Silvia Forin, VTT: Global Water Availability – The role of companies between dependency and stewardship

Water scarcity is emerging as a critical global challenge, impacting not only the environment but also business operations and reputations across industries. Finnish companies may encounter significant challenges related to water scarcity through their international supply chains, particularly when sourcing from regions facing high water risk. Being proactive will allow them to strengthen their market position as forerunners in the field of sustainability.

On March 22, 2026, World Water Day will once again spotlight the urgent environmental and social challenges caused by dwindling water resources such as droughts, declining ecosystem services, reduced soil quality, biodiversity loss, and impaired access to clean water and sanitation – issues that especially affect women and children in the Global South.

Comprehensive international evaluations, such as the United Nations’ Global Water Bankruptcy report and the Planetary Health Check 2025, underscore that human actions have been the driving force behind the excessive depletion of freshwater streamflow and soil moisture, pushing these vital resources well past the boundaries of sustainability. Key business sectors such as food, chemicals, textiles, mining, forestry, oil, gas, and power generation are major consumers of water. Globally, agriculture accounts for about 70% of water use, while in Finland nearly 80% is used by manufacturing. As sustainability professionals, it is crucial to recognize how interconnected these challenges are and to take action in addressing them.
 

The role of companies between responsibility and dependency 

A glance at the 2024 food import data published by Ruokatieto and at the World Resource Institute Water Risk Tool reveals that at least 15% of Finland’s food imports come from Belgium, Spain and Italy, countries with a high or very high water risk. Also in other sectors, the overall greatest impacts of the Finnish industry occur abroad, in regions where international suppliers are located. These numbers show that companies need to help preserve the world’s water because if water runs low where their suppliers are, their business could be at risk too. 

In countries outside the European Union, environmental standards and production practices can be very different. Companies need to carefully check their suppliers to make sure they aren’t overusing water or polluting it, because this could hurt how their brand is perceived by clients. 

At the same time, companies can work together with their suppliers and local communities by joining water stewardship programs. These programs foster cooperation in safeguarding water resources and help tackle the social challenges that come from overusing water resources in the past. 
 

Measuring and enhancing water impacts: from footprint to handprint

The water consumption and water quality overall impacts and hotspots of products and companies can be assessed using the water footprint method, which quantify the impacts a product or a company have on water scarcity and water quality throughout their whole value chain. Scientific impact assessment methodologies enable us to move beyond simply measuring water volume and pollutant quantities, making it possible to connect these measurements with the local effects on water scarcity, biodiversity, and both water and soil quality.  Also, data with increasingly high regional and temporal resolution help provide a granular picture of a company’s reputational and financial risk in supply chains, thus supporting strategic decisions. 

Besides impact reduction, companies can also actively contribute to mitigating the water impacts of their client companies or customers, for example by increasing the water efficiency of production processes or developing water purification technologies. Such a contribution to reducing the environmental impact within the value chain is called handprint. By providing innovative products together with the associated environmental handprint to their clients, a company adds an environmental benefit to its financial gains and supports the restoration of global water resources.

For World Water Day 2026 to be impactful and lead to real progress: 

• Check your suppliers and ensure they protect water resources. Your business depends on it.
• Collaborate with suppliers and local communities for lasting impact. Remember to consider the needs of women as well.
• Calculate your handprint to showcase how your innovative business helps protect the environment. Your contribution counts!