BUSINESS ASSURANCE

VIEWPOINT REPORT

Is water the next carbon?
WINTER 2015

SAFER, SMARTER, GREENER

VIEWPOINT REPORTWINTER 2015

Disclaimer
This document has been produced without formal United Nations editing. The designations
employed and the presentation of the material in this document do not imply the expression of
any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area orof its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic
system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment
about the stage reached by a particular country or area in the development process. Mentionof firm names or commercial products does not constitute an endorsement by UNIDO.
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VIEWPOINT REPORTWINTER 2015

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VIEWPOINT REPORTWINTER 2015

TABLE OF CONTENTS
Foreword (6) 						Introduction (6)Methodology and Survey Sample (8)Notes to the reader (9)Current scenario (10)■■ The importance of water supply and water management■■ Water management■■ Key initiatives undertaken■■ Main reasons for undertaking water management initiatives■■ Main benefits■■ Main obstacles

Future outlook (21)■■ Performance expectations■■ Future drivers and initiatives

Profiling the leaders (26)■■ Leaders’ features

Our final thoughts (27)4

VIEWPOINT REPORTWINTER 2015

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VIEWPOINT REPORTWINTER 2015

FOREWORD
All the food that we eat depends on water, from grain to beef. More than 70 per cent of the
Earth is covered by water. 2.5 per cent of this is fresh water; the water we need to sustain life.
During the 20th century the demand for water increased sixfold, while the world’s population
doubled. The 2015 Global Risks report1 identifies the water crisis as one of the top risks we arelikely to be facing soon. The highest in terms of impact.
It is evident that water scarcity is a global issue for which we are responsible, as individuals andas professionals too. This is not just a personal or societal question. Freshwater is a limited resource that businesses depend on and they are beginning to realize this. In addition to setting
a good example and blazing a path for sustainable water management, proactive players will
gain a competitive edge, as recently highlighted also by The Global Opportunity Report 2015.2
Better water management is not only necessary, it also represents a business opportunity.
‘Water and Sustainable Development’ will also be the theme of this year’s edition of World
Water Day, on March 22nd.

INTRODUCTION
The global certification leader DNV GL - Business Assurance, in cooperation with with theUnited Nations Industrial Development Organization (UNIDO) and supported by the international research institute GFK Eurisko, has investigated the water management approach adopted by companies in different sectors in Europe, North America, South America and Asia.
The survey was conducted in December 2014 and investigated the importance of water issues
and the way companies deal with them, the main drivers and the main obstacles to sustainable
water management, together with the initiatives implemented by
DNV GL - Business Assurance customers.
Water supply is unquestionably a key topic: not only at a personal and societal level but froma business perspective too, most of all in terms of efficiency of consumption. Nevertheless,despite widespread concern, there is still a lot to do before we can turn concern into concretecommitment and responsible actions.
However, things are moving. The survey of 1,907 professionals from the primary, secondary
and tertiary sectors3 highlights that most companies consider water issues relevant for theirbusiness strategies. Many of them are also adopting ad hoc policies for this purpose and they1

Global Risks 2015, 10th Edition, is published by the World Economic Forum within the framework of The Global Competitivenessand Benchmarking Network.
2

The Global Opportunity Report 2015 is realized by the Scandinavian think tank Monday Morning Global Institute, the Norwegiancertification group DNV GL and UN Global Compact.
3

Primary: i.e. agriculture; secondary: i.e. manufacturing; tertiary: i.e. service, transportation.

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VIEWPOINT REPORTWINTER 2015

probably would be driven to do even more if external pressure from customers or other stakeholders were as strong as it is for aspects like pollution or safety, etc.
In this context, a group of companies (hereinafter “leaders”) is a step ahead and already manages water issues with a forward-looking approach.4

4

Leaders’ characteristics are reported in the text boxes throughout the report and summarized in the final section “Profiling theleaders”.

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VIEWPOINT REPORTWINTER 2015

METHODOLOGY AND SURVEY SAMPLE■■ The survey was conducted in December 2014. It involved 1,907 professionals who workat companies in the primary, secondary and tertiary sectors across different industries in
Europe, North America, Central & South America and Asia.
■■ The sample consists of DNV GL’s customers and is not statistically representative ofworldwide companies.

