Metrics
Environmental impact goals can be managed only when they are measurable and quantifiable. Water footprint can be measured using a variety of metrics:
An Absolute Water Savings Volume
Example: 10,000 gallons per day. This metric is the simplest and most intuitive but it does not include consideration for production expansion, as future growth can result in an increased demand for water.
A Variable Metric of Water Used per Common Denominator
The most common denominators are unit production and revenue. Examples include*:
- Power - Gallons/KwHr
- Refineries – Gallons/barrel of crude oil
- Beverage – Gallons/liter of beverage
- Auto – Gallons/vehicle
- Warehouse areas – Gallons/ft2
*Calculations are normally done on average basis Revenue is often used in cases where a manufacturing facility is producing many types of output products.
Total Metric Tons of Wastewater Loadings
As per wastewater quality, most companies use their Corporate Sustainability Report to disclose volume of loadings in the following categories: COD, BOD, TSS and metals.
Realizing Value
Reducing water footprint has several layers of value recognition. When monitoring a water project’s progress, it is recommended to capture the achieved value in all categories:
Economic
Green is green. In order to execute a water related project, the economic value has to outweigh the cost of project. Using Steps 1-3 of the water efficiency process will allow you to compare the existing cost structure to a future state.
Risk Reduction
Experts at the institute of Risk Management in the UK define four broad categories for risk:
- Financial – Savings created from water projects and production expansion
- Strategic – Getting ahead of the competition by creating a more progressive sustainability policy and reporting it in the annual CSR report.
- Operational – Optimized supply chain with high efficiency
- Hazard – Prevention of safety and compliance issues
Environmental
Every gallon of water saved has a macro effect on the environment by being used for other purposes like residential water supply or agriculture irrigation. For example: Lake Lanier in Georgia was recorded on 11/29/2007 to have an inflow of 248.8MM GPD, outflow of 827.2 MM GPD with a deficit of (578.4MM) GPD. Every gallon saved translates into a reduction in the deficit and bringing the lake above its red line.
Creating a Competitive Advantage
Social responsibility enhances a company’s image. Going beyond compliance and getting ahead of regulation can reduce time and money. Recognition comes in various forms. GE rewards its customers with an ecomagination Award given to its customers for delivering positive economic and ecologic impacts.
Summary
In conclusion, the four-step process is a structured framework to setting water footprint goals, executing initiatives, monitoring progress and celebrating success. The theme that connects all four steps is the ability to measure the water footprint using metrics. In their book “Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage”, Dan Esty and Andrew Winston state the following:
"Environmental metrics show a company where it stands. Data and indicators are critical to factbased decision-making and sound environmental management. They drive continuous improvement and allow managers to mark progress against pollution control and resource productivity goals."
Continue to Appendix A - Solutions for Reducing Water Footprint
