Member AUM
$70 trillion

Water Use & Scarcity

Assessing Management and Performance on Water Scarcity

KPI 

Scope 

Key Principles 

Sub-KPIs 

Best Practice 

Water use & scarcity in facilities 

Feed,

Farm,

Slaughter,

Processing

We assess whether a company understands and is managing its exposure to water scarcity risks, has identified and disclosed high-risk locations, set time-bound targets for water consumption, and withdrawals and discloses progress against these. Disclosure of water withdrawals and consumption by source and stress level and water-related CAPEX and OPEX. 

Monitoring water consumption and withdrawals. 

Target to reduce water consumption and withdrawals. 

Disclosure and performance of water risks in facilities. 

Best Practice is awarded when a company understands and is managing its exposure to water scarcity risks, has processing facilities in areas of low water stress, has identified and disclosed high-risk locations, has set risk-differentiated targets for water consumption and withdrawals, conducts a water risk assessment every two years and discloses progress against these. The company also discloses water withdrawals and consumption by source and stress level and water-related CAPEX and OPEX. 

Water use & scarcity in feed farming 

Feed,

Farm,

Slaughter,

Processing

We assess whether a company understands and is managing its exposure to water scarcity risks faced by feed suppliers, has identified high-risk locations and the measures taken to engage suppliers to manage water scarcity risks, is transparent about the proportion of feed sourced from water-stressed areas and feed composition and invests in sustainable feed innovation. 

Supplier engagement in water use in feed farming. 

Disclosure of water risks in feed farming. 

Best Practice is awarded when a company understands and is managing its exposure to water scarcity risks faced by feed suppliers, has identified high-risk locations and the measures taken to engage suppliers to manage water scarcity risks, discloses feed water intensity, is transparent about the proportion of feed sourced from water-stressed areas and feed composition, and invests in sustainable feed innovation. 

Water use & scarcity in animal farming 

Feed,

Farm,

Slaughter,

Processing

We assess whether a company understands and is managing its exposure to water scarcity risks faced by animal farming operations/suppliers across all proteins, has disclosed animal protein commodities produced and sourced in water-stressed areas and taken measures to engage operations/suppliers to manage water scarcity risks. 

Supplier engagement in water use in animal farming. 

Disclosure of water risks in animal farming. 

Best Practice is awarded when a company understands and is managing its exposure to water scarcity risks faced by animal farming operations/suppliers across all proteins, has disclosed animal protein commodities produced and sourced in water-stressed areas and taken measures to engage operations/suppliers to manage water scarcity risks. 


Water Use & Scarcity 2023 Changes

KPI 

Summary of Change 

Water use and scarcity in processing facilities 

Companies that conduct a water risk assessment and disclose that they only have processing facilities in areas of low-water stress will not be assessed in this KPI. 

Water use and scarcity in feed farming 

Instead of disclosing the proportion of feed ingredients by percentage, companies are now required to disclose the water intensity of feed. We changed this question as a request from multiple companies that flagged that disclosing feed ingredients by percentage was sensitive information. Originally, the purpose of this question was to capture crops being used in feed composition that were more water intensive, however, giving the sensitivity of this question, subject matter experts have recommended to replace the old question by disclosing the feed water intensity. 

Water use and scarcity in animal farming 

Companies that conduct a water risk assessment and disclose that they only have animal farming operations in areas of low-water stress will not be assessed in this KPI. 


Water Use & Scarcity Aligned Subject-matter Experts & Frameworks

Experts-WAT

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