140

Years

of providing diverse water technologies to end markets

4000

Metric Tons of Reduced CO2

Reduced scope 1 and 2 emissions by 4,000 metric tons of CO2 in 2020

63

Million Liters of Water

Watts reduced water usage by 63 million liters in 2020

View Our Analysis

The Path to Drawdown:  Water Distribution Efficiency

Water utilities are among the largest consumers of electricity globally. They’re responsible for about 1% of total electricity use in the world. Up to 80% of that energy is used for pumping water alone. But ~35% of that water is wasted through pipe leakage, meter error, and unauthorized consumption. This all adds up, dramatically reducing the supply of water over time and producing unnecessary emissions to generate the energy used to pump more water.

Water efficiency solutions can minimize this leakage. Pressure management and active leak detection are two important solutions. Pressure management involves installing pressure valves at water inlets and outlets to better monitor water flow and pressures, and leads to reductions in pipe bursts and leaks. Solving leaks takes substantial investment, but it’s the cheapest way to source new supply, serve growing urban populations, and reduce emissions.

Project Drawdown estimates that, if 38-47% of the global water distribution network can adopt these solutions, it could reduce CO2e emissions by 0.66 - 0.94 gigatons between 2020 and 2050. That’s an emissions reduction equivalent to taking close to 204.5 million passenger vehicles off the road for one year.

What We Want to See Improve

Divest from the Gas Product Line

Over 30% (p. 4) of Watts Water Technologies’ total net sales in 2020 came from the product line that includes solutions for natural and liquid gas connectors. Needless to say, these products enable the continuation of gas as an energy source in many applications. We want to see Watts shift away from these product lines and focus on the Drawdown solution of improving water distribution.

Switch Completely to Renewables

According to Watts’ sustainability report (p. 37), their use of fossil fuels has been on the decline in the last three years. And we’re also very encouraged by Watts’ purchase of wind power that’s estimated to avoid emissions from 100 GWh of electricity consumed. But their use of natural gas and propane remains overwhelming. We urge Watts to accelerate their use of renewable and clean energy for their operations and transportation.

Enhance Scope 3 Disclosure Coverage

We commend Watts for tracking their scope 1 and 2 emissions since 2014 and taking the steps to reduce these emissions in the last several years. They’re beginning to track scope 3 (p. 39) as well, but for now they only disclose the scope 3 emissions from their supply chain in the Americas. We’d like to see the full disclosure that includes their suppliers in Europe and other regions.

Related Water Conservation Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

1.49%

Xylem (XYL)

Xylem offers solutions that help customers use water more efficiently and intelligently. Efficient water distribution conserves energy and cuts emissions

0.40%

Watts Water Technologies, Inc. (WTS)

Watts Water Technologies conserves the flow of water and energy in residential and commercial buildings. Water distribution efficiency helps cut emissions

0.23%

Itron (ITRI)

Itron makes control devices that measure and analyze electricity, gas and water consumption. Efficient water distribution can cut energy use and emissions

0.19%

Badger Meter (BMI)

Badger makes smart metering technologies that allow customers to measure and control water flow. Their solutions enhance water efficiency and reduce emissions

0.02%

Atlas Technical Consultants, Inc. (ATCX)

Atlas offer technical services on how to better manage water resources and leak detection. Water distribution efficiency can cut emissions

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