Corporate water action: embracing water stewardship

In addition to conservation efforts, companies are increasingly investing in innovative technologies and practices to treat and reuse water. By adopting advanced water treatment technologies, businesses can reduce their impact on freshwater resources and contribute to the overall preservation of ecosystems.

Transparency and disclosure are crucial components of effective corporate water stewardship. Many companies publish water-related information in their sustainability reports, providing stakeholders with insights into their water management practices, goals, and achievements. This transparency not only enhances accountability but also encourages other businesses to follow suit.

Clearly corporate water stewardship is a vital component of responsible business practices in the face of escalating water challenges. By actively managing and reducing their water footprint, collaborating with stakeholders, investing in sustainable technologies, and promoting transparency, companies can play a pivotal role in safeguarding water resources for current and future generations.

Drivers of corporate water stewardship

But corporate water stewardship is not only about safeguarding water resources: addressing water-related risks is a strategic imperative for companies, ensuring operational continuity, regulatory compliance, supply chain resilience, and positive stakeholder perception in an era where water challenges are gaining prominence on the global stage.

Businesses are increasingly aware of the interconnectedness between water risks and their supply chains

Water scarcity is a growing global challenge with a direct impact on business operations. As populations rise and climate change exacerbates water stress, companies are likely to face increased competition for limited water resources, potentially leading to operational disruptions and increased costs.

In addition, regulatory pressures are intensifying globally, with governments implementing stricter water usage and pollution standards. Failure to comply with these regulations can result in fines, legal consequences, and damage a company's reputation.

Moreover, businesses are increasingly aware of the interconnectedness between water risks and their supply chains. Suppliers may face water-related challenges, affecting the availability and cost of raw materials. Understanding these risks allows companies to proactively manage supply chain vulnerabilities and maintain resilience.

Finally, consumers and investors are becoming more environmentally conscious, demanding sustainable practices from the companies they support. Demonstrating a commitment to responsible water management not only mitigates reputational risks but also enhances a company's brand value.

Alignment with ESG

Corporate water stewardship plays a pivotal role in Environmental, Social, and Governance (ESG) considerations for businesses. As an essential component of the broader ESG framework, water stewardship directly addresses environmental and social aspects while contributing to overall corporate governance.

From an environmental perspective, effective water management aligns with the "E" in ESG by mitigating a company's impact on water resources, preserving ecosystems, and minimizing water-related pollution. Companies that integrate sustainable water practices into their operations contribute to broader environmental goals, demonstrating a commitment to ecological responsibility.

Socially, corporate water stewardship is intricately linked to community well-being, especially in regions where a company operates. By engaging in responsible water usage and management, businesses can positively impact local communities, ensuring access to clean water and supporting sustainable development. This aligns with the "S" in ESG, emphasizing the social responsibility of corporations.

Governance principles within ESG underscore the importance of transparency, accountability, and ethical conduct. Companies that implement robust water stewardship practices often exhibit strong governance by disclosing water-related risks, setting measurable goals, and adhering to responsible water management standards. This not only enhances accountability but also fosters trust among stakeholders.

The water stewardship journey

The water stewardship journey for companies typically begins with a comprehensive assessment of water risks throughout their operations and supply chains. This involves identifying areas of high water stress, scarcity, or pollution potential. By conducting thorough risk assessments, companies gain insights into vulnerabilities that may affect their long-term sustainability and resilience.

Tools are available to assist companies in assessing their water risks, providing insights to guide their sustainable water management strategies. The Aqueduct Water Risk Atlas by the World Resources Institute (WRI) utilizes geospatial data to map and quantify water-related risks globally, including water scarcity, variability, and pollution. The Water Risk Filter, developed by the World Wildlife Fund (WWF), enables companies to assess water-related risks at specific locations by considering factors like quantity, quality, and regulatory environment. These tools empower companies to identify high-risk areas within their supply chains and operations, helping them to prioritize and implement targeted water stewardship measures.

The water stewardship journey begins with an assessment of water risks throughout operations and supply chains

Following risk assessments, companies' target setting is a crucial component of their water stewardship strategies, reflecting a commitment to responsible water management and sustainability. Many businesses establish targets that go beyond mere compliance with regulations, aiming to address water-related challenges proactively. Such targets often include reducing water consumption, improving efficiency in water-intensive processes, and addressing water quality concerns. Clear and measurable objectives provide a roadmap for companies to actively manage and mitigate their impact on water resources.

A notable trend in water stewardship is the concept of becoming "water positive". Being water positive means that a company aims not only to minimize its own water footprint but also puts more water back into the environment than it consumes. It involves reducing water consumption, but also complementing that with water conservation efforts in stressed basins – replenishing water, as well as community engagement in water conservation projects, and investing in technologies that enhance water availability.

In essence, being water positive signifies a holistic and proactive approach to water stewardship, recognizing that responsible business practices should extend beyond compliance and strive to improve the health and sustainability of the ecosystems and communities connected to a company's operations. This commitment aligns with broader environmental and social responsibility goals and demonstrates a forward-thinking approach to water stewardship that recognizes the interconnectedness of business operations with environmental and social well-being.

Lastly, tracking progress is a crucial step in the water stewardship journey. Companies monitor and evaluate their water-related initiatives, and regularly report on water usage, efficiency improvements, and the implementation of sustainable practices. Additionally, tracking progress allows companies to adapt their strategies in response to changing conditions, ensuring ongoing improvement in water stewardship efforts.

By measuring the impact of their water stewardship actions, companies ensure accountability and transparency in their sustainability efforts. The Volumetric Water Benefit Accounting approach developed by the World Resources Institute (WRI) and partners provides a standardized approach and set of indicators to quantify and communicate the volumetric water benefits of effective water stewardship activities that increase the likelihood of generating social, economic and environmental benefits and solving shared water challenges.

In essence, the water stewardship journey involves a continuous cycle of assessment, goal-setting, and progress tracking. This iterative process enables companies to evolve their practices, contribute to broader sustainability objectives, and navigate the dynamic landscape of water-related challenges.

Water stewardship in practice: the corporate view

The imperative for companies to embrace water stewardship has never been more evident or urgent: businesses are recognizing that responsible water management is not just a corporate responsibility but a strategic necessity. Embracing water stewardship goes beyond compliance — it is an investment in resilience, sustainability, and long-term viability. Also, water stewardship aligns with the expectations of environmentally conscious consumers and investors, fostering trust and enhancing brand value.

Smart Water Magazine is preparing an interview series with companies that are driving positive change in water management

In this era of interconnected environmental, social, and economic challenges, companies play a pivotal role in shaping a sustainable future. Corporate water stewardship serves as a cornerstone in ESG considerations, addressing both environmental and social dimensions while contributing to sound corporate governance practices. By prioritizing responsible water management, companies can enhance their overall ESG performance and contribute to a more sustainable and socially responsible business model.

To explore the forefront of corporate water stewardship, Smart Water Magazine is preparing an interview series with companies that are driving positive change in water management, to hear about their strategies, challenges, and transformative initiatives toward responsible water practices. Stay tuned as we dive in together to understand how corporate leaders are championing water stewardship for a resilient and equitable world.