Amane currents: Winter 2024

Winter 2024

Volume 5. Issue 1

amane currents RISK READY Prepare your business for what’s ahead Prepare your business for what’s ahead

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amane currents

IN THIS ISSUE

Volume 5, Issue 1 | Winter 2024

Features 5

Upstream, downstream: Managing water risk from end-to-end What goes in, must come out. We explore why businesses must take action to understand and mitigate against both upstream and downstream water risks.

By: Ida Johansson and Mairi Dean

9

Investors thirst for their next big water investment

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Investors are eager for water deals but have faced stiff competition and high valuations. We’ll share where investors are likely to uncover the best opportunities in 2024.

By: Bastien Siméon

13

Tapped out: Exploring drinking water pollution in the U.S. The expectation of clean, safe tap water is not always the reality in the U.S. We take a look at three communities grappling with different water pollution challenges.

By: Mairead Helmes

17

...enhanced collaboration between companies, supply chains and local actors...will be critical for securing water access, reducing water security risk, enhancing reputation and contributing to wider environmental and social goals.

- Radhika Mehrotra Associate Director, Capital Markets, CDP Interview with Radhika Mehrotra

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21

Amane News

Risk factor - The many faces of industrial water risk

Amane Advisors to become part of Roland Berger

Water-related risks are manifesting in a variety of ways. We’ve outlined the different forms water threats may take so that your business can prepare.

The move will strengthen Roland Berger’s expertise and knowledge in water consulting, and it will now become one of the largest players in this field.

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Explained:

26

Event Radar Event Preview

Event Recaps

Check out the upcoming industry event calendar to find out where you may be able to spot some of our team members in early 2024.

Water goes mainstream at COP28

Exploring the state of refuse-derived fuel in the UK

31

33

Employee Spotlight

Year in Review

Featuring:

Highlighting some of the lesser-recognized milestones our team achieved in 2023.

Mairi Dean, Project Manager

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amane currents

WELCOME

Welcome to

Winter 2024

amane currents Welcome to 2024! It’s a new year, filled with new opportunities, as well as all too familiar challenges.

2023 was the hottest year on record, but if current trends continue, it could be the ‘coldest’ year from here on out.

Climate change continues to stress

Investors are thirsty for quality

existing

water

water

resources

and

deals

but

face

ample

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infrastructure, new regulations and

competition and soaring valuations.

emerging contaminants are upping

Our Partner Bastien Siméon offers

the stakes for businesses to act,

how investors are likely to uncover

and the number of investors eager

the best opportunities.

to increase their exposure to waterrelated opportunities outnumbers

Millions of Americans are being

the availability of attractive water

exposed to contaminants in their

deals.

drinking

water.

US-based

consultant Mairead Helmes looks at In essence, it’s a risky business

three communities grappling with

environment and leaders must be

different

proactive

challenges.

in

seeking

out

new

water

pollution

solutions and strategies to get ahead.

Corporate disclosure of water risks promotes transparency, but does it

This ‘risk ready’ issue of currents

result in more businesses taking

looks at risk from a number of

meaningful action? We’ll hear from

angles:

Radhika

Mehrotra,

about

the

changing

and ‘downstream’ water risks –

toward water risk.

The deal is set to be finalized in the first quarter and we look forward to sharing more details about what’s ahead!

As always, we wish you happy reading and welcome your ideas, input and feedback!

Associate

Director, Capital Markets at CDP Businesses face both ‘upstream’

This combination is a testament to the trust and extensive expertise and networks we’ve built in water over the last decade as well as the growing urgency for businesses, utilities, and government organizations to develop robust water strategies, implement and scale innovative climate adaptation solutions, and embed sustainability in their operations and practices.

attitudes

Sincerely,

many of which can have a material

3

impact on operations. In our lead

We’ve got all that plus the latest

article, Ida Johansson and Mairi

events and company updates –

Dean explore the need for a holistic

including

approach to water risk and why the

announcement

quality of the water businesses take

Advisors will soon become part of

in is just as important as the

Roland Berger, specifically to grow

wastewater they push back out.

its water consulting capabilities.

the that

exciting Amane

Bill Malarkey Managing Partner, North America

amane currents

This issue's contributors Mairi Dean

Bill Malarkey

Project Manager, Amane Advisors

Managing Partner, North America

Upstream, downstream: Managing water risk from end-to-end

Risk factor - The many faces of industrial water risk

Based in: Paris, France Email: mdean@amaneadvisors.com

Based in: Philadelphia, USA Email: bmalarkey@amaneadvisors.com

Bastien Siméon

Mairead Helmes

Partner, Amane Advisors

Tapped Out: Exploring drinking water pollution in the U.S. Based in: Philadelphia, USA Email: mhelmes@amaneadvisors.com

Investors thirst for their next big water investment Based in: Paris, France Email: bsimeon@amaneadvisors.com

Ida Johansson

Lauren Trucksess

Principal, Amane Advisors

Marketing Manager, Amane Advisors Risk factor - The many faces of industrial water risk

Upstream, downstream: Managing water risk from end-to-end

Based in: Philadelphia, USA Email: ltrucksess@amaneadvisors.com

Based in: Singapore Email: ijohansson@amaneadvisors.com

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Project Manager, Amane Advisors

amane currents is published quarterly by Amane Advisors in Summer, Fall, Winter and Spring. Amane Advisors assumes no responsibility for unsolicited manuscripts or images.

Editorial Director

Bill Malarkey

bmalarkey@amaneadvisors.com

Managing Editor

Lauren Trucksess

ltrucksess@amaneadvisors.com

Feedback

2 currents@amaneadvisors.com 2

Visit us on

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amane currents

UPSTREAM DOWNSTREAM

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R E T A S M P U DO M WNSTREA Managing water risk from end-to-end

Water-related risks have the potential to impact almost every aspect of your business – necessitating a holistic mitigation approach. In this article, we look at the importance of managing both upstream and downstream challenges, and why the quality of the water you take it is just as important as the wastewater you push back out.

By: Ida Johansson, Principal and Mairi Dean, Project Manager

5

amane currents There’s an old story with which you may be familiar; recounting a little Dutch boy who saved his city from a massive flood. After noticing a crack in the dike, the boy uses his finger to plug the hole until help arrives, preventing the wall from collapsing beneath the weight of the sea.

The current quantity or quality of water you’ve become accustomed to may not be what is available in the future – for a variety of reasons.

Drought may cause the feeder rivers or upstream sub-basins from which your source receives water to dry up or pollution may impact the quality of water you receive. New regulations may increase the costs of accessing the water you need or limit how much you can withdraw.

It may be a children’s tale, but the story also has relevance for businesses today. The world now faces other water threats – not just from flooding, but from drought and water scarcity, pollution, ageing

hero for preventing an imminent catastrophe, businesses that focus only on ‘plugging holes’ in the context of water risk are unlikely to receive similar commendations.

The world of water is growing riskier by the day. More than a third of the world’s largest aquifers are already depleted to the extent that they threaten regional water availability.

By 2030 – just a few short years way – experts predict a 40% shortfall in global water supply and by 2050, it’s estimated that 75% of the world’s population may face drought, with the other 25% experiencing direct flood risks.

