Catchment in Dor set tond practical ways of reducing agricultural nitrate impacting onPoole Harbour. CFE is helping farmers take ownership by ensuringthat they are central to the process of delivery. It is working with theWessex Water Catchment Init iative, CSF, CaBA, the EnvironmentAgency and Natural England to ensure that farmers in the area haveaccess to tailored advice so that catchment solutions are farmer-friendly. 40

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    Business initiatives and programmes

    Some industry level sustainability initiatives also address waterrisks. The Dairy Roadmap, for example, unites Britain’s dairyindustry including farmers, dairy manufacturers, retailers,government and industry partners. Together, the supply chaindenes targets and produces regular reports on progressthat the industry is making on environmental matters. Watertargets include reductions in water brought on to site by dairymanufacturers, and for farmers active nutrient management,uptake of water efciency measures, and declining trends inserious pollution incidents on-farm.

    Several businesses have developed their own programmes andemploy independent advisors to work with their farmers.

    • McCain has strong relationships with over 300 potatogrowers in the UK and provides advice through the McCainGood Agricultural Practices (GAP) programme and itsdedicated agronomists.

    • In 2012, McDonald’s launched a long-term programmecalled Farm Forward to support the farming industry acrossthe UK and Ireland. This includes promoting environmentalimprovements and knowledge sharing between farmers.

    • AB Sustain has developed think.water to help farmers

    measure their water use, identify potential areas forimprovement and benchmark their position relative to otherfarmers. 43

    • Dairy Crest has introduced Waterwell to provide adviceon on-farm water efciency. It is working with White GoldAdvisors who have established relationships with farmers.

    Business in the Community

    Jordans Cereals encourages good supplier practices

    Jordans Cereals developed the Conservation Grade (CG) in 2000to encourage their suppliers to deliver the highest levels of on-farmwildlife with a premium paid of around 10% in retur n for meetingthe CG Protocol. A number of other brands, including Allinson andBurgan breads, have since signed up. A key business benet is thepositive market differentiation, with a brand that is recognisable tothe consumer.

    To meet the requirements of CG, the farmer must satisfy criteriaincluding committing at least 10% of the farm to wildlife habitats,completing a farm environment plan, participating in training andpassing an annual audit. Water is a key priority and specic actionsinclude introducing buffer strips, meeting standards for water qualityrelating to pesticides and application of manure and fertiliser, andhaving strategies in place to optimise water usage on the farm andto minimise water waste. 44

    (Anders Adermark / ickr)30

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    Seeing is Believing: BITC members nding out about Dairy Crest’scollaboration with Priory Farm, Gloucestershire (Alastair Fyfe / BITC) 31Smart Water: a prosperous future for the food and drink supply chain

    “Strong and trusted supply chain relationshipsgive farmers longer-term security and stimulateinvestment in supply chain improvements. Thereare some very good examples of retailers and

    processors working closely with farmers and growerson water, and other environmental concerns, ina suppor tive and collaborative way. For Britishagriculture to face the challenges of the future, weneed to do more to strengthen these relationships

    and build condence in the supply chain. ”Diane Mitchell ,Chief Environmental Advisor, National Farmers Union

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    32 photo caption

    5 Building resilience to ooding and watershortagesWhile extreme weather patterns have consequences forbusinesses across the supply chain, the most signicant impactis on farmers. Severe weather can affect soil, choice of crop,growing conditions and yield, amount and quality, harvestingand planting conditions, storage and transport logistics. Itcan also have a knock on effect on water quality through, forexample, the leaching of nutrients, as well as a loss of soil andorganic matter. In periods of lower rainfall, water abstractionrestrictions may be imposed on farms and food manufacturers.

    Reduced crop production hits the revenues of farmers, andalso pushes up input prices for other s. In 2013, for example, theNational Farmer’s Union’s livestock board reported that manyfarmers were struggling to deal with a spike in feed prices

    resulting from bad weather. Weetabix was forced to reduceproduction of Oatibix Bites and Weetabix Minis due to a lack ofavailable grain after the poor harvest. 45

    Food and drink companies need to ensure they have riskmanagement plans in place for their operations and supplychains to increase resilience to extreme weather, includingcontingency plans for any unplanned and/or natural events. Aspart of this, they need to support farmers in developing parallelplans.

