Climate pressures, population growth and rising demand are starting to put a strain on water supplies, with recent hosepipe bans indicating the extent to which water resources are struggling in some regions. It’s estimated that without intervention, we could be facing a water shortfall of up to 5,000 million litres of water per day by 2050[1] – a gap that infrastructure investment alone will not close.
While public discourse often focuses on household consumption, business water demand remains a comparatively under-leveraged part of the solution. Non-household customers account for around 30% of England’s public water supply and yet historically have played a limited role in national efficiency strategies. That is beginning to change, with statutory water efficiency targets now in place to help reduce demand.
Jo Dow, CEO of Business Stream, highlights the role of businesses in addressing water scarcity.
The UK Government has set a target to achieve a 9% reduction in non-household water demand by 2038 and 15% reduction by 2050. While these targets are a positive step forward, recent analysis[2] commissioned by the Retailer-Wholesaler Group[3] and undertaken by management consultants, Baringa, suggest that current Water Resource Management Plans will not deliver these reductions without additional, targeted intervention focused specifically on business users.
Encouragingly, the same analysis shows that business demand reduction is achievable. A coordinated package of measures, spanning pricing signals, data-driven efficiency, non-potable supply and behavioural incentives, could, they believe, deliver a 21% reduction in non-household demand by 2050. This would exceed national targets and help to create headroom for economic growth in water-intensive sectors such as data centres, manufacturing and housing development.
One of the clearest near-term opportunities lies in addressing avoidable water use. Continuous flow, which is when water runs continuously, often suggesting a potential, hidden leak within a premises, represents a significant and largely untapped source of efficiency. The report estimates that tackling continuous flow could reduce business water demand by up to 10%, delivering immediate benefits for system resilience while lowering operational costs for users.
To realise these savings at scale, there’s a need for improved data availability and system coordination. Smart metering is a critical enabler and the UK-wide rollout, which is currently underway, will help to provide more accurate data and sophisticated water monitoring to enable customers and the industry to identify further efficiencies.
Beyond better data quality, another area of opportunity is the use of non-potable water sources in reducing demand for treated supplies. For large users, including data centres, industrial organisations and sports facilities, greater use of rainwater, recycled water or greywater for low-grade applications could deliver meaningful reductions in potable demand – an area identified in the UK Government’s recent Water White Paper[4].
Crucially, no single mechanism will achieve the proposed reduction targets. Instead, a suite of complementary interventions, combining regulatory leadership, economic incentives, operational support and reputational drivers are needed.
And the results won’t just support reduction targets. Identifying efficiencies helps businesses to reduce both water and energy costs, as well as support wider sustainability goals. Water efficiency plays a role in climate adaptation, resource resilience and economic sustainability and should be integrated into strategies. Delivered effectively, it can relieve pressure on water resources, reduce biodiversity loss and support a more resilient transition to a low-carbon economy.
Water scarcity is no longer an issue we can afford to ignore. While a lot of responsibility sits with the industry and Government to address the challenges and deliver solutions, there’s a role for businesses to support efforts and, in doing so, reap the financial and environmental benefits that are there to be gained.
[1] Incentivising business customers to reduce water consumption
[2] Incentivising business customers to reduce water consumption
