Businesses complacent on water risk mitigation

April 4, 2014 | By Barbara Vergetis Lundin

U.S. utilities have even more reason to be concerned about the country's water supply. A new survey of major U.S. corporations reveals that most companies believe water challenges will significantly worsen in the next five years, but the majority of companies are doing nothing about it.

Credit: Pacific Institute

Most of the companies surveyed do not have plans to expand their water risk mitigation measures, according to the study by the Pacific Institute and VOX Global, with nearly 70 percent satisfied, but complacent, with their current level of investment in water management.

"Water challenges are not just for developing countries, they are happening here in the United States," said Jason Morrison, program pirector of the Pacific Institute. "While the current California drought gets considerable attention, many regions face a chronic imbalance between water supply and demand."

Insufficient or contaminated water supply, or a lack of infrastructure to reliably deliver that supply, can mean companies may not be able to maintain the volume and quality of their production.

"As more and more corporate boards discuss the impact of social and environmental issues on their profitability and growth, topics such as water risk will emerge as central to company strategy," said Tony Calandro, senior partner and leader of the VOX Corporate Sustainability and Social Responsibility Practice Group. "This new economic reality necessitates that companies better understand the many ways that water affects their reputation and bottom line and the multitude of communication and management strategies they may need to adequately address these business challenges."

Water utilities should be part of helping businesses raise their awareness of the water challenges that can affect organizations.

"Business leaders we surveyed pointed to two significant internal obstacles that hinder companywide buy-in to water: lack of time to raise awareness, and buy-in and other risks ranking as a higher, more immediate priority," Calandro said.

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