Investing in Sanitation and Water Is a Need for Businesses
General Overview
Worldwide water scarcity is one of the most pressing global issues, as evidenced by the World Bank’s map above depicting the fraction of the population that has access to safe drinking water. Few countries have access to safe drinking water. A safe drinking water source, such as piped water, boreholes, tubewells, protected dug wells with protected springs, and packaged or delivered water, is available in most developed nations, but not in the majority of developing countries.
Data for most developing countries is not accessible, thus this research is restricted to the limited information that is available. Around 71 % of the world’s population (5.3 billion people) relied on a clean drinking water supply in 2017, while more than 2.3 billion people were without it. In order to save future generations, we need to pay attention to the 2.3 billion people.
Given the enormous number of people who do not have access to clean water, and predictions from experts that it will only get worse in the future, companies need to start working on solving this now. The lack of clean water in most underdeveloped nations has led to cholera, hepatitis, and diarrhea. As a result, efficiency is lost and people become unwell, which has a detrimental impact on the economy. Not only is a person’s health at stake, but also their whole well-being, including their education. In fact, women and girls are more likely than boys to be the principal water carriers in their households. Because of this, women may be unable to complete their education, which hurts the economy. Furthermore, because women raise their children and make up half of the working population, a woman’s education is critical to the economy, and the water crisis directly affects both women and the country.
Role of Private Organizations and Financial Institutions
The vast majority of companies have already started working on a healthy workforce and trying to become more sustainable as part of their corporate social responsibility. Also, a growing number of investors and stakeholders are focusing more on the company’s future success than its present performance due to their desire to make investments in future companies. Most industries, with the exception of the financial industry, consume a large quantity of freshwater each day. When it comes to investing in green firms, financial institutions have a critical role to play. Financial institutions now lend more money to green and sustainable companies than those that aren’t.
So why would a financial institution invest in something that doesn’t give a rapid return?
1. Over time, social and environmental norms tighten, such as carbon price legislation. There is a deterrent effect on financial institutions which lend money to unsustainable or environmentally unfriendly companies in the long term.
2. In addition to the financial rewards, today’s investors and stakeholders anticipate that future sustainable firms will provide them with a return and ensure the safety of the investment they made.
3. Corporate social responsibility also plays a pivotal role. Brand value, consumer satisfaction, and efficiency are all enhanced when you invest in sustainable practices and products.
In light of this, let’s focus our efforts on developing sustainable water businesses in order to conserve fresh drinking water for marginalized communities and ensure that current and future generations will have access to water.
Sustainable Water Business
Water is used extensively in many industries, including fashion, agriculture, refineries, paper, and automobiles. Because the economy is circular and interdependent, even a minor downturn in one of the industries would cause the entire economy to collapse. In addition to this, businesses consume a large amount of fresh water in an unsustainable manner, limiting public access, and this is one factor that must be addressed.
In terms of safe access to water, despite the fact that the earth is covered in water, only 3% of it is fresh, and most of it is frozen in glaciers, leaving less than 1% for us. Given the high demand for water and limited supply, businesses must act now, as this is something that will be treated more like oil in the future. Almost 70% of water is used in agriculture, which is the most important sector, followed by 19% in industry, and the remainder in households. Access to clean, accessible water will be a major concern in the future, and investments in this field will benefit not only the investor but the entire human race.
Let me provide some additional business motivation. From raw materials to consumer use, businesses rely on the value chain. Let’s talk about the value chain in the apparel industry. Processing raw materials are part of the clothing value chain. This includes sourcing fibers for fabrics made through the spinning, knitting, and weaving processes. Then there are the suppliers and operations, and finally, there are the customers who use it. Water, fuel, and a variety of chemicals are used extensively throughout the value chain. If not used responsibly, it will produce a lot of waste and pollution, as well as negative externalities.
Dealing with waste has hidden costs for businesses, and it also has a detrimental impact on the environment and the economy. To deal with all of these externalities, businesses would raise their operating costs. The company might save a lot of money if it used sustainable techniques, such as reusing the majority of its resources. In addition to this, textiles are also tied to agriculture, and agriculture consumes 70% of all water indicated above. Cotton makes more than half of all clothing, and the amount of water it consumes will surprise you.
To create a pair of jeans, it is believed that more than 3500 liters of water are required. That’s a lot. Let’s suppose that a person drinks 2 liters of water per day, which means that 3500 liters of water can be drunk by a person for at least 4–5 years. We need to optimize each value-chain component of the garment business by reusing water and eliminating waste that results in negative externalities to reduce costs. The fact that taxes are going up, and regulations are tightening every day because of climate change goals, means that it’s time for businesses to think about this.
Some of the business use cases are extremely important given extreme water crises:
1. Clean Water Monitoring Systems
It’s time to put artificial intelligence to work towards a sustainable future instead of a glitzy one. Internet of Things, combined with artificial intelligence (AI) and machine learning, allows the system to determine whether or not the water is safe to drink. It has the ability to detect germs and harmful particles. On this project, researchers have already started using deep learning to detect water contamination. In addition to identifying water contamination, a water filtering mechanism can be used to repurpose water and optimize a large number of processes. It’s time for investors to give this some thought.
2. Smart Agriculture
As agriculture consumes a large amount of water, so do businesses. It is the most important sector of the economy, and without it, humans cannot survive. In many developing nations, water scarcity has impacted agriculture productivity, resulting in a food crisis. Investors might consider investing in water storage systems. Improved water management systems and water distribution systems must be implemented by businesses in order to increase the efficiency and productivity of water use in agriculture.
3. Water Sanitation and Water Treatment
Since water conservation is a top priority, this is a must-do. Pani, a cloud-based AI platform that optimizes water treatment programs to minimize costs and increase water sustainability, is one of the startups in this field. In order to rescue our future generations, we must focus on this.
4. Optimizations in Textile Industry
The company must consider how to best utilize resources to reduce waste and avoid hidden and operational costs. One recent Dutch business has created a dyeing procedure that uses carbon dioxide instead of water in the dying process, removing the need for water in the textile industry. Various leading companies have promoted this technique, according to the company study, including Nike, which just produced a new polo t-shirt dyed without water. We could save enough water for each person for a decade or longer if the entire textile business adopted sustainable techniques.
Conclusion
When it comes down to it, our economy may collapse if private companies don’t begin to think about water. The importance of this effort cannot be overstated, as water is the driving force behind any company’s existence. There would be no way for financial institutions to function without water. Businesses must work together with local residents, government, and non-governmental organizations to address this issue. Saving water and optimizing business processes will allow people to have access to safe drinking water.
For the sake of humanity, now is the moment to think about this issue, and the use of technology must be concentrated in this area.
