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Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction.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 Aquastat, 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 Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Danone SA (Danone) is a manufacturer and producer of dairy and nutritional products. The company offers fresh dairy products, bottled water, early life nutrition, and medical nutrition products. The company markets its products under the Danone, Activia, Evian, Volvic, Aqua, Gallia, Actimel, Nutricia, and Bledina brand names.
In 2021, Danone withdrew 67.7 million cubic meters of water. Water withdrawn by the company is obtained mainly from groundwater, municipal water, and surface water with groundwater providing 42.5 million cubic meters of water (63% of total water withdrawal) and municipal water providing 22.5 million cubic meters of water (33% of total water withdrawal) during the same year.
A total of 38.6 million cubic meters of water were consumed by Danone in the production process in 2021. 73% of clean wastewater was returned to nature by the food company in the same year.
Danone has set a target to reduce, reuse, recycle, and reclaim 100% of water withdrawn by 2030.
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