www.pwc.com/water
Water: a precious asset
São Paulo´s water challenge
June 2015
(DC2) Uso Restrito na PwC - Confidencial
Agenda
1
Why is water
increasingly
important?
What is the
problem in São
Paulo?
2
5
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Why is water
increasingly important?
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Water is the number one concern for CEOs
WEF, Global Risks 2015
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Global CEOs are increasingly concerned about
long-term issues that affect ability to operate
Failure of
climate-change
Energy price
adaptation
shock
Fiscal crisis
Weapons of mass
destruction
Economic risks 2015
Interstate conflict
Geopolitical risks 2015
Unemployment and
underemployment
5.0
Natural capital risks 2009
Terrorist
Asset bubble
attacks
Failure of financial
mechanism or institution
4.5
Impact 
4.0
Societal risks 2015
Failure of national
governance
State collapse
or crisis
Unmanageable
inflation
Extreme
weather
events
Natural capital risks 2015
Climate
change
Failure of critical
infrastructure
Deflation
Man-made
environmental
catastrophes
Water
crises
Natural catastrophes
Biodiversity loss
and ecosystem
collapse
3.5
4.0
Likelihood 
5.0
5.5
Note: Man-made environmental
catastrophes was added in 2014
Source: World Economic Forum Global Risks Report (2009 – 2015)
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The water challenge: Limited supply, increasing
demand
Global water resources
Water usage and population since 1900
4500
4000
Saltwater
97.50%
3500
Frozen
68.9%
Freshwater
2.50%
Water usage per year has
increased from about 500
cubic kilometers in 1900 to
about 3,830 cubic kilometers
in 2000
3000
2500
2000
Ground
water
30.8%
Lakes &
Rivers
0.3%
Source: UNEP Vital Water Graphics 2008.
What we have:
Limited supply of a resource
that is un-substitutable.
1500
1000
Population has increased
from 1.6 billion in 1900 to 6
billion in 2000
500
0
1900
2000
Source: IWMI 2007; World Bank 2007.
What we need:
Increasing amount of water for
increasing number of people.
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Soon supply will not meet demand
Agricultural water consumption is
expected to increase 19%
(Source: UN Water stats)
50%
more
energy
By 2035, global energy
consumption will increase
35% … increasing water
consumption by 85%
40%
more
water
35%
more
food
Agricultural water
consumption is expected to
increase 19%
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The water challenge: Too little, too much, too
dirty
Too little
Water scarcity and drought
Too much
Floods and extreme weather events
Too dirty
Spills and impaired water quality
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Climate change and resources scarcity
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With development there is an increase in water
consumption
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2.7 billion people experience severe water scarcity
at least one month a year
Source: Water Footprint Network, 2012
✓
✓
95% of pathogens and germs eradicated
when the backpack liner is placed in the
sun for 60-90 minutes
SODIS (solar disinfectant method) of
liner
nearly
as effective
When water impacts the bottom line • New guidelines to manage and
disclose
corporate
water risk as chlorination
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Too much
Estimated damage ($US billion) caused by
reported natural disasters 1900-2011
Proportion of average annual damages caused
by reported natural disasters, 2011
100%
90%
80%
70%
60%
Other
50%
40%
Earthqua
ke
Storm
30%
Flood
Honshu Tsunami
Hurricane Katrina
Kobe earthquake
Wenchuan earthquake
20%
10%
0%
Africa
Source: CRED, EM-DAT International Disaster Database, 2012
Americas
Asia
Europe
Oceania
Source: CRED, EM-DAT International Disaster Database, 2012
Floods and storms cause the majority of economic damage from disasters.
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Too dirty
One in six people does not
have access to clean water
Relative threat from organic loading
Source: WWF-DEG Water Risk Filter 2012
Nutrient enrichment is the most widespread water quality problem.
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Water will become the focus for future infrastructure
projects
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What is the problem in
Sao Paulo?
