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1. Introduction
Our global economy runs on fresh water (Alliance for Water Stewardship [AWS], 2019a) and water crises have been consistently ranked within the top five most impactful global risks since 2012 (World Economic Forum, 2018). If water issues are not addressed, the World Bank (World Bank, 2016) predicts that countries across the globe face the prospect of a reduction in the gross domestic product by as much as 6% by 2050. More than just a risk in itself, water use is closely interconnected with several of the greatest social and environmental risks currently faced by society as a whole, including environmental degradation, rising urbanization and climate change (World Economic Forum, 2018).
In that context and in light of growing concerns about water risks and the impact of water use on current and future operations (CDP, 2017), leading firms around the world are focusing more of their attention on corporate water reporting (CWR) in its various dimensions (Pedersen et al., 2017; Sánchez-Hernández et al., 2017; CDP, 2018; Weber and Saunders-Hogberg, 2018). In this research, CWR refers to reporting on actions taken by a company to measure its water use and discharge, assess the local water context and impacts on watersheds, ecosystems and communities (accounting), as well as management practices applied to reduce water-related risks and impacts (Morrison et al., 2010).
Improved corporate water use is vital for companies seeking to ensure for water access, availability and reliability. It also has the potential to help companies avoid operational delays, unanticipated liabilities (e.g. contamination), conflicts with stakeholders, competition with rivals and provide greater potential for investment (CDP, 2018), among other considerations. In short, improved corporate water use provides companies with the opportunity to create and develop competitive advantages, while securing their social license to operate (Global Water Partnership, 2012; CDP, 2017). Beyond the direct benefits to individual firms and their respective stakeholders from improved corporate water use, such initiatives can also contribute sustainable development for the benefit of the broader society (Morrison et al., 2010), including the achievement of the United Nations sustainable development goals (SDGs) (UN General Assembly, 2015). Given the scale of corporate influence and impact on water use, the issue is no longer about whether companies should adopt responsible and...