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CDP Consultation: 2020

CDP Water Security Questionnaire
Contents

Contents ........................................................................................................................................................................................................................ 2
1.    Introduction ............................................................................................................................................................................................................. 3
2.    Developments and revisions ................................................................................................................................................................................... 5
Module W1 – Current state ............................................................................................................................................................................................ 5
Module W3 - Procedures ............................................................................................................................................................................................. 11
Module W5 – Facility-level accounting ......................................................................................................................................................................... 12
Module W6 – Governance ........................................................................................................................................................................................... 13
Module W8 - Targets & Goals ...................................................................................................................................................................................... 15
Module W9 – Linkages and trade-offs .......................................................................................................................................................................... 16
New topic ..................................................................................................................................................................................................................... 18
Metals & mining ........................................................................................................................................................................................................... 19

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1. Introduction

How to use this document

This document presents questionnaire content associated with:
    The proposed modifications and changes for 2020 and developments planned for 2021 - set out in the water security section of the
       consultation briefing document, which can be found on CDP’s consultation webpage.
    The feedback requests presented in the online water security feedback form.

Please read the consultation briefing before reviewing this content document, and then use the feedback form to provide your
feedback and to share your expertise with CDP.

In this document, proposed changes for 2020 and their rationale are detailed in a red table, and the associated content displayed
underneath. Proposed developments for 2021 are detailed in a grey table. For reference you may wish to access CDP’s 2019 water
security questionnaire and guidance available via our website.

Note: The proposed revisions and additions presented in this document are not final and will be subject to change following feedback from
the consultation and before the 2020 questionnaire previews are published in December 2019.

Proposed revisions
The overall strategy for 2020 developments is to continue the stabilization of the questionnaire; to simplify and reduce the reporting effort
for disclosers where possible. The main drivers for the changes set out here are stakeholder feedback, CDP’s aim to simplify and clarify
the requested information, and to introduce longer term developments as part of CDP’s strategy for driving water security for all. In the
case of the metals and mining sector, we have responded to increased investor interest in tailings dams hazards and the outcomes of a
focussed project to review the sector specific questions.

a) Scope of proposed revisions to the water security questionnaire for 2020:
     1 column added, 1 row removed, 1 question removed (Module W1 - Current state)
     1 column added (Module W5 - Facility level accounting)
     2 new questions (Module W6 - Governance)
     1 entire module removed (Module W9 - Linkages & Trade-offs)
     1 new question - Metals & mining sector only (Module W3 - Procedures)

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b) Development areas planned for 2021:
     Water dependence rating simplified (Module W1 - Current state)
     Water intensity information requested (Module W1 - Current state)
     Freshwater definition review (Module W1 - Current state)
     Water pollution data points included (Module W3 - Procedures)
     Focus on water-stressed areas (Module W5 - Facility level accounting)
     Employees incentive questions reviewed (Module W6 – Governance)
     Capital flexibility requested - Metals & mining sector (Module W7 - Strategy)
     Targets data reviewed (Module W8 – Targets & goals)
     Hydrological data sharing information requested (new topic)

Content related to these revisions and developments is presented below module by module, followed by developments specific to the Metals and
mining sector.

© 2019 CDP Worldwide The copyright of the material contained in this document is owned by CDP Worldwide, a registered charity number 1122330 and a company limited by
guarantee, registered in England number 05013650.No part may be reproduced without the written consent of CDP. Any unauthorized use is prohibited and CDP reserves the right to
protect its copyright by all legal means necessary.

