The Carbon Disclosure Project (CDP) Water Questionnaire

Will Sarni, founder and CEO of Domani, a consulting firm that provides innovative business and technical sustainability solutions to companies operating around the world, will from time-to-time contribute to this blog. His perspective is particularly enriching to the blog's readers as illustrated in his membership in the Environmental Compliance Committee of the Chicago Climate Exchange and his activities with the Conference Board and Sustainable Life Media/Sustainable Brands.

He writes today about how water issues are playing a role in the Carbon Disclosure Project:

The Carbon Disclosure Project (CDP) recently announced that they would begin sending out a Water Disclosure Questionnaire in 2010 to the largest 300 global companies and the questionnaires will be summarized in a report in late 2010.

Based upon the success of the CDP Carbon Questionnaire over the past several years I fully expect the CDP Water Disclosure Questionnaire to be transformative in terms of raising awareness of water as a strategic business initiative.

The CDP was launched in 2000 with the goal of collecting and distributing information on climate risks and opportunities. The CDP now has over 2,500 organizations in 60 countries measuring and disclosing their greenhouse gas emissions and climate change strategies. These organizations voluntarily quantify their greenhouse gas footprint, set reduction targets and improve performance. The disclosure information is made available to institutional investors, corporations, policymakers and their advisers, public sector organizations, government bodies, academics and the public.

However, the most impressive aspect of the CDP is the financial power driving the survey; over 475 institutional investors, holding $55 trillion in assets under management, represent the CDP. This is the real driver for voluntary disclosure—investors are asking for this information—and why the Water Disclosure Questionnaire will be a critical aspect of corporate strategies and communications.

The announcement of the project came with the release of a CDP report titled, “The Case for Water Disclosure”. This report is a must read as it not only lays out the rationale for water disclosure but summarizes the results of a small scale water disclosure pilot project initiated by CDP in 2008 (as part of the CDP Supply Chain project). The pilot project demonstrated that for the most part companies have the ability and are willing to disclose information on water data and water issues. However, most companies do not have data on water use or water issues in their supply chain.

We are seeing more companies come to the realization that they need to measure their water footprint, identify risks and opportunities (direct and indirect water use) and be prepared to disclose how to manage their water related risks and what are your business opportunities look like.

This coming year we will see an increased awareness of water as a critical business issue across all industry sectors. Companies now need to be prepared to measure and report their water footprint and global strategies.

Will Sarni
Founder and CEO of Domani Consulting
Jan. 18, 2010