18.5 gallons 155 gallons 599 gallons 36 gallons 2,867 gallons 20 gallons 600 gallons 1,857 gallons of freshwater of freshwater of freshwater of freshwater of freshwater of freshwater of freshwater of freshwater Leave No Footprint How Water “Footprinting” Can Change the World 634 gallons 49 gallons 108 gallons of freshwater of freshwater of freshwater by Alan Horton

n December 2008, a conference on corporate water Arjen Hoekstra, Professor of Multidisciplinary Water Management at all steps of its production chain. The of a consumer footprinting in San Francisco centered on the emerging study the in The , attended the conference is the sum of direct water use (laundering, bathing, etc.) and indirect What does water neutral mean? of corporate impacts on freshwater, taking into account not as a featured speaker. He fascinated the crowd with his presentation water use (water used to produce goods and services consumed by Hoekstra defines being water neutral as “reducing the just the direct water withdrawals for products, but the entirety on the emerging study of water footprints and what it means to “go the individual). The water footprint of a business consists of its direct water footprint of a product or activity as much as ofI a product’s supply chain including processing, shipping, retailing water neutral.” His seminal book on the subject, of Water, water use for producing, and supporting activities, plus reasonably possible and then offsetting the remaining its indirect water use, embedded in its supply chain. and consuming. Corporations attending the conference included co-authored with Ashok Chapagain, and some of his other published negative impacts of the water footprint.” Coca-Cola, Nestlé, Miller-Coors, Schweppes and other businesses works, including “Water Neutral: Reducing and Offsetting the Impacts defined with massive water footprints. The objective? To discuss strategies of Water Footprints,” continue to drive this new area of study. Since Much like being able to calculate an individual’s or In figuring out a consumer or business’s water footprint, Hoekstra for first reducing these footprintsand then offsetting the remainder, the beginning of the decade, Hoekstra has worked to refine the business’s carbon consumption, resources such as the considers the “virtual water” content of products. “Virtual” refers to much in the same way many businesses now offset their residual art of calculating water footprints and published several papers on Water Footprint Network offer online calculators for the fact that most of the water used in the production is ultimately not carbon footprint. Increasingly, businesses view their water footprint methodologies, implications and applications of water footprints for users to estimate their water footprint. Using these, contained within the product. Hoekstra says, “In fact, the real-water consumers and businesses can determine their overall as a significant cost that must be managed for long-term business individuals, companies, industries and nations. content of products is generally negligible compared to the virtual water footprint and then choose to support freshwater and ecological sustainability, even as consumers adopt increasingly What is a water footprint? water content.” For example, the real-water content in an 8-ounce cup restoration and other activities to offset the negative sustainable purchasing habits. At the 2007 World Wildlife Fund of coffee is 8 ounces. But it takes another 36 gallons of virtual water to environmental impact. annual conference in Beijing, Coca-Cola CEO E. Neville Isdell As the creator of the water footprint concept and science director at grow and process the coffee beans to brew that 8-ounce cup of coffee. famously pledged to take their global company water neutral, doing the Water Footprint Network, Hoekstra says that “the water footprint Example of a typical water footprint calculation: is an indicator of water use that looks at both direct and indirect water much to popularize the concept. Hoekstra further applies the virtual water concept to trade, in that the use.” The water footprint of a product is the volume of water used in Based on your country of residence and your own consumption trade of goods also includes the trade of the virtual water embedded pattern, you will have a unique water footprint. in those goods. Continuing with the coffee example: when Starbucks Country United States of America The Virtual Water Chain: Beef imports enough coffee from Costa Rica to make an 8-ounce espresso, Sex Female Male they are also ‘virtually’ importing the gallons of water used by the Costa Dietary habit Vegetarian Average meat consumer Rican farmer to grow the coffee beans. The total water footprint of the Supply Chain Water Footprint (WF) Operational WF End-use WF of a Product High meat consumer 8 ounce coffee must include all water impacts – direct from brewing What is your gross yearly income? 25000 US$ per year (a small amount) and indirect from growing (a larger amount). By (only the part of the family income consumed by yourself) assessing trade in this way, nations can better understand the actual Farmer/Rancher Food Processer Retailer Consumer Calculate my waterer fofootprint Components of your total water footprint impacts on water resources to drive trade policy. Jordan, for example, and comparison to the global average helps manage its meager domestic water resources by importing rather Your water footprint= than producing goods that have large water footprints. 1759 Hoekstra draws another link between global dietary change and water cubic meters per year consumption. For example, in China, annual beef consumption has increased from 44 pounds per person in 1985 to 110 pounds per This is a general and quick estimate of an individual Global Yours Food Industry Domestic person projected for 2009. The virtual water input of that increase is water footprint based on 1243 1759 955 614 189 29.9 Trillion Gallons 94.6 Billion Gallons 1 lb beef = 1,857 gallons of water staggering – roughly equivalent to Europe’s total annual water use. the average consumption pattern of a woman in Contribution of individual food categories In August, we talked with Professor Hoekstra about his work, the United States. An to your total water footprint summarized on the next pages. extended version of the TOTAL U.S. BEEF PRODUCTION REQUIRES 30 TRILLION GALLONS OF WATER water footprint calculator is available for most countries Equivalent to 16% of all U.S. water use, or enough to drain the Colorado River dry 6 times over Alan Horton works for The Freshwater Trust and can be reached at at www.waterfootprint.org Cereal Meat Vegetable Fruit Dairy Others [email protected].

