Many experts report that global water supplies are dwindling and that it poses a risk to businesses which will have impacts more far-reaching than oil. While alternative sources for oil exist, there is no substitute for water: it’s a necessity for human survival and many industrial processes.
One of the most important considerations for business is access to clean water. It’s used for things such as power generation, cooling of air conditioning systems, amenities, process needs, and so on. Companies across industrial sectors could be affected by water shortage issues directly and indirectly through their supply chains, with even non-water intensive companies realizing higher costs as suppliers deliver higher costs.
The impacts of climate change on water will be felt in the form of droughts and changing precipitation patterns while population growth and rising consumption patterns will increase demand and further stress water supplies. In fact, the Organization for Economic Co-operation and Development (OECD) forecasts that, as early as 2030, 47% of the global population will be living in areas of high water stress.
This water challenge provides businesses the opportunity to develop and implement solutions both locally and internationally. Companies need to plan now for the impact of water shortages on their business operations. However, for most companies, water does not appear on the bottom line as awareness and understanding of water-related risks and opportunities is lacking.
In an attempt to bring companies together and to take action, the Water Disclosure Program was created which aims to “provide critical water-related data from the world’s largest corporations to inform the global market place on investment risk and commercial opportunity.” In 2010, a questionnaire will be sent to 300 of the world’s largest water-intensive companies which will assess the risks and opportunities companies face in relation to water; water usage and exposure to water stress in companies’ own operations and in their supply chains; and companies’ water management plans and governance. The data will be utilized to move investment towards sustainable water use.
It’s a reality that corporate reputation represents a large percentage of a company’s market capitalization. Companies that treat water risks as a strategic challenge will be far better positioned in future as investors are already urging companies to measure, disclose and reduce their environmental risks. And, people are more likely to invest in a company that has a high rating in terms of environmental and social performance.
Being proactive and using water proactively will reduce the water footprint of any business. In fact, studies reveal the commercial sector has the potential to save on average 39% of their water use. So what can businesses do to reduce their water consumption? Toilets and urinals account for more than one-third of the water consumed in office buildings. Installing waterless urinals and low flow dual flush toilets use only a small fraction of water when they are adjusted to the minimum amount of water required per flush. Water saving bathroom fixtures can also eliminate a large percentage of gallons annually for businesses. Adding aerators to existing faucets can cut water consumption in half but faucets should first be checked for leaks. Lastly, water use on outdoor landscapes can be reduced if the sprinkler timer is adjusted with the seasons and if it is watered early in the morning or late at night to minimize loss.
“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” - Jack Welch
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