Mar 19, 2010

Water and Industry

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Water and Reputational Value

Water and Reputational Value

Water is relatively inexpensive and for most companies an insignificant line item on a profit and loss statement. In view of this, why are companies increasingly focused on developing water strategies and implementing programs to reduce water use and where does the real value of water reside? By Will Sarni

There is a great discrepancy between the price of water and the value of water.

The real value of water lies in a company’s ability to ensure that water risk does not disrupt business, damage reputational value and limit a company’s license to operate. Conversely, for those companies that manage water related risk well they can reduce the potential for business disruption; increase reputational value and their license to operate.

1 comment:

  1. Safe drinking water advocates blast Washington state cities for not providing residents options to purchase water line insurance

    A recently published report in Washington state is critical of several municipalities for not providing insurance options to help residents repair or replace broken water lines or sewer lines

    Seattle, Wash. - The Washington State Access to Safe Drinking Water Council (WSASDWC) has recently published a report which is highly critical of municipalities in Washington State for not providing residents options to purchase water or sewer line insurance. The WSASDWC report gave several communities an “F” for failing to carry any insurance products that would help residents insure their water and sewer lines for breaks or leaks. Specifically in the study, Seattle, Tacoma, Yakima, Spokane, Pasco, Bellevue, Vancouver, Everett, Wenatchee and Kennewick received the worst scores.

    The WSASDWC was particularly critical of the City of Kennewick after a local news station aired the following reports which detailed how the Benton County Public Utility District and other municipal entities (i.e…City of Kennewick) would not fix a broken water pipe despite the fact Benton PUD broke the pipe. The residents in Kennewick were left without adequate drinking water supplies for several days.

    According to data in the study collected from public works departments, about 50,000 property owners a year in Washington state face repair or replacement bills for busted or broken water and/or sewer lines that range from $1,500 to $6,000. Additionally, most water and/or sewer lines were installed between 1900 to 1970 in Washington state and are over 40 years old.

    As cities and communities age across Washington State and the United States the probability of leaks from older water pipes and related infrastructure will increase dramatically, which will put additional financial pressure on homeowners to fix and replace water pipes.

    “If cities in Washington state are not going to repair or take responsibility for water and sewer lines from the street or meter to the residence, then they need to provide residents private sector insurance options so situations like the one in Kennewick do not occur in the future," said Dan Miller, Director of Advocacy of the WSASDWC. “It is inexcusable that so many Washington state cities are not offering insurance or warranty products to help homeowners fix leaks in private water or sewer lines, and to minimize disruptions in access to clean drinking water.”