    Preparing for periods of too much water

    At an organisational level, businesses need to build resilienceto ood events and ensure that they are prepared to respondquickly. This might involve simple measures such as protectingpremises from the risk of ooding and moving essential kitsuch as emergency generators and business records aboveood lines. Businesses should consider what contribution theycan make to managing the ow of water – for example layingsustainable drainage systems, such as permeable surfacesin car parks, to attenuate and treat site runoff at times ofexcessive rainfall.

    • Nestlé uses a sustainable drainage system at its coffeemanufacturing facility in Tutbury to manage the quantity and

    quality of water owing back into the local water system. In2012, Nestlé donated £1.65 million to help the EnvironmentAgency and local partner s develop a ood defence systemfor the lower reaches of the River Dove in this area. Thescheme has reduced ood risk for over 1,600 properties andhas improved the potential for wildlife.

    Farmers should be suppor ted to take proactive riskmanagement measures to reduce the impacts on productionand recovery time. Simple measures can help, such asplanting trees and hedgerows to provide shelter and reducesurface water run of f, creating ood storage areas on less

    productive parts of parts of the farm, and contour ploughing.The longer-term consequences of more extreme weather mustalso be considered. The need to cope with wetter harvestsmeans farmers may have to consider potential damage tosoils, investing in infrastructure assets, such as grain dryingequipment, or switching to alternative crops.

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    Flooding, York, 2015(Alan Harris / ickr)32 Business in the Community

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    Cracked Earth, Cambridge(James Bowe / ickr) 33Smart Water: a prosperous future for the food and drink supply chain

    Preparing for periods of water scarcity

    Water scarcity is already a reality in some parts of the UKand has been exacerbated in periods of low rainfall. In 2011,following a summer drought, around 200 farmers across centraland eastern England could not abstract water because ofconditions on their licences, impacting crop production. 46 In2012, water abstraction restrictions were imposed on manyfarmers and hosepipe bans were introduced for the public inmany areas. Before the drought broke in the spring, restrictionsfor commercial customers of water companies (such as foodand drink manufacturers) were also a real possibility. 47

    The food and drink sector needs to ensure that it is resilient tothe risk of such periods of water scarcity. In addition to generalwater efciencies, businesses are building resilience to watershortages through identifying alternative water sources anddeveloping increased capacity for water storage. ElvedenEstate , a large mixed farm in Thetford, abstracts water underlicense from the aquifer and stores it in two reservoirs on theestate to manage its availability.

    New partnerships at a catchment level are also being exploredto achieve long-term resilience to water scarcity throughtaking a more integrated planning and nancing approachtowards water investment and management. For example, incollaboration with the Cambridge Institute for SustainabilityLeadership and other organisations including Nestlé and ASDA,Anglian Water developed a report Sink or Swim looking atstrategies to develop models for more integrated water resourcesystems that have multi-sector involvement and nancingto deliver wider multi-sector benets. This has led to WaterResource East Anglia , a partnership to develop a robust long-term water resources strategy for the whole Anglian region,which will increase the resilience of their systems.

    Farmers coming together to form water abstractor groups(WAGs) can help. It is increasingly impor tant for the farmingcommunity to be actively involved in discussions about localwater management and to play a key role in nding andimplementing solutions.

    From a sustainable sourcing perspective, having alternativesources of supply of ingredients from less water stressedregions might be a useful preparatory measure.

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    34 photo caption

    6 Collaborating on sustainable watermanagementCollaborating at catchment level

    All businesses operating in a catchment can potentially impacton the quality of water and on other water users. No matter howsustainably one business manages its water use and minimisesits impact in a water catchment area, it is dependant on theother users in the catchment doing the same. Businessestherefore need to understand the catchment-level risks andopportunities associated with water at their operating sitesand in their supply chain. This includes protecting the qualityof water in the river catchments, the needs of other users,and the ways in which their water use impacts on the broaderenvironment and economy.

