YtDl2r

4 Water Stewardship –
From Risk to Opportunity
Depending on a company’s operation and supply
chain, its water risks will vary. For example, the
agricultural sector will be directly affected while
the food retail sector will be indirectly affected –
even though they both share the same risk. The risk
is often not caused by the company itself but by the
interaction of various stakeholders that use the same water. Therefore, a company
can rarely manage all of these so-called “shared water risks” internally or
alone. Action is required at the local and/or river basin level, which typically
involves some degree of cooperation with other stakeholders or government 180 .
Water stewardship
goes beyond being an
efficient water user.
Becoming a good water
steward requires
recognising water as
a strategic and core
business issue that is
material to profits and
long-term opportunities
for growth.
Water stewardship goes beyond being an efficient water user. It means
contributing to the responsible and sustainable management of freshwater
resources, and finding solutions for “shared risks” in a specific river basin.
The root cause of water risk is often not the availability or use of water, but
governance; unless an entire river basin is managed in a sustainable way, one
company’s improved efficiency will likely be overshadowed by increased use
by a competitor or a neighbouring community. This makes water the ultimate
shared resource – and everyone’s responsibility 181 .
Consistent with this idea, sustainable business engagement should not simply
be a matter of corporate social responsibility (CSR) or public relations. There
is an essential business case for achieving sustainable flows – access to clean
water in order to sustain production and profitability. It is important for companies
to understand that if they undertake water-related activities from a CSR
perspective alone, it is unlikely that they can address the underlying water
risks they face or leverage the potential opportunities.
Companies that evolve from understanding their portfolio’s water risks towards
implementing water risk management strategies decrease their risk
exposure. Becoming a good water steward requires shifting from ad hoc and
philanthropic initiatives to recognising water as a strategic and core business
issue that is material to profits and long-term opportunities for growth 182 .
Water stewardship K
The use of water that is socially equitable, environmentally sustainable and economically
beneficial, achieved through a stakeholder-inclusive process that involves site
and catchment-based actions. Good water stewards understand their own water use,
catchment context and shared risk in terms of water governance, water balance, water
quality and important water-related areas; and then engage in meaningful individual
and collective actions that benefit people and nature.
4.1 Water Stewardship Steps
Because reducing water risks often requires a complex approach, companies
are increasingly using practical approaches like WWF’s water stewardship
model, especially when risk is already high or if poor management from public
authorities is seen as a future risk. By using the water stewardship model, companies
are able to lower their internal and external water-related risks. Ultimately,
companies can contribute to a sustainable water management at their local
level of engagement, for example by promoting clearer, consistent laws and
regulations that govern water use 183 .
K http://www.allianceforwaterstewardship.org/about-aws.html#what-is-water-stewardship
THE IMPORTED RISK Germany’s Water Risks in Times of Globalisation | 59