11.5 Conclusion

This chapter has addressed the role of companies today in relation to freshwater. The research on responsibilities demonstrated that it is quite difficult to determine fixed boundaries as to where public responsibilities end and corporate responsibilities commence in respect of corporate impact on water. Firstly, legislation and policies on how water is managed vary from country to country, thereby distinguishing between the management of waste water, freshwater consumption and ground water control. Secondly, different types of industries have different impacts on water. Thirdly, it is often difficult to directly link changes in the environment to the water consumption of any one enterprise. Additionally, complications arise when multinational companies operate in weak governance zones. It could be argued that in countries with effective water management authorities, like the Netherlands, companies do not bear a legal responsibility for the environmental consequences of their water consumption. They do owe a moral responsibility. This responsibility seems to grow in weak governance zones or where the access to freshwater is under pressure due to water scarcity, as has been argued by the UN Special Representative John Ruggie. Notwithstanding, it could be argued that moral responsibility in all situations goes further than legislation.

Society has a growing expectation that the private sector, often perceived as complicit in global water threats, should do its part, regionally and internationally, to address these challenges. In response, business leaders' initiatives show that certain leading companies generally accept responsibility for their water use and for public access to water within their sphere of influence, parallel to Ruggie's philosophy. Furthermore, there is a growing recognition that businesses are well positioned to play a role in achieving MDG 7, and that contributing to the realisation thereof can bring about new business opportunities.

From the literature research it also became apparent that companies have begun to appreciate that, besides concerns of CSR and reputation, they also have to pay attention to sustainable water use because the business case will increasingly demand this. I.e. they will need to adapt to, or as the case may be, help to prevent (i) water availability concerns, including water stress and flooding; (ii) water quality concerns, including increasingly contaminated surface and groundwater supplies; (iii) water access concerns, specifically competition with other water users such as local communities; (iv) increased regulation regarding water use; and (v) increasing water prices.

To assist companies, certain tools to attend to the necessity to reduce their freshwater use have been developed. The UN Global Compact Principles, OECD MNE Guidelines and the GRI G3 have a general outlook, but include the corporate water perspective. On a water-specific level, the CEO Water Mandate initiative offers a corporate policy framework which is linked to the

UN Global Compact Principles. Additionally, the WBCSD Global Water Tool

and the Business unit Water Footprint have produced methods for calculating the water use in the value chain of corporate operations, and for prioritising measures aimed at implementing a sustainable water use. Another approach is followed by the Water Initiative, i.e. a programme intended to promote public-private partnerships on water projects and responsible management of watersheds. These initiatives evidence a clear message from business leaders that companies need to take action in the field of sustainable global water management.

Nonetheless, a study conducted by the investors coalition CERES revealed that even for companies operating in sectors and regions of the world facing significant water risk, disclosure of risk and corporate water performance was surprisingly weak. The CERES study reported on the level and quality of disclosures by 100 large global companies.

As regards Dutch companies, a ' quick scan' research project was conducted. The analysis of the business activities of 20 publicly traded Dutch companies in relation to water demonstrated that most have measures in place to monitor and to control their use of freshwater, groundwater and emissions into water. Some - but not all - have gone one step further by setting clear targets to reduce water use or emissions to water. Few companies have indicated that particular measures have been taken regarding water use in the supply chain. Finally, some companies directly contribute to the development of local water supplies in the areas where they operate.

In sum, this chapter argued that companies are expected to bear responsibility for their impact on water resources, in particular when their impact influences public access to water in areas with freshwater scarcity and/or weak government. Notwithstanding the critical conclusions of the CERES report, it is interesting to see an evolution in corporate research concerning sustainable water use and the development of greener products and greener ways of production, thanks to CSR.