Pearl Waterless Car Wash - Counting the Cost of Water Scarcity

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Counting the Cost of Water Scarcity Since 2011,
companies around the world have spent more than
49bn to improve the way they conserve, manage or
obtain water, according to a new investigation
from the Financial Times In the first article of
a new series on the global threat of water
scarcity, FT environment correspondent Pilita
Clark looks how the marginal cost of water a
resource previously taken for granted is rising
for companies of all sizes. The report explains
how a growing, aspirational global population and
the impacts of climate change are straining water
supplies and forcing business to take
action.  From figures supplied by Global Water
Intelligence and data gathered from regulatory
disclosures and executive interviews, Clark
estimates spending has reached at least the tens
of billions in the last few years alone.
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She adds, however, that this number is neither
comprehensive nor easy to compare with past
spending levels, as companies are not required
to disclose such costs. Whatever the exact
figure, costs are rising in all sectors.   Some
examples listed in the article include
Coca-Colas 1.2 million investment in
conservation efforts to restore the River Nar.
The Nar is a narrow waterway near London that
supplies much of the sugar beet the company uses
for its products in the UK. Another is Rio Tinto
and BHP Billitons 1.75bn desalination scheme in
Chile, which will use treated seawater in their
shared copper mine, rather than exhausting local
water supplies. The ambitious project will need
to pump water 10,000 feet above sea level.
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The mining industry is one of the most exposed to
rising water costs, the report says. Its
collective spending on water is expected to
exceed 7bn this year. However, all sectors are
being affected water is needed for almost every
aspect of agriculture and energy production.
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Clark notes that the reasons for such investments
differ from company to company some are PR
exercises, some are required to meet new
regulatory standards. Whatever the reason,
concern over sustainable water use is growing
among investors and shareholders. The article
refers to the findings of the not-for-profit CDP,
which appeals to companies on behalf of investors
to disclose their environmental risks. Last year,
70 of the 180 FTSE Global 500 companies that
disclosed through CDP said water was a risk to
their business, up from 59 in 2011. However,
the water crisis risks much more than profits.
The investigation also digs out a 2012
intelligence report prepared for the US State
Department, which forecasts instability and
conflict in states that are rapidly drying out.
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Experts have already observed how water shortages
have acted as an instigator and been used as a
weapon in the current conflicts in Iraq and
Syria. Peter Brabeck, chairman of Nestlé, tells
the FT that the crisis is even more severe than
climate change.   Climate change will further
affect the water situation but even if the
climate wouldnt change, we have a water problem
and this water problem is much more urgent, he
said. Asking what can be done, Clark suggests
that it is ultimately down to policymakers and
legislators to solve the problem.
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Some dispute this. A recent report from the
Cambridge Institute for Sustainability
Leadership suggested that cooperation from
companies and stakeholders would be essential in
preserving the precious resource. Whatever the
right course, the message of Clarks article is
that action must be taken soon.
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