Chief liquidity

Chief Liquidity Series
Water-related materiality briefings for financial institutions Issue 1 • October 2009

Agribusiness

Geographies Australia Brazil India Mediterranean Basin (Morocco, Italy, Greece) South Africa
Local guidance on a global issue A briefing series by the Water & Finance Work Stream of the United Nations Environment Programme Finance Initiative

Chief Liquidity SeriesWater-related materiality briefings for financial institutions Issue 1 • October 2009

Agribusiness
Geographies Australia Brazil India Mediterranean Basin (Morocco, Italy, Greece) South Africa

Prepared for UNEP Finance Initiative by

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of theUnited Nations Environment Programme concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Dotted lines on maps represent approximate border lines for which there may not yet be full agreement. The mention of specific companies or of certain manufacturers’ products does not imply that they areendorsed or recommended by the United Nations Environment Programme in preference to others of a similar nature that are not mentioned. Errors and omissions excepted, the names of proprietary products are distinguished by initial capital letters. The United Nations Environment Programme does not warrant that the information contained in this publication is complete and correct and shall not be liablefor any damages incurred as a result of its use. The report and the content of the report remain the sole property of UNEP FI. None of the information contained and provided in the report may be modified, reproduced, distributed, disseminated, sold, published, broadcasted or circulated, in whole or in part, in any form or by any means, electronic or mechanical, including photocopying, or the useof any information storage and retrieval system, without the express written permission from the UNEP FI Secretariat based in Geneva, Switzerland, or the appropriate affiliate or partner. The content of the report, including but not limited to the text, photographs, graphics, illustrations and artwork, names, logos, trademarks and service marks, remain the property of UNEP FI or its affiliates orcontributors or partners and are protected by copyright, trademark and other laws. Design: Rebus, Paris Published in 2009 by UNEP FI Copyright © UNEP FI UNEP Finance Initiative International Environment House 15, Chemin des Anémones 1219 Châtelaine, Genève Switzerland Tel: (41) 22 917 8178 Fax: (41) 22 796 9240 fi@unep.ch www.unepfi.org

Contents
The UNEP FI Water & Finance Work Stream The WFWSProject Team Foreword from the United Nations Environment Programme (UNEP) Finance Initiative Foreword from the UNEP FI Water & Finance Work Stream (WFWS)
1 2 Water, development and financial institutions Why this series of briefings?

4 4 5 7
9 10

2.1
3 4 5 6

First issue on agribusiness
How to use this Briefing? How water pressures translate into financial risks Globalrecommendations from local insights Water sustainability of agribusiness activities in Australia: the Murray-Darling Basin

10
12 13 15 17

6.1 6.2 6.3
7

Local water challenges Water use in irrigated agriculture: grapes, cotton and rice Performance indicators
Water sustainability of agribusiness activities in India

17 20 23
26

7.1 7.2 7.3
8

Local water challenges Water use in irrigatedagriculture: wheat, cotton, sugarcane and rice Performance indicators
Water sustainability of agribusiness activities in Brazil

26 28 31
34

8.1 8.2 8.3
9

Water challenges Water sustainability issues in the production and processing of sugarcane Performance indicators
Water sustainability of agribusiness activities in South Africa

34 31 39
42

9.1 9.2 9.3
10

Water challenges...