september-october 2008 issue 05

a specialized csr journal

10 cover story

pakistan’s water problems: do we enough to act? care

hearkens 13 the state
rainwater harvesting

1 6 hy dropo

water power r in pakistan

we

po corruption: 2 0 re ter and wa ve partnership
a destru cti

rt

o- m etre 2 6 eco-r am ecolog ical retrea teri gr t
tation 3 6 csr: a repu opport al

ats & ec

odels

social responsi corporate bility: reputation at risk a

unity

A Publication of Asiatic Public Relations Network (Pvt.) Ltd.

CROSSW

ORD

regulars
6 global briefs
people - planet - profits

20 report
water and corruption: a destructive partnership

24 social partnership 34 breather

pani ghar - case study of a social enterprise strategic humour the sustainable enterprise fieldbook

CROSSWORD

47 book in focus 48 musings
whose water is it anyway?

Editor-in-Chief Zohare Ali Shariff Editorial Director Khadeeja Balkhi Managing Editor Rutaba Ahmed Research, Distribution & Development Raza Tahir Mehfooz Aleem Creatives Kamran Rauf Umair Anwar Reprint In line with our mission, we encourage reproduction of material, provided tbl and content partners are given credit Publisher Asiatic Public Relations Network (Private) Limited Printed at Nikmat Printers, Karachi Disclaimer The views expressed in tbl are the authors’ and not necessarily shared by tbl and/or APR Declaration From the office of District Coordination Officer, City District Government Karachi NO.DCO/DDO/LAW/CDGK/109/2007, Karachi Dated May 22, 2007 Subscription, advertising and feedback at: tbl: Address: Tel: Fax: E-mail: Web: triple bottom-line A-7, Street 1, Bath Island, Clifton, Karachi, Pakistan. (92-21)-5837674, 5823334 (92-21)-5867103 feedforward@tbl.com.pk www.tbl.com.pk

features
9 letter
governance call

10 cover story
pakistan's water problems: do we care enough to act?

13 the state hearkens
rainwater harvesting

16 hydropower
water power in pakistan

26 eco-retreats & eco-models
teri gram ecological retreat

28 profile in sustainability
towards 'a truly water-sustainable business on a global scale' - coca-cola

31 crossword 32 csr in africa
csr and sustainable development in africa: water of life

36 csr: a reputational opportunity
corporate social responsibility: a reputation at risk

39 urbanization and cities
megacities, megaproblems, megasolutions

42 ethical consumerism
tackling the social impacts of consumerism today and not tomorrow

44 carrots only, no sticks 46 tbl ingress

the carrot-trousered philanthropist

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tbl sept-oct 08 1

acknowledgement
The tbl team expresses its profound gratitude to the companies whose names appear here, for their agreement to support this publication. Bringing out a knowledge-based publication like tbl involves considerable effort and costs. It may not have been possible to bring out tbl in its present format without the invaluable support and contribution of our Founder Sponsors. Through their support to tbl our Founder Sponsors have confirmed that they share our Mission of disseminating triple bottom-line knowledge to a diversified group including corporate, social development and general business groups. We believe that helping to spread awareness of true CSR is in itself an element of CSR. By becoming our sponsors, the following companies have taken that vital first step with us in our journey to facilitate awareness and understanding of true CSR in our country.
National Foods Limited Founder Sponsor

English Biscuit Manufacturers (Private) Limited Founder Sponsor

mr tbl
The term ‘Triple Bottom-Line’ (TBL), which translates into “People, Planet, Profits,” captures an expanded spectrum of values and criteria for measuring organisational (and societal) success - social, environmental and economic. Through our masthead we personify the term TBL. Essentially, our ‘bottom line’ is a grey bar with a burgundy border which runs through the masthead, at some points overlapping the letters and running under them at others. Here ‘t’ stands for triple and is represented through the three shades of the letter. The ‘b’ stands for bottom and it sits below our grey line with the line going through it - since this magazine is a below the line activity, the two gel in together. The ‘l’ stands for line and the letter sits comfortably on top of the grey ‘bottom’ line. Mr. Tanveer B. Lone is indeed a busy man, laden with his struggle for the truth in the Sustainability industry. His first name, Tanveer, according to our wonderful Ferozsons Urdu-English dictionary means 'illuminating'. We feel he is sometimes the seeker of enlightenment, and at others, the seemingly lone bearer. Driven towards his destination – the true light of CSR – he sometimes feels like a lone voice buried amidst the complex factors he confronts on the way. Yet as he sets forth, oft-alone on this journey, he knows he will meet companions along the sub-paths his journey takes, merging at destinations common with him. There will be occasions where we can all relate to him. At times, though his capitalist-training-bred financial focus may fluster us and his understanding towards disseminating the true implications of the triple bottom-line. Watch out for Mr. TBL, as he shares his views and thoughts in articles and other features in this issue! Feel free to share ideas with Mr. TBL that might help clear the oft-murky waters he'll encounter in his expedition at feedforward@tbl.com.pk

2 sept-oct 08 tbl

editor’s note

every drop counts
tarting off with our previous issue, our editorial team had decided to dedicate three consecutive issues to the three components of the triple bottom-line. Hence the previous issue focused on people and this one focuses on the planet. The next one, which will also be the last issue of the current calendar year, will be about profits and we will have a great 'profits' story to tell you. Not to be missed! Coming back to the current issue, what better subject to focus on than water - the element which gives Earth the title of the Blue Planet. Apparently the most abundant planetary resource, used with gay abandon, water is an input in practically all human activities, be it agriculture or industry or commerce or the home. But fresh water is only about 2.5 percent of all water on Earth and like most other natural resources, fresh water too is fast becoming scarce. The difference being that whereas one can still envisage life without coal or oil or gas or other minerals, life without water is inconceivable. Water resources are becoming scant so fast that, as many experts put it, future wars will be fought over water, not oil. The unfortunate reality of life is that the value of anything is only really appreciated when it is not available or when it is in short supply. And when it comes to the Earth's natural resources, including water, the even more unfortunate fact is that the people or nations who can do something about alleviating shortages are also the ones who not only consume these the most but who also seem to be least bothered to do anything about it at all. The corporate sector and especially industry has a dual role to play as far as water is concerned. On the one hand it needs to reduce its water consumption and on the other hand it needs to develop and employ new technologies to treat used water, to eliminate toxic substances and make it reusable for different purposes.

S

This issue includes a write-up about The Coca-Cola Company and its plans to become water neutral globally by year 2010. When you are informed that over a billion servings of Coca-Cola are consumed in the world every single day and when you are also told that besides the flagship brand Coke, the Company also produces about 400 other brands, you can well imagine the amount of water The Coca-Cola Company uses. Then, besides being the base for a number of brands, including Coke, water is also used by the Company for washing of glass bottles. So, if the Company has gone ahead and taken steps to become one hundred percent water neutral - put back as much water as it consumes - one needs to commend this. And one hope that other companies, across different industries and not only in the soft drinks business, will be similarly inspired to make their contribution to the preservation of what is ultimately the most valuable of all natural resources. At a personal level and at the risk of sounding clichéd, we need to remember that every drop counts. No one is going to tell you or me to save that drop every time we turn on the tap. Only our conscience will make the difference.

Sincerely,

Zohare Ali Shariff Editor in Chief

This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government, NGO sector, international institutions and academia. Recognising that your sphere of work has the potential to compliment and reinforce the essence of our mission, we have taken the liberty to present tbl to you. It is also available at selected outlets. We would love to hear from you. Please do contact us at feedforward@tbl.com.pk with your thoughts, feedback and input from your corporate or social practices. tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - of course we know you’ll give tbl the credit when you share our work.

tbl sept-oct 08 3

letters to the editor

T

he content and layout is excellent. TBL contains valuable content and material which will help corporate executives understand the dynamics of Corporate Social Responsibility (CSR) and also help them to apply it as one of the guiding principles in their organisations. I congratulate you on this wonderful initiative. Brigadier Maqsood Ahmad Afridi (Retd.)
Public Relations Department Fauji Fertilizer Company Limited Rawalpindi

I

have written for your publication since the March issue. Overall, I have to say that the publication is very good. It looks very professional and the articles are very interesting. Miriam Katz
Freelance Writer & Journalist Canada

Dear readers, Thank you for sharing with us your valuable comments and feedback. Mr. Afridi, we appreciate your thoughts on TBL. TBL is the key to the long-term competitiveness and success of our business community and will continue to serve as a platform for dissemination of triple bottom-line knowledge and tools. Mr. Ahmed, how encouraging to read your thoughtful, specific feedback. We're glad you enjoyed the interview. And pleasantly surprised to hear that to some, our content provides relief from the grueling battle for survival. Thank you! Do continue to interact with TBL. Ms. Katz, thank you for taking the time to write to us and for sharing with us your feedback on TBL. Ms. Shafi, thank you for your compliments on TBL and for your valuable suggestions. In future issues, we will continue to publish material on local firms and their CSR-related initiatives. We look forward to our readers' feedback and active contribution and we hope that over time TBL will become an important platform for the sharing of knowledge and best practices.

I

received my fourth issue of Triple Bottom-line and would like to compliment you on the wide range of good articles that you have been able to collect for your magazine, which has pioneered a new direction of thought. In these times of stress when the mind is focused on hard and tough nuts to crack, your magazine provides a cool diversion in the battle for survival which most of us are fighting these days. I remember along with the first issue you asked me for my comments which I put off for a later date and more issues, now your interview of Kerstin Dietrich in this latest issue has prompted me to felicitate you and acknowledge the good work being done. Sohail P. Ahmed
Chief Executive Thal Engineering Karachi

I

read TBL and had to write to commend you on an excellent effort. I would, however, like to read more on what local firms are doing and what public sector support is being garnered in this respect. Seemin Shafi
Head Corporate Communications Faysal Bank Limited Karachi

4 sept-oct 08 tbl

welcome on board
The tbl team is honoured to introduce our editorial advisory board. Comprised of diverse leaders and practitioners, our goal is that the board will steer our efforts to their highest potential. In each issue of tbl, we will highlight a member of our editorial advisory board. Ayesha Tammy Haq
Member

Corporate lawyer, legal and media consultant. Concurrently a freelance journalist and host of a weekly current affairs television programme. Based in Karachi.

Anwar Rammal
Chairperson

Chairman of Asiatic Public Relations (Private) Limited, Pakistan’s leading communications and PR agency, affiliated internationally with Hill & Knowlton. Also Chairman of JWT, Pakistan. Based in Karachi.

Habiba Hamid
Member

Founder of Saracen Consulting, a corporate governance and responsibility consulting firm. Currently articulating the Dubai Model of sustainable development. Based in Dubai.

Khadeeja Balkhi
Executive Member

Sustainability and CSR consultant and internationally experienced business and gender journalist. Based in Karachi.

Abrar Hasan
Founder Sponsor Member

Khawar Masood Butt
Founder Sponsor Member

Chief Executive of National Foods Limited, Pakistan’s pioneering multi-category food company. Innovative businessman and industry leader. Based in Karachi.

Khawar Masood Butt is Chairman and MD of EBM since 1985. He also serves as Chairman and MD of Sat Net, an Internet Communication Solutions Provider launched in 1999. An active member of various cultural and social entities, he is a life member of Layton Rehmatullah Trust, WWF, Arts & Crafts Institute, among others. He is also a member of the Institute of Directors, London. He played cricket at the national level from 1950 - 1960 and was selected to tour England as Vice Captain of the Pakistan Juniors Cricket Eleven in 1954.

Vivian Lines
Member

President and Chief Operating Officer of Hill & Knowlton’s Asia Pacific Region and concurrently President and CEO Southern Asia. Based in Singapore.

vision and mission

Vision: To steadily facilitate the germination of sustainable visions for organisational growth, sharing specific triple bottom-line knowledge and tools Mission Statement: To disseminate triple bottom-line knowledge to a diversified group including corporate, social development and general business groups primarily through a specialised journal, expanding in accordance with organisational capacity and market readiness

tbl sept-oct 08 5

global briefs

PEOPLE

Framework at GRI said that GRI will provide practical, hands-on guidance for reporting on gender issues through extensive consultations with GRI's global network. The new guide is intended for companies that want to establish themselves as leaders in managing gender issues. It will demonstrate the value of creating business opportunities for women, provide guidance on improving gender management through sustainability reporting, and help improve the quality and scope of gender reporting by including new categories such as "women as consumers," "women as entrepreneurs in the supply chain," and "women as part of the community." CSR TRENDS: A Practical, Indepth Tool for CSR Reports CSR TRENDS 2008, a practical and in-depth tool for organizations and practitioners, was released recently by Canadian Business for Social Responsibility (CBSR) and Craib Design & Communications. CSR TRENDS is an overview of trends and best practices in the ever-expanding field of corporate social responsibility reporting. It surveyed 75 Canadian and international reports and reviewed a larger group of 250 reports for best practices. Best practice reports: Address tough questions posed by stakeholder groups 91 percent of reporters described specific stakeholder engagement methods and 64 percent provided results or responses from engagement initiatives. Place their information in global context by using external guidelines - 71 percent of reporters used the Global Reporting Initiative (GRI) guidelines, while 20 percent used the UN Global Compact principles. Use the web effectively, including interactive time-

lines, maps, games, "create your own report" capabilities, and more. New reporters and those with years of experience will benefit from current case studies, statistics and useful visual examples in a number of areas of reporting. The CSR trends survey can help companies create a framework for their own reports. Environmental Crimes Rampant and Under-investigated, Report Says Environmental crimes such as illegal logging, trade in endangered species, illegal fishing, and trade in banned refrigerants are rampant and growing, according to a report from the nonprofit Environmental Investigation Agency. Organized crime networks are raking in over $10 billion a year through commission of environmental crimes, and national and international police organizations are doing little to stop them, the report charges. "Even if we bring intelligence to the attention of authorities, often the political will is not there," said EIA's Debbie Banks. "We really need to see environmental crime treated as seriously as narcotics and arms. At the moment, that's not happening." Some of the recent growth in environmental crimes is due in part to "the proliferation of international and regional environmental agreements, [which lead] to more controls on a range of commodities," the report says. "It is also due to mutations in the operations of criminal syndicates which have been diversifying their operations into new areas like counterfeiting and environmental crime.

IFC Partners with Global Reporting Initiative to Improve Corporate Reporting on Gender Issue A 12-month research and consultation project has been launched in September by IFC, a member of the World Bank Group, and the Global Reporting Initiative (GRI) to help private enterprises worldwide create new opportunities for women, adopt best practices in sustainability reporting, and improve their bottom lines. The project is expected to help develop a Gender Sustainability Reporting Resource Guide that will complement the GRI's innovative Sustainability Reporting Framework, the most widely used and recognized global framework for nonfinancial reporting. The GRI framework links elements of effective sustainability management systems with indicators that can drive continuous improvement of company performance. This project is part of a larger IFCGRI partnership to help companies adopt sustainability reporting as a tool for improving environmental, social, and business performance. The governments of Germany, Iceland, and Switzerland are lead sponsors of the project. Rachel Kyte, IFC Vice President for Business Advisory Services, said, "Adding a gender perspective to existing nonfinancial reporting frameworks will help private companies win recognition as diversity leaders by workers, investors and consumers." Sean Gilbert, Director of Sustainability Reporting

6 sept-oct 08 tbl

PLANET

thinking". Technology experts said it is an unexpected but clever solution. Microsoft is also looking into building a data centre in the cold climes of Siberia, and in Japan, Sun Microsystems, a technology firm, plans to send its computers down an abandoned coal mine, using water from the ground as a coolant. Sun said it could save $9 million (£5 million) of electricity costs a year and use half the power the data centre would have required if it were at ground level. Green Power for Mobile Programme in Developing World The Green Power for Mobile programme, an initiative of the GSM Association, will transition mobile phone towers which currently run on off-grid power to renewable energy. This programme will save about 600 million gallons of diesel. A news story on treehugger, the leading media outlet dedicated to driving sustainability mainstream, states that the end objective of this initiative is "to use renewable energy to power 118,000 mobile phone base stations - the sites that receive and transmit calls - by 2012. New and existing off - grid sites currently running on diesel generators will be targeted first. Powering these base stations with solar, wind or biofuel will save 600 million gallons of diesel fuel each year". The Green Power for Mobile programme has already begun in some places: The Pacific Island of Vanuatu has 17 stations running on wind or solar; 30 stations in Kenya are running on wind and solar. In Andhra Pradesh, India 350 stations are currently running on an 80/20 mix of diesel and waste cooking oil, but in the future this is expected to be a 50/50 mix, with sustainable grown biofuels replacing the waste cooking oil.

