Water is fundamental to human survival, serving as the cornerstone of our health, agriculture, and industry. Despite its critical importance, water scarcity is an escalating global concern that often lacks attention among businesses that it deserves. The United Nations reports that over 2 billion people currently endure high water stress, a situation exacerbated by climate change, population growth, and unsustainable water management practices.
To mitigate the impact of climate change, water management must come to the forefront of corporate sustainability strategies, especially considering the potential ripple effects across industries like manufacturing and chemicals. By 2030, the UN predicts that global water demand will exceed supply by 40%, with a significant portion of water consumption tied to the production of goods for corporate supply chains.
Companies must address water scarcity risks to protect both sustainability goals and financial stability. Companies addressing water-related supply chain risks not only benefit the planet, but benefit themselves, as combatting these risks is three times more cost-effective than managing the aftermath.
Industry’s role
Progress that has already been made in the drive towards net zero shows what can be achieved through collaborative effort. Initiatives such as The Water Resilience Coalition bring that learning to water, uniting 35 global companies to push water resilience to the top of corporate agendas. To date, there are over 20 collective action projects underway to build water resilience in 15 water-stressed river basins.
Many companies are also moving to reduce their reliance on freshwater supplies. Mars, for example, has helped its rice farmers adopt a technique of “alternate wetting and drying” for rice. This technique has led Arkansas farmers to use 60% less water than the average farms in the region. Meanwhile, Unilever, by the end of last year, had implemented 21 water stewardship programmes in water stressed areas.
Even beyond the issue of climate change, reducing reliance on natural water resources ensures businesses experience less disruptions in their supply chain. For example, PepsiCo aims to have a net positive water impact, hoping to achieve this through innovations such as membrane bioreactor technology, which has helped some parts of Latin America become independent from water utility, by treating and reusing wastewater.
As an end-to-end solutions provider, Tetra Pak is well-placed to work with manufacturers to reduce their water usage, resulting in both environmental and financial benefits. For example, Tial, a fruit juice producer in Brazil, installed a new aseptic blending line at the beginning of 2025. This new technology allows for just the concentrate to be pasteurised, rather than the whole product. This saves 190,000 litres of concentrate per year1 and reduces cleaning water circulation by 50%2.
Full disclosure
Any company compromising the availability or cleanliness of water risks enormous reputational damage. Non-governmental organisations such as Surfers Against Sewage and Greenpeace compile reports on water-related issues and publish high-profile company-level information. Industry must also keep up with reporting, including mandatory disclosures, such as the recently adopted European Union Corporate Sustainability Reporting Directive (CSRD) and the associated European Sustainability Reporting Standards (ESRS) on Water & Marine Resources.
A proactive approach is crucial to preparing for these upcoming compliance obligations. Tetra Pak, for example, began reporting water-related data through CDP in 2023, as part of a growing trend of the private sector’s increasing acknowledgement of its critical role in achieving a water secure world. It was among 4,815 companies - up 23% since 2022.
A localised approach
As with all strategies, target setting is key to a forward-looking action plan. Companies can publicly demonstrate their long-term commitment to water security using third-party frameworks, such as the Science-Based Targets Network’s (SBTN) goals for nature. These transparent targets must also be paired with regular audits to encourage both corporate action and inspire trust from the public.
These holistic water management strategies may take a wide view, but as water resources are often managed in a fragmented way, it’s important that action is taken to tackle highly localised water issues. In working with Quantis to assess water risks, Tetra Pak found most of its water consumption came from upstream purchases. These findings informed the company’s ‘Approach to Nature’ – a framework outlining Tetra Pak’s contribution to halting and reversing nature loss and enhancing water security.
A call to business
The journey toward global net-zero progress has been significant, but the need for stronger focus on water security is urgent.
We urge our peers to take immediate action on water security, treating it with the same significance as climate change and biodiversity loss. Effective risk assessment should be followed by clear targets, leading to tangible, impactful steps. By collaborating, we can accelerate progress far more effectively than by working in isolation.
Every company must acknowledge that when it comes to water, waiting is no longer an option.