Calculation of the water footprint associated with corporate and institutional operations. Many companies are beginning to realize that their business activities, operations, and supply chains are heavily dependent on water. Understanding the water footprint makes it possible to determine a strategy for managing water-related business risks.
The World Economic Forum’s report on global risks consistently ranks the water crisis among the global risks with the greatest impact. Until now, water has been regarded worldwide as an unlimited and inexpensive resource. Today, companies are beginning to recognize that mismanaging water is not cost-effective, as it poses business risks, damages a company’s reputation and credit rating, and increases insurance costs, among other things.
The water footprint is used to measure the water consumption required to produce goods and services. It can be calculated for a single process—such as corn cultivation—a specific product, or even an entire multinational corporation. The water footprint can also indicate how much water a given country consumes, and it can be interpreted in relation to a specific watershed or water resource.
The water footprint examines both the direct and indirect water use of a process, product, company, or sector, and covers water consumption and water pollution throughout the entire production cycle.
Calculating the water footprint helps answer important questions for manufacturing companies: The water footprint can be measured in cubic meters per metric ton of production, per hectare of cropland, per unit of currency, and in other functional units. The water footprint highlights how we use and pollute our limited freshwater resources.
- Can the most water-intensive area of the company’s operations or supply chain be identified?
- What measures are needed to reduce my water footprint, thereby contributing to the development of sound water management practices?
The water footprint has three components: green, blue, and gray. Together, these components provide a comprehensive picture of water use, as they determine the source of the water used—which can be precipitation/soil moisture or surface/groundwater—and the amount of freshwater needed to dilute pollutants.
Sustainable water management is a key issue in determining whether the world will be able to achieve the Sustainable Development Goals (SDGs) set for 2030. Water is the common denominator that connects nearly every SDG and is a critical factor in their success.
We are in contact with the Water Footprint Implementation organization, which has extensive experience and expertise in calculating companies’ water footprints.
Contact: info@kovet.hu
