As climate change intensifies, businesses worldwide are confronting increasing risks tied to water scarcity, floods, and poor water quality. Agriculture accounts for 70% of global freshwater use, but sectors like textiles, pharmaceuticals, and semiconductors are equally reliant on this vital resource.
Historically viewed as an abundant commodity, water is now a pressing concern for businesses as climate impacts disrupt supplies and infrastructure. The World Economic Forum’s Global Risks Report highlights water risks among the most significant global challenges.
Growing Awareness, Limited Action
While many companies acknowledge water-related risks, fewer are acting decisively. A recent Nature Action 100 report revealed that only one company had conducted a comprehensive assessment of nature-related risks across its value chain. Most businesses focus narrowly on operational risks, overlooking supply chain vulnerabilities.
Collaborative Solutions Emerging
Experts emphasize the need for collective action. Initiatives like the Water Resilience Coalition and the CEO Water Mandate encourage collaboration to improve watershed health and water accessibility. Companies such as PepsiCo have adopted innovative approaches, including switching crops, replenishing watersheds, and using advanced water treatment technologies to reduce consumption.
Opportunities in Water Innovation
Beyond managing risks, businesses are finding economic opportunities in water efficiency and reuse. For instance, semiconductor manufacturers aim to achieve water reuse rates of 90%, while decentralised water treatment solutions offer cost-effective, sustainable alternatives.
Strategic Imperative
As Alison Gilbert, water stewardship lead at Anthesis, notes, “Investing in water resilience isn’t just a good deed—it’s a strategic necessity.” Companies that prioritize sustainable water management position themselves to mitigate risks, meet regulatory expectations, and enhance long-term profitability.
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