Ecolab & CDP: How the Water Index Can Bring Sustainability

As much as 60% of global GDP relies on dependable access to water, which means that water use efficiency represents one of the most crucial variables for water-stressed regions. These pressures appear most acutely in the food, beverage and agriculture sectors, which account for approximately 70% of global freshwater consumption.

The rapid growth of AI also contributes to water scarcity – by 2030, it is projected that AI will require as much water as the annual drinking water supply of the US. According to Ecolab, companies have a significant opportunity to reduce, reuse and recycle water to protect the environment and natural resources.

To tackle this challenge, Ecolab has collaborated with CDP to develop the Water Use Efficiency Index, a tool designed to help businesses enhance their operational water performance. The initiative will begin with a pilot programme in the beverage and brew segment of the food, beverage and agriculture sector, recognised as one of the world's most water-intensive industries.

Sherry Madera, CEO of CDP, says: "Water is a critical economic input. It is integral to growth and success across industries including AI, semiconductors and manufacturing.

"As water stress intensifies, companies that understand, manage and improve their water use will be better positioned to protect margins, secure supply chains and attract capital."

Understanding the efficiency framework

The Water Use Efficiency Index aims to target water scarcity, particularly in water-stressed regions. It provides a data-driven view of what ideal operational water use looks like for individual industries.

Companies can use the Index to compare their performance to their peers', using the data to improve their water efficiency. The Index also helps companies develop water strategies, helping to embed circular water management across their entire business.

The framework enables businesses to identify specific areas where water consumption can be optimised. This targeted approach allows companies to prioritise investments in water-saving technologies and processes that will deliver the greatest impact.

"Water is the foundation of life and business," says Christophe Beck, Chairman and CEO of Ecolab. "Every breakthrough depends on water and the private sector has an incredible opportunity to reimagine how we manage this vital resource.

"Our partnership with CDP aims to be the catalyst for industrial water use transformation.

"By championing best-in-class operational water performance, companies can embark toward a future of meaningful growth and positive impact."

Data insights driving transformation

The Index uses CDP's existing database of corporate water disclosures, with more than 10,000 companies reporting their water use. It also incorporates Ecolab's insights from customer locations across 40 industries and 170 countries globally, as well as data from trade organisations.

By combining this data, the Index creates benchmarks for the "best-in-class" for each industry, allowing leading companies to be highlighted among peers. This comprehensive approach ensures that the benchmarks reflect real-world operational conditions across diverse geographical and industrial contexts.

The data-driven methodology enables companies to move beyond generic water management approaches to industry-specific solutions. This precision helps businesses implement strategies that are both practical and effective for their particular operational challenges.

Emilio Tenuta, SVP and Chief Sustainability Officer at Ecolab, says: "By combining CDP's leading disclosure data with Ecolab's industry water use expertise, we are giving companies a clear view of where they stand operationally compared to industry norms and best-in-class performance.

"Together with CDP, we are helping companies turn disclosure into action to drive performance, improve efficiency and lower costs."

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• Sustainability LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
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Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Advancing circular water systems

The Index also highlights the importance of water circularity, which is essential for industries with increasing manufacturing and digital infrastructure which demands more water. As much as 75% of manufacturing energy is linked to moving, heating and treating water, which means that better water performance can lower operational costs and improve product quality.

According to Ecolab, companies can reduce their freshwater footprint while building circular systems that strengthen operations and watershed health by improving their efficiency and scaling water reuse. Circular water systems allow businesses to treat and reuse water multiple times within their operations, significantly reducing their dependence on freshwater sources.

This approach not only addresses water scarcity but also reduces the energy costs associated with water treatment and transportation. Companies that invest in circular water systems often see improvements in both their environmental performance and their bottom line.

By adopting these systems, businesses contribute to watershed health in their local communities whilst building resilience against future water stress. This dual benefit makes circular water management a strategic priority for forward-thinking organisations.