Corporate Water Accounting: An Analysis of Methods and Tools for ...
Corporate Water Accounting: An Analysis of Methods and Tools for ...
Corporate Water Accounting: An Analysis of Methods and Tools for ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
14<br />
The role <strong>of</strong> water accounting in advancing<br />
sustainable water management<br />
Measurement <strong>of</strong><br />
<strong>Water</strong> Use <strong>and</strong><br />
Discharge<br />
External <strong>Water</strong> Resource Context & Data<br />
fits into it—is essential <strong>for</strong> companies<br />
seeking to reduce <strong>and</strong> mitigate water-related<br />
risks. Key components <strong>of</strong> this broader<br />
framework are:<br />
• External <strong>Water</strong> Resource Context <strong>and</strong><br />
Data: A foundational component <strong>of</strong> this<br />
framework is the real-world characteristics<br />
<strong>and</strong> conditions <strong>of</strong> the watersheds, ecosystems,<br />
communities, government, <strong>and</strong><br />
economy in which businesses exist.<br />
• <strong>Corporate</strong> <strong>Water</strong> <strong>Accounting</strong>: <strong>Accounting</strong><br />
allows companies to measure <strong>and</strong> underst<strong>and</strong><br />
the water systems in which their<br />
business <strong>and</strong> suppliers operate, as well as<br />
the volume, timing, location, <strong>and</strong> impacts<br />
<strong>of</strong> their water use <strong>and</strong> discharge. This provides<br />
a basis from which to plan strategically,<br />
assess management practices, track<br />
per<strong>for</strong>mance over time, <strong>and</strong> communicate<br />
with stakeholders.<br />
• Public Disclosure <strong>and</strong> Stakeholder Feedback:<br />
Once corporate water use <strong>and</strong> impacts<br />
are accounted <strong>for</strong>, companies disclose<br />
quantitative <strong>and</strong> qualitative in<strong>for</strong>mation to<br />
affected communities, investors, consumers,<br />
civil society, <strong>and</strong> other stakeholders.<br />
This allows stakeholders to evaluate companies’<br />
approaches to reducing impacts <strong>and</strong><br />
<strong>Corporate</strong> <strong>Water</strong> <strong>Accounting</strong><br />
Public Disclosure<br />
Stakeholder<br />
Feedback<br />
<strong>Corporate</strong> Management Practices<br />
(i.e. to reduce impacts <strong>and</strong> risks)<br />
<strong>Corporate</strong> <strong>Water</strong><br />
Stewardship<br />
Assessment <strong>of</strong><br />
Local <strong>Water</strong><br />
Resource Context<br />
Assessment <strong>of</strong> Impacts on<br />
<strong>Water</strong>sheds, Ecosystems,<br />
<strong>and</strong> Communities<br />
Stakeholder <strong>Water</strong><br />
Strategies &<br />
Practices<br />
Reality<br />
Internal<br />
analysis<br />
External<br />
feedback<br />
<strong>Corporate</strong><br />
response<br />
Organizational<br />
objective<br />
addressing risk <strong>and</strong> to hold companies accountable<br />
<strong>for</strong> their management practices.<br />
Stakeholder feedback in turn helps companies<br />
identify <strong>and</strong> prioritize material issues<br />
<strong>and</strong> improve the processes through which<br />
they mitigate negative impacts <strong>and</strong> thereby<br />
address water-related business risks.<br />
• <strong>Corporate</strong> <strong>Water</strong> Management <strong>and</strong> Stewardship:<br />
<strong>Accounting</strong> is intended to in<strong>for</strong>m<br />
more responsible <strong>and</strong> efficient corporate<br />
water management practices. Once these<br />
management responses successfully address<br />
negative impacts on ecosystems <strong>and</strong> communities,<br />
the company may be considered<br />
a good steward <strong>of</strong> water resources.<br />
• Stakeholder <strong>Water</strong> Practices <strong>and</strong> Strategies:<br />
<strong>Corporate</strong> water stewardship alone<br />
cannot ensure sustainable water management<br />
within a region. This component is<br />
comprised <strong>of</strong> all the players (i.e., communities,<br />
policymakers, water managers, <strong>and</strong><br />
other stakeholders) that must take action<br />
in order to move toward sustainable water<br />
management <strong>of</strong> a locality or watershed.<br />
• Sustainable <strong>Water</strong> Management: When<br />
companies <strong>and</strong> other stakeholders in a<br />
watershed are effectively <strong>and</strong> collectively<br />
implementing responsible water practices<br />
<strong>and</strong> managers prioritize needs (i.e., industrial,<br />
agricultural, municipal, <strong>and</strong> environmental)<br />
based on resource availability <strong>and</strong><br />
account <strong>for</strong> long-term risks (e.g., population<br />
growth <strong>and</strong> climate change), the<br />
system is positioned to reach a sustainable<br />
state—the overarching goal <strong>of</strong> corporate<br />
water stewardship <strong>and</strong> water management<br />
in general.<br />
While the primary focus <strong>of</strong> this analysis is<br />
on the water accounting component <strong>of</strong> this<br />
framework, we will touch upon some <strong>of</strong> these<br />
components described above. Specifically,<br />
we will consider the degree to which current<br />
water accounting methods <strong>and</strong> tools are<br />
positioned to address external stakeholders’<br />
water-related in<strong>for</strong>mation needs. We will also<br />
touch upon the emergence <strong>of</strong> corporate water<br />
stewardship approaches targeted at addressing<br />
water impacts, <strong>and</strong> evaluate the state <strong>of</strong><br />
water resource data that currently hampers<br />
the evolution <strong>of</strong> water accounting practice.<br />
Sustainable <strong>Water</strong> Policy & Management<br />
System<br />
objective