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2. Developments and revisions

Module W1 – Current state
 2019 question no.     2019 question text                                  Revisions from 2019                Rationale for revisions
 W1.1                  Rate the importance (current and future) of water   For 2021, revised table            Simplifying this question reduces the reporting effort and reflects that an
                       quality and water quantity to the success of your   - removal of water quality rows    organization’s dependence on water, regardless of quality, has potential risks and
                       business.                                           - removal of direct/indirect use   impacts. It also aids consistency with other parts of the questionnaire.
                                                                           columns

(W1.1) In which parts of your value chain is water important or vital?
Response options
Please complete the following table:

 Value chain stage                                                         Importance rating                                            Please explain

                                                                           Select from:
 Direct operations                                                                                                                      Text field [maximum 2,000 characters]
                                                                           ● Not important at all
                                                                           ● Not very important
                                                                           ● Neutral
                                                                           ● Important
                                                                           ● Vital
                                                                           ● Have not evaluated

 Supply chain

 Other stages of the value chain

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2019 question no.     2019 question text                                         Revisions from 2019                Rationale for revisions
 W1.2                  Across all your operations, what proportion of the         For 2020, removal of row for       To help increase the focus of the questionnaire on activity in water stressed areas, and
                       following water aspects are regularly measured and         withdrawals from water             so increase the level of alignment with other reporting frameworks, we will ask
                       monitored?                                                 stressed areas                     organizations if they use water from sources in water stressed regions (W1.2d). This will
                                                                                                                     allow us to remove the mention of stressed areas from question W1.2.
 W1.2d                 Provide the proportion of your total withdrawals sourced   For 2020, new column
                       from water stressed areas.                                 regarding withdrawals from
                                                                                  water stressed areas

(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?
Response options
Please complete the following table:

 Water aspect                                                                     % of sites/facilities/operations                                  Please explain

 Water withdrawals – total volumes                                                Select from:                                                      Text field
                                                                                  ● Not monitored
                                                                                  ● Less than 1%
                                                                                  ● 1-25
                                                                                  ● 26-50
                                                                                  ● 51-75
                                                                                  ● 76-99
                                                                                  ● 100%
                                                                                  ● Not relevant

 Water withdrawals – volumes from stressed areas

 Table continues as per 2019 W1.2

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(W1.2d) Provide the proportion of your total withdrawals sourced from water stressed areas.
Response options
Please complete the following table:

 Is water withdrawn from water         % withdrawn from stressed areas         Comparison with previous               Identification tool                      Please explain
 stressed areas?                                                               reporting year

 Select from:                          Percentage field                        Select from:                           Select from:                             Text field

 ● Yes                                                                         ● Much lower                           ● WBCSD Global Water Tool
 ● No                                                                          ● Lower                                ● WRI Aqueduct
 ● Unknown                                                                     ● About the same                       ● WWF Water Risk Filter
                                                                               ● Higher                               ● IPIECA Global Water Tool for Oil
                                                                               ● Much higher                             and Gas [oil & gas companies
                                                                               ● This is our first year of               only]
                                                                                  measurement                         ● Other, please specify

 2019 question no.   2019 question text                                        Revisions from 2019           Rationale for revisions
 W1.2j               What proportion of your total water use do you recycle    For 2020, removal of          Recycling and reuse of water has a significant role to play in reducing overall demands
                     or reuse?                                                 questions for all             for freshwater. Organisations have opportunities across the disclosure framework to
                                                                               organizations                 demonstrate how this activity is being deployed to reduce impacts and risks. As such, we
                                                                                                             are considering removing this question.

 W-MM1.2j            For your metals and mining operations, provide details
                     of the volume of water recycled or reused by your
                     organization and the proportion of total water use this
                     represents.

 W-OG1.2j            What proportion of your total water use do you recycle
                     or reuse in your operations associated with the oil &
                     gas sector?

