The Private Sector Must Address The Worsening Water Crisis
As summer heat waves linger, there’s one resource we all need for survival: water. Yet, for thousands of communities, that necessary relief is out of reach due to water shortages. Drought conditions are developing in the American Midwest. Parts of Mexico are in full drought while it experiences its hottest days in history. In my home country of India, tens of millions of people lack running water, and tens of thousands are suffering from heat stroke, with sometimes fatal consequences.
The water crisis is a humanitarian, economic and equity concern that disproportionately affects the most vulnerable. And while governments are absolutely responsible for addressing this problem, I believe businesses are, too.
The Water Crisis Is Global And Personal
If you can’t tell from the anecdotes above, the water crisis is deeply personal to me. I grew up in Chennai, India, one of the most vulnerable cities when it comes to water insecurity; in 2019, our reservoirs dried up, and in recent years, we have lost one-third of our wetland areas due to development projects. Communities all across India are experiencing similar problems. Although the country has 18% of the world’s population, it has just 4% of its water sources.
But these problems are not unique to India; they permeate all areas of the globe. Currently, 4 billion people live in water-scarce areas. And each 1° C increase caused by global warming is projected to result in an additional 7% of the population experiencing at least a 20% reduction in renewable water resources. We have absolutely everything to lose if we don’t take quick and aggressive action to sustainably manage and conserve this vital resource, and we need full participation and investment from businesses.
The Crucial Role Of Public-Private Partnerships
To be clear, public funds and government involvement will be crucial to fixing our water infrastructure. But the private sector is key to unlocking the funds, capacity to scale and infrastructure development needed to address this crisis.
The World Bank estimates that countries will need to almost triple their current expenditures to provide safe water around the planet. That’s a hefty price tag for local and federal governments. Investments from the private sector through public-private partnerships, especially in developing countries, are the most financially viable way to improve large-scale water distribution and treatment infrastructure.
Partnerships also expedite the research and development of water-saving technologies, like using AI for water management, desalination, rainwater harvesting and smart agriculture. A great example of this is the work being done at the International Finance Corporation (IFC), which has been critical to preparing, structuring and securing private financing for water projects in emerging markets around the world.
Where Companies Can Surpass Governments
Private companies also have the opportunity to surpass the public sector on water measurement at a granular level. Governments around the world, even those with the resources to do so, do a subpar job of tracking where their water is going. In the U.S., trillions of gallons of municipal water—up to 80% of the treated water supply—are lost before they reach the customer. That is an astounding statistic.
In the United States, the Environmental Protection Agency (EPA) limits its water scores only to multifamily housing, missing an opportunity to improve sustainability and leak detection in all other types of structures. In my view, this is unacceptable, as water networks are responsible for 135 million tons of CO2e emissions.
But with less red tape, corporations and organizations have the opportunity to track their water usage and waste in operations and throughout supply chains. Water audit solutions and emerging technologies allow business owners to access accurate and timely leak detection, and that’s just scratching the surface. Proper water submetering, incorporated into building management systems, can provide valuable input on cooling towers, irrigation and hot water use. These days, low-cost battery-operated water submeters report their data to plugged-in transceivers. There’s simply no reason not to use this technology for efficiency’s sake, measuring and scoring water to prevent leaks and blind spots.
A Call To Action For Businesses
Once these measurements are collected, I urge businesses to reassess their existing facilities and equipment to make water-efficient upgrades. In an office building, switching out older appliances for Energy Star-certified ones can save on all resources, including water. Facility managers can also upgrade landscape irrigation with rain detection or soil moisture sensors. For new buildings, hot water recirculating systems help guarantee energy efficiency.
Another triumph and continued opportunity for the private sector is innovation. The deployable technology in the water sector is nothing short of incredible. Solar panel condensation can be cleaned and filtered to create drinking water. Nanotechnology can be used to purify water. AI can be used to identify and monitor waterway health. Solutions are improving and developing daily thanks to healthy market competition.
This promising progress is why I remain cautiously optimistic that by working together and leveraging the power of the private sector, we can avoid a global water catastrophe. Those of us lucky enough to have access to an abundant supply of water must stop taking it for granted, or we won’t have the opportunity to do so much longer.