While many global firms have made strides on managing their water use and impact, progress is not moving quickly enough to meet escalating water challenges, a new study by Ceres has found.
The 2025 Valuing Water Finance Initiative Benchmark, which follows on from a similar report two years ago, assessed 71 global companies over their water use, and found that 48 had improved their performance since 2023.
Water-use targets
Some 83% of the 71 assessed companies have water use targets in place, but only half have targets that consider local water conditions of in high-risk regions, the study found.
Efforts to address water quality are also lagging, with two fifths (41%) of firms setting pollution reducing targets, and fewer still having targets that consider local conditions.
While most companies report the amount of water they withdraw, and wastewater discharged from their operations or supply chains, many do not link this data to the actual effects on regional water availability or quality.
There are encouraging signs, however, with more and more firms engaging in ecosystem protection or restoration projects aimed at addressing water needs, and many also improving board oversight of water risk – close to three quarters (73%) have formal board and senior management oversight over water-related issues, and half have incentives linked to water.
‘All-time high’
“Pressure on water resources, from extreme weather to population growth to industry demand, is at an all-time high,” commented Shama Perveen, director of water research at Ceres and report co-author.
“This report underscores that companies and investors need to move swiftly to secure long-term value and protect freshwater resources essential to ecosystems and communities where they operate and source from.”
As the report noted, by the mid part of this century, more than 30% of global GDP could be exposed to high water stress, underscoring the urgency for stronger water management practices.
Other findings from the study include that just over 40% of firms participate in collective water action efforts directly aligned with their business goals. Participation is even lower when it comes to water quality initiatives.
According to Ceres, the benchmark should be seen as a ‘valuable tool’ for companies to gain inspiration and insight from their peers, and accelerate best practices in the field of water stewardship.
“This report shows that while water risks are complex, companies are making tangible progress,” added Kirsten James, senior program director for water at Ceres and report co-author. “By offering data-driven insights into how businesses are embedding water risk into operations, supply chains, governance, and strategy, this benchmark can serve as a reference point and catalyst for more ambitious water stewardship across industries.” Read more here.