To succeed in this context, businesses must look beyond their own immediate needs and consider the wider context of water risk for their business and their relationship with the water basins on which they depend. To best understand the potential impact, there are two major factors to consider; first, your business’s ability to ensure the inflow of quality water and second, its ability to mitigate the impact of wastewater effluent it puts back out.

Photo: Statues immortalize the fictional character. Credit: Uberprutser - Own work, CC BY-SA 3.0

Ensuring your future water security

basin on which it relies on could be under high water stress. Leaders who keep their eyes focused ‘inside the fence’ are likely to be caught off guard, particularly when more stringent regulations come into effect.

Water is the lifeblood of countless

For instance, China will strengthen its

industrial steadfast

processes. Securing a and high-quality water

water use efficiency targets as part of its “three red lines” policy for

supply is paramount for growing enterprises. Understandably, this is where most businesses start when it

controlling the development and utilization of water resources, referring

comes to water risk; ensuring they have access to a reliable source of

to the maximum water use per economic value of production. By 2030, water consumption per ten

fresh water that meets their quality standards.

thousand yuan of industrial added value will be reduced to less than 40

Most primarily focus on ‘on-site’ water issues, such as upgrading aging infrastructure, adopting improved processes or new technologies to optimize the water intensity of products, fixing leaks to minimize losses, and treating intake water to meet process requirements.

But businesses have a misplaced confidence in the continued availability of water as utilities have generally always provided it and the costs have been kept low. The reality is that it might not always be case.

Water cannot be taken for granted as a ‘business as usual’ resource.

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water infrastructure, growing water demand, and climate change. While the boy in the story was deemed a

In short, even if your individual site’s risk profile appears to be low; the

cubic meters. This will force the hand of any business that’s not already taking action to increase its water efficiency.

Another example is the ‘double materiality assessment’ under the EU’s Corporate Sustainability Reporting Directive (CSRD), whereby companies reporting on sustainability need to assess how their actions impact people and the environment, as well as the financial impact on its business.

This will push companies to establish mitigation actions to lessen the potential financial burden of water scarcity, the degradation of water sources, or flooding.

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In this landscape, water security (in

community and their own operational

operations and reputation. Around

terms of access to adequate water supplies) demands that leaders look

security.

80% of the world’s wastewater is discharged back to the environment

‘outside the fence’ to consider the needs of, and the stressors placed on, the water basins on which they

Toyota has defined their water strategy based on conservation, quality, and ecosystems, and has

without any treatment.

rely. With a full picture of the potential risks, both immediate and

financially supported The Nature Conservancy (TNC) on a number of

to CDP on their water risk, (a critical early step on the pathway to water

long-term, businesses can then begin to build true water resilience;

projects to improve basin health.

leadership), 42% don’t monitor their wastewater discharge at all and only

ensuring they have the flexibility and redundancies in place to withstand external shocks and adapt to a

The company provided $100,000 in funding towards the restoration of the Colorado River Delta to help

12% set targets related to water pollution in 2022.

changing climate and volatile market conditions.

secure sufficient water and reliable supplies for people and nature through work with local partners, cities, and the agricultural sector.

Ignoring your wastewater treatment and discharge brings significant risks across various aspects of your business. Untreated discharge can pollute water sources and the surrounding environment; potentially resulting in reputational damage, penalties, fines, or lost shareholder value.

There are many potential solutions companies can explore to ensure the security of the water basins upon which they rely. Anheuser-Busch InBev, a Belgian brewing company, tailors water solutions to local basin needs, using a seven-step watershed management process that starts with stakeholder outreach.

In Peru, they have worked to restore 13km of ancestral water channels and infiltration systems (amunas) in the Rimac basin (as of 2021). The move also improves water availability in the dry season, benefiting the local

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UPSTREAM DOWNSTREAM

Managing your wastewater effluent What goes in, must come out, which is why the challenge of effectively managing your water risk extends beyond mere consumption.

Wastewater effluent is a pivotal factor in reducing a business’s overall water risk, yet many companies fail to consider wastewater discharge as a potential risk to their business

In fact, of the companies that report

Most importantly, unmanaged wastewater discharge carries serious environmental and health risks, with toxic pollutants capable of harming aquatic life, damaging ecosystems, and potentially threatening downstream communities by reducing water quality and spreading waterborne diseases.

amane currents others, and initiate collective action to address potential impacts of wastewater on our environment.

supportive of aquatic life before being returned to nature or the local municipality.

There are a few organizations working toward ‘best practice’ standards for wastewater discharge.

Supported by a $1bn investment, this has shifted wastewater treatment to become a standard operating requirement at Coca-Cola, with 99% of plants being served by onsite wastewater treatment plants.

Many companies start by trying to reduce the overall volume of discharge, typically by increasing water recycling and reuse initiatives.

It is also important to minimize the pollutants in the effluent, by reviewing your industrial processes,

In its 2030 strategy, fashion retailer H&M Group set its commitment to improving and monitoring discharge quality, including across its suppliers.

The plan focuses on the impact of its effluent on receiving water bodies (both direct to nature or via wastewater treatment providers) and

the chemicals used and by sourcing alternative ingredients, where

more broadly, decoupling its growth from its water use.

possible.

In addition, Coca-Cola engages in outside-the-fence projects to replenish the water used in its projects to communities and nature, such as via watershed protection and WASH activities.

Largely driven by significant water

Companies who are well-informed about their external water risk picture

For those who are compliant with existing regulations, the challenge is maintaining compliance in the face of

use and its commitment to replenishing 100% of the water needed to make its finished

and are ahead of new regulatory requirements, such as the EU CSRD, are well-positioned to not only

changing regulations and market conditions. Your sites may be 100%

beverages, Coca-Cola has developed water management goals that,

mitigate water risk and ensure operational continuity but to become

compliant according to today’s wastewater treatment management

incidentally, result in strong wastewater management practices

leaders in showcasing best practices to counterparts. By considering the

standards, however, you may face new disclosure requirements and/or regulations in the future relating to

and a circular, ‘outside-the-fence’ approach.

full water cycle, both within and beyond the operational boundary, companies can scale their impact and

emerging contaminants that require actions to comply.

Water used in its manufacturing process is treated to a quality

play an instrumental role in collective action to influence our environment

will

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For those who have yet to prioritize managing their wastewater or who are operating in less regulated environments, the focus should be taking responsibility for your effluent – whether you are discharging to the environment or a third-party waste handler.

positively.

New regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD) begin to take effect this year and require greater focus and commitment to managing and monitoring both water consumption and wastewater discharge, as specified in the detailed reporting guidelines (European Sustainability Reporting Standards, ESRS).

Given the lack of attention that has been given to wastewater historically, this change presents an opportunity for companies to lead, establish best practices to become role models for

###

Your sites may be 100% compliant according to today’s wastewater treatment management standards, however, you may face new disclosure requirements and/or regulations in the future relating to emerging contaminants that will require actions to comply.”

