Environmental, Social, and Governance (ESG) reporting has moved well beyond investor pitch decks and sustainability departments. Today, ESG performance is influencing customer decisions, supplier contracts, insurance coverage, and even recruiting outcomes.
For manufacturers and processors, one area of ESG scrutiny that’s gaining attention is industrial wastewater management—particularly for facilities that generate large volumes of non-hazardous process water or dispose of off-spec product through liquid waste streams.
While wastewater may not appear in a sustainability report's headline metrics, stakeholders are asking deeper questions:
- What’s in your process water?
- How are you disposing of it?
- Can you reduce, reuse, or recover any portion of it?
- What controls do you have to prevent unauthorized discharge?
These questions matter not just for environmental compliance, but for overall ESG credibility.
Why Wastewater is Gaining ESG Relevance
Water is becoming one of the most closely tracked ESG indicators, especially in industries like food and beverage, CPG, chemical manufacturing, and coatings.
Several trends are driving this shift:
1. Growing Focus on Water Risk and Scarcity
According to the CDP Global Water Report, more than 200 global companies reported nearly $300 billion in water-related business risks in 2023. Facilities that rely heavily on water for production are expected to demonstrate how they’re managing it responsibly.
2. Regulatory Pressures Tied to ESG Data
The EPA and state agencies continue to increase oversight of emerging contaminants such as PFAS, as well as wastewater discharges from industrial and commercial sources. This regulatory activity often aligns with ESG disclosures, especially where water quality or discharge is linked to material risk.
3. Stakeholder Demand for Transparent Disposal Practices
Whether it’s off-spec product, cleaning water, or process rinse water, downstream customers and investors want assurance that materials are being managed properly. Improper wastewater disposal can lead to brand damage or penalties—both of which are ESG liabilities.
Where ESG Goals and Wastewater Strategy Intersect
Even for companies focused on non-hazardous waste, wastewater is an opportunity to align ESG goals with operational improvements. Here’s how:
- Waste stream profiling can identify recoverable material or opportunities for process changes that reduce volume or toxicity.
- Centralized collection and hauling reduces the carbon footprint compared to multiple drum pickups or long-haul disposal.
- Treatment and reuse of some streams can reduce fresh water demand and improve water intensity metrics.
- Documentation and tracking supports ESG reporting frameworks like GRI, SASB, or internal sustainability KPIs.
At Valicor, we’ve helped customers integrate these types of improvements into their day-to-day operations. Many start by simply mapping their current wastewater footprint and identifying potential compliance risks or cost-saving changes.
A Proactive Approach Builds Confidence
Investors, customers, and regulators are all placing higher expectations on environmental transparency. Taking a proactive approach to industrial wastewater—whether through better profiling, tighter controls, or cleaner disposal—can strengthen ESG reports and reduce long-term risk.
You don’t need to overhaul your entire system to make progress. Even small changes in how you manage and report your wastewater can send a strong message to stakeholders: we understand our impact, and we’re working to reduce it.
Need help evaluating your wastewater practices through an ESG lens?
Contact Valicor to schedule a site review or learn more about our non-hazardous wastewater services and reporting support.
