What does measuring a company's water footprint help to understand?

Measuring a company's water footprint is essential for understanding the sustainability of its production processes. The water footprint refers to the total volume of freshwater used directly and indirectly in producing goods and services. By evaluating this metric, companies can identify how much water their operations consume, the sources of that water, and the waste generated through their processes.

Understanding the water footprint enables companies to assess their environmental impact, particularly in relation to water scarcity and pollution. It highlights areas where improvements can be made to reduce water usage, promote recycling and reuse, and mitigate adverse effects on ecosystems. This assessment is vital for enhancing sustainability practices, improving resource management, and complying with regulations aimed at reducing water usage in production processes.

In contrast, while operational costs, employee turnover rates, and shareholder value may be influenced by a company’s practices, they are not directly measured or explained by analyzing the water footprint. The focus of measuring a water footprint is specifically aligned with the assessment of sustainability and environmental responsibility in production.