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Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction.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 Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Water withdrawal by companies means freshwater taken from the ground, surface, or other water sources, permanently or temporarily for use in products. Associated British Foods, Nestle, Essity, Heineken, and Danone were major European companies with significant water withdrawal in 2021
Associated British Foods is a diversified food processing and retail group. In 2021, Associated British Foods withdrew 864 million cubic meters of water, an increase of 2% over 2020, and reused 25% of the total water withdrawn in the same year.
Nestle is a manufacturer and marketer of food products and beverages. In 2021, Nestle withdrew 98 million cubic meters of water, a decrease of 15% over 2020.
Essity, formerly Essity Aktiebolag, is a manufacturer, producer, and seller of consumer tissue, personal care, and professional hygiene products. In 2021, Essity withdrew 95 million cubic meters of water, an increase of 1% annually. Water withdrawn by the company is obtained mainly from surface water, groundwater, and municipal water with surface water providing 75% of water and groundwater providing 18% during the same year.
Heineken and Danone were among the leading European companies with significant water withdrawal in 2021 with 90 million cubic meters and 68 million cubic meters of water withdrawn, respectively.
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