Insight

Watershed management – a social licence to operate

Water Report2

Our latest report, Water Stewardship: Trends and perspectives within the global process industry, examines the key challenges facing manufacturers – and the innovations and strategies being deployed to tackle them. In the second of our four-part blog series, we look at why watershed management is now a social licence to operate.

March 13, 2025

Watersheds – the areas of land from which surface water flows into rivers – are critical to the health of people, animals and plants, yet many are under threat from industrial and agricultural activity, and extreme weather due to climate change.

The European Environment Agency, for instance, has stated that the continent’s supply is under ‘significant pressure’, heightening the risk of scarcity, droughts and floods, all of which have a high human (including economic) and ecological cost.

The process industry depends on clean and plentiful water supplies, as we saw in our last blog, Water is the lifeblood of the process industry Water stewardship | Download the report here! - NIRAS. Manufacturers, particularly process manufacturers, have long been a major consumer of water, and a contributor to waste and pollution, so there’s both an ethical and commercial imperative for companies to act.

Watershed management extends beyond regulation – it is, in fact, a social licence to operate.

Manufacturers have a responsibility to balance their own business needs with those of the environment and local communities.

What does good watershed management look like?

Watershed management requires a deep understanding of the entire water cycle within a watershed – from rain to surface run-off, to groundwater and discharge. As we explain in our report Water stewardship | Download the report here! - NIRAS, the process industry, and others, need to take a holistic approach to improve the overall health of our watersheds.

Watershed management requires a deep understanding of the entire water cycle within a watershed – from rain to surface run-off, to groundwater and discharge.

Water Report2

Gaining – and keeping – your social licence to operate

The social contract manufacturers have with their local communities and stakeholders is hard-earned and easily lost. Whether you’re opening a new facility, or simply facing growing pressure from the public and your shareholders in an existing location, you’ll need to take action to win their trust – but how exactly can you do this? Below, we share our tips.

Involve your community

Don’t shy away from scrutiny. Actively engage your community to address concerns and work with relevant authorities and conservation groups to improve watershed management practices in the areas where you operate.

  • Share best practices

Working with government agencies, councils and non-governmental organisations helps to promote information-sharing and best practices. Together, you can improve the resilience of watersheds in a way that promotes both economic growth and conservation.

  • Make watershed management a strategic imperative

While sustainable watershed management isn’t a regulatory imperative, it should be a strategic one. Only by engaging with key stakeholders can you secure a social license to operate, and support the health and sustainability of watersheds. It also protects your business from future challenges like the ones outlined below, so you can continue to operate.

Other steps you can take

Our report Water stewardship | Download the report here! - NIRAS identified three more steps you can take to mitigate the impact on water availability, droughts and floods.

  • Water availability: Reduce your reliance on surface water

Surface water, taken from rivers, lakes and reservoirs, is a valuable source of water in many industries – but climate change and seasonal variations can limit the supply.

Extracting ground water is one option but it can cause depletion of supplies and issues like land subsidence. Another option is desalination, which is becoming increasingly common in arid regions and coastal areas, although the process is energy-intensive and the brine must be disposed of.

A more sustainable solution is treating municipal waste water, a practice gaining traction in water-scarce places like India and South Africa, as well as industrially-advanced areas such as Silicon Valley. Treated effluents – the byproducts of industrial processes – can also be reused to improve water efficiency, while harvesting rainwater can supplement other sources.

  • Drought: Collaborate to reduce your water footprint

As well as being a contributor to droughts, the process industry (like many others) is also vulnerable to their impact. A collaborative approach to watershed management, by engaging with counterparts in other corporations and sectors like agriculture, could help you collectively drive down your water footprint – and improve your resilience and reputation.

  • Flooding: Conduct risk assessments and develop flood prevention infrastructure

Comprehensive flood management strategies are now critical in many parts of the world. Depending on the risk, you may need to implement defences such as levees and floodwalls, and design your facilities to withstand flooding. Your strategy may also incorporate an emergency response plan to protect staff and minimise operational disruption in the event of flooding, and working with local communities to develop early warning systems.

Looking ahead

Just as you need to scrutinise your internal processes to minimise environmental impact, so too should you consider the wider environment in which you operate. Preserving our watersheds is collective responsibility, and it’s in everyone’s interest to be proactive.

Download our free guide, Water Stewardship: Trends and perspectives within the global process industry Water stewardship | Download the report here! - NIRAS, for expert insights and practical tips on how to get started.

Comprehensive flood management strategies are now critical in many parts of the world. Depending on the risk, you may need to implement defences such as levees and floodwalls, and design your facilities to withstand flooding.

See also:

Reach out:

Søren Hvilshøj

Søren Hvilshøj

Senior Market Director

Allerød, Denmark

+45 6020 1917

Søren Nøhr Bak

Søren Nøhr Bak

Senior Expertise Director - Water & Sustainability

Aarhus, Denmark

+45 2025 7033