At this year’s Reuters Responsible Business USA conference, I had the privilege of co-leading a workshop on water stewardship alongside Sean Stephan, Director of Sustainability at OxyChem. What made this session truly energizing was the diversity of voices in the room. Leaders from hospitality, food and beverage, personal care, electronics, retail, and of course, the chemical industry came together to talk about how we’re working to identify and address water risks, challenges and opportunities.
Since water is a shared resource, and increasingly, a shared risk, we quickly found common ground. Whether you're managing a manufacturing facility, a distribution center, or a hotel, the challenges around water availability, quality and resilience are becoming more urgent and more complex.
One of the key themes that emerged was the need for information and tools to identify areas of water-related risk. Participants emphasized that understanding how and where water is used across operations and the watershed is foundational – not just for internal decision-making, but also to meet growing investor expectations. Investors are looking at how water risk may impact business, and companies need credible data to respond.
Water is inherently local. While many companies have robust enterprise-wide water strategies, those strategies must be flexible enough to adapt to local realities. A drought in one region might halt operations for weeks, while storm surges may cause water quality issues in another. In addition, a business may face reputational risks if it takes steps to secure their own water needs while the community faces shortages.
This led to a broader conversation about the true cost of water. Just because water flows from the tap doesn’t mean it’s cheap. Participants shared stories of operational disruptions, supplier challenges, and workforce impacts – all stemming from water scarcity. These are real business risks, and they’re growing.
We also heard how local engagement and employee empowerment can elevate water issues within organizations. A strong water stewardship program can give site-level teams the tools and voice to raise concerns to senior leadership, helping companies stay ahead of potential crises.
Perhaps the most encouraging takeaway was the emphasis on collaboration. Companies are increasingly working with community stakeholders to better understand shared water challenges and work together on solutions. This is the kind of smart risk management that has cascading benefits for communities.
Finally, it was compelling, and gratifying, to hear how much participants valued learning from one another. Hearing how a beverage company is taking action to meet a goal of 100 percent replenishment in drought-stricken regions, or how a food manufacturer is working with their suppliers in water scarce areas, helped spark new ideas and reinforce the value of cross-sector dialogue.
At the end of the day, ACC members and our peers across industries recognize that water stewardship isn’t a niche issue – it’s a business imperative. And while the challenges are complex, the willingness to share, learn and act together gives me real optimism for the road ahead.
