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Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction.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 Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Imperial Brands Plc (Imperial Brands) is a manufacturer, marketer, distributor, and seller of a wide range of tobacco and related products. The company markets its products under various brands such as JPS, Parker & Simpson, West, Davidoff, Winston, blu, Knox, Montecristo, Pulze, Gauloises, iD, and Skruf.
In 2021, Imperial Brands consumed 1.11 million cubic meters of water, a decrease of 7% over 2020. Water consumption in Imperial Brands’ operations reduced by 24% since 2017. Water consumed by the tobacco company is obtained mainly from Mains, Groundwater, and Rainwater with Mains providing 74.2% of water consumed by Imperial Brands and Groundwater providing 25.7% in 2021.
Imperial Brands has a target to reduce water consumption by 15% by 2030.
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