Business Opportunities

 

For many companies, water may present opportunities to drive positive business value. Water-related opportunities can be grouped into three categories:

  • Operation
  • Brand value
  • New markets

A description of a company’s water-related business opportunities is an important component of comprehensive water disclosure for basic and advanced disclosers alike.

Content Scope Format
Basic
  • High-level assessment of opportunities
Companywide Narrative; qualitative
Advanced (includes basic reporting)
  • Detailed assessment of opportunities
Companywide;Location-specific Narrative and tabular; qualitative
  • Value chain opportunities
Value chain

BASIC

High-level assessment of opportunities

Basic disclosure focuses on providing brief descriptions of potential of the broad types of opportunities created by water sustainability challenges that are more prevalent to the company based on its industry sector and geographic/geopolitical location. In particular, basic disclosers focus on the following considerations.

Cost-saving opportunities
Most companies have the potential to reduce water-related costs in their operations by implementing capital projects, modifying processes, and instituting behavioral change. Even in areas with low water prices, facilities may find cost savings by reducing the amount of energy used to transport or treat water.

Revenue-generating opportunities
For some companies, the greatest water-related opportunities may stem not from operational cost savings but from revenue-generating opportunities (e.g., providing products that contribute to the alleviation of water sustainability challenges, expanding to new markets, building brand value by advancing sustainable water management).

ADVANCED

Detailed assessment of opportunities

Advanced disclosers provide a more detailed assessment of opportunities, describing whether they are globally applicable or specific to certain geographic or geopolitical areas, the nature of the opportunity (e.g., operations, brand value, new market) and potential business benefits, and how the company plans to seize it. Potential business benefits to discuss include

  • Operation
  • Cost savings
  • Increased brand value
  • Improved water efficiency
  • Regulatory changes
  • Sales of new products and services
  • Staff retention

Companies also specify the timeframe in which they expect the opportunity to affect the company and discuss the specific measures they are taking to exploit the identified opportunities.

Value chain opportunities

Much in the same way companies report value chain risks, they can also offer information on potential cost savings and revenue-generating opportunities generated by driving sustainable water management among its suppliers. Such disclosure allows audiences to better understand how the company can reduce the cost of its inputs, promote viability and effectiveness among key suppliers, and broaden its sphere of influence and therefore drive increased brand value.

“WOOLWORTHS (TAKEN FROM 2013 CDP WATER DATA)”
A new range of water efficient products or products from water efficient suppliers in foods (such as farming for the future), home and clothing will create new sales opportunities.

“SABMILLER (TAKEN FROM 2013 CDP WATER DATA)”
A new range of water efficient products or products from water efficient suppliers in foods (such as farming for the future), home and clothing will create new sales opportunities.



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