North
America8%Europe42%

CentralSouth America
8%

Asia
39%

Others3%

Figure 1: Companies in the sample. Geographies■■ 51% of companies use water in their production process, 49% just for civil use.
■■ The sample includes 108 companies defined as “leaders”.

- The classification of a company in the leaders category is based on a self-assessment of
maturity regarding water management.
■■ The questionnaire was administered using the CAWI (Computer Assisted Web Interviewing)

methodology.

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VIEWPOINT REPORTWINTER 2015

Company size

IndustryPrimary

4,3%Secondary
7,1%

Chemicals

4,8%

Plastic

4,3%

Metals
Machinery
Electrical

11,4%

20,1%
14,6%

100 to 249

19,6%

250 to 999

20,7%1000 and more

25,1%

4,6%

Other

21,1%
33,2%

Water usage

3,8%

Construction

5,7%

Wholesale and retail trade

3,9%Transport

7,8%

Health

3,7%

Other

50 to 99

9,2%

Tertiary
Electricity, gas & water supply

up to 49

62,5%

Food

Productive usage

50,7%

Civil usage

49,3%

8,4%

Figure 2: Companies in the sample. Industries and sizes (n° of employees)

NOTES TO THE READER■■ In the graphs herein contained, orange circles highlight significantly below average data.

Blue circles highlight significantly above average data.
■■ Graphics in figures from 1 to 9 and in figures 15 and 18 refer to single answer questions, withanswers adding up to 100%. All other graphs refer to questions with multiple answers.
■■ All the graphs below report the scores obtained by the total of respondents, by respondents

in different regions, by companies using water for productive reasons and by leaders (withexception of figures 17 and 19).
■■ For the reader’s convenience, the word “average” has been used throughout the text toindicate the scores obtained by all respondents.

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VIEWPOINT REPORTWINTER 2015

CURRENT SCENARIO
The importance of water supply and water management
From a personal and societal perspective
Water is a concern. 73% of people interviewed see water supply as an issue that impacts “their
daily life”. Perception is often worse when considering problems at a societal level; in effect,
83% think that water supply is a key matter “for their country”.
Central and South Americans are those most worried: 88% see water supply as an issue affecting their daily life and even more, 94%, for their country, likely because - despite the abundance of hydric resources in the region - access to water and its good quality are not taken for
granted.
Asians come immediately after, with percentages lower than those recorded by Latin Americans but still above average. Europeans record below average rates.
When thinking of the world as a whole, the alarm is unanimous. 95% agree that water supply isa global issue, with rates higher than 90% in all world regions (Figure 5).

To what extent do you see water supply as an issue in your daily life?

Q1. To what extent do you see
water supply as an issue inyour daily life?

TOTAL
N= 1.907

N=

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

63,8%

78,2%

75,2%

88,1%

74,0%

77,8%

% Top 2 Boxes

Great extent+ Some extent

73,0%

Figure 3: Water supply as an issue in daily life

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VIEWPOINT REPORTWINTER 2015

To what extent do you perceive water supply as an issue to your Country?

Q2. To what extent do you
perceive water supply as an
issue to your Country?

TOTAL
N= 1.907

N=

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

72,1%

90,5%

89,2%

94,0%

85,4%

87,0%

% Top 2 Boxes
Great extent+ Some extent

83,1%

Figure 4: Water supply as an issue for one’s country

To what extent do you perceive water supply as an issue to the global society?

Q3. To what extent do you perceive
water supply as an issue to the global
society?

TOTAL
N= 1.907

N=

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

96,3%

93,2%

96,2%

98,7%

96,2%

100,0%% Top 2 Boxes

Great extent+ Some extent

95,3%

Figure 5: Water supply as a global issue

From a business perspective
Although with less impressive percentages than when considering the problem from a personal or societal point of view, water management issues seem to be a concern from a businessperspective too. 70% of companies consider water management issues to be relevant for theirbusiness strategies (percentages reach 85% among firms using water in their production processes).
There are differences at the geographical level. Central and South Americans confirm theirfocus on the topic (89%), while for Europeans it is less of a problem (65%).

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VIEWPOINT REPORTWINTER 2015

As for industry, the primary sector stands out with proportions above average (85%), while inthe secondary sector food & beverage (92%) and chemical (87%) companies report the highest
percentages.
93% of LEADERS consider water management issues to be relevant for their businessstrategies.

To what extent are water management issues relevant to your company overall business strategy?

Q4. To what extent are water management
issues relevant to your company overallbusiness strategy?