Greening the Internet A recent study by McKinsey, a consultancy firm, and the Uptime Institute, a think tank, predicts that by 2020 the carbon footprint of the computers that run the internet will be larger than that of air travel. Data centres consumed 1 percent of the world's electricity in 2005. According to Google, "computing centres are located on a ship or ships, anchored in a water body from which energy from natural motion of the water may be captured, and turned into electricity and/or pumping power for cooling pumps to carry heat away." The increasing number of data centres necessary to cope with the massive information flows generated on popular websites has prompted companies to look at radical ideas to reduce their running costs. The supercomputers housed in the data centres use massive amounts of electricity to ensure they do not overheat. As a result the internet is not very green. Google has announced plans to launch its own "computer navy" supercomputers which will enable operation of its internet search engines on barges anchored up to seven miles (11km) offshore. The "water-based data centres" would use wave energy to power and cool their computers, reducing Google's costs. Rich Miller, the author of the datacentreknowledge.com blog, stated that Google's computer navy solution is: "Really innovative, outside-the-box

In the Wake of The Hurricane.. Hurricane Ike left a big mess behind as it passed over Galveston, Texas, and other Gulf Coast areas, but the mess wasn't just from debris. Just as with Hurricane Katrina, the combination of destructive high winds and subsequent flooding have created a toxic soup that's potentially dangerous to residents, cleanup crews, and the environment. Floodwaters have mixed with gasoline, paints, household chemicals, and construction debris (some containing asbestos) to make an unpleasant, icky, potentially hazardous mess that could also cause respiratory problems when it dries into dust. "Quite frankly, we are reaching a health crisis for those that are remaining on the island," said Galveston city manager Steve LeBlanc. Plenty of standing water has also led to a boom in mosquitoes and the county has been asked to spray the area to kill the larvae. Hurricane Ike has also messed with area wildlife. Ike's storm surge helped turn some freshwater wetlands as far as 20 miles inland into salty marshes hostile to many freshwater fish, as well as other wildlife. "[The salt infusion] exasperates everything that needs freshwater," said Jim Sutherlin, superintendent of a Gulf Coast wildlife area. Algae blooms have also been a problem; caused by untreated sewage rushing into Galveston Bay after the storm, algae blooms have been sucking oxygen out of the water, leaving little available for marine life. Ike's high winds also shredded many mulberry trees that migrating birds depend on for fuel to cross the Gulf of Mexico.
Shared by Grist, an online environmental news magazine

tbl sept-oct 08 7

PROFITS

Recycled Messenger Bags Cut Costs Considerably The new Hewlett-Packard laptop "will be displayed on shelves wearing only the HP Protect Messenger Bag", at Wal-Mart. Scandalous! But actually, there's no need to avert your eyes: the HP Pavilion dv6929 is served up in a recycled, reusable messenger bag instead of a box, cutting cardboard and plastic packaging by 97 percent. Thinking outside the box helped HP win Wal-Mart's Home Entertainment Design Challenge, which judged suppliers' products on attractive design, environmental innovation, and less-wasteful, less-toxic packaging. Wal-Mart says 25 percent less truck space is now needed to schlep the computer to stores, cutting transportation costs by 31 percent. In addition, purchasers of the $798 laptop, which is available only at Wal-Mart and Sam's Club, can recycle an old PC for free.
Shared by Grist, an online environmental news magazine

The Department of Housing and Urban Development (HUD) currently spends more than $4 billion each year to pay utilities in government-assisted properties. Yet, these funds cover only a fraction of the families and individuals in need of financial help. In contrast, with an annual investment of $5 billion during a ten-year span to rehabilitate low-income homes, considerable gains can be made in energy savings, carbon reduction and cost savings to the renters and homeowners. CSRwire states that "the report recommends a comprehensive, 10-point plan that would, among other aspects, be able to: Build capacity to implement low-cost improvements; Ensure climate change legislation supports lowincome home energy efficiency; Green the revitalization of distressed public housing communities; and Incentivize major financial institutions to finance energyefficient very low-income homes. These recommendations would engage public-private partnerships to help overcome the market barrier of financing the cost of improvements. The points also offer suggestions for federal support to incorporate private capital investment such as credit enhancements and tax incentives as structures to diversify direct governmental spending". "A national commitment to bring home the benefits of energy efficiency to low-income families in their homes would save families money, cut carbon emissions and create hundreds of thousands of good green jobs, " said Stockton Williams, senior vice president and chief strategy officer of Enterprise Community Partners.
Shared by Grist, an online environmental news magazine

developed and emerging economies alike. An estimated 2 billion consumers worldwide lack access to basic financial services, including nearly 50 percent of citizens in new EU member states, 70 percent of the population in Mexico and places like Tanzania where bank account ownership rates dip as low as 5 percent. The Clinton Global Initiative (CGI) aims to deliver accessible, affordable and empowering financial services to at least 5 million consumers worldwide who do not currently have adequate access to financial products and services that meet their needs. CGI's objective is to direct resources and focus attention on improving access to financial services, a solution CGI views as key to alleviating poverty throughout the world. MPOWER Ventures, a socially committed venture fund, today announced a five-year commitment to the CGI. "This commitment keeps our mission in focus and the collective efforts of the MPOWER group of companies squarely aimed at the positive impact we seek to achieve by providing affordable and accessible financial services..." said Roy Sosa, founding partner, MPOWER Ventures. Innovations like prepaid debit cards have been a powerful solution for bringing unbanked consumers into the financial mainstream in the U.S. and Europe. The venture fund aims to develop more such innovative solutions and breakthrough products capable of reaching previously inaccessible markets and will bring underserved consumers around the world a broad range of financial services, including the ability to deposit and withdraw funds, transfer funds, make purchases and accept payments anywhere, anytime.

New Study Calls for National Commitment to Increase Energy Efficiency in Lowincome Homes An estimated 25 million lowincome families in America struggle with increased utility and energy costs due to inefficiently built housing. A new study by Enterprise Community Partners, 'Bringing Home the Benefits of Energy Efficiency to Low-Income Households: A Case for a National Commitment', calls for a national commitment to rehabilitate and retrofit low-income housing with energy-efficient features that will offer substantial financial savings for residents and ensure long-term gains in environmental and energy sustainability.

Pledge to Deliver Access to Financial Services Worldwide A pattern of exclusion from access to financial services persists around the world and surfaces in

Compiled by Rutaba Ahmed

8 sept-oct 08 tbl

letter

governance call

T

he Corporate Leaders Group on Climate Change (CLG) wrote a letter to the leaders of the UK's major political parties, to call for "transformational change" across the economy to meet the scale of the threat posed by climate change. The CLG brings together business leaders from major UK, EU and international companies who believe that there is an urgent need to develop new and longerterm policies for tackling climate change. The Group is developed by the University of Cambridge Programme for Industry and the Prince of Wales's Business and Environment Programme. The letter states that: "Climate change poses global social, environmental and economic risks and demands a transformational change in how we manage our economy. Incremental change will not do... We must deliver deep and rapid cuts in greenhouse gas emissions to mitigate severe climate change, and must adapt our economy, environment and infrastructure to cope with the climatic changes we are already predicted to face. The global economic downturn may cause some to question whether the UK can afford to act so boldly, but we believe that action cannot be delayed, and furthermore, that decisive action will stimulate economic activity and job creation in certain key sectors as well as reduce costs in the medium to long term." The group has recommended that the UK adopt a 'working assumption' that a legally-binding deal will be signed by all countries at the UN Framework Convention on Climate Change negotiations in Copenhagen next year, implying that "the European Union should cut greenhouse gas emissions by 30 percent by 2020, not 20 percent". The CLG offers strong support for The Climate Change Bill currently in Parliament as a "crucial framework for emissions reduction" but calls for an "urgent cross-party effort to develop a comprehensive package of policy measures to change every major sector of the economy". It describes some of the "key elements" of the package, including higher energy efficiency standards, support for low-carbon technologies and products, "bold new specifications" for public sector procurement and measures to deliver a robust carbon market. On this last point, the group supports the "progressive shift to auctioning of allowances" under the EU's Emissions Trading Scheme. The Corporate Leaders Group recognises that international action is needed to tackle "this global problem" but states that if the UK is to continue to offer credible and effective global leadership, "Government and business must now work together to demonstrate real change on the ground by delivering the new projects and practices that are needed to create a low climaterisk economy". In conclusion, the CLG, in its letter, emphasizes that: "Business and Government must now work together to ensure all parts of the country see the tangible change that is essential for climate change mitigation and adaptation. Full transformation to a low climaterisk economy will take several decades, but it will be the steps that are taken in the next five years that will be crucial if we are to meet the scale of the threat posed by climate change and to grasp the business opportunities created by moving to a low climate risk economy."

Quotes from members of the CLG on Climate Change
James Smith, Chairman of Shell UK said: "Tackling climate change is the pro-growth strategy for business. The technological solutions are broadly known. What we now need are projects to build a low CO2 energy system in the UK." Lucy Neville-Rolfe, Group Director of Corporate and Legal Affairs, Tesco said: "Consumers account directly and indirectly for 60% of carbon emissions. They are therefore key to achieving the revolution in green consumption needed if we are to move to a low carbon economy. Government and business are interdependent on climate change and we must work together to engage consumers - saving energy, recycling and conserving resources." Neil Carson, CEO, Johnson Matthey said: "Public procurement drives one third of the UK economy but, to date, attempts to 'green' procurement have largely failed. The public sector should be setting bold, new and sustainable specifications for the products and services it buys. These would help drive innovation and investment, and bring advanced products to the market, delivering real savings in carbon and saving money for both consumers and the taxpayer."

tbl sept-oct 08 9

cover story

pakistan's water problems:

do we care enough to act?

by simi kamal for tbl

Water pollution, discharge of effluents and unsafe drinking water are factors among others that pose a threat to human wellbeing and Pakistan’s ecosystem. While some do not have water to drink, others waste it in vast quantities. Witness the women carrying water on their heads for miles in the scorching heat on one hand, and crops under flood irrigation and the cars of the rich being hosed down in the cities, on the other.

10 sept-oct 08 tbl

Pakistan, A Water-Scarce Country
An arid country, Pakistan depends heavily on annual glacier melts and monsoon rains. Water from these sources flows down the rivers and out to the sea. En route, there are seepages into the ground, where water-bearing rocks or aquifers absorb and store this water. Most parts of the country receive scant rainfall and have little or no access to surface water. Pakistan Water Partnership (PWP) states that in Pakistan the total available surface water is about 153 million acre feet (MAF) and the total ground water reserves are approximately 24 MAF, of which a substantial part has been mined without allowing for natural recharge. Currently estimated at 160 million, the population of Pakistan is set to double in 2.5 decades. This means that the per capita availability of water will decrease. There is likely to be a net decrease, rather than an increase in the country’s water resources, due to a number of factors including population growth, climate change, and exploitation of water. By international standards, Pakistan was already a water-scarce country in 1992 at 1700m3 available per capita, according to UNFPA/Ministry of Population Welfare. By 2003, Pakistan’s per capita availability

managed irrigation. Unsafe drinking water is responsible for numerous diseases including dysentery, diarrhea, typhoid, cholera, malaria and gastroenteritis. UNICEF estimates that 200,000 children in Pakistan die annually due to diarrhoeal diseases alone. The Indus delta has been reduced to one partially active creek and there is no water flowing downstream of the Kotri Barrage for almost the entire year. Our mangrove forests, previously some of the largest in the world, have been reduced from 0.6 million acres to 0.25 million acres, said Simi Kamal and Jairath at the Asia Pacific Regional Consultation in Dhaka. The mix of sweet and sea water maintains a very critical balance in the coastlines. If that balance is destroyed, then the entire water system is affected and will, over time, be felt right up to the watersheds. Pakistan is dependent on a single river system and we cannot afford to take any more chances with the water/sediment/salt balance of the Indus Basin.

The Irrigation System of Pakistan
Pakistan has the largest contiguous irrigation system in the world. However, owing to the poor state of

Everyone understands that water is essential to life. But many are only just now beginning to grasp how essential it is to everything in life – food, energy, transportation, nature, leisure, identity, culture, social norms, and virtually all the products used on a daily basis.
World Business Council for Sustainable Development (WBCSD)

of water declined to the extent that it was categorized as a water-stress country by the World Bank, surpassing Ethiopia and on par with African countries such as Libya and Algeria. Pakistan is now a water-scarce country at 1200 m3 per capita per year. According to water specialist Simi Kamal, based on current projections, water availability (per capita) will be 855m3 by the year 2020. We have already used up everything that exists in our water cycle and we do not have additional sources of water to mobilize. When we say we are putting up another dam or reservoir, it doesn’t necessarily mean there will be additional water coming in; we are just re-appropriating what’s already in the system.

infrastructure, about two-thirds is lost due to poor transmission and seepage. This means that about 68 MAF is potentially usable water if the canal system is adequately repaired and maintained. Of the total sweet water availability of approximately 144 MAF, 97 percent is already used in agriculture. We have a situation where instead of improving farming methods to conserve water and increase productivity, agricultural landowners demand more water, only to maintain some of the lowest productivity rates in the world per unit of water and per unit of land. All debates on water conservation, however, are cuffed by the constant refrain on dams and water sharing among provinces. Safeguards are needed.

The Solution? Hrdro Problems
Our water resource base continues to be degraded because of pollution, atrophy, overuse of surface water and over-exploitation of groundwater. Large tracts of land have been rendered uncultivable due to water logging and salinity, direct results of misThe seeds of conflict on water in Pakistan, therefore, are sowed by nothing more than hydrology and this needs to be recognized. We cannot solve a very complex geographical, hydrological, economic and environmental problem through politicking. The discussion on water distribution, therefore, should

tbl sept-oct 08 11

The rain is plenteous but, by God's decree, Only a third is meant for you and me; Two-thirds are taken by the growing things Or vanish heavenward on vapour's wings: Nor does it mathematically fall with social equity on one and all. The population's habit is to grow in every region where the water's low: Nature is blamed for failings that are Man's, and well-run rivers have to change their plans.
Sir Alan Herbert

be in relation to uses and users, not among political or administrative units. This means, a discussion in terms of head, middle and tail farmlands in irrigated areas; and in terms of water for survival, subsistence and pastoral livelihoods in non-irrigated areas. Rainfed and arid areas should also be a part of the debate on water equity and water use. In addition, uses of water other than agriculture - for domestic use, for industry, for urban areas, and for the environment - should all be incorporated for a robust water policy for Pakistan. There is a need to recognize that just because certain water-related practices have gone on for centuries does not mean that they are allowed to continue in the face of a world in turmoil. We need to change the way we think about water, the way we use water and the way we dispose off wastewater.

you and I are the government; and at the level of a company or private enterprise, the heads are the government. The political process itself should hence be the will of the citizens. In the end, it is the amalgamation of policies, regulations, guidelines and actions that will help us solve water problems, which are likely to get more complicated due to climate change and environmental instability.

