Water Footprint: Useful for sustainability policies?

Vulnerability of catchment areas should be considered

Approaches that aim for the sustainable use of water resources should consider the vulnerability of catchment areas and groundwater aquifers. As the water footprint indicator does not do this, it is not suitable to be used for setting targets and developing strategies for sustainability policies, nor for benchmarking, certifying or monitoring the progress made by companies, consumers or countries towards sustainable water use. Moreover, the indicator does not offer appropriate information for consumers to make sustainable choices.

Connecting supply chains to catchment areas

In a water footprint sustainability assessment, an approach that is still in an experimental phase, water footprint components are located and placed in their physical and socioeconomic context. In this way, unsustainable ‘hot spots’ can be traced along the product and supply chain, where production processes use water from overexploited water resources, pollute water to the point of exceeding water quality standards, or where water allocation and use are considered unfair or inefficient. This approach fits with the growing attention paid to supply chains from a general sustainability or business-risk perspective. It may generate additional resolving power, as – in addition to local stakeholders and authorities – it also involves distant consumers, producers, retailers and investors along the supply chain when addressing water problems in unsustainable hot-spot areas.

Trade position of the Netherlands offers opportunities

The prominent position of the Netherlands in the global agricultural market offers opportunities to stimulate companies to trace the unsustainable hot spots along their product and supply chains, work on reducing water stress and pollution in these hot spot areas, and prevent the emergence of new ones. The Dutch Government may build on the increasing public awareness of the global dimension of water problems to urge companies to act accordingly. Government, companies, NGOs and networks, such as sector organisations and round-tables, could collaborate in this process.