TOTAL
1.907

N=

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

65,0%

70,1%

77,1%

89,4%

84,5%

92,6%

% Top 2 Boxes
Great extent+ Some extent

70,2%

Figure 6: Relevance of water issues for business strategies

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VIEWPOINT REPORTWINTER 2015

Water management
Awareness of legislation and maturity
73% of companies are aware of the legislation on water in their countries; Central and SouthAmericans once again stand out (84%; +11% vs average).
Companies using water for production processes obviously know more about legislation (+6%vs average) than companies using water for civil uses only. Nevertheless, despite widespread
concern at a general level, 1 in 5 companies using water for production purposes is not awareof the applicable legislation.

To what extent are you aware of the legislation on water in your Country?

TOTAL
N= 1.907

N=

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

74,7%

67,8%

72,6%

84,1%

78,9%

85,2%

% Top 2 Boxes

Great extent+ Some extent

73,0%

Figure 7: Awareness of legislation on water

Professionals interviewed feel that there is still a lot to do before we can turn concern into
concrete commitment and responsible actions. So much so that, on a scale from 1 to 5 (from“beginner” level to “leader” level) that measures maturity in managing water, only 1 in 4 rated
their companies as advanced (level 4 and 5).
The Food & beverage segment stands out with 49% of businesses rating themselves in categories 4 and 5.
LEADERS (level 5) are a minority. Only 6% of firms feel that they manage water in a mature
way.

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VIEWPOINT REPORTWINTER 2015

Where would you position your company on a 5 point maturity scale for water management,
where 1 is Beginner and 5 is Leader?

TOTAL
N= 1.907

Beginner

25,7%

17,3%

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

941

22,3%

32,3%

23,6%

14,6%

16,4%

0,0%

15,5%

19,2%

18,5%

15,2%

15,7%

0,0%

33,1%

29,7%

30,6%

37,1%

35,1%

0,0%

23,1%

13,6%

21,7%

27,2%

25,4%

0,0%

5,8%

5,0%

5,1%

6,0%

7,3%

100,0%

31,6%

19,6%

Leader5,7%

Figure 8: Maturity scale for water management

Strategies, policies and goals
However, things are moving and 34% of companies already have a water management strategy or policy; this percentage grows to 47% for businesses that use water in their production
process. 36% have specific goals for water consumption, as do 1 in 2 businesses using water
for industrial purposes.
Once again, companies in Central and South America are a step ahead: 42% adopt water management strategies or policies and 48% have specific goals regarding water use.
LEADERS have a structured approach: they adopt policies (83%) and set specific goals(78%).

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VIEWPOINT REPORTWINTER 2015

Does your company have a water management strategy/policy?

oes your company have a water
gement strategy/policy?

% Yes

TOTAL
N= 1.907

34,2%

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

32,5%

34,5%

33,1%

42,4%

47,3%

83,3%

Figure 9: Adoption of strategies/policies for water management

Does your company have goals on water management?

TOTAL
N= 1.907

% Yes

36,4%

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

34,6%

36,5%

36,3%

47,7%

50,8%

77,8%

Figure 10: Goals on water management

Water management as a matter of efficiency
For world companies, water management is currently mainly a matter of efficiency and of focus
on aspects with financial implications. Among companies’ concerns, reduction of consumption(54%) and waste management (46%) top the list. Conservation (37%) and security (28%), thatis to say the availability of an acceptable quantity and quality of water, follow. Shortage management (11%) is at the lowest position in the classification, with Europe scoring the lowest
percentage (6%).

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In addition to efficiency related concerns, that are much more intense than average,
LEADERS care particularly for security and shortage management too.

Where is your company concern around water management?

TOTAL
N= 1.907

Reduction of
consumption/improvement ofefficiency

53,7%

45,5%

Waste management

Conservation (to protect the water
environment)
Security (availability of an
acceptable quantity and quality ofwater for health, livelihoods andproduction)
Shortage management

