Are Water Risk Assessments in Your Future?

Historically, companies throughout North America have grappled with periods when there was a water shortage and then, shortly after that, flooding. These periods of too much/too little water lasted briefly and had a minor impact on business operations.

However, this is changing with climate change. We will still experience erratic water behavior, but these periods of too little and too much water will remain with us longer, potentially disrupting business operations for extended periods.

California: The Perfect Example

Before the winter of 2022/2023, California was expecting more water shortages, compounding the water shortages the state has been experiencing for several years.

However, then the dam broke, quite literally. The state received a "colossal amount of rain and snow," according to an article in USA Today. "This past winter, the state was drenched with an estimated 78 trillion gallons of water.”

It's not the wettest year the Golden State has ever seen, but it is a massive amount of water in a state that has been beset by droughts for years.

While most Californians have expressed great relief, the question now is how long will this last? How soon before Californians must count each drop of water used to brush their teeth again?

Such extremes have always impacted businesses, but for these wet and dry periods to last longer is proving more detrimental. Here are some examples of what happens to companies that have endured long-term severe shortages of water:

? In 2021, Taiwan Semiconductor Manufacturing Corporation, the world's most prominent computer chip maker, had to start trucking in water to continue production. The country is experiencing severe drought conditions. If the company had to stop production due to a lack of water, scores of companies worldwide, including Apple, would have to stop production. It could have the potential of causing a worldwide financial collapse.

? A Canadian mining company, Barrick Gold, closed its operations in Chile due to ongoing water shortages. Closing the facility cost the company $8.5 billion.

? And let's remember our own country. The Colorado River supplies businesses, farmers, and more than forty million people with water. Allotments from the River are now strictly allocated, with most everyone is getting less water; the big concern now is what to do if the Colorado River dries up.

Too Much is Not Good Either

A study published in Communications Earth & Environment shows that floods in the U.S. are the most devasting of water-related natural hazards, costing the U.S. $160 billion from 1996 to 2020. Further, the flash flooding resulting from all this water is increasing yearly, especially in the Southwest, which has rarely dealt with flash floods.

But let's jump over to the other side of the country and see what's going on.

Flash floods are increasing in Florida due to several factors, including climate change, rising sea levels, and development. According to Sealevelrise.org, tidal wave water floods in Florida have increased by 352 percent since 2000. These flash floods are already having a dramatic impact on Floridians. For example:

? More lives are being lost due to flooding.

? Property and infrastructure have been damaged, often severely.

? Property insurance is skyrocketing throughout the state (and some insurance companies are pulling out of the state entirely).

? Many coastal high-end homes are now viewed as the first properties to be uninhabitable in coming years.

What Will the Future Hold?

The future is uncertain, but some trends and predictions can help us prepare for it. Here are the possible scenarios that may unfold in the next few years in North America and other parts of the world:

· Water security will become a key factor for businesses that want to expand or relocate. They will evaluate the water risks and opportunities in different states before making any decisions. This will help them avoid water shortages, floods, conflicts, and costs in the long term.

· Water efficiency will be a priority in commercial buildings, especially in restrooms, where most of the water is used. More facilities will adopt low-flow and waterless fixtures, such as waterless urinals, to save water and money.

· Water stewardship will be a widespread practice among companies that care about their social and environmental impact. They will collaborate with their communities to reduce water demand, conserve water resources, and enhance water quality.

· Water transparency will be a requirement for local governments that want to attract and retain businesses. They will have to disclose their water challenges and solutions and show how they are planning for the future. This will build trust and confidence among stakeholders.

Finally, we must all view water as a limited resource, in water rich and water poor times. Water stress is increasing worldwide, with more than 660 million people not having access to adequate, healthy, and dependable water. And those numbers are growing.

This means the critical goal for all businesses today and in the future is to use water more sparingly and efficiently.

Klaus Reichardt is CEO and founder of Waterless Co, Inc, pioneers in advancing water efficiency. Reichardt founded the company in 1991 with the goal of establishing a new market segment in the plumbing fixture industry with water efficiency in mind. Reichardt is a frequent writer and presenter, discussing water conservation issues. He can be reached at [email protected]