Unpacking the water-climate connection

Outcome-based water solutions can boost your business and help build a more sustainable future.

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When considering which sustainability strategies to implement for your business, better water stewardship can be easy to undervalue. Many climate change roadmaps often center on goals like mitigating greenhouse gas emissions, ignoring the crucial role water plays in these goals based on the connection between water and energy. In fact, more efficient water use cannot only optimize energy use and reduce emissions—it can help the bottom line at the same time.

“There is a common misconception that sustainability and profitability goals can’t coexist—but that’s not the case,” said Calvin Emanuel, vice president and general manager of Sustainable Growth Solutions at Ecolab, a global leader in water, hygiene and infection prevention solutions and services. “When setting performance and sustainability targets across water, energy and carbon, companies don’t need to choose between profitability or sustainability.”

Companies that want to build a sustainable future while continuing to grow need to be thinking about how they consume, treat, move, heat, cool and discharge water.

The water-climate connection

Water and climate change are deeply interconnected—climate change affects water quality and water availability. As climate change worsens, water access is becoming more unpredictable for millions of people.

“Freshwater ecosystems sustain water for people, wildlife and industry,” said Adrian Sym, chief executive officer at the Alliance for Water Stewardship, which has created a global standard for sustainable water management. “When these breakdown due to climate change or unchecked water usage, the impacts can be devastating.”

The effects of climate change on water are already being felt around the world. According to a survey by Ecolab, 80 percent of global consumers have been impacted by climate change, and 60 percent have had reduced access to drinking water recently. Climate-induced droughts are also shrinking water supply as demand for irrigation increases. In 2018, Cape Town almost ran out of water before making drastic changes to their water use. And when it does rain in water-scarce areas, there are flooding risks, like in California, which is suffering from regular droughts followed by flooding.

Water and climate change further intersect with industrial water usage. In industries like chemical manufacturing, food and beverage manufacturing and electronics manufacturing, water is often used for washing, heating, cooling, processing, diluting or fabricating.

This use of water also involves energy, forming a relationship known as the water-energy nexus. Transporting, heating, cooling and treating water requires energy, and energy production is responsible for about 75 percent of global greenhouse gas emissions which contribute to global warming. For example, the majority of industrial boilers in the United States burn coal, natural gas or other fuels to heat water which release emissions into the atmosphere.

“Water is essential to life as well as business,” said Emanuel. “It’s either a part of a company’s product or is used in the creation of that product. So considering that two billion people around the world are living within water-stressed areas and that businesses everywhere rely on water to operate, increased focus is needed to protect this critical resource.”

The reality of climate change and the related need to reduce energy use is calling us to think seriously about responsible water stewardship. But better water use can not only help the planet; it can help businesses run more efficiently and effectively. According to cumulative savings based on system-wide industry audits, Ecolab has found that more efficient water management in production processes can reduce water consumption by up to 44 percent, energy use by up to 22 percent and greenhouse gas emissions by up to 12 percent.¹

The private sector’s role in mitigating climate change

Sustainable water management within industry is central to building the resilience of communities and ecosystems and reducing carbon emissions. But climate action helps more than just the planet. With consumers and governments putting pressure on businesses to step up, becoming more sustainable also safeguards reputation and future growth.

As consumer demand for companies to be sustainable increases, CEOs and boards are recognizing the impact of sustainability goals and climate action on brand and shareholder value. However, water use has been mostly overlooked. In 2022, 83 percent of Fortune Global 500 companies had climate change targets, but only 25 percent had set targets for making their freshwater consumption more sustainable. Ecolab’s survey found that 74 percent of consumers think businesses should prioritize conserving water.²

Companies that disclose and manage their environmental impacts can have up to 18 percent higher returns on investment compared to companies that don’t. As well as the cost savings involved with reducing water and energy use, many companies also have the potential to become eligible for water and energy efficiency grants.

“Missing the opportunity to connect water’s inherent role in meeting a range of sustainability goals exposes companies to risks that can significantly compromise business continuity and customer reputation,” said Sym. “To ensure business operations and supply chains are resilient, companies need a strategy that encapsulates the bigger picture of water.”

Reducing water use to bolster sustainability and business growth

Ecolab’s new Ecolab Water for Climate program aims to help companies reduce environmental impact and reach climate goals, as part of a holistic approach to meeting business growth goals. The program assesses where companies are in their water stewardship journey, then uses auditing, consulting, engineering, advanced chemistries and digital technologies to meet business needs.

“By better managing water in operations, businesses can reduce their energy use and greenhouse gas emissions,” said Emanuel. “Ambitious climate goals can be achieved without compromising business growth.”

In practice, Ecolab helps companies design strategies to reduce, reuse and recycle water, and monitor the impacts this has on energy use, greenhouse gas emissions and costs. Ecolab program managers work alongside businesses to implement solutions and provide data analysis to show how companies are progressing towards their environmental goals. According to Emanuel, the Ecolab Water for Climate program is designed to help customers in the beverage and brewing manufacturing industry reduce water use on average by 25 percent, energy use by 12 percent and greenhouse gas emissions by 6 percent.³

By helping your company better monitor, reduce and reuse water, Ecolab Water for Climate can quantify the impact of your water use on energy, greenhouse gas emissions and your bottom line—setting your business up for long-term success.

“The world’s 150 largest companies have the potential to make a positive impact on one-third of the world’s water use, according to the Water Resilience Coalition, meaning that any work the private sector does to protect water security can make a significant difference,” said Emanuel.