Doug Baker's Presentation from the 2014 Minnesota AgriGrowth Council Annual Meeting and Conference
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Doug Baker's Presentation from the 2014 Minnesota AgriGrowth Council Annual Meeting and Conference
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Doug Baker's Presentation from the 2014 Minnesota AgriGrowth Council Annual Meeting and Conference
- 1. 1 NAVIGATING OUR WATER FUTURE DOUG BAKER, CHAIRMAN AND CEO ECOLAB Minnesota Agri-Growth Council November 6, 2014
- 2. THANK YOU MINNESOTA AGRI-GROWTH COUNCIL 2
- 3. Don’t Look at the Waves, Look for the Current WATER 3
- 4. MACRO TRENDS 4 Water Shortage Energy Demand Aging Population Increasing middle class globally Nature Technology Food production accounts for nearly 75% of water consumption Demand for energy requires more geographically and technically challenging sources, which are more difficult to reach and treat as well as more water intensive Water scarcity is expected to be a dominant issue, particularly in high growth emerging market economies Aging population in EMEA, Japan, and China will drive healthcare Meal prep away from home continues in emerging markets driving foodservice growth Evolution presents new food safety and infection challenges Science & technology enables broader set of product and process improvements Population Growth Diet Shifts More people: +50% by 2050. Most growth in emerging markets Diets move from grains to proteins in emerging markets Population growth plus diet shift means 75-100% more calories needed to feed the world
- 5. FOOD-ENERGY-WATER NEXUS 5 ENERGY FOOD WATER
- 6. EMBEDDED WATER IN EVERYDAY PRODUCTS 6 167 Gallons of Water = 55Gallons of Water = of Water = = 450Gallons of Water = 880Gallons 360Gallons of Water = 200Gallons of Water
- 7. BY 2030… The world will need: 30% more water 40% more energy 50% more food 7 The global water industry is estimated at $483 billion and growing several percentage points a year, according to Global Water Intelligence.
- 8. AGRICULTURE IS THE LARGEST FRESH WATER CONSUMER 8 Source: World Water Assessment Programme 70% Agriculture 20% Industry 10% Domestic
- 9. Minnesota exports more than $8 billion of ag products per year
- 10. “THERE IS NO NEW WATER. ALL WE HAVE IS HERE.” 10 - National Geographic
- 11. WATER INVENTORY 11 97.5% Salt Water 2.5% Fresh Water Fresh Water Inventory Fresh Water Total Water Glaciers/ice caps 68.6% 1.72% Groundwater 30.1% 0.75% Lakes, rivers, ice/snow 1.3% .03%
- 12. WATER INVENTORY 12 97.5% Salt Water 2.5% Fresh Water Fresh Water Inventory Fresh Water Total Water Glaciers/ice caps 68.6% 1.72% Groundwater 30.1% 0.75% Lakes, rivers, ice/snow 1.3% .03%
- 13. FRESH WATER SUPPLIES Water scarcity among the top four risks to society – WEF Global Risk Survey World Bank predicts that by 2025, water demand will exceed supply by 50% Challenges differ watershed to watershed Food, water and energy are all connected 13
- 14. WATER CRISIS MAKING INTERNATIONAL HEADLINES Southwest braces as Lake Mead water levels drop Nestlé warns water scarcity ‘more urgent’ than climate change Water shortage shuts Coca-Cola plant in India Water woes force big brewers to tighten the tap California Drought Squeezes Wells State Considers Regulating Groundwater Use for First Time
- 15. 15 US COMPANIES FACE INCREASING WATER-RELATED RISKS 94% face potential physical challenges 69% face reputational risks 58% face regulatory risks 80% say it will affect their decisions on where to locate facilities 60% indicate water will affect business growth and profitability within five years 1 Bridging Concern with Action: Are US Companies Prepared for Looming Water Challenges?, Pacific Institute and VOX Global 2014 survey of US-based Fortune 500 companies
