Page 23 - Food&Drink March 2022

investors are now more than ever focused on
investment that leaves a positive mark.
Secondly, opportunities for efficiency, innovation and shared value
creation can be uncovered though a
sound ESG process. Crucially though, companies
can’t just report the good. They need to talk about the ‘not so good’ ESG issues they have – such as high levels of water risk – and provide solutions that address shortfalls and
give customers, employees, and shareholders confidence things are heading in the right direction.
BEING A STEWARD
While climate change and carbon emissions remain in focus, water is also becoming increasingly important to investors. If you have an interest or involvement with ESG or sustainability, you have probably heard or used the term ‘water stewardship’.
Dylan Waldhuetter from The Water Council says, “The importance of stewardship has been growing as the general public and large corporations alike realise the urgency of solving global water crises such as scarcity, flooding and poor quality.”
But do we really know what
‘water stewardship’ means? Water stewardship is not
water conservation, it isn’t water efficiency, and it isn’t traditional water management or even water quality. It is all these things and more.
Water stewardship is essentially sustainable management of the water catchment in collaboration with stakeholders.
The most widely used definition is enshrined in the International Water Stewardship standard, developed here in Australia, which says it is, “the use of water that is socially and culturally equitable, environmentally sustainable and economically beneficial, achieved through a stakeholder-inclusive process that includes both site and catchment-based actions”.
WHY STEWARDSHIP
IS IMPORTANT
Water is local. Water risk to business and communities can be centred around too much, too little, poor quality, deteriorating infrastructure, changing regulations or bad management.
It doesn’t make sense to adopt the same response across all catchments and water stewardship promotes local, appropriate responses to local issues. It compels the water steward to identify water issues that are most critical to them AND other stakeholders within the local context; so, it is meaningful.
Secondly, water is a bit like air, it is a shared resource and as such a plethora of diverse, sometimes conflicting stakeholders have a role to play. One entity cannot “fix” the issues alone and will need a framework to enable constructive collaboration. From there, a workable set of objectives and actions across sites and throughout the catchment can be developed.
This has been proven to be one of the best ways to gain a better understanding of local water risks and identify the opportunities to act collectively toward solutions.
ESG and water stewardship is worth doing properly. Sound ESG reporting systems require short-, medium-, and long-term goals with reportable timeframes that address material ESG issues.
Similarly, robust water stewardship frameworks and tools enable business to provide the data necessary for investors and other interested stakeholders to make direct comparisons regarding a company’s water stewardship performance and properly assess their water related risk.
These are necessary to avoid stakeholders inadvertently
“ Water stewardship is not water conservation, it isn’t water efficiency, and it isn’t traditional water management or even water quality.
It is all these things and more.”
HOW TO AVOID GREENWASHING RISKS ESG is facing the risks associated with greenwashing, and the misuse of the term water stewardship is also right up there.
If a water intensive business operating in a water scarce or high-water risk catchment uses ‘water stewardship’ to describe business as usual to shield attention from the real issues and risks, they are doing themselves and their shareholders a serious disservice.
The water stewardship standard provides investors with a better way to assess the processes and systems that companies have in place to ensure priority water risks are addressed across the value chain.
Like anything worth doing,
conflating statements of intent or water conservation targets with good ESG or water related performance.
Using robust, proven, and credible reporting frameworks such as the Global Reporting Initiative and internationally recognised standards like the Alliance for Water Stewardship Standard is critical if the pitfalls of greenwashing are to be avoided and the value of ESG and water stewardship done wellrecognised. ✷
✷ ABOUTTHEAUTHOR
SUSTAINABILITY
Julia Seddon is CEO of Cress Consulting, specialists in ESG, sustainability, climate and water risk. She is also chair of Water Stewardship Australia.
www.foodanddrinkbusiness.com.au | March 2022 | Food&Drink business | 23