Strategic Intelligence: Water Risk and Stewardship in Industrials

Global freshwater use has doubled since the mid-1960s, and demand is set to exceed supply by 40% by 2030, exposing industrial 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

• Mining operations require water for multiple processes, including mineral extraction and machine operation. Thousands of operational mines globally are in water-stressed areas. The demand for critical minerals, the extraction of which is a water-intensive process, is causing dilemmas by depleting water sources to produce decarbonization technologies.
• Energy generation requires water. Water is used to cool thermal power plants and is also a renewable energy source. The energy sector is responsible for around 10% of freshwater withdrawals.

Report Scope

• 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 industrials sector, including mining, energy, and construction.
• It introduces the analyst's water stewardship framework, which identifies six key approaches to water-related risk.

Reasons to Buy

• 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 industrials sector and identifies ways to address water-related challenges.