Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/593898
NOVEMBER 2015 WET NEWS 11 "The water industry needs to plan for a growing population and for climate change, whilst assessing the potential consequences of, and preparing for, incidents like major flooding events and energy price increases" Dr Bruce Horton Valuation model to improved decision making describing, quantifying and (where possible and appropriate) valuing impacts from a given set of potential interventions within a coherent and consistent framework. A good example is the approach taken in a new tool called BeST (Benefits of SuDS Tool) which helps assess the benefits of sustainable drainage. Led by MWH for CIRIA, it is freely available at http://www. susdrain.org/resources/best. html and allows users to value and report a range of impacts across different categories, with valuation based on and linked to leading edge economic analysis in areas from carbon and air quality to flood risk, biodiversity and water quality. There is no doubt that using valuation to improve decision making is a significant challenge, raising several practical and methodological issues. It might lead people to ask "why bother?". I see several reasons for doing so. Firstly, it improves a company's ability to demonstrate that decisions and actions will deliver value to customers and society – they can see a thought process which has focused on maximising benefits and minimising negatives. Secondly, it can give a com- pany a competitive advantage if it adopts this approach swi'ly. Evidence suggests that when a company takes a broader under- standing of value, it becomes more attractive to investors and other stakeholders, not least employees. Thirdly, a valuation approach will be looked upon favourably by regulators. For example, it provides greater transparency of operational impacts in a totex regime. Vacuum Finally, it can give valuable information on equity (who wins and loses) as well as efficiency (by how much would we better or worse off?). This gives the chance to highlight opportuni- ties for innovative delivery and financing mechanisms. Water companies do not exist in a vacuum. Every decision they make will impact on individuals, communities, organisations and ecosystems. To make an informed, robust and objective decision, a rigorous, comprehensive and consistent means of valuation is required. The 'total economic value' framework and the ecosystem services approach provide a coherent means of ensuring that environmental, social and other non-financial impacts are assessed and valued consistently. Water companies could, individually or collectively, work to ensure that such a framework covers all aspects of investment planning, and is not limited to just a few areas like sustainable drainage. They would need to map out the pathways between different interventions, impacts and outcomes. And they would need to identify, use and build on existing economic valuation evidence. This may sound like a long process, but it is very achievable. And if we took this approach, we would improve our understanding of the links between the decisions we make and the people and environments affected by these decisions. It is surely in the best interests of present and future generations. Dr Bruce Horton is principal sustainability consultant at MWH and director of Environmental Policy Consulting. Filtration solutions for Potable Water and Waste Water applications. Effectively removes cryptosporidium, giardia & organic material. Filtration degree to 2 micron available. Unique technology with very high performance. Small footprint and easy to install. Small footprint and easy to install. Automated backwash- no personnel required. Ideal for remote locations. No chemicals required- environmentally friendly.