Strategic Intelligence: Water Risk and Stewardship in Technology
Description
Strategic Intelligence: Water Risk and Stewardship in Technology
Summary
Global freshwater use has doubled since the mid-1960s, and demand is set to exceed supply by 40% by 2030, exposing technology companies to operational, financial, regulatory, and reputational pressures.
Water stewardship involves using water in ways that are socially equitable, environmentally sustainable, and economically beneficial. Reducing water use, adopting alternative cooling methods, increasing recycling, and taking basin-level action will protect operations and help mitigate emerging regulatory and reputational risks.
Key Highlights
Summary
Global freshwater use has doubled since the mid-1960s, and demand is set to exceed supply by 40% by 2030, exposing technology companies to operational, financial, regulatory, and reputational pressures.
Water stewardship involves using water in ways that are socially equitable, environmentally sustainable, and economically beneficial. Reducing water use, adopting alternative cooling methods, increasing recycling, and taking basin-level action will protect operations and help mitigate emerging regulatory and reputational risks.
Key Highlights
- Tech manufacturing requires ultrapure water; the purification process requires vast amounts of water. It takes between 1,400 and 1,600 gallons of water to make 1,000 gallons of ultrapure water. Manufacturing infrastructure is also at risk from water-related hazards like flooding and drought.
- Data centers are water guzzlers, using the resource to cool servers and, indirectly, to generate energy. Many data centers are being built in drought-prone areas, putting pressure on local water resources.
- Freshwater is a fundamental resource for communities, ecosystems, and businesses. Around 1% of water on the planet is readily available for human and environmental use. The severity of water stress is increasing due to climate change. Water stress is impacting business operations and causing water insecurity among populations that depend on freshwater for drinking and agricultural use.
- This report includes a framework for understanding the four main types of corporate water risk (operational, regulatory, reputational, and financial).
- It also identifies the key water risks impacting the tech sector, including manufacturing, data centers, and e-waste recycling.
- It introduces GlobalData's water stewardship framework, which identifies six key approaches to water-related risk.
- Addressing water challenges and identifying available water sources are key to creating resilient supply chains and ensuring water is readily available for future generations. This report identifies the main water risks impacting the tech sector and identifies ways to address water-related challenges.
Table of Contents
52 Pages
- ^
- Executive Summary
- Understanding the Increase in Water Risk
- The Four Types of Corporate Water Risk
- Water Risk in the Tech Sector
- Water Stewardship in the Tech Sector
- Glossary
- Further Reading
- Thematic Research Methodology
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