Valuing Water

Valuing water means recognizing and considering all the benefits provided by water – including economic, social and ecological dimensions. In realizing these benefits, there is significant potential to trigger systemic change, with water valuation driving decision-making that protects freshwater sources and ensuring water allocation reaches its most productive, equitable and environmentally sustainable use and consumption.

    The Challenge

    Most societies undervalue and underprice water.  The true cost of water does not reflect its true value, which leads to overexploitation of the resource. The appropriate valuation of water drives demand-side management and improves resource use efficiency.

    The Business Case

    Water valuation helps businesses understand their water impacts and dependencies, eventually informing their water stewardship approaches and leading to the internalization of water-related externalities. Businesses must value water to improve financial performance, ensure business continuity and maintain their social license to operate.

    The Solution

    Our Valuing Water project helps companies understand industry best practices for water valuation, with a particular focus on internal or shadow pricing of water to inform business decision-making. Our goal is to support more companies as they implement internal pricing of water in order to better inform project-level decision-making. Through participation in key policy and advocacy initiatives on water valuation, our members will have a voice on this important topic and play a key role in the global discourse on water valuation.

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