DAVOS/ST. PAUL — As the global freshwater supply gap widens, Ecolab Inc. and CDP have unveiled a new financial and operational tool designed to move the private sector from passive data disclosure to active resource management.
Announced yesterday at the World Economic Forum Annual Meeting (WEF26) in Davos, the Water Use Efficiency Index establishes the first sector-specific benchmarks for industrial water resilience. The initiative, backed by the influence of Ecolab’s largest shareholder, Bill Gates, arrives as global industries face a “perfect storm” of scarcity: freshwater demand is projected to outstrip supply by 56% by 2030, exacerbated by the resource-heavy demands of the AI boom.
The Key Takeaways
- The News: Ecolab and CDP launched a new benchmarking index at Davos to measure operational water efficiency.
- The Urgency: AI-driven growth and manufacturing expansion are projected to consume water volumes rivaling the annual drinking needs of the U.S. by 2030.
- The Pilot: The initial rollout targets the Beverage and Brew sector, setting a “Best-in-Class” benchmark of 1.2–1.4 liters of water per liter of product.
- The Goal: To transition companies from simply reporting water usage to actively mitigating risk and reducing operating costs.
From Disclosure to Action
The partnership addresses a critical gap in the corporate sustainability landscape. While thousands of companies disclose environmental data, few have had a standardized metric to determine what “good” actually looks like in an operational context.
The new Index synthesizes data from CDP’s 2026 Corporate Health Check—which aggregates over 10,000 annual corporate disclosures—with Ecolab’s proprietary insights from millions of customer locations across 170 countries.
“Water is a critical economic input. It is integral to growth and success across industries including AI, semiconductors, and manufacturing,” said Sherry Madera, CEO of CDP. “As water stress intensifies, companies that understand, manage, and improve their water use will be better positioned to protect margins, secure supply chains, and attract capital.”
The AI Factor and Economic Risk
The launch comes amid a stark reality check for the global economy. Approximately 60% of global GDP depends on reliable access to water. However, the rapid expansion of digital infrastructure is intensifying the pressure.
The report notes that by 2030, AI-driven growth could require water volumes equal to the annual drinking water needs of the United States. Furthermore, the associated power demand for this technology is projected to equal the annual electricity use of India—power generation that is, itself, water-intensive.
Christophe Beck, Chairman and CEO of Ecolab, emphasized the economic opportunity in solving this crisis: “Water is the foundation of life and business. Our partnership with CDP aims to be the catalyst for industrial water use transformation. By championing best-in-class operational water performance, companies can embark toward a future of meaningful growth.”
Benchmarks: Defining “Best-in-Class”
The Index is designed to provide specific ranges for optimized targets, allowing business leaders to visualize their standing against peers.
The pilot program focuses on the Food, Beverage, and Agriculture industry, which currently accounts for roughly 70% of global freshwater withdrawals. The Index has released the following “Best-in-Class” operational targets for the sector:
| Sector Segment | Best-in-Class Location Efficiency | Best-in-Class Enterprise Efficiency |
| Carbonated Soft Drinks | 1.2 – 1.4 Liters of water / Liter of product | 1.5 – 1.8 L/L |
| Brew (Beer) | 1.4 – 2.0 Hectoliters of water / hL of product | 2.0 – 3.0 hL/hL |
By adhering to these benchmarks, companies can significantly lower total operational costs, as up to 75% of manufacturing energy is tied to moving, heating, and treating water.
Next Steps for Industry
The initiative aims to accelerate progress toward water circularity—reducing freshwater footprints while building systems that reuse and recycle water. This approach is viewed as the most controllable lever for companies operating in water-stressed regions.
“By combining CDP’s leading disclosure data with Ecolab’s industry water use expertise, we are giving companies a clear view of where they stand operationally compared to industry norms,” said Emilio Tenuta, SVP and Chief Sustainability Officer at Ecolab. “Together, we are helping companies turn disclosure into action.”
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