Business risks rising as water grows more scarce
Over the next several years, businesses will face unprecedented challenges from natural resource price volatility and hidden costs caused by over-use. Outdated market structures exacerbate these issues by delaying investment in new technology and better infrastructure. With what little we know about the consequences of water scarcity, it is in an organization’s best interest to mitigate risks now and begin taking steps to reduce dependence on water. There are two ways to circumvent growing water challenges to ensure your company can grow in the future – invest in technology that eliminates water use and increase supply chain transparency.
Businesses will be forced to react to the consequences of poor natural resource management, despite the lack of data available describing the risk. Only recently has the industry started to shed light on the risks associated with water usage, and largely the consequences of our dependence on water remain largely unknown. However, we do know that archaic water contracts, aging infrastructure, and over-use leave some businesses spending substantially more on operations now; costs will continue to increase in the years to come. Businesses that rely heavily on agricultural inputs, such as the big players in the textile industry, will begin to experience constrained growth in the near term. In the United States, the lack of groundwater regulation in California means some farmers spend 800% more per acre-foot than last year to keep crop production operating. Price volatility looks like it will be the new norm.
Diminishing water resources and quality contain hidden costs for which few organizations are prepared. The market has not quantified the cost to businesses when water regulations are enacted. Nor has the market quantified the less tangible costs imposed by societal perceptions and expectations;society will place greater pressure on businesses not to consume precious resources in their local communities.
To ensure sustainable business growth in the future, companies should invest in water-less technologies and operations now. Companies can ensure even more resilient operations if they take ownership of their supply chains and encourage their partners to adopt water-less technologies as well. Firms should also work to encourage better resource management through local and regional governing bodies.
TERSUS Solutions delivers water-less technology to municipalities, high-tech manufacturing, and brand apparel companies with dedicated solutions for many aspects of their supply chain. Using liquid carbon dioxide, TERSUS Solutions treats raw fabric and processes technical garments to enhance garment performance and feel without using water. TERSUS processing also increases garment life by reducing the degradation of the raw fibers. Extending the life of garments decreases long-term demand for water in our target industries.
During World Water Week, feel free to reach out to us to learn more about what we do and how we’re working to decrease businesses’ dependency on limited water resources.