Company Water Footprint Assessment | Tunley Environmental

One of the world’s most vital resources, water is under unprecedented stress due to climate change, population growth and industrial activities. Corporations play a significant role in this ongoing crisis, as companies require vast amounts of water in virtually all their operations, from manufacturing to processing and waste management. It is estimated that the agricultural sector alone is responsible for 70% of freshwater withdrawals in the world. This is especially concerning considering that freshwater withdrawals have increased nearly six-fold since the 1900s.

A company water footprint encompasses the total volume of freshwater used directly and indirectly to support its operations. This includes water consumed in production processes, supply chains, and even in the lifecycle of products and services. As businesses work towards aligning with sustainable practices, assessing and managing water usage is critical. 

Business Implications of Global Water Stress 

Water scarcity is a pressing global issue. The World Meteorological Organisation (WMO) reports that half of the global population experiences severe water scarcity for at least part of the year. By 2030, the United Nations predicts a 40% shortfall in freshwater resources if current consumption patterns continue. For businesses, this scarcity translates into operational risks, supply chain disruptions and increased costs. 

Data source: Global International Geosphere-Biosphere Programme (IGB) – Learn more about this data 

OurWorldinData.org/water-use-stress | CC BY 

Understanding a company water footprint allows organisations to anticipate these risks and adapt strategies that safeguard long-term sustainability. Industries reliant on water-intensive processes, such as agriculture, manufacturing and energy production, are particularly vulnerable. Moreover, stakeholders are increasingly holding companies accountable for their environmental impact, making transparent water management practices a critical component of corporate reputation and compliance. 

How Industries Use Water 

Different sectors have varying degrees of dependency on water: 

• Agriculture: Accounts for around 70% of global freshwater withdrawals. It uses water for irrigation, livestock and food processing. Some food types, such as; cheese, nuts and farmed Seafood, have significantly higher water requirements than others. 

• Manufacturing: The manufacturing sector is heavily reliant on water for cooling, processing, cleaning and product formulation. 

• Energy Production: Water withdrawal is particularly necessary for thermoelectric and hydropower generation for cooling and operations. 

• Construction and Real Estate: Water is used in concrete mixing, site dust control and building maintenance. 

• Retail and Services: Though indirect, these industries consume embedded water through their supply chains and logistics. 

By evaluating their company water footprint, businesses can benchmark performance and implement sector-specific reduction stratgies.

International Standards Guiding Water Usage 

Several frameworks and standards have been setup help ensure consistency and transparency in assessing water footprints: 

• ISO 14046: Provides the globally recognised methodology for conducting water footprint assessments. It ensures assessments are comprehensive, scientifically rigorous and comparable. 

• Water Footprint Network (WFN): This is a non-profit network that offers additional guidance and tools for measuring and reporting water usage, including benchmarks and sector-specific data. 

• Sustainable Development Goal 6 (SDG 6): Part of the UN's 2030 Agenda, which calls for sustainable water management and access to clean water for all. 

• EU Water Framework Directive: Established in 2000, this is the main law that protects water usage in Europe. It relates to groundwater as well as inland, transitional, coastal surface waters.

Following these frameworks enables businesses to improve reporting and align their company water footprint strategies with global sustainability goals. 

Tunley Environmental's Water Footprint Assessment Service 

Tunley Environmental offers a comprehensive service to help businesses understand and manage their company water footprint effectively. It follows a structured methodology that begins with a kick off meeting to understand the scope of the project followed by a step-by-step execution. Key features of the service include: 

Detailed Analysis: Evaluating direct and indirect water use across operations and supply chains. This will involve analysing different types of water and how it’s used in a company’s operation. 

Data Collection and Mapping: Identifying water inputs and outputs across every stage of the value chain. 

Hotspot Identification: Locating areas of intensive water use and/or pollution risk. 

Impact Evaluation: Assessing environmental impacts using ISO 14046-compliant methodologies. 

Customised Action Plans: Developing targeted reduction strategies based on sector-specific insights and business goals. 

Stakeholder Reporting: Providing transparent documentation to meet regulatory, investor, and customer expectations. 

Review: Deliver detailed reports and dashboards that support internal review and external disclosure. Tunley Environmental also offers ongoing consultancy support to monitor any changes and ensure adherence to new and updated frameworks. 

Components of a Water Footprint Analysis 

A comprehensive analysis for a company water footprint assessment considers different types of water use: 

1. Blue Water: Freshwater withdrawn from surface or groundwater sources, used in production processes. 
2. Green Water: Rainwater stored in the soil and utilised by plants, relevant in agricultural contexts. 
3. Grey Water: The volume of freshwater required to assimilate pollutants, reflecting water quality impacts. 
4. Direct Water Use: Water taken out and used for operations (e.g., manufacturing, cleaning, cooling) by your company or process/service. 
5. Indirect water use: That which other companies consume. These covers water included in outsourced operations, energy generation and supply networks. 

Understanding these components helps businesses pinpoint areas where water use can be reduced or optimised. 

Benefits of Conducting a Water Footprint Assessment 

Conducting a company water footprint assessment offers numerous benefits for organisations including: 

• Risk Mitigation: Identifying vulnerabilities in water supply and implementing measures to ensure operational continuity. 

• Cost Savings: Reducing water consumption could contribute to lower utility bills and potential tax incentives. 

• Competitive Advantage: Demonstrating environmental responsibility can differentiate a company in the marketplace. 

• Regulatory Compliance: Staying ahead of evolving environmental regulations and avoiding potential fines. It also helps organisations align with existing frameworks like ISO 14046, the EU Water Framework Directive and to prepare for ESG and CSRD compliance requirements. 

• Investor Confidence: Meeting the growing demand for sustainable practices among investors and stakeholders. 

• Improved Resilience: Enhancing the company’s ability to cope with climate-related water risks. 
• Stakeholder Engagement: Building transparency with customers, suppliers, regulators and the community.
   

The Bottom Line

Water scarcity is intensifying across the world, necessitating proactive assessment and management of a company water footprint as essential for operational resilience. Tunley Environmental's water footprint assessment service is designed to equip businesses with the tools and insights needed to navigate this complex landscape. The best time to complete this assessment is at the earliest possible stage. Embracing comprehensive water management practices aligned with ISO 14046 and international best practice will enable companies contribute to global water sustainability and meet stakeholder expectations.