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Corporate Water Accounting: An Analysis of Methods and Tools for ...

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36<br />

VI. <strong>Accounting</strong> <strong>for</strong> Industrial Effluent<br />

<strong>and</strong> <strong>Water</strong> Quality<br />

Though water quantity receives much <strong>of</strong><br />

the focus in the context <strong>of</strong> corporate water<br />

management practices <strong>and</strong> accounting, water<br />

quality is equally important to businesses<br />

both in terms <strong>of</strong> risk <strong>and</strong> impacts. Untreated<br />

or insufficiently treated water can lead to<br />

increased incidence <strong>of</strong> disease, damaged<br />

ecosystems, <strong>and</strong> the inability <strong>of</strong> the company<br />

<strong>and</strong> other users to use such water. Thus,<br />

companies have just as great a stake in accounting<br />

<strong>for</strong>—<strong>and</strong> addressing —their risk <strong>and</strong><br />

impacts associated with water quality as they<br />

do <strong>for</strong> water quantity issues.<br />

As discussed, accounting <strong>for</strong> water use/<br />

quantity can be quite complex <strong>and</strong> requires<br />

meshing a number <strong>of</strong> different factors in order<br />

to be credible <strong>and</strong> meaningful. That said,<br />

accounting <strong>for</strong> industrial effluent <strong>and</strong> related<br />

impacts on water resources is arguably even<br />

more complex <strong>and</strong> problematic. This complexity<br />

is due to many factors, including the<br />

various different types <strong>of</strong> pollutants coming<br />

from industrial facilities <strong>and</strong> agriculture (e.g.,<br />

phosphates, nitrates, mercury, lead, oils,<br />

sulfur, petrochemicals, undiluted corrosives,<br />

<strong>and</strong> hard metals, just to name a few); the<br />

interactions among pollutants; the variety <strong>of</strong><br />

ways water quality can be compromised (i.e.,<br />

contaminant loads, temperature, odor, turbidity),<br />

<strong>and</strong> the various approaches to accounting<br />

<strong>for</strong> the resulting impacts to ecosystems<br />

<strong>and</strong> communities.<br />

Measurable water quality characteristics<br />

can be grouped into three broad categories:<br />

• Physical characteristics (e.g., temperature,<br />

turbidity/light penetration, <strong>and</strong> flow<br />

velocity),<br />

• Chemical characteristics (e.g., pH, salinity,<br />

dissolved oxygen, nitrate, phosphate,<br />

biological oxygen dem<strong>and</strong> [BOD], toxics,<br />

chemical oxygen dem<strong>and</strong> [COD]); <strong>and</strong><br />

• Biological characteristics (e.g. abundance <strong>of</strong><br />

coli<strong>for</strong>m bacteria, zooplankton, <strong>and</strong> other<br />

organisms that serve as an indicator <strong>of</strong><br />

ecosystem health).<br />

Companies aiming to account <strong>for</strong> their water<br />

pollution <strong>and</strong> its effects on water quality<br />

must determine a range <strong>of</strong> factors including<br />

the volume <strong>of</strong> wastewater they discharge,<br />

the types <strong>and</strong> loads <strong>of</strong> pollutants within that<br />

wastewater, the short- <strong>and</strong> long-term effects<br />

<strong>of</strong> those pollutants on receiving waterways,<br />

<strong>and</strong> the impacts <strong>of</strong> those changes on human<br />

health, human access to safe water, <strong>and</strong> ecosystem<br />

function.<br />

Dilution <strong>Water</strong> <strong>and</strong><br />

the Gray <strong>Water</strong> Footprint<br />

Definition <strong>and</strong> Objectives<br />

<strong>Water</strong> footprints deal with industrial effluents<br />

<strong>and</strong> water quality exclusively within<br />

the “gray water” component. The gray WF is<br />

calculated as the volume <strong>of</strong> water that is required<br />

to dilute pollutants to such an extent<br />

that the quality <strong>of</strong> the water remains above<br />

agreed water quality st<strong>and</strong>ards. Whether this<br />

water is discharged back to surface or groundwater,<br />

it is considered “used” because it is<br />

unavailable <strong>for</strong> human use due to the fact<br />

that it is functioning in-stream as a dilution<br />

medium. For this reason, the gray WF is a<br />

theoretical volume, rather than a real volume<br />

as compared to the blue <strong>and</strong> green WF.<br />

The methodology <strong>for</strong> determining the<br />

gray WF is perhaps the least developed <strong>of</strong><br />

the three WF components. In fact, many<br />

corporate WF studies to date do not include a<br />

gray water component. Those that do include<br />

gray water have done so in different ways.<br />

However, they all utilize some permutation<br />

<strong>of</strong> the same basic equation that uses one<br />

water quality regulatory st<strong>and</strong>ard to calculate<br />

how much water is needed to dilute pollution<br />

to acceptable levels. Because companies<br />

almost always release more than one pollutant<br />

(<strong>and</strong> typically dozens) to waterways, the<br />

methodology requires the company to select<br />

the pollutant with the highest required dilution<br />

volume. In theory, this dilution volume<br />

will then be sufficient <strong>for</strong> all other pollutants<br />

discharged. This method also requires the<br />

company to identify the most appropriate<br />

regulatory st<strong>and</strong>ard <strong>for</strong> the relevant pollutant<br />

<strong>and</strong> location <strong>of</strong> the discharge.<br />

At the time <strong>of</strong> this writing, the authors<br />

were unaware <strong>of</strong> if <strong>and</strong> how the WF Decision<br />

Support System would address the gray WF<br />

on a watershed basis.

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