Are Companies Prepared for Water Scarcity? : A Study on Strategic Water Resource Management in Water-Dependent Companies

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Are Companies

Prepared for

Water Scarcity?

BACHELOR THESIS WITHIN: Business Administration NUMBER OF CREDITS: 15 ECTS

PROGRAMME OF STUDY: Sustainable Enterprise Development & International Management AUTHORS: Ellinor Axelsson, Hanna Fox, Tilma Lundkvist

JÖNKÖPING May 2020

A Study on Strategic Water Resource

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Acknowledgements

To start with, we would like to thank all the company representatives at the companies we have interviewed during this process. They were all friendly and did their best to answer our questions understandably so that our thesis could take form.

Ulla Saari, our tutor, helped us in all ways imaginable and was always available to sort out our inquiries. She made time for us, and we are very grateful for this.

Last but not least, we want to thank each other. All the hours each of us have dedicated to the study leading to our finished thesis have been well-worth, and we have all gained two new friends in the end.

Ellinor Axelsson Hanna Fox Tilma Lundkvist

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Bachelor Thesis in Business Administration

Title: Are Companies Prepared for Water Scarcity? - A Study on Strategic Water Resource Management in Water-Dependent Companies

Authors: Ellinor Axelsson, Hanna Fox, Tilma Lundkvist Tutor: Ulla Anneli Saari

Date: 2020-05-18

Key terms: water resource management, water scarcity, crisis management, water-dependent, strategic management

Abstract

Purpose: The aim of this research is firstly to find out whether or not companies have strategies

to address future scenarios of water scarcity. It is of importance to find out what they are doing to mitigate the issues they already have or will encounter in the future. Secondly, motivational drivers who have affected their decision-making are discussed in order to fully understand the process of working with water scarcity.

Method: The qualitative research paper is based on five in-depth interviews with open-ended

questions. The interviewee was able to explain the processes and strategic decision-making of the company. Follow-up questions were sent via email to complement these.

Findings: The study declares that the majority of the companies had vague strategies to

minimize water consumption and mitigate the issues they would encounter in a situation of water scarcity. They were more like visions or intentions. The motivational drivers and pressures companies have encountered and which have initiated the process and developing strategies were primarily the four following: (1) economic, (2) environmental, (3) social, and (4) impact from authorities.

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1. Introduction ... 1 1.1 Scenario ... 1 1.2 Background ... 2 1.3 Problem discussion ... 4 1.4 Purpose ... 5 1.5 Research questions ... 5 1.6 Use of Research ... 5 1.7 Terminology ... 6 2. Frame of Reference ... 7 2.1 Method ... 7 2.2 Current Situation ... 8 2.2.1 Water as a Resource ... 8 2.2.2 Water Scarcity ... 8

2.2.3 Water Scarcity and Business ... 9

2.3 Consumption Assessment ... 10

2.3.1 Water Footprint ... 10

2.3.2 Global Reporting Initiative ... 11

2.3.3 International Organization for Standardization ... 11

2.4 Management ... 12

2.4.1 Crisis Management ... 12

2.4.2 Strategic Decision-Making in Business ... 12

2.5 Water Resource Management Strategies ... 13

2.5.1 Reuse of Wastewater ... 14

2.5.2 Water Efficiency ... 15

2.5.3 Integrated Water Resource Management ... 15

2.5.4 Education for Business in Water Scarcity ... 16

3. Methodology ... 17 3.1 Research Paradigm ... 17 3.2 Research Approach ... 18 3.3 Research Design ... 19 3.4 Data Collection ... 20 3.5 Data Analysis ... 21 3.6 Delimitations ... 23 4. Empirical Findings ... 25

4.1 Experience of Water Scarcity ... 25

4.2 Geographic Position ... 26

4.3 Environmental Motivation ... 26

4.4 Economic Motivation ... 27

4.5 Social Motivation ... 28

4.6 Impact from Authorities ... 28

4.7 Consumption Assessment ... 29

4.8 Decision-Making ... 30

4.9 Current Strategy ... 30

4.10 Future Strategy ... 32

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5.1 Research Question 1 - How are water-dependent companies using strategic water resource

management to prepare for present and future water scarcity issues? ... 33

5.1.1 Reuse of Wastewater and Water Efficiency ... 33

5.1.2 Education for Business in Water Scarcity ... 34

5.1.3 Integrated Water Resource Management ... 34

5.1.4 Decision-Making ... 35

5.1.5 Geographic Position ... 35

5.2 Research Question 2 - What are their motivational drivers? ... 36

5.2.1 Economic Motivation ... 36

5.2.2 Environmental Motivation ... 37

5.2.3 Social Motivation ... 38

5.2.4 Impact from Authorities ... 39

6. Discussion ... 40 6.1 Discussion of Findings ... 40 6.2 Future Research ... 41 6.3 Ethical Considerations ... 43 6.4 Limitations ... 43 7. Conclusion ... 45 8. Reference list ... 47 9. Appendices ... 53 9.1 Appendix 1 ... 53 9.2 Appendix 2 ... 55 9.3 Appendix 3 ... 56 9.4 Appendix 4 ... 57 9.5 Appendix 5 ... 59