Other/None/DK

37,1%

27,9%

10,5%

19,2%

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

52,6%

55,7%

44,6%

63,6%

65,8%

69,4%

42,4%

51,8%

38,9%

41,1%

59,4%

55,6%

39,2%

35,8%

38,9%

31,1%

43,6%

55,6%

25,4%

30,5%

22,3%

32,5%

32,6%

51,9%

6,0%

13,4%

12,7%

15,9%

13,0%

24,1%

22,6%

15,4%

24,8%

10,6%

9,7%

12,0%

Figure 11: Companies’ concern about water management

Key initiatives undertaken
44% of firms - and 61% of those using water for production - undertook water management
initiatives in the last 5 years.
The actions were mainly limited to measurement. The top three initiatives are efficiency related: tracking water usage (27%), setting specific goals on water issues (22%) and investing inwater efficient devices (21%). The involvement of top management is still limited, and 18% only
report issues to corporate leaders. Companies are not building competences - only 13% areproviding training to the staff and only 14% have defined a dedicated function responsible for16

VIEWPOINT REPORTWINTER 2015

water management - nor they are adopting a proactive attitude; actually only 16% performed
assessments on water management to check congruence with prefixed criterions. Only 8%
disclose water management questions to stakeholders; just companies from the primary sector(13%), food & beverage (16%), and the chemical industry (16%) stand out with rates above
average for this activity.
The overall approach adopted by businesses using water in their production process is similar,
just with higher frequency. The same applies to Central and South Americans; they turn out tobe the most active, with rates above average for almost all initiatives considered.
82% of LEADERS implemented water related initiatives. They record higher rates for all
actions: for efficiency related initiatives but also for the ones that are more sophisticated.
Differently from what happens at a general level, they are particularly focussing on
assessment activities (49%), establishment of dedicated functions responsible for water
management (46%) and staff training (44%). They disclose water management issues tostakeholders three times more than the average.

Has your company undertaken water management initiatives in the last 5 years?
Which of the following initiatives regarding water management has your company taken?

TOTAL
N= 1.907

43,9%They have undertaken initiatives

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

43,1%

43,2%

43,3%

53,6%

60,6%

81,5%

Actively tracking water usage

27,4%

27,2%

27,7%

27,4%

27,2%

41,1%

57,4%

Having specific goals on water
issues

21,8%

20,2%

21,4%

25,5%

27,8%

32,7%

58,3%

Investing in water efficient devices
and equipment

20,6%

21,1%

17,0%

25,5%

32,5%

31,2%

48,1%

Reporting water management
issues to top management

18,0%

15,9%

17,2%

25,5%

23,8%

27,0%

53,7%

Replacing worn out equipmentwith water efficient equipment

16,5%

15,8%

13,8%

22,9%

26,5%

23,4%

46,3%

Performing audit/assessment onwater management

15,7%

14,0%

15,9%

19,7%

17,9%

24,5%

49,1%

Having a dedicated function
responsible for water management

13,8%

10,0%

17,8%

12,1%

15,2%

21,0%

46,3%

Providing water management
training to staff

12,7%

11,5%

13,1%

10,2%

19,9%

18,7%

44,4%

Disclosing water management
issues to stakeholders

7,8%

6,9%

7,0%

12,7%

8,6%

12,8%

33,3%

Other

4,7%

4,5%

4,1%

3,2%

8,6%

6,8%

5,6%

Figure 12: Water management initiatives undertaken by world companies

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VIEWPOINT REPORTWINTER 2015

Main reasons for undertaking water management initiatives
Compliance with laws and regulations (29%) and economic reasons (24%) are the main drivers
for companies to undertake water related initiatives. Water management initiatives do not seemto be particularly motivated by the possibility of gaining a competitive advantage and improving brand reputation (14%), nor by pressure from customers (4%) and other stakeholders (8%).
Stakeholders do not push for sustainable use of water; only 10% feel the need to disclose
hydric performance. Water management once again turns out to be bound to regularity andefficiency of the company’s performance.
Compliance with laws and regulations (65%), internal policies (54%) and economic reasons(48%) play priority roles for LEADERS too. However, they are motivated by the intention ofsafeguarding company assets in a proportion well above average (34%). Moreover, requests
from customers are weighed four times the average.

Has your company undertaken water management initiatives in the last 5 years?
What are the reasons that led your company to undertake water management actions?

