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Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction.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 Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Keurig Dr Pepper Inc (KDP) is a manufacturer and distributor of non-alcoholic beverages. The company’s product portfolio includes coffees, carbonated soft drinks, ready-to-drink tea, water, juices, juice drinks and mixers, among others. It markets its products under brands such as Dr Pepper, Snapple, Keurig, Green Mountain, Donut Shop, Laughing Man, Van Houtte, REVV, and Mott's.
In 2021, Keurig Dr Pepper withdrew 13.36 million cubic meters of water, an increase of 1.4% over 2020. The total water consumed by Keurig Dr Pepper in 2021 was 7.46 million cubic meters which increased by 0.8% over the previous year. Of the total water withdrawal in 2021, 79% was from municipal sources and 21% from groundwater sources. During the same year, Keurig Dr Pepper’s total water discharge was 5.89 million cubic meters of water.
During 2021, the company improved the efficiency of its water use and required 1.82 liters of water per liter of the final product, a 7%improvement in the water use ratio from its baseline (2017).
Keurig Dr Pepper aims to improve its water use efficiency by 20% by 2025 and partner with its highest water-risk operating communities to replenish 100% of the water used in its beverages in those communities by 2030.
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