Sustainability is now widely viewed as “a utility management framework that can provide significant benefits,” according to a new survey by Black & Veatch. The survey of water sector leaders, conducted in February and March, found that while sustainability can mean different things to different utilities, it is “not a passing fad.”
The report, 2012 Strategic Directions in the U.S. Water Utility Industry, found nearly all respondents think sustainability is important and more than half consider it a strategic focus for their utilities. When asked to select the most significant sustainability issue for their utilities, nearly half (47.9 percent) identified energy efficiency. Another 21.6 percent identified water scarcity, 17.4 percent said water conservation and 5.3 percent said chemical use. Among the 7.8 percent identifying “other” sustainability issues as most important, aging infrastructure and fiscal sustainability/economics were most often mentioned.
The report’s analysis suggests that sustainability “is increasingly viewed within the water utility industry as a driver for investment and positive returns (a value mindset) as opposed to strictly an environmental concept.” However, it notes the challenge of justifying financial investment in largely discretionary sustainability programs and projects to utility governing boards and political bodies when the benefits are non-economic. “An important objective for water and wastewater utilities with a desire to advance sustainability strategic objectives will be to develop and implement new business processes, organizational change initiatives, and advance project evaluation and risk analysis techniques geared towards honest justification and defense of sustainability program investments,” the report recommends.
Other key issues covered in the report include utility finance, the water-energy nexus and asset management. Among notable financial findings, only 26.7 percent of respondents believe that funding available for capital infrastructure projects will be sufficient.
The 2012 Strategic Directions report can be downloaded at http://bv.com/survey/2012-water-utility-report.