14 freshwater freshwater 15 Arjen Hoekstra is a Professor of Canada – 0.23 Multidisciplinary Water Management China at the University of Twente in The France Netherlands and co-author of – 1.09 Globalization of Water + 2.72 Indonesia + 5.08

Q: Do you see awareness of virtual water in trade as a positive way in without compensation. If there is trouble caused to a third party, the which countries with fewer water resources might better manage those originating country, you should have a responsibility as a consumer to Australia Nigeria resources? make sure you are not harming others. USA USA + 8.61 – 3.09 A: It is too complex to simply say that trade is positive or negative. Q: There has been a lot of effort in recent years towards sustainable To start with, often trade has a positive side, because two trade production. In Oregon, for example, conservation entities work with partners decide to trade to benefit both parties. In that sense, trade farmers to improve their irrigation methods, improving farm production + 1.21 – 4.94 is always good. But then, there are many more things to say about practices in general. What you’re suggesting is that we need to spend more Others trade. Sometimes in the exporting country, there are product-related energy on asking consumers to take responsibility for what they consume. Others + 33.22 problems such as water depletion or water pollution that are not That would require having more information available for consumers so – 0.38 charged to the product user. So some goods leave the country for a they can make informed decisions. Iran cheap price, but the problems remain behind. So in that case, trade is A: Right. One of the things I promote is product transparency. If you clearly not so good, at least not for the country as a whole that has to + 5.67 don’t have that, you cannot blame consumers for consuming things cope with those impacts. Senegal Turkey that are causing problems. + 7.55 Argentina Q: Perhaps we see that in the United States, where many of our exports Thailand – 0.42 Q: So you developed the Water Footprint Network to help inform – 73.35 – 0.31 are agricultural. For example, corn is a key export for the U.S. and a key consumers and producers about impacts on water? Egypt ingredient in many products. The non-point source pollution from runoff from + and – in + 9.45 the production of corn, however, is a consequence that we as a nation have to A: I started to make the web site five years ago. The original idea Malaysia billions of gallons per year live with as a consequence of trade. Is that an example of the impacts that are was to share the research we did have on these impacts. But in + 3.74 not always included in the pricing of products to consumers? 2008, incredible interest arose around the water footprint concept from many different sectors worldwide. Interest in the concept is A: The rest of the world can thank the U.S. for exporting those products Thailand loses 73.35 billion gallons of water Egypt saves 9.45 billion gallons of water booming, from governments, non-governmental organizations, without putting the costs on us. The environmental costs remain in annually through the exportation of rice. annually through the importation of wheat. businesses, investors and the general public. Once I realized that the country. It seems attractive, because you have all those exports and people were taking the concept seriously, I also realized, along with receive all that foreign currency, but in the meantime your resources are people at the World Wildlife Fund, that we needed to protect the being depleted and deteriorated. A: This idea of trading water footprint permits, as I call it in the book, Hoekstra acknowledges that many hold a contrary view. Proponents of concept, so that we all speak the same language. Otherwise, we could is not a good idea anymore, in my opinion, because it is a bit too water trading argue that better accounting would improve the efficacy Q: In your book, you mention the impact of Europe’s consumption of rice repeat what happened with the carbon footprint. There are many complex to try and compare one water footprint unit with another of mitigation and offset efforts, and that pooling of resources from from Thailand. One of our great challenges in managing water resources is different methodologies to calculate the carbon footprint, so it is water footprint unit. It’s still an option, but another probably more inevitable development impacts, combined with improved regulation to improve understanding of those nearly invisible impacts from our own very difficult, if one claims to reduce a carbon footprint, to know convenient and straightforward way is to ask businesses that have that requires offsets be greater than one-to-one with impacts, offer consumption. If we consume this rice from Thailand, we would benefit from what that actually means. Since we realized that the water footprint a water footprint, consumers or communities, to set standards and significant potential benefits to natural resources. understanding the impacts of that rice production on Thailand’s ecosystems. could face a similar trajectory, we needed a kind of cooperative benchmarks to reduce those footprints. That is more straightforward Do nations have a responsibility to consider the impacts on water in their