Water Scarcity
The Hidden Risk in Your Global Supply Chain
In the ESG conversation, water often plays second fiddle to carbon. But for many industries—from food to fashion—water is an existential risk. Droughts, water pollution, and resource conflicts are disrupting supply chains and exposing companies to reputational, operational, and regulatory fallout.
Water risk isn’t just an environmental issue—it’s a governance issue. Addressing it requires visibility, collaboration, and scenario planning at every level of your supply chain.
- Map Water Dependency and Stress Zones Use satellite data and supplier questionnaires to identify where your value chain intersects with water-scarce regions.
- Work with Suppliers to Reduce Water Intensity Offer training, technology, or financial support to help partners reduce their water usage and improve efficiency.
- Audit Water Quality Impacts, Not Just Quantity Track pollution risks and effluent discharge, especially in textile, mining, and chemical-intensive supply chains.
- Engage with Water Stewardship Initiatives Join industry or regional water stewardship groups to advocate for collective action.
- Report Risk Transparently Share progress, gaps, and future targets in your ESG disclosures. Water is becoming a key investor focus.
When you tackle water risk, you build resilience and trust. You avoid costly disruptions. And you position your brand as part of the solution.
Don’t let water be your silent supply chain risk. Surface it. Solve it. And turn it into a strategic differentiator.
How to Spot Governance Gaps in Complex Supply Networks
As supply chains become more global and fragmented, governance becomes harder to enforce. From contract manufacturers to joint ventures, the deeper you go, the more governance gaps appear. And these gaps often hide the very ESG risks that can make headlines—and tank share prices.
You’re a procurement head, general counsel, or risk lead responsible for overseeing third-party relationships. You need better oversight—but without creating unmanageable bureaucracy.
Strong governance in supply chains isn’t about more paperwork. It’s about embedding values, expectations, and escalation processes throughout your ecosystem.
Start with Risk-Based Segmentation Prioritise governance attention on suppliers that pose the greatest ESG and reputational risks.
- Introduce ESG Clauses and Audit Rights in Contracts Include clear provisions around ESG performance, disclosure, and remediation.
- Train Your Procurement Teams Equip them to spot red flags, ask the right questions, and escalate concerns effectively.
- Build Governance Scorecards Use a combination of self-assessments, third-party audits, and internal reviews to track governance health.
- Create an Escalation Pathway Ensure whistleblower policies and grievance mechanisms are available across your supplier network.
Governance that extends beyond your four walls strengthens your whole value chain. It gives you control, foresight, and resilience in a world of rising ESG scrutiny.
Your suppliers reflect your brand. Don’t let governance be your blind spot. Illuminate it—and strengthen your entire ESG strategy.