1-17. AWS (Alliance for Water Stewardship) Certification: Global Trends and Adoption Benefits

The Alliance for Water Stewardship Standard (AWS Certification) is an international certification system aimed at managing water resources sustainably and fairly. The first edition was published in 2014, and it is now being adopted in industrial parks, manufacturing bases, agricultural facilities, and other locations around the world. The background to this is the shortage of water resources due to climate change and population growth, friction with local communities over water use, and increasing demands for ESG from investors and customers. Water is no longer simply a management resource; it has become a strategic factor that influences business continuity and corporate reputation.

The AWS Certification framework is based on the concept of "Good Water Stewardship" and consists of five result areas: 1) Good water governance (compliance with laws and regulations and transparency), 2) Sustainable water balance (optimizing water withdrawals and supply), 3) Good water quality (reducing pollution and improving water quality), 4) Protection of important water-related areas (respecting ecosystems and cultural values), and 5) Access to safe water and sanitation (considering local residents and workers). Companies are required to achieve sustainable water use not only through their own business activities, but also by working with local communities and stakeholders in the entire watershed.

As an international trend, AWS certification has attracted the attention of multinational corporations and investors. Major companies such as Unilever, Nestle, and Coca-Cola have introduced AWS certification into their supply chains, and there is a growing trend to incorporate it into procurement standards and trading terms. In particular, in emerging countries with high water stress, coexistence with local communities is a prerequisite for business survival, and AWS certification serves as a "social license." Financial institutions and institutional investors are also paying attention to AWS certification as one of the ESG evaluation indicators for companies, and there are an increasing number of cases where it is directly linked to fundraising and investment decisions.

There are many benefits to adopting AWS certification for Japanese companies as well. First, it reduces business risk. If water shortages or water quality issues occur in the area where a factory is located, the company risks the suspension of operations and local conflict. AWS certification improves business continuity by systematizing risk assessments and countermeasures. Second, it earns the trust of business partners and investors. Visualizing ESG compliance is essential to maintaining competitiveness in the global market, and AWS certification serves as solid evidence of water resource management. Third, it reduces costs. The introduction of water-saving technologies and wastewater reuse directly leads to reduced water usage fees, bringing long-term economic benefits.

The implementation process involves: (1) understanding the situation in the watershed and water use, (2) dialogue with stakeholders, (3) formulating and implementing an improvement plan, and (4) obtaining certification through external audits. Like ISO standards, it incorporates the PDCA cycle, requiring continuous improvement. Communication with local residents, local governments, and water utilities is particularly important, and collaboration across the entire watershed, rather than with individual companies, is a prerequisite.

In conclusion, AWS certification is a powerful framework for addressing international issues surrounding water resources, and it also brings significant benefits to Japanese companies in strengthening their export competitiveness, responding to ESG investments, and building relationships with local communities. As water resource management becomes a management issue, AWS certification goes beyond simply addressing the environment and has become an important indicator of a company's sustainability.