Water as a Shared Challenge

Deloitte University Press Reports Water as a Shared Challenge: From Societal Expectations to Collective Action

Water issues now make headlines on a regular basis. In 2014, in the United States alone, water-related challenges have included a drought in California; the overexploitation of the Ogallala aquifer, which underlies eight Great Plains states; and a tap water ban in Ohio that disrupted the lives of hundreds of thousands of people.When these challenges arise in a country with an extensive and reliable water utility infrastructure, an understanding of the importance of clean water, and an awareness of the importance of environmental regulations around water supply, it is no surprise that water issues are even greater when viewed on a global scale.

Water withdrawals are predicted to increase by approximately 50 percent in developing countries and 18 percent in developed countries by 2025, leading to increased local competition for water.One crucial and increasing use of water is for agriculture, which accounts for more than 70 percent of all water withdrawals today.Yet the supply of water for other uses, including drinking and sanitation, is under strain as well. Nearly 780 million people worldwide lack access to safe water, and 2.5 billion people do not have access to adequate sanitation, according to the World Health Organization (WHO)/United Nations International Children's Emergency Fund (UNICEF) Joint Monitoring Programme (JMP) for Water Supply and Sanitation.The economic effects of ineffective water resource management are becoming increasingly apparent, and these effects will likely limit economic development and greatly exacerbate rural poverty, particularly in emerging and developing economies.

GROWING SOCIETAL EXPECTATIONS

Increasingly, companies are responding to the growing expectations of investors, business partners, and governments, who are "asking hard questions of global businesses and incorporating respect for human rights into relevant policies, standards, and regulations."Companies are also addressing the reputational risks associated with supply chain issues and human rights, water scarcity, and access to safe water, sanitation, and hygiene (WASH). In certain industry sectors, there is a recognition of the commercial costs associated with failing to manage these issues. For example, in the extractives sector, some of these commercial costs manifest as operational inefficiencies in supply chains and the operational costs of conflict with local communities. In some cases, companies frame responses as "the right thing to do" as they align social performance with core corporate values and the values of their employees.

However, there are often practical challenges in responding to social issues. Companies, and those responsible for human rights issues within those companies, face a number of barriers to operationalizing solutions that address social concerns. These barriers can include the need for increased awareness and understanding of the relevance and meaning of human rights and social issues; challenges in securing the leadership and commitment necessary within the organization to act; and difficulties in translating that commitment into policies and practices embedded in a company's operations and long-term strategy.

Source: Deloitte University Press

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Taxonomy

• Water Supply
• Water Risk