Reumo
Water crises are ranked among the top global risks, and it is projected that by 2030, 2 billion people will still lack access to safe drinking water. This escalating demand poses challenges and opportunities for businesses, especially those significantly impacting water resources. In this regard, water management accounting plays a crucial role in supporting corporate decision-making and improving both economic and environmental water-related outcomes. It involves assessing water contexts, identifying impacts beyond firm boundaries, recognizing risks and opportunities, setting targets, and reporting to stakeholders. Therefore, this study aims to understand the water management accounting practices of a multinational consumer goods manufacturer. By examining the company's experiences, stakeholder engagement, motivations, and inherent limitations, the research provides valuable insights into corporate sustainability and environmental management accounting, moving toward greater corporate water responsibility. Through a case study with semi-structured interviews, managers involved in sustainability and water management practices across different countries were interviewed between 2023 and 2024. The company was selected due to its "very high" water impact classification and national recognition for sustainable water resource management. The content analysis involved a triangulating method and was conducted using ATLAS.ti software to code and classify data. The interview findings indicate that the company is motivated to implement water management accounting practices in order to lead in sustainability, develop sustainable products, and reduce costs. Stakeholder pressure, particularly from consumers, investors, and the government, appears to be a driving force behind water accounting practices. Engaged leadership was identified as crucial for enabling investments in water initiatives. Challenges include weak legislation in regions like Brazil compared to the stringent regulations in Europe, a lack of governmental incentives for water-saving practices, the low cost of water, and a lack of consumer engagement in water issues due to price considerations. Additionally, four main themes and their corresponding categories were identified after the researcher's immersion in the case study: the operational management of water resources, the development of sustainable products, global strategies and alignment with international standards, and water reporting practices. This study offers valuable insights into corporate water responsibility by examining a real-world case. It highlights the importance of stakeholder engagement, robust regulatory frameworks, and internal corporate strategies in advancing water management accounting practices. The findings encourage legislators to address regulatory gaps and aim to advance water accounting and management practices, fostering greater corporate responsibility in water stewardship.