New index exposes water-related greenwashing in companies

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🗞️ Driving the news: Researchers have developed a Water Sustainability Index (WSI) that reveals how corporate water reporting can hide environmental harm, showing that the same amount of water use can have very different impacts depending on local water scarcity

🔭 The context: The index was developed by William A. Mitch, professor of civil and environmental engineering at Stanford University
• Unlike traditional reporting that focuses mainly on total water withdrawals, the WSI evaluates multiple factors including water scarcity, water source (surface vs. groundwater), consumption, discharge quality, and reuse
• The research found that across 55 major U.S. companies, water reporting remains far less developed than carbon disclosures, making it harder to assess real environmental impact

🌍 Why it matters for the planet: Water use impacts ecosystems and communities locally
• This means a facility withdrawing water in a drought-prone basin can cause far greater damage than the same withdrawal in a water-abundant region
• A location-based scoring system could help expose water-related greenwashing, pushing companies to reduce consumption, improve water reuse, and avoid operating in highly stressed basins

⏭️ What’s next: If widely adopted, the Water Sustainability Index could provide investors, regulators and communities with a clearer benchmark to evaluate corporate water practices
• However, its effectiveness will still depend on accurate corporate reporting and independent verification

💬 One quote: “The quantitative nature of the WSI allows companies to identify cost-effective pathways to improve water sustainability,” - William A. Mitch

📈 One stat: Currently, 25 countries face extremely high water stress each year, highlighting the growing urgency of accurate corporate water management reporting

See on illuminem's Data Hub™ the sustainability performance — carbon credit purchases, total emissions, and climate targets of thousands of companies

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