Water crisis poses risks for F&D businesses

Reliable access to natural resources is of critical importance to governments, businesses and consumers, according to research by Euromonitor International.

The market research company has launched a new resource on natural resources and an accompanying white paper entitled ‘Sustainability and the New Normal for Natural Resources’.

In 2015, the World Economic Forum mentioned water crisis as the number one long term global threat. Still underestimated by many businesses, water risk is a very serious and complex issue which threatens wildlife, human access to clean water and continuation of business through shortage, flooding and pollution. A well managed water strategy, conversely, can help build a resilient business and a strong ethical brand image, the company says.

The research revealed:

• Many packaged food companies’ growth is increasingly reliant on water-stressed regions – India had the largest area harvested for cereals in 2015
• Soft drinks and beer record the highest absolute volume of water consumption and are highly vulnerable to water risk.

Sarah Boumphrey, global lead of economies and consumers at Euromonitor International, says, “Water stress and poor water stewardship can have a sizeable impact on profit and a huge impact on businesses’ reputation and operations. The most obviously affected sector is the food and drinks industry, where water is a key input. But many other sectors are also at risk, including apparel, energy and beauty and personal care.”