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The Business Case For Water Efficiency

By Tejashree Joshi March 22, 2024

World Water Day: The use of advanced technologies like AI and IoT can aid in optimising water usage through real-time tracking and regulation

The Business Case For Water Efficiency
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As global temperatures rise and climate patterns become more erratic, water's role in sustainability and adaptation grows ever more critical. In India, where agriculture and industry are vital, water is essential for both rural and urban areas. Yet, India faces growing concerns about water scarcity. Pollution from urban and agricultural runoffs, industrial waste, and untreated sewage compromises both surface and groundwater quality. With 18 percent of the world’s population and just 4 percent of its water resources, India is one of the most water-stressed countries in the world.

Water and Businesses

The industry is one of the biggest consumers of water in India. Significant use of water in the industrial sector encompasses thermoelectric power generation, manufacturing facilities, ore, and oil refineries. Responsible for a gamut of functions including cooling, cleaning, and acting as a solvent and a chemical reagent, water is a critical resource across industries. Its shortage can lead to an inability to meet consumer demands, resulting in revenue losses and even closure.

Bengaluru's escalating water crisis drives home the multi-dimensional impact of water scarcity on businesses. Due to inadequate rainfall in 2023 and the intensified El Nino effect, the city’s businesses are tackling widespread disruptions in production and accommodating their employees. The city is witnessing production slowdowns in its garment and manufacturing factories, doubled restaurant water bills, and escalating water costs.

The water crisis in Bengaluru is particularly challenging for small and medium-sized enterprises (SMEs) and original equipment manufacturers (OEMs), threatening to disrupt production and operational continuity. SMEs, critical in sectors like packaging and engineering, find themselves at crossroads, grappling with potential production cuts during a crucial financial period. An industry association's plea for treated water underscores the acute shortage's impact on businesses primarily composed of smaller entities. Additionally, OEMs integral to the automotive industry face the daunting task of fulfilling manufacturing commitments without succumbing to the pressures of water scarcity.

The crisis has caused a significant hit to productivity and amplifying operational costs; bringing to the forefront the importance of water conservation to ensure business sustainability.

Water and Peace

UN Water holds that climate change is primarily a water crisis. Irregular rainfall patterns, droughts, and the depletion of natural water sources are becoming increasingly common and have far-reaching consequences for people. Water insecurity is among the leading causes of displacement around the world. In 2022, India alone saw 2.4 million internal displacements due to floods and droughts.

Moreover, mismanagement of water resources leads to its unfair distribution among people and between territories. With 2.2 billion people living without adequate access to water, the conflicts and violence around unfair sharing can lead to grave consequences. Water conservation and management, therefore, are also imperative in de-escalating these tensions.

Water Conservation by the Industrial Sector

Being a major consumer of water, businesses have a responsibility to implement water-saving practices and educate communities on the importance of safeguarding water. Conservation strategies must not only aim to reduce consumption and wastage but also ensure the replenishment of water resources. For instance, industries can implement integrated recovery, reuse, and recycle systems, alongside groundwater recharging, to significantly minimise their water footprint. The 5 R process (redesign – reduce – reuse – recycle – recovery) is instrumental in creating a circular approach as well as reducing water consumption in production processes.

From an economic perspective, water efficiency translates into cost savings for businesses by lowering utility bills. In-house effluent treatment with groundwater recharging mechanisms reduces the pressure on freshwater and groundwater sources. This also ensures continuity of operations and production even during water crises. The use of advanced technologies like AI and IoT can further aid in optimising water usage through real-time tracking and regulation.

Ensuring supply chain water sustainability is another key component of water stewardship. For example, large businesses can provide guidance or incentives for supply chain partners, who are often SMEs, to adopt rainwater harvesting, efficient irrigation methods, and wastewater treatment and reuse. By fostering transparency and sharing best practices, industries not only enhance their water resilience but also contribute to the broader goal of sustainable water management across sectors. This integrated approach ensures that every link in the supply chain contributes to the conservation of water, thereby reducing the overall water footprint of products and services.

Community initiatives for water conservation can range from restoring local water bodies and implementing community-based rainwater harvesting systems to promoting water-efficient agricultural practices among local farmers. Engaging with the community to raise awareness about water conservation and collaborating with local governments and NGOs to implement water projects can ensure the long-term sustainability of projects and foster a sense of ownership amongst people.

The escalating water crisis demands that industries lead in water conservation. While cost savings is an important goal, the prime importance is to ensure that, as businesses, we contribute to environmental sustainability and community well-being. Embracing "Water for Peace" for equitable resource management is how businesses must commit to fostering harmony, resilience, and hope for a better future in the face of climate change.

(Tejashree Joshi is Head Environmental Sustainability at Godrej & Boyce.)

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