Water: A Central Pillar of Climate Resilience for Brands.
Introduction
Water is fundamental to both life and business, yet it has often been an underappreciated element in corporate climate strategies. As climate change accelerates droughts, floods, and freshwater shortages, companies worldwide are waking up to water as a critical risk and opportunity. The United Nations warns that over 2 billion people lack access to safe drinking water today, and by 2030 global demand will exceed sustainable supply by 40%, leading to rising operational risks, supply chain disruptions, and costs for businesses. Indeed, the UN Global Compact has called the global water crisis an existential threat to business operations, urging companies to join forces to build water resilience in the communities where they operate and to restore the ecosystems that protect water resources. In short, water security is now a central pillar of climate resilience – especially for brand-led companies and tech firms whose growth and performance depend on stable supplies of this precious resource.
The Overlooked Climate Risk: Water in Corporate Strategy
For many years, corporate sustainability efforts focused heavily on carbon emissions and energy. But water risk is quickly moving up the executive agenda. Reliable access to water underpins agricultural production, energy generation, manufacturing processes, and data center cooling. When water supplies shrink or quality degrades, entire business models are at stake. Droughts can shutter factories or data centers; floods can disrupt supply chains. Leaders increasingly recognize that ignoring water risks is not an option – water scarcity and climate-related water shocks are already disrupting operations and threatening brand reputations. Conversely, companies that act now on water can mitigate risks, spur innovation, build stakeholder trust, and future-proof their business models. Water stewardship thus becomes a strategic imperative, integral to climate adaptation planning and business continuity. Crucially, investing in water resilience yields broad co-benefits: it supports communities’ access to clean water and sanitation, helps protect ecosystem health, and contributes to climate mitigation and adaptation efforts. In sum, water is not just an environmental or philanthropic issue – it is a core business continuity issue in a climate-challenged world.
The Water Footprint of Tech: AI and Data Centers
One sector learning this lesson fast is technology. The surge in cloud computing and artificial intelligence has a hidden water footprint. Data centers, which power everything from streaming services to AI model training, consume vast quantities of water for cooling their servers. Generative AI and cloud data centers use millions of gallons of fresh waterto prevent overheating of equipment, often drawing on the same local water sources that communities depend on.
In 2022, Google’s data centers alone consumed about 5 billion gallons of water for cooling – a 20% jump from the previous year – while Microsoft’s data center water use rose 34% in the same period. These increases have not gone unnoticed. In one Oregon city, public records revealed that Google’s data centers were using over a quarter of the city’s entire water supply, sparking concern among local farmers, indigenous communities, and environmental groups. Similar community pushback has erupted in Chile and Uruguay over planned data centers tapping into drinking water reservoirs.
The growing water appetite of tech infrastructure is now a reputational and regulatory issue. Amid record droughts and public scrutiny, tech companies are being pressed to account for and reduce their water impact. This has driven new accountability measures – for example, legislators in the U.S. and EU have proposed reporting requirements for AI’s resource use, including water. It has also prompted industry innovation: data center operators are exploring cooling technologies that use far less water, from air-cooling systems to recycling wastewater for equipment cooling. The message is clear for tech firms: climate resilience isn’t just about clean energy, but also about water stewardship. If the digital economy is to be sustainable, managing the water footprint of AI and cloud services is as critical as managing carbon footprints.
Corporate Water Risks and Responses: Microsoft, Google, Unilever, PepsiCo
Leading companies across sectors are starting to treat water as a strategic priority and are taking action to address water risks:
Microsoft and Google – Tackling Water Usage in Tech: For cloud providers and AI leaders, water-intensive data centers pose both a risk and an opportunity for leadership. Microsoft has faced scrutiny for the water used in its vast cloud operations, and in 2020 it responded with a bold commitment to become “water positive” by 2030 – meaning it will replenish more water than it consumes across its direct operations. To achieve this, Microsoft is reducing the water intensity of its facilities and investing in replenishment projects in water-stressed regions. For example, the company is redesigning data centers with innovative cooling methods that use outside air instead of water for much of the year, and capturing rainwater and recycling wastewater at new campuses to drastically cut freshwater use.
Google, likewise, announced it will replenish 120% of the water it consumes by 2030 – effectively putting back more water than it uses. Google’s plan includes using less water in its offices and data centers through efficiency improvements, and supporting community water projects in the areas it operates, starting with water-scarce regions. In Southern California, for instance, Google is funding the removal of water-hungry invasive plants and installing leak-detection technology in low-income housing to conserve municipal supplies. These initiatives by Microsoft and Google signal a new norm in the tech industry: proactively addressing water consumption and investing to ensure local water security. Notably, other tech giants like Meta (Facebook) and Amazon have set similar water-positive goals for 2030, reflecting a broader corporate shift toward water stewardship in the digital sector.
