The Sustainable Development Goals (SDGs), adopted by all United Nations Member States in 2015, set a global blueprint for achieving a better and more sustainable future for all by 2030. Among these, SDG 6 — Clean Water and Sanitation — is critical for promoting public health, environmental sustainability, and equitable economic development. SDG 6 aims to ensure the availability and sustainable management of water and sanitation for all by 2030. While the challenge of providing clean water is vast, it also presents significant business opportunities, particularly for companies keen on aligning their corporate strategies with the SDGs.

In this article, we explore the importance of SDG 6 in the context of global business, the role businesses play in advancing water and sanitation solutions, and how firms can capitalise on the opportunities presented by this goal.

The Global Challenge of Clean Water and Sanitation

Access to clean water is a fundamental human right, yet billions worldwide still face challenges obtaining this essential resource. According to the United Nations, 2.2 billion people lack safe drinking water, and more than 4.2 billion people are affected by poor sanitation. This disparity is most evident in developing countries, but even developed nations grapple with water-related issues, such as droughts, pollution, and the degradation of water infrastructure.

Water is essential for human survival and economic activities. Agriculture, manufacturing, and energy production are all heavily reliant on water. The fact that much of the world’s water is mismanaged, wasted, or polluted makes achieving SDG 6 a difficult but crucial challenge. The need for innovative solutions is immense, and this is where businesses come into play.

The Role of Business in Achieving SDG 6

As the global water crisis intensifies, businesses increasingly recognise the need to address water scarcity and pollution. Due to its resources, technology, and influence over supply chains, the private sector holds the key to advancing SDG 6. Companies can help by adopting sustainable water management practices, improving water efficiency, and investing in technologies that promote water conservation and quality.

Water Stewardship and Corporate Responsibility

Many businesses have embraced the concept of water stewardship, which entails managing water resources sustainably within their operations. By adopting water-saving technologies, reducing water consumption, and preventing pollution, companies can significantly reduce their environmental impact while contributing to the achievement of SDG 6.

Major corporations such as Coca-Cola, Nestlé, and Unilever have already integrated water stewardship into their business models. Coca-Cola, for instance, has committed to replenishing the water it uses in its operations by improving water access and quality in the communities where it operates. Similarly, Nestlé’s water management initiatives include reducing water usage in its manufacturing plants and improving water quality in local communities.

These initiatives enhance the company’s reputation and lead to cost savings through increased water efficiency. They also mitigate business risks associated with water scarcity, such as supply chain disruptions and reputational damage.

Innovative Technologies and Solutions

Technological innovation plays a crucial role in addressing water challenges, and businesses can capitalise on the demand for clean water solutions by developing and deploying cutting-edge technologies. The market for water technologies is booming, from water purification systems to desalination plants and innovative water management tools.

Startups and established companies are developing products that can clean contaminated water, conserve water, and improve the efficiency of water systems. Companies like Xylem and Danaher Corporation have developed advanced water treatment technologies to enhance access to clean water worldwide.

The growth of the water technology sector presents a significant opportunity for businesses to invest in and profit from solutions that can contribute directly to the achievement of SDG 6. Furthermore, governments and international organisations increasingly invest in water infrastructure, creating a lucrative market for companies specialising in water-related technologies.

Public-Private Partnerships

One of the most potent ways businesses can contribute to SDG 6 is through public-private partnerships (PPPs). Governments and companies can collaborate to tackle the complex water and sanitation challenges. PPPs enable enterprises to bring innovation, efficiency, and capital to public projects that improve water access and infrastructure.

For instance, in many developing countries, access to clean water is limited due to outdated or inadequate infrastructure. Businesses can help fund and build sustainable water systems that benefit local communities by partnering with governments and international agencies. These partnerships can also play a key role in building resilient water infrastructure that can withstand the impacts of climate change.

A notable example of such a partnership is the collaboration between the private sector and the United Nations Global Compact (UNGC). Through the UNGC’s Water Stewardship Program, companies have been able to work together on solutions that increase water availability, improve water quality, and manage water risks. These partnerships contribute to achieving SDG 6 and provide businesses with new market opportunities in emerging economies.

Circular Economy and Water Management

The circular economy model focuses on reducing waste and reusing resources, and it is particularly relevant to water management. To reduce their water footprint, businesses can adopt circular water practices, such as water recycling, rainwater harvesting, and wastewater treatment.

Water reuse is gaining traction among industries that rely heavily on water, such as the textile, food, and beverage sectors. By investing in water treatment technologies allowing wastewater recycling, businesses can reduce their dependence on freshwater sources and alleviate pressure on local water supplies.

PepsiCo is an excellent example of a company that has embraced the circular economy approach to water. The company has invested in water recycling facilities at its bottling plants, ensuring that water used in production is treated and reused. Not only does this reduce PepsiCo’s environmental impact, but it also provides the company with cost savings and improved water security in water-scarce regions.

Water Risk Management and Reporting

As the risks associated with water scarcity and pollution increase, businesses must proactively manage their water-related risks. Water risk reporting is a key component, which helps companies to identify potential threats to their operations and supply chains due to water issues. This transparency is crucial for investors, consumers, and other stakeholders who increasingly expect businesses to demonstrate their commitment to environmental sustainability.

The CDP (formerly known as the Carbon Disclosure Project) has introduced a water disclosure platform that enables businesses to report their water usage, management strategies, and associated risks. Companies that actively engage in water risk management and reporting are better positioned to mitigate the impacts of water scarcity and strengthen their brand reputation.

By embracing water risk management practices, businesses can identify areas for improvement, reduce costs, and ensure the long-term sustainability of their operations. This is particularly important for companies that rely on water-intensive processes, such as agriculture, textiles, and energy production.

Access to Clean Water in Emerging Markets

Emerging markets present a significant opportunity for businesses to lead in improving access to clean water. In many developing countries, access to safe water and sanitation remains limited, but rapid urbanisation and a growing middle class offer businesses an opportunity to expand their market reach while contributing to SDG 6.

Businesses can explore new markets by offering affordable water solutions to underserved populations. Social enterprises, such as Water.org, have made significant strides in providing financial solutions for clean water access in developing countries. Businesses partnering with such organisations or investing in similar initiatives can generate profit and create social impact.

The Financial Incentives for Water Sustainability

For many businesses, addressing water challenges is a matter of corporate social responsibility and a sound financial strategy. Sustainable water management can lead to significant cost savings, especially in industries with high water consumption. Businesses can lower operational costs by reducing water waste, improving efficiency, and implementing water-saving technologies.

In addition, there is a growing trend among investors to favour companies that demonstrate a strong commitment to environmental sustainability. Many investment firms now focus on Environmental, Social, and Governance (ESG) criteria when making investment decisions. Companies that take proactive measures to manage their water impact will likely attract investment from ESG-focused funds, creating long-term financial opportunities.

Conclusion: A Win-Win Scenario for Business and Society

The link between clean water and business success is undeniable. Companies that align their operations with SDG 6 contribute to the global effort to achieve sustainable water management. Still, they are also positioning themselves to capitalise on new market opportunities, improve operational efficiencies, and enhance brand reputation.

By focusing on water stewardship, embracing innovative technologies, participating in public-private partnerships, and investing in water risk management, businesses can make a meaningful impact on water sustainability while reaping significant financial rewards. As the world faces mounting water challenges, the time for companies to act is now. Clean water may be a fundamental human right, but it is also a big business opportunity that benefits both the planet and the bottom line.

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