Water scarcity risks and how companies handle them

Water is increasingly becoming the new - blue - gold.

Water has always been scarce in many parts of the world. It is well-known that every sixth person in the world lacks access to clean drinking water. charity: water organized a photo exhibition at Chelsea Market in New York and proposes to give 100 schools in developing nations safe drinking water in 2009.

Water is high on the international agenda and the 5th Annual World Water Forum Bridging Devides for Water taking place this week in Istanbul is only proof to that. Water scarcity is seen as the next threat, bigger even than the financial crisis.

Water scarcity poses serious risks to businesses, too. Businesses are mostly unaware of the magnitude of these risks, and generally unprepared to tackle them, according to a recent report by Ceres and Pacific Institute.

This research sheds important light on the critical link between climate change and water issues. For businesses, addressing the risk factors of water scarcity and conflict is as urgent as addressing energy security and greenhouse gas emissions, said Jason Morrison, program director at the Pacific Institute and the report’s lead author.

Nevertheless, several companies are already doing their bit and seeing both environmental and business benefits, according to Sarah Fister Gale's article. For example, Frito Lay's is developing systems that will enable it to recycle up to 90% of the water it uses. Avon excels at tracking its water usage across its global operations and has reduced its water consumption by over 10% through efficiency measures and innovative technology applications such as rainwater harvesting and waterless vacuum pumps. General Electric is another leader in efficient water management and set out to reduce its water consumption by 20% by 2012. Whether or not the company will achieve this goal depends heavily on how fast and well its employees will understand that "every leaky faucet or hose that gets shut off results in appreciable reductions." Photo credit: Snap