Why Corporate Stewardship Must Lead on Water Scarcity, Waste

Water scarcity is no longer an abstract issue tied to distant deserts or parched farmland. It has become a boardroom topic, a supply chain vulnerability and a factor capable of halting production lines. Nearly two billion people today live in countries under high water stress. For businesses, the implications are stark as scarcity can disrupt operations, inflate costs, damage reputations and erode trust.

In India, the warning signs are everywhere. The country holds 18% of the world’s population but only 4% of its freshwater reserves. NITI Aayog projects that water demand could double the available supply by 2030. Compounding the problem, groundwater is being extracted faster than it can recharge and untreated sewage is polluting rivers and lakes. Erratic rainfall, along with rapid urban and industrial growth, is pushing the system toward crisis. For companies operating in this environment, inaction is not an option.

The Business Imperative

This is not a challenge governments and communities can resolve alone. Commercial and industrial operations, from factories to power plants, account for some of the highest water consumption, making them key to ending scarcity.

Corporate stewardship starts with acknowledging that water is a shared and limited resource. This perspective should inform both long-term strategy and day-to-day operations. Moving past basic compliance means taking steps to secure water supplies, protect ecosystems and make sure access is fair for all. Effective stewardship not only reduces risk and boosts efficiency but also strengthens relationships with communities and positions companies to handle tighter regulations in the future.

It also carries a responsibility to ensure vulnerable groups are not excluded when water becomes scarce.

Circular Solutions in Practice

To combat scarcity, we need to move away from a “use once and discard” model and build systems that keep water in play for longer. Nagpur, for instance, uses treated municipal wastewater to cool thermal plants, freeing up clean water for households while giving the city an extra source of income. Chennai has chosen another path. Using advanced treatment, the city turns municipal waste into water suitable for manufacturing, enabling factories to maintain operations even during periods of severe drought.

A circular water economy focuses on reuse and recovery so that water can serve multiple needs before it is returned to the environment.

Partnering with Communities

Corporate initiatives often achieve the greatest impact when supported by community-led management. For example, in Jurola village in Gurugram district, ZS partnered with Say Earth and the Jurola Gram Panchayat to restore a 4.5-acre pond as part of a three-pond system. The project captures about 3,21,200 kiloliters of water annually, securing sustainable access for nearly 4,000 residents. Combining infrastructure investment with community oversight helps ensure fair allocation and long-term benefits.

Technology and Policy Momentum

Technological solutions are demonstrating significant potential. Closed-loop water systems can, in optimal conditions, maintain nearly all of a factory’s water in circulation. Advanced treatment can make wastewater fit for reuse across a range of processes. These achievements are amplified when supported by policy and behavioral change.

India’s Ministry of Jal Shakti now mandates that cities reuse at least 20 percent of their wastewater. Businesses are aligning with this effort with some in the textile sector helping suppliers reduce freshwater use ahead of regulatory timelines. Such engagement extends the impact of sustainable practices across supply chains.

The Urgency to Act

India still treats only about a quarter of its urban sewage and the infrastructure to deliver recycled water to priority users is often absent.2 Emerging financing mechanisms, from green municipal bonds to public–private partnerships, show promise but depend on governance quality, fair pricing structures and building public confidence in recycled water.

In water-scarce regions, proactive corporate stewardship is both a strategic safeguard and a contribution to societal resilience. When ‘treated water’ is directed to agriculture, crop losses are reduced. Moreover, when industries recycle and support municipal systems, manufacturing continuity is secured and communities are better equipped to withstand climate shocks.

A Shared Responsibility

Tackling water scarcity will take a united effort. Businesses can’t do it without policy support and governments can’t succeed without community involvement. Restoring rivers and lakes, curbing waste and building reliable systems for tomorrow requires all three working in concert. When companies take an active role, they bring money, expertise and momentum that can turn a looming crisis into real progress, helping protect jobs, strengthen towns and keep the natural world healthy for the next generation.

(Rohit Bhagwat is Global ESG Committee Member and Office Managing Principal at ZS. Views expressed are personal)