Water Stewardship in High-risk Zones: Pharma’s Call to Action in 2026

Water sustains every living system on Earth and the pharmaceutical industry depends on it for every stage of manufacturing. In 2026 water stress has become a central strategic and ethical issue. This article argues that the pharmaceutical sector must elevate water stewardship from a narrow compliance exercise to a core component of global health responsibility. This need is especially urgent in water stressed regions where essential medicines are produced and where communities face the greatest vulnerability.

Water Is Our Bloodstream and the World Is Running Short

Water gives life to every biological and social system. It carries nutrients through the human body. It nourishes crops. It supports ecosystems. It enables clean manufacturing and makes medicine possible. Without safe water there can be no health, no food security and no functioning society.

More than two billion people still lack safely managed drinking water according to the United Nations ^[1]. In recent years severe floods, droughts and extreme climate events have disrupted water supply across continents. Central Europe experienced major flooding in 2024. Regions of Africa, South Asia and South America recorded prolonged droughts that damaged harvests and exposed communities to food and water crises ^[2]. In December 2025 catastrophic floods across Southeast Asia displaced millions and destroyed essential water infrastructure

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Water stress is therefore not a distant threat. It is a lived reality. Communities already face disease, food insecurity and economic disruption as a result of water scarcity and water pollution. For the pharmaceutical sector which exists to protect health the implications are immediate and profound.

Why 2026 Is a Turning Point for Water and Pharma

Water risk is rapidly becoming a central theme in global policy and corporate strategy. Several trends are converging.

Basin Level Water Risk Assessment Is Now Central to Decision Making

Tools such as the World Resources Institute Aqueduct Water Risk Atlas provide detailed information on the availability, quality and long term sustainability of water at basin level ^[4]. Regulators, investors and companies use these tools to understand water scarcity, flood risk and pollution exposure. Pharmaceutical companies can no longer view water as an internal utility. It must be understood in its broader geographical and social context.

Global Expectations for Nature Protection Now Include Freshwater Systems

The Kunming Montreal Global Biodiversity Framework requires governments and companies to assess and disclose the impacts of their activities on nature, including rivers, lakes and aquifers ^[5]. Freshwater ecosystems support biodiversity and human health and their protection is increasingly recognised as a necessity rather than a choice.

CSRD and CSDDD Increase Transparency but Are Not the Central Story

The Corporate Sustainability Reporting Directive of the European Union requires companies to report environmental information according to European Financial Reporting Advisory Group standards. ESRS E3 Water and Marine Resources asks companies to disclose water withdrawals, discharges, pollution, recycling, basin level risk and governance structures. Although this raises transparency expectations, the purpose of ESRS E3 is to ensure that water is managed responsibly and efficiently.

The Corporate Sustainability Due Diligence Directive requires companies to identify and manage environmental and human rights impacts across their supply chains. Water scarcity and pollution are among the issues companies must monitor. Pharmaceutical companies therefore need to consider not only their own water footprint but also that of suppliers.

While these regulations matter, they should not distract from the larger truth. Water stewardship is needed not because of compliance obligations but because it is essential for human health, environmental stability and long term supply chain resilience.

Water in Pharmaceutical Manufacturing: The Quiet Foundation of Quality and Safety

Pharmaceutical manufacturing depends on water in ways the public rarely sees. Water is used to dissolve and mix ingredients, to cool equipment, to clean and sterilise systems and to create purified water and water for injection. The European Medicines Agency sets strict quality requirements for every type of pharmaceutical water because any impurity can compromise patient safety ^[10].

Behind every pack of medicine lies an extensive system of purification, filtration, sterilisation and recirculation. The global pharmaceutical water systems market was valued at approximately forty seven billion United States Dollars in 2025 and may approach one hundred billion by 2034 ^[11].

Industry accounts for roughly one quarter of global freshwater withdrawals although pharmaceutical production represents only a small share of this total ^[12]. However, the impact is concentrated in specific regions where large clusters of pharmaceutical production operate within water stressed basins.

