Title page
Contents
Summary 4
01. Introduction 6
Agricultural products 8
Textiles 9
Mining 10
Addressing the water impacts of international trade 11
02. Exporter-country initiatives and challenges 13
Competitiveness concerns - what can water initiatives learn from the case of carbon? 15
03. Importer-country initiatives and challenges 18
Mandating disclosure and due diligence in supply chains 18
EU legislation 21
UK legislation 25
Setting standards for market access 28
Using trade agreements to encourage sustainability 30
04. Case study: Malawi 33
National water challenges 33
Agriculture 35
Mining 36
Trade and virtual water 37
Potential policy impacts 38
05. Case study: Morocco 40
National water challenges 40
Textiles 42
Agriculture 43
Mining 44
Trade and virtual water 45
Disclosure and due diligence policies 45
Supply chain governance 47
Challenges associated with EU trade and policies 47
06. Conclusions 48
Developing supply chain disclosures and due diligence 49
Support trade partner compliance with disclosure and due diligence standards 50
Improve environmental measures in trade agreements 51
About the authors 52
Acknowledgments 52
Table 1. EU supply chain governance measures 22
Table 2. Malawi's key statistics 34
Table 3. Morocco key statistics 41
Figure 1. Distribution of global active and operating mines against overall water risk (physical, regulatory and reputational), 2020 11
Figure 2. Estimated credit rating changes for selected states under partial nature collapse and BAU by 2030, were biodiversity- and nature-related risks... 42
Boxes
Box 1. What is a product's water footprint? 7
Box 2. WTO-compatible water protection measures 16
Box 3. Evolving global standards for environmental and water risk disclosure 20
Box 4. WTO-compatible standards for market access 28
Box 5. Hydrogen exports from Morocco to Europe 46