network, to ensure we had a global standard for water footprint than trading. The idea of trading is that if you have a water footprint, as Q: You argue that offsets must occur in the same hydrological unit [watershed trade policies? accounting, involving major stakeholders worldwide. We asked with a carbon footprint, your money may be more efficiently invested or basin] as the impacts. How broad a unit do you think is appropriate? the World Business Council for to join in reducing someone else’s footprint, than in reducing your own. But, Could one offset an impact at one point in the Mississippi-Missouri drainage A: I would advise governments, particularly Western governments, as founding partner, along with UNESCO, International Finance the whole market that has arisen around carbon footprints and carbon basin – which drains 40 percent of North America – at any other point in to align trade policy with the sustainability policy of others. Some Corporation [part of the ] and my own university as an trading seems ineffective. We still don’t understood if it is making that basin? For example, an impact in Iowa offset by a project in Louisiana? countries today show increasing interest in ‘sustainable consumption,’ academic institution. So with these partners and others, we founded things better or worse. What’s really happening? It’s unclear. There are not just sustainable production. If there is some environmental A: No, it should rather be at a smaller catchment level, but what level the network. It has one major mission: to make sure we have a global gaps in the system. policy towards sustainable consumption, this could translate to must be defined still. standard on water footprint accounting. efforts to make sure that the sources of our products, which are Q: If trading activity grew broad enough, with significant resources sometimes developing countries, adopt better management of water Q: There is increasing energy around ecosystem service markets, with e then asked Professor Hoekstra more questions moving to the ground in a beneficial way, could you see a loosening of the resources. There are ways to link sustainable consumption policy to a particular focus on water. One of the concerns is that there a lot of about his specific concerns about water trading. He hydrological unit structure? In other words, at a certain volume of activity, is it trade policy. There can be regulations set with respect to imported people working on this around the world, approaching the calculation referred to his publication “Water Neutral,” which possible that the overall benefits of market activity are significant enough that products that require sustainability for those products. In the book, of impacts on water resources in a variety of ways. While innovation summarizes his concerns. Basically, Hoekstra argues that water credit trading could happen at a level more akin to global carbon trading? I compare the consumption of products that cause trouble in their like this is naturally messy, the underlying concept of trading water it is difficult to effectively measure the positive benefits of offsetting production, such as water depletion or water pollution, to buying a credits from those making the impact to those doing something to efforts over time, particularly overshort periods of time. There is so A: A greater trading volume will not take away the problem that stolen bike. Everyone knows buying a stolen bike is not good, if you restore resources, is intriguing. In your book, you note the trading of much variability in the relative quality of the offset efforts. This speaks offsetting somewhere else remains a strange idea. Compare it to many know it is stolen. What you should try to do is make sure the stolen water resources in a variety of ways. Could you see the methodologies to the entire regulatory practice of mitigation, to offset impacts on people stealing bikes: in order to neutralize that they can start giving bike is returned to its rightful owner. In fact, most countries have developed by the Water Footprint Network as being useful in facilitating freshwater. Companies and developers facing these requirements back other goods to other people as a sort of charity. Even if the laws forbidding the purchase of the stolen bikes. But it is strange that kind of trade? Do you see that kind of trade as potentially positive naturally seek the easiest course to meet regulatory minimums, rather positive effort equals the original negative effort, it is a bit strange way that it is not forbidden to buy goods that are depleting resources for water resources in general? than the course with greatest ecological benefit. of getting things right again. 16 freshwater freshwater 17 Freshwater is Will you helpr Single GiftMonthlyGift*Benefits The Freshwater Trust Membership worldwide, the already enormous pressures on freshwater resources, and Q: The whole thinggrand seems a challenge: ballooning population water available. water anddrier, warmer itis whi if becomes ofhumanity more problematic.footprint We need more will definitely impactchange thesituation inthesensethat will thewater decreasetime that water inmany will availability spots. Climate increasecurrent bad at situation, thesame soourwater will footprint things. 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