LG H&H and Kao get an A for sustainable water initiatives
CDP, a not-for-profit, climate research provider, has released its 2016 Annual Report of Corporate Water Disclosure entitled ‘Thirsty business: Why Water is vital to climate change’, highlighting how global companies are tackling water sustainability.
This year’s report saw a 48% response rate (607 companies) from the 1,252 established global companies asked to submit data relating to their environmental sustainability endeavours.
Of those 607 respondents, 24 companies were recognised for their sustainability efforts and placed on the Water A list. Japanese and South Korean brands dominated initiatives and leadership in the APAC region.
Leading sustainability efforts
Japan-based cosmetics giant, Kao Corporation, and South Korean conglomerate LG Household & Health Care were recognised for their proactive and world-leading contributions to sustainable water resource management.
Shiseido, Japan’s leading multinational personal care brand, appeared on CDP’s Water B list for its management of water-focused initiatives. It will, therefore, need to make further efforts if it hopes to reach the top spot on next year’s list.
Kao: Japanese newcomer
Kao, which earned an A grade for the first time, was officially awarded at ‘Japan Water Style Summit with CDP's Japan Water Forum 2016’ held in Tokyo on 5th December 2016, along with other A Grade companies.
Kao has a portfolio of over 20 brands such as Attack, Bioré, Goldwell, Jergens, John Frieda, Kanebo, Laurier, Merries and Molton Brown. In 2009, it released its Environmental Statement in a bid to reach its 2020 medium targets. It has since been advancing its sustainability efforts through proactive developments in four core strands: CO2, water, chemical substances, and biodiversity.
LG H &H: South Korean campaign supporter
LG Household & Health Care reported in its 2015 corporate social responsibility (CSR) report how it would continue to focus on fundamental issues relating to energy efficiency and reduction, the efficient use of resources and safety in hazardous substances management.
It also emphasised how it had stabilised and facilitated the Global Eco Leader’s Water Campaign, a support programme that highlights environmental plights around the world and encourages proactive sustainability efforts. In the report, LG Household & Health Care highlighted its plans to expand the Global Eco Leader’s resource circulation campaign in 2016.
In 2015, LG Household & Health Care successfully reduced hot water consumption for one production cycle by 83.3% at its Ulsan site in South Korea.
Deciding factors
CDP measured cosmetics leaders Kao and LG Household & Health Care against several leadership KPIs before positioning them on the Water A list.
As part of the core criteria, both companies successfully: regularly measured, monitored and disclosed more than 75% of all water withdrawals by source, discharges by destination and consumption; required suppliers to report water use, risks and management and include this within water risk assessments; have taken strategic responsibility for water management resides with the highest decision-making level within the business; and have implemented a comprehensive water management policy, to name a few of their initiatives.
