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Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction.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 Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
The Hershey Co (Hershey) manufactures and distributes chocolate and non-chocolate confectionery. The company markets its products under various brands including Hershey’s, Reese’s, Kisses, Jolly Rancher, Whozeewhatzit, and Ice Breakers.
In 2021, Hershey withdrew 4.85 million cubic meters of water, a decrease of 10.4% annually. In 2021, Hershey’s total water discharge was 4.1 million cubic meters of water, and it withdrew 54% of its total water from groundwater in 2020. Water withdrawn by the company is obtained mainly from surface water, groundwater, and municipal water with surface water providing 46% of water and groundwater providing 54% during the same year.
In addition to driving water efficiency in manufacturing, they are exploring agricultural solutions that protect and enhance water resources.
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