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


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.

About

Watts Water Technologies, Inc. (stock ticker: WTS) supplies products and solutions that manage and conserve the flow of fluids and energy for the residential and commercial buildings. Headquartered in North Andover, Massachusetts, they operates in more than 24 countries..

WTS’s Role in Drawdown

Watts Water Technologies’ broad range of products can be classified into four product lines (p. 4-5). Three of these product lines contribute to the Drawdown solution of improving water distribution:

  • Their residential and commercial flow control products consist of products that are typically sold into plumbing and hot water applications. Things like backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. 
  • Drainage and water re-use products include drainage products and engineered rain water harvesting solutions for commercial, industrial, marine and residential applications.
  • Water quality products include point-of-use and point-of-entry water filtration, conditioning and scale prevention systems and monitoring and metering products.

WTS: What We Like

We applaud Watts for their track record in reducing their environmental and carbon footprint over the last several years. These achievements include:

  • Reducing water usage by 63 million liters in 2020
  • Reducing CO2 emissions by 4,000 metric tons in 2020. This was the latest accomplishment in a 16% reduction (p. 39) in scope 1 and 2 emissions combined since 2014.
  • Purchasing wind RECs to offset emissions from 100 GWh of electricity (p. 34) for the next 4 years


On top of these steps, Watts has set a target to reduce annual GHG emission intensity by 3% (p. 34) with 2018 as the baseline year. They’ve also committed (p. 30) to reduce annual water intensity by 3%

WTS: 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.

Other Water Efficiency Stocks in the Climate Index

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