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* Water footprint of a business Date Published: 09/12/2009 *
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- Definition of a water footprint
- A supply-chain perspective
- Different elements of water
- Water footprint accounting in business
- What can business do?

 

Definition of a water footprint:

The water footprint (WF) of a business or 'corporate water footprint' is defined as the total volume of freshwater that is used directly and indirectly to run and support a business, according to the Water Footprint Network.

The water footprint of a business consists of two components:

  • The supply-chain water footprint is the water used in the producer's supply chain (indirect water use)
     
  • The operational water footprint is the water used for producing/manufacturing or for supporting activities by the producer (direct water use)
     

A supply-chain perspective

Numerous businesses have a supply-chain water footprint that is larger than their operational water footprint. Predominantly, this occurs with companies that are not directly involved in agricultural activities, but their products are based on agricultural products, such as crop products, meat, milk, eggs, leather and cotton.

When consumers use products, there can also be a water footprint in the 'end-use' stage. An example of this is the water used when washing. This is known as the 'end-use' water footprint of a product - this footprint is not considered part of a business's water footprint, according to the Water Footprinting Network. However, that does not mean that a business should withdraw from some responsibility about what happens in the 'end-use' stage.

One example of how the food and grocery industry has taken positive steps in the 'end-use' stage is through the Future Friendly labelling initiative. The Future Friendly label has been developed in partnership between Procter & Gamble and leading sustainability experts to educate and inspire consumers about saving water. A Finish food manufacturer has gone one-step further and developed a water footprinting label, which it claims to be the world's first for a food company. It has added an H²O label to product packaging, indicating the total water consumption of the product.
 

Example of the water footprint of a retailer

Example of the water footprint of a retailer

(Source: Water Footprint Network)
 

Different elements of water

Water use is measured in terms of water volumes consumed (evaporated) and/or polluted per unit of time. Both the supply-chain and operational water footprint split up into three elements:

  • Blue water footprint is the volume of freshwater that evaporates from surface water and ground water
     
  • Green water footprint is the volume of freshwater evaporated from rainwater stored in the ground as soil moisture
     
  • Grey water footprint is the volume of polluted water, calculated as the volume of water that is required to dilute pollutants to such an extent that the quality of the water remains above agreed water quality standards
     

Water footprint accounting in business

Water footprint accounting is relevant for any business, but especially so for those that have supply chains that operate in water scarcity areas. It can be applied to any company producing goods and/or services that are supplied to consumers or other businesses.
 

What can business do?

According to WWF, UK Water Footprint report, businesses can play an important role in improving the management of water resources and reducing their environmental impact.

The UK Water Footprint report summarised that companies should carry out the following actions to improve their water management and reduce the risk of environmental damage.

  • Calculate your Water Footprint and reduce impacts in areas where water is either already scarce or is likely to become scarce
     
  • Examine the volumes, impacts and risks of water use along your entire supply chain
     
  • By working with other companies, and pushing for sound water management and strong implementation of collective water agreements that provide basic rights of access to water for people and nature
     
  • Engage with other companies and with academics, government agencies and NGOs to maintain transparency and rigour when measuring and responding to water issues
     
  • Communicate to consumers and through business-to-business channels your contribution to good water management
     
  • Think and act beyond your own footprints.

The report also stated that consumers could play a role by:

  • Wasting less food and recycling products, therefore wasting less water
     
  • Pressuring retailers and food manufacturers to deliver water sustainability through their stores and crucially in their supply chains
     
  • Supporting and pressuring UK government to implement policies relating to the sustainable use of UK water resources (Habitats Directive, Water Framework Directive) and external water resources (UN Convention)

(Source: WWF)

 

Related IGD links:

Factsheets
- Water Management - reference & organisation listing
- The Increasing Demand for Water
- Water Use in the Supply Chain
- CDP Water Disclosure
- Embedded Water in Food Production
- Food and Grocery Sector: Water Reduction Commitments


Related Internet links:

The following PDFs are from the WWF:
UK Water Footprint: the impact of the UK's food and fibre consumption on global water resources (PDF) Link opens in a new window
Water footprinting: Identifying & addressing water risks in the value chain (PDF) Link opens in a new window

(IGD is not responsible for the content of external sites)

 

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