Learning from the likes of world leading companies in environmental services, SNE helps its customers meet their growth targets while fostering sustainable development. The True Cost of Water offers a practical new approach to achieving this goal.
Over the next few decades, projected population and economic growth levels will lead to even greater stress on water resources locally. Freshwater availability could become the main factor limiting the growth of cities and industries.
The development of water footprint indicators, such as Veolia's Water Impact Index has provided more insight into the vulnerability of an activity to water shortages and other issues.
Once its true worth is recognized, water will be better managed
The True Cost of Water is an approach developed by Veolia Water that combines traditional CAPEX and OPEX calculations with analysis of water risks and their financial implications.The True Cost of Water takes into account:
Direct water costs: capital & operational expenditures for water infrastructure.
Indirect water costs: existing costs that are usually not attributed to water, such as water-related legal costs.
Financial implications of water risks: unanticipated costs arising during the lifetime of a plant.
These elements are organized into four categories: operational, such as water shortages; financial, such as an increase in the cost of capital; regulatory, such as an obligation to meet environmental standards; and reputational, such as temporary loss of license to operate as a result of local pressure