TOTAL
N= 1.907

43,9%They have undertaken initiatives

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

43,1%

43,2%

43,3%

53,6%

60,6%

81,5%

Compliance with laws andregulations

29,0%

27,8%

29,7%

24,8%

35,8%

43,3%

64,8%

Economic

24,4%

25,1%

22,4%

26,8%

27,2%

35,3%

48,1%

Internal policy

22,4%

22,7%

19,2%

22,3%

35,8%

30,5%

53,7%

Competitive advantage/brandreputation

13,6%

14,9%

11,6%

14,0%

16,6%

21,6%

37,0%

Safeguarding the company assets

10,3%

8,7%

10,8%

11,5%

14,6%

16,6%

34,3%

Needs to disclose water
performance

10,1%

10,9%

9,1%

9,6%

9,9%

15,8%

29,6%

Stakeholders' concern/pressure

7,7%

6,7%

8,2%

8,3%

7,3%

11,4%

21,3%

Needs/requests from customers

4,0%

3,8%

3,5%

2,5%

8,6%

5,6%

15,7%

Requests from private/public
insurance companies

1,5%

1,6%

1,1%

2,5%

2,0%

2,5%

4,6%

Other/DK

4,3%

4,7%

3,6%

2,5%

6,0%

5,4%

4,6%

Figure 13: Reasons driving companies to undertake water management initiatives

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VIEWPOINT REPORTWINTER 2015

Main benefits
Coherently with reasons why, companies benefited especially in terms of achievement ofcompliance with laws and regulations (27%) and financial savings (25%). The decrease ofenvironmental accidents was pointed out only by 17%. Central and South Americans, instead,demonstrated an accentuated awareness in this sense too and declared to have taken advantage in terms of decrease of environmental accidents in a percentage well above average(32%; +15%). They also gained competitive advantage and improved brand reputation morethan others did (18%; +6%).
LEADERS profited much more than others did, especially in terms of “strategic” gains.
Benefits like competitive advantage and improved relations with other stakeholders are
rated much higher by them.

Has your company undertaken water management initiatives in the last 5 years?
What benefits did your company achieve from the actions undertaken?

TOTAL
N= 1.907

43,9%They have undertaken initiatives

N=

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

43,1%

43,2%

43,3%

53,6%

60,6%

81,5%

Achieved compliance with laws
and regulations

27,2%

25,6%

27,8%

23,6%

36,4%

40,8%

64,8%

Financial savings

24,5%

26,4%

21,2%

28,0%

27,8%

34,9%

52,8%

Decreased environmental
accidents

17,0%

12,4%

20,3%

10,8%

31,8%

26,2%

41,7%

Competitive advantage/increased
brand reputation

12,2%

11,3%

11,6%

12,1%

17,9%

17,9%

38,9%

8,1%

7,6%

8,2%

9,6%

7,3%

12,4%

30,6%

10,2%

9,6%

8,9%

13,4%

16,6%

13,6%

19,4%

Improved relations with otherstakeholders

Other/None/DK

Figure 14: Benefits from water management initiatives

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VIEWPOINT REPORTWINTER 2015

Main obstacles
There is not a single outstanding obstacle preventing companies from making more progressin managing water issues, but several. They fall into two categories: economic constraints andthe absence of pressures and of a real awareness on the matter.
Businesses are hindered by the lack of management awareness (21%) and of consensus about
what to do (15%). Among key economic difficulties, they also report the lack of financial resources (17%), no return on investment (17%) and the need to focus more on short term results(12%).
45% of LEADERS do not see any barrier to making progress in managing water issues. They
seem to know what to do; lack of management awareness is a problem only for one in ten.

What factors prevented your company from making more progress in managing water issues?

