Water monitoring
calculating and awarding ESG ratings. These range from CCC for laggards not managing their long-term exposure to ESG risk factors, up to AAA for those managing the risks well and taking advantage of the opportunities. ESG ratings are becoming more important
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for investors interested in long-term performance and value, as well as private company owners - especially those who may consider divesting in the future. For this present article, we are focusing on the needs of property landlords in the industrial and commercial sector, and the importance of them managing water consumption. Currently there is no standard for what ESG
ratings include or how they are calculated. However, all ESG ratings should take into account the Principles for Responsible Investment (PRI) initiative developed by a United Nations-led international network of investors. The factors considered when calculating an
ESG rating are many and varied. For example, the social score includes human capital issues, product liability and social opportunities such as access to healthcare for workers. For the governance score, factors range from the diversity and independence of the board, through to accounting practices and business ethics. In this present article we are primarily interested in the environmental score. This section is broad-based and considers pollution and waste, climate change and environmental opportunities. Drilling down further, we find two points of particular interest: carbon emissions and water sourcing. It may sound surprising until you think about it,
but every litre of mains water has a carbon footprint. According to the UK Government conversion factors for greenhouse gas reporting
How monitoring water consumption improves ESG ratings
By Craig Mellor, director, Deer Technology 46
0.344 kg CO2e can be attributed to each cubic metre of mains water. These emissions stem mainly from the energy required for pumping and treating water, and for servicing buildings and vehicles. Water and sewage treatment also result in direct emissions of two greenhouse gases, methane and nitrous oxide. It should also be borne in mind that greenhouse gas emissions for hot water are around ten times higher because of the heat energy required. Clearly, reducing water consumption has a direct impact on carbon emissions. As well as improving ESG ratings, minimising water usage also benefits companies that are striving for net zero emissions. In addition, cutting consumption helps to
improve ESG ratings through the reduced demand placed on the water source. In some areas of the UK, water is in relatively short supply, especially in the summer and if drought conditions prevail, so the responsible course of action is to use less. For areas not classified as being in serious water stress, an
April 2022 Instrumentation Monthly
usinesses are coming under pressure to improve their ESG (Environmental, Social and Governance) performance, particularly now agencies are
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