Reputation is everything ...

What is water stewardship?

Water stewardship embodies the ethos of caring for and managing water resources in a sustainable and equitable manner. It entails recognizing the intrinsic value of water, understanding its interconnectedness with ecosystems and communities, and taking proactive measures to protect and enhance water quality, availability, and access. Water stewardship goes beyond mere conservation; it encompasses a commitment to responsible water use, collaboration with stakeholders, and continuous improvement in water management practices.

An important dimension of this ethos is corporate water stewardship which refers to the proactive and holistic management of water resources by businesses to minimize water-related risks, enhance resilience, and maximize positive impacts on water ecosystems and communities. It encompasses a range of activities, including assessing water risks, improving water efficiency, engaging stakeholders, and contributing to collective water management efforts.

Why is it important?

Corporate water stewardship is essential for businesses for several reasons:

1. 1. Risk Mitigation: Water risks, including physical, regulatory, and reputational risks, can have profound implications for business continuity and financial performance. By proactively identifying and addressing water risks, companies can reduce operational disruptions, regulatory penalties, and reputational damage, safeguarding long-term value and resilience.
2. 2. Resource Efficiency: Improving water efficiency and reducing water consumption not only lowers operational costs but also enhances resource efficiency and productivity. Through innovations in water-saving technologies, process optimization, and water recycling, companies can minimize their water footprint and improve resource utilization, driving cost savings and competitiveness.
3. 3. Reputation and Brand Value: Corporate water stewardship is increasingly becoming a reputational imperative, as consumers, investors, and stakeholders demand greater transparency and accountability in water management practices. Companies that demonstrate leadership in water stewardship can enhance their brand value, attract investors, and strengthen stakeholder trust and loyalty.
4. 4. License to Operate: Water stewardship is integral to maintaining a social license to operate in communities and regions where water scarcity, pollution, or inequitable access are prevalent. By engaging with local communities, respecting water rights, and contributing to water security initiatives, companies can build trust, foster positive relationships, and secure their license to operate.

Why is it so hard?

Despite its importance, corporate water stewardship presents several challenges for businesses:

1. 1. Complexity of Water Risks: Understanding and managing water risks requires comprehensive assessment and analysis of diverse factors, including hydrological conditions, regulatory frameworks, and stakeholder dynamics. Navigating these complexities can be daunting, particularly for multinational companies operating in diverse geographic regions with varying water challenges.
2. 2. Supply Chain Complexity: For many companies, the majority of water-related impacts occur in their supply chains rather than in their direct operations. Managing water risks across complex and globalized supply chains requires collaboration, transparency, and influence over upstream suppliers, posing logistical and governance challenges.
3. 3. Data and Information Gaps: Limited access to accurate and reliable water data, particularly in water-stressed regions or developing countries, hampers companies' ability to assess and mitigate water risks effectively. Overcoming data gaps and improving water information systems require investments in monitoring, data collection, and knowledge-sharing mechanisms.
4. 4. Behavioural Change: Implementing corporate water stewardship initiatives often requires changes in organizational culture, practices, and decision-making processes. Overcoming resistance to change, fostering internal buy-in, and incentivizing sustainable behaviours among employees and stakeholders are critical challenges for businesses.

How does Water Ledger help?

Water Ledger offers a suite of solutions to support corporate water stewardship efforts:

1. 1. Data Transparency: Water Ledger provides a transparent and secure platform for sharing water data, insights, and best practices. By ledgering data, companies are not just recording transactions; they're also ledgering their commitment to transparency and accountability in water management, enhancing their reputation as responsible stewards of water resources.
2. 2. Supply Chain Visibility: Water Ledger enhances supply chain transparency and accountability by mapping water actions across the value chain. By tracking and monitoring water-related metrics claims regarding water savings can be directly linked back to actual water rights and availability, creating a verifiable and transparent record of corporate actions.
3. 3. Stakeholder Engagement: Water Ledger enables companies to engage with local communities, governments, NGOs, and other stakeholders to address shared water challenges and promote inclusive and sustainable water management practices. Additionally, the potential for the ledger to generate verifiable credentials relating to water stewardship claims further strengthens corporate credibility and trust, instilling confidence in reported water stewardship efforts.
4. 4. Performance-Based Incentives: Water Ledger enables companies to implement performance-based incentives and rewards for water stewardship initiatives. Leveraging smart contracts and ledger technology, companies can track and verify water-saving actions such as efficiency improvements, pollution reductions, and community investments.

Get in touch to find out more about how you can benefit from Water Ledger’s water stewardship solution