TOTAL
N= 1.907

EuropeAsia

North
America

806

740

157

CentreSouth
America

Productive

Leader

151

966

108

Lack of management awareness

21,1%

19,2%

23,1%

19,7%

21,2%

22,5%

10,2%

Lack of financial resources

17,2%

15,5%

17,6%

15,3%

24,5%

23,4%

18,5%

Lack of return on investment

16,5%

15,8%

18,8%

15,9%

11,3%

21,3%

14,8%

Lack of consensus about what to do

14,5%

9,9%

18,4%

14,6%

18,5%

15,7%

6,5%

Focus on short term results

12,4%

12,8%

12,0%

11,5%

12,6%

16,7%

8,3%

Lack of staff competences

10,4%

9,9%

11,2%

7,6%

8,6%

12,2%

6,5%

Decrease in efficiency

2,7%

2,5%

3,6%

0,6%

1,3%

3,6%

2,8%

Reduced competiveness

2,1%

1,6%

2,8%

-

3,3%

2,6%

0,9%

13,2%

7,0%

8,3%

9,9%

8,6%

6,5%

27,2%

22,7%

26,1%

22,5%

22,3%

45,4%

14,9%

15,1%

24,2%

9,9%

12,7%

12,0%

Other
No barriers perceived that prevent
progress
Don't know

10,0%
25,0%
15,3%

Figure 15: Obstacles to progress in managing water issues

20

VIEWPOINT REPORTWINTER 2015

FUTURE OUTLOOKPerformance expectations
In the future, 57% of companies assume they will reach higher positions (4 and 5) in the maturity scale measuring water management ability. The percentage grows to 86% for Latin Americans. More than one in two Europeans and North Americans expect to occupy positions 4 and5 too.
LEADERS are aware of the importance of water management and expect to maintain theirpositions in the future.

Where would you like your company to be positioned on a 5 point maturity scale for water management in 5 years’ time, where 1 is Beginner and 5 is Leader?

TOTAL% Top 2 Boxes

N= 1.907

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

28,9%

18,6%

26,8%

33,1%

32,7%

100,0%

61,9%

43,8%

61,1%

86,1%

67,8%

96,3%

(Scale: 1=beginner
5=leader)Current
PositionPosition
thought

25,2%

FuturePosition
Positionwanted56,8%Figure 16: Performance expectations

21

VIEWPOINT REPORTWINTER 2015

Future drivers and initiatives
Companies claim they will intensify their commitment towards water management in the future;
all initiatives record increases. Activities related to measurement and to more efficient use ofwater will remain the most common actions but there will be significant increases also in moresophisticated actions like staff training (1 in 3; +17% vs present), involvement of top management (1 in 4; +7% vs present) and audits (28%; +12%).
For sustainable water management, LEADERS will rely on more sophisticated actions in the
future, such as auditing and training.

Which of the following initiatives around water management will your company probably take in 5
years’ time?
% CURRENTTOTAL% FUTURE
0%10%

Actively tracking water usage

20%

30%

40%

21,8%

Investing in water efficient devices and equipment

20,6%

60%

70%

80%

90%

100%

38,1%
32,1%

Reporting water management issues to top management

18,0%

Replacing worn out equipment with water efficientequipment

16,5%

29,7%

Performing audit/assessment on water management

15,7%

27,9%

Having a dedicated function responsible for water
management

13,8%

Providing water management training to staff

12,7%

7,8%

50%

40,5%

27,4%

Having specific goals on water issues

Disclosing water management issues to stakeholders

1.907

N=

25,2%

16,4%
30,3%
13,1%

Figure17: Water management initiatives in the future vs present

To support their future engagement, 40% plan to increase investments. Central and SouthAmericans (66%) and primary sector companies are the most determined (59%).
All LEADERS will keep investing. 1 LEADER in 2 is even planning to increase investments.

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VIEWPOINT REPORTWINTER 2015

Is your company going to invest in the water management in the next 5 years?

EuropeAsia

North
America

CentreSouth
America

Productive

Leader

806

740

157

151

966

108

TOTAL
N= 1.907

More than today

39,5%

31,6%

40,4%

41,8%

65,5%

45,5%

52,9%

Same as today

42,6%

47,9%

42,6%

40,7%

25,7%

47,3%

43,7%

1,1%

2,4%

2,2%

1,8%

1,7%

-

19,3%

14,6%

15,4%

7,1%

5,6%

3,4%

11,2%

23,4%

24,2%

56,6%

38,3%

49,4%

Less than today

1,8%

No investments at all

16,1%

Figure 18: Future investments

Gap =

21,7%

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VIEWPOINT REPORTWINTER 2015

Potentials bound to water management are very high. All benefits coming from hydric initiatives are expected to record double digit increases; thanks to wiser water management, companies especially expect a decrease in environmental accidents (38%; + 21% vs present) and to
be able to improve their performance. In effect, financial savings (44%; +19% vs present) andcompetitive advantage/brand reputation (34%; + 26%) are expected to increase markedly.
Competitive advantage is assumed to increase, especially in Europe (+27% vs present) and in
North America (+23% vs present) while Asians and Central and South Americans believe they
will benefit especially in terms of a decrease in environmental accidents (both +27% vs present).

What benefits did your company achieve from the actions undertaken?
If would like to improve compared to your position today, what are the reasons for this?

