A new report from global management consultancy Arthur D Little warns businesses that unless they take steps to improve their water management, they could damage corporate performance.
The report argues that it is imperative for companies to assess their water footprint and gives several illustrations of how water affects businesses' financial performance.
Arthur D Little suggests an assessment of 'value drivers' that include water security, regulation and expectations of stakeholders. These ‘value drivers’ can then be used to calculate immediate and future cost savings.
électricité de France (EDF) was recently hit by losses of around €300 million (£254m) when it had to close a quarter of its 58 plants due to water shortages. Anheuser-Busch has also suffered increased production costs due to water shortages in the supply chain.
With the media already branding water as 'the next carbon', the report notes that water management is increasingly being acknowledged as a key focus area for business. “Addressing a company's water and carbon issues requires a balancing act, recognising the differences but also the synergies that can be derived from addressing both in a strategic, coordinated way,” said a spokesman for Arthur D Little.
