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From Insight to Implementation: Building Water Resilient Operations

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Today’s business landscape increasingly demands that companies measure and disclose not only their climate risks but also the water risks associated with their operations. Water is the lifeblood of our planet, intricately woven into the fabric of our climate system. As the primary driver behind increasing flooding, rising sea levels, droughts, widespread wildfires, and shrinking ice fields, water’s role in climate change cannot be overstated. Understanding and managing our water resources through effective baselining is essential to mitigating these impacts.

Beyond the already critical threats to human and ecological health, water issues, encompassing quality and quantity, present serious threats for company-viability. For example, in 2018, global companies collectively reported a $38.5 billion in losses due to water-related issues, which included both scarcity-related issues as well as regulatory ones for compromised quality. More recently in 2022, water depletion and contamination led to $15.5 billion in stranded assets worldwide, predominantly affecting the oil and gas, electric utilities, coal, metals, and mining industries.

CDP estimated that the potential financial impact of corporate water-related risks reached approximately $594 billion in 2023. This significant financial implication has led to a 14.6% increase in the number of companies establishing water reduction targets in 2023 compared to the previous year. Numerous guidelines and standards are available to help companies understand their water footprint, identify consumption hotspots, assess risks and impacts, and effectively set water targets. The following recommendations will assist companies in taking meaningful steps toward robust water stewardship.

Understanding Water in a Corporate Context

To effectively define a strategic water management direction and establish relevant business goals, companies should be familiar with global water compliance regulations, frameworks, and key water materiality topics. Recognizing this need, Schneider Electric’s Water Fundamentals Workshop equips companies with the essential knowledge and tools. The tailored workshop allows companies to understand and fulfill their reporting requirements such as the Corporate Sustainability Reporting Directive (CSRD) or the Carbon Disclosure Project (CDP). Furthermore, it includes guidance on aligning target setting with established frameworks such as the Science Based Targets Network (SBTN), enabling companies to set ambitious yet achievable goals. Essentially, the workshop facilitates materiality assessments to pinpoint critical water-related material topics most relevant to their business and stakeholders.

Digital Water Enablement

To evaluate current water use practices, companies can conduct a water digital assessment. Schneider Electric’s Digital Water Enablement provides companies with a quantitative analysis of their current capabilities and opportunities in water management and treatment at each of their sites. This assessment identifies data quality gaps and process inefficiencies, establishing a roadmap with data-based actions to enhance the water management strategy at corporate and site levels.

Water Risk Assessment

Effective water stewardship begins with a clear understanding of the water-related risks. To truly optimize efforts in water reduction, reuse, and recycling, companies must first map their water-related vulnerabilities. Schneider Electric’s Water Risk Assessment services can assist companies in screening geographic location of their sites to identify and prioritize potential risks. Additionally, our specialized climate risk platform  known as the  Climate Risk (ECLR) Platform , developed by EcoAct, part of Schneider Electric , provides deeper insights into companies’ physical sites' exposure and vulnerability to 28 climate hazards defined by the EU Taxonomy, quantifies financial impacts on both property value and business interruption and guides the development of targeted adaptation measures through prioritized recommendations from a database of 200+ potential solutions .

Setting Measurable Water Reduction Targets

To set specific and measurable water reduction targets, companies are recommended to leverage their analysis of water-related risks and identify water-intensive operational hotspots for reduction. Schneider Electric’s Target Modelling services can help companies set both process-oriented and outcome-oriented targets in line with Science-Based Targets for Water. For example, a process-oriented target might be to "Install closed-loop water recycling systems across all manufacturing processes by 2030," whereas an outcome-oriented target could be to "Achieve a 50% increase in water recycling rates company-wide by 2050." Companies can enhance their target-setting process by referring to frameworks provided by the CEO Water Mandate, the Alliance for Water Stewardship, and the Science-Based Targets Network (SBTN).

Developing a Roadmap and Tracking Progress

After establishing water-related enterprise-level targets, companies need to develop a roadmap aimed at reducing their water impact and dependencies. Schneider Electric’s Digital Water Enablement services, including data integration into our EcoStruxure™ Resource Advisor software and digitizing targets for relevant water data streams, play a crucial role in this process. By leveraging our advanced digital tools, we empower clients to track progress against set targets, maintain transparency, and enhance efficiency, reliability, and sustainability with stakeholders.

Conducting On-Site Water Assessments

To validate process-specific data and deep dive into the opportunities available at site-level, companies should select top-priority sites for on-site water audits. Schneider Electric’s On-site Water Assessment services can help in this regard by identifying Water Conservation Measures (WCMs), analyzing cost of applicable water-saving opportunities, such as wastewater recycling, water reuse, water technologies upgrade, rainwater harvesting, or leak detection, and additionally proposing business cases and a roadmap for implementation. These on-site assessments are crucial for developing a detailed understanding of water usage and identifying practical measures for water conservation and efficiency improvements. For example, this could help a textile company track the water utilized for dyeing fabric, washing textiles during production, or generating steam in boilers, and identifying which practical direction to head towards.

Implementation Roadmap

To ensure sustained impact for their water conservation efforts, companies also need a structured action plan. Schneider Electric’s Investment Grade Audit delivers a detailed implementation plan for selected WCMs at specific sites, including project designs, precise cost and savings calculations, a clear scope of work definition, and the development of a comprehensive monitoring plan. Following the audit, Schneider Electric’s Delivery of Water Conservation service ensures successful project execution through expert project management, the orchestrated implementation of selected WCMs, and a verification process to quantify water savings. This would allow companies to achieve their water efficiency goals, driving both environmental sustainability and operational cost reductions.

Schneider Electric's Support

At Schneider Electric, we aim to support companies in managing their water resources efficiently through digital water enablement, strategic water planning, and water stewardship programs. Our solutions include the interoperable EcoStruxure™ software suite, which tracks water usage and provides a dashboard that consolidates water datapoints. Furthermore, we offer on-site workshops, water audits, and assistance in identifying water reduction opportunities within our clients’ operations. We recognize the importance of integrating water footprint data into a company's sustainability commitments and practices. Whether your company is just beginning its sustainability journey or looking to enhance existing solutions, our team is here to provide support throughout the process.

Visit Schneider Electric’s Water Solutions page and/or Schedule an Appointment to speak with our Schneider Electric experts to discover the tools, strategies, and approaches to maximize the benefits from your operational data.

 

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