Preqin ESG Solutions 46 The process of generating our water withdrawal metrics is outlined below: 1. For each public company covered by CDP: a. Obtain a volume of water withdrawals in megaliters b. Obtain employee count c. Calculate the ratio of water withdrawals to the number of employees to get water withdrawal per employee. 2. Map CDP industries to a standard industry classi昀椀cation16As far as possible, use the lowest level of Industry classi昀椀cation to try to achieve more accuracy. For industries where there are fewer than 20 data points, move up to a broader/ higher-level industry classi昀椀cation until we have at least 20 companies. Discard all other industry levels where there were fewer than 20 companies. 3. For each industry that remains after 2: a. Collect all the ratios calculated in 1c to form a sample b. Discard the potential outliers below the 5th and above the 95th percentile c. Calculate the median ratio to get the median water withdrawal per employee per industry 4. Rank countries (in ascending order) by water productivity. Map these withdrawals to geographic adjustment factor such that: a. All geographic adjustment factors are constrained between 50% and 150% b. Numeric values below 75% are assigned exclusively to the countries ranking in the bottom 5th percentile. c. Values above 125% are assigned only to the countries in the top 95th percentile. 5. For each private company: a. Obtain employee count b. To get the company’s water withdrawal estimate, multiply the employee count by: i. The geographic adjustment factor calculated in 4 based on the country that the company’s headquarters are located in. ↗ Back to Contents