- freely available
Water 2019, 11(3), 438; https://doi.org/10.3390/w11030438
2. The Drivers for Change
3. The Barriers to Change
- Linking local to global—The complexity associated with developing a global or corporate approach/strategy that effectively accommodates the diverse range of water related issues present across different operating locations.
- Understanding stewardship—The noise and confusion created by the number of external water stewardship initiatives and cacophony of terms used .
- The organisational challenge—The complexities associated with the holistic management response to water challenges, which includes range of touchpoints across multiple functions of the business. These touchpoints often fall outside the remit of the environmental function where accountability for water issues conventionally lay. Relevant functions may include geotechnical, engineering, infrastructure, production, safety and health, community development, cultural heritage, government affairs and even product marketing.
- Stepping outside the fence—Engagement with other water users and participating in collective action may require considerable level of ongoing commitment and effort, with uncertain timeframes and outcomes. Further, there is reluctance to openly share data and involve others in decision-making processes due to concerns over how the information will be used and leveraged, which requires a shift in mindset and culture to overcome. In addition, presenting the business case for a collaborative approach remains challenging as there is currently no recognised method for quantifying the ‘value’ of water stewardship actions.
- Transfer of approach between operations—The local nature of water means that the approach taken by each mine site needs to be tailored to the local context. A localised approach to water takes time to develop and may not be able to be simply applied or scaled to other mine operations within the company’s portfolio.
- (Mis)understanding water value—The frequent and significant discrepancy between the actual market price of water and its true value as a business-critical resource, which makes it futile to simply use the cost of water to influence internal decision making . Mining companies that have suffered significant project delays or interruptions due to direct or indirect water-related impacts (e.g., drought resulting in intermittent hydroelectricity supply to the site) have thus begun to apply a ‘value at risk’ lens to water decision making.
4. Making the Paradigm Shift: Policy and Actions
5. The Continued Need for Water Stewardship Research and Guidance
Conflicts of Interest
- United Nations. Sustainable Development Goal 6 Synthesis Report 2018 on Water and Sanitation. Available online: http://www.unwater.org/publications/highlights-sdg-6-synthesis-report-2018-on-water-and-sanitation-2/ (accessed on 25 September 2018).
- Gleick, P.; Iceland, C.; Water, Security, and Conflict. Issue Brief: World Resource Institute and Pacific Institute. Available online: https://www.wri.org/publication-type/issue-brief (accessed on 25 September 2018).
- World Bank. High and Dry: Climate Change, Water, and the Economy; World Bank: Washington, DC, USA; Available online: https://openknowledge.worldbank.org/handle/10986/23665 (accessed on 25 January 2019).
- World Economic Forum. The Global Risks Report 2019, 14th ed. Available online: https://www.weforum.org/reports/the-global-risks-report-2019 (accessed on 28 January 2019).
- CEO Water Mandate. Guide to Water-Related Collective Action. Available online: https://ceowatermandate.org/resources/guide-water-related-collective-action/ (accessed on 25 September 2018).
- Alliance for Water Stewardship. The AWS International Water Stewardship Standard, version 1.0. Available online: https://a4ws.org/about/the-aws-standard/ (accessed on 12 October 2018).
- Wessman-Jääskeläinen, H.; Salmi, O.; Kohl, J.; Kinnunen, P.; Saarivuori, E.; Mroueh, U. Water and society: Mutual challenges for eco-efficient and socially acceptable mining in Finland. J. Clean. Prod. 2014, 84, 289–298. [Google Scholar] [CrossRef]
- Norgate, T.E.; Lovell, R. Water Use in Metal Production: A Life Cycle Perspective; CSIRO Minerals Report DRM-2505; Commonwealth Scientific and Industrial Research Organization: Melbourne, Australia, 2004. [Google Scholar]
- UNEP Finance Initiative. Chief Liquidity Series: Extractives Sector. Water-Related Materiality Briefings for Financial Institutions, Issue 3, October 2012. Available online: http://www.unepfi.org/fileadmin/documents/chief_liquidity2_01.pdf (accessed on 25 September 2018).
