For many companies, water remains a blind spot. It is not at the top of the strategic agenda, it is not given its own policy, and the risk only becomes apparent when it is too late – during a dry summer, a restriction on groundwater extraction, or when a supplier has to scale back production. For a growing number of companies, water already demands strategic attention and action today.
Flanders is one of the most water-scarce regions in Europe. According to the World Resources Institute’s Aqueduct Water Risk Atlas, water demand in Flanders already structurally exceeds the available supply. We live in a region with a negative water balance – and the pressure on groundwater is increasing year on year.
The causes are manifold and reinforce one another. Intensive agriculture and industry demand large amounts of water. The proportion of built-up land is high, which means rainwater penetrates the soil poorly. And climate change is causing extremes at both ends of the spectrum: heavier downpours that overload our rivers and sewerage networks, and longer periods of drought that deplete our water reserves. The dry summers of 2017, 2018 and 2022 were not exceptions, but a harbinger of a structural trend.
For companies whose production processes depend on water – such as those in the food and drink, chemical, pharmaceutical, textile and paper industries, among others – this translates into concrete threats: drought risks, restrictions on groundwater extraction, stricter discharge standards and rising costs for water abstraction and treatment.
Anyone who looks only at water consumption at their own production site sees only part of the picture. Part of the water risk often lies further upstream – with suppliers of raw materials, ingredients or semi-finished products, often located in regions with high water stress. A sugar supplier struggling with drought. A raw material producer in a water-scarce region who has to scale back production. A packaging manufacturer facing stricter water and discharge regulations. All these links have an impact on the continuity of your business.
An increasing number of reporting frameworks and international standards make this explicit. The Corporate Sustainability Reporting Directive (CSRD) and the associated ESRS E3 standard require companies not only to map their own water use, but also to analyse dependencies and impacts throughout the entire value chain. Materiality is the key word here: if water is relevant to your activities or those of your suppliers, then it is an issue you cannot ignore in your reporting.
Treating water as a CSRD topic purely as a compliance exercise is a missed opportunity – and a risk in itself. Companies that fail to get a grip on their water use, dependencies and risks today are ignoring significant vulnerabilities in their business model.
The physical risks are real: production disruptions due to water scarcity or flooding, higher operational costs due to rising water intake and treatment costs, and issues with permits as regulations tighten. Transition risks are also relevant: reputational damage with customers who are setting ever-higher sustainability standards, loss of supplier contracts, and increasing pressure from investors who closely monitor ESG performance. In short: water is no longer an issue for the environmental department alone. It demands attention in the boardroom and a well-thought-out strategy.
The collaboration between Pantarein and Astra Sweets, the confectionery manufacturer based in Turnhout, illustrates how water risk can have a very tangible impact on a food company.
For Astra Sweets, water is essential to the production process. With growing awareness of water stress in Flanders, the company decided to have its water usage thoroughly analysed – not only at its own production site, but throughout the entire value chain.
As a first step, Pantarein mapped out the water impacts, dependencies and climate-related risks. The analysis revealed that Astra Sweets’ direct impact on the regional water supply is limited, but that its dependence on available, clean water is significant. Based on these insights, Pantarein drew up an adaptation plan with strategic recommendations, targeted measures and a concrete water policy with four priorities: efficient water use, pollution prevention, sustainable water management and climate adaptation. Objectives, policies, responsibilities and KPIs were developed for each priority.
In parallel, sister company Pantarein Water investigated the technical future scenarios: the treatment of high-sugar wastewater linked to energy recovery, and the mandatory recovery of rainwater. Scenarios that cannot only alleviate water stress but also deliver long-term cost savings.
“Thanks to Pantarein’s thorough analysis, we now have well-founded insights that strengthen our strategic decision-making,” says Jan Verhaert, Project Management Officer at Astra Sweets.
Water is a complex issue that requires both strategic and technical expertise. Pantarein offers a unique combination of sustainability consultants and water engineers – a cross-disciplinary approach that enables companies to tackle their water challenges from start to finish.
What we can do for you:
Water impact and risk analysis: We map out your water dependencies, impacts and risks – both on your own site and throughout your supply chain. Using scientific climate models and data sources, we assess the likelihood and severity of risks, and determine what is material to your business.
Water audit and feasibility study: We carry out a thorough audit of your water flows and processes, analyse the composition of your water and investigate which technologies and solutions best suit your business processes.
Various technologies for water treatment and reuse: From membrane filtration to biological treatment, from rainwater harvesting to the reuse of treated wastewater: Pantarein Water develops and implements circular water solutions that reduce your water consumption and make your business more resilient to water scarcity.
Water strategy and policy: We translate the analysis into a concrete water policy with clear priorities, objectives, measures, responsibilities and KPIs. This provides you with a solid basis for strategic decision-making and for reporting under the CSRD and ESRS E3.
From strategy to technology, from risk analysis to concrete installation: Pantarein offers a single point of contact for everything related to water.
Water availability is under pressure. Regulations are tightening. Customers and investors are setting ever-higher standards. Companies that invest in their water strategy now are building a head start in resilience, compliance and credibility.
Is water a material issue for your business? Would you like to know what risks you face and how you can address them? Feel free to contact our team at mail@pantarein.be.
Pantarein is a sustainability consultancy specialising in ESG strategy, sustainability reporting and climate advice. Its sister company, Pantarein Water, develops circular water solutions for industry.
