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Threats to water security and how
pharma companies can miigate risk
Robert C. Brears is an RL Expert on Water and First, pharmaceuical companies need to Rapid economic growth: rapid economic growth
Sustainability and an Associate Fellow at the understand the concept of physical and ecological in emerging markets will see a signiicant increase
Free University of Berlin. He specializes in water footprints: the physical footprint is the percentage in the percentage of water resources used by
security, corporate water risk in global supply of the Earth’s surface their manufacturing plants industry: in low-to-middle income countries,
chains and transiioning towards water security are built on (the direct operaions) while a industry typically accounts for around 10 percent
and sustainability.
pharmaceuical company’s ecological footprint of total water withdrawals; however, this rises to
is the geographical area in which their suppliers nearly 60 percent for high-income countries.
By 2030, global demand for water will outstrip (of goods or services) are located in – (their
supply by 40 percent. The World Economic Forum’s indirect operaions). Therefore, pharmaceuical Increased energy demand: world energy
annual Global Risks report ranks the water supply companies are exposed to water insecurity consumpion will grow by 56 percent between
crisis as a top 3 global risk: globally, individuals through both their direct and indirect operaions.
2010 and 2040 with most of this growth in non-
and communiies are experiencing water scarcity, OECD countries. This trend will result in increased
or water insecurity, which is the inability of Second, every pharmaceuical company needs demand for water for the producion of electricity.
users to access, sustainably, good quality water to understand the global mega-trends that
of suicient quanity necessary for human well- impact water security of all users including Increased food demand: currently, the world’s
being and socio-economic development.
pharmaceuical companies directly and indirectly.
populaion is 7.2 billion. This will increase to 8.1
billion in 2025, 9.6 billion in 2050 and 10.9 billion in
The pharmaceuical industry is not immune to These mega-trends include:
2100. Currently, agricultural producion accounts
the risks of water insecurity; as pharmaceuical for 79 percent of water withdrawals, but this is
companies require consistent access to supplies Rapid urbanisaion: currently 50 percent of the expected to increase by 75-100 percent over the
of high quality water necessary for the producion world’s populaion is being urbanized. By 2050 next half-century.
of prescripion medicines, over-the-counter this will rise to 75 percent, increasing demand
therapeuic drugs and veterinary drugs.
for water resources. In addiion, water quality Climate change: climate change will likely increase
is threatened by land-use changes that degrade the frequency and magnitude of loods and
So how can pharmaceuical companies achieve ecosystems, point source polluion from industrial droughts. Speciically, looding will decrease
water security and reduce the risks associated and domesic waste, and non-point source the availability of good quality water due to
with water insecurity?
polluion from organic and inorganic chemicals.
the contaminaion of surface and ground water
supplies. Addiionally, droughts will decrease
the quanity of water available, while increasing
demand for water for cooling and drinking.
Third, pharmaceuical companies need to
understand how their manufacturing processes
can impact the water security of other users.
Pharmaceuicals can be introduced into ground
and surface water through sewage, which carries
the excreta of individuals and paients who have
used these chemicals, from uncontrolled drug
disposal (e.g. discarding drugs into toilets) and
from agricultural runof comprising livestock
manure. As such, the World Health Organizaion
has declared pharmaceuicals to be ‘’chemicals of
emerging concern’’ to the public because of their
potenial to reach drinking-water supplies.
If pharmaceuical companies do not address
water security overall, they could be exposed
om
to numerous risks, including inancial, liigatory, s.c
res
physical, regulatory, reputaional, strategic and oxp
technological risks.
hot
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20 INSIGHT