Optimism seeps through cracks in dam of water woes

Published Wed, Mar 23 20162:23 PM EDT

Breakingviews

Antony Currie

Optimism is starting to seep through cracks in the dam of global water woes. On the surface, H2O's future looks bleak, with demand rising, drought spreading and more nations using it as a weapon of war. Many governments and companies, though, are acknowledging the threat – and sensing opportunity. That's clear from this year's World Water Day. Major corporations are using the event, which the United Nations started in 1993, to commit to consuming less water, improving reuse and cajoling suppliers to do the same. Anheuser-Busch InBev , Genentech and Kellogg were among the major companies making such pledges on Tuesday. Meanwhile, the White House hosted a water summit at which some $5 billion of private investments were announced. The Obama administration also published a presidential memorandum aimed at improving the nation's ability to deal with long-term drought. There's also more focus on showing companies the cost of inaction. On this year's World Water Day, the United Nations totted up how many jobs around the world are moderately or heavily dependent on H2O: almost 80 percent of the total. Growing water scarcity could put many of those at risk, along with national economies and corporate earnings. More from Breakingviews : Economic promises reflect Clinton and Trump appeal Such messages are reaching shareholders. Non-profit research outfit CDP, which represents 617 investors with a total of $63 trillion in assets, has become a powerful force for getting companies to disclose their water problems. Its 2015 report found that almost two-thirds of respondents reckon they are "exposed to substantive water risk." Encouragingly, 73 percent of them also saw business opportunities, from selling renewable energy equipment to cutting costs by being more water-efficient. There is, though, still much to do. Water demand may outstrip supply by 40 percent by 2030, according to the United Nations. Drought afflicts large swaths of the western United States, Brazil, Thailand, southern Africa and elsewhere. The use of water as a weapon of war is on the rise. Some have deployed dam water to flood towns, destroy other infrastructure or battle over water sources. Experts at the Pacific Institute found 20 examples of such behavior in the past two years in the Middle East, Ukraine, Somalia and Colombia. The growing sense of urgency beyond such conflicts, though, is prompting a greater willingness to act. The result should be more financing for desperately needed water projects. For more independent commentary and analysisfrom Reuters Breakingviews, visit breakingviews.com

Thanasis Zovoilis | Getty Images

That's clear from this year's World Water Day. Major corporations are using the event, which the United Nations started in 1993, to commit to consuming less water, improving reuse and cajoling suppliers to do the same. Anheuser-Busch InBev, Genentech and Kellogg were among the major companies making such pledges on Tuesday.