Strategic Intelligence: Water Risk and Stewardship in Consumer
Description
Strategic Intelligence: Water Risk and Stewardship in Consumer
Summary
Global freshwater use has doubled since the mid-1960s, and demand is set to exceed supply by 40% by 2030, exposing consumer goods 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 consumer goods 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
- Agriculture accounts for 70% of the world’s water use. The world relies on agriculture for food, and consumer goods companies need agricultural products for ingredient sourcing. Agriculture is also a major source of pollution.
- The fashion industry is one of the world’s hidden water-guzzlers. Producing one cotton T-shirt uses 2,700 liters of water.
- 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 consumer sector, including agriculture, retail and apparel, and consumer goods.
- 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 consumer sector and identifies ways to address water-related challenges.
Table of Contents
49 Pages
- Executive Summary
- Understanding the Increase in Water Risk
- The Four Types of Corporate Water Risk
- Water Risk in the Consumer Sector
- Water Stewardship in the Consumer Sector
- Glossary
- Further Reading
- Report Authors
- Our Thematic Research Methodology
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