Water Management Is Essential to an ESG Strategy

Did you know nearly 9 trillion gallons of water are wasted each year across the water network? The UN forecasts a 40% water availability shortfall by 2030. Clearly, it’s going to take all of us to address the water crisis, and it’s becoming a leading issue in environmental, social, and governance (ESG) criteria for companies.

ESG has become a win-win strategy for companies looking to attract business and improve their environmental impact. Water management is a central component of any ESG strategy.

Let’s take a closer look at ESG, what it means for water management, and how you can build ESG water efficiency into your facility management strategy.

What is ESG?

Investopedia defines ESG criteria as a “set of standards for a company’s behavior used by socially conscious investors to screen potential investments.”

In other words, ESG criteria are standards companies use to set themselves apart from the competition. Modern investors have become more focused on using their money to invest in companies that aren’t just profitable but have sustainable practices for the future as well.

ESG comprises:

• Environmental criteria: How a company manages environmental risk and safeguards the environment

• Social criteria: How a company manages relationships with employees, customers, suppliers, and communities

• Governance criteria: How a company handles its leadership structure, executive pay, audits, shareholder rights, and more

Having a clear ESG strategy is quickly becoming an imperative in today’s marketplace. It’s important to investors, consumers, and any company’s bottom line. In fact, global ESG fund assets reached $2.7 trillion in December 2021. 

What does this mean for water management in 2022?

ESG and water management

Water efficiency is one of the leading topics in the “E” component of ESG: environmental. Countries and companies are taking a deeper look at their strategies to combat increasing water scarcity.

Approximately 1.1 billion people worldwide lack access to water, and 2.7 billion struggle to find water for at least one month of every year. Water scarcity has devastating implications not only for drinking water but also sanitation. Approximately 2.4 billion people don’t have access to clean water and are exposed to deadly waterborne diseases.

Efficient water management can change the tide on water scarcity. According to Robert Glennon, author of Unquenchable: America’s Water Crisis and What To Do About It, “Tools are available to keep water shortages from becoming a catastrophe.” The problem simply requires “moral courage and political will to act.”

So what can facility managers do to bolster their ESG strategy and take part in the fight against water scarcity?

Build ESG water efficiency into your system and strategy

It turns out, facility managers can do a lot to fight water scarcity. In June 2022, the White House announced 61 of the largest U.S. hospital and health sector companies had committed to reduce greenhouse gas emissions 50% by 2030. A number of them committed to accelerating efforts to increase energy and water efficiency.

Along with these major companies, every facility manager can make smart decisions to increase water efficiency and reduce water waste. Here are a few simple steps to start at your facility:

• Create a water management plan: Assess your current water use and map out a strategy for the best ways to conserve water and care for your water system.

• Engage employees: Communicate your vision and help foster a positive culture of water conservation within your organization.

• Invest in smart technology: Modern water management platforms have smart sensor systems that can communicate the health of your water in real time and do the hard work for you.

Smart technology can help you reduce the cost of water bills, water leaks, and property damage — and help you make major strides toward water conservation goals.

ESG strategies are good for investors, consumers, and your bottom line. Boost your company’s contribution to global good — and save money — through smart water management. Learn more at aquanomix.com.