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(W1.2j) What proportion of your total water use do you recycle or reuse?
Response options
Please complete the following table:

 % recycled or reused                                        Comparison with previous reporting year                      Please explain

(W-MM1.2j) For your metals and mining operations, provide details of the volume of water recycled or reused by your organization and the
proportion of total water use this represents.
Response options
Please complete the following table:

 Volume of water recycled or reused by your organization     % of total water use recycled or reused                      Please explain

(W-OG1.2j) What proportion of your total water use do you recycle or reuse in your operations associated with the oil & gas sector?
Response options
Please complete the following table:

 Business division                             % recycled and reused                        Comparison with previous reporting year        Please explain

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2019 question no.    2019 question text                  Revisions from 2019             Rationale for revisions
 N/A                  N/A                                  For 2021, question on water    Water intensity data is useful for identifying opportunities to reduce
                                                          intensity presented to all      withdrawal/consumption, and therefore for decoupling economic activity from absolute
                                                          responding organizations (a     water demand. Reductions in water intensity, when accompanied by a reduction in water
                                                          sector specific version was     withdrawals can be a useful indicator for organizations to demonstrate their contribution
                                                          previously presented to high-   to the SDG6 country-level metric for water intensity (economic output/m3 withdrawn). We
                                                          impact sectors only)            are requesting a simple Yes/No response to understand the extent to which companies
                                                                                          are using intensity data. No absolute intensity data is requested at this stage as we
                                                                                          recognize that comparability is complex.

(W1.3) Do you calculate water intensity for your business activities?
Response options
Please complete the following table:

 Water intensity calculation                          Please explain

                                                      For example:
 Select from:
                                                      ● Metric used
 ● Yes                                                ● Has this resulted in a reduction in withdrawals?
 ● No                                                 ● Is there an associated target?
                                                      ● How does this compare to last year?
                                                      ● Why do you not use intensity metrics?

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Review of freshwater quality definitions
Glossary (2019)

   •   Fresh surface water, including rainwater, water from wetlands, rivers and lakes: Water that is naturally occurring water on the Earth's
       surface in ice sheets, ice caps, glaciers, icebergs, bogs, ponds, lakes, rivers and streams, and has a low concentration of dissolved solids. For
       the purposes of reporting water accounting data to CDP, this surface water source includes water of a quality generally acceptable for, or
       requiring minimal treatment to be acceptable for, domestic, municipal or agricultural uses (at least
Module W3 - Procedures

 Water quality and industrial pollution

  NO CONTENT – The new content has not yet been developed; please refer to Consultation Briefing. We invite suggestions on data points via the
  feedback form.

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Module W5 – Facility-level accounting

 2019 question no.      2019 question text                                   Revisions from 2019             Rationale for revisions
 W5.1                   For each facility referenced in W4.1c, provide       For 2020, new column to         This will allow organizations to demonstrate that they are aware of facilities located in
                        coordinates, total water accounting data and         indicate whether facility       potentially high impact locations. In addition, CDP seeks to maximize alignment with
                        comparisons with the previous reporting year.        located in water stressed       other reporting frameworks and standards such as GRI, SASB, and the TCFD.
                                                                             area

(W5.1) For each facility referenced in W4.1c, provide coordinates, total water accounting data and comparisons with the previous reporting
year.
Response options
Please complete the following table. You are able to add rows using the “Add Row” button at the bottom of the table.

 Facility reference       Facility name             Country/Region       River basin              Latitude                  Longitude                  Located in a water         [Table continues as
 number                   (optional)                                                                                                                   stressed area              per 2019 W5.1]

 Select from:             Text field                Select from:         Select from:             Numerical field           Numerical field            Select from:               […]

 ● Facility reference                               ● Country/region     ● River basin drop-                                                           ● Yes
   numbers: 1-50                                       drop-down lost      down list                                                                   ● No
                                                                         ● Other, please                                                               ● Unknown
                                                                           specify

[Add Row]

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Module W6 – Governance

 2019 question no.   2019 question text                                     Revisions from 2019           Rationale for revisions
 W-FB6.4/            Do you provide incentives to C-suite employees or      For 2020, questions           Employee incentives are a tool that all organizations dependent on water can use to
 W-CH6.4/            board members for the management of water-related      presented to all responding   embed impact reduction commitments and targets into decision making. Senior
 W-EU6.4/            issues?                                                organizations (previously     employee incentives send a clear signal about the employee’s role in achieving water
 W-OG6.4/                                                                   presented to high-impact      security.
 W-MM6.4                                                                    sectors only)

