As industries continue to expand and modernize across India, one foundational element remains under growing pressure-WATER, which powers processes, cools machinery, cleans equipment, and often becomes part of the final product. However, this lifeline of industrial progress is increasingly scarce and mismanaged. While industrial growth is crucial for national development, it cannot come at the cost of water sustainability. 

Today’s business leaders are not unaware of these challenges. Many recognize the looming threat of water scarcity, regulatory pressure, and climate-driven disruptions. However, awareness alone isn’t enough. What’s needed is a structured, long-term strategy to manage water wisely, not just within company boundaries but across entire ecosystems. This is where water stewardship comes into play. 

Understanding Water Stewardship- Going Beyond Your Fence

Water stewardship is not a mere extension of traditional water conservation efforts. It goes far beyond installing low-flow taps or recycling greywater. At its core, water stewardship is the responsible, sustainable, and inclusive management of water as a shared resource. It means going beyond your fence, both “In to Out” and “Out to In”- to understand how your operations effect and are affected by the surrounding watersheds, communities, and ecosystems.

This approach shifts the mindset from “How do we use water efficiently?” to “How does our water use impact others, and how can we contribute to a healthier water system for all?” In India, where rivers, aquifers, and catchments support households, agriculture, industry, and nature, this shift is not just noble, it is absolutely necessary. 

Wondering, why not call it water conservation? Yes, water stewardship starts with conservation- but it doesn’t end there. Conservation within your facility, while valuable, only addresses a small piece of the larger water puzzle. Unlike traditional water management, which looks at internal processes, stewardship takes a broader view, accounting for: 

• Local water stress and ecosystem health 

• Shared water sources with communities and agriculture 

• Collaboration with external stakeholders, including regulators and civil society 

• Supply chain impacts and dependencies 

This integrated, collaborative model is vital for industries to remain resilient and respected in the years ahead. 

Why Water Stewardship Matters

India is fast approaching a severe water crisis.  Millions of Indians are already experienced high to extreme water stress, and the situation is worsening due to poor management and climate change.  
 
As rainfall patterns become erratic and groundwater levels drop, industries, especially water-intensive ones like textiles, steel, beverages, and power, face frequent operational disruptions, higher input costs, and reputational damage. In places like Tirupur, Tamil Nadu, textile factories have been forced to shut down due to water shortages and pollution violations. 

These aren’t isolated incidents; they are signs of a broader systemic challenge. And the risks are no longer limited to operational downtime. Rising water stress leads to increased input costs, tighter regulations, public backlash, and loss of investor confidence.

The Unique Water Challenges Facing Indian Industries

Water-related challenges in India are multidimensional. Here’s why it is crucial for businesses to move beyond short-term fixes and adopt holistic stewardship strategies. Key challenges include: 

• Industrial demand for water is expected to rise by 40% by 2030. 

• Over 70% of surface water is polluted, primarily from untreated industrial discharge. 

• Climate change is aggravating groundwater depletion through irregular monsoons and rising temperatures. 

These challenges directly affect production, pricing, investor confidence, and community relations, making it critical for businesses to develop robust water stewardship strategies today.

The Spectrum of Water-Related Risks in Industry

Water risks are not limited to drought or scarcity. They manifest in several interconnected ways, all of which can undermine business continuity, brand reputation, and financial performance. 

1. Physical Risks

These are the most visible and immediate. When water isn’t available, or is available in poor quality, it directly affects production and machinery. 

• Water Scarcity: Shortages delay or halt operations. Companies like Carlsberg and MRPL have already experienced such disruptions. 

• Water Quality Issues: Impure water leads to higher treatment costs and damages machinery. For instance, paper mills often require expensive filtration to handle high-conductivity water. 

• Supply Chain Disruptions: Crops like sugarcane and cotton, essential for various industries, are highly water-intensive. Any disruption in the water supply affects raw material availability. 

• Rising Costs: As scarcity grows, so do water tariffs and compliance costs. 

2. Regulatory Risks

Water use is now closely monitored and regulated in India. New rules are emerging, especially in states facing severe water stress. 

• Withdrawal Restrictions: The Central Ground Water Authority (CGWA) has imposed strict withdrawal norms in overexploited zones. Companies operating in these regions must comply or face legal action, including fines or closure. 

• Zero Liquid Discharge (ZLD) Mandates: In Tamil Nadu, for instance, textile industries must implement ZLD systems to prevent any wastewater from being released into the environment. 

• Mandatory Technologies: New compliance requirements are emerging that mandate the use of specific treatment technologies or sustainability certifications. 

3. Reputational Risks

Public scrutiny around corporate water use is intensifying. Companies that misuse or deplete local water resources face social backlash and long-term brand damage. 

• Community Conflicts: A prime example is a major beverage company’s bottling plant in Plachimada, Kerala. Accusations of groundwater depletion led to protests and widespread media attention, forcing the company to shut the facility and suffer global reputational harm. 

• Loss of Social License to Operate: Even if legally compliant, operations can be stalled if communities perceive them as exploitative. 

