At a recent Sustainable Finance Water Scarcity Roundtable, hosted jointly by Fintech West, Waterwise and Shakespeare Martineau, Professor of Sustainable Economy, Dr. Peter Bradley shared crucial insights on how water scarcity impacts business models across the UK. The event brought together key stakeholders from the water industry, business sector, fintech, and water efficiency specialists to explore drivers that might encourage businesses to prioritize water efficiency.
Business Perspectives on Water Efficiency Richard Tidswell on behalf of John Gilbert, MOSL
Richard Tidswell explained how MOSL was established in 2017 to create a competitive water retail market for businesses. He shared that only 10% of business water use is non-potable, while 1% of businesses consume half of the market’s total water demand. With 75% of England classified as water-stressed, some business connections are already being refused. Richard highlighted MOSL’s water efficiency dashboard as a valuable data resource and referenced a recent collaborative report exploring incentives for business water reduction.
The discussion raised questions about why mandatory ESOS energy reporting doesn’t include water consumption metrics. Participants emphasized the need for a national narrative around water efficiency similar to Net Zero initiatives, noting that simplifying information would help businesses move from awareness to action. There were calls to share success stories more widely and develop a National Rainwater Strategy to normalize rainwater harvesting practices.
Nothing Happens Without Water, Nicci Russell, Waterwise
Nicci Russell from Waterwise opened the event with some sobering statistics, noting that there’s a 1 in 4 chance of water supply cuts in the next 30 years, with potential economic impacts of £25-40 billion. Daily water use has doubled compared to 60 years ago, highlighting the urgency of addressing this issue. The Environment Act 2021 now mandates a 9% reduction in business water use by 2038, underscoring the regulatory push toward greater efficiency
”…The cost of not taking action would be 5 times the cost of taking action now…”
Policy and Regulatory Drivers, Bhikhu Samat, Shakespeare Martineau.
Bhikhu Samat from Shakespeare Martineau followed with insights on policy and regulatory issues, pointing out the pressures on water companies to meet growing population demands while protecting the environment. He highlighted the aging infrastructure—with no new reservoirs built in over 30 years—and called for greater industry and individual responsibility.
Impact on Business Models, Peter Bradley, SERG University of the West of England
Peter Bradley delivered key insights on business models and water efficiency. He highlighted a significant gap in our understanding of business water consumption patterns. Unlike energy usage and circular economy practices, where substantial research exists, water efficiency in the business community remains understudied and poorly documented. He emphasized that better data collection methods will be essential for meaningful progress, noting that current price mechanisms provide only minor incentives for businesses to improve their water efficiency practices.
Peter offered several practical considerations for businesses approaching water efficiency. He suggested companies evaluate whether their customer base values sustainability, as this connection could provide business value beyond simple cost savings. He recommended examining both direct water usage and the often-overlooked indirect water consumption embedded in production processes—categorizing water as blue (surface and groundwater), green (rainwater), and grey (recycled). This comprehensive approach allows businesses to understand their total water footprint more accurately.
”…AI, is likely to change industrial and commercial water use and there is a need to plan our regional strategies carefully…”
The changing environmental and economic context was another key point in Peters analysis. As water prices increase, consumer behaviours shift accordingly. He noted the tension between flood and drought management, suggesting improved rainwater harvesting could address both issues simultaneously. Peter also highlighted how technological shifts, particularly the increasing use of AI, will likely transform industrial and commercial water demands, necessitating careful regional planning and innovative approaches.
Innovation and Behaviour Change, Benjamin Gardner, University of Surrey
Benjamin Gardner from the University of Surrey addressed innovation and behavior change, emphasizing that education alone is insufficient to drive change. He presented the COM-B model (Capability, Opportunity, Motivation) for behavioral diagnosis and shared research using shower sensors to influence water consumption habits.
Discussion facilitated by Claire Spendley, Waterwise
The roundtable discussions revealed that financial considerations, business continuity risks, and ESG credentials are primary motivators for water efficiency. Participants called for water use to be included in mandatory reporting (similar to ESOS energy reporting) and emphasized the need for a national narrative comparable to Net Zero initiatives.
The event concluded with a call for better data access and a consistent narrative to turn awareness into action—a sentiment that aligns perfectly with our ongoing research at SERG. As we continue our work on sustainable resource management, we remain committed to developing the evidence base and practical tools that businesses need to address the growing challenge of water scarcity in the UK.
Is there a way of creating a competitive advantage through water efficiency – increasing revenue opportunities, or offering water credits?