VALUE PROPOSITION Value Proposition Value proposition is a

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VALUE PROPOSITION

VALUE PROPOSITION

Value Proposition Value proposition is a positioning statement that explains what benefit you provide

Value Proposition Value proposition is a positioning statement that explains what benefit you provide to whom and how you do it uniquely well. Use quantitative data where available. From Issue Critical Success Factor To Outcome WHAT IS THE ISSUE Ø Identify what are stakeholder’s issues and what is the root cause of those issues Ø Challenge their thinking regarding Water Risks & Issues HOW THE ISSUE WILL BE SOLVED & WHAT ARE THE BENEFITS Ø Gain clarity on the key value drivers and identify different success factors for the stakeholder Ø Identify the tools, solutions, right people, capabilities and what is needed to assure the certainty of the outcomes Ø Show the stakeholder how they can benefit from the partnership and why to partner with you to make it happen Ø Create concept note including the plan, roles & responsibilities WHAT IS THE OUTCOME Ø Define key outcome of the partnership alongside 3 dimensions - economic, stakeholder and environmental Ø Define hypothesis for achieving those outcomes Understanding issues of different stakeholders and their desired outcomes will help to create a link and manage expectations of the partnership 2

Value Proposition DESCRIPTION • Positioning statement that explains what benefits your partnership provides to

Value Proposition DESCRIPTION • Positioning statement that explains what benefits your partnership provides to different stakeholders and how it does it uniquely perform well. It shows partners how their issues can be addressed through the partnership, with certainty and pace and what outcomes can be expected • It is a good guide for story-telling HOW TO USE IT • Based on the results of the market scan identify what are the company’s issues • Indicate the benefits of the partnership, the suggested solutions , how they will be implemented and what is the timeline and the concept • Highlight the outcomes as results of selected measures • Where possible include quantitative data Value proposition is a live document that should be updated once additional/updated/new information is available and more details are known. The idea is to make it tailored to the specific company. 3

TEMPLATE Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED

TEMPLATE Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED & WHAT ARE THE BENEFITS Critical Success Factor WHAT IS THE OUTCOME From Issue WHAT IS THE ISSUE To be filled in per stakeholder (Private Sector, Public Sector & Communities) 4

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED & WHAT ARE THE BENEFITS Critical Success Factor WHAT IS THE OUTCOME From Issue WHAT IS THE ISSUE Mining Industry When tailoring add any quantitative information available how much money is lost due to the issues, how long will the project last, what are going to be savings once solution is in place, how many beneficiaries etc. • Increased water stress is the most commonly reported risk and many companies have the majority of their operations located in regions subject to water stress or scarcity • Flooding is the next most frequently reported risk, followed by declining water quality, which is the risk most likely to impact business now • Poor water quality often leads to “production setbacks and social pressure due to local tensions” • More stringent discharge standards create operational challenges and may require temporary closure and production breaks” • Mines struggle with safe waste disposal often including dangerous bio-chemical substances. Waste containing sulfide minerals is a potential source for acid mine drainage (AMD) if they are exposed to oxygen and water. Metals can both accumulate in and adhere to crops via contaminated water, soil or air. Since vegetables and fruit constitute a significant part of the local diet, the ingestion of it is a pathway for human exposure of potentially toxic metals. This can cause health problems & lead to reputational challenges and regulatory risks Given the risk exposure and water-related impacts already experienced by the sector, there is a clear and urgent need for companies to develop effective management responses in order to sustain business activities and ensure resilience in the face of water challenges. • IWa. SP sets out to forge powerful alliances of private companies, public authorities and civil society organizations, thereby leveraging local insight and global expertise for effective action • IWa. SP builds on over 40 years of GIZ experience of improving water security across 80 countries • IWa. SP enables common set of actions to achieve better water quality and lower the water distress • IWa. SP utilizes its Water Risk and Action Framework, a proven five-phase-process to ensure high quality partnerships delivering accelerated and sustainable results that benefit both businesses and communities in a controlled way • Besides participating in IWa. SP the company benefits from constant capacity building in the area of water management and Water Stewardship • IWa. SP will ensure the project management of the Partnership, Stakeholder engagement and input for the implementation of solution XX • IWa. SP organizes regular stakeholder meetings to ensure alignment and constant progress monitoring XX – POTENTIAL SOLUTIONS Implementation of water circuit to ensure that water is recycled, improved drainage and sumps run-off capacity, improving water supply systems, measures to prevent the leakages and foster pollution control, implementing water standard for water abstraction, dewatering, effluent/ discharge or water quality, building water retreatment plant, building & enlarging the slag dump etc. • • Lowered regulatory and reputational risks due to the water retreatment plants and implemented water standards Easier & more efficient extraction thanks to improved ground water quality Secured License to operate thanks to the lowered water stress through increased use of recycled water Stronger relationships with local communities and governments thanks to being a responsive user, more business opportunities for investment and benefits from the state 5

