Water is running out – is your ESG strategy ready?
25 Aug, 2025

 

Robert Erasmus, Managing Director at Sanitech

 

Water is one of the most critical yet undervalued resources in modern business. As climate change accelerates and global demand increases, water scarcity is no longer a distant environmental issue – it is a present-day business risk. For companies operating in water-intensive sectors like mining, energy, manufacturing, and agriculture, water security directly affects continuity, reputation, and long-term profitability. As such, treating water as a strategic business issue is not just about sustainability. It is about survival. When water becomes unavailable, unaffordable, or unreliable, operations stall, communities suffer, and investors take notice. Businesses that continue to view water as merely a compliance item are missing the bigger picture.

 

Moving from compliance to stewardship

 

Historically, most businesses have focused on compliance-driven water management. This typically involves ensuring the quality of water discharge, maintaining efficient use, and meeting regulatory requirements. While necessary, this approach is no longer enough.

 

Water stewardship goes further. It asks businesses to understand their water footprint across the entire value chain and to engage with others who share the same water resources. Water is a shared asset. Using it sustainably means collaborating with local communities, municipalities, and other industries in the same catchment. True stewardship involves transparency, accountability, and long-term thinking. It also means acknowledging that water issues are complex, interconnected, and increasingly urgent. Businesses that embrace this mindset can help secure not just their own operations, but the future of the regions they work in.

 

Why water is now a boardroom issue

 

Water is becoming a strategic risk. Supply disruptions, tightening regulations, and growing public pressure are already affecting business performance. Investors are watching closely. ESG ratings now consider exposure to water-related risks like drought, flooding, and compliance failures. Ignoring water management doesn’t just threaten operations. It threatens long-term business value.

 

There are several practical steps companies can take to improve water sustainability and reflect this in their ESG reporting. First, review how water is being used. Reducing consumption, improving reuse systems, and investing in efficient treatment all make a difference. If water must be discharged, it should be treated to a standard that doesn’t place extra strain on local infrastructure.

 

Secondly, look beyond the immediate site. Water stewardship involves protecting the health of the entire catchment area. That means investing in projects that maintain rivers, wetlands and groundwater systems. It also means understanding how an organisation’s operations affect water availability and quality for others in the area.

 

Thirdly, think of water as a business risk. Water outages and infrastructure failures are becoming more common. Companies that build resilience into their water systems – just like they do for power – will be in a stronger position to avoid downtime and protect their supply chains.

 

Working together for shared outcomes

 

Even with the right strategy in place, companies can face delays and red tape. Licensing processes and regulatory hurdles can hamper progress on water projects, even when they’re in the public interest. As such, there is a clear need for policy frameworks that support rather than block responsible water use.

 

At the same time, collaboration is key, as no business can solve water issues alone. Working with municipalities, regulators and local communities creates more sustainable solutions. For example, treated water from industrial processes could be put to work elsewhere, used for agriculture or dust suppression – which will reduce pressure on other water sources. Such partnerships also help businesses build trust and show that they are not just looking after their own interests, by contributing to the overall health and stability of the area they operate in.

 

Looking ahead to World Water Week 2025

 

World Water Week 2025, held in August, is a timely opportunity for businesses to engage in global water-related dialogue. It is a platform to showcase innovation, learn from peers, and align corporate goals with broader development agendas.

 

For companies that have made water a strategic priority, the week offers a chance to share success stories and influence policy. For those just starting the journey, it is a valuable entry point to understand best practices and access expert insights.

 

Above all, it is a reminder that water is not just an environmental crisis. It is a business crisis. The companies that act now to embed water stewardship into their ESG strategies will be the ones best equipped to face the future.

 

ENDS

Author

@Robert Erasmus, Sanitech
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