Water Risk Management & Sustainable Solutions

The Growing Importance of Water Risk Assessment

Fresh water, a vital resource, is facing increasing challenges due to climate change, directly impacting businesses dependent on its availability. Waterplan, having secured $2.6 million in seed funding, is dedicated to analyzing and monitoring corporate water usage and identifying potential mitigation strategies.

Waterplan's Origins and Mission

Founded by Jose Galindo, Nicolas Wertheimer, Matias Comercio, and Olivia Cesio, Waterplan emerged from their collective experience within the environmental sector. They observed a significant disparity in attention given to water risk compared to carbon emissions, despite the growing threat to water security.

Galindo stated that while companies are increasingly focused on water security, a SaaS platform is needed to effectively quantify and manage water-related risks. A shift from reactive to proactive approaches is crucial as climate-related disruptions become more frequent.

Analyzing Water Risk with Data and Technology

Waterplan utilizes data derived from satellite imagery, providing objective measurements of canopy cover, water bodies, and other key indicators over time. This data is then combined with direct measurements from water and environmental authorities.

For example, a coffee bean processing facility using 10,000 gallons of water per hour from a river could face sustainability issues within 5-10 years. Analysis could reveal potential costs of $40 million over that period.

However, doubling investment in local forest restoration efforts at a cost of $10 million could enhance water retention, reduce erosion, and ultimately avert the $40 million risk.

Automating Risk Assessment and Mitigation

While traditional environmental consulting offers similar analysis, it’s often infrequent. Waterplan aims to automate this process, transforming it into a big data challenge where inputs yield risk assessments and mitigation strategies.

Wertheimer emphasized that proactive measures are ultimately more cost-effective than reactive responses, advocating for a conscious and preventative approach to water management.

Addressing Data Fragmentation

Galindo highlighted the challenges posed by fragmented and incompatible data sources related to local water supplies and restoration projects. Significant effort is required to consolidate this data into a unified map and predictive model.

Visualizing the Impact

From left, co-founders Matias Comercio, Nico Wertheimer, Jose Ignacio Galindo and Olivia Cesio sit on a stage. Image Credits: Waterplan

Galindo explained the importance of companies understanding climate scenarios and receiving continuously updated, detailed information regarding water availability. A projected 30% gap between water supply and demand is anticipated by 2030.

The Future of Water Resource Management

Companies with robust data and a history of proactive measures will be better positioned as water resources diminish or competition for water credits intensifies. A potential market for water credits, similar to carbon credits, may emerge.

The company’s initial investors, including Giant Ventures, Sir Richard Branson’s family, and several prominent tech entrepreneurs, recognize the potential of Waterplan within the evolving climate monitoring ecosystem.

Next Steps for Waterplan

Waterplan’s immediate focus is on expanding its development team, hiring engineers and hydrologists to enhance the platform’s capabilities and deliver valuable insights to diverse industries.

While the data and analysis would benefit governments and NGOs, the primary target audience is private companies seeking to mitigate risk and improve their environmental standing. The founders ultimately aim to broaden access to the platform once it’s fully developed and validated.