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amane currents

WATER INVESTING

Investors thirst for their next big water investment 4202 RETNIW | YDAER KSIR Investor interest in the water sector continues to grow, but 2023 saw a drop in the total number of water deals, and fierce competition with high valuations for the ones that were on the table. In this article, we’ll look at some of the reasons behind this competition and highlight where opportunities can be found in the year ahead.

By: Bastien Siméon, Partner

9

amane currents In 2023, the M&A market was significantly hindered by recession concerns, the rising cost of capital, and general economic uncertainty.

While the overall number of water deals declined significantly compared to previous years, we still saw circa 300 transactions through October of this year, likely buoyed by a growing demand for environmental, social, and governance (ESG) initiatives and the availability of ‘dry powder’ investment capital.

Several mega-deals were closed in 2023 – most notably the acquisition of Evoqua by Xylem in an all-stock Veolia also made headlines for its sale of SADE, its subsidiary specialized in the construction and rehabilitation of water and infrastructure networks. Photographer: Nathan Laine/Bloomberg

$7.5 billion. The merger aims to address global water challenges by

combining Xylem's expertise in water

opportunities,

solutions with Evoqua's advanced treatment capabilities.

significant availability of capital to be invested, and an illiquid secondary

In Europe, Veolia continued to divest

market resulted in a shortage of opportunities and higher valuations

part of its activities as part of the Suez acquisition agreement, with Italgas acquiring its interests in longterm concession companies running water services in Lazio, Campania, and Sicily for more than €100m.

Moreover, Veolia sold SADE, its subsidiary specialized in the construction and rehabilitation of water and infrastructure networks.

Xylem’s acquisition of Evoqua was the biggest water deal in 2023. (Top to bottom: Patrick Decker, Former President and CEO of Xylem and Ron Keating, Evoqua’s then President and CEO.

Whether seeking to invest in corporates or operating infrastructure assets, strong investor appetite for the water sector translated into fierce competition in 2023, particularly in more mature markets such as the United States and Western Europe, as many investors focus more on OECD countries.

coupled

with

the

across the board.

Let’s look at a few reasons behind this trend and explore the potential implications for investors as we move

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transaction that reflected an implied enterprise value of approximately

into 2024, with a specific focus on infrastructure assets.

The competition heats up One of the factors driving increased competition to invest in infrastructure assets is that they are appealing to a wide group of investors.

They yield long term predictable cash flows, are a natural hedge against inflation, and tick many of the ESG criteria asset managers increasingly need to meet - especially if the assets can be linked to a more efficient use of resources (e.g. leakage reduction or treated wastewater reuse).

Particularly for infrastructure assets, we noticed that the attractiveness of

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WATER INVESTING

Annualized returns by type of equity

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Source: Global Infrastructure Hub

And while they might not be the star

also

performers in terms of ROI, infrastructure assets are far less

opportunities and increased investor competition. Owners tend to hold on

affected by global shocks such as COVID-19, rapid inflation or energy

to their assets and the secondary market in water is far less liquid than

and supply chain disruptions caused by the Russia-Ukraine war.

for other types of infrastructures (such as energy).

In particular, unlisted infrastructure equities provide better downside protection and present risk-return characteristics similar to bonds.

Strategic corporate investors often remain for the full contract term and will typically have a role in the operation and maintenance of the facilities; whilst financial investors will generally rotate after 7 to 10 years (depending on their fund life span).

In 2022, listed equities overall provided negative returns of -18% while unlisted infrastructure equities still provided a positive return of 6% (See chart).

The length of the investment cycle within water infrastructure assets has

11

reduced

secondary

market

These ‘holds’ limit the volume of activity that can take place in any given year.

Implications for the year ahead Amidst these conditions, it is not surprising that owners have increasingly begun to organize a competitive process to drive up valuations. As a result, we’ve seen fewer successful bilateral transactions across the market, the exception being when there is a strong strategic rationale for both parties to reach an agreement.

For instance, when a buyer brings additional technical or operational expertise or access to new markets, and the transaction allows both sides to leverage synergies and leads to a broader long-term partnership between the buyer and the seller.

amane currents

In this competitive and challenging market, new investment opportunities are more likely to be found resulting from innovative business models and clever partnerships between strategics and financial investors.

- Bastien Siméon, Amane Advisors

found

of opportunities is that investors are stretching the definition of

business models and clever partnerships between strategics and

getting a return by sharing the revenues from the additional volumes

infrastructure assets to include anything with a somewhat long-term, predictable revenue stream – even if

financial investors.

of water sold to end users.

For instance, most single water assets

This

the opportunity is mostly servicesbased rather than asset-based.

are small to medium in size, as it’s a very localized and fragmented sector.

opportunities for both strategics and financial investors, allowing to meet

Overall,

naturally

To reach an attractive scale, asset managers are increasingly looking for

challenges and evolutions in the water sector (e.g. more stringent regulations

result in higher valuations, especially in more mature markets where the regulatory and economic environment

platforms they can grow; bundling small assets together and deploying more CAPEX over time.

requiring higher capex).

these

dynamics

are stable but the opportunities very few.

resulting

from

innovative

This is an opportunity for strategics to create innovative business models

This is typically seen in the contracted

that allow them to tap this available

O&M market in the United States, where any operator being put up for sale will trigger a bidding frenzy, especially if they are of scale.

Examples include New Mountain Capital’s acquisitions of Inframark in 2020 and ESG in 2021 at valuations of c. 13x and c. 15x EBITDA respectively.

funding market and focus on their core expertise.

Finding new opportunities in beyond

The return on investment could come in the form of additional revenues generated by the sale of the treated effluents.

investment 2024 and

In this competitive and challenging market, new investment opportunities are more likely to be

water

distribution

can

networks

result

###

in

and

win-win

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Another consequence of this shortage

One could, for example, imagine a platform to finance add-ons to existing wastewater treatment plants in order to upgrade them and allow the treated wastewater to be reused.

Another opportunity could be financing CAPEX to reduce leaks in

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amane currents

TAPPED OUT

Tapped Out Exploring drinking water pollution across the U.S.

4202 RETNIW | YDAER KSIR In the United States, the expectation of clean and safe tap water is, unfortunately, not always the reality. A complex combination of factors is exposing millions across the country to drinking water contaminants – many with the potential to cause significant health problems. In this article, we spotlight three different regions that are grappling with different drinking water pollution problems.

By: Mairead Helmes, Project Manager

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amane currents

A complex combination of factors – including chronic underinvestment, aging infrastructure, population growth, pressure from changing weather patterns, and socioeconomic issues – has resulted in conditions in which industrial agricultural runoff,

levels in water. The problem is especially prevalent in older urban and industrial centers such as New York City, Chicago, Detroit, and Los Angeles, or areas in which houses were built before the ban on lead pipes in 1983.

One lesser-known example is Buffalo, New York, where a report by the National Resources Defense Council stated that more than half of the city’s 68,000 water service lines were projected to contain lead.

Lead is a neurotoxin, and while it’s

Photo: Old lead pipe in need of replacing

total replacement of impacted lines is the best solution. However, this comes with its own challenges.