References Pakistan Water Vision, Pakistan Water Partnership, 2001, pp 5-6 Population Stabilization - A Priority for Development, , Government of Pakistan, 2003 Pakistan's Water Economy Running Dry, The World Bank, 2006, pp xiv - xv Detailed discussion available in Kamal S, Women and Water: Issues of Entitlement, Access and Equity, in Pakistani Women in Context, World Bank, Oct 2005, pp 79-106 Vision and Programme Document, Indus Delta Partnership, 2001, quoted in Kamal S and J Jairath, Addressing Water and Poverty at the Grassroots, Asia Pacific Regional Consultation, Dhaka, 2002, pp 4

A Collective Approach is Needed
Individuals and corporate citizens must engage with decision-makers across the board regarding rational and responsible use of water. Industries, agricultural industries and corporations must move to pollution control, micro-irrigation, recycling and reuse of water on bigger scales. Once these can be demonstrated, only then can the gigantic problems of wastage through the irrigation system and through leakages in municipal water supply be taken up. Our first hurdle is the unfortunate habit of laying everything at the door of "the government". But what is this government? At the level of the home,
12 sept-oct 08 tbl

About the Writer
Simi Kamal is an internationally known geographer and water specialist, who chairs many private and non-profit organizations, and is widely recognized for her researchbased contributions to water and environmental conservation, building collaborative stakeholder platforms and citizens' action groups, as well as fundraising and campaigning. She has over 480 reports, papers, book chapters, articles and handbooks to her credit.

the state hearkens

rainwater harvesting:
sustainable water supply solution in pakistan's mountainous areas?

he areas affected by the 2005 earthquake comprise some of the most idyllic places in Pakistan. However, life in these areas is becoming increasingly difficult, particularly in recent years due to the increasing scarcity of water. This has forced several people to even abandon their ancestral villages - something previously unimaginable for them.

T

by zaheer hussain gardezi for tbl

The earthquake further deteriorated the water supply situation, destroying over four thousand existing water supply schemes and affecting yields of water sources. It is estimated that the yields of these sources decreased by 40 percent due to the earthquake. The Earthquake Rehabilitation/Reconstruction Authority (ERRA) took up the responsibility of reconstruction and rehabilitation of the affected water supply schemes. And the herculean task was undertaken on war footings in collaboration with development partners and affected communities.
Water Harvesting Pond for Livestock - Muzaffarabad, Azad Jammu Kashmir

tbl sept-oct 08 13

Sustainable Solution to Water Scarcity ERRA realizes that rebuilding the affected water supply schemes, even when new structures surpass the old structures in terms of quality and reliability, is not the solution to the acute water scarcity in this region. What are needed are innovative structures that ensure a sustainable supply of water. As more than 90 percent people live in scattered rural hamlets, huge projects relying on lifting water from large water bodies lying thousands of feet below in a valley or water sources high on the mountain tops provide neither viable nor cost-effective solutions. Huge promise lies in rainwater. The earthquake affected areas receive an average rainfall of 1,500 millimetres, higher than in any other part of Pakistan. Even if a small fraction of this rainfall is harvested, this can significantly help overcome the problem of water scarcity. The rooftops of the new houses, constructed under ERRA's Rural Housing programme, are made of CGI sheets. Rainwater flowing down these sheets is clean and safe for human use after harvesting. The residents here are familiar with the concept of rainwater harvesting (RWH). Till twenty years ago, each household in these areas would have a small pond at its disposal. These small reservoirs, which stored rainwater, were an important pillar in the livelihood of the farming families as they provided water for

irrigation and for the drinking needs of farm animals. However, water stored in these ponds was not considered fit for human consumption. RWH in Northern Pakistan provides a plausible alternative and supplementary source of water in this situation: where existing water sources are fast depleting. ERRA has decided to provide a sustainable and alternative solution by reviving and developing the age old practice of rainwater harvesting. The WatSan Programme at ERRA estimates that no less than 90,000 litres of water (20,000 gallons) can easily be collected every year from a small house of roof-size 30 feet by 11 feet. RWH Success Pillars There are three basic components to rainwater harvesting: catchment, gutters and pipes and a storage system. The CGI sheet roof serves as an effective catchment surface. Rainwater flushes quickly and the accumulated water is quite clean, compared to other roofing systems. It can then be stored in water storage containers or can even be charged into aquifers through any structure like dug well, percolation well, boreholes, recharge trenches or water ponds. Proper care while collecting water through sloping roofs yields high benefits. It is estimated by ERRA that around 10 to 15 percent of the water is utilized as drinking water while 85 to 90 percent is used

for daily washing, bathing and other activities. RWH benefits include: Supplementing the existing water schemes and providing water facilities in the most decentralized manner. The provision of an ample water supply for domestic use will promote better sanitation-related practices. Plans to Extend RWH for Domestic, Agri Uses In accordance with its BuildBack-Better Policy, ERRA has prepared a plan to popularize rainwater harvesting for domestic as well as agricultural purposes. Under this programme, 50 union councils facing acute water shortage will be supported to set up rainwater harvesting structures. A comprehensive project worth Rs. 761 million has been prepared for this purpose. Having received approval from the ERRA board, project papers have been forwarded to the Executive Committee of National Economic Council (ECNEC) for approval, and the project has passed the first tier of approval. The Planning Division of Pakistan has greatly appreciated this initiative and assured mobilization of resources for timely implementation of the project. ERRA has shared this idea with all its partner organizations in the WATSAN sector. Donors and doers both appear quite keen on supporting ERRA in transforming this dream into reality.

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Springs on Rooftops
Situated on the top of a mountain, the idyllic village of Chitrah Topi is located 17 kilometres from the city of Bagh in Azad Jammu and Kashmir (AJK). As residents of this village testify, living on a mountain top comes at a price. "A mountain top is not an easy place to live, because water flows downstream and you do not find many springs or streams flowing down your way," explains a resident. Until a few months ago, two thousand residents of Chitrah Topi, particularly women, faced a difficult situation. As gendered division of labour ordains, almost the entire burden of ensuring domestic water supply fell on the shoulders of women, or, literally speaking, on their necks. Women had to walk four to five kilometres every day to fetch water, an ordeal that could take up to eight hours, everyday. Some donkey carts brought water to the village, charging Rs. 30 to 40 for a 5-gallon container. But buying water was not an option for most residents of this low-income mountain village. This situation worsened as a result of the October 2005 earthquake, as most water sources in the area dried up or changed their course, making it even harder to attain water for domestic consumption. It appeared that there was no end to this problem, until ERRA introduced the rainwater harvesting project in the village through its partner organization, the Maqsood Welfare society. As a result of ERRA's initiative to promote RWH in earthquake affected areas, the society was able to obtain funding from Oxfam GB for a pilot project in Chitrah Topi village. Apart from two schools and a large mosque, a list of 25 houses was drawn for supporting construction of rooftop rainwater harvesting facilities. The project, which started about four months back, benefits apart from residents of these houses, more than 470 children and teachers of two schools and a large section of community visiting the Jamia Mosque for prayers. Soon after completion of the project, the heavy monsoon rains poured down from the skies. Residents of the village discovered that there were springs flowing from the rooftops. Once harnessed, these springs ensure safe and clean water. As a result of the project, women have been freed from the drudgery of carrying water everyday and people are growing kitchen gardens in their homes. For the school children, toilets have been made useable for the first time. "Life has changed for the 200 girls studying at our schools. The lack of toilet facilities discouraged girl children from studying and it made life miserable for the teachers as well. Thanks to the new RWH facility, we now have safe and fresh water available for all of our needs," says Haleema, a teacher at Government Girls High School at Chitrah Topi.

Water Scarcity: A Problem of The Past
Hullar Syedan, a picturesque village in district Bagh, AJK is one of the places where the practice of rooftop RWH emerged and evolved, in response to people's needs. Fifteen years ago, the villagers faced severe water shortages. The village had some communal wells, which were kept locked and elderly women were made custodians of these keys to ensure equal distribution of water among the village residents. The villagers also had four ponds built, generations ago. These ponds were used to store rainwater and were cleaned every year. However, these ponds and wells used to dry up if it did not rain for a month or so. When this happened, the villagers had to take their cattle to distant places for grazing and watering. The women used to carry water from streams located miles away. In the 1970's, many people from these villages moved to the Middle East for better employment. This resulted in improved economic situation by 1980 and people built houses with sloping roofs. Upon their own initiative, villagers started collecting water coming down from the rooftops in cans and pots. In a few years, all houses with a sloping roof had a water tank and toilet. These tanks could store a large volume of water. Periods of drought saw them using their water carefully so that supply could last till the next rainy season. In 1996, with the collaboration of the local government of Azad Kashmir, a large water pumping scheme was completed with the capacity to provide water to 2,500 people. The residents are running the water supply scheme on a self-help basis. They have set up a committee for the maintenance of the water supply schemes. Every household makes a monthly contribution to keep the system running. Along with this scheme, people are still using RWH to augment their water supplies. During the months of rain, pressure on the water supply decreases as people switch to the water collected through RWH. Water scarcity is now a problem of the past.

About the Writer
Zaheer Hussain Gardezi is Director, WatSan Programme, Earthquake Rehabilitation/Reconstruction Authority (ERRA), Islamabad. He has over 18 years of experience in community-based physical infrastructure and social sector projects in the areas of rural water supply and sanitation. His valuable experiences include working with multiple community-based organisations to plan and design cost-effective basic infrastructure development schemes.

tbl sept-oct 08 15

hydropower

water power
in pakistan

by miriam katz for tbl

W

ith the realities of climate change and the depletion of fossil fuels, renewable energy is now in the spotlight. Currently, wind and solar power have been in the news, but there are also many other sources of energy that would benefit the environment and the developing world. These sources include wave and tidal power in addition to small hydro. In China and India, small hydro is quite popular and there are also a few projects in Pakistan; however, the government could do much more to promote water power. This article will first examine wave and tidal power with reference to its applicability in Pakistan. This will include an analysis of the history of these technologies, the conditions needed for successful projects and the benefits and drawbacks. The second part of the article will look at
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small hydro and why it is the best option for Pakistan at this time. Wave and tidal power are good technologies; however, the benefits of small hydro are much greater, especially for Pakistan's developing economy. An Explanation and History of Wave Power Many companies have developed different ways of using wave power, but the two basic principles behind the designs remain the same. The first design involves the waves moving into a chamber where the water rises and falls. At the top of the chamber, there is a hole out of which air is forced, which drives a generator. The other type of design involves a long tube with hinges, which moves up and down due to the motion of waves. This motion moves hydraulic fluid, which drives a generator. A power cable then moves this electricity to where it is needed. The first design was used for the very first commercial wave power station, which is situated on Islay island in Scotland. This project began producing power in November 2000 and provides enough power for 400 homes, according to Nayyer Alam Zaigham, Professor & Director, Institute of Environmental Studies, University of Karachi. The second design was used for the Pelamis, which was also developed in Scotland, but the first project will soon be installed off the coast of Portugal. The Pelamis produces enough energy for 1500 Portuguese homes, as can be found using the Pelamis wave energy converter. Pelamis was developed by the student of Professor Salter at the University of Edinburgh. Wave power began in France in 1799 with a patent that used wave power to drive heavy machinery; however, it was not until the 1970s when wave power was taken seriously. At the University of Edinburgh, Prof. Salter devel-

oped what is known today as Salter's Duck. Salter's Duck looked like very large boxes that were attached to the ocean floor. As the waves moved them back and forth, the mechanical energy became electrical energy, which drove a generator. Salter's Duck was able to capture 90 percent of the wave motion and 90 percent of that could be turned into electrical energy, which is very impressive. In addition, at the time the Duck was completed, the cost of the electricity was the same as nuclear power; however, the nuclear power industry was able to lobby the government to cancel financial support for wave power in 1982, as stated in an article on Economist.com. This set back the cause of wave power for many years; however, other forms of energy such as tidal have shown promise. Tidal Power Tidal power is potentially very useful because tides are very reliable. However, only 40 sites in the world have been found that are suitable because there must be a five meter difference between high and low tides. There are two types of tidal power stations: the first is built across an estuary and looks similar to a dam. Inside the dam, there are tunnels that the water passes through. The water then turns a turbine. The other type of tidal power station looks like underwater wind turbines, but the size is usually limited to 25 to 50 megawatts (MW), according to the Pembina Institute which works to advance sustainable energy solutions in Canada. The largest tidal power station was built in northern France in 1966 and it produces 240 MW of electricity. Benefits of Wave and Tidal Power Wave and tidal power have many benefits. A 40 MW wave power station, which is being proposed

off the coast of Cornwall, England, will save 300,000 tons of carbon dioxide over 25 years. In addition, the net potential for both wave and tidal power is greater than wind and solar because water is 850 times denser than wind, which pushes the turbines faster, according to the Ocean Energy Council (OEC). Also, because many cities are situated in port areas, the power can be used right where it is needed. This is important because, as electricity moves through transmission systems, some of the power is lost and cannot be recovered. Both tidal and wave power are fairly inexpensive to maintain and tidal power is very predictable. Tidal power cannot harm any marine life because underwater animals can often sense turbine movement and their sound. In addition, because tidal power requires a high current, there will never be any animals feeding in those areas because plants cannot grow. Challenges of Wave and Tidal Power Wave and tidal power also have many challenges that need to be resolved in order for these types of powers to be successful. Generally, the best waves are situated in temperate zones, which means that Pakistan is not suitable for wave power. This is because west winds are often found in the temperate zones, which are the best for wave power. Also, strong winds over large areas as well as a location near the continental shelf are much more favourable for wave power because it ensures a disparity between wave height and wave length. Sites such as these are very rare, as mentioned above. Wave power is also much younger than wind or solar power and the cancellation of the UK wave power programme did not aid that. The

tbl sept-oct 08 17

fact that wave power is young also means that the power generated costs more than other sources of power. Currently, wave power costs approximately 7.5 cents per kilowatt hour (kWh) compared to 3 cents for natural gas, according to the OEC. Tidal power also faces many challenges. One of the main problems is that shore birds depend on the tide to uncover mud flats in order for them to feed; tidal power changes this quite drastically. The cost of tidal power per kWh is 12 cents, which is quite high. This cost would take many years to recover, which is not attractive for the developing world. Lastly, according to the OEC, tidal power has a very low capacity factor of 20 to 35 percent whereas nuclear power stations experience a 90 percent capacity factor, says E. Michael Blake in an article published in the Nuclear News magazine of the American Nuclear Society. Thus, although nuclear power is a more questionable energy source, capacity factor is very important because if the capacity factor is higher, it ensures that power will be produced more frequently. The reason why tidal power has such a low capacity factor is that tides are only predictable for part of the day and thus, there is no constant supply of energy. Small vs. Large Hydro Due to the challenges just mentioned, Pakistan is not suitable for wave and tidal power. However, Pakistan has had some experience with small hydro and there is a continuing interest in the technology. Currently, Pakistan has 108 MW of small hydro, which consists of nine projects. There are also 10 MW under construction and 180 MW planned, according to the International Energy Agency. However, Pakistan has the potential for 46,000 MW of hydro-

electricity, which includes large and small installations; at present, only 6459 MW are installed, states engineer Abdul Waheed Bhutto. Furthermore, he states that many people now realize that large dams are not suitable for the environment, economy and people because dams cause the flooding of villages and towns, which means that the government must spend money to resettle people; the Kalabagh dam, for example, will cost the government Rs. 2 billion in resettlement costs. In addition, because reservoirs often contain decaying biomass, greenhouse gases are emitted. Large hydro is often accompanied by corruption, which is discussed in the next section. Forms and Effects: What Corruption in Hydropower Looks Like Grand corruption can occur in the form of bid-rigging and illicit payments, which are often

disguised by channeling them through agents or subcontractors. Irregularities with environmental impact assessments can arise during the planning phase. In India, an accounting firm commissioned to conduct an EIA for two dams was caught in 2000 copying large sections of an EIA for another project 145 kilometers away. After a civil society watch group spotted the plagiarism and posted the information on its website, the contractor said it would rewrite the document. Vulnerabilities continue during project operation and maintenance. These can include corruption related to service access and provision, misappropriation or misuse of fees, illegal connections, failure to honour social and environmental mitigation commitments, patronage and abuse of funds in resettlement activities, and failure to honor benefit-sharing. If these vulnerabilities were addressed, the bene-

