Imagine a world where water scarcity halts production lines and erodes billions in market value-it’s not distant, it’s now. As the global water crisis intensifies, driven by climate change and surging demand, water stewardship emerges as ESG’s pivotal frontier. This article explores the crisis statistics, investor shifts, business risks, high-risk industries, best practices, case studies, and future imperatives, revealing why proactive leaders will thrive.
Defining Water Stewardship
The Alliance for Water Stewardship (AWS) defines water stewardship as ‘using water responsibly to secure good water status for people and nature.’ This approach goes beyond basic compliance. It integrates water management into core business strategies for long-term sustainability.
AWS Standard 2.0 outlines five core principles that guide effective water stewardship. Companies start with good water balance by measuring usage against benchmarks. This helps identify inefficiencies in operations like manufacturing or agriculture.
The second principle focuses on sustainable use within planetary boundaries to avoid overexploitation. Catchment outcomes aim to improve local conditions through watershed protection and pollution prevention. For example, a beverage company might fund riparian restoration in stressed areas.
Transparency requires annual disclosure of water data, aligning with ESG reporting standards like GRI and CDP water. Long-term leadership commits to ongoing innovation, such as water recycling or rainwater harvesting. As of 2023, over 150 sites globally hold AWS certification, showing growing adoption in corporate responsibility.
ESG Framework Overview
ESG frameworks like GRI 303 (Water & Effluents) and SASB require companies to report water withdrawal (m), consumption, and quality compliance. These standards guide firms in tracking water usage efficiency and addressing freshwater scarcity. Companies use them to build transparent ESG reporting practices.
GRI 303 covers scope, quality, and risks in water management. It mandates disclosure of water withdrawal by source, effluent quality, and risks like water stress. Firms conduct water auditing to meet these rules and improve resource conservation.
SASB industry-specific metrics focus on water intensity, such as m per revenue. TCFD addresses physical risks through drought scenarios and transition risks from regulations. These tools help in materiality assessment for water-related risks.
| Sector | Water Materiality | Key Metrics |
| Agriculture | High | Water withdrawal, irrigation efficiency |
| Tech | Medium | Water intensity m/revenue, recycling rates |
The EU CSRD mandates water double materiality from 2025, assessing both financial impacts and company effects on water resources. This pushes regulatory compliance and stakeholder engagement. Businesses prepare by integrating water stewardship into corporate strategy.
The Global Water Crisis
2.4 billion people live in water-stressed countries, and by 2050, 5.7 billion will face monthly scarcity according to the UN World Water Development Report 2024. This crisis exposes much of the global economy to freshwater scarcity, pushing companies toward stronger water stewardship in their ESG strategies.
World Resources Institute Aqueduct data highlights how 80% of global GDP sits in areas vulnerable to water risks. WWF Living Planet reports show rivers already 83% depleted, while IPCC AR6 projections warn of worsening conditions. Corporations face direct hits, with 50% of S&P 500 revenue tied to high water stress basins.
These pressures demand corporate responsibility through better water management. Businesses can build drought resilience by auditing their water footprint and pursuing net positive water goals. This approach supports SDG 6 and enhances long-term value creation.
Investors now prioritize water security in ESG reporting under frameworks like TCFD and GRI standards. Companies excelling in resource conservation gain competitive advantage and protect their license to operate.
Water Scarcity Statistics
WRI Aqueduct ranks 189 countries, with 17 nations representing 25% of global GDP facing ‘extremely high’ baseline water stress. This data maps 522 major basins, where 233 experience high stress. Such insights guide risk management for global supply chains.
| Country | Stress Level | GDP Exposure |
| India | 74% | High |
| UAE | 99% | Extreme |
| California | 80% | High |
CDP 2023 notes 44% of Fortune 1000 facilities in high stress areas. Firms can respond with water auditing and benchmarking against peers to improve water usage efficiency.
Practical steps include adopting the Alliance for Water Stewardship standard for certification. This fosters transparency in ESG reporting and stakeholder engagement.
Climate Change Impacts
IPCC AR6 projects 20-30% global precipitation decline by 2050, placing 1.7 billion people in newly water-stressed areas. Climate change amplifies risks, urging companies to integrate watershed protection into their corporate water strategy.
Key impacts include glacier melt threatening 70% of Asian river flow by 2100, drought frequency tripling, flood intensity rising with +7% precipitation per degreesC, and sea level intrusion affecting 40% of coastal aquifers.
- Glacier melt disrupts reliable flows for industries like beverages.