Replacing outdated infrastructure is expensive and time-consuming and it’s not always easy to tell which lines

discharge, and sewage

harmful to everyone, children are particularly at risk. Early exposure to

overflows pollute clean water sources and threaten public health in

lead is shown to disrupt organ development, including brain, bone,

are most impacted, especially if some lines are privately owned. The city has recently partnered with

locations across the country. The potential impact of these contaminants can be devastating –

and cardiovascular development, potentially leading to permanent cognitive deficiencies, behavioral

BlueConduit to use data analytics and machine learning to map its pipes and has been actively working

ranging from acute symptoms to chronic, irreversible health problems.

issues, and chronic illnesses.

to replace them. Still, as authorities have suggested, significant funding will be required.

Without significant investment in our

The New York State Health Department says just under 6% of

nation’s water infrastructure, Americans are likely to experience increasing threats from existing and

Buffalo children tested for elevated blood lead levels between 2000 and 2014 – that’s three times the rate in

Buffalo is not alone in this challenge.

Today, more than nine million American households connect to

emerging contaminants.

Flint.

water through lead pipes and service

We’re shining a light on three regions grappling with different drinking water pollution problems to highlight the challenges being experienced across the country, and some of the potential solutions.

Ten to twenty years later, it seems authorities are yet to make much progress in replacing potentially harmful water lines. Census data found that Buffalo had the oldest housing stock of any major city in America as of 2019, and news reports dated from last June state that only 1,700 of the more than 40,000 potentially problematic water service lines had been replaced so far. Water authorities estimated that replacing the remaining lines could take 20 years and cost up to $500 million.

Lead contamination in Buffalo, New York When you think about the issue of lead contamination, the city of Flint, Michigan often comes to mind. But while this is one of the most wellrecognized recent examples in the United States, the reality is that many cities struggle with elevated lead

With lead service lines being the main culprit behind lead contamination,

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In most parts of the United States, there is an expectation that clean, safe water comes out of the tap.

Consumers trust that water is suitable for drinking, washing dishes, or showering – and that it’s safe for their children and pets. But in some areas, however, that expectation does not meet reality.

lines and children, toddlers, and teenagers in 400,000 schools and childcare facilities are at risk of exposure to lead in their water.

Recent legislative action may help accelerate the transition.

In 2021, the Environmental Protection Agency (EPA) allocated $3 billion in Bipartisan Infrastructure Law funding for lead service line replacement.

Furthermore, in November, the EPA announced a proposal to strengthen its Lead and Copper Rule, which would require water systems across the country to replace lead service lines within 10 years.

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amane currents

TAPPED OUT

High nitrate levels in Southeast Minnesota Minnesota is known as the ‘Land of 10,000 lakes’ but while its bodies of water may look pristine, experts have found widespread evidence of a potentially dangerous contaminant.

In the state’s Karst region, authorities have found high levels of nitrates in the public water systems and underground drinking water sources, such as wells – potentially impacting up to 390,000 people.

Nitrate

is

not

an

emerging

contaminant; it is a naturally occurring compound from processes such as plant decay and can be

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present at healthy levels in food such as carrots. When produced in nature, the levels are usually less than 3 mg/L,

however,

in

Minnesota,

authorities have found levels exceeding the maximum contaminant level of 10mg/L. Consuming too much nitrate impacts oxygen levels in the body and can cause

methemoglobinemia

(also

known as blue baby syndrome),

which can lead to illness, cramps, vomiting, and even death. Those with compromised immune systems are most at risk.

Nitrates are also harmful to the environment, resulting in algal blooms that can kill off fish and other marine life. In Minnesota, algal blooms have impacted more than 900,000 lakes and 93 coastline miles.

These blooms also impact tourism, with an EPA study finding that algal blooms resulting from nutrient pollution cost the tourism industry $1 billion a year in losses.

High nitrate levels (above 10mg/L) are

operations such as pig farms.

often the result of discharge from sewage systems, runoff from

As always, new regulations help drive

agriculture

soil,

change but they’re not a silver bullet.

wastewater, landfills, animal feedlots, and septic systems. Therein lies the

It’s worth considering how new technology could also help track and

challenge of removing or preventing

reduce nutrient and sediment runoff

excess nitrates in water; it can be

from agricultural lands.

difficult to pinpoint the exact source of the problem.

There is a long road ahead, however,

or

fertilized

as other funding and solutions are In Southeast Minnesota, the problem is exacerbated by the area’s porous

needed; voluntary monitoring programs will not be strong enough to

geology;

change the tide.

the

region

is

vulnerable to groundwater

Photo: Water flowing across a farm field after heavy rain

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contamination produced by agricultural runoff. This “non-point source pollution” is the leading cause of water quality problems. Since the EPA does not have any regulations to enforce here, they rely on economic incentives to landowners such as subsidies to promote pollution mitigation efforts as well as a volunteer monitoring program. For Minnesota, the EPA has recommended additional measures such as modifications for the state’s Nutrient Management guidelines to change the land application of fertilizer as well as the NPDES permits for concentrated animal feeding

uniquely

amane currents PFAS in Brunswick County, North Carolina Perand polyfluorinated alkyl substances, better known as PFAS, have garnered global attention in recent years. Initially created in the 1940s for use in fire and water repellants, these “forever” chemicals have been used for decades in household products, non-stick cookware, firefighting foams, food packaging, and cosmetics.

inside human bodies. They have even been found in infants, due to in utero exposure. Overexposure to this chemical has been linked to health problems such as kidney and testicular cancer as well as reproductive, liver, and thyroid issues, with more ailments being discovered yearly.

While PFAS is found across the country, Brunswick County in North Carolina has some of the highest rates of PFAS in water, including the presence of GenX, a man‐made chemical used in manufacturing nonstick coatings and for other purposes, in the Cape Fear River.

Samples taken in 2019 showed PFAS concentrates of 185.9ppt, with the EPA recommended limit being 4 ppt.

Unfortunately, the impact of this increased exposure may be evident in the region’s cancer rates, which at 276 cancer deaths per 100,000 are much higher than the national average of 149.4.

Since the initial discovery of GenX in 2016, Brunswick County has taken action to mitigate the contamination by partnering with CDM Smith to implement advanced reverse osmosis

Discharging waste into the Cape Fear River Credit: Jeremy Lange

water

water

will cost $772 million a year for

treatment plant to reduce PFAS to near undetectable levels. The plant is

treatment

into

its

drinking water systems to comply with proposed new guidelines for

expected to be finished in December 2024. Until then, point-of-use water systems can be used, although this

“forever chemicals” in drinking water, the question remains, where will that money come from, and who is footing

may be cost-prohibitive for many households.

the bill?

The EPA is in the process of setting up

The multifaceted nature of water pollution demands a comprehensive

a National Primary Drinking Water regulation for six PFAS chemicals, but residents in many towns, cities, and

and collaborative approach that involves governmental bodies, communities, and private entities.

states across the country already have been exposed to high PFAS levels for years.

Addressing these issues requires innovative technological solutions, sustained financial investment,

More immediate investment is needed for utilities to mitigate the damage, especially in high PFAS areas, but with the EPA estimating it

stringent regulations, and a collective commitment to safeguard the fundamental right to clean water for all citizens. ###

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Over time, the chemicals have slowly infiltrated natural environments and

The multifaceted nature of water pollution demands a comprehensive and collaborative approach that involves governmental bodies, communities, and private entities.”