EXAMPLES Value Proposition Mining Industry Critical Success Factor HOW THE ISSUE WILL BE SOLVED

EXAMPLES Value Proposition Mining Industry Critical Success Factor HOW THE ISSUE WILL BE SOLVED & WHAT ARE THE BENEFITS WHAT IS THE ISSUE Actions to mitigate water risks or adapt to water events such as droughts can sometimes have From Issue detrimental impacts on climate change which could then potentially compound the water risk. For example, a number of respondents report the use of Critical hydraulic power. Success in their Factor operations. Unfortunately, when dams run dry thanks to drought, companies have to use replacement energy sources that Criticalof Green emit greater volumes Success House Gases. Factor WHAT IS THE OUTCOME Being a responsible water user is an opportunity for us – it helps build stronger relationships with local communities and governments and To Outcome enhances our social license to operate: being responsible makes it easier to do business. Anglo American When tailoring add any quantitative information available how much money is lost due to the issues, how long will the project last, what are going to be savings once solution is in place, how many beneficiaries etc. • Increased water stress is the most commonly reported risk and many companies have the majority of their operations located in regions subject to water stress or scarcity • Flooding is the next most frequently reported risk, followed by declining water quality, which is the risk most likely to impact business now • Poor water quality often leads to “production setbacks and social pressure due to local tensions” • More stringent discharge standards create operational challenges and may require temporary closure and production breaks” • Mines struggle with safe waste disposal often including dangerous bio-chemical substances. Waste containing sulfide minerals is a potential source for acid mine drainage (AMD) if they are exposed to oxygen and water. Metals can both accumulate in and adhere to crops via contaminated water, soil or air. Since vegetables and fruit constitute a significant part of the local diet, the ingestion of it is a pathway for human exposure of potentially toxic metals. This can cause health problems & lead to reputational challenges and regulatory risks Given the risk exposure and water-related impacts already experienced by the sector, there is a clear and urgent need for companies to develop effective management responses in order to sustain business activities and ensure resilience in the face of water challenges. • IWa. SP sets out to forge powerful alliances of private companies, public authorities and civil society organizations, thereby leveraging local insight and global expertise for effective action • IWa. SP builds on over 40 years of GIZ experience of improving water security across 80 countries • IWa. SP enables common set of actions to achieve better water quality and lower the water distress • IWa. SP utilizes its Water Risk and Action Framework, a proven five-phase-process to ensure high quality partnerships delivering accelerated and sustainable results that benefit both businesses and communities in a controlled way • Besides participating in IWa. SP the company benefits from constant capacity building in the area of water management and Water Stewardship • IWa. SP will ensure the project management of the Partnership, Stakeholder engagement and input for the implementation of solution XX • IWa. SP organizes regular stakeholder meetings to ensure alignment and constant progress monitoring XX – POTENTIAL SOLUTIONS Implementation of water circuit to ensure that water is recycled, improved drainage and sumps run-off capacity, improving water supply systems, measures to prevent the leakages and foster pollution control, implementing water standard for water abstraction, dewatering, effluent/ discharge or water quality, building water retreatment plant, building & enlarging the slag dump etc. • • Lowered regulatory and reputational risks due to the water retreatment plants and implemented water standards Easier & more efficient extraction thanks to improved ground water quality Secured License to operate thanks to the lowered water stress through increased use of recycled water Stronger relationships with local communities and governments thanks to being a responsive user, more business opportunities for investment and benefits from the state 6

