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  • Water, Biodiversity and Biotechnology, Climate, Energy and Sustainable Finance, Institutional

Is water a risk factor for your business?

  • Posted in 22/03/2023

More than 40% of Brazilian cities depend on vulnerable water sources, and reuse initiatives will be fundamental to guarantee water security

By Ricardo Mastroti*

Essential for life, water is also an indispensable input for business activities in the most diverse sectors.

In the face of worsening climate change and biodiversity loss, prolonged periods of drought and fluctuating rainfall levels have become more frequent and intense. This brings a new dynamic to risk management, and water security and water reuse are gaining prominence on the corporate agenda. 

According to the 2021 Water Atlas, from the National Water and Basic Sanitation Agency (ANA), 44% of Brazilian cities suffer from vulnerable water sources and 42% need investments in infrastructure to increase water production for consumption.

Essential for life, water is also an indispensable input for business activities in the most diverse sectors.

In the face of worsening climate change and biodiversity loss, prolonged periods of drought and fluctuating rainfall levels have become more frequent and intense. This brings a new dynamic to risk management, and water security and water reuse are gaining prominence on the corporate agenda. 

According to the 2021 Water Atlas, from the National Water and Basic Sanitation Agency (ANA), 44% of Brazilian cities suffer from vulnerable water sources and 42% need investments in infrastructure to increase water production for consumption.

Furthermore, according to ANA, 74 million people do not have access to water in sufficient quantity and quality to meet their needs. The agency indicates that the lack of adequate management of these resources could result in economic losses of R$1.518 billion in agriculture and industry.

The increase in investment in water for reuse also involves the application of fiscal, tax and financing incentives for sustainable government actions. After all, the expansion of treatment processes requires investment and, in a broader scenario, benefits the entire population, since it reduces the use of drinking water in industrial or agricultural activities.

What is already being done

Water reuse initiatives are already being promoted by the business sector. In the state of São Paulo, for example, we have the largest project of this type in South America, Aquapolo, a partnership between GS Inima and Sabesp.

Treated sewage is transformed into reused water for industries at the Capuava Petrochemical Complex in Mauá, Greater São Paulo. Up to a thousand liters per second of reused water are used instead of drinking water, a quantity capable of supplying a city with over 300,000 inhabitants, such as Palmas (TO) or Petrópolis (RJ).

In the mining sector, we have the recent partnership between Anglo American and Prumo Logística to reuse the effluent from the ore that arrives at the Port of Açu (RJ). The raw material, mixed with water, is transported through a 529 km pipeline from Conceição do Mato Dentro (MG) to the coast of Rio de Janeiro.

Treated sewage is transformed into reused water for industries at the Capuava Petrochemical Complex in Mauá, Greater São Paulo. Up to a thousand liters per second of reused water are used instead of drinking water, a quantity capable of supplying a city with over 300,000 inhabitants, such as Palmas (TO) or Petrópolis (RJ).

In the mining sector, we have the recent partnership between Anglo American and Prumo Logística to reuse the effluent from the ore that arrives at the Port of Açu (RJ). The raw material, mixed with water, is transported through a 529 km pipeline from Conceição do Mato Dentro (MG) to the coast of Rio de Janeiro.

Water security is therefore a central issue for business. The Brazilian Business Council for Sustainable Development (CEBDS) held a broad discussion among more than 80 companies from different sectors to identify gaps and opportunities to advance this issue.

The study found that encouraging water reuse is a fundamental aspect of companies' water security, but there are still gaps to be filled. The lack of regulation for its applications creates an environment of uncertainty for more robust investments.

These challenges and opportunities will be discussed by CEBDS, in partnership with the World Business Council for Sustainable Development (WBCSD), at the largest global water conference endorsed by the UN, the UN 2023 Water Conference, which will take place between March 22nd and 24th. 

In a scenario of climate emergency and increasingly extreme phenomena, water management needs urgent advances that will bring positive results for people, businesses and the planet.

* Ricardo Mastroti He is the executive director of CEBDS (Brazilian Business Council for Sustainable Development), an entity that brings together more than 100 companies, whose combined revenue is equivalent to almost 50% of Brazil's GDP. He is a biologist (USP), has a master's degree in oceanography (USP) and a master's degree in biomimetics (Arizona State University).

For the productive sector, it is important to define the main legal-administrative factors to encourage the institutionalization of the practice – and not impede its advances. 

There are isolated resolutions, and some states are further ahead than others. Therefore, the business sector is calling for national regulations that take into account the Brazilian reality with standards consistent with local differences in supply and demand and the inclusion of water for reuse in regional water matrices.

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