- Mairead Helmes, Amane Advisors

16

amane currents

INTERVIEW

Calculated Risk Understanding the role of disclosure in encouraging investment in water resilience Interview with Radhika Mehrotra, Associate Director, Capital Markets, CDP

New government regulations are expanding efforts to protect water resources and improve resilience, but given the scope and increasing severity of water risk, it’s clear that strong private sector leadership is critical to accelerating action and scaling impact. CDP operates a global disclosure system to help investors, companies, cities, states, and regions manage their environmental impacts; promoting greater transparency and accountability.

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We spoke with Radhika Mehrotra, Associate Director, Capital Markets at CDP about changing attitudes toward water risk, how businesses are striving to get a handle on their risks, and key drivers for action in the year ahead.

Amane: CDP’s latest Global Water Report (2022) noted an 85% increase in disclosure of private sector water data over the last five years.

What role have investors been playing in encouraging further disclosure from across the private sector?

Ms. Mehrotra: Investor interest in water security has expanded, reflected in part, by the private sector callto-action during the 2023 UN Water Conference, the growing focus on nature-related impacts and dependencies, and its role in meeting net zero ambitions.

In parallel, more financial sector players, particularly banks, are at early stages of understanding and assessing water related risks in their own financing and lending portfolios.

Based on our analysis of financial sector disclosures in 2022, only 10% of 275 financial institutions were able to measure their portfolio’s water impact. The primary challenge was data availability. With the launch of the Task Force on Nature Related Disclosures (TNFD) Framework, the urgency for corporate disclosures on water related risks and opportunities, management processes and integration with strategic business planning will only grow.

Disclosure numbers are also continuing to grow. In 2023, a little over 4,800 companies disclosed waterrelated data through CDP, including 43% of the FTSE 100 and 41% of the S&P 500.

Investor intervention ranges from direct engagement to financial innovations through sustainability-linked loans. In 2022, CDP’s Non-Disclosure Campaign, through which financial institutions can directly engage with non-disclosing companies on providing transparency through CDP’s water disclosure, saw a 50% increase in companies engaged.

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Source: CDP

amane currents

Ms. Mehrotra: The CDP questionnaire takes a comprehensive view of corporate water management across risk exposure, water-related targets, governance, strategy integration, and water-related opportunities.

The companies that we engage with are identified based on a materiality assessment that ranks industrial activities according to their potential impact on water quantity and quality. Investors that are at early stages of building their awareness use this assessment to identify priority sectors and companies for more targeted engagement and analysis.

Recent Findings from CDP

85%

increase in disclosure over the last five years

8,477

companies were requested to disclose water data by their investors or business customers

For a deeper company and sector analysis, investors typically look at a range of quantitative and qualitative indicators to assess companies’ resiliency – primarily water accounting metrics such as withdrawals, including facility level disclosures, localized water risk assessments, and water-related opportunities across the business.

Financial products linked to water efficiency are also emerging. In 2022, Spanish Power Utility company Iberdola signed a sustainable credit facility for €2.5 billion through a syndicated loan led by BBVA. Two sustainability criteria assigned for this loan included a) Iberdola meeting its reduction targets on water consumption; and b) disclosing its water strategy and metrics annually through CDP while maintaining its evaluation score.

Amane: What’s the relationship between disclosure and companies acting on water?

Ms. Mehrotra: CDP’s best practice questionnaires and standardized annual disclosure process build discipline and accountability. The insights from the annual dataset enable not only investors but also companies themselves to benchmark against their peers and monitor their progress.

US$436bn

in water-related cost savings

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Amane: What types of data are proving to be the most useful to investors in assessing water risk in investment opportunities?

and growth opportunities have been reported by businesses disclosing to CDP.

4X

more opportunities for respondents who integrate water into business strategy

Findings from CDP’s Global Water Report 2022, published in March 2023.

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amane currents

INTERVIEW

From our 2022 dataset we can already see growing ambition – 58% of companies reported that they are maintaining or reducing their water withdrawals and 63% completed a water related risk assessment. This is also aiding corporate decision-making and financial benefits with up to US$79 billion of investment identified to reduce water risks.

For instance, in 2022, Nissan Motor Corporation identified water-related financial risk of US$190 million from water stress at specific facilities in Mexico and India. The company set and met targets to reduce water withdrawals by 23% per vehicle produced which prompted investments in wastewater recycling and rainwater harvesting, and also contributed to lower annual water bills of approximately US$4 million per year.

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Amane: What tactics are you seeing corporates adopt to improve water efficiency, reduce pollution or to better integrate water into their strategy?

Ms. Mehrotra: Improving water efficiency in both processes and products is the most common business opportunity, identified by 53% of companies across all sectors in 2022. This is driven by consumer expectations, regulatory oversight and business resiliency in the face of extreme weather events.

For example, Fujifilm is leveraging technological innovations to expand into water filtration using their ion-exchange membranes that are designed to contribute to the treatment of 35 million tons of water per year by 2030.

L’Oreal recognizes consumer preferences as a key driver of product innovation such as their ‘Waterless’ program designed to reduce the end users’ water footprint by 25%. The company is also developing labels that carry the environmental and social impacts of their products, such as water stress and ecotoxicity.

Water-efficiency labels are expected to be introduced in some markets such as the U.K. by 2025 to help drive down water related costs.

19

Amane: Many businesses tend to limit their water strategy by focusing solely on their internal operations.

Do you see a need for more businesses to think ‘beyond the fence’ and work more collaboratively with external stakeholders on water issues?

Ms. Mehrotra: Absolutely. Companies are beginning to look more outwardly at water strategy, particularly in two specific areas.

First, companies are increasingly aware that the health of the river basin is synonymous with the health of their business, and that collaborating with others who rely on river basins may be the most efficient and effective means by which to achieve positive change. This is also acknowledged in the Task Force on Nature Related Disclosures recommendations on stakeholder engagement and Science Based Targets for Nature guidance.

Second, from a supply chain perspective, companies are realizing that it is in the early stages of the value chain where most impacts, dependencies, and risks lie.

Early analysis from CDP’s 2023 Water Dataset indicates that only half of the companies included their supply chains in water risk assessments.

The bottom line is that enhanced collaboration between companies, supply chains and local actors including indigenous peoples other local communities, will be critical for securing water access, reducing water security risk, enhancing reputation and contributing to wider environmental and social goals.

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Amane: From severe heat and drought conditions to historic flooding, 2023 was a harsh reminder of the ways in which water can and will continue to impact businesses.

What are some of the more positive headlines or milestones that give you hope for the future?

MMs. Mehrotra: There were several market signals that reinforced the mainstreaming of water management.

Some of these include the 2023 UN Water Conference, where for the first time in 46 years, heads of state met to discuss international water policy. Also, in 2022, water was included on the official agenda at COP27 for

In the financial sector, we saw the Network for Greening the Financial System (NGFS) acknowledge and make recommendations on nature-related economic and financial risks, and the launch of the TNFD

View of the General Assembly Hall during the Opening Ceremony of the UN Water Conference 2023

framework – both of which are valuable to further drive integration of water security within risk management.