Why fighting corruption is a long-term interest of all stakeholders
STAKEHOLDER GROUP Electricity consumers CORROSIVE EFFECTS OF CORRUPTION Less affordable and reliable electricity Less access for the poor Slower pace of service expansion More high-impact or ‘bad’ projects Higher adverse livelihood impacts and impoverishment risks Fewer funds for compensation, mitigation and benefit-sharing Fewer mitigation commitments for sustainable management Higher costs of bulk energy or own supply Higher borrowing and equity costs Less money for service expansion and improvement Delayed, overpriced or expensive infrastructure Higher power sector costs Higher repayments for sovereign loans or guarantees Setbacks for social policies Slower economic growth and job creation for projects that depend on improved electricity service No level playing field for fair competition Approvals procured through bribes can be rescinded, terminating the project Disqualification from office or criminal prosecution Distorted and unfair competition Higher and wasted tender expenses Approvals procured through bribes can be rescinded, terminating the project Criminal prosecution, fines, blacklisting and loss of reputation Financial loss

Impacted communities

Electricity utilities

Governments

Public hydropower developers/ operators and IPPs

Contractors and equipment suppliers

Source: Global Corruption Report 2008, Transparency International

18 sept-oct 08 tbl

fits that would flow to people and the environment would be considerable. Direct cost savings may start at US$ 5-6 billion annually if contractor bid prices decreased by 10 percent, which was suggested by Transparency International. If corruption leads to cost overruns that eat into funds originally earmarked for maintenance, proper functioning may be put at risk, reducing the long-term benefits. Corruption can also hamper the expansion of electricity ser-vices in developing countries by driving up costs, delaying projects and lowering service quality and reliability, especially in rural areas considered low priorities. The table, printed in the Global Water Corruption 2008 report by Transparency International, summarizes the impact of corruption on hydropower. How Small Hydro Works Most small hydro systems work on the same principle known as run of river. One of the main benefits of this is the absence of a reservoir, which means no towns are flooded. The water at the high point of the river is fed through a pipe, which turns a small generator. After this, the water re-enters the river, which means that there are no environmental consequences and the system needed is fairly small. These systems last for about 25 years and very little maintenance is needed. Small hydro has three different categories: pico, mini and micro, which are below 5 kilowatts (kW), 1 MW and 100 kW respectively, explain Taylor, Dr. Upadhyay and Laguna (Project Manager, European Small Hydro Association) in a review on small hydro in developing countries published on Renewable Energy World. Vietnam is one of Asia's leaders in pico hydro where a 300 watt unit

costs $20 and produces enough power for one family. Benefits of Small Hydro Small hydro has many benefits, both for the environment and for Pakistani society. Small hydro produces no greenhouse gas emissions after it is built. In addition, unlike tidal power, the ecosystem is not adversely affected. Pico hydro only requires a 1-metre drop in height, which means the technology is guaranteed to work more of the time than wave power, which depends on very large waves. With regards to society, small hydro guarantees that there will be electricity available more of the time, which means that children can study at night and women can also make handicrafts for markets, which gives them more economic power in society. In addition, women are given even more free time because they do not have to collect firewood anymore. Pakistan can also benefit from the experience and knowledge of its neighbour India, which has 1694 MW of small hydro installed. Lastly, it is very important to note that many people in rural Pakistan do not have electricity and small hydro is very well suited to many of these areas because it does not have to be connected to the grid. Another option is to build grids that only cover one village or town, which is a very popular option in China, India and Vietnam because small hydro can easily be connected to this type of grid, state Taylor, Upadhyay and Laguna. Thus, small hydro is by far the best option available for Pakistan due to the presence of many rivers, the environmental and societal benefits as well as the drawbacks of wave and tidal power. It is now up to the government to put in place policies that

would allow people to purchase these systems cheaply. If Pakistan is able to independently produce power, this would greatly increase the number of jobs and the benefit to society.

References Nayyer Alam Zaigham and Zeeshan Alam Nayyer "Prospects of Renewable Energy Sources in Pakistan" <http://www.energy.com.pk/RenewEnerPak istanNAZ.pdf> Wikipedia "Pelamis Wave Energy Converter" <http://en.wikipedia.org/wiki/Pelamis_Wave _Energy_Converter> The Economist "The Coming Wave" <http://www.economist.com/search/displaystory.cfm?story_id=11482565> Pembina Institute "Energy Source: Tidal Power" <http://re.pembina.org/sources/tidal> Ocean Energy Council "Wave Energy" <http://www.oceanenergycouncil.com/index .php/Wave-Energy/Wave-Energy.html> E. Michael Blake "U.S. Capacity Factors: A small gain to an already large number" <http://www.ans.org/pubs/magazines/nn/do cs/2007-5-3.pdf> International Energy Agency "International Small Hydro Atlas: Pakistan" <http://www.smallhydro.com/index.cfm?Fuseaction=countries.country&Country_ID=60> Abdul Waheed Bhutto "Small Hydro-power Units for Remote Villages" <http://my.reset.jp/~adachihayao/060829M. htm> Simon Taylor, Drona Upadhyay and Maria Laguna "Flowing to the East: Small Hydro in Developing Countries" <http://www.esha.be/fileadmin/esha_files/d ocuments/publications/articles/REW_061_Laguna.qxd.pdf>

About the Writer
Miriam Katz is a freelance writer based in London. She currently writes for the Environmental Peace Review. Her areas of interest include environmental issues, renewable energy, biofuels and climate change. She holds a Bachelors in Arts degree in Political Science and Environmental Studies from the University of Toronto. She can be reached at m.il.katz@gmail.com

tbl sept-oct 08 19

report: global water corruption

water and corruption:
a destructive partnership
report by Transparency International

he Global Corruption Report 2008 is the first report to assess how corruption affects all aspects of water - and reflects on what more can be done to ensure that corruption does not continue to destroy this basic and essential resource, one that is so fundamental to the lives of people all over the planet. This report shows that the corruption challenge needs to be recognised in the many global policy initiatives for environmental sustainability, development and security that relate to water.

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Putting lives, livelihoods and sustainable development at risk Nearly 1.2 billion people in the world do not have guaranteed access to water and more than 2.6 billion are without adequate sanitation, with devastating consequences for development and poverty reduction. In the coming decades the competition for water is expected to become more intense. Due to overuse and pollution, water-based ecosystems are considered the world's most degraded natural resource. Water scarcity already affects local regions on every continent, and by 2025 more than 3 billion people could be living in water-stressed countries. In developing countries, about 80 percent of health problems can be linked back to inadequate water and sanitation, claiming the lives of nearly 1.8 million children every year and leading to the loss of an estimated 443 million school days for the children who suffer from water-related ailments. This Report argues that the crisis of water is a crisis of water governance, with corruption as one root cause. Corruption in the water sector is widespread and makes water undrinkable, inaccessible and unaffordable.
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Water: a high-risk sector for corruption This Report draws some preliminary conclusions about why water is especially vulnerable to corruption. Water governance spills across agencies. Water management is viewed as a largely technical issue in most countries. Water involves large flows of public money. Private investment in water is growing in countries already known to have high risks of corruption. Informal providers, often vulnerable to corruption, continue to play a key role in delivering water to the poor. Corruption in water most affects those with the weakest voice. Water is scarce, and becoming more so.

Urgent action is needed to mobilise all stakeholders to develop practical ways of tackling corrupt practices in the many and varied parts of the water sector. This is the central message of the Global Corruption Report 2008.

process and enforcement of water policies are manipulated to favour the interests of a few influential water users or service providers at the expense of the broader public. Typically there are three sets of corrupt interactions: Between public officials and other public officials. This includes corrupt practices in resource allocation. It can also involve using bribes to determine the outcome of personnel management decisions such as payments to individuals for transfers and appointments to lucrative positions. Between public officials and private actors. This includes forms of bribery and fraud that occur in relation to licensing, procurement and construction. Collusion or bid-rigging is typical of tendering processes in developed and developing countries and involves both international and national actors. Between public officials and users/citizens/ consumers. These practices, known as administrative or petty corruption, enable poor and non-poor households, farmers and other users to get water, get it more quickly or get it more cheaply. The series of corrupt practices in the sector extends from policy capture, to large and small publicprivate transactions in construction and operations, to interactions at the point of service delivery, which together can be plotted on a water 'value chain'. The framework shown in table 1 highlights these three sets of interactions in terms of the functions of the water sector: a cycle of policy-making and regulation, budgeting and planning, financing, programme design and management, tendering and procurement, construction, operation and maintenance, and monitoring and enforcement functions. The corruption risk map provides a framework for identifying these stakeholder incentives, potential conflicts of interests and the points along the water value chain that are most vulnerable to capture. The impact of corruption: putting billions of lives at stake The impact of corruption can be described in financial, economic, environmental and sociopolitical terms, and can also involve issues of security. Financial Weak governance and endemic corruption exact a social impact that financial calculations can never estimate. The barriers to access fall disproportionately on the poor in all regions. Chronically low levels of access are found among poorer households and, accordingly, many households find ways - often

The global water crisis: a crisis of governance The story of corruption in the water sector is a story of corruption in resources and services vital for life and development. It is also the story of a sector in crisis. Each year millions of people die of waterborne diseases because access to safe drinking water and adequate sanitation has not been prioritized. In 2004 more than 1 billion people lacked access to safe drinking water and 2 billion did not have access to adequate sanitation - and, despite successes in many regions, the population without access to water services is increasing. Corrupt practices exacerbate these gaps, removing investment that might be used to extend services to the poor, diverting finance from the maintenance of deteriorating infrastructure and taking cash from the pockets of the poor to pay escalated costs and bribes for drinking water. At the heart of these failures is the crisis of governance in water - a crisis in the use of power and authority over water and how countries manage their water affairs. And yet, despite the imperatives of water for citizens' livelihoods and a country's growth, water governance has not been prioritized. Institutional dysfunction, poor financial management and low accountability mean that many governments are not able to respond to the crisis, and weak capacity and limited awareness leave citizens and non-governmental organisations (NGOs) in many countries unable to demand change. The nature and scope of corruption Corruption - the abuse of entrusted power for personal gain - can be found in a vast range of interactions at all levels and in all aspects of the water sector. When bureaucratic or petty corruption occurs, a hierarchy of public servants abuse their power to extract small bribes and favours. A water meter reader offers to reduce a customer's bill in return for payment or a utility official only responds to water service complaints when favours are traded. When grand corruption happens, a relatively small cadre of public and private sector actors are involved and the rewards are high. For example, public funds for a rural water network are diverted into the pockets of ministry officials or a large dam construction contract is captured by a group of colluding companies. When state capture occurs, the decision-making

tbl sept-oct 08 21

creative ways - of obtaining water informally. They vary the sources from which they obtain water and pay higher prices when they can afford it. The poorest households in countries such as El Salvador, Jamaica and Nicaragua spend more than 10 per cent of their income on water while their cohorts in rich nations such as the United States pay only a third as much. Economic Poverty is multidimensional and household costs are not all financial. Whether poor households engage in corrupt transactions or not, they suffer due to the inefficiencies that corruption produces. Where corruption removes or increases the costs of access to water effects can be measured in terms of lost days, human development and lives. Close linkages have been found between access to safe water and infant mortality, girls' education and the prevalence of waterborne disease. Water is also a key driver of growth, being an indispensable input to production (in agriculture, industry, energy and transport). Currently, the extremely low levels of hydraulic infrastructure and limited water resources management capacity in the poorest countries undermine attempts to manage variability in water availability. Water reservoir storage capacity (per capita) in countries such as Morocco or India is less than one-tenth of the volume that Australia has in place. Corruption reduces the levels of investment in infrastructure, reduces resilience to shocks and undermines growth. Environmental The impact of corruption in water can also be environmental. The lack of infrastructure for water management whether man-made (e.g. dams, inter-basin transfers, irrigation, water supply) or natural (e.g. watersheds, lakes, aquifers, wetlands) in developing countries presents a management challenge almost without precedent. The ever-increasing impact of climate change and the lack of human and financial capacity to manage the water legacy result in far greater shock in developing countries, making the poorest countries ever more vulnerable. Corrupt practices that increase pollution, deplete groundwater and increase salinity are evident in many countries and are closely linked to deforestation and desertification across the globe. Stemming the leakage of funds from the sector is vital to address these issues. Sociopolitical The importance of water - on health, poverty, development and the environment - underscores how it is fundamentally linked to questions of power and security. Corruption can turn the control of water into a force that aggravates social tensions,

political frictions and regional disputes. The drivers of corruption Government institutions are not well structured to deal with these informal water providers or the forms of bribery that develop. Another driver of corruption in the water sector is related to the fact that the demand for accountability is very limited in developing countries. The existence of state and non-state actors, systems, service levels and institutions creates a highly complex sector. The lack of clarity in the roles and responsibilities of all these stakeholders results in a lack of transparency and accountability and, inevitably, in a severe asymmetry of information between user, provider and policy-maker. In addition, water has many linkages to other sectors that are particularly vulnerable to corruption. As part of the high-risk construction sector, water displays the resource allocation and procurementrelated abuses which arise when the public and private sectors meet. As water services and resource management is one of the functions of a country's administrative or civil service, the sector also confronts a different set of obstacles: low capacity, low wages, lack of clear rules and regulations, and dysfunctional institutions. These conditions make it susceptible to the common practices of fraud, bribery, embezzlement and favouritism. Understanding the channels where corruption can occur helps in its prevention. Mapping makes it possible to identify 'hot spots', in a particular context, where corruption tends to concentrate along the water value chain framework shown in table 1. Ultimately, however, corruption scenarios play out very differently in different contexts. Political regimes, legal frameworks, the degree of decentralisation, regional disparities, power relations, cultural norms and levels of accountability (for example, between state and civil society) will influence the patterns and risks.

