5 steps to good water governance

No matter which country you operate in, or what the type of business is, good water governance has to be a priority. Every organisation has a responsibility to ensure that water is used efficiently, equitably, and sustainably, and that industrial waste water discharges are minimised or eliminated completely.

While we don’t yet know what future water regulations will look like, nor how scientific and technical advances will impact production processes, the following five steps can set you on the right path. Together, they can help you achieve globally-recognised standards that instill confidence in your customer, investors and other stakeholders.

1. Make water stewardship part of your strategy

As we saw in our report, water stewardship is a holistic approach to water management – safeguarding it for people, ecosystems and businesses.

Collaboration between businesses, governmental and non-governmental organisations and other stakeholders is essential, given the enormity and complexity of the task. Part of water stewardship involves balancing the requirements of different stakeholders. The Alliance for Water Stewardship is a global network which sets the standard for what good looks like. Take a look at the website to find out more.

2. Follow the CDP Water Security program

Another global initiative is the CDP Water Security program, which promotes transparency and accountability. It urges businesses to disclose their water-related risks, opportunities and impacts, and provides a standardised framework for reporting water-related data. This data offers a foundation for companies to set themselves water-related targets, and enable stakeholders, including investors and policy makers, to track performance and incentivise best practices.

3. Work towards Net Positive Water Impact (NPWI)

First devised by the UN Global Compact, Net Positive Water Impact (NPWI) is not simply about reducing water consumption and pollution. As the name suggests, the goal is to have a net positive impact on water resources – for example, by conservation projects to enhance ecosystems, cleaning up rivers and oceans, and improving availability for local communities. It demands a raft of initiatives that might fall outside day-to-day operations, however, they can ensure the long-term resilience of water supplies both for businesses and the surrounding areas.

4. EU CSRD and taxonomy

Another key framework is The European Union’s Corporate Sustainability Reporting Directive (CSRD)25 and Taxonomy Regulation26.

The CSRD requires companies to report on their environmental, social and governance (ESG) impacts, including their water management practices. The EU Taxonomy provides a classification system for sustainable economic activities.

They’re mandatory for certain companies but if yours doesn’t meet the criteria, or you don’t operate in the EU, they still provide a useful structure for water management initiatives. Again, the EU CSRD and taxonomy promote transparency in corporate reporting – so companies not only meet their regulatory obligations but could attract sustainable investments too.

5. Science Based Targets for Water

Just as some businesses are increasingly setting themselves Science Based Targets to achieve net-zero, so too are they committing to similar water-based targets. Science Based Targets for Water provides a framework for ambitious targets, grounded in the latest scientific knowledge and innovations. It provides the evidence businesses need to develop long-term solutions, while promoting accountability and transparency through regular reporting.

Leading plant-based manufacturer Alpro, for instance, has been part of a science based pilot programme, which has enabled it to understand, with greater precision, the impact of its activities at one of its supply and production basins in France. Although it had already undertaken some work to tackle decreasing freshwater supplies, using the science based targets methodology has provided a recognised framework and clear actions.

Securing supplies for the future

Water security is one of the biggest challenges of our time, if not the biggest.

The industrial sector not only has a vested interest in protecting its own supplies but a social responsibility to ensure that communities and ecosystems don’t suffer as a result of its actions. The initiatives set out above encourage companies to set ambitious but realistic targets, grounded in evidence. Starting this process now ensures that you’ll be ready for future regulation and customer expectations, while innovations in water management processes could open up new opportunities to reduce costs and grow your business.

Download our free guide, Water Stewardship: Trends and perspectives within the global process industry, for expert insights and practical tips on how to get started.