    Companies then need to work with local basin stakeholderssuch as river basin management authorities, water suppliers,farmers, NGOs and other stakeholders to address shared waterchallenges, particularly in hot spots of water risk or where thecompany’s input is likely to have the most impact. To increasethe effectiveness of their actions, companies may work withother key buyers of the same products, and/or with a nationalNGO if they source from a number of catchments.

    The UK Government launched the Catchment BasedApproach (CaBA) in 2013 to decentralise management ofthe water environment, enable more people to get involved inmaking environmental improvements to rivers and estuaries,

    and encourage collaborative action at a catchment-level,particularly in tackling diffuse pollution to help meet therequirements of the WFD.

    Throughout England, CaBA Partnerships have come togetherto agree collectively on the priorities for the local waterenvironment. Many are developing catchment action planswhich will guide the work of the partnerships and help to informthe larger-scale strategic river basin management plans that theEnvironment Agency is implementing for each of the 11 RiverBasins Districts in England & Wales under the WFD. (Theseriver basin management plans will facilitate UK reporting on itsprogress in delivering WFD improvements and provide a betterunderstanding of the condition of England’s rivers.)

    There are active CaBA groups in all of the 100+ catchments inEngland and they include over 1,500 different organisations.CaBA Partnerships are generally hosted by environmental

    organisations, particularly the Rivers Trusts and the WildlifeTrusts and include water companies, Campaign for the FarmedEnvironment, local farming groups and other landowners, localauthorities, recreational groups and academics. Most of therural CaBA partnerships engage with local farmers and providesupport and guidance.

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    Business in the Community34River restoration, Norfolk

    (Anglian Water)

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    photo caption

    The CaBA provides a strong foundation for collective action anda platform by which corporate business can engage. Examplesof CaBA partnerships include:• The Cam and Ely Ouse (CamEO) Catchment Partnership

    between Anglian Water and The Rivers Trust has broughtstakeholders together from local businesses, environmentalprofessionals and communities to create a strategy ofsustainable catchment management for the Cam & Ely Ouserivers. CamEO is supported by the WWF-UK and Coca-ColaFreshwater par tnership. Various food and drink businessesare members of the partnership including Produce WorldGroup, Hutchinsons (agronomy services), Elveden Farmsand ABSugar. 48

    • West Cumbria Rivers Trust is delivering a pilot scheme inthe Ellen Catchment for United Utilities’ Catchment WiseProgramme in partnership with the Environment Agencyand Natural England. The project brings together farmers,landowners, local communities and others to reducephosphorus and bacteriological inputs to streams to improvebathing water quality in Allonby Bay. It is providing adviceand looking at a range of activities including grazingregimes, livestock housing, and fencing and planting. 49

    When working with farmers at catchment level, a keyorganisation that food and drink businesses should support and

    signpost towards in England is Catchment Sensitive Farming(CSF).

    For example, CSF has joined with Essex & Suffolk Water andthe Environment Agency to form the Chelmer and BlackwaterCatchment Partnership in a 1,000km 2 river catchment.The Partnership is working with farmers to reduce diffusepollution through providing advice on the storage, handlingand application of pesticides, fertilisers and manure; soil

    management; watercourse protection and environmentalstewardship. The collaboration enables a pooling of resources,avoids a duplication of activities and provides a coherentmessage to farmers. 51

    These types of par tnerships and collaborations are the mainmechanism for bringing together national tools to tackle

    local and catchment problems. Companies have much tocontribute through know-how, capacity, nancial and businessadministration, and networking and should support localpartnerships in areas where they have a high density of farmersor processors.

