4. Water Footprint Assessment in Supply Chains

Companies become increasingly aware that they contribute directly and indirectly to water scarcity and pollution and that this constitutes a risk they have to respond to. A growing number of companies are exploring their water footprint and searching for ways they can become better water stewards. The chapter discusses and compares three methods to trace resource use and pollution over supply chains: environmental footprint assessment, life cycle assessment, and environmentally extended input-output analysis. Next, it discusses what new perspective the water footprint concept brings to the table, compared to the traditional way of looking at water use. It then reviews some of the recent literature on direct and indirect water footprints of different sectors of the economy. Finally, it discusses future challenges, such as the issue of data gathering and reporting, the demand for water stewardship and greater product transparency, and the need to establish water footprint benchmarks.