Unilever and PepsiCo – Safeguarding Water in Consumer Supply Chains: Consumer goods companies are equally dependent on water, from agriculture (growing ingredients) to product manufacturing and customer use. Unilever, for example, has stated that water is “critical to both mitigating and adapting to the effects of climate change” and essential for everything from crop growth to how consumers use its soaps and foods. Unilever’s Chief Sustainability Officer, Rebecca Marmot, noted that to de-risk the business and unlock growth, water security across the value chain and equitable access to sanitation are essential. In line with this view, Unilever has committed to implement water stewardship programs at 100 of its manufacturing sites in water-stressed areas by 2030, and to work with farmers on regenerative agriculture to protect water resources in its supply chain. The company also works through its brands (like Lifebuoy soap) to improve hygiene and access to clean water in communities, reaching millions of people each year – recognizing that healthy consumers and communities underpin its long-term business resilience.
PepsiCo, another global consumer brand heavily reliant on water (especially for its beverages and snacks), has likewise made water a centerpiece of its sustainability agenda. PepsiCo’s Chief Sustainability Officer, Jim Andrew, has spoken plainly: “Water scarcity is directly linked to the climate crisis, and ... a global effort to be ‘net water positive’ is essential.” In 2021 PepsiCo announced a Net Water Positive commitment by 2030, aiming to reduce absolute water usage and replenish more than 100% of the water it uses at all high-risk operating sites. This means PepsiCo intends to put back more water into local watersheds than it withdraws, through measures like advanced recycling in its plants and restoring wetlands and watersheds in partnership with NGOs. The company is improving water-use efficiency in farming (e.g. deploying drip irrigation and drought-resistant crops) and has already achieved a 25% improvement in water efficiency at its factories in high-risk areas years ahead of schedule. In addition, the PepsiCo Foundation is investing to expand access to safe water for communities – aiming to reach 100 million people by 2030 with clean water access and sanitation projects. This “people-first” approach acknowledges that water stewardship has a social dimension: by helping provide water for drinking and hygiene, PepsiCo strengthens the communities it depends on, building goodwill and resilience against climate impacts.
Water, Climate, Biodiversity, and Equity: A Holistic Approach
Water challenges do not exist in isolation – they intersect deeply with climate change, biodiversity, and social equity. Climate change is essentially a story told in water: higher temperatures and shifting weather are making dry areas drier and wet areas prone to extreme floods. This increases water scarcity in many regions while intensifying storms and flood risks in others. Businesses therefore face a double-edged threat – too little water at times, too much at others – both exacerbated by climate instability.
At the same time, water issues are tightly linked to biodiversity and ecosystems. Healthy ecosystems like forests, wetlands, and rivers are natural regulators of water availability and quality. When these ecosystems are degraded, the resilience of water systems erodes. Companies must help reverse the degradation of water-protecting ecosystems – such as protecting upstream watersheds, financing wetland restoration, or removing invasive species that deplete water resources. These initiatives create a win-win: securing water supplies for people and businesses, while preserving habitats and sequestering carbon.
Water is also fundamentally an equity and human rights issue. Access to safe water and sanitation is recognized as a basic human right. Climate change is worsening this divide. Investments in community water access and WASH (water, sanitation, hygiene) bolster public health and economic growth, creating a healthier business environment. A water-resilient strategy must extend beyond factory walls to consider people and ecosystems. By addressing water holistically – linking climate action, nature conservation, and community well-being – companies can maximize the impact and credibility of their climate resilience plans.
Practical Actions for Water Resilience
To build water resilience and move toward “water-positive” operations, companies can:
Boost Water Efficiency: Adopt technologies and methods to reduce water use in operations. For example, adiabatic cooling or rainwater reuse in data centers.
Embrace Circular Water Systems: Invest in water recycling and reuse infrastructure to reduce dependence on freshwater sources.
Invest in Nature-Based Solutions: Restore watersheds, wetlands, and implement regenerative practices that enhance water availability and biodiversity.
Collaborate and Engage: Partner with governments, NGOs, and local communities for shared water goals. Join initiatives like the CEO Water Mandate and transparently report water use.
How SIV Impact Helps Build Water-Positive Strategies
SIV Impact Inc. is a global sustainability firm that helps brands embed water stewardship into their climate strategies. With a focus on nature-based solutions, SIV helps companies:
Assess water footprints and risks
Design localized water resilience strategies
Implement water reuse systems
Replenish critical water sources
Monitor and measure water impact
SIV Impact works at the intersection of business and ecosystems to help brands become water-positive and climate-resilient – delivering shared value to communities, companies, and nature.