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED WITH IWa. SP & WHAT ARE THE BENEFITS Critical Success Factor WHAT IS THE OUTCOME From Issue WHAT IS THE ISSUE Agriculture Industry When tailoring add any quantitative information available how much money is lost due to the issues, how long will the project last, what are going to be savings once solution is in place, how many beneficiaries etc. Company XXX suffers from reduced crop yields when droughts occur. Some of the main constraints to irrigated agriculture are inadequate irrigation infrastructure and water storage. Farmers have to grapple with the threats posed by drought, floods, unpredictable rainfall, and the depletion of soil nutrients. Delayed or excessive rainfall, higher temperatures during key periods in the production cycle – notably pollination – or a slightly more protracted drought (risk of fire) often mean destroyed crops or lowered quality of crops. Decreased feed and water resources mean that livestock struggle to maintain weights and the incidences of malnutrition and diseases rise – which leads overall to decreased profits. Given the risk exposure and water-related impacts already experienced by the sector, there is a clear and urgent need for companies to develop effective management responses in order to sustain business activities and ensure resilience in the face of water challenges. • IWa. SP sets out to forge powerful alliances of private companies, public authorities and civil society organizations, thereby leveraging local insight and global expertise for effective action • IWa. SP builds on over 40 years of GIZ experience of improving water security across 80 countries • IWa. SP enables common set of actions to achieve better water quality and lower the water distress • IWa. SP utilizes its Water Risk and Action Framework, a proven five-phase-process to ensure high quality partnerships delivering accelerated and sustainable results that benefit both businesses and communities in a controlled way • Besides participating in IWa. SP the company benefits from constant capacity building in the area of water management and Water Stewardship • IWa. SP will ensure the project management of the Partnership, Stakeholder engagement and input for the implementation of solution XX • IWa. SP organizes regular stakeholder meetings to ensure alignment and constant progress monitoring XX - POTENTIAL SOLUTIONS Construction and rehabilitation of multi-purpose dams, weirs, wells and boreholes; promoting sustainable river diversion for irrigation; developing and promoting rainwater harvesting technologies. Water saving irrigation technologies such as drip (trickle) irrigation, micro sprinklers, common sprinklers and centre pivot system. • Intensification & Diversification of farm production Increased farm outputs and income • Improved water management (better irrigation technology, water control technology and infrastructure) • Stronger relationships with local communities and governments thanks to being a responsible user thanks to Improved ground water quality with enlarged and secure slag dump • Secured License to operate thanks to the decreased water stress thanks to better use of rain through micro-basin set up 7

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED & WHAT ARE THE BENEFITS Critical Success Factor WHAT IS THE OUTCOME From Issue WHAT IS THE ISSUE First Quantum Minerals Ltd. • First Quantum reports the availability of water supply on a regular basis and also on sufficient fresh water, which is being used in processing, as a risk for business with potential loss of XX USD on annual basis • Unpredictable changes in laws and regulations regarding mining activites are seen as a risk to stable revenues • In order to keep revenue up, new mines shall be enclosed, however tensions can arise from issues related to water security for civil society in the area surrounding mines. In addition, often forests have to get cleared in order for mining • Activities to commence, this can however create environmental problems as well as social unrest Given the risk exposure and water-related impacts already experienced by the sector, there is a clear and urgent need for companies to develop effective management responses in order to sustain business activities and ensure resilience in the face of water challenges. • IWa. SP sets out to forge powerful alliances of private companies, public authorities and civil society organizations, thereby leveraging local insight and global expertise for effective action • IWa. SP builds on over 40 years of GIZ experience of improving water security across 80 countries • IWa. SP enables common set of actions to achieve better water quality and lower the water distress • IWa. SP utilizes its Water Risk and Action Framework, a proven five-phase-process to ensure high quality partnerships delivering accelerated and sustainable results that benefit both businesses and communities in a controlled way • Besides participating in IWa. SP the company benefits from constant capacity building in the area of water management and Water Stewardship • IWa. SP will ensure the project management of the Partnership, Stakeholder engagement and input for the implementation of solution XX • IWa. SP organizes regular stakeholder meetings to ensure alignment and constant progress monitoring XX – POTENTIAL SOLUTIONS Implementation of water circuit to ensure that water is recycled, improved drainage and sumps run-off capacity, improving water supply systems, measures to prevent the leakages and foster pollution control, implementing water standard for water abstraction, dewatering, effluent/ discharge or water quality, building water retreatment plant, building & enlarging the slag dump etc. This can be done through IWa. SP partnership over X years with contribution of XX USD. • Lowered regulatory and reputational risks due to the water retreatment plants and implemented water standards resulting in XX USD annual savings • Easier & more efficient extraction thanks to improved ground water quality – XX hl saved and efficiency improved by XX% • Secured License to operate thanks to the lowered water stress through increased use of recycled water • Stronger relationships with local communities and governments thanks to being a responsive user, more business opportunities for investment and benefits from the state 8

