Thirst for profit - Allowing big business to take our water 

Access to clean water is a basic human right, but according to the UN, an estimated 2.2 billion people do not have access to safe drinking water. However, this does not have to be the case.  A new analysis by Oxfam of 350 agribusiness and food companies shows that companies are exploiting regulatory failures and existing inequalities to grab large portions of the world's water resources at the expense of people and the environment. Only 28% of companies report reducing their water withdrawals - despite the fact that the agricultural industry accounts for 70% of all water withdrawals globally.  
 
- We believe that the water crisis the world is facing is not caused by an actual lack of water, but by an unequal distribution of the water available. Large corporations are exploiting and polluting water resources without consultation with local populations or consideration of the local environment. Ultimately, it is also the governments of the world that allow this to happen despite the enormous need for clean drinking water," says Suzanne Standfast, Secretary General of Oxfam Sweden.

Climate change is exacerbating existing water scarcity, with an estimated additional 1.5 billion people lacking access to clean water by 2050. More intense droughts mean that countries that rely on agriculture for their livelihoods, particularly in the global south, are hurting economically, exacerbating poverty, food insecurity and health problems. Indigenous peoples, who are particularly dependent on close access to water, become more vulnerable when a few powerful actors seize water sources.  

Meanwhile, large companies are making the situation worse. In the new analysis, based on data from the World Benchmarking Alliance, only 23% of companies say they are working to reduce their water pollution and only 108 of the 350 companies analyzed are transparent about the amount of water withdrawals they make from areas affected by water scarcity. The agricultural sector accounts for 70 % of all water withdrawals, which they use to supply the meat industry and biofuel production, among others. Resources are predominantly taken from the Global South to meet consumption needs in the Global North, without consultation with local populations or consideration of the local environment. 

- When big companies pollute or consume huge amounts of water, local communities pay the price in terms of empty wells, higher water bills and contaminated and undrinkable water. "Less water means more hunger, more disease and more people forced to leave their homes," said Cécile Duflot, Director General of Oxfam France. 

Water and inequality are strongly linked. Rich people have better access to safe, public drinking water, and money to buy water, while people living in poverty, who often do not have access to publicly provided water, spend large amounts of their income on water.  

For decades, Oxfam has seen how people face daily challenges when trying to access clean water. They spend countless hours queuing or walking long distances, suffering the health consequences of dirty water.  

- "Clearly, we cannot rely on the goodwill of companies to change their behavior - governments must force them to behave and protect public assets above their profit interests," said Duflot. 

Oxfam calls on governments to: 

- Realize water as a human right and a public service. Profits should not be a priority when it comes to providing people with water. 

- Hold companies accountable for their violations of human rights and environmental laws. including water pollution.  

- Invest in water security, subsidized public water for all, sustainable water management and climate-resilient water, sanitation and hygiene (WASH) services. National planning and policy around WASH must include women at all stages: leadership, participation and decision-making.  

The Nature Benchmark methodology is available for download.

Download the Oxfam report "Thirst for Profit". 

Download Oxfam's Water Dilemmas report for more information on the impact of climate change on water.

Read more about Oxfam's work on water and sanitation.