PRESERVING BIODIVERSITY, PROTECTING BUSINESS

Biodiversity refers to the vast variety of life on Earth— the animals, plants, fungi and bacteria that provide humanity with the resources needed to thrive. Due to human actions such as deforestation, overfishing and pollution, the planet is currently experiencing an unparalleled rate of biodiversity loss.

Released in February 2022, a report from the UN’s Intergovernmental Panel on Climate Change details the grim effects of the changing climate on the world’s ecosystems. Rising global temperatures will put almost one third of land’s unique species at a high risk of extinction. During this time of environmental crisis, it is crucial for corporations to take action to protect biodiversity. As a global beverage company, Suntory relies on water. By preserving the biodiverse environments that nurture water, Suntory protects the resources necessary for its business. To make lasting, direct impact, Suntory tailors its water stewardship initiatives to local ecosystems where the business operates. As far back as 1973, Suntory prioritized efforts to protect biodiversity by focusing on local bird populations, which serve as indicators of ecological wellness. To help protect important, threatened bird species, Suntory established a wild bird sanctuary in the Suntory Hakushu Distillery in Japan. Surrounded by rich forests and clear streams, the distillery serves as a relay point of migration for wild birds. In 1989, Suntory established the Suntory Fund for Bird Conservation to directly support organizations protecting birds both in Japan and overseas. As of 2021, the fund has granted a total of $6.67 million to 451 projects. With an aim to nurture quality groundwater around production sites in Japan, Suntory’s dedication to the environment expanded to forest management in 2003 with the establishment of Natural Water Sanctuaries. In partnership with various experts and local municipalities, Suntory establishes and manages the sanctuaries from which it draws water to improve the function of forests for recharging water resources. Today, the program’s 21 locations with a total of nearly 30,000 acres of forestland nurture more than double the amount of groundwater used in Suntory’s plants in Japan. Suntory is now expanding this initiative globally where it operates. The goal of the Suntory’s Natural Water Sanctuaries is to foster rich ecosystems and soil structure that will sustainably cultivate quality groundwater, with a unique and science-backed forest maintenance plan for each site. To ensure success, Suntory has mid-to-long-term agreements—some even lasting as long as 100 years—with local governments and forest owners to maintain the forests near the company’s production sites. As it becomes more evident that business health is intrinsically tied to the health of our ecosystems, corporations must take ownership to protect biodiversity—keeping the locality and longevity of commitments in mind.

A. O. Smith is going through the WAVE process and will soon seek verification through SCS Global. “There aren’t a lot of organizations focused on assisting companies in the water stewardship journey,” says Jim Stern, executive vice president. “We appreciate The Water Council’s efforts to provide a framework that companies can then utilize internally to start dialoguing about the importance of water stewardship.”

Embracing Opportunity

While water stewardship helps companies mitigate risk, it also creates opportunity, Howard says. Companies that demonstrate credible water action enhance brand value and show investors they take water seriously, something that’s important not only to ESG (environmental, social and governance) investors but also to any investor that values long-term operational and financial stability. Additionally, water stewardship offers the opportunity to address common challenges among stakeholders in the same watershed, Howard says. “The upside is long-term security and sustainability of the water resource. That’s good for everybody.” Dairy farms across the U.S. have embraced this opportunity for collaboration, says Karen Scanlon, executive vice president for environmental stewardship for the Innovation Center for U.S. Dairy, a forum that convenes the industry, partners and other stakeholders to align on shared social responsibility priorities. For example, the Turkey Hill Clean Water Partnership has teamed Turkey Hill Dairy, Alliance for the Chesapeake Bay, and the Maryland & Virginia Milk Producers Cooperative Association to bring together Pennsylvania farms and the private and public sectors to help dairy farmers improve local water quality through new housing for cows, improved manure storage, cover crops and other solutions. “There’s a significant role that dairy can play in providing those solutions,” Scanlon says.

“We appreciate The Water Council’s efforts to provide a framework that companies can then utilize internally to start dialoguing about the importance of water stewardship.” – Jim Stern

Hakushu Distillery Bird Sanctuary

A. O. Smith’s Lloyd R. Smith Corporate Technology Center, located adjacent to its Milwaukee headquarters, was designed to reuse most of the water in its test cycles as it tests new water products and technologies.