- Increased droughts hit agricultural water use and manufacturing.
- Floods overwhelm wastewater treatment systems.
- Saltwater intrusion ruins water quality in coastal operations.
Nestl cut Alps water use by 25% since 2000 through water recycling. Others can follow with nature-based solutions like aquifer recharge for ecosystem restoration.
Population and Demand Pressures
Global water demand rises 55% by 2050 per UN estimates, with agriculture claiming 70%, industry 19%, and domestic use 11%. Rising needs strain supplies, making integrated water resources management essential for sustainability.
| Sector | Current Use (km/yr) | 2050 Projection (km/yr) |
| Agriculture | 4,600 | 5,600 |
| Manufacturing | 900 | 1,700 |
| Thermoelectric | – | +300% |
Urbanization adds 2.5 billion city dwellers, requiring 200 km extra water. China already sees demand exceed supply by 40 billion m annually, highlighting water-energy-food nexus challenges.
Companies can counter this via circular water economy practices like rainwater harvesting and desalination. Prioritizing water productivity ensures operational resilience amid growth.
Water’s Rising Priority in ESG Investing
Water now ranks #3 ESG issue for investors, up from #8 in 2018, according to the PwC Global Investor Survey 2024. This shift highlights water stewardship as a core focus in environmental social governance frameworks. Investors prioritize it for long-term value creation amid freshwater scarcity.
BlackRock’s 2024 letter positions water as the ‘next carbon’ in ESG priorities. With significant ESG assets under management screening for water risks, the trend reflects growing investor expectations. Principles for Responsible Investment signatories require water risk assessments to manage physical and transition risks.
Coverage metrics show a clear pivot: carbon assessments have adjusted while water security evaluations have climbed sharply. Companies adopting water footprint analysis gain competitive edges in sustainable investing. This evolution drives corporate responsibility in resource conservation and supply chain sustainability.
Practical steps include integrating water auditing and watershed protection into ESG reporting. Firms using TCFD and GRI standards for water disclosure build operational resilience. Such measures support drought resilience and stakeholder engagement for enhanced brand reputation.
Investor Focus Shift from Carbon
BlackRock’s 2024 report notes that water scarcity creates substantial annual GDP losses, surpassing many carbon scenarios. This underscores the need for water management in ESG investing beyond carbon neutral goals. Investors now weigh water-related risks heavily in portfolio decisions.
Carbon pricing mechanisms contrast with water risk valuation, which can impact EBITDA significantly. Major players like Vanguard apply water screens to numerous companies, focusing on water usage efficiency. State Street engages firms such as Nestl and Pepsi on water stewardship practices.
MSCI has doubled the weight of its water pillar since 2022 in ESG ratings. This reflects a broader move toward holistic risk management, including biodiversity and climate change linkages. Companies improve scores by pursuing net positive water and circular water economy strategies.
Actionable advice includes benchmarking water intensity against peers and adopting AWS standards. Boards elevate water to C-suite priority for regulatory compliance and innovation in water tech. These efforts foster long-term shareholder value through green finance opportunities.
Regulatory Mandates on Water Reporting
EU CSRD mandates water double materiality for over 50,000 companies from 2025, while the SEC climate rule requires water risk disclosure. These rules push ESG reporting toward comprehensive water governance. Non-compliance risks hefty fines, urging proactive measures.
Key regulations include:
- EU CSRD covering scope 3 water impacts
- SEC 2024 Climate Rule on physical risks
- CDP Water scoring thousands of companies
- California SB 253 addressing water GHG links
- Brazil CVM 179 mandating water risk assessments
Companies respond by enhancing transparency through metrics and KPIs. This supports accountability in water recycling and wastewater treatment for license to operate.
Practical integration involves life cycle assessment for water and nexus analysis with energy and food. Public-private partnerships aid compliance, promoting nature-based solutions like aquifer recharge. Such steps ensure equitable access and advance SDG 6 for sustainable development.
Business Risks of Water Insecurity
Water disruptions pose major threats to business operations worldwide. Companies in high-risk areas face physical risks from droughts, regulatory risks from stricter water pricing, and reputational risks from NGO campaigns. These factors threaten long-term value creation and license to operate.
Physical disruptions like droughts halt production and strain supply chains. Regulatory changes increase costs through new water fees and compliance rules. Reputational damage arises from public backlash over poor water stewardship.
