Why investing in sustainable water use today is the future

After the wet year of 2024 and the wetter than usual summers of recent years, one could be forgiven for asking whether there actually is a drought problem in Flanders. Is there even a shortage of water in Flanders? Should we still be concerned about dry summers? The answer is 'yes', 'yes' and 'yes' again.

Flanders has low water availability, even though we are historically a water-rich region. Our region is small, has a lot of paved, tarmacked and concreted surfaces, is highly industrialised and densely populated. Our demand for water is high, while our water resources are far from inexhaustible. Although we receive sufficient precipitation in Flanders, we still face regular droughts, as climate change makes springs drier and winters wetter. Moreover, we are increasingly experiencing extreme weather conditions. This creates unpredictability and poses major challenges for water management.

The numbers don't lie: the structural precipitation deficit during the growing season (April - September) over the past ten years is 50 mm greater on average than during the past 100 years.

The summer of 2022 was so dry that industries located along the Albert Canal and Ghent-Terneuzen Canal were actually faced the prospect of a ban on using surface water. The potentially disastrous consequences of this for our economy hardly need spelling out. For many businesses, easy access to water is essential for them to keep functioning. This makes clear why action is needed now.
If we want to avoid droughts in Flanders - now and in the future - a structural approach is needed. First and foremost, we will all have to use our water resources in a sustainable way; that obviously applies to industry as well.

Flanders consumes about 740 million cubic metres of water annually. Industry is the biggest consumer of water, using (300 million cubic metres a year). Companies draw on a range of water sources, such as mains water, surface water, rainwater, groundwater but also other sources (including reuse of wastewater). The source chosen will depend on the water quality and volume required. Water is an essential resource for many businesses, being used for example in beverage and food production, as a cooling agent for energy installations, as part of hygiene processes, to reduce environmental impact or to ensure the safety of certain installations.
Businesses may be the biggest water users, but their overall net consumption is much lower; this is because much of the water used is treated and discharged again, via surface water or the sewer system.

Since 2000, the share of extracted groundwater (which is regarded as the strategic stock needed to prevent water scarcity) has more than halved compared to total water use (excluding cooling water). But overall efficiency has also increased, with 25% less water required per product delivered over the same period. In turn, the share of 'other water' (e.g. use of wastewater) is four times higher than in the period prior to 2000 period (source: Environmental Statement 2018).

Companies are clearly on a journey towards more sustainable water use. The Corporate Sustainability Reporting Directive (CSRD) aims to make sustainability more transparent within the European Union and requires some 50 000 companies across Europe to report on their sustainability policies. The biggest companies and public interest organisations will begin publishing their reports in 2025. Large companies will also have to report from 2026, and listed SMEs from 2027. Sustainable water use in all its facets is one of the ten CSRD themes for which companies will have to assess their material and financial impact and where necessary how they integrate that impact, as well as the risks and opportunities, into their business strategy.

At present, the obligations only apply to large listed companies. However, smaller Flemish companies will also feel the impact of CSRD. CSRD requires organisations covered by the obligation to map the impact of their entire value chain. This means that companies have to report not only on their own sustainability performance, but also that of their customers and suppliers. Suppliers who operate sustainably may therefore have a competitive edge. Companies small and large will have to answer more questions about their sustainability metrics, including what water resources they use and how sustainably they use those resources in their production processes.

1. The numbers tell the story. Map the water sources used in the production process and monitor how they are used. The free water scan published by Flanders Innovation & Entrepreneurship (VLAIO) can support this process.
2. Prevention is better than cure. Identify where your business could use less water or where there are potential leakage losses. Automating taps is one solution to this.
3. The right water for the right quality. Consider what water quality you need to run your processes optimally and efficiently. If a lower quality water will produce the same result, use that source. For example, consider using rainwater in sanitary applications instead of tap water.
4. Reuse (waste) water where useful and necessary. Reuse of wastewater is also part of the picture, but is highly dependent on a number of parameters that need to be taken into account, including energy demand and the impact of discharging residual wastewater.
5. Encourage partnerships through water exchanges with third parties. What is wastewater for one party is a useful resource for another. At local level, this can help reduce the use of more primary water sources. To encourage this, companies that make all or part of their wastewater available to third parties for recovery will no longer have to pay a levy on this fraction. To meet the exemption, however, a number of conditions must be met.

Investing in sustainable water use today will thus not only reduce the use of our primary water resources, but will help in ensuring security of supply and business continuity throughout the year and potentially offer a competitive advantage. Why wait? Start today.

Further reading:
The EU Taxonomy, a reference framework for sustainability
Or take another look:
Webinar: Mandatory ESG reporting (CSRD) and new legislation
Webinar: EU Taxonomy: what is sustainable investing according to the EU

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