The health of humans, ecosystems, and economies across the globe is at risk due to threats to freshwater resources. Industries face mounting pressure to become better water stewards, protecting the watersheds in which they operate through the adoption of business and operational practices that acknowledge the changing reality.

Ceres, a nonprofit organization working to advance the adoption of sustainable business practices among companies and investors, developed the Corporate Expectations for Valuing Water, a set of six benchmarks for businesses to meet by 2030 to mitigate water risk. The expectations align with the UN Global Compact CEO Water Mandate’s six commitment areas and the United Nation’s 2030 Sustainable Development Goal for Water (SDG 6).[1]

Recently, Ceres published its inaugural report ranking 72 large companies based on their efforts toward the six expectations. The companies represent the clothing, food, beverage, and technology industries and have high water usage. The analysis revealed that most companies are far from meeting their 2030 sustainability targets. Key findings in the report include:

  • 42% of companies have established water use targets related to operations and supply chain in high-risk watersheds while only 6% have done so for water quality targets.
  • 35% of companies consider broad factors, such as local watershed conditions, regulatory dynamics, and community water needs, in water use assessments and only 14% do so for water quality.
  • 7% of companies evaluate water withdrawal impacts on water resources and 22% do so for wastewater discharge.
  • 13% of companies have established targets geared at protecting or restoring ecosystems.
  • 28% of companies have a corporate policy that acknowledges access to water and sanitation as a fundamental human right.[2]

 

Only 11 companies were designated as being “On Track,” achieving at least 50% of expectations, and no company achieved the highest designation, achieving 75% or more expectations, emphasizing that heightened attention is needed to meet the 2030 deadline.[3] Although there are no legal repercussions of the analysis, Ceres hopes to drive investors toward sustainability who will then propel businesses to do the same.

[1] “Valuing Water Finance Initiative.” Ceres, www.ceres.org/water/valuing-water-finance-initiative. Accessed 12 Dec. 2023.

[2] Perveen, Shama, et al. “Valuing Water Finance Initiative Benchmark.” Ceres.Org, Oct. 2023, www.ceres.org/sites/default/files/Valuing%20Water%20Finance%20Initiative%20Benchmark%20-%20Key%20Findings.pdf.

[3] Perveen, Shama, et al. “Valuing Water Finance Initiative Benchmark.” Ceres.Org, Oct. 2023, www.ceres.org/sites/default/files/Valuing%20Water%20Finance%20Initiative%20Benchmark%20-%20Key%20Findings.pdf.