Real-world cases highlight these dangers. For instance, Rio Tinto faced a potential $1 billion mine closure due to denied water permits. Firms must prioritize water security to build operational resilience and meet investor expectations in ESG reporting.
Effective risk management involves watershed protection and stakeholder engagement. Companies adopting net positive water strategies reduce exposure to freshwater scarcity. This approach supports sustainability and competitive advantage.
Operational Disruptions
Coca-Cola’s 2000 Kerala plant closure cost over $100 million due to groundwater depletion protests. Such events underscore operational disruptions from water insecurity. Businesses must address these to ensure continuity.
Key disruptions include production halts, as seen with Foxconn’s sharp output drop during a 2021 drought. Cost spikes occur in stressed basins where water prices rise. Asset write-downs follow when facilities become unviable.
- Production halts from water shortages stop assembly lines and delay deliveries.
- Cost spikes force reallocations, squeezing margins in manufacturing.
- Asset write-downs devalue infrastructure in high-risk zones.
- License revocations end operations abruptly, as in multiple annual cases.
To counter these, companies should implement water recycling and drought resilience plans. Auditing water usage and pursuing AWS certification help build operational resilience.
Financial and Reputational Costs
Nestl’s 2015 water bottling backlash erased billions in market value within months. These incidents reveal the steep financial and reputational costs of poor water management. Firms risk lasting damage to brand reputation.
Impacts span higher costs of capital and credit downgrades tied to water stress. Litigation from communities adds settlement burdens. Brand valuation drops when trust erodes among consumers.
- Higher equity premiums raise borrowing expenses for at-risk firms.
- Credit agencies now factor water stress into ratings.
- Lawsuits over water rights drain resources through settlements.
- Market cap losses follow public campaigns against overuse.
Research suggests strong water grades correlate with better returns. Companies can mitigate risks via transparent ESG reporting and community relations. Adopting circular water economy practices fosters accountability and long-term shareholder value.
Strategic Opportunities in Water Stewardship
Companies pursuing water stewardship open doors to major strategic gains in ESG performance. Strong practices build license to operate, attract top talent, and support premium pricing. Leadership brands often see advantages in investor appeal and market positioning.
A $6.7T water investment opportunity emerges by 2030 as businesses address freshwater scarcity. Firms with AWS certification demonstrate higher ESG scores and improved stock performance through better resource conservation. This certification signals commitment to sustainable development goals like SDG 6.
Brands gain from net positive water pledges, much like Microsoft’s initiative that unlocked green bonds. Such moves enhance stakeholder engagement and risk management. They also foster supply chain sustainability amid rising water stress.
Practical steps include water auditing and water footprint assessments. These actions drive water usage efficiency and drought resilience. Companies prioritizing corporate water strategy position themselves for long-term value creation.
Innovation and Competitive Advantage
Xylem’s smart meters help cut industrial water use, boosting the firm’s market standing. Such tools exemplify innovation in water tech for water management. They provide competitive advantage in a landscape of climate change pressures.
Key innovations include:
- AI optimization, as in Google DeepMind’s cooling savings.
- Digital twins for accurate leak predictions.
- Nanotech filtration to remove contaminants effectively.
- Blockchain provenance, like IBM Food Trust for tracking.
- Nature-based solutions, such as cost-effective wetlands.
These technologies advance circular water economy and water recycling. Businesses adopting them improve ESG reporting under standards like GRI and SASB. They also enhance operational resilience.
Start with data-driven decisions via water auditing. Integrate nature-based solutions for ecosystem restoration. This approach builds brand reputation and supports biodiversity.
Access to Capital and Partnerships
Water-positive companies tap into favorable green finance options with attractive yields. This access stems from strong water security commitments. Investors value regulatory compliance and transparency in water governance.
Key funding sources feature:
- Green bonds for sustainable projects.
- Blended finance mechanisms like those from Water.org.
- Impact funds focused on water equity.
- Public-private partnerships, such as Singapore’s NEWater.
PepsiCo’s water bond issuance shows how stewardship lowers costs. These partnerships aid watershed protection and pollution prevention. They promote multi-stakeholder initiatives for shared goals.
Prioritize water disclosure through CDP water metrics. Engage in PPPs for integrated water resources management. This strategy meets investor expectations and drives long-term value creation.
Key Industries at Risk
Agriculture consumes 70% of global freshwater, while manufacturing faces 3x cost increases in stressed basins. WRI data highlights seven industries driving 90% of industrial water risk. Companies must prioritize water stewardship to address freshwater scarcity and build ESG resilience.
