Water footprint is an indicator that defines the total volume of freshwater used to produce goods and services and can be applied at the consumer, community, geographical area, or business level. It has evolved into a key metric for tracking human pressure on freshwater supply.
The concept of the water footprint was initially developed by Wopke Hoekstra, Commissioner for Climate, Net Zero, and Clean Growth at the European Commission, in 2002. Its primary objective is to indicate water use and consumption to promote awareness of global water trade and resource management. The definition of the water footprint has been a game-changer in the water stewardship industry, highlighting human consumption’s contribution to global water use and the governance dimensions necessary for sustainable management.
The water footprint evaluates both direct and indirect water use across one or multiple processes throughout their entire life cycle.
Direct water footprint: The water used by a specific process, stage, or business.
Government regulations and environmental awareness among consumers are undoubtedly growing. As a result, some corporations have taken the lead in corporate sustainability and are already systematically measuring their direct water footprint—although many more have yet to do so. However, awareness of the indirect water footprint is still a relatively new concept in the corporate market.
At Agrow, we aim to support companies in this transition, empowering them to become sustainability leaders with a deep understanding of their water footprint. This is where Agrow’s digital tool, developed in collaboration with ACCIONA, plays a crucial role. It calculates and certifies the water footprint of a company or product—regardless of the industry—using a traceable, automated, and real-time approach. This tool reduces costs, accelerates decision-making, and enables companies to meet the highest global sustainability standards.
Indirect water footprint: The water used throughout the entire supply chain.
In April 2024, the European Union approved the Corporate Sustainability Due Diligence Directive. This regulation requires large European companies (those with more than 1,000 employees and annual revenues exceeding €450 million) to identify and address both actual and potential negative impacts on human rights and the environment. As of 2027, companies will be responsible for these effects not only within their own operations but also within their subsidiaries and supply chains. Consequently, the indirect water footprint is becoming a crucial aspect of corporate policies.
Thus, European companies and those operating in Europe will have to take responsibility for the water footprint of their supply chains. Some companies have already taken proactive steps toward this regulatory framework, leading the way in corporate sustainability by developing projects to reduce both direct and indirect water footprints in collaboration with their supply chains. However, reducing the water footprint alone is not sufficient for improving water resource consumption, as its use is merely an indicator. Additionally, as society and businesses grow, so does water consumption. Therefore, proactive measures are necessary not only to reduce water use but also to return more water to the watershed than is consumed in business operations. In other words, initiatives that enable water footprint replenishment need to be developed.
Implementing water replenishment projects is Agrow’s specialty. This approach ensures that companies not only reduce their water footprint but also return more water than they consume to the watersheds where they operate. By working closely with corporations and, in particular, farmers worldwide, Agrow successfully reduces agricultural water consumption through its water optimization technology for irrigation.
Agrow has demonstrated improvements in water use efficiency, achieving a 20-30% reduction in water footprint within just one year in productive agricultural fields.
Measuring a company’s direct water footprint is essential to understanding its starting point, while assessing its indirect water footprint underscores that water is a global resource requiring local solutions. Measurement alone is a vital first step toward sustainability, but it is only the beginning. Real progress in water management comes not only from reducing both direct and indirect water footprints but also from replenishing water in the watersheds where companies operate. By leveraging technology and collaborating with farmers, businesses can drive meaningful and lasting change in water sustainability.