Malaysia’s National Water Services Commission (SPAN) said water conservation is often overlooked or poorly prioritised in environmental, social, and governance (ESG) strategies by public institutions and corporations.
Its chairman, Charles Santiago, said that despite its critical importance, only nine per cent of small and medium-sized enterprises (SMEs) in Malaysia focused on efficient water management in their ESG efforts, compared to 44 per cent that prioritise energy efficiency.
Santiago said this disparity, highlighted by the Alliance Bank SME report, reveals the need for businesses to recognise water’s crucial role in their operational and environmental footprint.
Santiago addressed this matter in his keynote address, titled Sustainability Concerns for Malaysia’s Water Services: What’s Relevant, What to Do and When? at the Sustainability Environment Asia 2024: Driving Innovations for a Sustainable Circular Economy in Kuala Lumpur, today.
He explained that new technology also poses challenges for water demand, citing the rise of generative artificial intelligence (AI), which has revolutionised industries, as one that comes with significant environmental costs, particularly in terms of water consumption.
A 2021 US International Trade Commission report stated that data centres, which power AI systems, use vast amounts of water – up to about 1,135,623 litres per day, nearly half of an Olympic-sized swimming pool – to cool their servers.
Researchers at the University of California had also suggested that for every 20 to 50 questions ChatGPT answers, it “drinks” approximately 500ml of fresh water.
“Conservation and sustainability require water to be prioritised in business plans involving ESG, and it needs to be evidence-based. Indicators need to be developed to measure progress, as opposed to ticking boxes in ESG metrics or reporting,” he said.
“New and innovative strategies need to be adopted, including ‘opening up new taps’ to ensure the efficient use of water, including its conservation and sustainability.”
These new taps, he said, included:
Rainwater harvesting: Given Malaysia’s significant rainfall, rainwater harvesting should be actively promoted as an alternative water resource. The implementation of rainwater harvesting systems can reduce reliance on treated water, particularly for non-essential uses like irrigation and toilet flushing.
Santiago said Malaysia should start rainwater harvesting in commercial buildings, factories, or malls, which have large areas for rooftop gutter systems.
Reclaimed water: Reclaimed water can be used in a variety of economic activities such as construction, agriculture, and industrial sectors. It can help to reduce the demand for treated water. By repurposing water within industrial systems, businesses can achieve significant savings while contributing to water security.
Santiago said data centres in California use reclaimed water for their cooling processes. Amazon Web Services (AWS) has 20 centres that use purified wastewater rather than potable water for their cooling systems. They use recycled water whenever possible because that leaves cleaner, higher-quality water available for others.
Reducing non-revenue water (NRW): Addressing water losses through leakages and pilfering is essential. Malaysia currently loses a third of its treated water due to NRW, costing the nation billions annually. Reducing these losses will free up water reserves and lessen the need for new treatment plants.
Reduce water consumption: Malaysia’s average water consumption stands at 247 litres per capita per day (LCD), equivalent to 155 bottles of mineral water (1.5 litres each). This is significantly higher than the World Health Organisation’s (WHO) recommended level of 165 LCD. Reducing this consumption to align with global health guidelines would not only help conserve water but also alleviate stress on Malaysia’s water infrastructure, ensuring long-term sustainability.
Zero discharge policy: Selangor recently introduced a Zero Discharge Policy enactment as a proactive measure to address water pollution. The policy requires industries to treat and recycle all wastewater without releasing any into natural water bodies – a model that other states can adopt. The aim is to make industries accountable through stricter enforcement and financial penalties for non-compliance, ensuring long-term water security and cleaner rivers in the state.
He said businesses outside of Selangor might want to adopt the policies voluntarily as part of their ESG commitments.
Water conservation surcharge: Malaysia should introduce a surcharge to promote prudent water use. The tax would emphasise water’s scarcity value and encourage conservation at every level of society. Countries like China and Singapore have implemented water conservation surcharge models based on the principle of “the more you consume, the more you pay.”
Water footprinting: Companies must monitor not only their direct water usage but also the water footprint of their supply chains. For example, China has 10 per cent of its water footprint outside the country, underlining the importance of a comprehensive approach to water footprint management.
Santiago added that water footprinting education must become a key component of public awareness campaigns.
“For instance, producing just one pair of jeans can consume up to 10,000 litres of water, showcasing the significant hidden water costs behind everyday products. And 140 litres of water is required to produce a single cup of coffee.”
“Understanding the water footprint of items such as jeans, coffee, and other consumables can promote more responsible consumption,” he said, adding that the relationship between water footprint and greenhouse gases (GHG) reduction must be widely established. Less water means less energy.
Malaysia, he said, could also consider certifying a Water Efficiency Manager, similar to the Energy Manager programme, to enhance skills, capacity, and knowledge to ensure water management protocols follow best practices and are consistent with national sustainability goals.
Santiago said the urgency of the moment cannot be overstated, as the actions taken today in managing water will shape the lives of future generations.
“Sustainability can no longer be a distant goal; it must be at the core of every operation, decision, and vision in water services management and in the way we manage the country,” he said.
“If we don’t take care of the water cycle, it will not take care of our life cycle.”