Water intensity benchmarks reveal stark differences, such as semiconductors at 7,600 m per $M revenue and textiles at 200 m per ton. These metrics underscore water-related risks in supply chains. Firms adopting water management strategies gain competitive advantage amid climate change.
Effective risk management involves water auditing and benchmarking against peers. Industries like tech and food production lead with innovations in water recycling. This shift supports sustainable development goals like SDG 6 and enhances investor expectations for ESG reporting.
Stakeholder engagement in watershed protection fosters long-term value creation. Leaders integrate water footprint assessments into corporate water strategy. Proactive steps ensure operational resilience against drought resilience challenges.
Agriculture and Food Production
Almond production uses 10% of California’s water; drought cut yields 25% in 2021. This exposes agriculture and food production to severe water stress. Farmers need water stewardship to safeguard supply chain sustainability.
| Crop | Water Use (m/ton) | Stress Exposure |
| Almonds | 12,000 | High |
| Beef | 15,400 | High |
| Rice | 3,000 | Medium |
Nestl employs drip irrigation for 30% savings, while PepsiCo’s CropForLife boosts water productivity by 50%. These tactics promote resource conservation. Adopting drip systems cuts waste and builds drought resilience.
Nature-based solutions like soil moisture conservation enhance ecosystem restoration. Companies audit water usage efficiency for regulatory compliance. This holistic approach aligns with AWS standard for certification.
Manufacturing and Textiles
Textile dyeing consumes 200L per t-shirt; Levi’s Water<Less tech saves 96% per jeans. Manufacturing and textiles face high water intensity, straining freshwater scarcity. Innovation drives industrial water efficiency.
| Industry | Water Use (m/ton) |
| Steel | 28 |
| Textiles | 200 |
| Chemicals | 50 |
Adidas saves 20M m/year via dyeing innovation. Yet 50% of companies lack water recycling. Implementing wastewater treatment supports a circular water economy.
Pollution prevention and water quality monitoring reduce reputational risk. Firms benchmark water productivity using GRI standards. This fosters corporate responsibility and license to operate.
Tech and Data Centers
Google data centers used 5B gallons (19B liters) in 2022; cooling accounts for 85% consumption. Tech and data centers amplify water security challenges. Operators pursue net positive water goals.
Hyperscalers consume 500,000 m/year per campus. Microsoft aims for carbon negative, water positive by 2030. Innovations like air cooling reduce usage by 50%.
Google mixes 20% reclaimed water. Water recycling and renewable water sources build resilience. Digital tools enable AI water optimization for efficiency.
- Assess water footprint across operations.
- Invest in desalination or rainwater harvesting.
- Engage stakeholders for watershed protection.
Water Stewardship Best Practices
Top performers achieve 30-50% water reductions via integrated strategies, as seen with CDP A-listers. The AWS 5-step roadmap guides companies toward better water stewardship. It delivers average improvements in the first year through structured actions.
Companies start with baselining current usage to identify gaps. Next, they set targets aligned with SDG 6 and local water stress. Implementation involves tech upgrades and stakeholder buy-in for lasting impact.
Water auditing reveals inefficiencies in operations. Firms then prioritize water recycling and wastewater treatment. Regular reviews ensure progress in ESG reporting under GRI standards.
Experts recommend combining nature-based solutions like rainwater harvesting with digital tools. This builds drought resilience and supports supply chain sustainability. Long-term, it enhances corporate responsibility and investor expectations.
Measurement and Disclosure Tools
WRI Aqueduct offers free basin stress mapping for global benchmarking with a 10-minute setup. It stands out against paid options like Gold Standard Water Tool at $5K per year for LCA certification. These tools aid water footprint assessment and regulatory compliance.
Choose tools based on needs for ESG reporting and risk management. Aqueduct suits initial screening, while CDP fits investor reporting. This ensures transparency in water security and physical risks.
| Tool | Price | Key Features | Best For | Pros/Cons |
| WRI Aqueduct | Free | Basin stress mapping | Global benchmarking | Quick setup; limited customization |
| CDP Water Questionnaire | Free | Standardized disclosure | Investor reporting | Peer comparison; time-intensive |
| AWS Core Metric | Free | Stewardship metrics | Certification prep | Actionable KPIs; requires data |
| Water Footprint Network Calculator | Paid | Footprint calculation | Supply chain analysis | Detailed insights; subscription cost |
| IBM Environmental Intelligence | $10K+ | AI-driven analytics | Enterprise optimization | Advanced forecasting; high price |
Use Aqueduct for screening, CDP for investor reporting. Integrate with TCFD and SASB for comprehensive water disclosure. Track water intensity to benchmark against peers.
