Water Efficiency: Driving Profits and Sustainability in Today’s Business

Stephen Sheridan, Head of Account Management at Business Stream — one of the UK’s leading water retailers — sheds light on the urgent need for businesses to prioritise water efficiency. The pressure on firms to demonstrate real progress is palpable in an era where climate change dominates headlines. Whether reducing carbon footprints or boosting resource efficiency, every stakeholder — from customers and investors to regulators and employees — calls for more than just promises; they demand action.

Yet, amidst the fervent rush to decarbonise and meet sustainability targets, one essential resource remains largely overlooked: water. While it’s easy to assume that, living in a country known for its frequent rainfall, water shortages are a far-off concern, the reality couldn’t be further from the truth.

Water is one of our most precious and increasingly scarce resources. Within the next two decades, certain regions in England will face significant water shortages, with demand outweighing supply. The energy-intensive process of treating, heating, and reheating water is even more concerning, which further hampers efforts to achieve net-zero emissions.

Water has long been seen as a cheap commodity for businesses, but that era is rapidly coming to an end. With wholesale water price hikes set to take effect in April 2025, the cost of water will soar in some areas, compelling businesses to rethink their consumption habits.

Ofwat’s recent price review (PR24) has paved the way for wholesale charges to rise by an average of 42% over the next five years. This substantial increase will impact businesses across the UK. This price surge is part of a broader £104bn investment to improve environmental and customer outcomes, from service upgrades to better climate resilience. But the growing water bill burden is clear, and businesses will feel the pinch.

Wholesale water and wastewater charges will spike, especially in certain areas. Still, businesses can counterbalance some of these costs by reducing consumption. By tackling inefficiency head-on, companies save on rising water bills and contribute to a much-needed decrease in national water demand. As Business Stream continues to engage with wholesalers, our commitment to helping businesses reduce their water use remains steadfast.

Today, the technology available to businesses to manage water consumption is more advanced than ever. Smart meters and automated readers allow real-time, remote monitoring of water use, providing invaluable insights into patterns and spikes in consumption. This enables businesses to act swiftly, implementing changes before inefficiency becomes costly.

Our recently launched Power BI Intelligent Water Management (IWM) reporting gives businesses self-serve access to a range of reports, helping them analyse site-specific consumption data, track water-related carbon emissions, and uncover opportunities for savings. These insights not only empower businesses to take control but also allow them to visualise their actions' impact on their water use and the environment.

Recognising that financial support is crucial, we offer Scotland’s public sector organisations access to our £100,000 annual Water Efficiency Fund. This funding supports projects that deliver tangible benefits, such as installing waterless urinals and low-flow taps. These projects aren’t just about saving water; they also offer real carbon and cost savings, and interest in the scheme grows yearly.

In England, we collaborate with water wholesalers to fund water efficiency projects delivering measurable benefits. One notable example is our work with Severn Trent, where we conducted free water efficiency audits for businesses in the Midlands under Severn Trent’s Green Recovery programme.

Fostering a culture of water stewardship is essential. Our water stewardship programme, developed in partnership with 20Fifty, offers multi-site businesses the chance to train their teams to identify and implement water-saving opportunities. Through personalised mentoring and accredited courses, enterprises gain the expertise to make smarter water decisions — and they’re recognised for their efforts with a certification that demonstrates their commitment to sustainability.

The writing is on the wall: water costs are rising, shortages are looming, and climate change is escalating. But there’s hope — water efficiency offers a practical, cost-effective solution to each of these challenges. By understanding and reducing water consumption, businesses can cut costs and make significant strides in their environmental sustainability efforts.

As a water retailer, we feel a deep responsibility to promote water efficiency. We urge every business to take stock of its water usage and explore ways to make savings. Not only will they help protect a precious resource, but they’ll also unlock substantial financial and environmental benefits. And, as always, we’re here to support them every step of the way.