In the climate risk landscape, water has quietly become a leading concern. Droughts, flooding, water stress, and declining freshwater quality are already disrupting operations across sectors—from agriculture to manufacturing to tech. But where many businesses still see water as a utility cost, global investors and regulators now see it as a strategic vulnerability—and a test of corporate responsibility.
That’s why smart companies are no longer asking, “How much water do we use?” They’re asking, “How does our water use affect the basin, our license to operate, and our ESG standing?”
Why Water Is the ESG Issue Hiding in Plain Sight
Water metrics are increasingly material across a wide range of sectors. Investors now evaluate water disclosures in CDP Water. Global standards like CEO Water Mandate and GRI 303 offer structured guidance on water use, impacts, and governance.
Companies with large physical footprints or water-intensive processes are under growing pressure to quantify, disclose, and improve their water performance. That includes setting water reduction targets, evaluating supply chain exposure, and engaging local communities.
Water Is Local—And That Changes Everything
Unlike carbon, water impacts are highly localized. A gallon saved in a water-rich basin doesn’t carry the same value as one saved in a drought-prone region. That means stewardship must be site-specific. It must reflect not just your withdrawals, but the state of the watershed and your social and environmental impacts on it.
Without this context, companies risk pursuing efficiency gains that do little to reduce risk or build credibility.
What Effective Water Strategy Looks Like
At ECG Global Solutions, we help organizations understand and manage their water risks holistically. That includes:
- Water risk mapping across facilities, suppliers, and regions
- Gap analysis against CDP, GRI 303, and the CEO Water Mandate
- Materiality assessments to evaluate water’s relevance to ESG and operations
- Strategy development aligned with science-based and basin-specific goals
- Stakeholder engagement with regulators, communities, and NGOs
Our approach centers on connecting water performance to both risk management and brand leadership. Companies that lead on water are increasingly seen as environmental stewards—not just resource users.
The Bottom Line
If your company’s ESG strategy doesn’t yet include water, it’s incomplete. And in some sectors, it’s non-compliant.
Investors are watching. Communities are affected. And water—unlike carbon—has no substitute.
