Written evidence submitted by SABMiller
plc
SUMMARY
1. SABMiller welcomes the opportunity to
submit evidence to the International Development Select Committee.
Our submission addresses the question of "the effectiveness
and coherence of the UK Government's approach to sustainable development
in developing countries".
2. Climate change is an issue of growing global
concern which demands action from all sectors of society. Reducing
our energy and carbon footprint is one of SABMiller's 10 sustainable
development priorities and is equally applicable in developing
markets as it is in Europe or the US. Our work in this area ranges
from energy efficiency programmes to renewable energy investments.
3. However we feel that the main contribution
we can make to this consultation concerns the impact of climate
change on water resources. Within this context we focus specifically
on DFID's new water strategy, "Water: An increasingly precious
resource".
4. While this strategy acknowledges that
water is central to climate change, in our view it does not make
enough provision for the active pursuit of partnerships and strategic
collaboration with the private sector.
5. For example, it recognises that effective
water resources management will be dependent on supporting "work
by international agencies and developing countries to collect
and use global and regional information on rainfall, and on surface
water and groundwater hydrology, in order to manage water resources
better, and to develop regional and national plans for coping
with the impacts of climate change", but it does not make
reference to, or show an understanding of how, private sector
expertise could add significant value to this process.
6. SABMiller, and others in the private
sector, have extensive experience of water issues and water resources
management -both of which have been identified by DFID as a key
priority for action.
7. We would like to share that experience
with DFID and other policy makers and help to develop practical
policy measures designed to harness the strengths of the private
sector and encourage more public-private partnerships. Specific
recommendations on how to achieve this are set out at the end
of this document.
A BRIEF INTRODUCTION
TO SABMILLER
8. SABMiller is one of the world's largest
brewers with brewing interests and distribution agreements across
six continents; we are also one of the world's largest bottlers
of Coca-Cola products.
9. With a heritage rooted in Africa -a continent
with 66% of the world's poor and 315 million people living on
less than a dollar a day -we are very conscious of our responsibilities
to society. As long as markets are competitive and free, the private
sector will succeed and make profits only when they manage relationships
effectively, use resources efficiently and meet society's needs.
10. SABMiller takes its responsibility to
reduce harmful greenhouse gas emissions seriously: over the last
four years we have improved our average brewery energy efficiency
by 15% including significant improvements in our operations in
emerging and developing markets.
11. SABMiller has set itself the demanding
target of reducing water use per litre of beer by 25% by 2015.
This initiative will save around 20 billion Iitres of water every
year by 2015. In 2008, SABMiller used an average of 4.6 litres
of water for every litre of beer produced and aims to reduce this
to 3.5 Iitres by 2015. The industry average is 5 litres.
12. More information is available at www.sabmiller.com
RECOGNISING THE
ROLE OF
THE PRIVATE
SECTOR
13. The private sector has accumulated a
range of skills, resources and global experience in water management
in a changing climatic context. This is reflected in our operations
and policies and through the partnerships that we have developed
with local and international stakeholders in addressing the water
issue.
14. In July 2007 SABMiller's Chief Executive,
Graham Mackay, became a founding signatory of the United Nations
CEO Water Mandate. This is an initiative which grew out of a collaborative
partnership between the United Nations Global Compact, the Government
of Sweden and a group of committed companies and organisations
dealing with the problems of water scarcity and sanitation.
15. The initiative acknowledges that the
private sector, through the production of goods and services,
impacts on water resources -both directly and through supply chains.
Endorsing CEOs acknowledge that in order to operate in a sustainable
manner, and contribute to the vision of the UN Global Compact
and the realisation of the Millennium Development Goals, they
have a responsibility to make water-resources management a priority,
and to work with governments, UN agencies, non-governmental organisations,
and other stakeholders to address this challenge.
16. We are also working closely with the
World Economic Forum and are a signatory to their water initiative.
WEF has recognised the importance of the private sector in tackling
global water issues. It has brought together a group of global
companies to work on the issue. The signatories have been charged
with creating innovative partnerships on water management involving
research, development, farming, NGO and Government communities.
They have also pledged to implement sustainable water practices
within their supply chains and existing networks.
17. We have also been active at a local
level. In March 2008 we hosted a dialogue on water resources in
Dar es Salaam, with WWF, Wateraid, Care International, the local
water company and other local stakeholders attending. Significant
common ground was found and together we will pursue an agenda
to lobby for improved river water supply to Dar es Salaam through
better public investment and water governance.
SABMILLER'S
EXPERIENCE
18. We have invested substantial resources
in time, money and expertise to find ways to adapt to the effects
of climate change on water. During the past year, we engaged a
specialist consultancy to evaluate the high level, long-term water
availability for each of our facilities. Using proprietary databases
along with the new World Business Council for Sustainable Development
water tool, we mapped all our breweries, malting operations and
soft drinks plants against the water challenges they face now
through to 2025.
19. Following on from this work, our sustainable
development and group technical teams have built a watershed mapping
tool to enable each of our plants to determine a more detailed
picture of the pressures they face at a local level. Using this
tool, during 2008-09 we will be completing watershed mapping exercises
at around 30 breweries facing potential long-term water stress,
developing detailed action plans for each.
20. We are also looking at the opportunities
offered by more efficiently irrigated crops, rainwater harvesting
and other techniques to protect water resources across our supply
chain.
21. SABMiller's industry-leading stance
on water is cemented by a recent water-footprinting project implemented
by its South African subsidiary SAB Ltd. The work, undertaken
with strategic advice from WWF, identifies not only how much water
is used at each stage of the supply chain, but goes further to
calculate the proportion of available local water resources that
this represents. This enables SABMiller's full time agronomists
to focus their efforts on engaging with farmers who need to become
more water-efficient. SABMiller is one of the first companies
to conduct such a footprinting exercise.
PARTNERSHIP
22. SABMiller is keen to work constructively
with DFID to identify effective ways of harnessing private sector
expertise in water resource management. We believe closer cooperation
with business in formulating and delivering policies for addressing
water scarcity in developing countries will reap considerable
benefit.
RECOMMENDATIONS
To achieve this partnership, SABMiller recommends
that DFID:
23. Conducts a thorough review of how it can
harness private sector expertise.
24. Advocates that the donor community looks
more closely at harnessing private sector resources to address
water resources management as an adaptation to the effects of
climate change.
25. Reviews funding priorities to promote
public private partnerships where these deliver on DFID objectives.
26. Arranges to meet with private sector
representatives to discuss practical ways in which more strategic
partnerships with the private sector can support DFID in its watershed
mapping objectives.
27. Develops broad-based guidelines for
DFID and for businesses on how partnerships could be pursued,
at the departmental as well as country level.
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