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industrial waste. The combined effect of these stresses may impose barriers on the transfer of certain manufacturing activities to low income countries. Services such as The Global Water Tool (WBCSD, n.d.) are available to assist companies in evaluating the risks involved. In developed countries, industrial water use may be stabilizing due to increased efficiency and the move of some manufacturing plants to low income countries yet, at the same time, lack of access to water may hinder such moves, especially for water-dependent industries (Goldman Sachs, 2008). It is significant to note that 60% of the world’s industrial energy consumption is estimated to occur in developing countries and transitional economies (UNIDO, 2010). 8.2.4 Private enterprise Large companies and multinationals, particularly in the food and beverage sector, have been engaged for some time in improving water and energy efficiencies. One estimate suggests that the combined direct year’s consumption of five of the large food and beverage companies is enough to provide the basic water needs of the world’s population for one day (JPMorgan, 2008). Such companies often see the value of efficiencies in both monetary and societal terms. Nestlé, for example, has reduced its water use from 5 to 1.8 litres per dollar of sales over a ten-year period (McKinsey & Company, 2009a) and promotes CSR values (Nestlé Waters, n.d.). Other companies, such as those in the mining sector, are less advanced in achieving efficiency, as water is seen more as a compliance issue than a strategic resource (Sarni and Stanislaw, 2012). Small and medium-sized enterprises (SMEs) with 20 or fewer employees comprise more than 70% of enterprises in most economies (OECD, 2013a). They employ between 9% (USA) and 35% (Greece) of the workforce (OECD, 2013a), and figures from non-OECD countries are likely to be higher. Although SMEs as a group have the potential for making a significant impact on water and energy efficiencies, that impact is mostly apparent on a local scale. SMEs are commonly in need of equity capital and have fewer resources to improve efficiencies. Monetary assistance from financial institutions and expertise and capacity-building support may have catalysing impacts (e.g. UNIDO’s TEST programme, Box 16.4). Tourism, a major economic sector in many small developing countries, is affected by a set of unique challenges with respect to water and energy. Efforts are currently under way to increase the level of sustainability in industry operations (Box 8.1).’ 8.3 Water and energy metrics in industry Efficiency and improvement in water and energy need to be measured for benchmarking and future evaluation. Separate data and indicators are available for both water and energy use in industry. Industry is interested in measuring the cost effects on its profitability whereas governments and civil society are more focused on overall economic results, social benefits and the environment. Metrics comparing water and energy use to indicate the effects of one upon the other, both at plant scale and for countries as a whole, are necessary yet seemingly absent. In developed countries, industrial water use may be stabilizing due to increased efficiency and the move of some manufacturing plants to low income countries yet, at the same time, lack of access to water may hinder such moves, especially for water-dependent industries Water and energy audits are a starting point to benchmark a facility’s status, measure usage and identify areas for improvement. This information can be used to compile water and energy footprints. A water footprint is ‘the total volume of water used in the production of the goods and services consumed by an individual or community or produced by a business’ (WWAP, 2009, p. 101) and is usually quoted in terms of cubic metres of water per unit product. It is closely connected to the concept of virtual water, which is the ‘volume of water required to produce a commodity or service’ (Hoekstra and Chapagain, 2007, p. 36). This is an economic concept: the water embedded in traded goods. Virtual water is commonly presented in terms of litres of water per kilogram (WBCSD, 2006). Energy footprints, on the other hand, map energy flows from supply to end use; common examples for manufacturing sectors have been produced (US DOE, n.d.). These footprints indicate primary energy flow from both off-site and on-site (Figure 8.1) and the distribution of energy to on-site end uses. Other measures include water productivity, the monetary value of the product for each cubic metre of water used, WWDR 2014 INDUSTRY 71PDF Image | Water and Energy
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