Across industries, companies are facing mounting water challenges. Drought, flooding, pollution, and competition for supply are no longer isolated events. They are becoming regular features of a changing climate and shifting regulatory landscape. These risks directly impact operations, compliance, and reputation.
In response, many organizations have focused on improving water efficiency. This is often a logical first step. Reducing water use per product or process can generate immediate cost savings and demonstrate early action on sustainability.
But efficiency has its natural limits because it focuses exclusively on what happens inside the facility. In regions where water availability is already stressed, saving water at a single site may do little to protect the health of the overall watershed. Without understanding broader water dynamics, companies risk missing the bigger picture.
To ensure long-term resilience, companies must move beyond efficiency and begin practicing water stewardship. This broader approach considers the local context, the shared nature of water, and the importance of external engagement.
Efficiency and Stewardship: Different Functions, Different Outcomes
Despite their similarities, water efficiency and water stewardship are not interchangeable, and understanding the difference is essential for building a complete strategy.
Water efficiency is focused on optimizing how water is used internally. It usually includes, but is not limited to:
- Reducing water use from source
- Upgrading equipment for better performance
- Reusing and recycling water in processes
- Monitoring and reducing losses
These measures are important and usually easy to quantify, which is why many companies begin their water programs here.
Water stewardship, by contrast, builds on internal action and expands the scope to include external engagement, such as:
- The condition of the local watershed
- The availability and quality of water in the region
- The needs of other water users, including communities and ecosystems
- The long-term sustainability of supply
Efficiency looks inward. Stewardship looks inward and outward. A factory may be efficient and still operate in a degraded watershed. Stewardship asks: Are we contributing to watershed health? Are we managing shared risk?
This shift in mindset from site-level savings to system-level impact is critical. Many companies evolve in this direction over time, starting with efficiency and moving toward stewardship as they begin to see their broader role.
Water Stewardship in Practice
Water stewardship is already being put into practice across industries. Often, it starts with aligning company water goals with local realities. Instead of applying one-size-fits-all global targets, leading companies ask: What are the challenges in this basin? Who else depends on this water? What actions will make a difference?
Inogen Alliance partners seek to turn these insights into action. In India, our partner Chola MS Risk Services has worked with consumer goods and beverage clients to improve aquifer recharge and support rural water governance. These companies shifted from factory-level efficiency goals to initiatives that support local catchment restoration and village water budgeting. These projects are not just technically sound — they also improve relationships with local communities and build long-term support for operations.
Similarly, companies using frameworks such as the Alliance for Water Stewardship (AWS) Standard are moving from site-focused water savings to watershed-focused planning. This includes working with other stakeholders, setting shared goals, and tracking impact over time.
Why This Matters for Global Companies
Multinational organizations operate across very different water contexts. One facility might face severe drought, while another is managing flood risk. Water governance and regulations vary widely, and stakeholder expectations differ by country and culture.
Water efficiency alone cannot address these differences. In some locations, the main issue may be water quality. In others, it may be competing demands for limited groundwater or a concern over how polluted that water has become. Uniform targets such as “reduce water use by 25 percent” often overlook local realities and may not deliver meaningful impact.
By contrast, water stewardship allows for a more flexible and effective approach, creating consistency at the corporate level while adapting to local conditions. This is essential for managing water risk and aligning with emerging sustainability expectations.
Stewardship also supports Scope 3 water disclosures, CSRD-aligned reporting, and investor priorities. As ESG metrics evolve, water-related indicators are receiving more attention. Companies that demonstrate meaningful engagement beyond their facilities are better positioned to meet stakeholder demands.
Getting Started With Water Stewardship
It pays to be aware of water stewardship, but just thinking about it isn’t enough; it’s time to take the next step. For organizations that are ready to tackle water stewardship head-on, keep in mind that it doesn’t require starting from zero. There are clear actions that can help bridge the gap between efficiency and stewardship:
- Conduct basin-level risk assessments. Understand where your high-risk facilities are located, what water sources they depend on, and what risks exist beyond the fence line.
- Engage local stakeholders. This includes government agencies, community leaders, NGOs, and other water users. Their perspectives are essential for understanding the full picture.
- Align internal goals with local realities. Rather than applying blanket targets, companies can set context-based water goals that reflect the specific needs and constraints of each region.
- Integrate water stewardship into ESG governance. Corporate sustainability frameworks should include water stewardship metrics, incentives, and reporting mechanisms to track progress across business units and regions.
Don’t Underestimate Local Insight
Water is local. The challenges facing a facility in northern Europe are different from those in Southeast Asia or sub-Saharan Africa. Even within the same country, watershed dynamics and cultural expectations can vary significantly.
Effective stewardship depends on local understanding. That includes knowledge of regulations, water infrastructure, stakeholder concerns, and climate variability.
Inogen Alliance provides support across more than 150 countries through our global network of local experts. This structure allows us to combine consistent global program management with deep local insight, helping clients turn strategy into action wherever they operate.
What’s Coming: Policy Shifts and ESG Expectations
The landscape for water management is changing fast. Over the next 3–5 years, companies can expect increasing pressure from regulators, investors, and customers to go beyond internal efficiency.
What should you watch out for in the coming years? Emerging developments include:
- Tighter regulations on water withdrawals, discharge, and reuse in countries like India and China
- Expanded disclosure requirements under frameworks like the EU CSRD and India’s BRSR
- Growing adoption of the Alliance for Water Stewardship (AWS) Standard, which encourages engagement at the catchment level
- Investor scrutiny of water risk, especially in supply chains
These shifts are pushing companies toward a more mature model of water management which treats stewardship as a strategic priority, not just a sustainability checkbox.
There’s No Better Time to Start: Become a True Water Steward
Your water strategy should reflect the scale of your impact and the complexity of the challenges ahead. Efficiency remains important, but it is not enough.
Is your organization managing water only within the fence line, or are you contributing to the long-term health of the watersheds you depend on?
If you are ready to move beyond water efficiency and toward full water stewardship, Inogen Alliance can help. Our global team of local consultants brings technical depth, policy insight, and practical experience to support your water strategy at every level.
Contact us to explore how we can support your water goals with global consistency and local delivery.
Inogen Alliance is a global network made up of over 70 of independent local businesses and over 6,000 consultants around the world who can help make your project a success. Our Associates collaborate closely to serve multinational corporations, government agencies, and nonprofit organizations, and we share knowledge and industry experience to provide the highest quality service to our clients. If you want to learn more about how you can work with Inogen Alliance, you can explore our Associates or Contact Us. Watch for more News & Blog updates, listen to our podcast and follow us on LinkedIn.
