Water Resilience: Adapting, Evolving and Bouncing Back
Introduction
Water is an essential resource for industrial operations, yet businesses often underestimate the risks associated with water scarcity, poor water quality, and extreme weather events.
According to the European Environment Agency, water stress affects 20% of Europe’s territory and 30% of the population on average every year.1 Further, less than 30% of the surface waters in Europe achieved ‘good’ chemical pollution status as outlined by the Water Framework Directive.2 And extreme whether events such as heavy rainstorms are expected to increase in frequency and intensity across Europe because of climate change.3
While companies devote significant resources to identifying and mitigating other financial, operational, and reputational risks, water-related risks are often an afterthought—until a crisis hits. As local, regional and global water challenges intensify, industries must anticipate, prepare for, and adapt to water-related risks to maintain stable and sustainable operations.
Water Risks in Industrial Operations
Industrial water use depends on a complex system of local water availability, infrastructure, regulatory environments, and climate conditions. Water-related risks come in various forms:
Types of Water Risks
- Physical Risks: Droughts, flooding, and poor water quality can disrupt operations, increase costs, and damage infrastructure.
- Regulatory Risks: Governments are tightening water regulations, imposing stricter water use and discharge limits, and increasing water tariffs.
- Operational Risks: Deteriorating or insufficient pipe works, pumps, and treatment systems can cause leaks, pressure drops, water contamination, and system failures, leading to unplanned downtime and increased maintenance costs.
- Reputational Risks: Companies that fail to manage water responsibly face backlash from consumers, investors, and local communities.
- Supply Chain Risks: Many businesses overlook water risks in their supply chains, yet disruptions in water availability at key supplier locations can halt production and increase costs.
The Growing Importance of Water Resilience
Water resilience is rarely top of mind for industry but should be. True water resilience not only enables businesses to quickly bounce back from disruptions like droughts, floods, or infrastructure failures but also helps them adapt and evolve to reduce future vulnerabilities.
With climate change driving more frequent and severe droughts and floods and governments tightening water-related regulations and increasing tariffs, businesses must integrate water resilience into their long-term planning.
Industries that are highly dependent on water, such as manufacturing, pharmaceuticals, food and beverage, and energy, are particularly vulnerable. However, even companies that do not consider themselves water-intensive can suffer indirect impacts through supply chain disruptions, increased costs, and regulatory pressures.
Strategies for Building Water Resilience
To enhance water resilience, businesses should adopt a proactive approach that includes:
- Conducting Water Risk Assessments: Companies must evaluate their direct and indirect water risks by analysing local water conditions, regulatory landscapes, site-specific water issues, and supply chain dependencies.
- Understanding the True Cost of Water: Companies must understand both the direct and indirect costs of their water use, including permitting, maintenance, treatment, and storage, just to mention a few.
- Improving Water Efficiency: Reducing water use through process optimization, water recycling, and alternative water sources can decrease dependence on local water supplies.
- Upgrading and Maintaining Infrastructure: Regular maintenance and modernization of aging water systems, including pipes, pumps, and treatment plants, can help prevent failures and ensure consistent water supply.
- Collaborating with Local Communities: Engaging with stakeholders, including governments and local communities, can help industries develop sustainable water management strategies.
- Investing in Nature-Based Solutions: Wetlands restoration, groundwater recharge, and watershed protection can help enhance water availability and quality while benefiting surrounding ecosystems.
- Adopting Digital Water Management Tools: Advanced data analytics, smart meters, and AI-driven water monitoring can provide real-time insights and enable proactive decision-making.
- Developing Emergency Response Plans: Companies should prepare contingency plans for water shortages or infrastructure failures to minimize operational disruptions.
Conclusion
Water resilience planning is no longer optional - it is a business imperative. Companies that fail to assess and mitigate their water risks may face operational disruptions, financial losses, and reputational damage. By integrating water resilience into corporate strategies, industries can safeguard their long-term success, reduce their environmental impact, and contribute to a more sustainable water future.
Invitation to Learn More:
Companies should take immediate steps to secure their water future by conducting a water risk assessment and setting water reduction targets in line with industry benchmarks. Get in touch with us here to see how we can help get your plan in place. Now is the time for businesses to recognise water resilience as a core pillar of risk management and take proactive steps toward securing their water future.