Water footprint
25 February, 2026
•
3 minutes
Carolina Skarupa
Product Carbon Footprint Analyst

Water and energy form an interdependent system that directly impacts any organization’s environmental footprint. Every kWh consumed carries an associated water footprint, from power generation to industrial processes. In this article, we explore how energy efficiency becomes a key lever to reduce water footprint, optimize resources, and strengthen your sustainability strategy. You will also understand the water–energy nexus, its real implications for businesses, and the concrete opportunities to act with data, efficiency, and a long-term vision.
The water–energy nexus describes the structural interdependence between water consumption and energy use in production systems. Any economic activity that consumes energy uses water directly or indirectly, and every use of water requires energy for abstraction, treatment, transport, and wastewater management.
This link is not conceptual — it is operational and measurable. Reducing energy consumption automatically lowers the associated water footprint. Companies that optimize energy reduce pressure on water resources and minimize operational risks.
Energy generation is one of the largest water consumers globally. Thermal power plants, industrial processes, cooling systems, and fuel production require significant volumes of water.
Every kWh saved avoids water consumption in:
Energy efficiency directly reduces indirect water footprint (blue and grey water footprint).
The impact of the water–energy nexus is not uniform across industries. Some sectors have a higher simultaneous dependence on water and energy, increasing their exposure to operational, regulatory, and cost-related risks. Identifying these sectors is key to prioritizing efficiency and sustainable management actions.
Industrial operations concentrate intensive water and energy use. Thermal processes, cleaning, cooling, and transformation create dual dependency.
Irrigation, processing, and refrigeration make the agri-food sector highly exposed to both water scarcity and energy stress.
Heating, cooling, domestic hot water, and electricity represent the main cross-consumption drivers.
Companies in these sectors obtain immediate returns when addressing both vectors in an integrated way.
Measuring the water footprint linked to energy consumption reveals impacts that often go unnoticed in traditional assessments. This measurement connects energy data with indirect water use throughout the value chain, providing a more comprehensive basis for sustainability and operational decision-making.
Direct water footprint measures water consumed in a company’s own processes: abstraction, cleaning, cooling, and discharges.
Indirect water footprint measures the water associated with consumed energy (electricity and fuels).
Most companies underestimate indirect water footprint, which can represent more than 80% of total impact.
Not all energy efficiency measures generate the same impact on water footprint. Identifying actions that simultaneously reduce energy consumption and indirect water use maximizes environmental, operational, and economic benefits within an integrated sustainability strategy.
Replacing obsolete thermal equipment reduces water consumption associated with fossil fuels.
Improvements in motors, compressors, and thermal systems simultaneously reduce water and energy use.
Solar and wind energy have a significantly lower water footprint than conventional sources.
Real-time measurement helps detect hidden inefficiencies.
The Corporate Sustainability Reporting Directive (CSRD) and the ESRS standards require companies to report water consumption, energy use, and associated risks. Treating these impacts separately creates inconsistencies.
Companies that address the water–energy nexus improve reporting quality, identify physical risks (such as droughts) and transition risks (such as rising energy costs), and strengthen resilience.
Tools like Manglai allow organizations to connect energy, water, and emissions data within a single platform.
Managing the water–energy nexus is often limited by partial approaches, lack of integrated data, or decisions based solely on short-term costs. Identifying common mistakes helps avoid inefficiencies and move toward more strategic resource management.
Common errors include:
Integrated management eliminates these blind spots.
The water–energy nexus is becoming a critical pillar of corporate sustainability and advanced risk management. Integrating energy efficiency with data-driven water management enables organizations to reduce environmental impacts, optimize operational costs, and strengthen resilience against climate change and regulatory pressure.
Companies that adopt this integrated vision not only improve environmental performance but also gain anticipation capacity, efficiency, and competitiveness in an increasingly demanding business environment.
Yes. Any company that consumes energy has an indirect water footprint.
Saving energy often generates greater indirect water reduction.
By using combined water–energy indicators to identify the highest-impact actions.
Increasingly so, as the CSRD incorporates water and energy impacts in a cross-cutting manner.
Carolina Skarupa
Product Carbon Footprint Analyst
About the author
Graduated in Industrial Engineering and Management from the Karlsruhe Institute of Technology, with a master’s degree in Environmental Management and Conservation from the University of Cádiz. I'm a Product Carbon Footprint Analyst at Manglai, advising clients on measuring their carbon footprint. I specialize in developing programs aimed at the Sustainable Development Goals for companies. My commitment to environmental preservation is key to the implementation of action plans within the corporate sector.
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