Water risk and related business continuity assessments typically consider availability, quality, stakeholder and delivery infrastructure risks. A primary mitigation measure typically involves use reduction and conservation, assuming the costs of such efforts can be justified. Prior to our involvement, a leading food manufacturer found it difficult to invest in water use reductions at its numerous global operating facilities because anticipated savings were insufficient based on the cost of water “at the tap.”
Antea Group's Global Corporate Consultancy team members worked with our client to more thoroughly understand all of the cost drivers for water throughout their operations. In analyzing the true cost of water for their production processes, we expanded the assessment to include not only “cost at the tap,” but:
- Incoming treatment cost;
- Process cost;
- Wastewater pre-treatment cost; and
- Sewer fees/surcharges.
This more in-depth cost analysis yielded significantly more savings once water throughput costs were added to the company’s investment models. Now our client has been able to restart water use reduction efforts that previously could not satisfy the company’s internal investment hurdle rates.