Attending the World Economic Forum (WEF) Annual Meeting in Davos has always been a profound experience, influenced by various geopolitical and megatrends shaping business and society. At its core, the WEF aims to improve the state of the world by promoting sustainable development, economic growth, and social progress through collaboration and dialogue. This year, I witnessed a significant shift: water, often an overlooked resource, emerged as a top priority for both business and communities and was truly integrated in the programming and discussions at Davos.

Several factors are elevating water to the top of corporate agendas:

1. Economic Impact: In many ways, the climate crisis is a water crisis. Extreme weather and climate events related to water can impact $5.6 trillion of global GDP. Water is at the heart of the climate crisis, with climate change affecting the world’s water in complex ways. Today, 2 billion people experience water shortages, and the World Resources Institute predicts a 56% water deficit by 2030.
2. Corporate Accountability: According to the Carbon Disclosure Project (CDP), over 9,600 companies disclosed their water data in 2024, marking a 100% increase in year-over-year disclosure. However, the challenge lies not in disclosure but in performance—specifically, the need to take action to reduce and reuse water. Water is a material issue for 75% of assessed companies, yet only 22% have indicated progress on their water targets.
3. Consumer Concerns: In 2024, Ecolab released findings from the Ecolab Watermark™ Study. This global consumer research examined the state of water stewardship, highlighting several critical trends:

• Access to clean and safe water is a paramount concern for consumers in every region.
• Consumers hold governments and businesses most responsible for water conservation.
• Consumers believe that industry lacks a clear plan to address water scarcity. 

Despite these challenges, I am optimistic about our water future for three key reasons:

1. AI’s Power to Solve the Water Crisis: The rapid growth of artificial intelligence (AI) was a hot topic at Davos, and its insatiable demand for water and energy cannot be overlooked. But its transformative power can revolutionize everything, including solving the water crisis. Data centers powering AI technologies are projected to consume 8% of global energy and over 1 trillion gallons of freshwater by 2027, adding a critical new dimension to the water crisis. This escalating demand creates urgent sustainability challenges, underscoring the need for leaders to grasp the interconnectedness of power, water, and energy efficiency in the context of AI. But AI is also an untapped opportunity to solve the complexity of the water crisis.
2. Water Circularity and AI: To address the water crisis, we need to achieve water circularity, or reusing, reducing and reclaiming water. AI offers the technology and the means to get there. It can elevate smart water management to new levels, focusing on quantity, quality and access. By integrating AI technology into operations, we can predict and mitigate water-related risks, providing businesses with the tools they need to secure their water supply chains and enhance operational resilience. Efficient water management can reduce water consumption by up to 44%, energy use by up to 22%, and greenhouse gas emissions by up to 12%. Leveraging the power of AI can drive opportunities to be more water-resilient while reducing energy and GHG emissions and saving money in the process.
3. Collective Action to Drive Net Positive Water Impact: Let’s harness the power of collective action to achieve a net positive water impact (NPWI), turning our vision of sustainable water resources into a reality. Collective action and water circularity are synergistic, because to drive circular water practices enabled by AI technology and achieve NPWI, you need to work together with stakeholders in the basin. In an era where water scarcity and climate change threaten global stability, the Water Resilience Coalition (WRC) stands at the forefront of innovation and growth. Ecolab played a significant role in creating the Coalition. As one of the seven co-founding members, Ecolab helped launch the WRC on World Water Day in 2020. This industry-led initiative under the UN Global Compact aims to address global water challenges through collective action. The WRC is now the leading CEO-led industry water resilience coalition with 38 companies and a market capitalization of over $5 trillion. Our ambition is to grow to 150 companies impacting one-third of the freshwater use on the planet. We are focused on driving action and public-private partnerships in 100 priority basins where 3 billion people live in water-stressed conditions. And organizations such as Global Tandem are working to protect nature, water and biodiversity.

According to a McKinsey report, the business sector overall contributes about 72% of GDP in Organisation for Economic Co-operation and Development (OECD) countries, which includes the U.S. This significant economic contribution underscores the critical role that corporations play in addressing water and climate challenges. By leveraging their resources and influence, corporations have the potential to drive substantial positive change in sustainable water management and climate action.

In conclusion, the discussions at Davos underscored the critical role of water in advancing business growth and resilience and the need to prioritize it. The good news is that by leveraging technology, fostering collaboration, and committing to and delivering on actionable goals, we can turn the tide on the water-related challenges that we face to secure a profitable and sustainable future for all.