World’s large corporates still releasing 80 per cent wastewater untreated in environment
Most of the world’s large corporations are not doing enough to address water pollution and a bulk of the wastewater being generated from their production units is still being released untreated, the Carbon Disclosure Project’s (CDP) 2019 Global Water Report has revealed.
More companies than ever are disclosing on water issues and seeing the benefits of their disclosure, but fewer than half of the disclosing companies measure and monitor water discharges, and only 12 per cent have set a pollution reduction target or goal.
The report presents an analysis of all companies that completed CDP’s water security questionnaire in 2019 – the 2433 companies that responded to a request through CDP from either their investors or their business customers. Whilst the number of disclosing companies increased again this year (2433 up from 2144 in 2018), more than 2,500 companies failed to meet investor or customer requests for data.
The report found that companies underestimate the risks related to water pollution, and only 10 per cent of reporting companies viewed pollution as a principal business risk.
CDP’s water security programme, now in its 10th year, supports companies to respond to stakeholder requests for increased transparency of water-related issues and incentivizes them to play their part in achieving water security for all. The report in 2019 was written on behalf of 525 investors with $96 trillion in assets.
According to CDP, about 80 per cent of wastewater is still released untreated. Pollution is prevalent on all continents and it is in the company’s best interest to address the problems: regulators, consumers, and some investors are increasing the pressure on companies to eliminate waste.
However, companies still underestimate the economic, ecological, health and social implications of water pollution, CDP found.
It pointed out that there are many opportunities for companies to seize the benefits of the transition to a water-secure future and identifies clear imperatives. A combined value at risk of $425 billion was reported through CDP in 2019 and this is considered to be an underestimate of all costs for all risks.
CDP reports that 329 more companies disclosed their water security data in 2019 than in 2018 but at least 2500 companies declined to provide data.
By monitoring water impacts, companies can better manage associated risks involving regulation, reputation and potential litigation. Reporting water impacts allows companies, investors and governments to make smarter decisions, while a boost to consumer and investor confidence may offer financial returns.
The report said double the number of companies are showing leadership on water issues; yet these companies are just the tip of the iceberg. Many companies seem to be unaware of their exposure to water risks and are failing to take basic steps such as monitoring and setting targets. Progress exists with some management indicators, but this is yet to turn into reduced impacts on the ground.
Also, it noted that the economic imperative to turn the world’s water crisis around is stronger than ever. The combined business value at risk reported in 2019 topped out at $425 billion. “Our analysis suggests that this figure may be an underestimate, however, as respondents failed to provide financial values for half of the risks they face”.
Companies may be blind to the risks and opportunities posed by water pollution, the report said. The World Bank warns of an “invisible” crisis of water quality profoundly affecting societies and economies. In response, governments globally are moving to ban toxic chemicals, from plastics to PFAS. However, just 10 per cent of respondents recognize water pollution as a top risk and most, in turn, may be missing opportunities to manage and gain related competitive advantages, it added.
“Companies in the food, textile, energy, industrial, chemicals, pharmaceuticals and mining sectors wield enormous influence over freshwater use and pollution globally. How these companies choose to grow will have a significant impact on freshwater resources. Their activities will make or break our ability to deliver a water-secure, zero-carbon future”, said CDP CEO Paul Simpson.
