(Authored by Gurmit Singh Arora, National President of Indian Plumbing Association)
Increasing population and climate change are two of the many challenges the world faces today, which in turn also brings into focus the critical aspect of sustainable water management. As it is known water is essential, it supports and nourishes everything from agriculture and industry to the health and welfare of the people. Nonetheless, this invaluable resource is facing great challenges as supply shrinks, quality declines, and distribution is unequal and creates strain on communities all over the world.
In the midst of this crisis, the Environmental, Social, and Governance (ESG) principles have been helpful to undertake change and offer pathways to a better future. ESG measures appear to have an all-encompassing dimension in corporate and institutional decisions, where the protection of the environment, the society and ethical governance are of uppermost importance.
One of the key goals of the ESG framework is to maintain the integrity of water resources. The consequences of water stress, pollution, and poor management extend beyond health and ecosystems; they also extend to the economy and social order. As businesses, governments, and even individuals work through these issues, the need for sustainable water practices has emerged as a key element of the ESG framework.
Currently, 2 billion people all over the world lack safe and dependable water for drinking and more than four billion people suffer from severe water shortage for at least one month in every year. Causative to this crisis is the climate change issue whereby alteration in precipitation, availability and quality of water sources as well as the increase in the number and intensity of droughts worsen the situation further.
Water crisis does not only affect the availability of drinking water. Agricultural activity that uses about 70% of the world’s freshwater supply is also under severe threat mainly due to prolonged droughts, waterlogging, salinization of soil and the loss of soil quality and health. Water associated with industry, from the production of goods to the generation of power, comes under even more restrictions in the use of water and the reduction of water footprint and environmental impact.
The ESG framework encourages the complete system to look at the water crisis in a holistic manner, by providing a set of principles and best practices that can be utilized by organizations and individuals. At the environmental level, ESG calls for the effective conservation and utilization of water through the adoption of a set of responsible management practices that include the use of water saving technologies and processes to lower consumption, the provision of water quality improvement and recycling through investments in water treatment, nature based technologies that augment the conventional water cycle, and transparency and improvement of water use, contamination and ecological impacts through reporting and audits.
The importance of governance in facilitating the achievement of effective and sustainable water practices cannot be overemphasized. The ESG calls for transparent and effective decision-making processes as well as strong policies and participation of all relevant stakeholders. These include formulating and implementing clear objectives and targets regarding water management relating to the organization or government levels, meeting the legal and industry’s standards regarding water management, promoting the participation of different actors and sectors to deal with the multifaceted nature of the water’s problems, and the consideration of water-related risks and opportunities within the enterprise risk and financial reporting framework.
Water sustainability, if added to the ESG framework is a worthwhile endeavor that not only protects the environment and societies but also makes business sense. Water-inclusive organizations have various advantages, including greater efficiency that lowers costs and waste, reducing vulnerability to water-related risks (supply, legal, and reputational), strengthening brand and customer loyalty with eco-friendly and ethically responsible practices, and increasing access to capital and investment as more investors are interested in ESG-based initiatives.
The global water crisis is a problem that cannot be solved in isolation by one stakeholder; governments, businesses, civil society, and people as individual citizens have to work together. As we combine efforts across the ESG framework and its principles for sustainable water management, the vision of the responsible, equitable, and ecosystem-friendly management of water resources will be in sight. Technologies, policy change, engaging stakeholders in public-private initiatives, and most importantly, changing people’s and organization’s behavior will be required as well. It will take courageous leaders who are ready to collaborate across sectors and dedicate themselves to building a better, more sustainable and resilient world for future generations. The ESG case for sustainable water management practices gives us the direction we need to ensure that as we combat the various challenges of the 21st century, our water resources will be well distributed, maintained and regarded for what they are: an invaluable resource.