Circular Water Economies
Build a circular water economy with these steps: start with a baseline audit using Water Audit ISO 24518. Then implement zero liquid discharge for high recovery rates. Follow with rainwater harvesting to supplement supply.
- Conduct baseline audit (Water Audit ISO 24518) to map usage.
- Install zero liquid discharge (ZLD): high recovery rate, suitable for plants.
- Adopt membrane bioreactor (MBR): strong pollutant removal for wastewater.
- Add rainwater harvesting: boosts renewable water sources.
- Implement greywater reuse: supports irrigation needs.
- Optimize cooling towers: cuts operational waste.
Expect timelines of 6-12 months for rollout, with ROI in 18-24 months. Examples include industrial sites achieving efficiency via MBR. This drives zero water waste and net positive water goals.
Water recycling reduces freshwater scarcity reliance. Pair with desalination where viable for coastal operations. These practices enhance water productivity and align with planetary boundaries.
Stakeholder Engagement Models
Strengthen stakeholder engagement through proven models. Collective Action Networks like CEO Water Mandate unite over 200 companies. Basin partnerships average 20 organizations for shared watershed protection.
- AWS stakeholder water audits conducted annually.
- CEO Water Mandate with 200+ signatories for collaboration.
- River basin NGOs, such as WWF partnerships.
- Community water funds at $1-10M per basin.
- Indigenous consultation protocols for equitable access.
Coca-Cola’s 300 community partnerships show real impact. These models foster water diplomacy in transboundary areas. They address human rights to water and gender equity.
Engage via multi-stakeholder initiatives for holistic IWRM. Public-private partnerships build community relations and license to operate. Track progress to mitigate reputational risk and support long-term value creation.
Case Studies of Leadership
Unilever reduced water footprint 49% since 2008 baseline and saved EUR600M in operating costs. Three global leaders achieved an average 35% water reduction while earning AWS certification. These examples show how water stewardship drives ESG success.
Companies prioritize water usage efficiency through auditing and recycling. They integrate watershed protection into supply chains for long-term resilience. This approach meets investor expectations in sustainability.
Aquifer recharge and nature-based solutions restore ecosystems. Firms report progress via CDP Water and GRI standards. Such leadership builds competitive advantage amid freshwater scarcity.
Stakeholder engagement ensures transparency and accountability. These cases highlight corporate water strategy as an emerging ESG trend. They offer models for risk management and growth.
Corporate Success Stories
Microsoft from 2020-2023 achieved water positive status across 100% facilities. Their strategy replenished 1.5x usage via aquifer recharge. Results include a CDP Water A score and $1B green bond access.
Unilever cut its water footprint 49% since 2008, saving EUR600M. Nestl’s Watershed Repair restored 20M m of water sources. These efforts advance net positive water goals.
Diageo reduced usage by 30% and earned AWS Gold certification. Companies adopt water recycling and wastewater treatment for efficiency. This supports ESG reporting under TCFD and SASB.
- Microsoft focuses on direct replenishment projects in high-stress areas.
- Unilever emphasizes supply chain sustainability with suppliers.
- Nestl invests in ecosystem restoration for biodiversity.
- Diageo uses water auditing for continuous improvement.
Collaborative Basin Initiatives
Cape Town Day Zero was averted when 130 companies formed a collaborative effort, saving 50% municipal demand. The Cape Town Water Task Force drove demand reduction. This shows power of multi-stakeholder initiatives.
Milk River Council between US and Canada secured a 20% allocation agreement. It promotes transboundary water diplomacy. Participants enhanced water security through shared governance.
Yangtze River Protection relocated 1,200 factories to curb pollution. Efforts improved water quality and drought resilience. These initiatives align with SDG 6 for clean water.
Public-private partnerships foster integrated water resources management. Data-driven decisions via AI optimize usage. Such collaborations build operational resilience against climate change.
Future Outlook and Calls to Action
Water will surpass biodiversity as #2 ESG issue by 2027 according to PwC forecast. Companies prioritizing water stewardship now gain a competitive edge in ESG investing. Investors increasingly demand transparency on water-related risks amid freshwater scarcity.
CSRD and ISSB convergence will standardize ESG reporting for water metrics by late 2020s. This shift pushes firms toward net positive water goals. Nature-based solutions like watershed protection and ecosystem restoration are going mainstream for drought resilience.