 W-FB6.4a/           What incentives are provided to C-suite employees or
 W-CH6.4a/           board members for the management of water-related
 W-EU6.4a/           issues (do not include the names of individuals)?
 W-OG6.4a/
 W-MM6.4a

(W6.4) Do you provide incentives to C-suite employees or board members for the management of water-related issues?
Response options
Select from the following options:

 •    Yes
 •    No, not currently but we plan to introduce them in the next two years
 •    No, and we do not plan to introduce them in the next two years

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(W6.4a) What incentives are provided to C-suite employees or board members for the management of water-related issues (do not include
the names of individuals)?
Response options
Please complete the following table.

 Type of incentives             Who is entitled to benefit from these      Indicator for incentivized performance                   Please explain
                                incentives?

 Monetary reward                Select all that apply:                     Select all that apply:                                   Text field

                                ● Board chair                              ● Reduction of water withdrawals
                                ● Board/Executive board                    ● Reduction in consumptive volumes
                                ● Director on board                        ● Reduction of product water intensity
                                ● Corporate executive team                 ● Efficiency project or target – direct operations
                                ● Chief Executive Officer (CEO)            ● Efficiency project or target – downstream in the
                                ● Chief Financial Officer (CFO)               value chain
                                ● Chief Operating Officer (COO)            ● Efficiency project or target – upstream in the
                                ● Chief Purchasing Officer (CPO)              value chain
                                ● Chief Risk Officer (CRO)                 ● Effluent quality improvements
                                ● Chief Sustainability Officer (CSO)       ● Behavior change related indicator
                                ● Other C-suite Officer                    ● Supply chain engagement
                                ● Other, please specify                    ● Increasing access to workplace WASH
                                ● No one is entitled to these incentives   ● Water-related community project
                                                                           ● Other, please specify

 Non-monetary reward

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Module W8 - Targets & Goals

 Robust water targets

  NO CONTENT – The new content will be developed following review and consultation; please refer to Consultation Briefing and click here to see
  the 2019 content for this module on our website.
  We invite suggestions on potential revisions to the existing module via the feedback form.

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Module W9 – Linkages and trade-offs

 2019 question no.   2019 question text                                        Revisions from 2019           Rationale for revisions
 W9.1                Has your organization identified any linkages or trade-   For 2020, removal of module   To simplify the questionnaire, we will consider removing this module for 2020 disclosure.
                     offs between water and other environmental issues in                                    To inform this decision, we would like feedback from organizations and data users on the
                     its direct operations and/or other parts of its value                                   value of the module and how the information requested informs decision making.
                     chain?

 W9.1a               Describe the linkages or trade-offs and the related
                     management policy or action.

 W9.1b               Why has your organization not identified any linkages
                     or trade-offs between water and other environmental
                     issues?

(W9.1) Has your organization identified any linkages or trade-offs between water and other environmental issues in its direct operations
and/or other parts of its value chain?
Response options
Select one of the following options:

•    Yes
•    No

(W9.1a ) Describe the linkages or trade-offs and the related management policy or action.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

 Linkage/tradeoff                                 Type of linkage/tradeoff                        Description of linkage/tradeoff                    Policy or action

[Add Row]

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(W9.1b) Why has your organization not identified any linkages or trade-offs between water and other environmental issues?
Response options
Please complete the following table:

Primary reason                                                                                      Please explain

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New topic

 Hydrological data sharing

  NO CONTENT – The new content has not yet been developed; please refer to Consultation Briefing. We invite suggestions on this proposal and
  potential data points via the feedback form.

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Metals & mining

 Hazardous tailings dams

  NO CONTENT – The new content has not yet been developed; please refer to Consultation Briefing. We invite suggestions on this proposal and
  potential data points via the feedback form.

 Financial metrics on capital structure and flexibility

  NO CONTENT – The new content has not yet been developed; please refer to Consultation Briefing. We invite suggestions on this proposal and
  potential data points via the feedback form.

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