• Investor Scrutiny: Institutional investors now view water as a critical Environmental, Social, and Governance (ESG) metric. Companies with poor water stewardship may find it harder to attract investment. 

The Business Case for Water Stewardship

Many businesses still view water stewardship through a compliance lens. But forward-thinking companies are realizing that it offers tangible financial and strategic advantages, such as: 

• Reduced operational costs through efficiency 

• Increased investor trust and ESG ratings 

• Regulatory preparedness and smoother audits 

• Enhanced brand value and customer loyalty 

To illustrate, let’s look at two widely adopted water stewardship models: the Alliance for Water Stewardship (AWS) certification and Zero Liquid Discharge (ZLD) systems. 

Alliance for Water Stewardship (AWS)

The AWS certification is an internationally recognized framework that enables companies to manage water sustainably, not just within their operations, but also in the context of the wider environment and community. The AWS framework is built around a 5-step standard system:  

Step 1: Gather and Understand

Organizations begin by collecting data on water usage, quality, quantity, and governance. This involves: 

• Defining operational boundaries and identifying water sources. 

• Understanding local water challenges and risks within the watershed. 

• Engaging stakeholders to assess shared concerns and potential impacts. 

Step 2: Commit and Plan

This phase involves formalizing a commitment to water stewardship by: 

• Creating a purpose statement aligned with the organization’s values. 

• Setting measurable objectives and targets based on local context. 

• Developing a comprehensive Water Stewardship Plan. 

Step 3: Implement

The plan is put into action through targeted strategies such as: 

• Improving internal water management practices. 

• Collaborating with local stakeholders to address shared water risks and challenges. 

Step 4: Evaluate

Organizations assess their efforts by: 

• Reviewing performance internally and through third-party evaluations. 

• Using data to track progress toward set goals. 

• Updating the Water Stewardship Plan based on new insights or emerging risks. 

Step 5: Communicate and Disclose

Transparency is key in this final step, which involves: 

• Sharing water governance outcomes and performance metrics. 

• Publicly disclosing progress and stakeholder engagement efforts. 

• Promoting awareness and encouraging broader community participation. 

This model encourages organizations to move beyond internal efficiency and adopt a collaborative, catchment-based approach that supports environmental sustainability, social equity, and long-term water security.

Case Study: Ecolab’s Taicang Facility in China

Ecolab’s manufacturing plant in Taicang became the first in the world to achieve AWS certification. By adopting the AWS framework, the facility was able to optimize its water use internally, reducing consumption and improving process efficiency. More importantly, it engaged local stakeholders to address shared water challenges, such as regional scarcity and pollution. This collaboration not only improved Ecolab’s local reputation but also boosted its global brand image as a sustainability leader. 

For Indian industries, adopting AWS can be particularly impactful. Given India’s acute water stress and growing regulatory expectations, AWS provides a structured pathway to balance industrial growth with water sustainability—while also meeting international ESG benchmarks. 

Zero Liquid Discharge (ZLD)

Zero Liquid Discharge (ZLD) is a technological approach to wastewater management that ensures no liquid waste is released into the environment. Instead of discharging treated water, ZLD systems treat and recycle every drop, making the facility self-sufficient in water use. 

Here’s how a typical ZLD system works: 

• Effluent Treatment: Wastewater generated during industrial processes is thoroughly treated to remove all contaminants. 

• Water Recovery: Once treated, clean water is recovered and sent back into the plant for reuse—be it for cooling, cleaning, or production. 

• Solid Waste Handling: The remaining sludge or waste concentrate is then either repurposed for other uses (such as construction material) or safely disposed of in compliance with environmental norms. 

The Key Benefits of ZLD

The ZLD approach delivers several strategic advantages. It reduces dependency on freshwater sources by up to 90%, a critical benefit for industries operating in water-scarce regions. By ensuring no discharge, it also prevents pollution of nearby rivers, lakes, or groundwater, thereby helping companies comply with strict environmental laws.  

Moreover, by demonstrating a strong commitment to sustainability, businesses that adopt ZLD often enjoy better relationships with local communities and regulators, further reducing operational risks. 

Example: Tamil Nadu’s Textile Sector

Tamil Nadu is a frontrunner in implementing ZLD, particularly in the textile industry, which is known for its heavy water usage and pollution potential. Faced with increasing water stress and pollution-related protests, state authorities made ZLD mandatory for textile units. As a result, factories in Tirupur and other hubs now recycle up to 95% of their wastewater. This has led to a significant drop in freshwater extraction, improved industry compliance, and reduced tensions with local communities.

The Larger Payoff: What Water Stewardship Unlocks for Business

Water stewardship offers far-reaching benefits that go beyond mitigating risks. It creates long-term value across multiple aspects of business operations and strategy. 

1. Cost Reduction 
Implementing recycling systems can reduce industrial water costs by up to 30%. Rainwater harvesting further cuts reliance on expensive municipal supplies, while efficient water systems also lower energy use and carbon emissions. 

2. Risk Mitigation 
Proactive water management enhances resilience to supply disruptions, droughts, and water quality issues. It also reduces the risk of regulatory fines, shutdowns, and community opposition. 

