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Water sustainability of investors: Development and application of an assessment framework
Open accessAbstract
Although corporate social responsibility in general and corporate water stewardship specifically are of increasing concern to businesses, investors are lagging behind in fostering water sustainable investment practices – despite the large impact their investment decisions have on the state and shape of tomorrow's water resources. This paper is the first-ever study to assess whether and how investors include water sustainability criteria in their investment decisions, by scrutinizing their publicly released policies on the topic. We hereto (1) developed an assessment framework using the water footprint concept, (2) applied it to twenty large investors in a case study for the Netherlands, and (3) ranked them accordingly. We found that, by and large, water sustainability is a blind spot to investors, resulting in disclosed policies being neither well-demarcated nor clearly formulated, especially regarding the supply chain of the activities invested in. There is a long way to go before investors can ensure efficient, sustainable and fair water use in their investment policy, but our framework helps investors direct their urgently needed improvement process, to transition toward water sustainable production systems in a circular economy.
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The water footprint methodology has been extensively validated across diverse industrial sectors globally and provides a robust analytical framework to gauge water consumption.
“This methodology, extensively validated across diverse industrial sectors globally, provides a robust analytical framework to gauge water consumption in a more comprehensive way [11,29,30].”
From The water footprint of lithium extraction technologies: Insights from environmental impact reports in Argentina's salt flats (2025) · cites this paper as [29]
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An Analysis of Indicators Disclosed in Corporate Sustainability Reports
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Díaz Paz, W. F., Seghezzo, L., Salas Barboza, A. G., Escosteguy, M., Arias-Alvarado, P. V., Kruse, E., Hufty, M., & Iribarnegaray, M. A. (2025) · Heliyon · doi:10.1016/j.heliyon.2025.e42523 · Cited by 13
“This methodology, extensively validated across diverse industrial sectors globally, provides a robust analytical framework to gauge water consumption in a more comprehensive way [11,29,30].”
Metadata
- Authors
- Hogeboom, R. J., Kamphuis, I., & Hoekstra, A. Y.
- Affiliations
- University of Twente (NL)
- National University of Singapore (SG)
- Corresponding author
- Hogeboom, Rick J.
- Venue
- Journal of Cleaner Production
- Publisher
- Elsevier BV
- Published
- 2018-11
- Volume
- 202
- Pages
- 642-648
- ISSN
- 0959-6526 (ISSN-L)
- OpenAlex
- W2887598853
- Cited by
- 46
- References
- 1
- Citations by year
- 2026: 3 · 2025: 5 · 2024: 4 · 2023: 9 · 2022: 9 · 2021: 3 · 2020: 6 · 2019: 7
- FWCI
- 6.68
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- Journal of Cleaner Production (publishedVersion, cc-by)
- National University of Singapore (submittedVersion)
- University of Twente Research Information (submittedVersion, cc-by)
- Funders
- NWO Earth and Life Sciences (869.15.007)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Social Sciences › Economics, Econometrics and Finance › Finance › Sustainable Finance and Green Bonds
- Physical Sciences › Environmental Science › Environmental Engineering › Environmental Impact and Sustainability
- Keywords
- water sustainability, sustainable investment, investors, water footprint, evaluation framework, circular economy, water resources
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