Amane: What are some of the key drivers or influencing factors you’re keeping an eye on as we move into 2024?

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the first time.

Ms. Mehrotra: 2024 has many firsts – the TNFD framework is being piloted by companies and financial institutions and will galvanize water, deforestation, biodiversity, ocean health disclosures and support the transition to net zero.

Also, the Corporate Sustainability Reporting Directive (CSRD) comes into effect in Europe requiring disclosure on climate change as well as water, biodiversity, and circular economy.

We are excited to work with our stakeholders on streamlining these disclosures through the CDP questionnaire to further build on our water and deforestation programs. And, of course, please keep an eye out for the next CDP Global Water Report, due out this spring.

To learn more visit CDP’s website at cdp.net

###

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amane currents

EXPLAINER

R I S K F A C T OR The many faces of industrial water risk In a time marked by an unprecedented surge in global water demand, coupled with expanding urban populations and the overexploitation of freshwater resources, the threat of water risk looms as a critical challenge with far-reaching consequences. Here, we outline some of the potential threats and highlight the urgent need for sustainable water management practices.

By: Bill Malarkey and Lauren Trucksess

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Clean, high-quality water is on track to become an increasingly scarce

Here, we outline the key risk categories with the goal of highlighting the urgent need for sustainable water management practices and the pivotal role

commodity. At the current pace of industrial activity, we can expect a

businesses must play in securing a resilient future.

53% shortfall in global water supply by 2050.

For businesses, water risk manifests in a variety of ways across several key categories:

Simultaneously,

many

cities

are

dealing with the effects of climate change, including increasingly frequent and intense weather events.

These problems are not only a concern for individuals and communities but pose a profound threat to business operations worldwide.

Water risk is not confined to arid regions or distant future scenarios; it is a pressing issue that has the potential to disrupt businesses across industries here and now.

From manufacturing and agriculture to technology and hospitality, enterprises face multifaceted risks stemming from inadequate access to a steady supply of clean water and the effects of unpredictable weather.

The business impact will manifest in various ways, ranging from operational disruptions and increased production costs to reputational damage and regulatory challenges.

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Physical Risks Encompassing threats arising from the direct impact of water-related events, such as floods, droughts, and declining water quality.

Financial Risks Potential monetary losses resulting from water-related challenges, including increased operational costs, insurance challenges, and the devaluation of assets.

Operational Risks Disruptions to business processes and logistics caused by changes in water availability, leading to decreased efficiency and increased costs.

Regulatory Risks Challenges arising from changing water-related regulations, potential legal consequences, and uncertainties surrounding government action.

Reputational Risks Damage to a company's image and brand equity due to consumer concerns, community opposition, and water-related litigation.

Workforce Risks Challenges related to employee productivity, well-being, and social equity concerns.

amane currents Physical Risks Drought and Water Quality Concerns: Water scarcity due to prolonged droughts can lead to reduced water availability for operations - affecting agricultural processes and energy generation. Declining water quality poses health risks to employees and communities, potentially leading to increased healthcare costs and reputational damage.

Flooding & Severe Weather Impacts:

Financial Risks Price Volatility: Fluctuations in water availability can lead to price volatility for goods and services. Companies relying heavily on water-intensive processes may experience increased production costs - affecting profit margins and competitiveness.

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Beyond the immediate damage to your infrastructure and operational equipment, flooding can also disrupt supply chains; leading to production delays and increased recovery costs. It may also necessitate investments in resilient infrastructure and flood defenses to mitigate future risks.

Insurance Challenges: Water-related damage may pose challenges for businesses in obtaining insurance coverage, especially in regions prone to floods or other future water-related disasters.

Investor Relations Risk: Investors are increasingly considering water-related risks and sustainability in their investment decisions. Poor water management practices can negatively impact a business’ standing in Environmental, Social, Governance (ESG) evaluations and hinder efforts to raise capital or finance new opportunities.

22

amane currents

EXPLAINER

Replenish & restore Operational Risks

Supply Chain Vulnerability:

Dependency on suppliers in water-stressed regions increases the vulnerability of the supply chain. Inconsistencies or reductions in the availability of raw materials or ingredients due to water scarcity can result in increased costs and cause production or shipping delays.

By:Production Bill Malarkey and Lauren Trucksess Zone Changes: Shifting weather patterns or water availability may necessitate changes in production zones. This could result in increased transportation costs, the need for new infrastructure investment, and potential disruptions to established production processes; affecting overall operational efficiency.

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Stranded Assets: Investments in water-intensive assets may become stranded due to changing environmental conditions or regulatory requirements. This poses financial risks as companies may need to write down the value of stranded assets or invest in costly retrofits.

Business Continuity Risk: Inadequate contingency planning for water-related disruptions may result in extended downtime and exacerbate near-term financial losses.

Innovation Risk: Failure to adapt and invest in innovative, water-efficient technologies or infrastructure may lead to increased operational costs and resource inefficiency and can hinder future growth.

23

amane currents Regulatory Risks Government Action: Failure to anticipate and adapt to changing regulations related to water use, allocation, or quality standards may result in legal and financial repercussions, - potentially even losing the license to operate.

Legal Consequences: Non-compliance with water-related regulations can lead to legal action, fines, and sanctions.

Consumer Perception: As corporate sustainability commitments become increasingly important, consumer concerns about a company's water management practices can negatively impact brand image and loyalty.

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Reputational Risks

Community Opposition: Resistance from local communities to projects perceived as waterInsurance intensive orChallenges: environmentally harmful can lead to broader reputational damage.

Workforce Risks Employee Productivity: Water scarcity can affect employee well-being and productivity, especially in regions facing water stress. Implementing water conservation measures and ensuring access to clean water for employees can contribute to a healthier and more engaged workforce.

24

amane currents

EVENT RADAR

Event Radar The Amane team has been fortunate to participate and support dozens of incredible industry events throughout this year and our calendars remain full through to the end of 2023.

Here’s a look at some of the events taking place across water, resource recovery, and energy recovery and where you may be able to spot some of our team members in early 2024.

MAR

Amsterdam, Netherlands

MAR

21 23

Africa's Green Economy Summit

06 Global Smart Water Metering 2024 07 London, UK

MAR

Conference on Desalination for 12 Intl the Green Hydrogen Economy 14 Frankfurt, Germany

04 Membrane Technology Conference - & Exposition 2024 07 West Palm Beach, Florida

Symposium: Removing 11 WateReuse - Barriers, Elevating Opportunities 14 Denver, Colorado

MAR

JAN JAN

24 WWETT 2024 27 Indianapolis, Indiana

FEB

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22 Oman Water Week 24 Muscat, Oman

FEB

Upcoming events

International Conf & Exhibition 13 6th - Desalination Latin America 14 Santiago, Chile

Be sure to get in touch with our team if you would like to connect at an upcoming event!

25

amane currents Event Recap

Exploring the state of refuse-derived fuel in the UK Professionals from across the waste management industry descended on London in November to discuss the latest trends and technologies impacting the refuse-derived fuel (RDF) sector.

