Happy International Water Day!
Have you ever thought about the true value of water for your business? What happens if you don’t have water for an hour, a day, a week…
In general, when we talk about the cost of water or even more meaningful to the value of water, often the only thing we think of as a first-rate signal is the rate for receiving a service. This perception limits our understanding of the intrinsic value of the service or rather the risk of failing it.
Let’s look at it this way – currently globally the cost of water for under 1% of the respective national gross domestic product (GDP). This amount, although not small in nominal value, is not significant in order to arouse genuine interest among the political circles or major entrepreneurs in the region. Let us, however, look at it in terms of risk – what would happen if we suddenly end up in a situation of scarce resources or a polluted water source? How much would the damage be caused by the lack of resources as we need it and at the time we need it? I am absolutely convinced that then the present value of water would be ridiculously insignificant and the damage would be measured not simply in money but in job losses, changing the overall economic and social atmosphere in the region. Then surely this issue will be at the forefront of the agenda of local and national political issues.
As can be expected, the issue of water and service evaluation through the risk perspective is first caught by industry and business. More and more often it can be heard how an investor is willing to invest in reducing the risk of water scarcity, and in the classic approach “business case” is difficult to be detected or protected. However, when the assessment of a possible lack of a water resource with appropriate qualities is included, the situation changes significantly and the investor’s approach is justified.
The problem with this approach, however, is that it is very difficult or practically impossible for a business to be completely separated from the local community. If there is a specific problem, for example a lack of water resources, there is no way the interest of the local community does not prevail over that of the industrial client. This simply means that addressing the risk must also be done by the community through the relevant public agent entrusted with this task. Otherwise, businesses risk seriously investing in reducing their risks, but this investment is made meaningless if the community does not give its own. This is true except in cases of shortage of resources, but it is an environmental problem-there is no particular effect of an investment in purification, if the main pollutant in the region are populated areas.
And else businesses are willing to invest – world leaders and internationally renowned companies invest in projects that lead to so-called positive water balances the amount of water used to produce net through projects that increase Availability of water resources.
It is therefore important that industry and local communities go hand in hand in this process and instead of talking about the cost of water, to think more deeply about the value of the risk of its lack-and what price will we have to pay tomorrow if we only limit the calls today to Refusal to increase service tariffs!
HYDROLIA JSC will continue to strive to be your preferred Plumbing partner!