The Role of SMEs in Achieving Water Sustainability Goals

Water sustainability has become a critical global concern as growing populations and climate change exacerbate water scarcity. While large corporations often dominate discussions on environmental impact, small and medium-sized enterprises (SMEs) collectively hold tremendous potential to contribute to global water sustainability goals. With millions of SMEs worldwide, their actions—however small—can aggregate into substantial change.

Water is a finite resource essential for life, yet water security is under constant threat.  According to the United Nations, nearly 2 billion people globally lack access to safe drinking water, and by 2030, demand is expected to outpace supply by 40%.

Businesses, which consume vast quantities of water in production and operations, are integral to tackling this crisis.

While multinational corporations often face scrutiny for their water usage, SMEs, which make up more than 90% of businesses worldwide, are equally vital in addressing water sustainability. Their decentralised nature and local operations mean they are uniquely positioned to implement water-saving strategies directly impacting their communities.

Individually, an SME’s water consumption may seem negligible. However, when aggregated, SMEs account for significant water usage across industries. Their environmental impact spans agriculture, manufacturing, retail, and services, often relying on water-intensive supply chains and operations.

Despite this, SMEs are often overlooked in water sustainability conversations. This gap highlights an opportunity for SMEs to step into a leadership role, not only in adopting sustainable practices but also in influencing larger networks, including suppliers and customers.

SMEs can adopt several strategies to reduce their water footprint while aligning with sustainability goals:

 

    1. Implementing Water-Saving Technologies

Technology offers a range of solutions tailored to SMEs:

• Low-Flow Fixtures: Replacing standard faucets, toilets, and showerheads with low-flow alternatives can significantly reduce water use.
• Smart Water Meters: These devices provide real-time data on water consumption, helping identify inefficiencies.
• Rainwater Harvesting Systems: Collecting and reusing rainwater for non-potable purposes, such as cleaning or irrigation, reduces reliance on municipal water supplies.
• Industrial Water Reuse Systems: For manufacturing SMEs, these systems treat and recycle water for repeated use in processes like cooling or cleaning.

 

   2. Recycling and Reusing Water

    Innovative practices in water recycling and reuse can drastically lower consumption:

• Greywater Systems: These systems treat water from sinks or washing machines for reuse in landscaping or toilet flushing.
• Closed-Loop Systems: In industries like food production or textile manufacturing, closed-loop water systems recycle water within the production process, minimising waste.
  
  

    3. Collaboration for Greater Impact

    SMEs can amplify their sustainability efforts by partnering with external organisations:

• NGOs and Community Groups: Collaborating with local water conservation programs ensures that SMEs contribute to broader regional sustainability goals.
• Government Programs: Many governments offer grants or technical support for businesses investing in sustainable water initiatives. 
• Supplier Networks: SMEs can encourage their suppliers to adopt water-efficient practices, creating a ripple effect across the supply chain.

Focusing on water sustainability is not only an ethical responsibility but also a strategic advantage for SMEs:

1. Reduced Costs

Efficient water usage translates to lower utility bills and reduced operational expenses. For example, a small brewery implementing water-saving equipment may cut costs while maintaining or even enhancing production efficiency.

 

2. Enhanced Reputation

Consumers increasingly prioritise environmentally responsible brands. By adopting water sustainability practices, SMEs can position themselves as leaders in sustainability, attracting eco-conscious customers and investors.

3. Compliance with Regulations

As governments tighten environmental regulations, proactive SMEs are better positioned to comply with evolving standards, avoiding potential fines or restrictions.

4. Contribution to Global Goals

By integrating sustainable practices, SMEs play a direct role in achieving United Nations Sustainable Development Goal 6, which aims to ensure the availability and sustainable management of water for all.

•     Sierra Nevada Brewery (USA): This small brewery has implemented closed-loop water         systems, reducing water use by nearly 25%. Their efforts have set an industry standard           for sustainability.
  
  
•     Mud Jeans Fashion SME (Netherlands): This eco-friendly clothing brand uses water-              saving dyeing techniques and recycled materials to minimise water use in production.
  
  
•     Phyn Tech Startup (USA): Phyn, a water monitoring SME, offers IoT devices to track and       reduce household and small business water consumption.
  

SMEs are often viewed as the backbone of global economies. Their ability to innovate and adapt quickly makes them key players in the fight against water scarcity. By prioritising water efficiency, adopting sustainable practices, and engaging employees and partners, SMEs can drive significant change while reaping financial and reputational benefits.

The journey toward water sustainability begins with a single step. SMEs have the tools, strategies, and potential to make a meaningful impact—one that benefits both their businesses and the planet. Together, they can ensure a future where water remains a resource accessible to all.

 

Visit our Water Hub to explore practical water management solutions for SMEs and get started with our SME Water Checklist (attached below).