How Businesses can rethink and lead their water management

Ireland faces a water crisis. Businesses must act now to ensure resilience and sustainability in the face of climate change challenges.

In brief

• Ireland's perception as a water-rich country is outdated due to outdated infrastructure and growing demand. 
• Businesses must take immediate action to assess their water dependency, develop drought management plans, and ensure operational continuity. 
• Increasingly frequent dry spells require proactive water management, making water resilience critical for strategic planning and sustainable operations.

Welcoming back the rain – the realisation that water scarcity is not a distant threat – Businesses must rethink water resilience now

After a prolonged dry spell, many are finally welcoming back the rain, a much-needed relief for our landscapes and water supplies as Met Eireann forecast changes to occur this week. The early onset of warm weather lifted spirits across the country and brought joy to many, with beach trips, picnics and barbeques filling our days. However, this dry period also highlighted the challenges we face regarding water scarcity, a pressing issue that cannot be ignored.

While this dry spell may feel like a seasonal fluctuation, the underlying reality is more serious as it serves as a reminder of the underlying impacts of climate change that are becoming increasingly frequent and severe. Through Ireland’s Climate Change Assessment (2023), the Environmental Protection Agency reported a noticeable increase in winter rainfall trends from records commencing in 1860. Conversely, summer rainfall demonstrated a decreasing trend since 1850. The recent and significant dry spell also meant that most of Ireland was placed on a watch or drought warning by the European Drought Observatory. For households this extended to water conservation orders through hosepipe bans in some areas. For businesses however the issues in relation to water are becoming more challenging. There is now an urgent need for businesses operating here especially those that rely heavily on water, to take immediate action to future proof their operations.

The Illusion of Abundance

Ireland has long enjoyed a reputation as a water rich country however this perception is outdated. The Eastern Region of the country, especially the Greater Dublin Area which is now classified as a water stressed region is facing a challenging water landscape with outdated infrastructure, a growing population and an increasingly unpredictable climate. Seasonal variability also plays a large role as rainfall in Ireland is not evenly distributed throughout the year with much falling in the West despite a higher demand in the East of Ireland. The combination of lower rainfall and storage capacity coupled with high demand through economic and population growth in the East puts severe pressure on already fragile water systems. To ensure long term water security, Uisce Éireann is in the process of implementing the National Water Resources Plan (NWRP), a 25-year strategy to create safe, secure and sustainable water supplies which also incorporates a drought management plan, developing regional plans to address local needs and advancing infrastructure projects. However, many of the planned activities will take a number of years to be completed. 

According to the Environmental Protection Agency, Climate Ireland and Uisce Eireann, the Greater Dublin Area has very limited capacity in its water supply system. This means that in the face of drought, there is little buffer. For households, this means that during prolonged dry spells they may face water shortages or restrictions making it essential to conserve water and will need to be prepared for potential supply issues. For households and rural farms across the country on private water supplies, the impact of drought is much more significant as this may result in loss of water supply, health risks from possible contamination from backflow events or appliance damage as groundwater pumps burn out leading to costly repairs. For companies, this translates to risk: operational risk, reputational risk and supply chain disruption.

Many companies have rightly identified water as a material ESG issue however there is a gap between identifying materiality and acting on it. The latest dry spell is a wakeup call for businesses and should serve as a strategic signal and prompt them to ask themselves critical questions: 

• Have we completed a water audit?
• What is the redundancy in our water supply systems?
• Have we evaluated our site level water risks – both direct and indirect?
• Is there a water resiliency or drought management plan in place? 
• Do we have supplier engagement and contingencies for water disruptions?
• Are we investing in water efficiency, reuse or rainwater capture?

If the answer to these questions is unclear, now is the time to act not when there is a need for water restrictions. As the duration of dry spells is expected to increase, this occurrence should leave companies evaluating their approach to climate risk bearing in mind that climate risk is water risk and resilient companies will treat water not as an assumption but as a finite, strategic resource. Water consumption and conservation are no longer compliance issues, they have become real and material concerns for businesses that rely on water for their operations. 

Considerations

Forward thinking companies are moving beyond passive compliance, foot printing and reporting into scenario planning, resiliency investments and community engagement. Some key next steps that businesses should consider are: 

1. Assessing Water Dependency - Evaluate your operations to understand the extent of reliance on water and identify critical points of vulnerability.
2. Developing a water conservation and drought management plan – Establish protocols to conserve water during normal operations and manage water use during periods of scarcity ensuring business continuity.
3. Engage with stakeholders- Collaborate with local authorities, suppliers and the community to develop integrated water management strategies.
4. Monitor and Report - Regularly track water usage and report on sustainability initiatives aligning with ESG goals and align water management with global best practice. 

As the impacts of climate change become more pronounced, the time for complacency is ending. Businesses must prioritise water resilience as a core component of their strategic planning. By taking proactive steps now, companies can not only safeguard their operations but also contribute to a sustainable future for communities and the environment.