WASHINGTON (AP) — Major corporations in water-intensive industries, including clothing, food, beverage, and technology, are increasingly focused on being more responsible with the freshwater they use. This urgency has been intensified by the threat of drought, floods, and other extreme weather events caused by climate change. However, a recent analysis by sustainability nonprofit Ceres revealed that out of 72 companies assessed, very few are close to achieving their 2030 targets.
Ceres launched an initiative last year to encourage companies with large water footprints to take action in protecting water resources and addressing related financial risks. The analysis found that most of the assessed companies, including Coca-Cola, General Mills, and Amazon, have set targets but are not on track to meet them.
“There’s no doubt that companies need to do better,” said Kirsten James, senior program director for water at Ceres.
The companies in the analysis were selected from the clothing, food, beverage, and technology sectors based on factors such as size and their impact on water. They were evaluated on various criteria, including their commitments to protect the quantity and quality of water, as well as the ecosystems that supply it. The companies were also assessed on their efforts to improve access to water and sanitation in the communities where they operate. Ceres collected information from publicly available sources, including company filings and voluntary disclosures.
None of the companies scored above 70% of the available points, but almost a dozen were rated “On Track,” indicating that they have made progress towards their goals with scores of at least 50%. Coca-Cola, for example, stated that its water use in 2022 was 10% more efficient compared to 2015 and aims to achieve 100% circular water use at 175 locations by 2030. However, the company did not provide details on the likelihood of reaching the target or the progress made so far.
According to Michael Goltzman, vice president of Coca-Cola and a sustainability head, the main water footprint of the company lies in the agricultural ingredients it uses. He emphasized that these ingredients consume significantly more water than the actual manufacturing process.
The index was funded in part by the Coca-Cola Foundation but was not influenced by any of the companies evaluated. Tech companies like Amazon and Apple, which require large amounts of water for cooling data centers, have made less than 20% progress towards their goals. The report did not disclose individual companies’ performances on specific indicators.
General Mills, a food company, is among the leaders in meeting its water-related targets by achieving 65% progress towards its 2030 goals. Extreme weather events have affected the company’s sourcing of key ingredients, such as sugar beets impacted by freezing and thawing, and oats supply disrupted by drought.
Michael Kiparsky, director of the Wheeler Water Institute at the University of California, Berkeley, believes that companies reporting sustainability targets and mapping water use across supply chains is an essential step towards better water management. He also highlights the potential influence of corporate self-interest in protecting operations from water vulnerability.
Ceres plans to update its findings every two years, and the nonprofit hopes that these findings will encourage companies to take more significant steps in protecting freshwater resources.
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