Water scarcity is already a business risk. Unlike carbon, water impacts are intensely local - the same volume of water withdrawn from a stressed basin carries fundamentally different consequences than the same volume withdrawn where supply is abundant. A company that manages water only as a cost line is not managing water risk at all.
This framework treats water as a shared resource with shared responsibilities. It connects internal water use to basin-level health, supplier water practices, and community resilience - because operational continuity ultimately depends on the health of the wider water system, not just the pipe into the facility.
Most water risk is invisible until it becomes a crisis. The operating system is designed to make it visible, manageable, and improvable - before production stops or a licence to operate is challenged.
Water stewardship is not about using less water alone. It is about operating within sustainable water systems while protecting ecosystems, communities, and business continuity.
The five-layer water stewardship system. Governance sets direction. Basin mapping reveals exposure. Transformation pathways drive efficiency and restoration. The resilience loop at Layer 5 feeds back into strategy.
How the system is run across each layer - who does the work, how decisions are made, what tools are used, and how performance is measured.
| Layer | Who | How | What (tools & data) | Decisions | Performance |
|---|---|---|---|---|---|
| 1 · Water governance | |||||
| Water governance | Board, CEO, CFO, site operations leads | Annual strategy review; basin-level risk briefings | Water transition plan; CDP Water framework; TCFD | Board approves ambition; CEO allocates resilience budget | Water risk score by site; governance quality rating |
| 2 · Water system mapping | |||||
| Water system mapping | Sustainability, operations, EHS, procurement | Water accounting methodology; basin risk screening | Water accounting tools; WRI Aqueduct; ISO 14046 | CFO approves risk thresholds; operations defines priorities | Total water withdrawal (m³); water-stressed site count |
| 3 · Water transformation | |||||
| Water transformation | Engineering, operations, procurement, suppliers | Water efficiency audits; circular water system design | Water efficiency technology; supplier engagement tools | Operations approves process changes; capex committee funds | Water use intensity (m³/unit); recycled water rate (%) |
| 4 · Enablement systems | |||||
| Enablement systems | IT, finance, legal, basin partnership teams | Technology investment; basin collective action programmes | Digital water monitoring; basin partnership frameworks | CFO approves capital; board approves key partnerships | Technology deployment rate; partnership basin coverage |
| 5 · Resilience & performance | |||||
| Resilience & performance | External assurer, sustainability team, IR | Annual assurance; CDP Water disclosure cycle | MRV system; CDP Water; CSRD ESRS E3 | Board reviews assurance; CSO signs disclosures | % sites achieving water targets; CDP Water score |