Indirect Water Consumption: The Scope 3 of Water ? Estimation of this Indicator in Sectors Relying on Agriculture

Abstract

The aim of this research project is to assess indirect water consumption, that represents the water consumed in the upstream part of the production life cycle. Estimations are provided for agriculture related companies, as agriculture represents 70% of water consumption on Earth. This consumption varies greatly according to the countries where supply chain is located.

The estimation is attempted for 27 European listed companies in sectors relying on agriculture in its supply chain. A data is estimated for 22 companies, showing that indirect water consumption is much more important than direct one. Strategic questions raised through the estimation of indirect water consumption in various subsectors shows the interest in this data, which represents the equivalent of Carbon Scope 3 for water issues.

Keywords: water consumption, financial materiality, impact materiality, sustainability reporting

JEL Classification: L66, Q18, Q25, Q28