On a Mongolian potato farm that supplies crops for Frito-Lay chips, parent company PepsiCo has reached water savings of 30 percent by installing pivot water systems, a transition from the flood watering that formerly hydrated the fields. The firm, which nets $65 billion annually, expects to convert again, this time to drip irrigation, using 50 percent less water than traditional farming methods.
Nestle, the world’s largest food company, installed solar-powered soil moisture monitors in tomato fields in Italy. By saving water and fertilizer, the company will see a return on its investment in one to two years, according to the global public affairs manager for the company.
And Statkraft, the state-owned Norwegian power company, is looking to build a hydropower station in Albania that will also serve as a water storage tank for agriculture for use in dry years.
In the midst of some of the worst droughts in recent history, some of the world’s biggest corporations are becoming more serious about the risks, but also the opportunities, climate change will bring to business.
Adapting operations to deal with too much, too little or too erratic rainfall will be expensive but will also create a chance for investment in innovation and infrastructure, said attendees at the annual World Water Week in Stockholm last week.
“Even if all of this costs money,” said Thierry Berthoud, managing director of energy and climate at the World Business Council for Sustainable Development, “people should recall that once you spend money as an investment to overcome a change, this money is, if well-placed, entering in the economic cycle and is creating a benefit.” Berthoud spoke at a session at World Water Week on seeking profits in a world of changing water landscapes.