% CURRENTTOTAL% FUTURE

N=
0%

10%

Improved relations with other stakeholders

40%

50%

60%

70%

80%

90%

100%

44,0%

17,0%

38,3%

12,2%

8,1%

1.907

37,2%

24,5%

Financial savings

Competitive advantage/increased brand reputation

30%

27,2%

Achieved compliance with laws and regulations

Decreased environmental accidents

20%

33,7%

20,9%

Figure 19: Expected benefits vs current benefits

In the future, LEADERS will be pushed to action especially by the possibility of gaining
competitive advantage (+9%).

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VIEWPOINT REPORTWINTER 2015

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VIEWPOINT REPORTWINTER 2015

PROFILING THE LEADERS
Leaders record much higher percentages throughout the whole survey, revealing that they
have a forward-looking approach.
Water management is a key topic for them from a business perspective; they are aware of
the importance of water management to keep operating and growing.
Leaders have a structured approach: they adopt policies, set specific goals for water usage
and implement a range of water related initiatives. Their efforts target efficiency of consumption but they work also in a strategic perspective. They train the staff, establish dedicated functions responsible for water management and carry out assessment activities.
The benefits they obtain are either tangible (related either to efficiency or to the possibility of gaining competitive advantage), or related to the improvement of their relation withstakeholders.
For sure, they will keep working on water management in the future and seeing in it a way
to improve their company’s performance.

Leaders’ features
1. Water supply is a key topic for LEADERS from a business perspective.
2. LEADERS are well aware of the legislation on water in their countries.
3. LEADERS adopt water management policies
4. LEADERS set specific goals for water usage.
5. Water management is not only a matter of efficiency for LEADERS but also
involves questions such as security and shortage management.
6. In addition to initiatives targeting efficiency of consumption, LEADERS establish
dedicated functions responsible for water management, train the staff and carryout assessment activities. 1 in 3 even disclose water management issues tostakeholder
7. Efficiency is not the only reason motivating LEADERS to undertake water
management initiatives. Safeguarding company assets and satisfying customers
are significant drivers for them.
8. LEADERS profited more than others did, in terms of efficiency but especially ofcompetitive advantage, and of improvement of relations with stakeholders.
9. LEADERS tackle obstacles better than others and know what to do: lack ofawareness is less of a problem for them.
10. LEADERS will keep investing and working on water questions in the future.

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VIEWPOINT REPORTWINTER 2015

OUR FINAL THOUGHTSDemographic pressures, economic development, climate change, urbanization and pollution
are all putting pressure on the world’s freshwater resources. The demand for water keeps growing and is further projected to increase by 55% by 2050, due to growing demand for manufacturing, electricity generation and domestic use. More efficient use of water has never been as
crucial as it is today.
However, using water in a more efficient way does not only allow to maintain a sustainableequilibrium but also to benefit from the opportunities that go with it. There are many examples.
In agriculture, innovative irrigation technologies can reduce water extraction (and therefore
costs) and increase crop yields. Other business opportunities come from freshwater production; thanks to new technologies and use of renewable energy new markets bound to wastewater treatment or desalination plants open up. Again, smart water regulation with pricing mechanisms encouraging efficiencies or the introduction of other initiatives such as labelling products
to allow consumers to make water-efficient purchases represent further opportunities.5
These are only some of the many opportunities offered by more efficient use of fresh water.
Each organization can take advantage of its own; they are within every firm’s reach. Water management is just beginning to be approached with the same organizational attitude adopted forother business areas. For this purpose, awareness and measurement play a key role.
Basic steps to more efficient water management can be easily summed up. Each company
needs to:
1. Set its own goals. They may vary from generically promoting awareness to reduction of
consumption to the definition and adoption of a policy.
2.

Measure its water footprint - that is to say the total volume of water used to produce
goods and services - combining data about different operations (groundwater used byindustry/agriculture, rainfall absorbed by crops, wastewater…)

3.

Conduct an assessment in order to identify the water impact of their performance according to different parameters (per geography/plant, product, process, people, etc.)

4.

Define a strategy and build a roadmap to reduction and improvement.

The diffusion of such an approach could contribute to preserving freshwater resources and toguarantee everyone’s right to “physically sufficient, safe, acceptable, and affordable water for
personal uses” as provided for by international human rights law.

5

Global Risks 2015, 10th Edition, is published by the World Economic Forum within the framework of The Global Competitiveness andBenchmarking Network.

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