Leaders should integrate water into corporate water strategy, linking it to board oversight and C-suite priorities. Multi-stakeholder initiatives foster basin collective action. This holistic approach builds long-term value creation and operational resilience.
Forward-thinking organizations adopt circular water economy practices, such as water recycling and rainwater harvesting. These steps enhance supply chain sustainability and regulatory compliance. Proactive water governance secures license to operate and brand reputation.
Emerging Standards and Metrics
ISSB S2i water metrics become mandatory in 2026, covering water withdrawal by source and stress-adjusted intensity. These standards demand detailed disclosure on water usage efficiency. Firms must prepare for integrated water resources management reporting.
AWS 3.0 introduces catchment KPIs to measure watershed protection impacts. Companies track pollution prevention and water quality in shared basins. This certification scheme promotes stewardship principles across operations.
EU Taxonomy adds water criteria for green finance eligibility, focusing on water footprint reduction. TNFD highlights water interdependencies with biodiversity and climate change. Science Based Targets for Water sets net positive trajectories aligned with SDG 6.
- ISSB S2i mandates stress-adjusted water intensity for risk management.
- AWS 3.0 emphasizes catchment-level outcomes for collective impact.
- EU Taxonomy requires minimum safeguards on water stress.
- TNFD integrates water-related physical risks into nature disclosures.
- Science Based Targets guide restorative water goals by 2030.
Policy Recommendations
Establish a board-level water committee, similar to many carbon committees. Conduct annual scenario analysis with 1.5 degreesC drought modeling. This ensures board oversight on water security and transition risks.
Link C-suite water KPIs to 5% EBITDA for accountability. Develop a 12-month AWS certification roadmap. Include supplier water clauses to address scope 3 emissions in supply chain sustainability.
Aim for CDP Water A rating through rigorous water auditing. Allocate 1-2% of capex to water investments like wastewater treatment. Join basin collective action for transboundary water diplomacy.
- Form board-level water committee for governance.
- Run annual 1.5 degreesC drought scenario analysis.
- Tie C-suite KPIs to financial incentives.
- Pursue AWS 3.0 certification in 12 months.
- Add water clauses to supplier contracts.
- Target CDP Water A list status.
- Invest 1-2% capex in water innovation.
- Initiate basin collective action groups.
- Report progress annually with peer benchmarking.
Frequently Asked Questions
What is water stewardship, and why is it considered the next major ESG frontier?
Water stewardship refers to the responsible management and conservation of water resources to ensure sustainability. Why Water Stewardship is the Next Major ESG Frontier lies in escalating global water scarcity, climate change impacts, and regulatory pressures, making it a critical pillar of Environmental, Social, and Governance (ESG) strategies for businesses worldwide.
Why is water scarcity driving water stewardship as the next ESG priority?
With over 2 billion people facing water stress and projections of 5 billion by 2050, water scarcity threatens industries like agriculture, manufacturing, and energy. Why Water Stewardship is the Next Major ESG Frontier is evident as investors and regulators demand proactive measures to mitigate risks and demonstrate long-term resilience.
How does water stewardship integrate into the broader ESG framework?
Water stewardship primarily falls under the ‘E’ in ESG but intersects with ‘S’ through community impacts and ‘G’ via board-level oversight. Why Water Stewardship is the Next Major ESG Frontier stems from its ability to address interconnected risks like supply chain disruptions, enhancing overall ESG performance and corporate value.
What are the business risks of ignoring water stewardship in ESG strategies?
Ignoring water issues can lead to operational disruptions, higher costs, reputational damage, and stranded assets. Why Water Stewardship is the Next Major ESG Frontier is because forward-thinking companies are turning these risks into opportunities for innovation, efficiency, and competitive advantage in water-vulnerable regions.
How are regulations and investors pushing water stewardship forward as an ESG focus?
New mandates like the EU’s Corporate Sustainability Reporting Directive and investor frameworks from BlackRock and others prioritize water metrics. Why Water Stewardship is the Next Major ESG Frontier is fueled by this shift, where disclosure and performance on water become key criteria for funding and market access.
What actionable steps can companies take to lead in water stewardship within ESG?
Companies can start with water audits, set science-based targets via alliances like AWS, and invest in recycling tech. Why Water Stewardship is the Next Major ESG Frontier encourages early adopters to build stakeholder trust, reduce costs by up to 30%, and position themselves as sustainability leaders.