|
|
 |
|
| World Marketplace |
Illiquid Assets
Peter H. Gleick and Jason Morrison
09/01/2005
|
Engage the supply chain. Many companies’ most
significant water impacts and risks may be embedded in their supply chain. To
address this, companies should assess and evaluate water use in their supply
chain and work collaboratively with suppliers to reduce water use and minimize
risks of supply chain disruptions from water-related problems.
Implement
the best technologies available. Companies should assess the best-available
technologies for reducing water use and wastewater discharges, commit to using
such technology in new facilities and retrofit existing facilities in areas of
significant water stress. There is a dizzying array of technology that can
reduce water use and improve water quality, including reclaiming and reusing
process water, sophisticated filtration systems and replacing water cooling
towers with air cooling ones. Such technology investments often have very short
payback periods and generate high returns on investment. This is likely to be
increasingly true as water scarcity becomes more severe.
Set goals and
targets; measure and report performance. Companies should measure and publicly
report key metrics on their water use and impacts and track how their
performance changes over time. This information can help build confidence among
investors and inform customers, local communities and other key stakeholders
interested in how the company is managing its water risks.
Form strategic
partnerships. Many water-related issues can best be addressed on a regional
scale involving multiple sectors and stakeholders. Some companies are working
through organizations like the World Council on Sustainable Development to
promote watershed protection and improve access to water for impoverished
communities. Another example is the regional environmental management system
being developed by Sustainable Silicon Valley in California. This initiative has
identified freshwater as one of the main socioeconomic and environmental
challenges facing the region. In an effort to address this issue, companies in
Silicon Valley are working with other stakeholders on regional water
sustainability policies and practices.
Commit to continuous improvement.
Despite increased efforts by companies and other sectors of society, water
scarcity and water-related business risks are likely to grow in the future. A
commitment to continuous improvement in assessing and managing these risks and
lessening the impacts of a company’s water use on local communities and the
environment can help protect operations (and long-term shareholder value) from
unexpected water-related disruptions. Peter H. Gleick is president and cofounder of the Pacific Institute in
Oakland, Calif. Jason Morrison is director of Pacific Institute’s Economic
Globalization and the Environment program.
|
|
|
|
|
|
|