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED & WHAT ARE THE BENEFITS Critical Success Factor WHAT IS THE OUTCOME From Issue WHAT IS THE ISSUE Konkola Copper Mines PLC • Konkola uses mines which are build on wet grounds and groundwater flows into the mine posing threats of destabilizing the ground. The dewatering activties cost XXX USD on annual basis • Reputational risk is always an issue, although Konkola has already a Water Management Policy in place: e. g. Treat all waste water, monitor water quality, re-use water • Pollution of water due to wastewater from mining activities Given the risk exposure and water-related impacts already experienced by the sector, there is a clear and urgent need for companies to develop effective management responses in order to sustain business activities and ensure resilience in the face of water challenges. • IWa. SP sets out to forge powerful alliances of private companies, public authorities and civil society organizations, thereby leveraging local insight and global expertise for effective action • IWa. SP builds on over 40 years of GIZ experience of improving water security across 80 countries • IWa. SP enables common set of actions to achieve better water quality and lower the water distress • IWa. SP utilizes its Water Risk and Action Framework, a proven five-phase-process to ensure high quality partnerships delivering accelerated and sustainable results that benefit both businesses and communities in a controlled way • Besides participating in IWa. SP the company benefits from constant capacity building in the area of water management and Water Stewardship • IWa. SP will ensure the project management of the Partnership, Stakeholder engagement and input for the implementation of solution XX • IWa. SP organizes regular stakeholder meetings to ensure alignment and constant progress monitoring XX – POTENTIAL SOLUTIONS Implementation of water circuit to ensure that water is recycled, improved drainage and sumps run-off capacity, improving water supply systems, measures to prevent the leakages and foster pollution control, implementing water standard for water abstraction, dewatering, effluent/ discharge or water quality, building water retreatment plant, building & enlarging the slag dump etc. • Lowered regulatory and reputational risks due to the water retreatment plants and implemented water standards resulting in XX USD annual savings • Easier & more efficient extraction thanks to improved ground water quality – XX hl saved and efficiency improved by XX% • Secured License to operate thanks to the lowered water stress through increased use of recycled water • Stronger relationships with local communities and governments thanks to being a responsive user, more business opportunities for investment and benefits from the state 9

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED

EXAMPLES Value Proposition Critical Success Factor To Outcome HOW THE ISSUE WILL BE SOLVED & WHAT ARE THE BENEFITS Critical Success Factor WHAT IS THE OUTCOME From Issue WHAT IS THE ISSUE Parmalat • Hygiene becomes a problem in processing the milk if water is scarce and cannot be regularly accessed. This might lead to losses of XX USD • Laws and regulations changes for water use has an impact on business activities related to energy, water and waste management with potential financial impact of XX USD • Parmalat increasingly gets input (milk) from local smallholder farmers, who are prone to droughts and floodings leading to potential shortage of milk to be processed and sold leading to potential losses of XX USD on annual basis Given the risk exposure and water-related impacts already experienced by the sector, there is a clear and urgent need for companies to develop effective management responses in order to sustain business activities and ensure resilience in the face of water challenges. • IWa. SP sets out to forge powerful alliances of private companies, public authorities and civil society organizations, thereby leveraging local insight and global expertise for effective action • IWa. SP builds on over 40 years of GIZ experience of improving water security across 80 countries • IWa. SP enables common set of actions to achieve better water quality and lower the water distress • IWa. SP utilizes its Water Risk and Action Framework, a proven five-phase-process to ensure high quality partnerships delivering accelerated and sustainable results that benefit both businesses and communities in a controlled way • Besides participating in IWa. SP the company benefits from constant capacity building in the area of water management and Water Stewardship • IWa. SP will ensure the project management of the Partnership, Stakeholder engagement and input for the implementation of solution XX • IWa. SP organizes regular stakeholder meetings to ensure alignment and constant progress monitoring XX - POTENTIAL SOLUTIONS Promoting efficient plains irrigation and cattle handling. Promoting and Implementing Water saving irrigation technologies such as drip (trickle) irrigation, micro sprinklers, common sprinklers and center pivot system. • • • Improved water management and hence improved hygiene when processing the milk products Improved supply chain security and secured regular milk deliveries as input for products Stronger relationships with local smallholder farmers and governments thanks to being a responsible user Secured License to operate thanks to the decreased water stress thanks to better use of rain through micro-basin set up Increased profits thanks to limited business operation disruptions - estimation of XX USD annually 10