- 16. Whole Foods Labelling at 390 Stores
- 17. 17 + =
- 18. ECOLAB: UNIQUELY POSITIONED TO DELIVER WHAT MATTERS MOST SAFE FOOD CLEAN WATER ABUNDANT ENERGY HEALTHY ENVIRONMENTS
- 19. PEOPLE, SERVICE & INNOVATION $13 BILLION ANNUAL SALES ASSOCIATES 25,000 SERVING MORE THAN 1 MILLION CUSTOMER LOCATIONS IN 171 COUNTRIES 1,600 Scientists 6,700 Patents 19 45,000 LARGEST &BEST TRAINED FIELD TEAM
- 20. SERVING THE WORLD’S MOST WATER INTENSIVE INDUSTRIES
- 21. ECOLAB MODEL DRIVES INSIGHTS 21 Shared Operating Principles Shared Technology Shared Model Foodservice/ Hospitality Food & Beverage Processing Healthcare/ Infection Prevention Industrial Water Services Energy Services
- 22. 22 Global Technical Reach Campinas Aberdeen Calgary Singapore Bangkok Leiden Alpharetta Tokyo Monterrey Global Innovation Centers Monheim Shanghai Sydney North America Europe & MEA Latin America Asia Pacific Delden Eagan Houston Naperville Greensboro Pune
- 23. EIGHT DECADES OF TRUSTED PARTNERSHIPS
- 24. BRANDS WITH WATER REDUCTION GOALS 24 Renewing efforts to decrease water consumption by 20% by 2015, compared to 2008 baseline. 2015 goal to improve freshwater efficiency by 5% Aims to reduce direct water withdrawal per ton of product by 40% by 2015, compared to 2005 baseline. Intends to cut water use per pound of product by 15% by 2015, compared to a 2008 baseline. Goal to reduce water use by 10% by 2020. Lower daily water consumption by more than 4% each year, compared to 2013 baseline. Goal to reduce water use by 10% by 2017, compared to 2012 baseline.
- 25. 25 Food Manufacturer Ecolab solutions save customer significant water in its operations. Across the enterprise, 3D TRASAR™ technologies and water reuse projects will save: • 228 million gallons of water per year • $834K
- 26. 26 Ice Cream Plant Ecolab saves water and energy at an ice cream plant. Boiler management solution saves: • 11 million gallons of water • $67K on water and energy That’s 14,000 MM BTUs in energy and enough water for the daily use of more than 158K people.* *Based on average daily water use estimated by the American Water Works Association.
- 27. 27 Food Processor Cleaning program saved food processor energy and increased production time. Advantis™ FC Boiler provides lower-temperature cleaning process, excellent cleaning results, operational efficiencies and sustainability benefits • Refrigeration savings of 17,000 kWh • Water heating savings of 957 MM BTUs and $22K
- 28. PROGRESS…BUT NOT ENOUGH, AND NOT FAST ENOUGH 28
- 29. BIG BANG CATALYST 29 Regulation Market Pricing DRIVE INNOVATION DRIVE CONSERVATION
- 30. PRICE OF WATER: INVERSE TO RISKS Source: Fortune Magazine
- 31. ASSIGN A VALUE TO WATER Progressive companies are: Recognizing that the water bill does not reflect the true value of water. Assigning values that reflect the real importance of water to their ability to do business Analogy: valuing water as we value the cost of capital for an acquisition 31
- 32. 32 INTRODUCING A NEW WAY TO FACTOR WATER RISKS INTO BUSINESS DECISIONS
- 33. Partnership with Trucost, the Natural Capital Experts First-of-its-kind tool launched this week Web-based, easy to use online tool Provides site-specific, actionable information Available to all at no cost Scientific model developed by Trucost Draws upon multiple information sources 33
- 35. OUR INTERNAL STEPS Working to understand our risks by site Incorporating water picture in our site selection criteria Increasing water reduction goals, implementing first where it matters most Driving technology options to reduce water pressure 35
- 36. 36 "The frog does not drink up the pond in which he lives.“ - American Indian Saying