Author: Helena

  • Fresh water crisis: is it already out of control?

    Fresh water crisis: is it already out of control?

    Freshwater, the water found in rivers, lakes, and underground aquifers that we rely on for consumption and humans activities, makes up just 2.5% of all water on Earth. Yet we’re using it at a pace that has pushed us beyond the planetary boundary scientists define as our “safe operating space.”

    This overshoot is driven by a combination of climate change (disrupting precipitation patterns and the entire water cycle), population growth, and rapid urbanization, all of which are placing increasing pressure on already limited resources. As a result, the natural systems that regulate global freshwater stability are no longer functioning within the limits that allowed human societies to thrive

    And it starts closer to home than you’d think. Your morning coffee required roughly 140 liters of water to produce. A single cotton t-shirt? Around 2,700 liters. A kilogram of beef? Up to 20,000 liters. We interact with freshwater constantly, mostly without seeing it.

    As a result, the impacts are already cascading across sectors:

    • Human health: unequal access to safe drinking water is increasing health risks, compounded by PFAS contamination in water supplies
    • Agriculture: heavy reliance on irrigation makes food systems highly exposed to water scarcity
    • Industry (fashion, food, and more): water-intensive supply chains are increasingly at risk of disruption
    • Utilities: rising pressure on water supply and treatment infrastructure
    • Real estate: growing water stress is starting to affect asset value and long-term viability

    This is not a one-dimensional issue, but a dual crisis:

    • quantity, with rivers drying up, aquifers depleting, and glaciers retreating
    • quality, with pollution, wastewater, and agricultural runoff degrading what remains

    Both dynamics are accelerating, and both are hitting businesses where it matters most: operations, supply chains, and regulatory exposure. If water quality and monitoring do not improve, current data indicate that the health and livelihoods of 4.8 billion people could be jeopardized by 2030.

    This is where frameworks like the Science Based Targets Network (SBTN) come in, reflecting how water is increasingly being integrated into broader nature-related strategies. They provide a clear, science-based method to manage impacts at the scale where it matters most: local watersheds.

    At the same time, the NAT40 index, launched in 2026 by WWF France, represent the first benchmark enabling an independent assessment of CAC 40 companies’ maturity in addressing nature-related challenges. The index notably includes freshwater and Oceans, reflecting the importance of water within companies’ dependencies and impacts on natural systems. **Based on their regulatory disclosures, companies are scored out of 100: Kering leads with 52 (the only one above 50!), followed by LVMH (49) and Carrefour (48).

    Together, these frameworks and benchmarks mark a shift: from broad sustainability commitments to measurable, science-based accountability on water and beyond. Yet a major gap remains, while nearly 45% of global GDP is at risk from water-related challenges, only around 3% of climate-tech funding is directed toward water. Bridging this gap will be critical, and is increasingly emerging as a key frontier for nature finance.