Without question, there are both risk and opportunity at the water's edge. On one hand, the threats to freshwater are grave, with climate change and an increasing global population that requires food and clothing, not to mention safe drinking water. Water is simply becoming scarcer. On the other hand, impending crisis is often a great motivator. Savvy and responsible companies from nearly all sectors, along with investors and insurers, are taking action to secure their bottom lines.
Becoming an efficient water user "inside the factory fence" is only the first step of the journey. Those further down the water stewardship path are engaging with local, regional and national authorities to help ensure that water resources are managed sustainably.
The future security of freshwater resources around the world is of increasing concern. Due to our interlinked global economy, waterscarcity in many parts of the world could harm the global economy in ways we had not thought of. Shortfalls in crop yields and more variable food prices could be an early impact.
Our demand for water is closely linked to economic growth. As we grow wealthier, the more freshwater we require to supply cities, power plants, factories and the production high protein food such as dairy, meat and fish.
It is not just a question of more people requiring more water. Rather, it is a case of more wealthy societies demanding much more water. During the 20th century, while population grew by a factor of four, freshwater withdrawals grew by a factor of nine. If we take these past patterns and look forward, the outlook for 2030 is stark.
Currently about 70% of the world's freshwater withdrawals are for agriculture, 16% are for energy and industry and 14% are for domestic purposes. Recent work suggests that unless we change our historic approach to how we use water, we could face a 40% gap by 2030 between