Sector Drilldown: Water

Speakers: Zoe Knight, Climate Change Director at HSBC Koh Lian Hock, Exective Director of Lien Aid Toshihiro Nakamura, Co-Founder at Kopernik Moderated by: Beau Seil, Managing Partner of Unitus Impact

Zoe Knight Director of Climate Change Strategy HSBC

Climate Change and Water
Addressing the global challenge
May 2013

Zoe Knight Director, Climate Change Centre of Excellence HSBC Bank plc +44 20 7991 6715 zoe.knight@hsbcib.com

View HSBC Global Research at: http://www.research.hsbc.com Issuer of report: HSBC Bank plc
Disclaimer & Disclosures: This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it

ABC
Global Research

Climate Change makes existing resource stress worse Water – disruption Energy - disruption Food – disruption The inter- linkages are all too clear

Source: HSBC

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Water availability varies across regions Water availability has declined dramatically in some countries Currently water per capita levels are stressed for India, scarce for South Korea, South Africa and Saudi Arabia

India is the most vulnerable country overall, but China also has localised stress

Source: HSBC

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HSBC Water Programme – flagship environment project

Five year USD100m programme WaterAid

WWF
Earthwatch Engaging HSBC Employees to deliver tangible benefits

Koh Lian Hock Executive Director Lien Aid

Mission Make safe water and sanitation accessible and affordable to poor communities in Asia

Our Presence
Singapore, Cambodia, China and Vietnam

Our Partners
• Local Government Ministries • International and local NGOs • Corporates

Gift of Water
Water changes my world

Floating Communities

Lien AID’s water program empowers rural communities by implementing change. It builds water facilities, facilitates knowledge transfer, stimulates community ownership and encourages behavioral change for better health, education and livelihood. What we do 1. Build water facilities, giving locals direct access to safe and clean water. Improve awareness on health and hygiene, and educate communities on the importance of drinking treated water Enhance knowledge on water conservation and rationing, protection of water sources, as well as operations and maintenance.

2.

Poverty-Stricken Communities

3.

We actively design initiatives that are sustainable : environmentally, financially, operationally, socially and politically.

Polluted Water Sources, Clean water is relatively costly Water Project (Village)
Location: Kampong Chnang Province, Cambodia Ave annual rural floating hsehold income : S$660 (2010) LA Initiatives: • Constructed floating water treatment plants (operated by community/ entrepreneur on cost recovery basis) • • • • • Treated water is bottled and sold at affordable average USD 0.20 per 20L Hygiene awareness program, O&M training Completed 3 treatment plants, benefitting 2,653 people Expected to complete 2 water treatment plants by end 2012, benefitting 4,339 people In the pipeline: 11 water treatment plants, benefitting 29,922 people (Kampong Chnang & Siem Reap)

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Frequent Dry Spells, Polluted Water Sources, Lack of Proper Infrastructure

Water Project (Village)
Location: Xin Fu Yuan Village (2,040 villagers), Guizhou Ave annual rural hsehold income: S$601 (2010) LA Initiatives: • Identified water source • Constructed water storage facilities and installed water distribution system • Hygiene awareness program, O&M training
• Expect to complete projects in 11 villages by end 2012, benefitting 20,037 people

In the pipeline: Projects in 30 villages , benefitting > 30,000 people
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Polluted Water Sources
Water Project (Schools)
Location: Dazhu County, Sichuan Province Ave annual rural hsehold income: S$892 (2010)

LA Initiatives: • Installed water treatment systems • Hygiene awareness program, O&M training • Completed projects in 5 schools in 2012, benefitting 3,038 students and teachers
In the pipeline: 53 schools, benefitting 31,448 students and teachers

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Key Success Factor 1

Local Community Ownership & Capacity Building for Sustainable Outcomes
Operator for Water Treatment Plant Latrines Sale Agent Village Management Trainee (大学生村官)

Ms. Meas Mom
Operator for water treatment plant and seller of Lotus Water, Chhnouk Trou Commune, Kampong Chnang Province

Mr. Kim Srang
Latrine sales agent, Kampong Speu Province

Mr. Yuan Yong Fa,
VMT, Zhang Tang Village, Gansu Province

‘I want my son to take over the Lotus water business because I want our family to continue to be part of this meaningful project.’

‘I never knew marketing was able to help in the increase in sales of the latrine products. I am encouraging other sales agents to conduct sales events so that they are able to sell more latrines.’

‘Awareness of the root problem is crucial in paving the way to solve the age old water problems that have plagued countless communities for decades.’
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Key Success Factor 2

Advocacy & Education to Raise Awareness and Drive Demand
Goodwill Ambassador Health & Hygiene Training
WATSAN Contests for Students

Sales Event for Latrines

Mr. Xuan Bach
Actor and comedian, Goodwill Ambassador, Rural Water Supply & Environmental Sanitation, Vietnam

Dr. Boubacar Diarra
Medical doctor, Consultant, Lien AID

Mr. Zheng Yinzhang,
Principal, Ganchong Primary School, Heinigou Village, Yunnan Province

‘Water and sanitation problems in the rural communities can be solved if we work together to educate the people.’

‘We not only want to provide clean water to the villagers, but more importantly, to teach them about the benefits of proper hygiene practices, water management and protection of the water sources and environment.’

‘We’ve never thought of teaching the students about water and sanitation through art & writing competitions. I think the students learnt a lot more through this channel!’

Support to latrine sales agents come in the form of training on the technical aspects of manufacturing of the low cost latrines, and also the marketing element of promoting sales. 14

Toshihiro Nakamura Co-Founder Kopernik

Kopernik brings life-changing technologies to the last mile by connecting manufacturers of technology, local organizations and funders

Funding partners
(Individuals & Corporations)

Technology partners
(Technology manufacturers)

Distribution partners
(Local organizations)

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kopernik.info

Typically, technologies are distributed using ‘technology agent’ model

Local technology agents selling technologies to the local communities on a consignment basis

Kopernik arranges delivery of technologies to the local partners

Tech agents

$$$ Technology

$$$
Technology

$$$

Technology

Customers
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kopernik.info

Since our launch in 2010, we’ve reached over 100,000 people in 13 countries

Drip irrigation, solar lights and water filters in India

Solar lanterns in China

Solar lanterns, hearing aid and battery kits in Japan

Water purifier in Uganda

DIY Charcoal in Kenya Solar lanterns in the Philippines Hearing aid in Vietnam

Obstetric kits in Haiti

Solar lanterns in Nigeria Cooking stoves, solar lanterns, water purifiers, educational toys in Indonesia Solar lanterns, Rollable water drum, Water purification system and cooking stoves in TimorLeste

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kopernik.info

Sector Drilldown: Water
Speakers: Zoe Knight, Climate Change Director at HSBC Koh Lian Hock, Exective Director of Lien Aid Toshihiro Nakamura, Co-Founder at Kopernik Moderated by: Beau Seil, Managing Partner of Unitus Impact

Please proceed to the next sessions

Toolkits: 3.25 – 4.25pm

• • • •

Effective Due Diligence: 4.1 Fundraising: MRA Impact Assessment: 6.1 Mobilising Human Capital: 14

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