With water scarcity becoming a growing concern and rising utility costs, businesses are realising that water audits are not just an environmental responsibility but also a financial necessity.
How to Conduct a Water Audit for Your Business
Mar 24, 2025 | 5 Min Read
Table of Contents
What Is a Water Audit?
A water audit is a systematic evaluation of how much water your business uses, how it’s being used, and where waste may be occurring. Conducting a water audit is a crucial step for small and medium-sized enterprises (SMEs) looking to reduce water consumption, cut operational costs, and implement sustainable practices.
By identifying inefficiencies, businesses can implement strategies that reduce water usage, improve efficiency, and align with sustainability goals. This guide will walk you through the steps of conducting a water audit and offer practical tips for making the most of your audit results.
Step 1: Understanding Your Water Consumption
The first step in a water audit is understanding how much water your business consumes and where it is being used. Start by reviewing your water utility bills over the past 6 to 12 months to gain insight into your average monthly consumption. Look for any spikes or unusual patterns, as these may indicate inefficiencies or leaks.
To get a clearer picture of your water use, consider installing smart water meters that can track water usage in real time. These meters can help you pinpoint areas where excess water is being used. Monitoring systems will also allow you to track trends and monitor consumption on a regular basis. This data is essential for the next step of the audit.
Step 2: Identifying Areas of Water Waste
Once you’ve gathered your water consumption data, it’s time to evaluate how and where water is being used. Some common areas of waste in SMEs include:
1. Leaks:
Even small leaks can lead to significant water waste over time. Inspect pipes, faucets, toilets, and other water fixtures regularly to identify leaks. Fixing leaks quickly can result in immediate water and cost savings.
2. Inefficient Fixtures:
Old or outdated equipment, such as faucets, toilets, and dishwashers, may use more water than necessary. Consider replacing these fixtures with low-flow models that use less water without compromising performance.
3. Overuse in Landscaping:
If your business has landscaping or irrigation, ensure the system is optimized to minimise water waste. Consider installing drip irrigation, which targets the root system and reduces evaporation.
4. Cooling Systems:
Cooling systems in factories, offices, or commercial buildings can use substantial amounts of water. Review the efficiency of your cooling systems and explore alternatives like air-cooled or closed-loop systems.
Conducting a thorough inspection will help you identify water waste in your operations and understand where improvements are needed.
Step 3: Setting Benchmarks and Goals
After identifying areas of water waste, set measurable targets for water reduction. Benchmarks should be based on the data you collected during the audit. For instance, if you discovered that your business is using a significant amount of water for landscaping, set a goal to reduce irrigation water use by 20% within the next 12 months.
It’s essential to set realistic goals. Establishing incremental targets will allow you to track progress and adjust strategies as needed. You might aim for an initial 10% reduction in water usage, with the goal to expand that to 25% or more in subsequent years.
Step 4: Implementing Solutions
With a clear understanding of your water usage and established goals, it's time to implement solutions. These could range from simple fixes to more advanced technological upgrades. Some effective measures include:
1. Upgrading Fixtures and Appliances:
Replace old toilets, faucets, and showers with water-efficient models. Low-flow fixtures can drastically reduce water consumption with minimal investment.
2. Employee Training:
Educate employees about water-saving practices, such as turning off faucets when not in use and reporting leaks promptly. An informed workforce can help reduce overall water waste.
3. Investing in Water-Efficient Technologies:
Consider technologies like greywater recycling systems, which allow you to reuse water from sinks and showers for non-potable uses, or rainwater harvesting systems for irrigation.
4. Automated Irrigation Systems:
Install smart irrigation controllers that adjust watering schedules based on weather conditions, ensuring your landscaping receives only the water it needs.
5. Maintenance and Regular Checks:
Ensure that systems are regularly maintained to prevent leaks and inefficiencies from creeping back in.
By implementing these strategies, you can reduce water consumption and lower your water bills while contributing to the sustainable operation of your business.
Step 5: Reviewing and Monitoring Progress
Once you’ve implemented your water management plan, it’s essential to continue monitoring your water use regularly. Establish a schedule for checking your water meters and utility bills to ensure that your water consumption is on track to meet your goals. Regular reviews will help you identify any areas where further adjustments are necessary.
Consider conducting follow-up audits annually or bi-annually to measure progress, assess the effectiveness of your solutions, and uncover new opportunities for improvement. Tracking your water savings over time can also provide valuable insights for future investments and can help you stay ahead of potential regulatory changes regarding water usage.
Water Audits are Good for Businesses and the Environment
Starting your water audit today will put you on the path to long-term savings and operational improvements. Whether you’re looking to lower utility bills or increase your eco-friendly credentials, water management is a key area for your business's growth and success.
Head over to our Water Hub for more information on how water scarcity, conservation and pollution directly impacts businesses. Get started on your sustainability journey today by using our SME Water Checklist to assess and improve your water management.
SME checklists:
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