    Lee Estuary(Lars Ploughmann / ickr)Smart Water: a prosperous future for the food and drink supply chain 35

    Catchment Sensitive Farming (CSF)

    CSF is an initiative run by Natural England in partnership with theEnvironment Agency and Defra, offering free advice and training tofarmers and land managers on how to improve farm practice andreduce the impact of diffuse water pollution on our rivers and lakes.It works in targeted areas within 87 catchments to help meet therequirements of the WFD and improve freshwater Sites of SpecialScientic Interest (SSSIs), where pollution from farming practicesimpacts signicantly on water quality and aquatic habitats.

    CSF ofcers and their partners work with farmers throughworkshops, seminars, farm demonstrations, self-help groups andfarm visits. They can also help with Countryside Stewardshipapplications. This includes Water Capital Grants worth up to £10,000per holding, available as part of the government’s wider CountrysideStewardship Scheme for infrastructure works to reduce waterpollution from agriculture. CSF has engaged over 9,000 farmers whofarm over 1.3 million hectares. 50

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    (Ben Watkin / ickr)36

    Some companies in the UK have taken the initiative to developtheir own catchment approaches or join existing ones. Theseexamples demonstrate the effectiveness of collective action inachieving sustainable water management objectives.

    First Milk works with farmers to offset nutrient loadings in the

    Cleddau catchmentFirst Milk is a farmer owned dairy co-operative with over 2,000member dairy farmers.

    In Pembrokeshire, First Milk is investing in a new efuent plant attheir Haverfordwest Creamery, which processes 250 million litresof milk sourced from over 300 local farms. The plant is requiredto release treatment capacity for new housing developments. Thetreated efuent will discharge into the Western Cleddau w hich owsinto the Cleddau Rivers Special Area of Conser vation.

    Natural Resources Wales have assisted First Milk to develop aninnovative approach with its local dairy farmers, to reduce nutrientsleaving their farms to of fset any additional nutrient loadings fromthe new plant to the Cleddau catchment. Best practice workshops,1-2-1 consultancy advice, soil sampling and fer tiliser calibrationdemonstrations have been provided and bespoke nutrientmanagement plans created for par ticipating farmers. Resultingreductions in nitrate, phosphate and sediment losses are forecast tooffset the entire outow of the new efuent plant.

    As a farmer-owned business, First Milk is uniquely placed to deliversustainable practices along the supply chain: First Milk and itsfarmers are mutually dependent on each other and good waterstewardship is in everyone’s interests. 55

    Southern Water’s Integrated Water Cycle Management (IWCM)

    Southern Water is developing IWCM, a collaborative, holisticapproach that includes securing supplies, protecting theenvironment and reducing the risk of ooding. Building strongworking relationships with all water user s (including other watercompanies, businesses and farmers), developing a shared visionand agreeing desired outcomes are key to this approach. 56

    Business in the Community

    Molson Coors supports collective action in two catchments inthe UK

    Conserving water and protecting water resources is a central part ofMolson Coors brewery’s sustainability strategy, Our Beer Print. ForMolson Coors, water is important because the quality of its beer isdirectly affected by the quality of the water used to produce it.

    In the UK, Molson Coors is involved in collective action in twocatchments: the Wharfe in Tadcaster and the Wey in Alton. This hasinvolved setting up community user groups, sponsoring communityevents and supporting local restoration groups to clear banks andrestore bankside habitat to improve the river ows.

    The projects have helped the development of strong relationshipswith key stakeholders including the Environment Agency, have raisedawareness of water risks with staff and improve links and trust withthe local community. 53

    Dairy Crest supports Bude Cleaner Seas Project

    In Bude, the Cleaner Seas project (delivered by Volunteer Cornwallon behalf of the Environment Agency) aims to raise awarenessamong local businesses of bathing water quality and actions theycan take to improve it. Dairy Crest has worked with Cleaner Seasand individual farmers to look at how they can reduce dif fusepollution, for example through dealing with slurry, and to help inaccessing grants. Many farmers in the area also have tourisminterests so have a clear incentive to act. 54

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    Collaborating at regional, national andinternational level

    There are many multi-stakeholder partnerships and voluntaryindustry initiatives that food and drink companies are or couldbecome involved in at regional, national and international level.These partnerships are broad ranging and aim to advancethinking, develop and test new technologies, share knowledgeand good practice, engage in long-term planning andstrengthen policy and regulatory frameworks. Key initiatives arelisted at the end of this report.

