Revolutionizing water risk management in industry: A comprehensive framework for strategic basin prioritization

Globally, industries act as one of the key consumers of water, driving a critical need for responsible and sustainable water usage practices to address the escalating water demands. Despite the industry’s significant impact on water availability, a notable void exists in the accessibility of precise, reliable, and readily available hydrological data essential for understanding water-related risks and formulating effective mitigation strategies. In addressing the challenge of water risk identification and management within the industrial sector, Waterplan, a Y-Combinator startup and science-driven B2B SaaS company, has developed a user-friendly and value-driven water risk framework. This comprehensive water risk framework assesses three distinct water risks: scarcity, flooding, and water quality. Each category of risk is evaluated using a set of hydrologically relevant basin-level indicators. The framework incorporates a total of 17 indicators (including 5 dynamic ones), derived from ground-based and remotely sensed observations or advanced state-of-the-art hydrological models. Using this framework, Waterplan ranked over 53,000 basins across the globe for various water risks, aiding basin assessment and strategic decision-making for industrial clients. The ranking of basins involves an evaluation of historical average hydrologic characteristics from 1988 to 2017 (called baseline), coupled with an analysis of the historical (1988 to 2023) and recent (2018 to 2023) trends (called direction) in these attributes. Both components are established through the application of globally comparable thresholds. Moreover, the scores for each risk type (scarcity, flood, and water quality) were computed using a default equal-weight ensemble method, with the added flexibility to customize the weights of indicators according to the specific client requirements. The framework finds applications in strategic basin/facility prioritization, resource allocation, raw material sourcing decisions, and evidence-based budgeting. Notably, the framework demonstrated strong agreement with locally collected data, showcasing its reliability. While designed for industrial clients, the framework's versatility suggests potential value for water managers and policymakers seeking insights into basin hydrological conditions. This holistic risk framework, integrating advanced technology, scientific rigor, and user-friendly design, can revolutionize how we understand, assess, and manage industrial water risks on a global scale.