Water is one of the critical factors of ESG (Environment, Social, and Governance). Fresh and clean water is increasingly endangered despite being considered a plentiful renewable resource mainly due to population growth and economic activity leading to an increase in water demands and pollution.
According to United Nations, if current consumption and production patterns do not change, there will be a 40% shortfall in water supply by 2030. Companies are expected to face increased scrutiny such as limits on water withdrawal and tight regulations over their water use as global water resources face increased stress.
Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction. Apparel and food & beverage industries are highly dependent on groundwater through supply chains. According to Aqua stat, 19% of global freshwater withdrawals come from industry and energy.
In terms of water withdrawal, the beverage and bottled mineral water sectors need to be careful because groundwater is a raw material for them. Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Asahi Group Holdings Ltd (Asahi Group) manufactures, markets, and sells alcoholic beverages, soft drinks, and food products. The company’s product portfolio includes whiskey, spirits, wine, beer, ready-to-drink (RTD) beverages, coffee, and tea, carbonated drinks, water, and fruit drinks. It also offers confectioneries, nutritional snacks, supplements, baby products, and freeze-dried foods.
In 2021, Asahi Group consumed 39,602 thousand cubic meters of water, an increase of 5.1% over 2020. 37% of the total water consumed by the Asahi Group was from the groundwater source.
The Asahi Group established a target of consuming 3.2 m3/kl of water or less at the factories of the Group’s companies that manufacture alcoholic beverages and soft drinks.
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