Bureaucrats versus Markets

[This one will make you laugh. Seriously. Read to the Bottom Line...]

The Pacific Institute announces an effort to get companies to conserve water. Take a deep breath and read (skim) this:

U.N. Secretary-General Ban Ki-moon and a group of committed businesses officially launched The CEO Water Mandate one year ago. Designed to assist companies in developing a comprehensive approach to water management, it addresses six key areas: Direct Operations, Supply Chain and Watershed Management, Collective Action, Public Policy, Community Engagement, and Transparency.

Jason Morrison will serve as the Pacific Institute’s primary contact for the U.N.’s Global Compact Office, supporting with applied research, event organization, and other services for The CEO Water Mandate. Seeking to mobilize a critical mass of companies in all regions of the world, the initiative assists endorsers through multi-stakeholder dialogues, facilitation with partnerships, and the dissemination of existing and new tools as well as other best practice guidance resources.

In particular, the Mandate’s 2008-2009 work plan calls for the development of a Transparency Framework describing general expectations for transparency as it relates to both Mandate endorsers and the initiative as a whole. The goal is to establish transparency objectives and actions that are deemed valuable and credible by key interests. Transparency has been identified by endorsing companies and external stakeholders alike as a key issue in making the Mandate a legitimate, meaningful initiative that advances best practice in the field.

“Global industry cross-sector partnerships that advance best practice have tremendous potential benefits for those concerned about environmental protection and social equity—provided these efforts are strong enough to be significant and credible,” Morrison said. “When the world’s largest companies are looking to tackle sustainable water usage and are pressuring their networks of suppliers and distributors who agree to do so as well, we are looking at a potentially powerful movement.”

That's some pretty surreal wording, eh? I've got a better solution -- raise prices!

Bottom Line: Companies will save water if it's worthwhile. If you want to see how REAL conservation works, check out companies' reactions to $135/bbl oil.