Water is therefore an operational requirement, a quality requirement and an ethical requirement. Pharmaceutical excellence cannot exist without water excellence.

The Structure of Water Risk: Availability, Quality, Demand and Pollution

Water risk for pharmaceutical companies can be understood through four dimensions.

Availability

Pharmaceutical operations depend on consistent and predictable water supply. In regions where rainfall is unreliable, groundwater is over-extracted or rivers are depleted, availability becomes a constraining factor for production. Reduced availability can cause operational interruptions and compromise the stability of supply chains.

Quality

Poor source water quality increases treatment costs and energy use. Agricultural chemicals, industrial effluent, sediments and biological contaminants all reduce the suitability of raw water for pharmaceutical treatment. Maintaining high purity levels becomes more difficult and costly under these conditions.

Demand Intensity

Pharmaceutical manufacturing requires large and continuous volumes of high-purity water. Sterile production and biologics manufacturing are especially water intensive. The need for continuous cleaning, sanitation and controlled humidity further increases water consumption.

Pollution and Effluent Burden

If wastewater is not treated effectively harmful residues including active pharmaceutical ingredients can enter rivers and groundwater. This can damage ecosystems and contribute to antimicrobial resistance. United Nations Water reports that approximately eighty percent of global wastewater is discharged into the environment without adequate treatment ^[18]. In regions with limited wastewater infrastructure this presents serious environmental and health risks.

The interplay of these factors means that pharmaceutical companies must adopt sophisticated and forward-looking water management strategies.

Why Pharmaceutical Production Often Occurs in Water Stressed Regions

It might appear contradictory that many pharmaceutical production facilities are located in regions facing severe water scarcity. However, these locations are often essential for global health.

Many water stressed countries also have large populations with significant healthcare needs. Local production makes essential medicines more affordable and more available. It reduces dependence on imports, strengthens national health security and supports economic development. India is a clear example. It faces serious water challenges but plays a critical role in producing low cost medicines for the world.

Economic factors also play a part. Skilled labour, manufacturing expertise and supportive industrial policy make these regions important production centres. Removing pharmaceutical production from these regions would reduce access to medicines for the people who need them most.

The real challenge is not to relocate manufacturing but to ensure that production contributes positively to community resilience. Pharmaceutical production must support both public health and water security.

The Triple Pressure on Pharmaceutical Companies in High Stress Basins

Pharmaceutical companies operating in water stressed regions face three overlapping pressures.

Regulatory Pressure

Governments increasingly enforce limits on water abstraction and require strict wastewater treatment. Reporting standards such as CSRD and oversight mechanisms created by biodiversity frameworks create expectations for transparency and accountability.

Operational Pressure

Water scarcity increases costs and reduces reliability. Treating low quality water requires more energy and capital investment. Production systems may need advanced recycling or high recovery processes to remain viable.

Reputational and Financial Pressure

Investors, insurers and communities are increasingly aware of water related risks. The Organisation for Economic Co operation and Development has warned that unmanaged water risk can disrupt supply chains and destabilise sectors ^[7]. Companies associated with water harm may lose community trust and face barriers to expansion.

These pressures highlight that water stewardship is essential to long term resilience.

Examples of Industry Leadership

Leading companies demonstrate what effective stewardship looks like.

A major multinational has committed to achieving water neutrality in its operations and in the operations of key suppliers located in water stressed regions by 2030. It uses basin level analysis from the World Resources Institute and the World Wide Fund for Nature to guide its decisions. It is also pursuing certification under the Alliance for Water Stewardship and has adopted science based targets for freshwater ^[14][15].

Another global pharmaceutical company has joined the United Nations Chief Executive Officer Water Mandate and supports community water access programmes. In Telangana in India the company has engaged in groundwater recharge initiatives and watershed restoration ^[16].

