The corporate world of water has always been in need to curb the risks related to the water business such as water scarcity, flood, drought and other related water risks. It was recorded in the water report of the CDP in 2016 that $14 billion was lost by 607 water companies due to the risks mentioned.
The methods carried out by these companies to curb these risks often ignore the water issues of the local context, and would require that they create new generation of targets that would focus on the local context and be guided by science. This method would ensure that water is readily available in times of competition and water scarcity.
Four methods have been put together by the U.N. Global Compact CEO Water Mandate, CDP, the Nature Conservancy, WWF and the World Resource Institute. These four methods have been deemed effective for setting corporate water targets
Local Context - Water companies withdraw and discharge water from different. These locations, however, have impacts on the properties of the water. Proper analysis of these locations is to be carried out to know the economic, social and environmental impacts, and the respective dependencies and business risks of using this water. Considering these factors would determine the cost and other issues that might be faced, and the company would be able to determine how effective using that location as their source is.
The performance of a company is highly dependent on the local water basin which it is sourcing from.
Incorporating Science – science plays a great role on the conditions of a watershed and is a big criterion in creating a water target. Science reduces the risk of probability or errors in human decisions. It states plainly what needs to be done in certain situations, when it should be done and how it should be done. It is also a common language spoken by every country in the world and brings everyone to a common understanding of the properties of water and its basin, how it can be used, and the treatments required before it can be used as sustainable water.
Working with the Initiatives of the Private and Public Sector – the public sector and local basin initiatives have policies, and watersheds have to work with these initiatives and the policies they have set in order to maximize their gain and reduce the fines and levies gotten from breaching the policies. This compliance with the local policies would definitely build the trust of the private sector and stakeholders to invest.
Stakeholders – they are essential and crucial in setting water targets. Stakeholders such as farmers, civil society groups, local government, etc. help in diversification because every aspect of the business cannot be handled by one body.