Turning water conservation into a competitive advantage

—Alex and Axel

August 2025

Addressing water scarcity has never been more critical. Climate change, demographic shifts, and the rapid proliferation of water-intensive technologies such as AI continue to exacerbate the world’s water issues. This, in turn, affects companies’ supply chains, operations, and long-term sustainability.

Improving water efficiency won’t be easy, but today’s businesses can take inspiration from the companies highlighted in this 2009 McKinsey Quarterly classic: organizations that found opportunity in water productivity. Companies across industries can start harnessing this opportunity by innovating in three areas: water treatment and distribution, industrial efficiency, and agricultural productivity. By doing so, businesses can reduce their water usage while also lowering costs and improving resource resilience. What’s more, companies that engage with regulators to offer water management solutions and financing options can gain a competitive edge in a quickly growing market.

Embracing water efficiency as a core business strategy is as crucial for companies today as it was nearly 15 years ago. For more on how companies can make a market in conservation, read our Quarterly classic “The business opportunity in water conservation.”

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—Edited by Drew Holzfeind, editor, Chicago 

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