- Younger, P.; Wolkersdorfer, C. Mining Impacts on the Fresh Water Environment: Technical and Managerial Guidelines for Catchment Scale Management. Mine Water Environ. 2004, 23, S2–S80. [Google Scholar]
- Northey, S.; Mudd, G.; Werner, T.; Jowitt, S.; Haque, N.; Yellishetty, M.; Weng, Z. The exposure of global base metal resources to water criticality, scarcity and climate change. Glob. Environ. Chang. 2017, 44, 109–124. [Google Scholar] [CrossRef]
- Moody’s. Global Mining Industry: Water Scarcity to Raise Capex and Operating Costs, Heighten Operational Risks. Investor Service. 13 February 2013. [Google Scholar]
- Queensland Floods Commission of Inquiry. Final Report, Chapter 13—Mining. Available online: http://www.floodcommission.qld.gov.au/publications/final-report/ (accessed on 12 October 2018).
- Columbia Water Center. Mining & Water Risk: Diagnosis, Benchmarking, and Quantitative Analysis of Financial Impacts—A Synthesis of Key Findings; Research Project Report for Research Supported by Norges Bank Investment Management (NBIM); Columbia University: New York, NY, USA, 2017; Available online: http://water.columbia.edu/files/2015/05/NBIM-Synthesis-Chapter-FInal-4.11.18.pdf (accessed on 25 September 2018).
- Bank of America Merrill Lynch. Water Scarcity: Challenges and Opportunities for the Mining Industry. Equity, 29 September 2016. [Google Scholar]
- Hamilton, R.; Parsons, A. Responsible mining—From a life cycle to a stewardship approach. In Life Cycle Approaches to Sustainable Development; Massari, S., Sonnemann, G., Balkau, F., Eds.; Routledge: New York, NY, USA, 2017; pp. 265–272. [Google Scholar]
- Kunz, N. Catchment-based water management in the mining industry: Challenges and solutions. Extr. Ind. Soc. 2016, 3, 972–977. [Google Scholar] [CrossRef]
- Lloyd’s. Global Water Scarcity: Risks and Challenges for Business, Lloyd’s 360° Risk Insight. Available online: https://www.lloyds.com/news-and-risk-insight/risk-reports/library/natural-environment/global-water-scarcity (accessed on 25 September 2018).
- Shared Water, Shared Responsibility, Shared Approach: Water in the Mining Sector. Available online: https://www.icmm.com/shared-water-shared-responsibility (accessed on 25 September 2018).
- Bebbington, A.; Williams, M. Water and Mining Conflicts in Peru. Mt. Res. Dev. 2008, 28, 190–195. [Google Scholar] [CrossRef]
- ICMM. Research on Company-Community Conflict. Available online: https://www.icmm.com/website/publications/pdfs/social-and-economic-development/8515.pdf (accessed on 27 September 2018).
- Franks, D.M.; Davis, R.; Bebbington, A.; Ali, S.; Kemp, D.; Scurrah, M. Conflict translates environmental and social risk into business costs. PNAS 2014, 111, 7576–7581. [Google Scholar] [CrossRef] [PubMed][Green Version]
- Economist. From Conflict to Co-Operation. Available online: https://www.economist.com/the-americas/2016/02/06/from-conflict-to-co-operation (accessed on 11 October 2018).
- ICMM. Position Statement on Water Stewardship. Available online: http://www.icmm.com/water-ps (accessed on 25 September 2018).
- Societe Generale. Mining and Water Risk—Clear or Muddy Waters Ahead? SRI Report. Equity, 21 October 2013. [Google Scholar]
- Miranda, M.; Sauer, A. Mine the Gap: Connecting Water Risks and Disclosure in the Mining Sector; World Resources Institute: Washington, DC, USA, 2010; Available online: https://www.wri.org/publication/mine-gap (accessed on 25 September 2018).