A study by the World Wide Fund for Nature and AstraZeneca found that while companies are aware of the importance of water they often struggle to translate good intentions into basin level action. The study encourages cross sector collaboration to address this gap ^[17].

These examples show that progress is possible when commitment is matched with investment and cooperation.

From Compliance to Stewardship: A Practical Approach

Water stewardship requires sustained effort and collaboration. Four steps form a strong foundation.

Assessment

Companies must begin with a thorough understanding of local water conditions. Basin level assessments should consider local community needs, agriculture use, climate patterns, groundwater sustainability, water quality and long term trends. Tools such as Aqueduct by the World Resources Institute support this process ^[4].

Optimisation

Pharmaceutical companies must reduce water use where possible. They should invest in water efficient equipment, improved clean in place systems, closed loop water systems, membrane technologies and advanced effluent treatment. Digital monitoring systems allow continuous optimisation and early detection of issues.

Partnership

Water is shared. Pharmaceutical companies must engage with local communities, water authorities, industry peers and civil society organisations. Joint initiatives such as watershed restoration, community water access programmes and wastewater infrastructure improvement benefit both society and industry.

Transparency

Companies must report water use, impacts and mitigation strategies through credible frameworks such as the Global Reporting Initiative, the Science Based Targets Network and CSRD where applicable. Water should be a priority for senior leadership and integrated into enterprise risk management.

Water Is a Health Strategy and Essential to the Mission of Pharma

The pharmaceutical industry exists to protect life. Water stewardship is therefore a natural extension of its mission. Without water hospitals cannot function. Without water communities cannot thrive. Without water manufacturing cannot maintain quality.

Local production in water stressed regions improves access to medicine and contributes to health equity. Yet this production must not diminish the water systems that support local life. Regulation is important but the deeper motivation must be ethical and strategic. Protecting water is fundamental to protecting health.

The year 2026 presents a clear message. Water stewardship is the next frontier of pharmaceutical responsibility and a foundation for resilient and equitable global health.

Now is the time for bold and coordinated action.

References

[1] United Nations. Water and Sanitation Sustainable Development Goal Six. United Nations, 2024.

[2] European Commission. Flood Risk Report. European Commission, 2024.

[3] United Nations Office for the Coordination of Humanitarian Affairs. Southeast Asia Flooding Situation Update. United Nations, 2025.

[4] World Resources Institute. Aqueduct Water Risk Atlas. WRI, 2025.

[5] United Nations. Kunming Montreal Global Biodiversity Framework. United Nations Biodiversity Conference COP Fifteen, 2022.

[6] United Nations. Sustainable Development Goals Progress Report. United Nations, 2024.

[7] Organisation for Economic Co operation and Development. Embedding Water Related Risks in Financial Stability Frameworks. OECD, 2025.

[8] CDP. Water Security Scoring Methodology Twenty Twenty Five. CDP, 2024.

[9] Global Reporting Initiative. GRI Standard 303 Water and Effluents. GRI, 2024.

[10] European Medicines Agency. Guideline on the Quality of Water for Pharmaceutical Use. EMA, 2018.

[11] Pharmaceutical Water Systems Market Outlook Twenty Twenty Five to Twenty Thirty Four. Market Insights, 2024.

[12] Organisation for Economic Co operation and Development. Global Water Use Statistics. OECD, 2023.

[13] World Wide Fund for Nature. Diagnosing Water Risks for the Pharmaceutical Sector. WWF International, 2023.

[14] GSK. Environmental Sustainability Report Water Stewardship. GSK, 2024.

[15] Science Based Targets Network. Freshwater Hub Guidance. SBTN, 2024.

[16] Novartis. Water Stewardship and Community Watershed Partnerships. Novartis Sustainability Report, 2023.

[17] World Wide Fund for Nature and AstraZeneca. Water Risk in the Pharmaceutical Sector. WWF, 2022.

[18] United Nations Water. The United Nations World Water Development Report. UN Water, 2023.