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Good practice example: Food & Beverages - Other Environmental Issues - Water
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Food & Beverages - Other Environmental Issues - Water

Food & Beverage company A processes vegetable oil on production sites in several areas linked to water-related risks. Since vegetable oil processing requires large amounts of water for cooling and steam production, A’s water withdrawal impacts the environment in water-scarce regions. At the same time, A operates in several areas with risks of drought and riverine and coastal floods that represent operational and financial risks for the company. Since A has an impact on the environment and faces risks in the area, water is a material topic for A.

For the risk assessment, A uses Aqueduct Water Risk Atlas to create a map with all its facilities linked to water risks, including water-scarce areas and regions with potentially destructive power of water (sea-level rise, floods). According to this map, A’s facilities do not face high water risks and therefore, A applies only a general water consumption policy and reduction target.

Space for improvement:

For a company that identifies high water risks, we recommend the following water usage policy, covering:

In case a specific forward looking target of water withdrawal reduction is set, the company should specify a timeline and milestones, and document progress by a table with KPIs provided next to the milestones set to meet the target:

year - past performance / target

Facility A

Facility B

Facility C

2018 - past performance

15 000 000 m3

10 000 000 m3

8 000 000 m3

2019 - past performance

14 500 000 m3

9 000 000 m3

8 000 000 m3

2020 - reporting year

14 000 000 m3

8 000 000 m3

7 500 000 m3

2021 - target

12 000 000 m3

7 000 000 m3

7 000 000 m3

2025 - target

8 000 000 m3

4 000 000 m3

4 000 000 m3

2035 - target

3 000 000 m3

1 000 000 m3

1 000 000 m3

Water consumption and high water risk areas are reflected in AAK’s Sustainability Report, available here: https://ebooks.exakta.se/aak/2019/sustainability_report_2018/pubData/source/AAK_sustainability_report_2018_Ebook_vidgjord.pdf