- Bloomberg. Water Risk Valuation Tool White Paper—Integrating Natural Capital Limits into Financial Analysis of Mining Stocks. Available online: https://www.bbhub.io/sustainability/sites/6/2015/09/Bloomberg_WRVT_09162015_WEB.pdf (accessed on 12 October 2018).
- Lewis, B. Water Scarcity Tops List of World Miners’ Worries. Available online: https://www.reuters.com/article/us-africa-mining-water/water-scarcity-tops-list-of-world-miners-worries-idUSKBN15M26S (accessed on 25 September 2018).
- Orr, S.; Pegram, G. Business Strategy for Water Challenges: From Risk to Opportunity; Dō Sustainability: Oxford, UK, 2014. [Google Scholar]
- Morgan, A.; Orr, S. The Value of Water: A Framework for Understanding Water Valuation, Risk and Stewardship; Discussion Draft. Available online: https://commdev.org/wp-content/uploads/2015/05/The-Value-of-Water-Discussion-Draft-Final-August-2015.pdf (accessed on 12 October 2018).
- Newborne, P.; Dalton, J. Water Management and Stewardship: Taking Stock of Corporate Water Behaviour; IUCN: Gland, Switzerland; ODI: London, UK, 2016. [Google Scholar]
- ICMM. Water Stewardship Framework. Available online: http://www.icmm.com/water-stewardship-framework (accessed on 20 September 2018).
- ICMM. A Practical Guide to a Catchment-Based Approach to Water Management. Available online: http://www.icmm.com/guide-to-catchment-based-water-management (accessed on 20 September 2018).
- Global High-Level Panel on Water and Peace. A Matter of Survival—Report of the Global High-Level Panel on Water and Peace. Available online: https://www.genevawaterhub.org/resource/matter-survival (accessed on 12 October 2018).
- Fraser, J.; Kunz, N. Water Stewardship: Attributes of Collaborative Partnerships between Mining Companies and Communities. Water 2018, 10, 1081. [Google Scholar] [CrossRef]
- Danoucaras, N.; Vink, S.; Bansuan, A. Water Issues Associated with Mining in Developing Countries; IM4DC Action Research Report; Sustainable Minerals Institute, The University of Queensland: Brisbane, Australia, 2012. [Google Scholar]
- Barrick. Water Management. Available online: https://www.barrick.com/sustainability/environment/water/default.aspx (accessed on 25 September 2018).
- Newmont. Beyond the Mine—Our 2017 Social and Environmental Performance Report. Available online: https://sustainabilityreport.newmont.com/2017/environmental-stewardship/water (accessed on 25 September 2018).
- Pareja, C.; Honey-Rosés, J.; Kunz, N.; Fraser, J.; Xavier, A. What Participation? Distinguishing Water Monitoring Programs in Mining Regions Based on Community Participation. Water 2018, 10, 1325. [Google Scholar] [CrossRef]
- ICMM. A Practical Guide to Consistent Water Reporting. Available online: http://www.icmm.com/en-gb/environment/water/water-reporting (accessed on 20 September 2018).
- CEO Water Mandate. Corporate Water Disclosure Guidelines toward a Common Approach to Reporting Water Issues. Available online: https://ceowatermandate.org/disclosure/ (accessed on 25 September 2018).
- BHP. BHP Water Report 2018. Available online: https://www.bhp.com/environment/water-report-2018 (accessed on 25 September 2018).
- WWF. Seizing the Water Opportunity: How Private and Public Capital Can Join Forces to Secure Sustainable Water Supplies and Improve Freshwater Ecosystems; WWF: Gland, Switzerland; Available online: http://awsassets.panda.org/downloads/seizing_the_water_opportunity__final_.pdf (accessed on 15 January 2019).
- Task Force on Climate-related Financial Disclosures. Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures, June 2017. Available online: https://www.fsb-tcfd.org/wp-content/uploads/2017/06/FINAL-TCFD-Report-062817.pdf (accessed on 15 September 2018).
- S&P Global Market Intelligence. Available online: https://www.spglobal.com/marketintelligence/en/index (accessed on 19 January 2019).
© 2019 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).