Panorama global

The private sector will face extreme pressure due to concerns over water scarcity, accessibility, and poor water quality. This may even bring companies in conflict with communities over access to water. A number of major companies already evaluate how water quality and quantity affects their growth strategy. According to the Carbon Disclosure Project, two-thirds of the world's largest companies are reporting that they will be exposed to water risks in the short term, with potential growth limitations.159

153 _{Environmental Leader (2015), “Smart Irrigation Reduces Agricultural Water Use”, (available at:}

http://www.environmentalleader.com/2015/04/08/smart-irrigation-reduces-agricultural-water-use/; last accessed 24 November 2015)

154 _{Center for European Policy Studies (2012), “Which Economic Model for a Water-efficient Europe?”, p.43} 155 _{ABB (2009), “Growing more crops with less water”, ABB Group, (available at:}

http://www.abb.ch/cawp/seitp202/22ea6ffcc5ac1f79c12576330040c62e.aspx; last accessed at 24 November 2015)

156 _{Sirrimed (2014), “Sustainable use of irrigation water in the Mediterranean Region – SIRRIMED, Summary of Key Findings”, p.6 (available}

at:http://sirrimed.org/catalogo/d_7_8_sirrimed_key_findings_v_final.pdf; last accessed 24 November 2015)

157 _{Brabeck-Letmathe, P., (2015), “Smart water management to address the crisis”, Nestle, (available at: https://www.water-}

challenge.com/posts/smart-water-management-to-address-the-crisis; last accessed 24 November 2015)

158 _{Horizon 2020 (2014), “A smart way to irrigate crops – and save water”, European Commission, (available at:}

http://ec.europa.eu/programmes/horizon2020/en/news/smart-way-irrigate-crops-%E2%80%93-and-save-water; last accessed 24 November 2015)

159 _{Sustainable Brands (2015), “CDP Identifies 853 Water Risks Threatening Growth For World's Largest Companies” , (available at:}

http://www.sustainablebrands.com/news_and_views/next_economy/sustainable_brands/cdp_identifies_853_water_risks_threatening_ growth_wor ; last accessed 24 November 2015)

41 It is in the interest of water-dependent industry to find ways to improve their own water footprint but also help those that contribute to sustainable water management. Developing new business models that encourage sustainable water use benefits both industry as well as society and the economy as a whole.

In order to promote water risk assessment, the World Wildlife Fund has created a quantitative ‘Water Risk Filter Tool’ to assess the risks faced by businesses based on the river basin they extract from and their water use. This evidenced-based tool will help educate businesses about the risks and instigate efficient usage.160

The European Commission sponsored cross-sectoral project ‘AquaFit4Use’ has generated and facilitated solutions for sustainable water use in paper, food, textile, and chemical industries. For example, new water quality management software helped to reduce freshwater usage by 20-50%, depending on the industry.161 _{This project is a leading example of a cross-sectoral research project}

pooling expertise to generate improvements across sectors, and to close water cycles in order to increase water reuse and thus lower the EU’s water footprint.

The forest and paper industry has taken various efforts to improve its water footprint. For example, in Europe the Confederation of European Paper Industries’ (CEPI) Two Team Project led to an innovation to use vapour combined with dry fibres to form paper and board. Once commercialised, this would only use one-thousandth the volume of water used today. 162

Achievements have been made also in the US, where water use in the forest industry returns 88% of the water used directly to surface waters after treatment. Improvements in this sector have resulted in a 69% reduction in average treated-effluent flow volume from pulp and paper mills since 1959. Effluent quality has also drastically improved due to better wastewater treatment operations.163

The chemical industry can also provide an important contribution to improving industrial water management. The European project ‘E4Water’ brings together academics and the chemical and water industry to achieve 20-40% reductions in water use and 30-70% reductions in wastewater production at the case study sites. One such case study site in Kalundborg, Denmark uses microalgae to clean waste water streams, producing biomass to be resold as proteins and lipids for such products as fish food, thereby reducing waste and adding value to wastewater management.164

The food industry depends on water, and thus has a strong natural interest to promote water efficiency. For example, water-saving projects in Nestlé’s factories reduced direct water withdrawals per tonne of product by 6% in 2014 (37% reduction since 2005). The company has identified 31 manufacturing facilities that are located in areas of severe water stress and/or represent a significant portion of its water withdrawals as areas for priority action.165

160 _{WWF (2015), “The Water Risk Filter”, (available at: http://waterriskfilter.panda.org/; Last accessed 24 November 2015)}

161 _{See the brochure of ‘AquaFit4Use’ project(available at http://www.aquafit4use.eu/userdata/file/Articles/Aquafit4use_success-stories-}

h2020_2012.pdf; last accessed 24 November 2015)

162 _{CEPI (2013), “The two team project”, pp.18-19}

163 _{Sappi (2012), “Water Use and Treatment in the Pulp and Paper Industry”, Sappi Fine Paper North America, p.3}

164 _{See website of E4Water (2015), “Economically and Ecologically Efficient Water Management in the European Chemical Industry}

(E4Water)”, (available at: http://www.e4water.eu/; last accessed 25 November 2015)

165 _{See website of Nestlé (2015), “ Water efficiency”, (available at: http://www.nestle.com/csv/water/water-efficiency; last accessed 24}

42 Water-intensive businesses can benefit from involving local communities in the design of new business models. This can enhance local buy-in and help to develop partnerships that foster long- term sustainable development, in both developed and developing countries. Such partnerships can also be used as the basis to achieve the sustainable development goals.166

The companies that supply water efficiency solutions would benefit from wider collaboration as well: this would include knowing the needs and interests of their potential customers, but also making them aware of the existing solutions. The starting point would be more active engagement with industry in need of new solutions but also with policy makers that design water-management policies.