{"id":13367,"date":"2016-11-04T17:33:45","date_gmt":"2016-11-04T21:33:45","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/american-water-vs-climate-variability\/"},"modified":"2016-11-04T17:38:53","modified_gmt":"2016-11-04T21:38:53","slug":"american-water-tackles-climate-variability","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/american-water-tackles-climate-variability\/","title":{"rendered":"American Water Tackles Climate Variability"},"content":{"rendered":"

There is widespread agreement in the scientific community that climate change is changing weather patterns and the world\u2019s ecosystem and, in particular, posing serious challenges to the world\u2019s water supply. One of the likely consequences of this phenomenon is heightened competition for water resources in the US and the rest of the world, given increased projected population growth. In the US, according to the EPA, this impact will be more prevalent in states that also have higher per capita water use (see chart below). While water demand is increasing, it is generally understood that the water cycle results in constant or lower supply [1].<\/p>\n

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As large users of energy and victims of the negative effects of climate change, water utility companies are uniquely positioned to have a positive impact in the fight against the potential negative effects of this social issue. Water companies contribute to greenhouse gas (GHG) emissions mainly through the electricity used to treat and pump water. To mitigate the risk of a dire water crisis, water utility companies must take proactive steps to find solutions for sustainable water production that will meet future consumer demand and maintain high water quality standards while making this vital resource affordable [2].<\/p>\n

American Water is one example of a water utility company that is leading its industry to mitigate the potential risks of climate change. Founded in 1886, American Water is the largest publicly traded United States water and wastewater utility company, with regulated and market based business operations. The company provides drinking water, wastewater and other related services to approximately 15 million people in 47 states, the District of Columbia and Ontario, Canada [3].<\/p>\n

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In its 2015 annual report, American Water noted climate change as a significant business risk factor [4]. However, weather variability is business as usual for water utility companies. Climate change has simply augmented the disruptive threat of weather changes to the company\u2019s operations and its ability to fulfill its customers\u2019 needs.<\/p>\n

American Water has taken several steps to address climate variability effectively. In fact, the company reached its goal of 16% percent reduction in greenhouse gases in 2012 from a 2007 baseline, ahead of its target date of 2017 [5]. At a high level, American Water\u2019s success in this endeavor was due to emphasis on hardened infrastructure, enhanced backup power supplies, efficient water use promotions, and coordination with government on disaster response [6].\u00a0Moreover, in 2008, American Water joined the EPA\u2019s WaterSense Program, an initiative designed to promote increased water efficiency among consumers [7].<\/p>\n

The overarching framework American Water uses to manage water and climate risk, American Water leverages a two-pronged approach: 1) risk assessment, and 2) risk management [8]. Under \u201crisk assessment\u201d, the company undertakes engineering planning studies that typically involves examining facility and regional water availability to develop a capital investment plan, to meet future infrastructure needs, or an optional operational plan against extreme weather events. The desired outcome from this stage is business continuity. Example of planning studies include:<\/p>\n