Our industry is engaged in an important dialogue to improve sustainability through ESG transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.
In 2023, the world became more aware of the growing challenge posed by water scarcity and the complex ways water use impacts sustainability. Less than one percent of the world’s water is available for human use. However, freshwater demand continues to increase, particularly in urban areas. Some regions are already experiencing water stress reaching both high and extreme levels. The western U.S. has some of the highest water use per capita in the country due to landscape irrigation. Proactive management of water resources by global, national, and local stakeholders is critical to the long-term sustainability of this precious resource.
International organizations mobilize on water
Global organizations are coalescing resources around the United Nations Sustainable Development Goal 6 (UNSDG6): to ensure the availability and sustainable management of water and sanitation for all. In November 2022, the 27th UN Climate Change Conference (COP27) convened with a water-focused agenda. The Action on Water Adaptation and Resilience (AWARe) initiative was born at COP27, which seeks to decrease water waste worldwide. In March 2023, the UN Water Conference was held for the first time since 1977 to review international water policy. According to the World Economic Forum, “The gap between global water supply and demand is projected to reach 40 percent by 2030 if current practices continue.” There is growing concern worldwide that we could exhaust freshwater resources in only a few decades from now if not managed properly.
A leaky mismanaged bucket
The global focus on water conservation trickles down to local action through responsible water management by local stakeholders. Utility companies are effecting change through policies that encourage responsible water use, including penalties for misuse of water and increased water rates. End users can implement water conservation policies and manage water responsibly by using drought-tolerant landscaping and leveraging technology to maximize water use efficiency.
However, globally, one-third of all freshwater running through pipes is lost to leaks. Even more is lost through inefficient and wasteful irrigation management. Effective implementation of technology can eliminate this massive amount of waste. With IoT-enabled smart water management solutions, sensor-based devices, and leak detection technology, users can efficiently manage water resources and respond quickly to stop leaks. End users also benefit from significant savings on their water bills, avoided penalties, and improved sustainability and ESG scores.
As we head into 2024, we can expect that the focus on water conservation will continue to gain momentum. The 28th UN Climate Change Conference (COP28) has included restoring freshwater ecosystems and enhancing urban water resilience as top priorities. Water rates are expected to continue to rise with greater penalties imposed on those who do not manage water resources responsibly. From international policymakers to local water users, everyone has a role to play in protecting water resources for the future.
This article was written by Jemetha Clark, ESG Specialist, at HydroPoint Data Systems.
References
Environmental Protection Agency, “How we use water,” Environmental Protection Agency, 2023.
World Resources Institute, “Aqueduct,” World Resources Institute, 2023.
United Nations Department of Social and Economic Affairs, “Goal 6: Ensure availability and sustainable management of water and sanitation for all,” UN Department of Social and Economic Affairs, Sustainable Development.
United Nations Department of Social and Economic Affairs, “Action on Water Adaptation and Resilience (AWARe),” UN Department of Social and Economic Affairs, Sustainable Development.
World Economic Forum, “Global freshwater demand will exceed supply 40% by 2030, experts warn,” WEF and EcoWatch.
Bank of America Global Research, “Global water scarcity: H2O no!” Bank of America Institute, Sustainability.