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Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction.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 Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Mondelez International Inc (Mondelez) manufactures and markets food products and beverages. The company markets products under the Barni, belVita, Chips Ahoy, Club Social, Enjoy Life Foods, Cadbury Dairy Milk, 5 Star, Clorets, Halls, Maynards Bassetts, Sour Patch Kids, Stride, Trident, Philadelphia, Bournvita, and Tang brand names.
In 2021, Mondelez withdrew 10.28 million cubic meters of water, a decrease of around 0.5% over 2020, and reduced its absolute water use at priority sites by 6.4% compared to the 2018 baseline. The company launched a new 2025 goal to reduce its absolute water use at priority sites by 10% compared to the 2018 baseline.
Mondelez has taken measures that helped in reducing water consumption by the company. The company’s Fallingbostel site in Germany has 165 heat exchangers. By improving the maintenance program for these exchangers and implementing a system to detect defects, the team reduced the site’s water consumption by 60,000 cubic meters a year. At the Sheffield site in the UK, the team combined improvements in the jellies pump seals and in the flash vessel tank to reduce water and save energy. The site saved 10,950 cubic meters of water. The East Suzhou site in China implemented a modern wastewater recycling system that feeds the cooling towers. It not only reduced wastewater but also water consumption by 8,000 cubic meters.
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