0.7

Million Metric Tons of Avoided Emissions

In 2020, Xylem helped customers reduce their carbon footprint by 0.7 million metric tons of CO2

0.5

Billion Cubic Meters of Water

Xylem helped save 0.5 billion cubic meters of water from leaks or unauthorized use in 2020

4.3

Billion Cubic Meters of Reused Water

Xylem installed treatment solutions help customers reuse 4.3 billion cubic meters of water

View Our Analysis

The Path to Drawdown:  Water Distribution Efficiency

Water utilities are some of the largest consumers of electricity globally, 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 leaks, meter error, and unauthorized consumption. This dramatically reduces water supply over time and produces unnecessary emissions to generate the energy used to pump more water.

Water efficiency solutions can minimize this waste. Pressure management and active leak detection are two major solutions. Pressure management means 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 financial 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 water distribution network worldwide can adopt pressure management and leak detection solutions, it would 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

Reduce Absolute Emissions at All Global Locations

Xylem’s 2025 target includes several commitments to enhance sustainability at their major facilities. But according to their definition (p. 112), only 22 of their 375 locations in more than 50 countries (p. 25) qualify as major facilities. We’re afraid reducing emissions, increasing renewable energy use, and reducing waste from such a small portion of their total facilities won’t amount to serious impact. We urge Xylem to extend their targets to all of their global locations.

Completely Transition to Renewable Energy

Xylem relies overwhelmingly on fossil fuels for their operations. In terms of their direct energy use in 2020, only 1.04% is renewable electricity (p. 68). The rest is natural gas, gaseous propane, liquid propane, and fuel oil. We applaud their commitment to shift to 100% renewable energy at their major facilities. We would like to see all of their facilities transition completely to renewable sources of energy.

Switch to Environmentally Friendly Banks

Xylem entered into a five-year credit facility with Citibank in 2019 (p. 87). Unfortunately, Citibank is one of the largest banks that still fund fossil fuel companies. For their future loans, we want to see Xylem switching to environmentally friendly banks that, on principle, don’t fund the fossil fuel industry.

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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