Many water-related business risks are caused by or exacerbated by unsustainable and inefficient operational water use, insufficient wastewater treatment, and water-intensive or polluting products. Companies typically have direct control over these elements of their business.

Many water-related business risks are caused by a lack of efficiency and sustainability in companies’ operations.

Companies that use water inefficiently will have high operational costs and be more susceptible to water scarcity and regulations limiting water use. Likewise, companies that do not treat their wastewater effluent will be more susceptible to water quality regulations and reputational damage caused by negative impacts to nearby ecosystems and communities. Furthermore, companies that create unsustainable and inefficient products are increasingly going out of favor among conscientious consumers.

Companies can significantly reduce their inherent company risk profiles by investing in technologies that improve efficiency of water use, the treatment of wastewater effluent, and the elimination of end-use pollution. They can also redesign their products to be cleaner and more resource efficient.