There is a growing sense of urgency about water scarcity as a business risk, but almost half of all companies don’t have a plan to achieve their water reduction targets. That is the key finding of a new survey conducted by Ecolab Inc., a water, hygiene and energy technology company, and GreenBiz.
Companies are under pressure to reduce their water usage because of mounting water scarcity. According to U.N. projections, the world will face a 40% freshwater shortfall by 2030 if nothing changes. This is a growing issue for corporate water users, who consume more than 40% of all water used in industrialized economies and an increasing share in developing nations.
“Saving water is the smart play for the future,” said Emilio Tenuta, Ecolab vice president of Corporate Sustainability. “Companies can reduce costs and save energy, and become more resilient to water scarcity and climate change.”
The survey underscores the need for companies to rethink their water management. Key findings from the survey, which was conducted in February and March 2019 with responses from 86 companies with revenues of at least $1 billion, include:
- 74% of the companies surveyed say water is an increasing priority
- 59% agreed that it is also a growing business risk
- 88% said they would take active steps to manage water use in the next three years
But despite that sense of urgency, 44% of the companies surveyed said they have no plan in place to achieve their water goals. And only 56% report using smart technology to monitor their water use and savings.
The outcomes from the 2019 survey are in line with findings from 2017, the first year the survey was conducted, when 75% of companies said they had corporate water reduction goals, but 82% reported they lacked the tools and expertise to achieve them.
This persistent discrepancy is explained by a disconnect between the corporate level, where the goals are set, and the on-the-ground facility level, where the actual savings must be achieved. Seventy-five percent of companies said that water reduction targets are set by corporate sustainability teams, but only 64% feel that they are appropriately engaging their facility teams, down 5% from 2017.
To bridge the gap between corporate goals and real results, operational managers need to be fully engaged.
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