3. Reputation and Trust 
A strong water stewardship strategy improves investor confidence and attracts sustainability-conscious consumers. It also positions the brand as a responsible leader and helps retain talent that values purpose-driven workplaces. 

4. Innovation and Market Growth 
Water stewardship fosters innovation in eco-friendly technologies and circular processes. It enables access to new customer segments and ensures compliance with sustainability regulations in both domestic and global markets.

Strategies Businesses Can Adopt for Smarter Water Use

Creating a resilient water strategy requires businesses to think beyond their factory gates. They should combine internal improvements with community engagement. Here are five practical strategies businesses can adopt to become smarter and more sustainable water users: 

1.) Rainwater Harvesting 

Rainwater harvesting (RWH) involves capturing and storing rain from rooftops, paved surfaces, or open grounds for future use. Though relatively simple to implement, RWH can make a significant difference in water-scarce regions. 
 
Infosys, the major Indian IT company, has implemented rainwater harvesting across all its campuses. In its Hyderabad campus alone, they’ve installed recharge pits and storage tanks that help collect millions of litres of rainwater annually, used for landscape irrigation, cooling towers, and flushing systems. 

2.) Water Recycling 

 Water recycling focuses on treating wastewater generated during industrial processes and reusing it within operations instead of discharging it into the environment. Water recycling systems usually involve Effluent Treatment Plants (ETPs) or Sewage Treatment Plants (STPs), followed by advanced filtration techniques like Reverse Osmosis (RO) or Ultrafiltration (UF). 

PepsiCo’s plant in Pune has implemented a comprehensive wastewater recycling system that allows them to reuse nearly 100% of the water in non-potable applications like cleaning and cooling. This has reduced their freshwater dependency drastically. 

3.) Efficient Equipment 

A significant portion of industrial and commercial water use can be reduced simply by using more efficient fixtures and equipment. Installing aerated taps, low-flow toilets, sensor-based faucets, and closed-loop cooling systems can significantly reduce water wastage.  

For example, switching from once-through cooling to recirculating systems in a manufacturing plant can reduce water usage. Similarly, retrofitting high-volume flushing systems with dual-flush valves can cut toilet water use by 50% or more. 

4.) Green Infrastructure 

Green infrastructure refers to natural and semi-natural systems designed to manage water sustainably. It’s especially effective in urban and industrial zones where impermeable surfaces lead to flooding and runoff pollution. 

Components like bioswales, permeable pavements, green roofs, and rain gardens help reduce runoff, filter pollutants, and promote groundwater recharge. For industries with large paved areas, replacing concrete with permeable interlocking blocks can prevent waterlogging and improve water infiltration into the soil. 

5.) Stakeholder Collaboration 

True water stewardship isn’t limited to company premises. Industries that engage with local communities, farmers, and governments help build trust and solve water challenges more effectively. 
 
Collaborative projects may include building check dams, community tanks, or recharge wells in shared watersheds. Businesses can also co-invest in real-time water quality monitoring systems for rivers and groundwater sources, fostering transparency and proactive resource management.

Role of Chola MS Risk Services

Implementing water stewardship can often feel overwhelming, especially for industries navigating complex regulations, diverse operational needs, and increasing stakeholder expectations. This is where Chola MS Risk Services plays a transformative role.  

As a trusted partner to some of India’s leading industrial players, Chola MS brings deep expertise in identifying water-related vulnerabilities and guides businesses through evolving regulatory frameworks, helping them achieve and maintain compliance with water usage, discharge, and sustainability mandates.  

Here’s how we support industrial clients: 

• Comprehensive risk assessments to uncover water-related vulnerabilities 

• Expert guidance on compliance and new regulatory norms 

• ESG-focused reporting that integrates water metrics 

• Process optimization to reduce consumption and improve efficiency 

• Support for community engagement and basin-level collaboration 

• Insurance solutions that factor in water risk scenarios 

For organizations aiming for Alliance for Water Stewardship (AWS) certification, Chola MS provides a structured, end-to-end approach that includes: 

• Gap Assessment – Identifying your current position against AWS standards 

• Implementation Support- Step-by-step guidance to meet certification requirements 

• Impact Evaluation & Assurance- Ensuring actions are effective, measurable, and globally aligned 

This hands-on support helps businesses achieve credible and sustainable water stewardship outcomes. 

Looking to explore more? Check out our other blog The Importance of Driver Management Centers for Logistics and Road Safety

Moving From Risk to Opportunity

The era of industrial water abundance is over. In its place is a new era of accountability, resilience, and collaboration. For Indian industries, water stewardship offers a practical, powerful pathway, not just to mitigate risks but to build a sustainable, competitive advantage. 

The question is no longer whether you should invest in water stewardship, it’s whether you can afford not to. Businesses that act today will find themselves better equipped to cut costs, future-proof operations, and strengthen relationships with investors, communities, and regulators. 

With the right approach and the right partners, like Chola MS Risk Services, that journey becomes far more achievable and impactful. Let water stewardship be the cornerstone of your growth, resilience, and responsible leadership in a water-stressed future. Contact us to learn more.