Water Resources & Stewardship

Water scarcity affects over 2 billion people globally and is intensifying due to climate change, population growth, and unsustainable consumption patterns. Corporate water stewardship has become a critical component of ESG strategy, particularly for water-intensive industries such as agriculture, manufacturing, energy, and mining.

Why Water Matters for ESG

Water is fundamental to business operations, supply chains, and community well-being. Companies face multiple water-related risks including physical scarcity, regulatory restrictions, reputational damage, and supply chain disruptions. The CEO Water Mandate, a UN Global Compact initiative, provides a framework for corporate water stewardship encompassing direct operations, supply chains, collective action, public policy, community engagement, and transparency.

Water risk is not uniformly distributed. The World Resources Institute's Aqueduct Water Risk Atlas identifies regions facing extremely high baseline water stress, where more than 80% of available water is withdrawn annually. Companies operating in these regions face heightened operational and reputational risks.

GRI 303: Water and Effluents 2018

The GRI 303: Water and Effluents 2018 standard provides comprehensive guidance for water-related disclosures. The standard requires organizations to report on:

303-1: Interactions with water as a shared resource
Organizations must describe how they interact with water, including where water is withdrawn and discharged, and how water-related impacts are identified and addressed. This includes understanding water stress in locations of operation using tools like WRI Aqueduct.

303-2: Management of water discharge-related impacts
Disclosure of minimum standards for quality of effluent discharge, approach to avoiding pollution at source, and how water discharge-related impacts are addressed.

303-3: Water withdrawal
Total water withdrawal by source (surface water, groundwater, seawater, produced water, third-party water) in megaliters, with breakdown by areas of water stress.

303-4: Water discharge
Total water discharge by destination (surface water, groundwater, seawater, third-party water) and by quality, including total suspended solids, biochemical oxygen demand, and other relevant parameters.

303-5: Water consumption
Total water consumption (withdrawal minus discharge) in megaliters, with breakdown by areas of water stress. This metric reveals the net impact on local water availability.

Key Metrics & KPIs for Companies

Water Withdrawal & Consumption Metrics

• Total water withdrawal (megaliters): By source (surface, ground, sea, third-party)
• Water withdrawal in water-stressed areas (megaliters or %): Using WRI Aqueduct or similar tools
• Total water consumption (megaliters): Withdrawal minus discharge
• Water intensity (m³ per unit): Per revenue, per product unit, or per employee
• Year-over-year change (%): Progress toward reduction targets

Water Quality Metrics

• Effluent discharge volume (megaliters): By destination and quality parameters
• Water pollutants discharged (tonnes): BOD, COD, TSS, heavy metals, nutrients
• Compliance incidents: Number of regulatory violations related to water discharge
• Wastewater treatment rate (%): Percentage of wastewater treated before discharge

Water Risk & Governance Metrics

• Facilities in water-stressed areas (number or %): Using standardized risk assessment tools
• Water-related capital expenditure: Investments in water efficiency and treatment technologies
• Water recycling and reuse rate (%): Percentage of water recycled or reused in operations
• Supply chain water risk assessment: Percentage of suppliers assessed for water risks

Financial Metrics

• Water-related costs: Total costs for water withdrawal, treatment, and discharge fees
• Water-related incidents: Financial impact of water-related disruptions or penalties
• Water-related revenue: Revenue from water-efficient products or services

Water Stewardship Frameworks

CEO Water Mandate

The CEO Water Mandate provides a comprehensive framework across six commitment areas:

1. Direct Operations: Measure and reduce water use and discharge impacts
2. Supply Chain & Watershed Management: Engage suppliers and support watershed health
3. Collective Action: Partner with governments, NGOs, and other stakeholders
4. Public Policy: Advocate for effective water policies and regulations
5. Community Engagement: Support access to safe water and sanitation
6. Transparency: Publicly disclose water strategies and performance

Alliance for Water Stewardship (AWS) Standard

The AWS Standard provides a globally-applicable framework for major water users to understand their water use and impacts, and to work collaboratively and transparently for sustainable water management.

Water Risk Assessment Tools

WRI Aqueduct

The World Resources Institute's Aqueduct tool maps water risks globally across 13 indicators including baseline water stress, interannual variability, seasonal variability, groundwater stress, return flow ratio, upstream storage, and drought severity. Companies can use Aqueduct to:

• Identify facilities in water-stressed locations
• Assess supply chain water risks
• Prioritize water stewardship investments
• Report water-related risks to investors

WWF Water Risk Filter

The WWF Water Risk Filter assesses basin-level physical, regulatory, and reputational water risks. It provides facility-level risk assessments and helps companies develop water stewardship strategies.

Regional Water Regulations

Hong Kong & China

• Hong Kong Water Pollution Control Ordinance: Regulates effluent discharge standards
• China's Water Law (2016 Amendment): Establishes water resource management and protection requirements
• Three Red Lines Policy: Sets caps on water use, water use efficiency, and water pollution

European Union

• Water Framework Directive (2000/60/EC): Establishes framework for water protection across EU
• Urban Wastewater Treatment Directive: Sets minimum standards for collection and treatment
• Drinking Water Directive: Ensures quality of water intended for human consumption

APF Book Resources

Water Accounting in Practice — Comprehensive guide to water footprint assessment
Download PDF: Water_Accounting_in_Practice.pdf

Key chapters:

• Water footprint methodology (blue, green, grey water)
• Water risk assessment frameworks
• Case studies across industries
• Integration with GRI 303 reporting

This book provides step-by-step guidance on calculating water footprints, assessing water risks, and implementing water stewardship strategies aligned with international standards.

Related Pages

• Environmental Hub
• Freshwater Use — Planetary boundary perspective
• Ocean Acidification — Water quality impacts
• GRI Standards — GRI 303 detailed guidance
• SDG 6: Clean Water and Sanitation