American Journal of Environmental Protection, 2013, Vol. 1, No. 4, 120-123
Available online at http://pubs.sciepub.com/env/1/4/8
© Science and Education Publishing
DOI:10.12691/env-1-4-8
Corporate Water Footprint: Risks, Opportunities, and
Management Options for Sustainable Development
N. Petrovic
*
, M. Cirovic
Center for Environmental Management and Sustainable Development, University of Belgrade Faculty of Organizational Sciences,
Belgrade, Serbia
*Corresponding author: petrovicn@fon.bg.ac.rs
Received January 01, 2013; Revised October 25, 2013; Accepted December 03, 2013
Abstract For many companies, freshwater is a basic ingredient for their operations, while effluents may lead to
pollution of the local hydrological ecosystem. Initially, public pressure has been the most important reason for
sustainable business initiatives, but today many companies recognize that failure to manage the freshwater issue
raises risks, including damage to the corporate image, threat of increased regulatory control, financial risks caused
by pollution, or insufficient freshwater availability for operations. It is therefore interesting to know the specific
water requirements of various consumer goods, particularly the water-intensive ones. This paper discusses
specialised water reporting instruments such as the ‘water footprint’ calculation method and demonstrates it's
usefulness in measuring and monitoring corporate sustainability. The water footprint analysis can highlight how near
or far a company is from being sustainable and identify those aspects that have the greatest negative effect on
freshwater and entire environment. Also it can highlights further management options and ways that companies
address in their use of freshwater as one of the aspects of sustainable business performance, because today, many
companies recognise that proactive environmental management contributes to their profitability and competitiveness
in green markets.
Keywords: freshwater, sustainable development, water footprint, corporate waterfootprint
Cite This Article: N. Petrovic, and M. Cirovic, “Corporate Water Footprint: Risks, Opportunities, and
Management Options for Sustainable Development.” American Journal of Environmental Protection 1, no. 4
(2013): 120-123. doi: 10.12691/env-1-4-8.
1. Introduction
On the one hand, freshwater of adequate quality is not
only a prerequisite for human societies, but also for
natural ecosystems that perform functions essential for
human existence and life on earth [1]. On the other hand,
freshwater is a basic ingredient for many companies’
operations, and effluents may pollute the local
hydrological ecosystems. Many companies have addressed
these issues and formulated proactive management
strategies [2]. A company may face four serious risks
related to failure to manage the freshwater issue: damage
to the corporate image, the threat of increased regulatory
control, financial risks caused by pollution and insufficient
freshwater availability for business operations [3, 4].
Further on, responsible businesses are at the heart of
society. Companies that understand their links with the
communities they operate in, and their impact on the
environment, are most likely to prosper in the long-term.
At the same time, interests from stakeholders in firms’
environmental performance and sustainable businesses are
at an all-time high. There is an increasing recognition that
good environmental performance makes good business
sense [5] as well as the necessity of applying sustainable
development.
Sustainable development is a global development
management philosophy that aims to conserve the
integrity of the Earth’s ecosystems while supporting
economic growth and social welfare, and therefore, is
linked to ongoing economic growth and development [6].
It was developed by the Brundtland Commission during
the World Commission on Environment and Development
in 1987 [7]. Sustainable development has been defined in
many ways, but the most frequently quoted definition is
from Our Common Future, also known as the Brundtland
Report: Sustainable development is development that
meets the needs of the present without compromising the
ability of future generations to meet their own needs. It
contains within it two key concepts: the concept of needs,
in particular the essential needs of the world's poor, to
which overriding priority should be given; and the idea of
limitations imposed by the state of technology and social
organization on the environment's ability to meet present
and future needs.
2. Method
Business water accounting is increasingly regarded as
an essential part of sustainable corporate performance
accounting. Since 2000, indicators for business water