Water & waste Module

Global supply chains in numerous industries are increasingly vulnerable to water-related risks, many of them tied to climate-driven extreme weather events, such as flooding and drought.

The FRDM Water & Waste Module monitors risk deep into your supply chain and offers tools to engage supplier’s performance. FRDM water risk indicators are supported by a comprehensive analysis of five critical threats to global freshwater systems - groundwater depletion, metals contamination, plastic pollution, diversion and transfer of water, and eutrophication.

Key sectors and industries with the most severe impact on water resources are consumer staples, consumer discretionary (textiles, apparel), energy, health care (pharmaceuticals), materials (metal and mining), information technology (semiconductors), and utilities. FRDM measures wastewater treatment as the proportion of wastewater that undergoes at least primary treatment in each country, multiplied by the proportion of the population connected to a wastewater collection system.

Waste management risk analysis is based on three indicators: controlled solid waste, recycling rates, and ocean plastic pollution. Our water & waste risk algorithm is applied to each stage of your supply chain, from vendor to commodity. Suppliers can provide additional information to better inform their water and waste management through the use of assessments that can be accessed on a supplier side dashboard called supplier link.

Use Cases For Water & Waste Module

Companies reporting on different sustainability frameworks will appreciate the effectiveness of the Water & Waste Module to drive data and insights needed for reporting which include sections C9 and C12 of the Carbon Disclosure Project and multiple Sustainable Development Goals. Our Water and Waste Module is also useful for reporting against supply chain regulations like CSDDD and CSRD.

Benefits of Monitoring Water & Waste In Your Supply Chain

Risk Mitigation and Operational Resilience:

Water scarcity and waste management issues pose significant risks to businesses, including operational disruptions, increased costs, and reputational damage. By tracking water and waste risk in your supply chain, you will identify vulnerabilities, anticipate potential disruptions, and implement proactive measures to mitigate these risks. This not only enhances operational resilience but also ensures business continuity, safeguarding against future water-related crises and regulatory penalties.

Cost Reduction & Efficiency Gains:

Tracking water and waste risk in supply chains allows businesses to identify inefficiencies, reduce resource waste, and optimize operations. By gaining visibility into water consumption patterns, companies can implement water-saving measures, such as optimizing processes, adopting water-efficient technologies, and enhancing water recycling and reuse. Similarly, waste hotspots can be identified, enabling the implementation of waste reduction strategies, recycling initiatives, and circular economy practices. These measures result in significant cost savings through reduced water usage, improved energy efficiency, minimized waste disposal expenses, and streamlined supply chain processes.

Regulatory Compliance & Legal Mitigation:

Governments and regulatory bodies are increasingly focusing on water conservation and waste management regulations . By tracking water and waste risk in supply chains, businesses can ensure compliance with existing and emerging regulations. This helps mitigate legal risks, avoid penalties, and maintain a positive reputation with stakeholders, regulators, and customers. Proactive compliance measures also position companies as responsible corporate citizens, fostering trust and credibility in the market

Enhanced Reputation & Stakeholder Investment:

Consumer expectations are evolving, and stakeholders increasingly demand transparency and sustainable practices from the companies they engage with. Tracking water and waste risk in supply chains demonstrates a commitment to environmental stewardship, responsible sourcing, and sustainability. This enhances the company's reputation, strengthens its brand value, and attracts environmentally conscious customers, investors, and partners. Moreover, it fosters positive engagement with local communities, NGOs, and sustainability-driven organizations, paving the way for strategic collaborations and partnerships.

Long-Term Business Resilience & Future-Proofing:

Tracking water and waste risk in supply chains is an investment in long-term business resilience and future-proofing. By addressing environmental challenges and adopting sustainable practices, companies position themselves strategically in a rapidly changing business landscape. They reduce their reliance on scarce resources, improve supply chain visibility, and gain a competitive advantage. As water scarcity and waste management issues continue to intensify globally, businesses that proactively track and manage these risks will be better equipped to navigate challenges, maintain continuity, and seize emerging opportunities.

How It Works

Each supplier receives a score based on FRDM’s Water & Waste risk algorithm along with any assessment information the supplier chooses to provide.

The Water & Waste risk algorithm consists of multiple indicators such as the Sustainable Nitrogen Management Index, Air Quality, Ecosystem Services, Fish Stock Status and more. Each supplier loaded into FRDM is risk scored for the industry(s) it works in, country(s) it operates in, products or services it provides, and trading partners it does business with (requires Trading Partners Module).

FRDM screens for any adverse media involving your supplier. You can invite your supplier to link to your dashboard so they can provide any certifications, policy assessments, and additional information. Supplier’s scores change accordingly based on the maturity of their certifications, policies, and additional information.

FRDM aggregates all supplier scores into an impact page where you can track progress over time as well as generate reports for external use.

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Water & waste Module

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