Why We Should Be Paying More Attention to Water Consumption

By Carolyn Lim

Talk of water consumption in the tropics might seem trivial. Rainfall is plentiful, with Singapore and Indonesia experiencing annual rainfalls of over 2165mm[1] and 3700mm[2], respectively. While water conservation might not seem like a pressing issue, it’s essential to recognize that higher rainfall does not equate to an abundant water supply.

When rain falls, a portion of it is absorbed into the ground. This replenishes Earth’s groundwater and makes its way into the water supply for human consumption. However, in rural areas, about 50% re-enters the ground and in urban areas, that proportion is even lower, at around 15%[3]. Most of the water flows away as runoff[4], which re-supplies streams, rivers, and lakes, nevertheless human consumption takes a toll on water supplies. This is compounded by climate change and extreme weather events that impact rainfall amount and distribution, exacerbating water inundation and scarcity[5].

Industry’s Response to Water Consumption
According to the Carbon Disclosure Project’s (CDP) research, two-thirds of the world’s largest companies report that water-related risks could substantially change their operations and revenue. As the oil palm supply chain relies on water, water stewardship[6] should become one of the industry’s key priorities. Quantifying a company’s water footprint is increasingly becoming as important as a carbon footprint.

The water footprint measures the amount of water consumed and polluted in all processing stages of production. It also considers the volume of freshwater required to dilute the load of pollutants to meet water quality standards. Understanding the water footprint enables companies to determine where and when water is used in their supply chain and provides a benchmark for reducing water use.

What is Musim Mas Doing to Reduce its Water Footprint?
At Musim Mas, we have adopted the Water Footprint Network’s assessment methodology to assess our water consumption since 2016, as we began determining our overall water consumption relative to precipitation levels. We have implemented several measures to minimize our water footprint, such as optimizing industrial processes, further improving water management on peat, restoring riparian zones, and a water-saving campaign for our workers.

We set ourselves a target of reducing mill water usage intensity below 1.2m3 / MT FFB in 2021. At the end of 2020, we successfully achieved mill water usage intensity of 1.17m3 / MT FFB, which is ahead of our set target. We will maintain a water usage intensity below 1.2 m3/MT FFB in the coming years.

Using water efficiently in our operations reduces our environmental impact and helps maintain natural river and stream flows. This is vital as climate change might bring longer and more extreme dry spells. We also prioritize using fertilizers with a smaller water footprint to reduce our water consumption.

Conserving Peatlands and Providing Clean Water for Surrounding Communities
Musim Mas regulates water levels and maintains water tables in our cultivated peat areas. This is per local regulations and to reduce our greenhouse gas emissions. As of December 2020, 4,253 hectares of peat areas were set aside as conservation areas, supporting the natural water regulation of the area. 35,526 hectares are planted and managed under Best Management Practices. Peatlands play an important role in regulating the water cycle by providing water storage and supply.

While clean water is accessible to workers on our plantations, we recognize that more can be done to support neighboring villages. As the government already provides drinking water, we have built wells in communities near our operations to supply water for other uses. Read more about our contribution to save drinking water and sanitation services in our Social Impact Report.

While water consumption is not the only factor contributing to water scarcity, sustainable water resource management will be vital for mitigating the impacts of climate change and supporting a growing agriculture sector. Independent smallholders are projected to manage 60% of oil palm land by 2030, so it is crucial for countries and businesses to innovate and use available water resources efficiently and equitably.