Water Conservation Is a C-Suite Concern
Nothing about the past two years has felt normal, and as the world searches for a new normal, one priority is becoming clear — conservation is key to a safe and successful future.
The world’s water supplies are at risk due to climate change, population growth, and the changing habits of consumers. And nearly every expert agrees: Business leaders need to be at the forefront of conservation.
Why is water conservation such a prominent issue for the C-suite? To understand this, we first need to understand the risk the water crisis poses to business, the boost conservation efforts can provide business, and why the C-suite is key to successful conservation.
The global water crisis and business risk
According to the Environmental Protection Agency (EPA), the U.S.’s thirst for water has tripled in the past 50 years, though the population only doubled. Estimates suggest most states will experience water shortages by 2024. Globally, the numbers are just as dire, with a sixfold increase in water use and increasing cases of catastrophic drought over the past century.
These numbers pose significant economic risks to companies even as they offer critical opportunities for business leadership. A study by McKinsey & Company found that two-thirds of global businesses face substantial risk to their direct operations and value chain. Additionally, in the U.S., a whopping 37% of our water is used for industrial purposes — almost the same amount as is used for agriculture.
On top of these considerations, companies must stay abreast of changing federal regulations. As the government manages the water crisis across state lines, businesses must prioritize compliance to remain competitive and reduce risk.
Clearly, businesses have a huge role in mitigating the global water crisis. By establishing clear water conservation priorities, companies can reduce risk, improve their bottom line, and even boost their public reputation.
Let’s explore each of these points in greater depth.
Water conservation reduces risk
Water conservation can ensure your business access to a sustainable water source. Plans to cut water use or reuse water help to stabilize the supply. Additionally, we can expect government regulations to increase over the coming years. Water conservation will likely be an essential requirement for staying in business over the long term. Companies can reduce risk and cost by proactively building conservation strategies.
Water conservation saves money
Think about all the costs associated with water use, from sourcing to treating and storing to disposing, and water costs are only going to go up in a water crisis. Companies can plan for the future by reducing water use and the associated sourcing costs. Industrial water uses, such as production processes or coolants, require enormous energy output. Using less water requires less energy and cost.
Water conservation sets companies apart
Water and energy conservation has become a key differentiator for investors, customers, and consumers. In 2018, a survey by Nielsen showed that 81% of global consumers think companies need to help improve the environment. In the United States, 53% of consumers and 67% of experts say businesses in the U.S. use too much water. Consumers also say they are more likely to keep doing business with companies demonstrating conservation as a high priority.
Why water conservation is a C-Suite concern
Water conservation is a critical business priority for the 21st century. Experts agree, for conservation to succeed, CEOs and company executives must take the lead. Global companies like Microsoft and Coca-Cola are already leading the way in conservation efforts.
The World Business Council for Sustainable Development published the CEO Guide to Water in 2018, establishing the critical challenges of conservation and the urgent need for leadership on the subject. Essentially, conservation efforts are most successful if the CEO backs them as a priority. Executives who want to be sustainable for the next century need to establish a clear plan for water management and risk reduction.
Since water conservation is an investment with high returns, the solutions are clear for forward-thinking business leaders.
The world faces a water crisis, and the decisions businesses make over the next few years will dramatically affect our ability to thrive. Companies have a crucial role to play in reducing risk. By investing in water conservation, businesses can reduce risk, lower water costs, and give their brand reputation a considerable boost.
But none of this can be accomplished without C-suite buy-in and leadership.
At Aquanomix, we’ve built the most innovative tools on the market to easily track, measure, and control your company’s water use. Lead the way in conservation — and create a more resilient business — with aquanomix.com.