Navigating a Drier Future: Water Resilience & Strategic Planning

Over the past three posts, we've charted a course through the critical landscape of water in the drinks industry. We began by highlighting the escalating water crisis and its direct relevance to our sector. We then sailed into the agricultural supply chain, examining the vast embedded water footprint of our ingredients. Last week, we turned the focus in-house, exploring practical strategies for optimising water use within our production facilities.

For this last article in the series, we cast our eyes forward and look to the horizon. The trends we've discussed: increasing water scarcity, climate change impacts, and evolving regulations are not fleeting challenges; they are the defining characteristics of the future. Building long-term water resilience is no longer a responsible choice; it's a fundamental necessity for the survival and prosperity of any drinks business. This final article will explore the key elements of strategic water planning and summarise the core messages of our series.

Building Water Resilience: A Strategic Imperative

Water resilience is the ability of a business to withstand and adapt to water-related challenges; whether physical scarcity, regulatory changes, or reputational risks, while continuing to thrive. Achieving this requires a proactive, forward-thinking approach:

1. Comprehensive Water Risk Assessment:

   • This is the foundation of any resilient strategy. It involves identifying and evaluating water-related risks across your entire value chain:

     • Physical Risks: Current and projected water stress in your sourcing regions and operational locations. Consider drought frequency, intensity, and potential impacts on crop yields and water availability for your facilities. Tools like the WRI's Aqueduct can be invaluable here.

     • Regulatory Risks: Potential changes in abstraction licenses, discharge permits, water pricing, and other regulations at local, national, and international levels. Staying informed about policy developments is crucial.

     • Reputational Risks: The increasing scrutiny from consumers, investors, and NGOs regarding water use and environmental performance. Transparency and proactive management can mitigate these risks.

2. Setting Ambitious, Science-Informed Targets:

   • Once risks are understood, establish clear, measurable, and time-bound targets for water reduction and efficiency across your operations and supply chains. Consider aligning these with broader environmental goals and potentially with science-based targets related to water resources.

3. Investing in Long-Term Solutions:

   • Resilience requires more than short-term fixes. Strategic investments in water-efficient technologies, infrastructure for water recycling and reuse, and partnerships for sustainable agriculture are essential for long-term security.

4. Diversifying Water Sources (Where Sustainable):

   • For operations in water-stressed areas, exploring sustainable diversification of water sources may be necessary. This could include rainwater harvesting, treated effluent reuse (with appropriate safeguards and community consultation), or exploring the feasibility of alternative water supplies, always ensuring environmental sustainability is paramount.

5. Enhancing Water Governance & Collaboration:

   • Internally, establish clear roles and responsibilities for water management and foster a culture of water awareness among all employees. Externally, engage in collective action initiatives within your river basins or sourcing regions. Collaborating with other water users, local communities, and authorities can lead to more effective and sustainable water management at a broader scale.

6. Transparent Reporting & Communication:

   • Regularly track, measure, and report on your water performance, progress towards targets, and any challenges encountered. Transparency builds trust with stakeholders and demonstrates your commitment to responsible water stewardship. Consider using established reporting frameworks like CDP Water Security.

Our Series: A Look Back and Key Takeaways

Over the past four weeks, we've journeyed through the critical aspects of water stewardship for the drinks industry. Here's a recap of the key messages:

• Article 1: The Well Runs Dry? Why Water Demands Urgent Attention: We established that water is no longer an abundant, low-cost resource but a significant and growing risk. Climate change, increasing demand, and stricter regulations are creating a perfect storm of water insecurity that our industry cannot afford to ignore.

• Article 2: The Source of Sustainability: Water Stewardship in Our Agricultural Supply Chain: We highlighted that a substantial portion of our water footprint lies in agriculture. Collaborative partnerships with farmers to promote water-efficient practices, support soil health, and choose climate-appropriate crops are crucial for reducing this embedded impact and building supply chain resilience.

• Article 3: Turning on the Taps Wisely: Optimising Water Use in Drinks Production: We focused on practical strategies for measuring, reducing, and reusing water within our own production facilities. Implementing water audits, optimising cleaning and cooling systems, and investing in water recycling technologies offer significant environmental and economic benefits.

• Article 4: Navigating a Drier Future: Water Resilience, Strategic Planning & Our Series Conclusion: Today, we've emphasised the need for a long-term, strategic approach to water resilience. This involves comprehensive risk assessment, ambitious targets, sustained investment, collaborative governance, and transparent communication.

The Future is in Our Hands

Water is the lifeblood of our industry, and its future availability and quality are inextricably linked to our own. By embracing proactive water stewardship across our entire value chain, from the farm to the drinker, we can not only mitigate risks but also create a more sustainable, resilient, and responsible drinks sector for generations to come.

Thank you for joining us on this important exploration. At Avallen Solutions, we are committed to helping drinks businesses navigate the challenges and embrace the opportunities of a water-constrained world. If you're ready to chart your course towards water resilience, please get in touch.