As water scarcity and sustainability become more urgent global concerns, companies are moving beyond traditional conservation efforts to embrace a Water Positive strategy. But what does it mean to be Water Positive, and what principles must a company follow to achieve this status?
In 2023, the World Health Organization and UNICEF reported that 2 billion people worldwide lacked access to safe drinking water. While only 10% of global water consumption is directly tied to human use, the remaining 90% is consumed by industry. An individual directly uses about 100 liters of water daily, yet their virtual water footprint—embedded in the products and services they consume—ranges between 3,000 and 5,000 liters per day in developed nations. The United Nations and the World Bank warn that by 2050, 3.9 billion people—40% of the global population—could face water scarcity or stress if action is not taken.
Industry plays a pivotal role in addressing this challenge. As the largest water consumer globally, it has the potential to drive impactful sustainability measures. The Water Positive framework allows companies to contribute actively to water sustainability by generating Volumetric Water Benefits, a method for implementing and valuing water stewardship activities—comparable to carbon credits in water resource management—by ensuring they return more freshwater to the environment than they consume. This presents a unique opportunity in water stewardship, recognizing that water is interconnected with all 17 Sustainable Development Goals (SDGs). Behind this opportunity lies a massive emerging market. If summarized in one phrase, it would be “Positive Impact on Water Resources.” However, to achieve this within a Water Positive strategy, companies, much like in the carbon market, must adhere to three fundamental principles: intentionality, additionality, and permanence, which we will explore next.
A Water Positive company is one that restores more water than it consumes across its entire operation and supply chain. This commitment goes beyond mere conservation efforts; it encompasses actively replenishing water sources, improving water availability, and ensuring that regional water ecosystems benefit from corporate activities. Achieving Water Positive status means implementing targeted strategies that reduce water footprints while simultaneously creating surplus water contributions to local and regional hydrological cycles.
This approach not only mitigates risks associated with water scarcity but also strengthens corporate resilience in the face of increasing global water challenges. Companies that aim to be Water Positive must consider a holistic approach that integrates efficiency, innovation, and sustainable partnerships. Their focus must extend beyond operational improvements to include meaningful contributions to local water resources, ensuring that their impact is both measurable and long-lasting.
By committing to Water Positive practices, businesses position themselves as proactive leaders in sustainability, setting a new standard for responsible water management. Their efforts serve as a model for how industries can transform water stewardship into an opportunity for positive environmental change.
Achieving Water Positive status requires a commitment to three essential principles:
A Water Positive initiative must be deliberate, ensuring that water sustainability is embedded within corporate strategy. This means setting defined goals, exceeding regulatory standards, and making water management an integral part of Environmental, Social, and Governance (ESG) policies. Clear commitments to international frameworks, such as the CEO Water Mandate, help align efforts with global best practices. Companies that incorporate intentionality into their strategies not only improve water outcomes but also reinforce their credibility as sustainability leaders.
A company’s water-positive efforts must result in tangible benefits that would not have occurred without its intervention. This concept, known as additionality, ensures that businesses contribute meaningfully rather than simply claiming credit for naturally occurring improvements. Actions such as restoring watersheds, investing in breakthrough water-saving technologies, and improving access to clean water for surrounding communities demonstrate true additionality. This principle prevents greenwashing and strengthens the authenticity of corporate sustainability claims.
For water benefits to be meaningful, they must be sustained over time rather than providing only short-term solutions. Companies can achieve permanence by forming long-term partnerships with water management authorities, implementing robust tracking and verification mechanisms, and securing financial commitments to maintain water-positive initiatives. Without permanence, water stewardship efforts risk being temporary and ineffective in addressing long-term water security challenges.
Becoming Water Positive requires a structured and holistic approach that integrates efficiency, replenishment, and accountability. Companies must first assess their water consumption, identifying areas for optimization and reduction. Investing in circular water management technologies, minimizing withdrawals, and maximizing reuse can significantly improve efficiency.
Beyond internal operations, businesses must actively restore and replenish water sources by engaging in conservation projects such as wetland restoration, groundwater recharge, and sustainable irrigation practices. It is crucial that companies replenish at least 100% of the water they withdraw, ensuring that their water usage is offset by equivalent or greater contributions to environmental water systems.
Companies can foster a positive impact on water resources through a range of initiatives designed to enhance efficiency, conservation, and sustainability.
Additionally, companies must consider the specific boundary conditions of each project and location, including drought thresholds, regulatory standards, and voluntary commitments each company adheres to. This dynamic scenario is further influenced by evolving policy frameworks. The proposed EU omnibus regulation aims to consolidate the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and EU Taxonomy into a single framework. This initiative seeks to reduce compliance burdens while enhancing economic competitiveness and regulatory clarity within Europe.
To maintain transparency and accountability, rigorous reporting and verification processes should be in place. Companies can disclose their water impact through sustainability reports, partner with third-party organizations for certification, and integrate water stewardship into their corporate governance frameworks.
Becoming a Water Positive company is more than a corporate responsibility—it is a strategic commitment to water sustainability that benefits both the environment and long-term business resilience. By embracing intentionality, additionality, and permanence, companies can make a lasting, measurable impact on global water resources. Beyond mitigating risks, this approach enhances brand reputation, strengthens investor confidence, and positions companies as pioneers in sustainable water stewardship in an increasingly water-stressed world.
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