The Global Corruption Report 2008 is by Transparency International, a global civil society organisation leading the fight against corruption. It is edited by Dieter Zinnbauer and Rebecca Dobsan.

22 sept-oct 08 tbl

tbl sept-oct 08 23

social partnership

pani ghar
case study of a social enterprise
by ali salman for tbl

A pseudonym 'Paniwala' (PW) has been used to disguise the identity of the leading entrepreneur behind 'Pani Ghar', a social enterprise established two years ago to provide safe drinking water at affordable prices. The social enterprise as a company was wounded up while the pilot outlet still functions in Lahore.

Mr. Paniwala (PW) looks back to a year ago when his negotiations with a major international social venture fund were almost finalized, before they suddenly collapsed and so did his dream to start a revolutionary social enterprise for providing safe drinking water to the poor in a financially sustainable way.

Background Potable water in Pakistan is polluted, and the health situation is getting worse. This has been confirmed by National Water Quality Monitoring reports issued by the Pakistan Council for Research in Water Resources (PCRWR). Keeping this in mind, many companies have launched bottled water. However, they are catering to the rich. A liter of bottled water costs Rs. 22; in jumbo packs of 19 liters, this price drops to Rs. 6 per liter: still a price, which the poor and lower income groups cannot afford. The Economist (November 9, 2006) estimates that the spending on drinking water by an average household does not cross over 5 percent of their monthly income. It translates into the fact that to afford clean drinking water through bottled water companies, the monthly household income should be more than Rs. 50,000; whereas according to the Economic Survey of Pakistan, the per capita income of Pakistan is $850 or Rs. 4,250 per month as per 2006 prices. Pani Ghar: Beginning of an Idea Concerned about the water situation (for example, lack of potable water) in poor communities, Mr. PW began to think of ways to

provide this precious resource water - at a large scale to the poor in a for-profit business model. He thus analyzed various options including the government expenditure and compared household costs per annum.

Investment Per Household (Rs.) Household Filters Pani Ghar Government Plants Bottling Company 18,000

6,000 8,464

43,200

Assumption: Everything else equal, the above table compares household costs for each option.

Next, PW undertook professional market research to estimate the demand of drinking water in specified locations while keeping a price point of Re. 1 per liter. The market research yielded several insights and confirmed that a sizable demand exists at the community level for buying clean drinking water regularly. Once

24 sept-oct 08 tbl

PW had determined the demand level in these areas, he explored technologies available in the market. His purpose was to find a 'medium size ultra violet filtration plant, which could be placed in an exclusive shop and could supply water to a community of around 1,000 households'. Competitive Analysis PW also conducted a competitive analysis. He identified that household filters pose an immediate threat to his idea. But his research exposed the inadequacy and uselessness of these filters. Many target customers opt to use boiled water; however, boiling water is recommended only for emergencies and scientifically proven to be counter-productive, if used regularly. A lowcost technology is water purifying crystals. However, while this technology may satisfy social concerns, it does not satisfy commercial requirements. The government has spent 12 billion rupees in its project 'Clean Drinking Water for All'. The project aims to install more than 6,000 filtration plants - one in each union council of the country - by the end of 2008. Only 600 were installed and this project has unfortunately taken the well-known downward trajectory associated with most government-run projects. Pani Ghar: Commissioning Phase PW identified a local manufacturer of water filtration plants, who had developed a prototype. This, for PW was a dream come true. PW signed partnership agreement with him and a company was established: Pani Ghar. Much to the disappointment of this young entrepreneur, a year later, this would prove to be the beginning of an end. PW assumed charge of this business and managed the sales, operations and quality of the outlet. He also conducted a rapid assessment of Pani Ghar.

Unanticipated Problems in Pani Ghar and PW's Strategy Pani Ghar was located on Multan road in Ittefaq town, a congested urban area near Mansura, Lahore. Although this outlet was operational for almost a year, the number of customers was low. The management faced various unanticipated problems. These problems included unwillingness of people to buy 'uncertified water', slow sales, poor marketing, lack of monitoring and competition from household filters. When PW assumed charge of Pani Ghar, he took specific steps to address each issue. He appointed a business graduate and delegated sales, quality management and marketing to him. This brought positive results rather quickly. After six months, Pani Ghar's revenue doubled and the enterprise achieved selfsufficiency. Some sixty plus households became regular customers of Pani Ghar. These households belonged to the lower-middle group and became loyal customers. Scaling up Pani Ghar When the house was put in relative order, PW began to work on an investment which would help him scale up the project. He believed in the concept of economies of scale and knew that a well-paid professional management would make sense, once the operations were wide enough. PW prepared a plan to open ten outlets in Punjab and sought the help of a major social investor. Initial response was positive and a long, taxing process of communication ensued. Lack of Internal Coherence While the enterprise was doing well at the operational and business development levels, it faced an internal management challenge. PW's partner began to mistrust PW regarding his engagement with the venture fund and spending money on

systems and management. The partner was of the opinion that spending money on quality control and management support was not needed at this stage and should be put off. However, PW insisted that for long-term benefit, this short-term expenditure should be absorbed. This conflict left both shareholders in bad taste. PW was asked by his partner to quit and wind up the company. The potential social investor also took note of the internal management conflicts and concluded that it is not a safe investment. Apart from learning several lessons about the marketing of a social enterprise, PW also learnt an important lesson the hard way: The social entrepreneur should remain independent at least until the pilot phase of the product is successful. Dependency on an external factor, including an organization or an investment in the initial phase can be fatal. In the last quarter of 2007, Pani Ghar was wound up as a company, though the lone outlet still continues to operate profitably. PW's dream was not realized but his initiative provided great insights and a useful knowledge base for similar initiatives.

About the Writer
Ali Salman currently works as a senior partner at Development Pool - a consulting firm and teaches Economics. Ali specializes in economic analysis, entrepreneurship, policy formulation and business models. He has worked in the private, public and development sectors of Pakistan for over ten years. Besides various publications, the book 'Alternative Youth Policy' is to his credit. He engaged in good governance reforms, citizens-government liaison and policy research during a two year period at Planning Commission, Government of Pakistan. Ali did his Masters in Economics from Boston University as a Fulbright Scholar; his MA in Development Studies as Royal Netherlands Fellow; and an MBA from Quaid-i-Azam University, Islamabad.

tbl sept-oct 08 25

eco-retreats & eco-models

Phragmites Austraulis These plants are responsible for breaking down material waste and absorbing its remaining nutrients for its own growth, leaving clear, odourless water behind. The facility uses most of the water on gardens around the retreat, some gets filtered further into drinkable water.

teri gram ecological retreat
by kurt archer for tbl

rony of the times: a world class ecological model of excellence emerged in one of the top polluting cities in Asia. Found in the outskirts of New Delhi, in an upscale development town named Gurgaon, is the Teri Gram campus. The Energy and Resource Institute (TERI) was founded by the Tata family in the 1970s as a way to model India towards a more energy efficient future. Today it is known as a centre of excellence, in India and around the world, with offices in Europe, Asia and the Middle East. Dr. R.K. Pauchauri leads the institute. He won a Nobel Prize for environmental protection in 2004 - the same year as Al Gore

I

was awarded for his work with an 'Inconvenient Truth’, which made waves throughout out the world raising awareness towards the urgency of climate change.

Teri: A Model of Excellence
Located far from urban noise, the Teri Gram campus is most notably known as a retreat with cricket, golf and other outdoor activities. However, what makes it renowned is its complete reliance upon renewable resources. Arriving at the campus you must park at the gate and to tour the compound, board an electronic car, its symbolic green colour blending well with the campus

horizon. As the main retreat building nears, you will first notice its very modern and sophisticated design surrounded by forests and green fields. The main foyer is lit only using sunlight, streaming in through a skylight window that spans most of the roof; placed upon which are photovoltaic solar panels.

Solar Energy and Biomass Gasification
The building uses no air conditioning facility, and relies completely upon solar energy and biomass gasification to provide the much needed energy for the building. In fact, the building consumes 10.7 kW per day of solar energy from those photo-

26 sept-oct 08 tbl

voltaic panels, while up to 100 or 150 kW are produced through the process of biomass gasification. The biomass gasification machine is akin to an incinerator and burns natural products such as wood and cedar chips broken down into small nuggets. The heat produced is used to heat water tanks and power a generator. Burning at temperatures of 1200ºC, very little thermal energy is lost in the process. Most of the wood chips are taken from scraps on the facility grounds, while others are bought from outside producers. For those curious as to where the ash is sent after the burning is complete, you might appreciate knowing that some of it, if still high in its carbon content ratio, can be used as a bond to stick sawdust chips together into nuggets. The unusable remainders are dug into the earth. Since the product had no chemical properties, there is no risk to the soil. The generator itself is only run when needed, so there is no unnecessary burning and wastage of energy. The operating cost overtime for implementing such a system is equal to about fourteen Indian Rupees per kilowatt hour, including the purchasing of woodchip material.

removes the remaining microbes that were left in the fauna treated water and after passing through this filter, it can easily be clean enough to drink. While research is underway to find more efficient usages of the water produced through this system, most of this water currently is used to water gardens and fields.

GM to Conserve Plant Species?
A trip to Teri usually ends with a visit to the tissue culture plantation. Here thousands of plant species are being cut and reproduced using genetic modification (GM) techniques, essentially cloning high yielding plants. This does not contribute favourably to biodiversity. In other words, they are not interested in replicating eco-systems but rather maintaining certain species of plant that would have otherwise died out due to various reasons associated with soil and ecological degradation. The facility employed state of the art methods at engineering and growing high yield crops, which are then sent all over India and the world. This article of course cannot get into the controversies associated with GM technologies. The Teri Gram retreat can serve as a role model in the world of ecological design, and its place in Asia gives it a unique stronghold in an area where most of the population is still quite unaware of the harmful effects of environmental degradation. One can only hope its model can be replicated throughout industry and design schools all over the continent - and beyond.
About the Writer
Kurt Archer has been passionate about youth volunteerism since 2000 when he delivered presentations on child rights awareness with UNICEF. He has experience in youth training, public speaking and civil society engagement. Kurt is currently touring through Asia identifying best case practises for positive environmental changes. He studied Political Science from Carleton University.

Bio-gas Fuel inputs These timber and loose foliage pellets are used to power the Bio-Gasification unit. Some are found on site, others are purchased through suppliers. All products are 100 percent natural, and chemical free.

always rises, the Greeks designed heat chimneys that run up the building emitting small amounts of heat that help suck any hot air into the chimneys and out into the fresh air. When used in combination with the wind tunnels it provides a cool and comfortable temperature, even in the heat of the Delhi afternoons.

Waste Water Management
No self-contained facility is complete without managing the waste that it inevitably produces. Aside from using only recyclable materials instead of plastics, waste itself is reduced dramatically at Teri Gram. However, the sewage waste is what is most alarming in how it is treated: completely naturally by plants from the Phramites Austravlis family. Sewage water enters a small pond where these water born plants grow, and over a short period of time, the plants begin consuming the waste produced until there is only water left, and all traces of acidic material or methane have been consumed by these carnivorous plants. What comes out from the other end is clear, usable water. Teri does not stop here though. They are also experimenting with a special purification filter that

Ancient Greek Design Model for Conserving Energy
The design of the building itself is modelled after an ancient Greek design. Instead of air conditioning, they run cooling pipes through the ground: dug to 4 meters below-surface, and running about 70 meters along the building. The only energy used here is to run a large fan that cools the air and blows it along the pipes into the room chambers ahead. This alone will not fully cool down the room, so based on the simple science of thermodynamics, and the rule that heat

tbl sept-oct 08 27

profile in sustainability

towards 'a truly water-sustainable business on a global scale' - coca-cola

A

ccording to the International Water Management Institute (IWMI's) Comprehensive Assessment of Water Management in Agriculture, one-third of the world population faces some form of water scarcity. A recent JP Morgan Report states that by 2025, this is expected to rise to two-thirds, due to climate change and increasing urbanization and population growth. The Intergovernmental Panel on Climate Change (IPCC) report on 'Climate Change and Water' predicts that global population will rise from about six billion today to 8.7 billion by year 2050; which means that much more will be needed to feed the growing population. Already about seventy percent of the water used worldwide is used for agriculture. It is quite clear that the future for fresh water does not look bright. Especially when you also consider that all the fresh water there is today will be all the fresh water that will be there in the years to come. It is a resource that will not increase in quantity over time. The IPCC goes on to say that the unprecedented challenges from population growth, pollution, climate change and problems of allocation of water pose a severe threat to ecosystems worldwide, posing a further serious threat to fresh water availability as in water-stressed areas, people and ecosystems are particularly vulnerable to decreasing and more variable precipitation. An estimated third of the world's population
28 sept-oct 08 tbl

currently lives in water-stressed countries. This is set to increase to two-thirds within 25 years. Africa and Asia are already hard-hit by water stress. Increasing populations will create more pressure in the coming decades.

"Without access to safe water supply, our business simply cannot exist," says Coca-Cola's Chairman and CEO, Neville Isdell. Coca-Cola sells 1.5 billion beverages a day in over 200 countries and territories across the planet. At Coke's bottling plants, it takes 2.5 litres of water to produce one litre of its product. In 2006, CocaCola and its bottlers used 290 billion litres of water to produce its beverages - equivalent, for instance, to one-fifth of the daily water usage of the U.S.A. Forty percent of that went into drinks. The other 60 percent was consumed by the firm's supply chain and in the production of ingredients. Clearly Coca-Cola cannot do without water. No surprise therefore that last year, Coca-Cola announced its bold commitment to achieve 'water neutrality' by year 2010, in collaboration with the WWF. The concept of water neutrality was created by Pancho Ndebele at the 2002 Johannesburg World Summit for Sustainable Development (WSSD). Waterneutral.org defines water neutrality as "reducing the water footprint of an individual (or entity), and where appropriate, balancing (off-setting) the remaining use in a meaningful way". Coca-Cola and WWF Conservation Partnership At the WWF Annual Conference in Beijing last year, Coca-Cola pledged to increase water efficiency in its global beverage

Source: United Nations Environment Programme (UNEP)

The Impact of the Water Crises on Sustainability of Businesses In this scenario, everyone around the world, particularly in waterstress areas, needs to become increasingly aware of the water challenges and needs to act now to proactively address the looming water crisis. Within the corporate sector, industries that have water as a key input must particularly consider the impact of decreasing water resources on the sustainability of their businesses. Such organizations must focus on developing strategies and solutions now to counter future expected water shortages, or face the risk of closing down their businesses. For the international beverage giant Coca-Cola, water is a vital resource. It is the main ingredient used in nearly every beverage that the company makes.

operations and become 'water neutral'. That means that the company will work to replace all the water it uses in production of its beverages - every drop of water it uses to produce beverages would be returned to the earth or compensated for through conservation and recycling programmes. Earlier, in June 2007, Coca-Cola had already announced its collaboration with WWF to help conserve and protect freshwater resources. It committed $20 million over five years to WWF to help conserve seven of the world's major freshwater river basins that span more than twenty countries in North America, Europe, Africa and Asia. Their challenges vary greatly, from dams that have outgrown their usefulness to agricultural run-off issues to loss of habitat due to development and land reclamation. According to WWF, these waters were chosen "because of their biological distinctiveness, opportunity for meaningful conservation gains, and potential to advance issues of resource protection." So how will Coca-Cola execute its commitment to Water Neutrality? "For us that means reducing the amount of water used to produce our beverages, recycling water used for manufacturing processes so it can be returned safely to the environment, and replenishing water in communities and nature through locally relevant projects," said Isdell at the WWF Annual Conference. Coca-Cola's Water Neutrality Initiative: The Three Rs Coca-Cola's water neutrality programme has 3 core components: Reduce, Recycle, and Replenish. These were explained by Isdell at the WWF Annual Conference:

