The True Cost of Water is a tool developed by Veolia that provides a holistic economic evaluation of risks and benefits related to water use. It helps operators anticipate, predict, prioritise and mitigate water-related risks that can have serious financial implications on a business’ bottom line. Ultimately, it helps companies mitigate production risks while optimising environmental impacts.
As a complete, holistic tool used to analyse the role of water in any given process, the True Cost of Water combines 3 types of cost:
- Direct costs: the per-litre cost of water, operational costs and investments in water-related infrastructure
- Indirect costs: the costs of administrative, legal and corporate social responsibilities
- Costs related to risks: these relate to the cost of potential infrastructure failures, including operational risks (such as flooding or a lack of required water); financial and regulatory risks; and costs related to reputational damage (including loss of licence, consumer boycotts, etc.)
The comprehensive assessment system of the True Cost of Water allows business decision makers to understand the entire role of water in their processes and the costs of potential fallout. In so doing, businesses can invest in sustainable solutions such as reuse and wastewater resource recovery.
Return on investments can now include risk-based costs because municipal and industrial organisations have access to vital information that allows them to implement appropriate strategies to navigate the best balance between risk and reward.
See this instructive video that takes you through the concept behind the True Cost of Water