Every year water scarcity affects more countries and impacts more people. About two billion people worldwide currently don’t have access to safe drinking water, and roughly half of the world’s population is experiencing severe water scarcity for at least part of the year.
Against this backdrop, it’s little wonder that companies are increasingly recognizing the importance of responsible water use. Future-focused organizations know that to take the lead as responsible water stewards they must address the water crisis by managing their own water footprint and their impact on the communities around them.
In this article we explain what water stewardship is, why it’s important, and how your business can report on water use in a way that doesn’t drain time or resources.
what does water stewardship mean?
Sustainable water management allows populations to survive, companies to prosper, and natural ecosystems to thrive. In order to achieve this balance, companies need to adopt a water stewardship approach, focusing on responsible and socially equitable use of water that is environmentally sustainable and economically beneficial.
A stakeholder-inclusive process is required to achieve this goal, taking into consideration both site and watershed-based actions. To this end, you’ll need to think about the watershed in which your facilities, or suppliers’ facilities are located, where water drains to a defined location along a stream or river.
For companies, this means considering:
- How water is used within your direct (operational) and indirect (supply chain) operations
- How your water consumption and use impact the watershed
- How the conditions of the watershed impact your operations
Organizations that want to be responsible water stewards understand their own corporate water footprint, the watershed they are located in, and the shared risk involved with water governance, water balance, and water quality.
why is corporate water stewardship important?
Water stewardship enables companies, organizations, individuals, and governments to identify and achieve common goals for sustainable water management as well as shared water security.
Most companies know that water will likely affect business growth and profitability in the near future, which is why water is now recognized as a material risk and water stewardship is considered critical to long-term business growth.
In order to manage the business risks and opportunities related to water security, it’s important to include water management within your ESG strategy. As the water crisis accelerates, investors are demanding more transparency, so this is an important way to plan, record, and monitor the action you take.
As such, companies and organizations that engage in a comprehensive water stewardship program can:
- Manage their water consumption and footprint better
- Mitigate water-related risks more effectively
- Build trust with local governments and communities through shared watershed governance
There are also many benefits to being a good water steward including:
- Enhancing communications with suppliers
- Building trust with governments and local communities
- Establishing environmental and sustainability leadership
- Encouraging corporate responsibility among employees
- Showcasing sustainability progress to stakeholders
- Uncovering cost savings and business opportunities
Ultimately, water is a shared resource that all businesses need. In order to facilitate economic growth, you will need to identify water-related risks and mitigate them, making water stewardship not only responsible, but also good business sense.
are there water-related ESG reporting standards?
Water stewardship frameworks outline standardized approaches that you can take when including water metrics in your ESG reporting.
There are multiple water reporting frameworks used across the private and public sector to support water sustainability planning, some of the most common being:
- Water Footprint Network
- United Nation’s CEO Water Mandate
- The Global Reporting Initiative (GRI)
- Climate Disclosure Project (CDP)
- Climate Disclosure Standards Board (CDSB)
- International Integrated Reporting Council (IIRC)
In 2020, the World Economic Forum (WEF) International Business Council also released a white paper that set guidelines for cross-industry reporting on ESG and tracked sustainability progress. It includes the following reporting metrics for Freshwater Availability, such that companies should detail:
- Volume of water withdrawn (and percentage of total) in regions with high or extremely high baseline water stress.
- Volume of water consumed (and percentage of total) in regions with high or extremely high baseline water stress.
- Estimate and report the same information for the full value chain, where appropriate.
At the 2021 World Economic Forum annual meeting, over 60 companies committed to reporting on these core metrics.
begin your water stewardship journey
Companies looking to add water stewardship to their ESG strategy have to select which ESG reporting framework and standards work best for their business. Ultimately, the final format is up to you, but the content needs to meet standard requirements.
This process involves compiling water use data, utility information, environmental reports, as well as documentation from multiple locations and from up and down the supply chain, in order to mitigate risk and plan sustainably for a water-constrained future.
Starting a water stewardship journey is no small undertaking, however, the right software solution can considerably simplify this complex task.
An ESG software or ESG platform make it easy for your business to begin its sustainability journey by helping to monitor and manage ESG related risks and data. Ensure the technology you select includes a water stewardship solution that enables your business to:
Map your water sustainability strategy
Align water data from across your organization
Simplify your water reporting with automated mapping to leading water frameworks
Share your water stewardship progress with stakeholders
Need help managing your water impact? We can help. The AMCS Sustainability Platform tracks, measures, and manages water risks and impacts across your organization. To find out more, speak to an AMCS expert today.