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 ...
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44<br />
VIII: Data Limitations<br />
<strong>Water</strong> accounting methodologies use data as<br />
inputs that serve as the basis <strong>of</strong> their analyses.<br />
Input data can describe corporate water<br />
use <strong>and</strong> discharge or the local water resource<br />
context (e.g., local water availability, access<br />
to water, etc.). Which types <strong>of</strong> data are used,<br />
<strong>and</strong> at what resolution, are key components<br />
in determining <strong>for</strong> what applications each<br />
methodology is most useful. Further, the data<br />
generated by the databases imbedded with<br />
these various corporate water accounting<br />
methodologies are <strong>of</strong> key importance to their<br />
overall effectiveness. However, data can be,<br />
<strong>and</strong> <strong>of</strong>ten are, quite lacking in many different<br />
regards. Indeed, at present, insufficient data<br />
is one <strong>of</strong> the biggest limitations to meaningful<br />
water accounting, <strong>and</strong> there<strong>for</strong>e companies’<br />
underst<strong>and</strong>ing <strong>of</strong> their water-related<br />
risks <strong>and</strong> impacts. This section will explore<br />
three different types <strong>of</strong> data-limitations issues<br />
in water accounting, as well as the implications<br />
<strong>of</strong> these limitations on a company’s<br />
ability to derive meaningful results. These<br />
three types <strong>of</strong> limitations are:<br />
• Inadequate databases<br />
• Lack <strong>of</strong> access to data<br />
• Insufficient granularity <strong>of</strong> data<br />
Inadequate databases<br />
<strong>Water</strong> footprinting <strong>and</strong> LCA <strong>of</strong>ten use pre-existing<br />
databases in order to in<strong>for</strong>m or supplement<br />
their analyses. Both methods depend on<br />
databases <strong>of</strong> average water uses when direct<br />
data are unavailable. For instance, companies<br />
<strong>of</strong>ten use databases that include the average<br />
amount <strong>of</strong> water needed to grow a certain<br />
type <strong>of</strong> crop (<strong>and</strong> <strong>of</strong>ten specified by irrigation<br />
type), <strong>and</strong> to a lesser extent the average<br />
amount used <strong>for</strong> a particular manufacturing<br />
process, if they do not have the money or<br />
time to measure such water use directly. The<br />
most common databases <strong>for</strong> evapotranspiration<br />
<strong>and</strong> crop growth are the EPIC model <strong>and</strong><br />
the FAO’s CROPWAT model. LCA also uses<br />
databases as a way to underst<strong>and</strong> the local<br />
water resource context. Perhaps most commonly,<br />
LCA uses global water stress indexes<br />
that include the approximate amount <strong>of</strong><br />
water available in many different locations<br />
around the world.<br />
However, as <strong>of</strong> now, these databases are<br />
in almost all cases insufficient or could use<br />
improvement. Databases used to estimate<br />
averages are typically simply not available.<br />
When they are available, they are <strong>of</strong>ten not<br />
specific enough (e.g., average crop water<br />
use but not specified by irrigation type or<br />
climate type). Furthermore, the use <strong>of</strong> such<br />
databases would not reveal if a company or<br />
facility was particularly efficient or wasteful<br />
in any particular area (compared to averages)<br />
<strong>and</strong> there<strong>for</strong>e would not be useful in identifying<br />
areas <strong>for</strong> improvement that could be<br />
addressed relatively easily <strong>and</strong> result in high<br />
water savings. Databases used to underst<strong>and</strong><br />
the local water resource context are more<br />
commonly available, yet are <strong>of</strong>ten available<br />
only at the national level <strong>and</strong> <strong>of</strong>ten use methodologies<br />
that can be misleading. Nationallevel<br />
data on water stress is <strong>of</strong>ten not useful<br />
because many nations have watersheds with<br />
drastically different water availability (e.g.,<br />
the American Southwest <strong>and</strong> Pacific Northwest<br />
regions <strong>of</strong> the United States). The most<br />
common indicator <strong>for</strong> water stress is simply<br />
the volume <strong>of</strong> physically available water per<br />
capita. However, this measure obscures the<br />
potential <strong>for</strong> limited access to water due to<br />
economic problems, a governance deficit, or<br />
inadequate infrastructure.<br />
Lack <strong>of</strong> access to data <strong>and</strong> databases<br />
Companies <strong>of</strong>ten do not have access to<br />
the data necessary to conduct meaningful<br />
analyses <strong>of</strong> their water use <strong>and</strong> discharge.<br />
This can be due to inadequate internal <strong>and</strong><br />
supplier measurement practices, insufficient<br />
data collection <strong>of</strong> external conditions by the<br />
appropriate parties, or databases <strong>of</strong> external<br />
conditions that are not publicly available due<br />
to political reasons.<br />
Companies, particularly SMEs, do not have<br />
the infrastructure, employees, or systems<br />
in place to regularly <strong>and</strong> comprehensively<br />
collect their water use <strong>and</strong> discharge data.<br />
This can be due to financial limitations, lack<br />
<strong>of</strong> technical expertise, or the fact that until<br />
recently accounting <strong>for</strong> water use has been<br />
relatively low on companies’ list <strong>of</strong> strategic<br />
concerns <strong>and</strong> there<strong>for</strong>e companies have<br />
not implemented effective data collection<br />
systems. In order to underst<strong>and</strong> their waterrelated<br />
risks, companies must invest in their<br />
capacity to conduct assessments <strong>of</strong> their<br />
water use <strong>and</strong> discharge, as well as the status