To Reduce, Coca-Cola will set "specific water efficiency targets for global operations by 2008 to be the most efficient user of water among peer companies". This is a key element of the Coca-Cola WWF partnership. To Recycle, the company will return "all the water that it uses for manufacturing processes to the environment at a level that supports aquatic life and agriculture", by 2010. Coca-Cola's water treatment standards are more stringent than many local standards and nearly 85 percent of its manufacturing facilities have implemented these standards. As part of its water neutrality programme, the Company has pledged to align 100 percent of its manufacturing facilities with these stringent water treatment standards by 2010. To Replenish, Coca-Cola will "expand support of healthy watersheds and sustainable communities to balance the water used in its finished beverages". This will include a wide range of initiatives, such as watershed protection, community water access, rainwater harvesting, reforestation and agricultural water use efficiency. The company will focus, along with its partners such as WWF, UNDP and USAID, to identify the locations and projects where the need is the greatest, and where it can have a positive impact on communities and ecosystems. It will also focus on reducing water use in its supply chain, beginning with sugar, where it will expand its existing collaboration on the 'Better Sugar' Initiative. Coca-Cola continues to work with - and learn from - its bottling partners in developing and implementing responsible water man-

agement and community engagement in water stressed regions. CCC=CSR, Using Companies' Core Competences Understanding that water stewardship is essential for its business and safe water is vital to the sustainability of the communities it serves, forms the guiding principle for Coca-Cola to launch a comprehensive strategy to work with partners worldwide on water conservation initiatives. As we know, CSR is today recognized as being much more than corporate philanthropy, which gave birth to it. True CSR means that a company's responsibility to society first of all starts with ensuring that it produces high quality products, and it does this with the least environmental impact and with the most benefits for its stakeholders and the community. Jeff Seabright, CocaCola's vice president of environment and water resources, emphasizes that, "Increasingly the real relevance is using the company's core competence to address issues that are of societal concern". Walking the Talk Coca-Cola's water-conservation efforts are to be seen as going beyond altruism: they relate directly to the company's own sustainability. Literally, as it is trying to ensure the continuing availability of a crucial ingredient. Businesses that do not address looming shortages of non-substitutable inputs run the risk of plant closures and sullied reputations, says Marc Levinson, lead author of the JP Morgan Report. Coca-Cola's vision is to 'establish a truly water-sustainable business on a global scale'. Water stewardship is a growing global issue whose impacts are felt at the local level. The Company realises that a strategy to combat water scarcity,

tbl sept-oct 08 29

conserve water and ensure a sustainable supply of clean water, must be driven by a global vision and implemented in collaboration with local community stakeholders and other global partners like the WWF. "WWF and Coca-Cola are two powerful brands with a history of building credible connections on the initiatives we support. By working together, they intend to harness this power to address the freshwater challenges we face in this century in a more impactful way than either of us could do alone", said Neville Isdell at the WWF Annual Conference. The definition of synergy, realized.
Plachimada Plant Case: The Business Challenge for Sustainability
The Plachimada Plant Case is an example of how Coca-Cola overcame and handled a business challenge successfully. In 2002, residents of Plachimada, a village in India's southern state of Kerala, accused the company's bottling plant there of depleting and polluting groundwater. Two years later, the local government forced Coke to shut down the plant. In 2006, when a New Delhi research group found high levels of pesticides in Coca-Cola and PepsiCo's locally produced soft drinks, several Indian states banned their sale. The incidents were particularly worrisome because they hurt Coca-Cola's brand in a market that is key to future growth. Coca-Cola denied polluting water and sucking wells dry in India and presented evidence to support this, but Jeff Seabright admits it mishandled the controversy on the PR front. "If people perceive that we're using water at their expense, that's not a sustainable operation," Seabright said, highlighting the importance of perception-management. "We sell a brand. For us, having goodwill in the community is an important thing." In December 2007, Coca-Cola spent $10 million to establish the Coca-Cola India Foundation, which has installed, to date, 320 rainwater harvesting structures, to collect and recharge the groundwater tables. Rainwater harvesting facilities are constructed to maximize yield and are designed to channel runoff into holding reservoirs that recharge ground water throughout the dry season, hence turning India's rain-rich monsoon season into a year-round water asset. Coca-Cola continues to work with the local government and the community to help combat water scarcity, ensure a sustainable supply of and access to clean water and expand the use of rainwater harvesting technology in India. The above example demonstrates how a company realized that its sustainability is built on the growth of its business and equally important, its' triple bottom-line initiatives.

Coca-Cola's Water Conservation Initiatives in China
Coca-Cola is also working with partners on conservation projects in waterstressed areas throughout the world. Climate change is likely to impact fresh water availability, particularly in South, East and Southeast Asia, specifically in large river basins such as Changjiang in China. According to the IPCC Report, 'Climate Change and Water', there is ample evidence (observational records and climate projections) that freshwater resources are vulnerable and have the potential to be strongly impacted by climate change, with wide-ranging consequences for human societies and ecosystems. Coca-Cola continues to partner with major multinational companies in funding social and environmental projects across China. The country is home to roughly 20 percent of the world's population, but has only about 7 percent of the world's water. Water scarcity could constrain China's future development if not effectively managed, environmentalists say. That kind of pressure is one of the reasons why Coke has partnered with local NGOs to promote environmental education, rainwater harvesting and river conservation in China, and why the company's Chinese bottling plants are on the cutting-edge of the company's conservation and recycling efforts. Between 2004 and 2007, Coke's 37 bottling plants in China reduced water usage by a substantial 27 percent. Coca-Cola has its biggest bottling plant in Shanghai, China. At this plant, plastic bottles and aluminium cans zoom by on conveyer belts, weaving in and out of massive machines that shape, clean and fill them. Grimy wastewater generated from the cleaning of water filters and the heating and cooling of drinks, is shunted to a separate building behind the factory where it is treated so it can be utilised for street-cleaning, car-washing and other secondary uses. Leaking pipes have been fixed to save water, and a dry lubricant is used to keep conveyer belts running smoothly with less water. Physical water scarcity: More than 75 percent of river flows are allocated to agriculture, industries or domestic purposes (accounting for recycling of return flows). This definition of scarcity - relating water availability to water demand - implies that dry areas are not necessarily water-scarce, e.g., Mauritania.

Little or no water scarcity Physical water scarcity

Not estimated

Approaching physical water scarcity Economic water scarcity

Approaching physical water scarcity: More than 60 percent of river flows are allocated. These basins will experience physical water scarcity in the near future. Economic water scarcity: Water resources are abundant relative to water use, with less than 25 percent of water from rivers withdrawn for human purposes, but malnutrition exists. These areas could benefit by development of additional blue and green water, but human and financial capacity are limiting. Little or no water scarcity: Abundant water resources relative to use. Less than 25 percent of water from rivers is withdrawn for human purposes.
Source: International Water Management Institute (IWMI)

References Kirby, Alex. Water Scarcity: A looming crises. <http://news.bbc.co.uk/2/hi/science/nature/ 3747724.stm> IPCC Technical Paper IV on Climate Change and Water. <http://www.ipcc.ch/pdf/technicalpapers/ccw/chapter1.pdf>

About the Writer
Rutaba Ahmed is Managing Editor of TBL. She holds a Bachelors in Business Management from University of Georgia, USA and a Masters in Communications Studies from University of Leeds, UK.

30 sept-oct 08 tbl

crossword

CROSSWORD
Across 2. Power derived from the force or energy of moving water 4. The effort to increase the well-being of humankind 5. To treat or process so as to make suitable for reuse 7. A person or group that has an investment, share etc 10. A situation favourable for attainment of a goal 12. Combination or interaction of social and economic factors 16. The only CSR magazine in Pakistan 17. The difference between ethical and non ethical returns 18. Without this function, your CSR may go wild Down 1. Exercising authority 3. To enable or permit 6. To keep up or keep going, as an action or process 7. ...Of change 8. Social and cultural forces that shape the life of a person 9. Too many of these, but it is all for their sake 11. Make more of this, to do more 13. What we must do to keep everyone on board 14. Save it, to save yourself 15. Bottomlines corporate citizens usually have

tbl sept-oct 08 31

csr in africa

csr and sustainable development in africa:

water of life
by camila flatt for tbl

ccording to the traditional African philosophy of Ubuntu, we discover and affirm our own humanity through our interactions with others. This concept of 'a person is a person through other persons' provides an insight into how Corporate Social Responsibility (CSR) is applied in Africa and how businesses can stimulate sustainable development.

A

African companies see themselves as integral to their society, not a separate entity bordered by rigid walls. They consider their business to be responsible in and of itself, because it provides employment, salaries and products to its community. Even the process of paying taxes is an important feature of responsible companies in Africa because the informal sector is so omnipotent in many African countries, often carving out 50 percent of the economy.

Why Africa? When africapractice was set up, people asked why a communications company would want to involve themselves with corporate citizenship or CSR in Africa. What people didn't realise was that communication is vital in promoting responsible development and investment into Africa. africapractice, headquartered in London, provides strategic communications, corporate citizenship and environmental consulting services and works with clients to enhance their performance and communicate their commitment to African development. We believe that an ethical and responsibly acting private sector can do incredible things to alleviate poverty in Africa, particularly in Sub-Saharan Africa. It generates wealth, increases productivity, and accounts for its environmental and social impacts. Our view is that businesses should aim to act ethically and responsibly in order to be a sustainable business in Africa. The upshot is that by being a good corporate citizen, you can play your part in alleviating poverty and delivering sustainable development. Another distinguishing feature of African economies

that determines how CSR is played out is the lack of publicly-listed companies. There are only 19 stock exchanges on the 56-country continent and apart from the Johannesburg, Egyptian and Nigerian Stock Exchange, African stock markets are relatively small and unsophisticated. Most businesses therefore do not feel the pressure from socially responsible investors or international civil society groups to apply global CSR standards. Governance and Communications African businesses in general, especially private companies, do not face the same level of pressure and scrutiny as those in the West. Outside South Africa and some North African countries, government regulation on environmental and social impacts are weakly enforced and civil society groups have a relatively quiet voice when it comes to corporate injustice. Though African businesses see themselves as the community and therefore any action they do as socially responsible, this does not mean they should not be held accountable for their actions. Barring NGOs, multinational corporations are leading this movement by localising their global CSR strategies

32 sept-oct 08 tbl

and policies to their African operations and instilling values of respect and responsibility. They do this by using three communication tools to engage and enthuse their employees, from directors to employees. The first is to raise awareness within the company about issues as wide-ranging as codes of conduct, environmental impact, accountability, and consumer satisfaction. The second is to align corporate values with a company's non-financial activities. For example, Cadbury's value of 'working together to create brands people love' is an umbrella for its CSR activities like ethical sourcing and procurement. The third is recognition and celebration. Two-way communication and feedback is vital to instil respect and learn about what works for a particular group of people or situation. Leading multinationals also set themselves targets and monitor their progress towards these targets. We are familiar with the types of targets companies have set themselves such as reducing water use or carbon emissions by a certain percentage or donating a certain amount to community investment projects. In Africa, due to the current state of affairs, these initiatives can have a profound impact in helping to alleviate poverty. Water of Life Since 2006, Diageo, a leading premium drinks company, has set itself a target to reach one million people in Africa with clean drinking water each year until 2015. It began measuring the impact of this initiative in 2007, commissioning an external evaluation of their projects to find out exactly how many people are

being reached and understanding the impact clean drinking water has on these beneficiaries. At the end of 2007, Diageo was reaching just over 840,000 people with clean drinking water and the company was beginning to see other benefits accruing to the beneficiaries, such as increased school attendance due to improved health, increased crop production for their subsistence farms, and less incidences of abuse and attacks at night while women went to fetch water. United Nations Millennium Development Goals
1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, Malaria, and other diseases 7. Ensure environmental sustainability 8. Develop a global partnership for development

holders. It allows consistency of messages and helps their African businesses to lobby national governments to prioritise water and sanitation issues up the national agenda. A Water of Life Handbook is also in the making. This handbook is an A to Z guide for Diageo's operating businesses to implement Water of Life projects. It covers everything from selecting the appropriate projects, the do's and don'ts of engaging with partners and what sustainability means. Sustainable Development Because Diageo started to measure and monitor the impact of its CSR project, it is now able to see how this initiative - which started as a philanthropic contribution - is now contributing to the sustainable development of its communities. Diageo's emphasis on communicating their results was central to them wanting to make a real and meaningful impact to their communities. It is the combination of companies promoting responsible and ethical standards to their operations and viewing themselves as part of the communities in which they operate - the Ubuntu philosophy, which challenges traditional concepts of CSR into one that fosters sustainable development on the continent. We believe that communication, through stakeholder engagement and advocacy is the lynchpin to transforming philanthropic corporate donations into sustainable poverty reducing activities.
About the Writer
Camilla Flatt is a CSR consultant working for africapractice, a strategic communications and corporate citizenship consultancy working to promote responsible investment and development in Africa. Her work currently focuses on water supply and sanitation as well as carbon, trends and development in African CSR legislations, and stakeholder engagement. She read Geography at the University College London and attained her Masters in Environment and Development at the London School of Economics. She can be reached at cflatt@africapractice.com.

What was also important to Diageo was communicating these results, both internally and externally. Diageo created a social network called the 'Water of Life Social Network'. Members consist of Diageo employees and Diageo partners who help implement the programme. The network allows employees to discuss with each other and understand what challenges they each face and what best practices are out there. It is particularly useful for the Global Diageo team to communicate with their operating business in Africa, such as Guinness Nigeria or East African Breweries to stay abreast with updates. To empower their operating businesses, Diageo also created an advocacy toolkit to communicate the results and impact of the 1 Million Challenge to key stake-

tbl sept-oct 08 33

breather

34 sept-oct 08 tbl

tbl sept-oct 08 35

csr: a reputational opportunity

corporate social responsibility:
a reputation at risk
by arif zaman for tbl

why it matters, what it means and where it is going

A

s the economic world turns upside down, the issue of trust - in business, governments, media and pressure groups in particular has returned as perhaps one of the most urgent challenges of our time and one that has no borders. This can also be seen in the broader context of confidence - by customers, employees, shareholders, and also communities - in business policy and its translation into practice. Corporate Social Responsibility (CSR) has provided opportunities for companies to align their activities with broader societal expectations. However, there is still a view that this is windowdressing and does not go to the heart of the business. There are many different definitions of 'corporate citizenship' and 'corporate social responsibility'. The Commonwealth Business Council (CBC) uses the term corporate citizenship with a definition developed from the work of the World Business Council on Sustainable Development: "Corporate citizenship is the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve the quality of life of all stakeholders". For the Federation of Pakistani Chambers of Commerce and Industry (FPCCI), CSR is "the strategic and practical link between inclusive development and economic growth realised by business behaviour that generates a trustworthy reputation with the commitment of key stakeholders. Its effectiveness is directly dependent upon an organisation's implementation of its values, corporate governance, business relationships and impacts". According to the FPCCI, CSR should be viewed as
36 sept-oct 08 tbl

an umbrella term for a variety of activities, which share the following features: Companies have a responsibility for their impact on society and the natural environment, sometimes beyond legal compliance and liability of individuals. Companies have a responsibility for the behaviour of others with whom they do business (for example, suppliers). Business needs to manage its relationship with wider society, whether for reasons of commercial viability or to add value to society. There are seven reasons why CSR matters: 1. 2. 3. 4. 5. Moral and ethical reasons - to 'do the right thing'. Sustainability of the markets companies rely upon for income. Brand image and reputation. Employee/stakeholder motivation. To enable the company to respond proactively to changing stakeholder agendas and be able to cooperate effectively under a range of business conditions. To account positively on its performance to stakeholders in a way that will enhance the company's reputation. To provide managers with a framework for managing the business in a more holistic manner.

