Dear John,
Most food companies are not taking the necessary action to reduce their demands and impacts on freshwater resources in the midst of the growing global water crisis, according to our newest benchmarking report, Feeding Ourselves Thirsty.
The fact is, the $6 trillion food industry is uniquely vulnerable to the water crisis. Growing, processing and packaging food consumes more than 70% of the world’s increasingly strained water resources. And climate change is only adding to the speed and scale of the growing water crisis. Without proper management and disclosure of water-related risks, food companies in particular face enormous financial and reputational risks.
Our newest report, Feeding Ourselves Thirsty, evaluated 38 top food companies in 4 industries with the highest exposure to water risks: Agricultural Products, Beverages, Meat, and Packaged Foods. And while the report shows some encouraging signs of progress on corporate water management, it underscores that much more work needs to be done to ensure sustainable water supplies now and in the future. |
On the positive side, there has been improvement from some companies in key areas including board oversight of water risks and strategies, establishment of water use or efficiency targets for operations, as well as assessment of water risks beyond just their facilities to the agricultural supply chains. And some of the most improved companies are recognizing that smart water management is a business imperative.
But overall, Ceres’ analysis found that companies do not have adequate practices in place across categories of water management, including governance structures, risk assessment, target setting and implementation actions. In fact, less than half of the companies performed robust water risk assessments (inclusive of water quality) that focus on their agricultural supply chains. And only a handful of companies have implemented water use reduction targets or provided support for farmers for high-stress water basins in their supply chains.
|
The report comes on the heels of new dire predictions from the Intergovernmental Panel on Climate Change that forecast even more intense water stress than previously predicted. If food companies want to succeed in an increasingly water-stressed world, it's time for them to build a new paradigm around the real value of water. And it is up to investors to hold companies accountable to high standards when it comes to protecting our precious water resources.
As world leaders convene next week for the global climate talks in Glasgow, it is imperative that they also tackle the water crisis along with climate change.
|
Thank you,
 |
|
Beth Hooker, Ph.D.
Senior Manager,
Water and Agriculture Resilience
Ceres
@BethHooker2 | |
P.S. Also be sure to join me for a webinar on Tuesday, November 16th
to explore the results of Ceres’ 2021 Feeding Ourselves Thirsty Benchmark report.
|
