Global Water Annual Review 2012/13

Weshapeabetterworld|www.arup.com Foreword Water-relatedrisksareattheforefrontofglobalthinking.Resiliencetotoomuchwater(flooding)andtoolittlewater(droughtandwaterstress)isparticularlyfrontofmindfollowingrecentactivityaroundtheworld. Globalinterestinthesustainablemanagementofwaterhasresultedinincreasedgrowthinthewatersectoroverthepastfewyears.Aswelooktowardsthecurrentyear,thistrendlookslikelytocontinue. Arupiswellplacedtoadviseourclientsontheseglobalissues.Wehavedeveloped ourDesignwithWaterconceptualframeworktoensurewemanagewateracrossthewatercycleinamoreintegratedandsustainableway. Ourfocusonthebenefitweprovidetopeopleandclientswillcontinue,asweexplorefurtherexcitingmarketopportunitiesacrosstheglobe.Weaimto‘shapeabetterworld’byhelpingasignificantnumberofpeoplethroughourwaterbusinessprojects. WeareundertakingindustryleadinggreeninfrastructureprojectsinNewYork,SingaporeandMelbourneanddevelopingourassetmanagementofmajorriverbarragestructuresontheRiverRheinintheNetherlandsandtheRiverHumberintheUK.Wecontinueoursuccessonmegaprojectswiththe800MldTaiPoWaterTreatmentWorksinHongKong. Thesuccesswe’veseenthisyearisameasureofthecreativityanddedicationofourclients,ourpeopleandourpartners.Thispassionisreflectedthroughourgreatprojectswhichweundertakeanddeliverwithpride. MarkFletcher Director,ArupGlobalWaterLeader Globalwaterissues Marketoverview •Resiliencetotoomuchandtoolittleisbecomingasignificantissuefortheworld. •Thereisanincreasingfocusonsmartwatermanagement. •Thevalueofwaterisincreasingwithinboththeurbanspace(publicrealm)andtheruralcatchment. •Thereareanumberofmegaprojectstakingplacearoundtheworldwhicharecontributingtoprovidingsolutionstowaterrelatedissues. •Assetmanagementrequirementsarelikelytoexpandaswater Globalwaterrisks TheWorldEconomicForumGlobalRisk2013InsightReportstatesthatofallthepossibleriskevents(coveredbythereport),watersupplycriseshavethegreatestlikelihoodofoccurringinthenexttenyearsandwillhavethegreatestimpact. Thesegraphsshowwater-relatedissuesmovingtowardsthehighimpactand infrastructureisoutofdateandneedsreplacing. highlikelihoodscaleofthediagrams. Water 4 Failureofclimatechangeadaptation Irremediablepollution Persistentextremeweather Risinggreenhousegasemissions Landandwaterway 3.5usemismanagement Antibiotic-resistant bacteria Unprecedentedgeophysicaldestruction Mismanagedurbanisation Speciesoverexploitation Vulnerabilitytogeomagneticstorms 3 2.5 2.5 3 3.5 4 Likelihoodtooccurinthenexttenyears Environmental Economic Societal Majorsystemicfinancialfailure 4 Chronicfiscalimbalances Extremevolatilityinenergyandagricultureprices Recurringliquiditycrises Unmanageableinflationordeflation 3.5 Severeincome disparity Chroniclabourmarketimbalances Hardlandingofanemergingeconomy Prolongedinfrastructureneglect 3 Unforeseennegativeconsequencesofregulation 2.5 2.5 3 3.5 4 Likelihoodtooccurinthenexttenyears 4 Watersupplycrises Foodshortagecrises Unsustainablepopulationgrowth Risingreligiousfanaticism 3.5 Vulnerabilitytopandemics Unmanagedmigration Mismanagementofpopulationageing Backlashagainstglobalisation Risingratesofchronicdisease 3 Ineffectiveillicitdrugpolicies 2.5 2.5 3 3.5 4 Likelihoodtooccurinthenexttenyears Impactiftheriskweretooccur Impactiftheriskweretooccur Impactiftheriskweretooccur Source:TheWorldEconomicForum GlobalWaterAnnualReview2012/13 FOREWORD| GLOBALOVERVIEW| SOCIALIMPACT| YEARINREVIEW| FINANCIALOVERVIEW| REGIONALACTIVITY| GLOBALPROJECTS |SERVICES| CONTACTS Socialimpact “Morethan120millionpeoplewillbenefitfromthewaterprojectsArupworkedongloballyin2012/13.Ourgoalistoincreasethisto0.5billionoverthenext10years.” MarkFletcher,GlobalWaterBusinessLeader,Arup Over126million people SustainableWaterManagementimpactsalmostallaspectsoftheeconomy,inparticular,health,foodproductionandsecurity,domesticwatersupplyandsanitation,energy,industryandenvironmentalsustainability. Deliveringsocialbenefit Allcommunitiesrequireeffectivewatermanagement–whetheritisthroughimprovedhygienemanagementofwastewatertosafeguardhumanhealthorrecognitionofthevalueofwaterasdemandincreases.Arupworksalongsidethedecisionmakerswhohaveafundamentalresponsibilitytothesecommunitiestoaddresstheseissues. Resilience Theeffectsofglobalwarmingonwatersupplyrepresentoneofthegreatestchallengesforcitiesinthe21stcentury.Cityadministrationsareseekingwaystomeetincreasingdemandforwaterfromgrowingpopulationswhilegrapplingwiththeissuespresentedbyclimatechange–extremerainfallanddrought,risingsealevelsandflooding.Arup’sglobal water,climatechangeandplanningexpertscanofferpracticalrecommendationsandcasestudiestohelpcitiesbuildwaterresilienceaspartofaprogrammeofclimatechangemitigation. Other Resilience–droughtResilience–flooding WastewaterWatersupplyWatertreatment Globalsocialbenefitbycategory Yearinreview WetNetworks ArupandPinsentMasonsshowcaseinnovationinthewatersector. Thistechnologyinnovationeventforthewatersectorispartofaregularseriesofseminarsdesignedtobringtogethernewtechnologycompanieswithinthewatersectoranditsinvestors.Theeventattractsin