Streamlined water stewardship standard now aligns with CSRD

The rigorous water conservation and management standard used by Nestlé, Apple, PepsiCo and others to certify production facilities has been streamlined and aligned more closely with European environmental rules required under the Corporate Sustainability Reporting Directive.

The International Water Stewardship standard (also known as the AWS Standard) is managed by the Alliance for Water Stewardship, an organization with more than 240 members including big brands like the Coca-Cola Co., Diageo and Unilever.

Version 3.0 of the framework was developed after a two-year consultation that included more than 100 organizations.

It includes 72 requirements across 23 criteria covering water consumption, withdrawal, discharges, recycling/reuse and storage, along with broader biodiversity and nature impacts. That’s a 27 percent cut from the previous version, which the alliance hopes will encourage deeper corporate adoption.

The update also recognizes the use of desalinated water and includes new tools for helping companies identify water-related risks triggered by climate change.

Growing water risks

More companies are prioritizing water stewardship as part of their environmental agenda: There was a 100% increase in businesses reporting on water to disclosure firm CDP in 2024, and they reported an estimated $339 billion in potential financial impacts linked to water risks.

“Water, increasingly, if it’s not already on your agenda, it’s time for it to be there,” said Amazon Chief Sustainability Officer Kara Hurst, during a recent panel discussion about artificial intelligence and sustainability, pointing to data that shows only one in four people globally has access to safe water.

“It’s become a critical issue for us to pay attention to, for the health of our businesses, for the health of our communities,” she said.

Regulatory factors and risk management concerns are both motivating action. “CSRD is one reason that water is getting more attention,” said Scott McCready, chief strategy officer for the Alliance for Water Stewardship. “The other aspect is climate change. Water has become unpredictable.”

More than 400 sites were certified under previous editions of the AWS Standard, including all eight of Apple’s company-owned data centers, all PepsiCo manufacturing sites in water-stressed regions and all of Nestlé’s 39 water bottling sites.

“We remain committed to protect, restore and return water where we operate,” said Muriel Lienau, CEO of Nestlé Waters and Premium Beverages, in a statement. “Water resilience has a growing awareness on the international agenda, and we know no one can achieve this on their own.”

The AWS Standard has been downloaded more than 24,000 times, and many companies use it for water strategy even if they haven’t paid to have them certified, McCready said. The standard is updated every five years.

Companies are required to refresh their certifications every three years. Those seeking recognition for the first time will need to use the revised standard, but those with existing certifications don’t need to update them immediately.

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