Why Water Management Has Become a Strategic Concern
Global water crisis forces companies to rethink their strategies.
1Global Impacts of Water Scarcity
Although 70% of the Earth's surface is covered by water, only 0.5% of it is usable. Rapid population growth, industrial use, and climate change are increasing water demand. In 2025, 35.8% of the U.S. experienced drought, and 30% of global land faced arid conditions. This poses serious threats to health, economic development, and social stability.
2Corporate Dependence on Water
Many companies view water as an operational resource but fail to treat it as a strategic factor. The food and beverage industry accounts for 20% of water withdrawals. Textile production is responsible for 20% of industrial water pollution. Sectors like AI data centers and green hydrogen, which rely heavily on water, threaten local water supplies.
3Water Pollution and Regulations
Water pollution is rising due to agricultural runoff, pharmaceutical residues, and nanoparticles. France's PFAS ban, effective June 2026, mandates testing drinking water for these chemicals, which affect 12.5 million people in Europe. Companies face penalties for releasing harmful chemicals into the environment, increasing the stakes for water management.
4The Role of KPIs in Water Management
Companies must establish new KPIs to improve water efficiency. Metrics like total water withdrawal, recycling rates, wastewater treatment, and watershed restoration should be monitored. Water stewardship must extend beyond company operations to supply chains. Agriculture, responsible for 70% of global freshwater withdrawals, is particularly critical.
5The Importance of Local Water Resources
Water resources are stored in basins and aquifers, making scarcity a localized risk. Companies with extensive supply chains cannot rely on one-size-fits-all solutions. For example, a company with three sites in the U.S. Northeast may face varying water risks. Tailored strategies are essential to address local conditions.
6Water Risks Across Industries
Not only large industries but also small businesses like car washes, restaurants, and healthcare face water risks. Construction, tourism, and sports sectors are also affected by shortages. Companies must recognize water's strategic importance to ensure sustainable operations and long-term competitiveness.
7Leadership in Water Management
Executives are beginning to understand water's critical role in production and supply chains. Responsibility for water efficiency is expanding beyond operations teams to senior leadership. Strategic decisions must now account for water risks, integrating them into corporate planning and risk management frameworks.
8The Future of Water Management
As water scarcity and pollution escalate into a global crisis, companies must prioritize strategic water management. Sustainable use of water resources is vital for both environmental and economic stability. By addressing water risks, companies can gain long-term competitive advantages and contribute to societal well-being.
Original article: MIT Sloan Management Review — Su Yönetimi Neden Stratejik Bir Endişe Haline Geldi?