Freshwater resources : managing the risks facing the private sector

This paper outlines key trends in water use and availability, the resulting new risks to businesses, and strategies companies can take to reduce the risks they face. It first identifies six major water-related themes and trends that have direct bearing on the business community. These are: water resource economics and changing valuations of water (water as an economic good); increasing demand; environmental impacts; climate change; the emerging role of the public in water policy; and water privatisation. The paper then provides an overview of the risks and challenges that water problems pose to businesses. The risks include: decreasing water availability and reliability of supply; declining water quality; supply chain interruptions; and the failure to meet basic water needs, especially in developing countries. The report recommends ten steps companies can take to reduce their water-related impacts on the environment and local communities, and to reduce the business risks related to water. These steps include measuring their current water use; establishing a water policy with specific goals and performance targets; improving water efficiency and conservation efforts; and engaging suppliers, community groups, and outside partners in an open dialogue on the issue. The paper concludes that more research is needed to quantitatively evaluate water-related risk factors for a range of industrial sectors highly dependent on water resources.