1.1. The South African Perspective
1.2. The Mining Perspective
1.3. Theoretical Foundation
2. Literature Review
2.1 The Main Drivers of Water Risk in South Africa are :
- lack of water resources;
- water quality constraints;
- climate change;
- demographic changes;
- unsustainable land use practices; and
- governance and institutional challenges.
2.1.1 Lack of Water Resources
2.1.2. Water Quality Constraints
2.1.3. Climate Change
2.1.4. Demographic Changes
2.1.5. Unsustainable Land Use Practices
2.1.6. Governance and Institutional Challenges
2.2. The Importance of Water Sustainability in the Mining Sector
- Financial risks: Companies could be expected to pay for the water treatment costs and the cost of continued pumping of unused mines.
- Physical risks: These include limited water availability, poor quality, supply chain impacts, flooding, wastewater discharges, and groundwater contamination.
- Reputational risks: An example of this would be lawsuits by local communities for polluting their drinking water, thereby damaging the mining company’s image.
- Regulatory risks: The government could impose new permitting standards or more stringent wastewater standards. It may, therefore, be necessary for companies to conduct risk assessments that identify and quantify water-related business risks.
2.3. Findings of Two Previous Studies Conducted in the Mining Sector
2.3.1. The Carbon Disclosure Project (CDP) South Africa’s Water Report 
2.3.2. The 2008 Global Study 
- No action: There is no evidence that the company has taken any action in this area.
- Initial steps: Action has been taken, but the company is only beginning to implement the practice.
- Advanced progress: Action has been taken and good progress towards leading practice has been made, however, gaps still exist in the company’s approach.
- Leading practice: Action is consistent with what leading companies are doing and are aspiring to do in this area .
- no action = 0
- initial steps = 1
- advanced progress = 2
- leading practice = 3
4. Findings and Discussion
4.1.1. Data Gathering
4.1.2. Risk Assessment
4.2.1. Governance and Accountability
4.2.2. Policies and Standards
4.2.3. Business Planning
4.3. Stakeholder Engagement
6. Recommendations for Future Research
Conflicts of Interest
Appendix A. Ceres Aqua Gauge™ Findings of Selected Mining Companies
|Company||African Rainbow||Amplats||Ashanti||Assore||Exxaro||Gold Fields||Implats||Kumba||Northam|
|1.1||Its own regulatory compliance, water use and discharge||2||3||2||1||2||3||2||3||2|
|1.2||Its own environmental and social impacts on direct water sources||2||3||2||1||1||2||1||3||2|
|1.3||External factors—such as economic and social development, impacts of other users, climate change and public policy—affecting direct water sources||2||3||2||1||1||3||1||2||2|
|1.4||Stakeholder perceptions and concerns relating to water issues||2||2||1||1||2||3||1||2||2|
|1.5||The effectiveness of suppliers’ water management practices||0||0||0||0||0||0||0||0||0|
|1.6||Water-related risks in direct operations||2||3||2||1||1||2||1||1||1|
|1.7||Water-related risks in the supply chain||0||0||0||0||0||0||0||0||0|
|Governance and accountability|
|2.1||Clarifies board responsibilities for oversight of water||1||1||1||1||1||1||1||1||1|
|2.2||Involves senior executives directly in management of water-related issues||1||1||1||1||1||1||1||1||1|
|2.3||Aligns public policy positions and lobbying with water stewardship goals||1||2||1||0||1||2||1||2||1|
|Policies and standards|
|2.4||Has a publicly available water policy and recognises the importance of water to the business||2||3||2||1||1||3||1||2||2|
|2.5||Sets performance standards and goals on water withdrawals/consumption for direct operations||0||2||2||0||2||2||2||2||2|
|2.6||Sets performance standards and goals on wastewater discharge for direct operations||0||1||1||0||1||2||0||2||2|
|2.7||Requires direct operations to develop plans to address local watershed risks||2||2||2||1||2||2||1||2||2|
|2.8||Addresses sustainable water management in supplier standards and codes, and in procurement and contracting practices||0||0||0||0||0||0||0||0||0|
|2.9||Considers water in business planning and investment decision-making||2||2||2||0||1||2||1||1||1|
|2.10||Considers water in product design and development||1||2||2||0||1||2||1||1||1|
|2.11||Identifies water-related business opportunities||1||2||0||0||2||3||2||2||0|