The annual RDF Conference brought together industry leaders and experts to explore key policy changes, market dynamics, technological innovations,

From advances in waste sorting and pre-treatment, to sustainable waste shipping logistics and the international importing and exporting of waste, the conference covered many of the opportunities and

A look at the RDF Conferenence 2023. Photo by letsrecycle.com

challenges facing the sector.

as a means of energy production,

“The

The UK is reliant on exports to

(especially in light of growing concerns over energy security) as

predominantly driven by the looming UK and EU ETS, coinciding with an

around 10 million tons of “Green List”

well as the latest efforts to decarbonize waste shipments ahead

increase in country self-sufficiency; with ~ 19 EfW plants under

waste and another 2.1 million tons of notifiable waste.

Experts say,

of new regulations under the EU ETS 2024.

construction in the UK between 20232027 set to increase capacity to ~20.7Mt.”

manage

its

waste,

shipping

out

however, that illegal exports result in more than £17 million in environmental and social costs overseas a year and undermine the legitimacy of the waste sector.

Regulatory changes will take effect from April 2025, including ushering in new charges and a ban on plastic exports to non-OECD countries, among other updates.

Attendees also discussed the need to view waste incineration not just as a solution for waste disposal but also

Amane Consultant Phoebe Thomas attended the event to learn more about the latest developments.

“Most of my waste experience to date has been focused within energy-fromwaste (EfW) sector, so it was fascinating to learn more about the variety of applications for RDF, including dimethyl ether (DME) within the LPG industry and cement; with ~23% of thermal energy for cement production coming from SRF/RDF currently in the EU,” said Thomas.

current

‘market

crunch’

is

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and the future landscape of waste management in the UK and EU.

“It’s clear the future of RDFs is multifaceted, and the key will be how the industry adapts and scales solutions to cope with the changing regulations and market dynamics; with growing competition for waste feedstock and an unlikely UK export ban, despite great lobbying efforts.” ###

26

amane currents

EVENT RADAR

Event Recap

Water goes mainstream at COP28 While much of the headlines focused on the historic agreement to phase out fossil fuels, COP28 elevated water in the climate agenda. intentions to scale up a partnership with the World Bank, including offering £39 million in funding to provide technical assistance to low-income and climate-vulnerable countries so they can better manage their water resources.

The Just Transitions for Water Security program aims to strengthen climate resilience, support more sustainable food systems and improve drought and flood management, all while

4202 RETNIW | YDAER KSIR

making sure everyone has access to clean water.

Improving urban water resilience: COP28 was significant for several

Events

reasons. First, it was the largest such event ever, with close to 100,000

flagship programming on Agriculture and Water Day.

people descending on Dubai. It also marked the first COP decision to address fossil fuels, with representatives from nearly 200 countries demonstrating that the world is united in ‘transitioning away’ from the planet-warming resources.

But from our perspective, it was significant for another reason. COP28 brought water into the mainstream; elevating water within the climate agenda and positioning it as a critical enabler for both climate change adaptation and mitigation solutions.

COP28 gave unprecedented visibility and support for water-related issues, with several events focused on emphasizing the importance of protecting and restoring freshwater ecosystems for climate action, building urban water resilience, and the water-food nexus.

27

culminated

with

COP28’s Food,

Here’s a quick recap of some of the key water-relevant events and actions: Protecting

freshwater

resources:

Forty-three countries joined the Freshwater Challenge, a commitment to protect and restore 300,000 km of rivers and 350 million hectares of wetlands by 2030. This countrydriven initiative is now the largestever freshwater conservation effort and aims to tackle climate change and reverse nature loss.

Funding water security: The United Arab Emirates pledged $150 million in new funding for water security solutions in vulnerable communities.

The Middle East is already the most water-scarce region in the world.

Launched at the UN 2023 Water Conference in advance of COP28, the Urban Water Catalyst Initiative (UWCI) is a global initiative that aims to mobilize public and private investment for climate-resilient urban water.

Building water-resilient food systems: Over 130 countries, representing over 5.7 billion people, 70% of global food resources, and 76% of total emissions from the global food system signed up to the leaders-level ‘COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action.’

More than 20 countries participated in the first COP ministerial dialogue on building water-resilient food systems, which was co-hosted by the UAE and Brazil, which includes commitments to adapt and transform food systems PHOTO:

Implementing

the

Emirates

Declaration on Resilient Food Systems, Sustainable Agriculture, and Climate Action

The United Kingdom also announced

(Photo by COP28 / Christophe Viseux)

Ismail Alaoui participating as a panelist at the Africa Water Forum.

EVENT RADAR and include food and land use targets in their Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs) by 2025.

Here’s a look at how the final outcomes compared against the early expectations.

Other notable outcomes Water is often how most communities experience the impact of climate change, particularly through drought, water scarcity, flooding, and rising sea levels. The Loss and Damage Fund, established at COP27, aims to provide financial assistance to nations most vulnerable and impacted by the effects of climate change.

COP28 built upon this progress,

4202 RETNIW | YDAER KSIR

operationalizing the Fund and reaching over US$700 million in pledges – including US$100 million each from Germany and from the United Arab Emirates.

Parties also adopted a framework for the global goal on adaptation, with 2030 targets to conduct impact, vulnerability, and risk assessments; adopt and implement adaptation plans and policy instruments; and set up monitoring, evaluation, and learning systems adaptation efforts.

for

national

The COP28 report card In November, BloombergNEF identified 10 areas where governments needed to make progress at COP28 in order to take a meaningful step toward the goals of the Paris Agreement. Each area is scored out of 10 based on how much headway was made in Dubai, and assigned a weighting based on importance and urgency. (See chart)

BloombergNEF gave COP28 a final score of 3.8/10, with many experts wishing to have seen a more ambitious push to phase out fossil fuels, more funds to support decarbonization and adaption efforts in poor countries and less focus on costly carbon capture and the burning of natural gas.

Negotiations on carbon markets will continue next year, as will the discussion on climate finance.

COP29 will take place in Baku, Azerbaijan, in November 2024, and COP30 will be hosted by Brazil, in Belém do Pará, in 2025. ###

Photo by COP28 / Christopher Pike

###

28

amane currents

AMANE NEWS

Amane Advisors to become part of Roland Berger Roland Berger to become major player in water consulting through acquisition of global water strategic consulting firm Amane Advisors

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Roland

Berger

has

signed

an

Stefan

Schaible,

Global

Managing

agreement to acquire Amane Advisors, a strategic consulting firm

Partner at Roland Berger:

specializing in water, and resource and energy recovery.

“Amane Advisors and Roland Berger are a perfect strategic and geographic

With this acquisition, Roland Berger is expanding its expertise and offering in line with its strategy to incorporate sustainability into all its projects.

fit, with complementarities in water and waste management consulting.

“Combining Amane Advisors’ deep market knowledge and focused expertise with Roland Berger’s strong

Stefan Schaible, Global Managing Partner at Roland Berger (L) and Geoff Gage, Managing Partner at Amane Advisors (R)

brand and global presence will create By acquiring Amane Advisors, Roland Berger will benefit from in-depth industry know-how and a team of experts with a strong network in the fast-growing water and waste management markets. Roland Berger is thus strengthening its expertise and knowledge in water consulting and will now become one of the largest players in this field.

