Resource conservation and management is essential in today’s world, particularly in the world’s water-stressed regions. Global water supplies are under increasing pressure from water stress, climate change, pollution, population growth, and other factors. The World Bank also predicts that the urban population worldwide will approximately double by 2050 and contain two-thirds of the world’s population, which will drastically increase demand for reliable and safe water supply and sanitation services. 

Water is a shared resource that impacts communities and companies around the globe, even businesses in which water is not directly material to their operations. The economic success of businesses, firms, and industries is affected by water risks. Water scarcity and poor quality can cause supply chain disruptions throughout the value chain, impact consumer outlook, and affect the health and wellbeing of employees. Businesses can play a critical role and should have a vested interest in ensuring a sustainable water supply.

Logan St. John
Logan St. John Water Resources Specialist

The Circular Water Economy

Most businesses utilize a traditional linear economy that follows a “Take-Use-Discharge" philosophy when it comes to water management. This model is based on the assumption that resources are abundantly available, easy to source, and cheap to dispose of. We have seen this result in unsustainable practices that have degraded and polluted the environment, created the global water crisis, and significant losses of economic and social value.

The principles of circular economy lay out a framework to reevaluate what growth looks like and design an economy that is inherently restorative and regenerative. Transitioning from a traditional linear economy to a more sustainable circular economy, which emphasizes the reuse and recycling of water, is one method of ensuring greater availability of freshwater for both the environment and regional water supply to close the projected gap in water demand.

 

Transitioning to Circular Economy

A circular economy mimics the natural water cycle and avoids using water whenever possible by improving resource efficiency, minimizing waste, and centering around reuse, recycling, and replenishment. Water circularity also captures and maximizes the full value of water. In addition to being a raw resource, water can act as a source or sink for thermal energy as well as a carrier for materials such as nutrients and other chemicals. The water, energy, and materials that make up wastewater are leveraged in a circular economy to provide additional use streams for recycled water. These practices conserve resources and minimize pollution which helps to mitigate negative impacts to natural resources while also restoring watersheds and natural systems, which is both economically and ecologically important.

There are various stages associated with circular economy principles that range from on-site operations to large-scale regional partnerships and projects. Businesses starting to transition from a linear model for the first time should begin with on-site initiatives such as water efficiency assessments, establishing and tracking key performance indicators (KPIs) such as water use and discharge, and on-site recycling initiatives. As businesses implement these initiatives, they should develop an understanding of their watershed’s baseline conditions and health and the impact their operations have on the watershed. This knowledge will enable businesses to identify unique opportunities and partnerships for wastewater reuse beyond their four walls to enhance the health of the watershed. Establishing these local connections is critical to the success of regional water circularity projects.
 

Current State of Water Circularity in Industry

Water circularity is already becoming more common in industry. Many industrial facilities have already adopted water reduction, water efficiency, and/or water circularity programs. In addition to this, some facilities have responsible standards for effluent that go beyond legal requirements for discharge to the environment which reduces their impact on the local watershed when they do discharge. There are economic benefits as well, from reduction in operational costs, favorable return-on-investment (ROI) for water circularity projects on- and off-site, and noted improvements in regulatory compliance and associated costs. "Water circularity is not just a necessity, but a strategic investment, optimizing resource efficiency and driving sustainable growth in today's competitive market" says Natalya Holm, who leads Climate Risk & Water Stewardship services at Antea Group USA.

However, public opinion on recycled wastewater poses a significant challenge to a circular water economy and regulatory constraints often limit wastewater recycling to non-product or municipal reuse scenarios such as landscape irrigation, non-contact cooling water, and sanitation. To avoid wastewater reuse in products, several companies in the food and beverage sector have established replenishment targets to return a larger quantity of freshwater to the environment for beneficial community use than what is consumed in their products.
 

Conclusion

A circular water economy creates connected solutions with the goal of reducing freshwater withdrawals, improving the quality and quantity of available drinking water, and improving ecosystem health and resiliency. To maintain a sustainable water supply that will support people, the planet, and prosperity, we must transition from a linear economy model to a circular economy model the promotes water reduction, reuse, recycling, replenishment, recovery, and retention. We can put in the work today to ensure a better water future.

Are you looking for help with your organization’s water stewardship journey? Reach out to our team of Water Stewardship experts today!