    Smart Water: a prosperous future for the food and drink supply chain

    Coca-Cola, WWF-UK Freshwater Partnership and the Norfolk

    Rivers Trust work together to improve the health of the RiverNar

    Coca-Cola and WWF-UK Freshwater Partnership has worked withthe Norfolk Rivers Trust to improve the health of the River Nar.The Nar ows through an area dense in sugar beet – an essentialingredient in some of Coca-Cola’s portfolio of drinks. (Coca-Colasources 80% of the sugar used in its UK beverages from sugar beetgrown in the UK). It is a Site of Special Scientic Interest and in itshealthiest stretches is teeming with wildlife. But the majority of theNar is suffering from high levels of abstraction for domestic watersupplies and agriculture, and from pollution from local farms.

    The work of the partnership helped to restore the river to its natural,meandering state in places where over time it had been articiallychanged to ow in straight trenches. This helps the river andsurrounding meadows work more harmoniously together in times ofood, and makes the river attractive to wildlife.

    The partnership worked with farmers to improve water quality byintroducing more sustainable farming methods such as leavingbuffer strips around elds to help capture pollution running off theelds before it enters the river. 52

    A key part of the Freshwater Partnership has been to inuencegovernance of the water environment so that improvements seen onthe ground could be replicated elsewhere and issues that cannot beovercome at the catchment scale can be resolved through improved

    policy and legislation. Activities included: co-hosting a roundtablefor business and government representatives; undertaking sessionsat party conferences in the run up to the Water Bill passing throughparliament; river visits for politicians and sharing experiences fromthe catchment projects.

    WWF-UK and Coca-Cola are currently working on the CamEO (seepage 35 ) and Broadlands catchments, adjacent to the Nar.

    River Nar, Norfolk(Nick Ford / ickr) 37

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    Useful tools, guidance and initiatives

    1Understanding yourrelationship with water

    WRI’s Aqueduct Tool – Online global database of local-levelwater risk indicators and a global standard for measuring andreporting geographic water risk. www.wri.org/our-work/project/aqueduct

    WWF From Risk to Resilience – A comprehensive guide onthe water risks and oppor tunities for UK businesses, and howthey should respond. www.wwf.org.uk/what_we_do/rivers_and_ lakes/how_we_work/from_risk_to_resilience.cfm

    UN Global Compact CEO Water Mandate – A public-privateinitiative designed to assist companies in the development,implementation and disclosure of water sustainability policiesand practices. www.unglobalcompact.org

    WBCSD Global Water Tool – Online resource for identifyingcorporate water risks and oppor tunities. www.wbcsd.org/work-program/sector-projects/water.aspx

    GEMI Local Water Tool™ (LWT) – Tool to evaluate the externalimpacts, business risks, opportunities, and managementplans related to water use and discharge at a specic site oroperation. Developed to be compatible with the WBCSD GlobalWater Tool. www.gemi.org/localwatertool

    Environment Agency’s What’s In Your Backyard tool(WIYBY) – Online tool providing access to environmental datafor England at a local level, helping businesses to understandlocal water-related risks. apps.environment-agency.gov.uk/wiyby/default.aspx

    2Creating aplan of action

    WFN’s Water Footprint Assessment Tool – Online applicationthat helps users dene their water footprint in a particular riverbasin or around a product, determine the impacts of that waterfootprint, and identify ways to reduce it. http://waterfootprint.org/en/resources/interactive-tools/water-footprint-assessment-tool

    ISO14046 – Species principles, requirements and guidelinesrelated to water footprint assessment of products, processesand organizations based on life cycle assessment. www.iso.org/iso/catalogue_detail?csnumber=43263

    The Alliance for Water Stewardship’s (AWS) Standard – Aninternational standard that denes a set of water stewardshipcriteria and indicators for how water should be stewarded at asite and catchment level. www.allianceforwaterstewardship.org