6.

7.

heightened awareness of the issues, has significant drawbacks which are seldom acknowledged. Eight Problems with CSR Today 1. Reputational risks of CSR advocates: variable standards and a lack of transparency by a growing number of (western) NGOs which undertake advocacy, consultancy and third-party auditing, all too often in tandem, continues to constrain confidence in the processes involved. 2. A lack of understanding of how corporate governance links to CSR: There is an imbalance in the CSR debate which fails to distinguish where CSR relates - and does not relate - to corporate governance. In this area recent developments by the CBC and also the OECD are of note. At the same time, the significance of developments in Asia, especially Japan, which links the two areas is being increasingly recognised. Moreover, in developing countries it is important to highlight not just why but how responsible behaviour and good governance can contribute to a more favourable investment climate. A lack of understanding of what CSR means and how it is perceived - outside a European/ North American / Christian context: This has several dimensions. As Canon in Japan has noted, "the Anglo-Saxon debate on corporate responsibility seems to be centred only on their historical and social criteria, which naturally deal with Catholicism, Protestantism and Western European Individualism". In addition, there is a risk that a strong and sustained focus on China and India does not crowd out visibility for innovative practice - and an appetite to learn - in other countries in South Asia. A weak understanding of the dynamics of international trade and how diversified exports from developing countries for supply chains of global companies can contribute to SME development and poverty alleviation: The private sector is the main driving force of industrial development in virtually all countries and - through changing patterns of international production, investment and trade - shapes the economic globalisation process. A vibrant private sector building on the combined strength, linkages and relationships between large, medium, small and micro enterprises, is an essential prerequisite for triggering economic dynamism, enhancing productivity, transferring and diffusing new industrial technologies, maintaining competitiveness, contributing to entrepreneurship development and ultimately poverty reduction, and reduced social and business risk. A lack of sectoral specific context: A profusion

Stakeholders and Society

There is currently an almost bewildering array of international CSR initiatives. However, stakeholders such as governments, businesses, and civil society groups have identified a range of significant weaknesses in current approaches to promoting CSR. These need to be remembered as an increasing number of companies in Pakistan pursue a 'beyond philanthropy' model of CSR: An over-proliferation of CSR initiatives at the international level and lack of clarity about how these initiatives relate to each other; An excessive focus on getting businesses to make commitments to CSR and not enough focus on enabling them to implement them; An absence of credible monitoring and verification processes; A lack of effective mechanisms of redress for communities affected by companies that flout national or international norms on sustainable development or human rights; A lack of engagement with developing country governments and their sustainable development priorities (for example, economic development and poverty reduction); A failure to bridge the governance gap created by weak public sector governance of the private sector in many developing countries; Limited impact on sustainable development goals; and A lack of government involvement and/or investment in international CSR initiatives, which is contributing significantly to their underperformance. Despite the volumes of paper and the number of events, the CSR (and corporate governance debate) in Europe and the USA, while contributing to

3.

4.

5.

tbl sept-oct 08 37

of questionnaires from a growing number of (western) rating agencies with a 'one size fits all' approach for diverse sectors is resulting in questionnaire fatigue on the part of companies. 6. A lack of explicit focus on productivity: Traditionally, the productivity debate has focused on its input-oriented economic and technological aspects. This view is being increasingly challenged. The increasing focus on sustainable development, corporate governance, social responsibilities and ethics, and social auditing and standards represents a significant shift in the growth paradigm which acknowledges that social conditions also affect the rates of productivity growth. The approach of the Asian Productivity Organisation (APO), of which Pakistan and India are founder members, has helped to highlight the link between CSR and productivity in an Asian context. An insufficient focus on capacity-building, training, and development, especially in developing countries: A unique gathering of global companies, major investors and international policymakers at the UN in Tokyo in November 2003 agreed that there has been too little focus in CSR and governance in these areas. Management education can play a critical role - by building the human capacity and management capability. Events on CSR and corporate governance, whether in Europe or Asia where experts parachute in with set piece presentations and negligible understanding of context, are no substitute for activities which build the confidence and trust as well as develop the capabilities and harness the creativity of those directly involved, especially decision-makers among policymakers, companies, and investors from developing countries. In this, a trusted regional intergoernmental intermediary such as the APO which now spans a range of 20 Asian countries is key and much-needed. The SAARC Chamber can also play a role in sharing knowledge and building capability at a regional level. An industry which has issues with training, quality, transparency, and measurement: Although now changing, many people who work in CSR - as suppliers and consultants often lack a sufficiently broad or deep private sector background and are too often from NGOs or academia.

change shown by a range of international CSR initiatives; The openness of leadership companies and CSR initiatives to working in partnership with a wide range of stakeholders; and The growing recognition that a CSR agenda must address public sector governance issues and scale up the impact of CSR activities to improve the delivery of sustainable development at a systemic level. The elephant in the room is getting bigger There is one area where CSR - certainly as perceived in the West - has too long been ignored but where alienation, articulation and anger make this no longer possible: minority rights and status. As Amartya Sen, a Nobel laureate and chair of the Commonwealth Commission on Respect and Understanding (2007) said, "civil paths to peace also demand the removal of gross economic inequalities, social humiliations and political disenfranchisement, which can contribute to generating confrontation and hostility". The business case for connecting CSR to the status and empowerment of minorities is clear - it is based on moral fairness, the need for social stability and cohesion but also recognises that as economic power shifts, India and the UK will need to connect more, not less, to centres in the Gulf and beyond. As the CBC Guidelines on Business Principles (2007) made clear, "a wide perspective is now seen as essential for directors of high performing boards in which diversity is not just desirable in itself but also for ensuring an organisation is better equipped to leverage opportunities from changing trading relationships in emerging markets". By showing leadership in this area, international and local companies can change a reputational risk into a reputational opportunity.
References A. Zaman, 'Made in Japan - Converging Trends in Corporate Responsibility and Corporate Governance,' Royal Institute of International Affairs, London, 2003. See: www.chathamhouse.org.uk/publications/papers/download//id/137/file/3110_madeinjapan.pdf SustainAbility Gearing Up (report for UN Global Compact Meeting 24/06/04) UN report available at: www.henleymc.ac.uk/henleyres03.nsf /files/CORR_ReportUNIDO_041103.pdf/$FILE/CORR_ReportUNIDO _041103.pdf. Meeting supported by UK Embassy in Japan, UN, Cable & Wireless, Japan Business Council in Europe and Reuters.

7.

8.

About the Writer

However, it is clear that the CSR agenda also has some important strengths: The high levels of commitment shown by some key leadership companies; The capacity for innovation and openness to

Arif Zaman is Adviser, Commonwealth Business Council (CBC), and also serves as Principal of the Reputation Institute and Visiting Faculty, Henley Business School. He is also a member of the CSR Standing Committee at the Federation of Pakistan Chamber of Commerce and Industry.

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m
by faye mallet for tbl

urbanization and cities

egacities egaproblems egasolutions

T

he world's fastest growing cities are found in either Asia or Africa. Out of the 20 fastest growing cities in the world, ten, are in China.

Take emerging megacity, Shenzhen: A small town until 1980, Shenzhen experienced an unparalleled population and economic boom after being designated a free trade zone. Today, Shenzhen has more than 7 million inhabitants, due largely to its prime location on the Pearl River delta - the age-old trend of civilizations to gravitate towards water sources. This is 23 times its population only thirty years ago, according to the UN.
tbl sept-oct 08 39

Massive urbanization has arrived in China. If current trends prove correct, the country's urban population will reach 1 billion by 2030. New research released by the McKinsey Global Institute (MGI) estimates 320 million more people will be added to China's cities by 2025. This is more than the entire population of the United States today, just over 305 million. Currently, China has a hundred cities with a population of over one million. In 20 years, it will add more than a hundred more cities of this size, and at least six more megacities containing populations over 10 million people. While this exponential growth will have a positive impact on the country's GDP (MGI estimates increases up to 20 percent), it also carries serious challenges and consequences. To meet what is considered an "unprecedented transformation" in history, governments at both national and local levels must proactively implement policies now. Decisions that China makes today will determine whether its cities struggle to cope with growth (e.g. like Mexico City, Mumbai or Sao Paulo) or emerge as "world-class" megacities, with new markets and opportunities for business.

Urban Migrants A report released by Deutsche Bank Research in March of this year, 'Megacities: Boundless Growth?' cites the growth of cities as fastest in those countries with a "big gap between rural and urban incomes." The larger the difference between urban incomes and rural incomes, the faster cities expand.

Megacities of
Urban Area Population c. 2005

Rank

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Tokyo, Japan Mumbai, India Mexico City, Mexico Sao Paulo, Brazil New York, United States Delhi, India Shanghai, China Calcutta, India Jakarta, Indonesia Dhaka, Bangladesh

35.2 million 18.2 million 19.4 million 18.3 million 18.7 million 15.0 million 14.5 million 14.3 million 13.2 million 12.4 million

"To understand the dynamics of the megacities is also to understand their dilemmas," writes Dr. George Bugliarello, University Professor and Chancellor , Polytechnic University, Brooklyn, New York. Megacities are where both problems and opportunities are visible on a larger scale. What happens in megacities have a greater impact on the rest of the world. The UN's 'State of the World Population 2007' notes that: "No country in the industrial age has ever achieved significant economic growth without urbanization." "Urbanization is unavoidable," states Chief of the UN Populations Fund's Resource Mobilization Branch, Jean-Noel Wetterwald. "The concentration of people concentrate the problems, but also concentrate the solutions."

With 230 million migrants expected to move from the countryside into China's "new" cities, MGI forecasts that migration will account for about 70 percent of urban population growth over the next two decades. Most people migrate to cities expecting higher wages and an improvement in their standard of living. In many instances, they also don't have much of a choice. One of the reasons why more megacities are forming at this particular time is history is because of the loss of arable land. In China alone some 3,000 to 6,0000 square kilometers of farmland are estimated to be lost each year, cites Deutsche Bank Research. The reasons? Industrialization, unsustainable farming methods, and climate change. The Deutsche Bank research cites other reasons why, soon, most of the world will live in cities. Among these include:

40 sept-oct 08 tbl

Population Growth: Megacities are largely the result of longer life spans due to advances in hygiene and medicine. Technological Revolution: "Globalization and digitization" drive the economic development of megacities because of the way they cluster markets and skilled workers together.

become one of China's major economic hubs, and out of all the megacities in China, is purported to be the "fastest-growing urban center on the planet." If the day he spent in Chongqing is "typical," says The Guardian writer Jonathan Watts, then "builders will lay 137,000 square meters of new floor space for residential blocks, shopping centres and factories. The economy will grow by 99 million yuan. There will be 568 deaths, 813 births and the arrival of 1,370 people from the countryside." Watts points out the incongruities in this emerging metropolis. From the "bangbang army" -a 100,000strong crew of porters who carry heavy bundles of goods between Chongqing's markets and earn approximately 20 Yuan a day (USD $2.9) - to the new, richer urbanites who have moved "off the land and into the sky." Implications Urbanites tend to produce less and consume more, making demand for energy and water one of the biggest dilemmas of our times. MGI forecasts the demand for energy in China's urban areas is likely to more than double; and demand for water will increase by 70 to 100 percent.

the Future
Projected Population 2015 35.5 million 21.9 million 21.6 million 20.5 million 19.9 million 18.6 million 17.2 million 17.0 million 16.8 million 15.2 million
Source Forbes.com

Opportunities for Investment: More investment opportunities are to be found in cities than in rural areas. Mega-problems Dr. Bugliarello, Editor-in-Chief of The Bridge, the quarterly publication of the National Academy of Engineering, states that "Megacities are currently experiencing rapid growth with which they cannot cope." This creates a host of problems, including: population growth; poverty increase; infrastructure problems in transportation and communications; land and housing pressures (that is, on average, China "concentrates" 5.7 persons to a room, as compared to 0.5 in the US); environmental concerns; economic dependence; and capital scarcity. Staggering Urbanization Chongqing is a good illustration: Built along the Yangtze River, this former port town has grown to

This article is under © Copyright 2003-08 of Galt Western Personnel and has been tailored for TBL with permission from the Galt Global Review, www.galtglobalreview.com.

tbl sept-oct 08 41

ethical consumerism

tackling the social impacts of consumerism

today

and not

tomorrow

n the context of an increasingly globalised world, Pakistani corporations face the challenge of protecting the rights of both their consumers and their workers. The nature of consumerism implies a lack of consciousness on the consumer's part in relation to the ethical nature of the products they buy. It is therefore up to the Pakistani business community to awaken the social conscience of consumers in order to protect the rights of people at both ends of the value chain.

I

Consumerism and its Social Impact Consumerism can be described as the idea that people consume as a means of satisfying their wants and happiness. They consume the products that they believe reflect and reinforce their personal identity. It is consumption that transcends consuming 'what you need' in favour of consuming 'what you want' This consumer culture is evident in most areas of the world. However, the social consequences of such an unconscious consumer culture are being magnified with the increasing geographical reach of supply chains spanning across different countries. At the heart of this problem is the alienation of the consumer from the producer in favour of a relationship between the consumer and a commodity. All notions of a moral relationship between the consumer and the producer are forgotten in favour of the price and desirability of a certain product. Not on the integrity of value chain invested in delivering that product. The impact of this is that often
42 sept-oct 08 tbl

people's unconscious consumer choices are encouraging the manipulation of a worker's rights on the other side of the world. An apt example from Pakistan: In the late 1990's a number of stories exposed the use of child labour in the Sialkot football production industry. For consumers of footballs in the U.S., this came as a complete surprise - not necessarily because the consumers didn't know about child labour but more because they never considered how or where their product was made in the first place. Such an attitude is unsustainable for the company, the consumer and the producer. Awakening the Awareness of Consumers The fact that such a report on the football industry in Pakistan came to light is evidence that some consumers are awakening to the realities of consumer culture. People are becoming more aware of the global challenges the world is facing in relation to issues such

as human rights and the environment. As a result, they are gradually assessing society's consumption habits in relation to these challenges. This is especially the case in much of Europe and North America. A recent study by GFK NOP looked at consumers attitudes to ethical business within Europe. According to the study, consumers are most interested in three things when judging how ethical a company is: 1) Do they ensure fair treatment of employees? 2) Do they promote care for the environment? 3) Do they ensure good working conditions and fair prices for local producers / suppliers? In addition, the study found trends suggesting people are taking these factors more into account. For example, nearly one third (31 percent) of consumers claim they are willing to pay a

5-10 percent premium for an ethical product over a conventional one. 60 percent said they would be more open to buying ethical brands if they had better information on what companies are doing. Although consumers' ability to take action through their consumption habits depends on factors such as social status and geographical location, this is a trend that companies worldwide need to take into account. Taking Action Now Rather Than Later The challenge this poses for Pakistan is two-fold. Not only do Pakistani corporations need to ensure they are protecting the rights of the consumer; they also need to ensure they are protecting the rights of the producer. Although the consequences of not doing so are not imminent, the trends of increasing consumer awareness in the face of consumer and worker rights violations cannot be ignored. Employee Rights In the wake of the football scandal, top brands such as Nike cancelled their contracts with suppliers in Pakistan. Just as exploitation of workers can bring financial benefit (at the cost of the workers) to parts of the supply chain, public accountability can bring the supply chain altogether to a halt. Suppliers in Pakistan face the challenge of remaining competitive in a global market place at the same time as ensuring human rights standards are met. A good benchmark being used by many suppliers is the International Labour code set by the United Nations through the International Labour Organisation. Although the conventions it contains remain contentious, it does offer a guideline to standards on issues such as freedom of association, health and

safety and child labour. It was in fact abiding to these standards that allowed Pakistani suppliers to attract Nike back to Sialkot. Silver Star Group, Nike's suppliers, now requires all their workers to be registered as fulltime employees. They are paid hourly wages and are eligible for social benefits. It was only when these standards were enforced that Nike agreed to start producing in Pakistan once more. Adequate Reporting - Enforcing Consumer Rights Enforcing consumer rights is dependent on a relationship between the consumer and retailer. Unbeknown to many, there is an organisation in Pakistan that recognises the importance of this relationship. The 'Consumer Rights Commission of Pakistan', an independent non-governmental entity working to promote consumer rights, outlines what it believes to be 'consumer rights' and 'consumer responsibilities'. Especially important when it comes to consumer rights is 'consumer information' and 'consumer education'. Consumers have the right to know how the products they consume are produced so they are able to make an informed consumption choice. Not providing this information calls into question the social integrity of a company. Realisation of this is evident in many multinational companies who report on their supply chains. Cadbury, for instance, reports on their supply of cocoa through initiatives such as the Cadbury Cocoa Partnership geared at securing the economic, social and environmental sustainability of Cocoa farmers in Ghana, India, Indonesia and the Caribbean. The point is that these companies are staying ahead of the game.