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Overview of water distribution in Sao Paulo
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Overview of water distribution in Sao Paulo –
current situation
Water
distribution
System
Stored Volume
(May 19, 2015)
Water
Production
(m³/s)
Population served
Population served
(%)
Cantareira
19,70%
33,00
6.500.000,00
34%
Alto Tietê
23,20%
15,00
4.500.000,00
24%
Guarapiranga
82,40%
15,00
4.900.000,00
26%
Alto Cotia
68,60%
1,20
410.000,00
2%
Rio Grande
96,30%
5,00
1.200.000,00
6%
Rio Claro
56,20%
4,00
1.500.000,00
8%
Source: http://www2.sabesp.com.br/mananciais/DivulgacaoSiteSabesp.aspx
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Overview of water distribution in Sao Paulo –
situation of reservoirs in May 19th, 2015
100%
96%
82%
80%
69%
60%
56%
40%
20%
20%
23%
0%
Cantareira
Alto Tietê
Guarapiranga
Alto Cotia
Rio Grande
Rio Claro
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Overview of water distribution in Sao Paulo –
current situation
Historical average rainfall level (mm)
April rainfall (mm)
300.00
250.00
200.00
150.00
100.00
50.00
Cantareira
Alto Tietê
Guarapiranga
Alto Cotia
Rio Grande
Rio Claro
Source: http://www2.sabesp.com.br/mananciais
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Why did the water become an issue for Sao Paulo?
1.
Insufficient analysis of the hydrological regime of the region:
 The Cantareira System studies started during 1960’s decade. In that time, there was no
pluviometric station in the region with long historical rainfall series register. There were only five
station, with registers for a short period of time – only one of them had data for more than 30
years.
Source: http://revistadae.com.br/downloads/edicoes/Revista-DAE-198.pdf
 The studies have not taken into consideration the cyclical effects that occur in long periods of time.
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Why did the water become an issue for Sao Paulo?
The precipitation varies around its historical average: we can have extreme floods
during an year and face a drought period on the sequent year.
Accumulated Rainfall (mm) - Cantareira System
600
500
400
300
200
100
0
Jan
Feb
2010
Mar
2011
Apr
May
2012
Jun
2013
Jul
2014
Aug
Sep
Oct
Nov
Dec
Historical Average (calculated in 2014)
Source: http://www2.sabesp.com.br/mananciais
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Why did the water become an issue for Sao Paulo?
2. Amazon deforestation and the Flying Rivers effect:
 The Amazon forest attracts the humidity of the ocean to the continent. This humidity falls as rain
over the forest. Through the evapotranspiration of the trees, the forest sends the water back to the
atmosphere as steam. This steam flows to the West, South and Southeast, where the rain falls. This
steam is called Flying Rivers. When the deforestation occurs, the forest evapotranspiration
capacity decreases and the rain does not arrive to the Brazilian farthest regions.
Source: http://planetasustentavel.abril.com.br/imagem/superinteressante-obrasil-secou-infografico-rios-voadores-560.jpg
Source: http://planetasustentavel.abril.com.br/imagem/superinteressante-o-brasil-secou-infografico-nossa-agua-vem-daamazonia-rbg-560.jpg
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Why did the water become an issue for Sao Paulo?
3. Increase in demand and large water losses:
Great Sao Paulo
Region population in
1960: 9 million people
Around
25%
Great Sao Paulo
Region population in
2014: 21 million people
of the water
is lost during
distribution
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What has already being done?
 Use of the water stored in the system’s technical reserve
The technical reserve is a reservoir of 400 million of cubic meters located under the floodgates of
Cantareira System dams. The water of the technical reserve was pumped to the upper levels of the
reservoir, increasing the level of the system in more than 20%.
Source: http://www.climatempo.com.br/destaques/wp-content/uploads/2014/05/INFO_CANTAREIRA_OK.jpg
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Discount
Discounts of
30% over the
invoice value
are being
applied for
those who save
20% or more of
water
Use of other
systems
The Rio Grande
and
Guarapiranga
systems are
supplying more
than 3 million
people that
were supplied
by Cantareira
system.
Public awareness
campaigns
Public
awareness
campaigns
showing the
importance of
saving water
started to be
transmitted in
the media.
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Source: http://sabesp.com.br
What has already being done?
For further information please
contact:
Carlos Rossin
[email protected]
http://www.pwc.com.br/pt/sustentabilidade/index.jhtml
Gustavo Melo
[email protected]
www.greif.com
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