    European Water Stewardship (EWS) Standard – A regionalinitiative of the AWS that promotes a catchment approach towater stewardship. www.ewp.eu

    The Carbon Trust Standard for Water – Provides a frameworkfor certifying organisations that measure, manage and reducewater use year on year. www.carbontrust.com/client-services/footprinting/footprint-certication/carbon-trust-water-standard

    CDP Water Program – Provides a framework for companiesto address their water-related impacts, risks and opportunities.The questionnaire supports companies along their jour neytowards better water stewardship in addition to communicatingwith investors and large purchasing organizations. www.cdp.net

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    Smart Water: a prosperous future for the food and drink supply chain Water sampling (USDA / ickr) 39

    3Managing water sustainablyin your operations

    Beverage Industry Environmental Roundtable (BIER) – Acoalition of global beverage companies working together toadvance environmental sustainability. BIER has produceda range of tools and guidance for companies from wateraccounting to water stewardship. www.bieroundtable.com

    British Retail Consortium’s (BRC) A Better Retailing Climate– A voluntary initiative that sets out the collective environmentalambitions of a group of BRC members and includes targets onwater reduction. www.brc.org.uk

    The Food and Drink Federation’s Five-fold EnvironmentalAmbition – A voluntary initiative that sets out the collectiveenvironmental ambitions of FDF members and whichincludes the manufacturing water use data reporting initiative.www.fdf.org.uk/priorities_sus_comp.aspx

    WRAP, Rippleffect – Online water efciency advice and tools.www.wrap.org.uk/content/rippleffect

    Waterwise – Provides information and assistance to businessesand other stakeholders on water efciency.www.waterwise.org.uk

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    4Working withagricultural suppliers

    Catchment Sensitive Farming (CSF) – Run by NaturalEngland in partner ship with the Environment Agency and Defra.Offers practical training to farmers and land managers onhow to reduce diffuse water pollution. www.gov.uk/guidance/catchment-sensitive-farming-reduce-agricultural-water-pollution

    Campaign for the Farmed Environment (CFE) – Anindustry-led initiative to help farming businesses supportthe environment by signposting to best practice in soilmanagement, crop nutrition and pesticide use.www.cfeonline.org.uk

    Agricultural Industry-led Approach to Water Quality – Apartnership between the National Farmers Union, CountryLand and Business Association and the Agricultural IndustriesConfederation proposing a new approach to partnering onwater quality challenges through the CFE, professional on-farmadvisers, and partner-led activity.

    The Dairy Road Map – A taskforce, comprising more than 25organisations from across Britain’s dairy industry, to denetargets and report on progress the industry is making onsustainability in the supply chain, including water efciency.www.dairyroadmap.com

    LEAF (Linking Environment And Farming) – Promotessustainable agriculture, food and farming. Provides guidanceand offers LEAF Marque logo for products produced to highenvironmental standards. www.leafuk.org

    Sustainable Agriculture Initiative (SAI) Platform – Produceda series of reports aiming to identify the best indicators andtools to help farmers monitor the sustainability of their farms.www.saiplatform.org

    The Rivers Trust – Provides farm advice, working with farmersto enhance environmental protection and improve resourcemanagement, yielding benets to farm business.www.theriverstrust.org

    Tried & Tested – An agricultural industry initiative aiming tohelp farmers to improve nutrient and manure managementplanning through a toolkit, publications and other guidance.www.nutrientmanagement.org

    Voluntary Initiative (VI) – An industry-led partnership topromote the responsible use of agricultural pesticides. VIprovides a UK-wide framework for promoting best practice at alocal scale. www.voluntaryinitiative.org.uk

    Agriculture and Horticulture Development Board (AHDB) – A statutory levy board, funded by farmers, growers and othersin the supply chain, providing independent evidence-basedinformation and tools. www.ahdb.org.uk

    Several industry associations also have initiatives, tools andadvice for their members including the Agricultural IndustriesConfederation, Irrigation UK, DairyUK and the Soil Association .

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