Amane Advisors will become an integral part of the dedicated water consultancy team at Roland Berger and will be fully integrated.

29

new opportunities for our joint future.

The acquisition of Amane Advisors further advances our international growth and propels us towards our goal of reaching two billion euros in revenues by 2028.

It is also in line with our ambition to further embed sustainability in all our practices and projects. Together with the team of Amane Advisors, we will accelerate the expansion of our offering and expertise in water consulting and build a leadership position in sustainability consulting.”

Torsten Henzelmann, Head of the Global Regulated Platform at Roland Berger: “Amane Advisors has built a competitive advantage through its extensive expertise, database, and proprietary water and waste knowledge assets. The company has experienced strong growth over the years, responding to the increasing need for consultancy in the water sector. We are very much looking forward to working together with the team.”

amane currents

Photo: Amane Advisors team at its 2023 company retreat.

an accelerated pace to address the

Amane Advisors:

growing urgency, and put water at center-stage of sustainability. For our

“Water is not only the world’s most critical resource, it’s a strategic

people and for our loyal clients, Roland Berger is the ideal home

imperative that sits at the heart of sustainability and climate change.

Everyone at Amane is passionate

sharing values, a common vision around the importance of water, and vastly expanding the offering beyond

about water and we look forward to bringing our expertise and know-how in water and integrating our

anything that Amane could have ever dreamt of providing.”

distinctive

energy

Headquartered in Oxford, UK, and

recovery experience to benefit Roland Berger’s clients around the world.”

with c. 50 professionals in seven offices globally, Amane Advisors drives innovative and forward-

Thierry Noel, Founding Partner of Amane Advisors:

thinking solutions in the areas of water, resource, and energy recovery for clients worldwide.

“Water is now on top of the climate adaptation agenda and society, utilities, businesses, industry, and municipalities need to accelerate in designing and implementing solutions. By joining Roland Berger, a leader in sustainability consulting, we can take the water topic globally, at

The majority of Amane Advisors clients are blue-chip companies, public organizations and investors in the water industry and are based in Europe, North America and the Middle East. While historically Europe has been Amane Advisors’ strongest market, the company has experienced

waste

and

strong growth in North America in recent years.

Climate change has made water management a top priority for business and politics. Relevant actors in the water ecosystem, such as investors, suppliers, or utilities are facing strategic issues that are leading to an increasing need for advice.

This transaction is subject to customary closing conditions and is expected to close in the first quarter of 2024.

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Geoff Gage, Managing Partner at

###

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amane currents

SPOTLIGHT

Employee

Spotlight

When did you know you wanted to work in the water sector?

I also love having the opportunity to work on impactful projects with

I first became interested in the water

sustainably-minded clients, including on topics related to water risk.

sector after studying Civil Engineering at university. There, I

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was afforded the opportunity to undertake a summer research placement in Chile, where I explored sustainable means of saving water in the Chilean mining industry.

However, my passion for water and sustainability deepened once I started working as an Engineer in Buro Happold’s Water Group.

This type of work is critical in the context of growing water scarcity and climate change and it’s been rewarding to support organizations in better understanding how water impacts their strategic operations - or how it will in the future - and develop strategies to mitigate their risk.

Mairi Dean

What has been the biggest surprise about working at Amane Advisors?

I am surprised that a relatively small team is able to so effectively serve clients globally across such an extensive range of projects - both in terms of topic and scale.

The commitment that we have to solving client problems is really quite impressive!

There, I was exposed to a range of challenging projects relating to both flood risk and water resource management - topics that I find particularly interesting, particularly in the context of climate change.

What do you like best about your job and why?

At Amane, I benefit from having an excellent peer group with diverse backgrounds. The people I work with are great at what they do. We all get along and support one another, which fosters a really positive work environment.

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Photo: Mairi swaps the hustle and bustle of Paris for a stroll in scenic Fontainebleau.

amane currents

Get to know Mairi Role: Project Manager Office: Paris, France Joined Amane: October 2021 Nationality: Scottish Languages spoken: English

I like to ensure that each member of the team is having a positive

I would describe Amane as:

into account.

Client-oriented: We are passionate in our dedication to meeting exceeding client expectations.

and

Dynamic: We’re always adapting to meet the needs of our projects.

Accessible: As a small team, we work closely with colleagues at all levels – from Intern to Partner, which creates lots of opportunities to learn and grow.

What three words would your colleagues use to describe you?

To answer this one, I decided to ask around the office, and the words that came up included: Considerate Sharp Solution-oriented I think these probably emerge because I enjoy working as part of a team, and take a very collaborative approach to working with my colleagues.

experience on the project, taking both their personality and expertise

My foundation in engineering has also influenced how I think, and helps me to cut through the noise and focus on

Since moving to Paris, my main hobby has been (indoor) bouldering. I love it because its really sociable, with options for any level, and it is satisfying to problem solve how to get to the top! ###

solutions; rather than dwelling on problems.

Name something about you that most people would find surprising.

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What three words would you use to describe Amane Advisors?

This question has made me realize that I should probably build more mystery into my character, as I don’t consider myself to be particularly ‘surprising!’

I’d say I’ve always been surprisingly strong...I was even born with wee baby-biceps!

What are your favorite activities outside work?

I love being outdoors and, in particular, enjoy swimming, hiking, and cycling - especially home in Scotland, where I can easily access nature.

PHOTO: Mairi hiking in Les Calanques, Marseille

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amane currents

Amane Advisors’

YEAR IN NUMBERS Our team is already back at full speed for 2024, but we wanted to reflect on the year that was.

It’s been an incredible year in terms of our growth and client impact but we also wanted to highlight some of the lesser-known milestones that help make it all possible!

Separate projects delivered

37%

Consultants traveled overseas to support projects

4

Three-month secondments in UK, France & Bahrain

20+

Live training sessions delivered to staff

15+

Industry events attended globally

50+

Unique stories published in Amane Currents

12+

Event speaker or moderator opportunities

1,114 gained

118

New social media followers

Thank you for another successful year!

We're excited about what's to come in 2024.

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Contact us FRANCE

44 rue Lucien Sampaix 75010 Paris Tel: +33 (0) 1 75 43 17 00

UNITED KINGDOM

Summertown Pavilion 18 – 24 Middle Way Oxford, OX2 7LG Tel: +44 (0) 1865 655 715

USA

85 Old Eagle School Road Suite 204 Strafford, PA 19087 Tel: +1 610 906 2916

BAHRAIN

Office 116, Platinum Tower, Building 190, Road 2803, Block 428, Seef District Tel: +97 377 110 110

CHINA

11/F Tomson Commercial Building No.710 Dongfang Road Pudong District, Shanghai, 200122 Tel: +86 21 58818236

SINGAPORE

1541 Orchard Road Liat Towers, #20-04 Singapore 238881 Tel: +65 6515 07256

SWITZERLAND

A. Vaccani & Partner AG Zürichbergstrasse 66 CH-8044 Zürich

SPAIN

Atrium Business Center Avenida General Perón 29, Floor 16 28020 Madrid

contactus@amaneadvisors.com amaneadvisors.com