|3. STAKEHOLDER ENGAGEMENT|
|3.1||Requires engagement with local communities on water-related issues at existing or potential new operations||2||2||2||1||2||2||0||2||1|
|3.2||Engages with employees on water issues||0||2||0||0||0||0||0||0||2|
|3.3||Works with suppliers to help them improve water management||0||0||0||0||0||0||0||0||0|
|3.4||Engages openly with local, regional and national governments or regulators to advance sustainable water policies and management||2||3||2||1||2||2||1||3||2|
|3.5||Engages with NGOs and community organisations on water issues||2||3||2||0||2||3||1||3||2|
|3.6||Engages with other industries/companies/water users||0||3||2||0||2||2||0||1||1|
|3.7||Educates customers to minimise product impacts||0||0||0||0||0||0||0||0||0|
|Total Stakeholder Engagement||6||13||8||2||8||9||2||9||8|
|4.1||Makes water-related information publicly available||1||3||1||1||1||3||1||2||1|
|4.2||Includes water data and analysis in published financial filings/reports||1||1||1||1||1||1||1||1||1|
|4.3||Provides third-party assurance or audits water-related information||0||0||0||0||0||1||0||1||0|
|Category||Sub-Category||Description The Company||Activity||Disclosure Reference|
|MEASUREMENT||Data Gathering||Collect and monitors data related to:||1.1 Its own regulatory compliance, water use, and discharge||CDP Water 2014 (W5) GRI G4 (EN8, EN9, EN10, EN22, EN23, EN24)|
|1.2 Its own environmental and social impacts on direct water sources||CDP Water 2014 (W1.3a, W2.4, W3.2b) GRI G4 (EN9, EN12, EN24, EN26)|
|1.3 External factors affecting direct water sources||CDP Water 2014 (W2.4, W3.2b)|
|1.4 Stakeholder perceptions and concerns relating to water issues||CDP Water 2014 (W2.4, W2.4a, W8.1b)|
|1.5 Effectiveness of suppliers’ water management practices||CDP Water 2014 (W2.5, W2.5a, W2.5b)|
|Risk Assessment||Identifies and quantifies water-related risks for its:||1.6 Direct operations||CDP Water 2014 (W2.1, W2.2, W2.3, W3.1, W3.2a, W3.2b)|
|1.7 Supply chain||CDP Water 2014 (W2.1, W3.1, W3.2c, W3.2e)|
|MANAGEMENT||Governance||Set accountabilities for water through:||2.1 Board of directors||CDP Water 2014 (W6.1)|
|2.2 Senior management||CDP Water 2014 (W6.1)|
|2.3 Public policy and lobbying positions||CDP Water 2014 (W6.2a)|
|Policies and Standards||Set performance standards and goals through||2.4 Publicly available water policy/statement||CDP Water 2014 (W6.2a, W6.3)|
|2.5 Standards and goals on water withdrawals/consumption for direct operations||CDP Water 2014 (W8, W8.1a, W8.1b)|
|2.6 Standards and goals on wastewater discharge for direct operations||CDP Water 2014 (W8, W8.1a, W8.1b)|
|2.7 Plans to address local watershed risks||CDP Water 2014 (W2.2, W3.2b)|
|2.8 Supplier standards and codes, procurement and contracting practices||CDP Water 2014 (W6.2a, W6.3)|
|Business Planning||Integrates water in decision-making related to:||2.9 Business planning and capital allocation||CDP Water 2014 (W1, W3.1, W3.2, W3.2a W4)|
|2.10 Product design and development||CDP Water 2014 (W4.1a, W6.2a)|
|2.11 Opportunities identification||CDP Water 2014 (W1.3a, W4.1a, W6.2a)|
|ENGAGEMENT||Engages with internal and external stakeholders on water-related issues||3.1 Local communities||CDP Water 2014 (W2.4a, W8.1b)|
|3.2 Employees||CDP Water 2014 (W2.4a)|
|3.3 Suppliers||CDP Water 2014 (W2.4a, W2.5, W8.1b)|
|3.4 Government and regulators||CDP Water 2014 (W2.4a, W8.1b)|
|3.5 NGOs and community groups||CDP Water 2014 (W2.4a, W8.1b)|
|3.6 Other industries/water users||CDP Water 2014 (W2.4a)|
|3.7 Customers||CDP Water 2014 (W2.4a, W8.1b)|
|DISCLOSURE||Discloses:||4.1 Water-related information||-|
|4.2 Data and analysis related to water in financial filings/reports||-|
|4.3 Audited/assured water-related data||CDP Water 2014 (W5.7)|
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|Name of Company||Report Type Used|
|African Rainbow Minerals||Sustainability Report 2013|
|Anglo American Platinum Limited (Amplats)||Sustainability Report 2013|
|Anglo Gold Ashanti||Sustainability Report 2013|
|Assore||Integrated Annual Report 2013|
|Exxaro||Integrated Annual Report and Supplementary Info Report 2013|
|Gold Fields||Integrated Annual Report 2013|
|Impala Platinum Holdings (Implats)||Sustainability Report 2013|
|Kumba Iron Ore||Sustainability Report 2013|
|Northam Platinum Limited||Sustainability Report 2013|
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