Although these reporting mechanisms may have little impact on consumer choice for some industries at the moment, they are aware of the rising awareness of consumers and so are proactively meeting consumer rights as opposed to reacting to them later. Marketing - Appealing to the Senses Corporations are beginning to see the marketing opportunity presented by ethical products and so are bringing the ethical angle into their marketing approaches. Marks & Spencer alone are investing £200 million in a five-year plan to become perceived as a truly ethical business. The reason for this is that companies are realising that as global problems are increasingly connected to consumption habits, people strive to identify themselves as socially responsible citizens. Such an identity shapes their consumption habits. This means that ethical goods are not being consumed purely because they are ethical, but also because of the feel good factor they bring to the consumer. This feel good factor can be targeted in the marketing of various commodities. Investing in the Future Social awareness and activism is not currently at a place in Pakistan where it will majorly impact consumer habits, just as worker mobilisation and rights isn't at a place where it will promote and enforce better labour standards. However it is up to companies to secure the social rights of their stakeholders and it is far better to get into the habit of doing this now rather than later.
About the Writer
Andrew is currently based in Karachi and works with the JS Group's CSR Initiatives. He has come here through the AIESEC leadership development programme and has actively been involved in connecting students with companies in CSR based forums in the UK. He has also written about his experiences of Pakistan for the BBC.

tbl sept-oct 08 43

carrots only, no sticks

the carrot-trousered philanthropist
by sarah wakefield for tbl

"…And it was there I learnt that to grow the best carrots you should put the compost in the bottom of the hole…now my carrots go down to Australia!"

ichael Hopkins, eminent socio-economist, exInternational Labour Organisation, Professor at Middlesex University, now Managing Director of his own Corporate and Social Research Company, spoke over a spicy dinner about visiting Sri Lanka. Here he not only discovered how to make his carrots grow, but also what difference a major corporation could make in a poor village through investing in a local farming project. Hopkins spoke of one local villager who he named 'Mr. Magic' due to his amazing vegetable-growing abilities and his commitment to the project. Despite his world-traveled
44 sept-oct 08 tbl

M

expertise on vegetables, Hopkins was in Manchester to share his ideas, on development and the role that corporations should have, with the UMSU Challenging Orthodoxies Society. Grey suited with red tie and matching triangular hanky, his dress was that of smart eccentricity, mirroring his chosen role as academic businessman. With the same relish he employed when crunching on his popadoms later, he peppered his rather dense talk with slick, controversial headline winners. “The UN's core budget is $1.25 billion per year, how can they be effective with this? That's equiva-

lent to 4 percent the New York City Annual Budget - the cost of their fire department. I sat next to Kofi Anann [ex UN SecretaryGeneral] on a plane a few weeks ago; I turned to him and said ‘Kofi, what happened to eradicating povert?’” After half a century and $1 trillion in development aid, 2.65 billion people, or nearly half of mankind, live on less than $2 a day and the figures have grown over the past decade as some of the poorest economies travel backwards. Hopkins' general stance is that governments and international organizations grouped under the UN have failed to curb the

increase of poverty and underdevelopment. Now is the time for corporations to step in and use Corporate Social Responsibility (CSR) to assist development and help the most disadvantaged in the world get a leg up. Hopkins feels that development in a country is best measured by an increase in life expectancy, as this indicates higher quality of life in terms of medical care and food, and controversially enough, he doesn't think happiness is a factor in this (perhaps implying that developed nations don't rank all that high in happiness anyway). In one of his books, The Planetary Bargain, Hopkins suggests, "CSR is concerned with treating the stakeholders of the firm ethically or in a responsible manner. 'Ethically or responsible' means treating stakeholders in a manner deemed acceptable in civilized societies…" In non-economist speak, this means that massive businesses should start looking after their workers, shareholders and the environment around them. This may involve training workers in more efficient farming methods, offsetting carbon emissions, or in the case of beverage manufacturers, not encouraging poor people with no access to dental care to buy a sugary, fizzy drink. The reason they should start to look at their CSR is because there's profit to be made in it; consumers like to feel they have invested 'ethically' by purchasing from a corporate citizen. We only need to look at the growth of fair-trade and organic labelled products on our shelves to acknowledge that consumers are becoming more aware of where the goods they buy come from. In spite of this, Hopkins' worry now is that corporations are getting away with investing in 'green' initiatives rather than in people. He argued it is far easier to look at a picture of a melting

ice cap and resolve to help, than look at a picture of a person stretched past humanity due to horrific circumstances (war, famine, genocide, sweatshops) and find the empathy to support them. One may be forgiven for becoming skeptical about the way Hopkins believes the world can be changed when told that his company writes the CSR programmes for many big players, including the UN. This is a game for the academic businessman: analyze what companies should be doing and then get them to pay you for implementing it. However, when asked about what his aims are, he employed an almost childish charm in the only softly spoken sentence of the night saying, "To leave the world a better place than it was when I came." It seems a strange thing in today's world to find an economist with ethical views and dreams, beyond the giddy heights (or plummeting vales) of the stock market. Hopkins was pushed into questioning dialogue by members of the Challenging Orthodoxies Society. "Are massive corporations really the answer when they have trampled their developing world producers into the ground through sweatshops and aggressive marketing? Can we, at a grass roots level either as students or employees, make a difference to these huge corporations' policies?" The answer was "No," as it is apparently a top down decision, at least at the moment. But surely the steps being made in international policy are groundbreaking and hold much promise? Hopkins countered that there have always been groundbreaking developments and here we still are, with Sub-Saharan Africa the only continent in the

world still developing backwards. However, when he talks down international schemes he's keen to impress he has worked within the system. When in the UN department of the International Labour Organization he became notorious for writing a paper in which he suggested they all take a 50 percent pay cut and the profits go into development. Here the ghost of socialism drifts into his outlook which has very much adapted to play within the capitalist system. His latest book puts forward a practical plan about how corporations can best use their billions to help the poor. Given that many corporations hold turnovers greater than that of individual countries, it makes sense to involve them in investing in areas that need it the most - in a year Ford Motor Company sales are greater than Norway's Gross Domestic Product (GDP), and Philip Morris's tobacco sales every year are greater than the GDP of New Zealand. Perhaps it is misguided to dismiss the international community and Non Governmental Organisations, as so often they lead the way when it no longer becomes profitable for a corporation to stay in an area. They often are the ones left to pick up the debris of disloyal and fickle capitalist ventures. Hopkins' ideals seem to be free of the usual business desire for profit alone, but as he walked away from the glowing lights of Rusholme it remains to be seen if the dreams of an economist and his carrots will take root, or become riddled with the rot ever present in the capitalist world of, The Corporation.

About the Writer
Sarah Wakefield is Student Direct’s Features Editor. Student Direct is the largest student newspaper in the UK, and its serves the University of Manchester.

tbl sept-oct 08 45

tbl content

tbl ingress
TBL gives you the opportunity to share your company's and/or your individual initiatives and achievements. We will be happy to publish your CSR related initiatives, given that they fall within the general parameters and guidelines of the publication. TBL encourages individuals, public and private corporations, sole proprietors and educational institutions to communicate their corporate citizenship, sustainability, and socially responsible activities and initiatives. Share your thoughts, comments, questions.

"

A good company delivers excellent

products and services, and a great company does all that and strives to make the world a better place.

"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed it is the only thing that ever has." - Margaret Mead, American
Cultural Anthropologist.

- William Ford Jr., Chairman, Ford Motor Co.

"

We all have our strengths. Assess them. Analyze them. Criticize them. We can all be mentors in our fields and encourage others to take their stance for building a socially responsible society.

46 sept-oct 08 tbl

book in focus

sustenance of enterprise
"In the world of today, managers and leaders of organizations, in both the private sector and civil society, are being challenged as never before to find ways to play a pro-active role in addressing the concerns of sustainable development". They are often overwhelmed by a shower of conflicting messages from the media, shareholders, customers, employees, and NGOs. he Sustainable Enterprise Fieldbook is useful for managers as it “teaches them how to strike a better balance, moving from an "either/or" mind-set to one that holistically embraces social, environmental and economic issues simultaneously”. The Sustainable Enterprise Fieldbook, a realistic and practical hardback, has been put together by an outstanding assortment of experts from business (Microsoft, Sony, Philips, and AIG), consultancies, and academia. It has been edited by Jeana Wirtenberg [PhD] with William G. Russell and David Lipsky [PhD] in collaboration with The Enterprise Sustainability Action Team. Its aim is to teach and guide leaders, managers, practitioners, students, and professors in every sector of society, and in every industry, to create a successful and sustainable enterprise. Each chapter demonstrates through models, tools, cases, stories, and examples from a wide range of companies - how to integrate sustainability into the day-to-day realities of running a business. Managers are coached, facilitated, and guided to enable them to create a better balance between the short and long-term, to help them become change agents in their organizations and to provide answers to the question 'How do I make a difference?'. The Fieldbook begins with Part 1, titled 'Understanding Reality', which includes an inspiring introduction and overview. It is stated that the book “captures the essence, energies, experiences and best practices that emerged through the collaborative efforts of our community of co-authors”. The purpose of the book, how to use it, current reality

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[the true condition of our world today], sustainability practices, etc., and an overview of the book, part-wise, can be found in this section of the book. In Section 2, titled 'Preparing the Foundation for a Sustainable Enterprise', John D. Adams describes Mental Models as "the constructs we bring to any situation that we are attempting to impact. They include what we know - what we value - what we believe - what we assume - out of which emerges a context for action or inaction'". A case study [Appreciative Inquiry case study: Executive MBA candidates] is cited by Theresa McNichol. Appreciatibe Inquiry (AI) “focuses on assets, resulting in the uncovering of a wealth of latent talent and creativity that was just waiting to be tapped”. Using AI, individuals in systems start to work beyond mere function and co-create an entity that excels. Section 3 focuses on the topic of 'Developing a Sustainability Strategy'. In essence, this chapter defines the unique qualities of sustainability strategies, lays out the business case for corporate sustainability, provides examples of customized ways in which firms are pursuing a sustainability advantage, and describes a seven-step model for structuring the sustainability strategy formulation process. Part 3 of the book, titled 'Embracing and Managing Change Sustainability', features sections on managing the change to a sustainable enterprise, employee engagement for a sustainable enterprise, and sustainable enterprise metrics and measurement systems. Part 4, titled 'Connecting,

by fariha rashed for tbl

Integrating, and Aligning Toward the Future', features sections such as Sustainable globalization and Transorganizational collaboration and sustainability networks. Sustainable globalization represents a breakthrough and a fundamental change in how people approach doing business in a global world in the 21st century. Part 5 is the final part of the book and it includes one section: 'A New Beginning - When it All Comes Together'. Written by Jeana Wirtenberg, David Lipsky and William G. Russell, they talk about arriving at a new beginning, which "contains the crucial possibilities of creating a sustainable future; success is our only option". The writers discuss the common threads that run through the entirety of the book that hold some keys to accelerating the progress of sustainability. They also discuss sharing of the Sustainability Pyramid with the readers, which was developed as a part of a study of the world's most sustainable companies. The Sustainable Enterprise Fieldbook offers an ingredient that has been missing in the vast outpouring of information on organizations and sustainability: a holistic integration of solutions, which will make the journey personal for each reader. It is comprehensive and focuses on the human side of sustainable enterprise. It is a must-read for anyone trying to make sustainability happen in the real world.

tbl sept-oct 08 47

musings

whose water is it anyway?
by praetor for tbl

I

heard this crazy idea for water harvesting, which on reflection did not seem that crazy after all. If one is able to collect all the water flow from all the airconditioners operating night and day in a large city like Karachi, how many MGD water can one generate? Yours truly was an instant convert to the idea at an individual level. Now my bedroom air-conditioner's water flow goes into a garden bucket, which invariably is at least half-full by the morning, and my wife uses the 'harvested' resource to water her potted plants soon after dawn. (Yes, she's a committed early riser!) There is a lot of talk around about rainwater harvesting. Indeed there are already sufficient success stories around the world to not only prove that it can be done, but more importantly to emphasize that it must be done, wherever it rains. Ultimately water conservation needs to be a habit at the individual level. In the same way locking your front door at night-time is. I wish one could say also: in the same way as stopping at red traffic lights is. But that's history in the land of the five (mostly dry) rivers. It's also another story. Perhaps even a CSR opportunity for an OMC or a vehicles manufacturing company to run a public service message campaign on television, to inculcate a responsible, law-abiding driving habit in our worthy citizens.

Getting back to water and the individual. Ever considered spending just a little money to upgrade your domestic water outflows to conserve water? Okay, here is what it takes. A separate sink in the kitchen in which everything is washed that requires only water for washing and no soap or detergents. Like fruits, vegetables, meat, poultry, some crockery and cutlery and your hands too. 'Dirty' water from this sink flows into a 200 litres capacity fibreglass tank outside. A flexible hose pipe leads from the tank to your garden. Two hundred litres of water is effectively re-used. If you want to go the whole hog, have the water from your bathroom sinks, showers and tubs go into a holding tank and from there into a basic sand filter. And then into another tank which holds the filtered water for various domestic uses. Spend a little more on multi-stage filtering and you will have recycled water you can wash your floors with every day. I can almost feel some of you out there snorting in derision. Probably because you can afford not to go through all this. Enough water to waste, enough money to keep the tanker mafia happily in business. But hey, give someone else a break! The water you recycle saves water elsewhere, which somebody more in need can use. So make a start, because Praetor says so.

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