Barriers to Water Stewardship—And Why Overcoming Them Matters

Key Challenges

1. Data and Transparency Gaps
   Collecting consistent, facility-level water data across global operations is difficult. Standardizing metrics such as withdrawal, discharge, and basin stress levels remains a major hurdle.

2. One-Size-Fits-All Targets
   Uniform goals across all facilities fail to account for regional water conditions. Water-abundant sites require different strategies than those in drought-prone areas.

3. Limited Supply Chain Visibility
   Upstream suppliers—particularly in agriculture and packaging—often lack transparency on water impacts, leaving companies blind to major risks.

4. Lack of Stakeholder Engagement
   Insufficient dialogue with communities can lead to public opposition, protests, and reputational damage related to fairness, contamination, or access issues.

5. Misaligned Investment Priorities
   Water-related projects often lose out to carbon or energy initiatives due to unclear ROI metrics and lack of awareness.

6. Fragmented Regulations
   Regional differences in water policies create compliance confusion for multinational organizations navigating overlapping jurisdictions.

Why It’s Worth the Effort

• Resilience & Risk Reduction
  Identifying water risks helps companies avoid operational disruptions, supply chain shocks, and reputational damage.

• Operational Savings
  Technologies like greywater reuse, leak detection, and closed-loop systems reduce water and energy costs.

• Competitive Differentiation
  Consumers and investors reward brands that deliver on sustainability promises—particularly with transparent, verifiable water reporting.

• Regulatory Preparedness
  Proactive water management ensures readiness for evolving water-use, discharge, and reporting regulations.

• Community Impact & License to Operate
  Participating in ecosystem restoration and equitable water access enhances public trust and operational legitimacy.

• Innovation Catalyst
  Water stewardship encourages breakthroughs in AI-powered monitoring, IoT systems, and blockchain-based water credit trading.

What Should Companies Measure?

Corporate water stewardship KPIs go beyond basic consumption. Leading companies are tracking:

• Total water withdrawal and discharge (m³)

• Water use intensity per unit of production

• Percentage of water recycled/reused on-site

• Basin-level water stress scores for each site

• Compliance with effluent discharge standards

• Coverage of water risk assessments across facilities

• Site-specific/context-based water targets

• Number of community/ecosystem water partnerships

Progressive companies are also tracking:

• Supplier water footprints

• Replenishment volumes in high-stress basins

• Number of water-related innovations deployed

• Water-related regulatory breaches or incidents

These indicators not only guide internal strategy but also align with reporting frameworks like GRI, SASB, CDP, and TNFD.

From Strategy to Execution: Embedding Water into Business Operations

1. Start with Data & Risk Mapping

Use tools like WRI Aqueduct or WWF Water Risk Filter to assess water risks and prioritize high-impact sites.

2. Set Contextual Targets

Avoid blanket benchmarks. High-stress areas require strict reduction goals, while water-rich regions may focus on efficiency or replenishment.

3. Invest in Efficiency and Reuse

Upgrade legacy infrastructure with low-flow systems, advanced filtration, and treated wastewater reuse.

4. Improve Supply Chain Visibility

Collaborate with agricultural and industrial suppliers on water risks. Provide tools and support for stewardship initiatives.

5. Engage Beyond the Fence Line

Partner with NGOs, governments, and local communities on wetland restoration, groundwater recharge, and water access projects.

6. Elevate Water in Governance

Water metrics should be included in executive KPIs and board oversight. Integrate them into annual ESG disclosures and performance reviews.

7. Collaborate and Advocate

Join global initiatives like the CEO Water Mandate and Water Resilience Coalition to share insights and shape standards.

8. Leverage Digital Technology

Use AI for predictive analytics, sensors for real-time data, and cloud-based platforms for reporting and optimization.