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Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction.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 Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Tyson Foods Inc (Tyson Foods) is a food processor and marketer of chicken, beef, and pork. The company is involved in breeding stock, feed production, processing, marketing, and transportation of chicken and related allied products.
In 2021, Tyson Foods withdrew 121.32 million cubic meters (million m3) of water, an increase of 4% over 2020. Water withdrawal by Tyson Foods was sourced from municipal and well water. Municipal water accounted for 88% of Tyson Foods’ total water withdrawal while the remaining were sourced from well water.
Tyson Foods discharged its water at three destinations - fresh surface water, irrigation, and publicly owned treatment facilities. In 2021, 44% of Tyson Foods’ total water discharge went into fresh surface water while 43% was discharged in irrigation.
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