The statistics seem far away, but the reality is that they are not. Although more than 70% of the Earth’s surface is covered by water, 97% of it is found in the seas and oceans, being salty. Of the 3% of fresh water available, less than 1% is suitable for consumption and even that is being highly polluted and contaminated by human activity (WWF). These data demonstrate why, by 2040, 44 countries, including Portugal, could face “high” and “extreme” levels of water stress, not having enough water to sustain their populations on a daily basis (Economist, 2023).
Agriculture and raw material processing industries are responsible for using more than 65% of the water available in the world, leaving a percentage of around 10% for daily use by the population (Schroders, 2021). To produce consumer goods, as simple as a cup of coffee or a t-shirt, it is estimated that 130 and 2,500 liters of water are used, respectively. However, the problem does not lie in the fact that the majority of the population drinks coffee or wears clothes, but in the lack of regulation and concern regarding water as a finite asset. This reality is largely due to the fact that the price of water is not formulated taking into account the environmental impact of its use, which means that this resource is used almost free of charge and in an infinite logic by industries. An example of this is the case of the beverage industry, which often guarantees licenses to exploit water sources in exchange for organizations installing their factories in certain countries and generating jobs, a reality that means they are not paying for the water used.
Responsible water management is not just a matter of costs, but a fundamental pillar of ESGs (Environmental, Social and Governance), which increasingly pressure companies to balance financial interests with the impact in the three areas mentioned.
There are already companies committed to reducing their industrial consumption of drinking water, such as Nike, Adidas and Coca-Cola, which have developed innovation programs to create and invest in technologies that bring more efficiency to their production process. However, they did not escape accusations of greenwashing because the amount they spend on marketing and public relations to sell their goods as sustainable is often higher than that allocated to the implementation of innovation in this aspect.
Achieving water sustainability requires companies to adopt a value chain-wide perspective, which includes assessing water risks across suppliers and business partners to ensure a holistic approach to water management. On the other hand, it is necessary to balance competing needs, collaborating with local communities, NGOs and other stakeholders to find mutually beneficial solutions.
In this sense, achieving water efficiency, as well as good water quality management, requires collaborative innovation – finding aligned solutions between partners who share objectives and smaller players such as startups. The potential of new technologies and exploratory methods can help unlock the tools that corporations need to be able to implement concrete projects in their operating structures, contributing to achieving water sustainability. Companies that prioritize water sustainability are better positioned to meet the growing expectations of investors and conscious consumers, but also to face scenarios of water scarcity and climate change. Only through the efforts of these agents to innovate in the way they bring products to thousands of people every day can we guarantee that water scarcity will not worsen irreversibly in the coming years. This is the real race against time, in an attempt to prevent water from becoming the “next oil” – catapulting its value and price.
The texts in this section reflect the personal opinion of the authors. They do not represent the VISION nor reflect its editorial positioning.
