The discussion on Water Resource Management has gained momentum in the public and private sectors in recent years. The various scarcity events recorded in the Southeast region in 2014/2015, in the Northeast in the last 6 years and now in the Central-West are indicators of how environmental impacts, poor management and climate change can affect water availability for all sectors of society, rekindling the debate on the subject.
In Brazil, in particular, the problem in several reservoirs caused by the lack of rain and planning on water resource management has also brought the issue to the fore. This problem has an impact on production losses for companies, water rationing and water rationing for people, and electricity bills.
Report published by Valor Econômico highlights the disproportion between the great importance of water for companies' production and the little attention paid to it by the private sector. In this case, 48% of the companies said that the rationing in force during the period of scarcity seriously harmed their operations. However, more than half did not even set a target or estimate to reduce water consumption, a fact that was more evident among small and medium-sized companies.
It is important to make it clear that Water Resource Management goes far beyond simple rationing or saving. It involves mapping risks and opportunities that encompass the topic. This will make it possible to establish concrete metrics and objectives regarding the impact of water on the business's operations and finances.
For example:
- the importance of this management;
- how to carry out the process of identifying risks, opportunities and good practices;
- what your company can change;
- successful cases;
- project examples.
The current scenario: a reflection of poor management
O World Economic Forum (WEF), in 2015, elected water risk as the greatest threat to global society in the coming years. The problem is not exactly new. In addition to climate change, the main reasons are:
- Years of poor water and land use behavior;
- Accommodation with the false impression of abundance of water, which makes the cost of this asset well below what it should be;
- High level of waste and low investment in infrastructure;
- Lack of supervision regarding the proper use of water.
This scenario requires that solutions to control this imminent danger be adopted quickly by as many people and institutions as possible.
What is water risk?
Water risk can be defined as any risk related to the supply of water to meet population and business demand in the short and long term. The concept encompasses droughts or floods, low quality, impairment of aquatic systems and ecosystems, and the inability to meet local or global water demand – when reservoirs or natural sources are unable to meet the supply, for example.
This definition is based on the ideas of the international entity OECD – Organization for Economic Cooperation and Development. Understanding it is essential to develop effective water resources management plans and goals.
What can your company change?
Water security is essential for the sustainability of almost all businesses. Supply problems affect production, increase costs and even the loss of operating licenses. This is a problem with water usage, as poor management can impact compliance with legal standards and the public image of the organization.
Another piece of data that corroborates this line of reasoning is that 68% of those interviewed in the WEF survey identified themselves as being “exposed to water risk”. The number is even more substantial when we take into account that the survey interviewed professionals from 573 companies, holding US$60 trillion in assets in total.
A survey of São Paulo industry shows that the situation is not much different in Brazil. The data indicated that a possible water rationing would drastically affect the financial health of 29.5% of large companies.
As the market does not live on problems, but rather on solutions, many companies debate among themselves and with the public authorities measures to improve their performance in this regard.
Some water use optimization initiatives include:
- Drilling wells for water reuse;
- Investment in reuse techniques;
- Internal recirculation processes;
- Management and measurement of efficient water use in operations;
- Internal treatment of the water used;
- Development of joint mobilization plans to prepare investments and actions focused on saving water resources.
Some measures can, indeed, be adapted and applied internally. But it is always important to emphasize the importance of the engagement of all sectors of society.
In the case of internal changes, it is interesting to follow a step-by-step implementation process in management, as shown in the following graph:
But let's give a practical example: the Ambev case.
Case – Ambev
Ambev has been working for over 20 years to ensure water savings in its units. This work has led the organization to reduce water collection by 38% between 2002 and 2013, making it an international reference.
In addition to the internal adoption of good practices – reducing waste and including targets for the use of water resources – Ambev has formed partnerships aimed at preservation and conservation beyond its walls.
One example is the project to reuse effluents generated by Ambev in Maranhão by the Alumar refinery. In other words, the water that would otherwise be discharged into the region's river is pumped to an Alumar sedimentation pond to be reused. The engineering means that Alumar does not need to capture groundwater and reuses the effluent that would otherwise be discharged into the river.
The initiative reduced water discharge into the Pedrinhas River, one of the most important in the region, by 72%, resulting in a total of 500 million liters saved, equivalent to the monthly consumption of a city with 118,000 inhabitants.
To better understand the subject and the new proposals for water pricing and other ways to rethink the economic use of water resources, check out our post on Natural Infrastructure. The concept is changing the way we think economically about the use of natural resources and is a global trend.
Take the opportunity to also read our complete material on solutions for efficient water use in companies and opportunities for financial institutions!
