14 DAY TRIAL // The companies which have treated the climate change issue with skepticism might be surprised to find out that water crisis is responsible for decreasing profit margins for thousands, maybe even millions of enterprises all across the globe.
The companies which don't want their numbers to be affected by global climate change are investing a significant amount of money in redesigning their cooling systems, adding wastewater treatments and water recycling strategies to their manufacturing plan.
While smart companies such as General Electric (GE) try to adapt to the new rules of the game by developing innovative, eco-conscious technologies which are supposed to pay off, other enterprises, especially those in beverage sector, are having a hard time keeping their budget intact.
Brands in the beer industry, for example, need five parts of water for every part of beer they obtain. Nowadays, they struggle to reach a 3:1 water-beer ratio, while trying to obtain tips and information on how to minimize their costs while preserving water.
Molson Coors, for example, stimulated the competition to join its efforts of understanding more about water conservation by advising them to join the Water Disclosure Program, an initiative that gathered 500 participant companies, which are experiencing the same problem.
Coca-Cola and Pepsi, on the other hand, seem to be coping with the new situation and are not facing the threat of remaining “dry.”
Water risks made a significant number of enterprises raise its prices. Nestle, Sara Lee and Kraft are only a few examples of enterprises which have come up with this solution, as a way to overcome the present crisis.
While companies seem to be having a hard time sharing Earth's water resources, in other parts of the Globe governments are unable to handle all the water nature has given them.
Toyota, Hitachi, and Fujikura experienced decreased profit margins as a result of the worst floods Thailand has experienced in the last half of century.
This proves that companies still have a long road ahead of them while trying to figure out how to exploit water resources more effectively. In the near future, it seems that a company's profit will entirely depend on its efforts of conserving water.