The “silo effect” makes communications between institutions and constituencies difficult. We all know policymakers aren’t moving on the issue, either. That may leave corporations as the most likely problem solvers.
Saving water and saving money
Some companies are tackling water scarcity, not only because it’s the right thing to do but also because they have to. Although water shortages can cripple many business and economies, some businesses are directly affected by water supply already.
Gleick pointed out that Intel Corporation (NASDAQ:INTC) constructed one of the most efficient chip plants in the Southwest due to water availability. In Intel Corporation (NASDAQ:INTC)’s 2012 Corporate Sustainability Report, it vowed to reduce water use per chip below 2010 levels by 2020.
Michael Glade of Molson Coors Brewing Company (NYSE:TAP) also participated in the panel discussion. Glade described Coors’ ways of dealing with the problems at hand in water use. These have not been money-draining strategies. Glade said that the company’s work in water, waste, and energy have resulted in $10 million in savings to the company’s bottom line from 2008 through 2012, and it’s expecting another $16 million through 2020.
Along those lines, I’m thinking of one company I follow, EnerNOC, Inc. (NASDAQ:ENOC), which works on energy demand response. However, it’s increasingly involved in irrigation systems. That seems to be a sign of the times — and the future.
Some industries are trying to be part of the solution, but others haven’t come around yet in force. For example, agricultural concerns’ water usage is an important — and large — piece of this puzzle.
Furthermore, a gush of water is required simply to produce energy in this country. In the U.S., 30% to 40% of the freshwater that’s withdrawn goes to power plant cooling, particularly thermal and nuclear. That doesn’t even add into the equation the energy we need to deliver, treat, and use water.
During the conference, Ceres also released a report on fracking, the extremely controversial method of extracting natural gas. Fracking has major impact in water-constrained areas of America. Nearly half of the 25,450 oil and gas wells evaluated for the report are in water basins with high or extremely high water stress. Texas and Colorado rank high on the list of these parched regions that have been experiencing prolonged droughts. The New York Times reported that the spread of the practice could further strain these communities’ water supplies.
Tapped out
We all require water, and too many of us take good old H2O for granted. It’s time to think about how water goes far beyond the kitchen tap. My friend Jim Meyer recently exposed some major cities at risk of water shortages for Grist.org, infusing humor into the topic. (If you don’t laugh, you’ll cry, and stand-up comedians care about the environment too.) He brought up the Colorado River, and asked some important questions. For example, Can Americans actually handle a bourbon shortage? Maybe now we’ll get more attention.
All joking aside, the “peak water” threat is an urgent one. Look out for the concern about water in the U.S. Companies can move quickly to help head off the problems, but those who ignore the urgency will hurt investors — and the world at large.
Check back at Fool.com for more of Alyce Lomax’s columns on environmental, social, and governance issues.
The article Economies and Investments Could Dry Up Sooner Than You Think originally appeared on Fool.com.
Alyce Lomax has no position in any stocks mentioned. The Motley Fool recommends EnerNOC, Intel, and Molson Coors Brewing (NYSE:TAP). The Motley Fool owns shares of EnerNOC and Intel.
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