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1. Introduction

The purpose of the introduction is to introduce the reader to the topic of strategic water resource management and why it is essential. The objective of the scenario is to set the scene and communicate the importance of the topic. Later, the introduction includes background, problem discussion, purpose, research questions, use of research, and terminology.

1.1 Scenario

It is August, and you are on your way to work. As a manager at a large company, the situation has not favored you in the eyes of the public. It is 8:30 am and almost time for the emergency board meeting. As you are heading out the door, you hear the TV in the background:

“Sweden is experiencing severe consequences of the drought. Farmers are forced to slaughter their animals, forest fires continue spreading, and harvests are expected to decline drastically. After the news, we are meeting a guest from The Swedish Civil Contingencies Agency (MSB) who will talk to us about the ongoing water crisis.”

Frustrated, you close the door and leave. At the board meeting, you will discuss what strategies the company should take from now on. You remember the drought in 2018 and how the board discussed ambitious strategies to decrease the water consumption of the company, but never really turned out in any concrete actions.

Many companies have had to uphold their operations due to the situation. If the board does not decide on a new strategy today, it might have to face the same consequences. If you only would have been more prepared.

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1.2 Background

Already in the Brundtland Report, it was recognized that there are environmental limits to economic growth (Brundtland, 1987). However, the human population is still withdrawing environmental resources in an unsustainable manner (Winarno, 2017). According to the United Nations (UN), “Water plays a pivotal role in how the world mitigates and adapts to the effects of climate change.” (UN, 2018a). Moreover, it is no doubt water is a necessity to all life on earth (Global Reporting Initiative [GRI], 2018; Hofste, Kuzma, Walker, Sutanudjaja, Bierkens, Kuijper, Sanchez, Beek, Wada, Rodriguez & Reig, 2019; WWF, 2016). In the 2030 Agenda for Sustainable Development, goal number six is concerned with ensuring availability and sustainable management of water and sanitation for every human on the planet (UN, 2018b). Water scarcity is, according to the Swedish Meteorological and Hydrological Institute (SMHI) (2019), when there is a higher demand for clean water than what is available. The shortage, therefore, has a secure connection to water use and is a severe issue (Stensen, Krunegård, Rasmusson, Matti, & Hjerdt, 2019).

Not only are individuals dependent on stable access to water, but it is also a crucial resource for businesses (Water Footprint Network, n.d.). Accordingly, businesses’ mindfulness of their water dependency is growing (WWF, 2015). Also, the World Economic Forum (WEF) stated in 2015 that crises are the number one risk when discussing the impact on the global economy (WEF, 2015).

Taking Swedish businesses into account, few discuss the risk of water scarcity. Many people even say the opposite; “In comparison to many other countries, Sweden’s water resources are abundant and relatively well managed.” (WWF, 2015, p. 4). However, SMHI (2019) states that even though Sweden has abundant access to freshwater, there is still a risk for water scarcity due to climate change. The Swedish Portal for Climate Change Adaptation (Klimatanpassning.se) (2019) states that a warmer climate leads to different access to freshwater due to changes in rainfall evaporation, and the length of the vegetation period. They also emphasize that access to water is affected by both natural elements and human withdrawal. Furthermore, the Geological Survey of Sweden (SGU) states that in some places in Sweden, the amount of groundwater available is not enough for the Swedish water consumption (SGU, n.d.).

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Not to mention, observing the state of water bodies on the 29th of April 2020 in Figure 1, the levels are below average in most parts of Sweden (SMHI, 2020). The Swedish Agency for Marine and Water Management (2018) has stated that many parts of Sweden experienced water scarcity in 2016, 2017, and 2018. After the summer of 2018, the Government Office of Sweden implemented new actions to increase knowledge, emergency water planning, and forecasting water demand, due to the significant consequences of the three-year-long water scarcity situation (Government Office of Sweden [Regeringskansliet], 2018). In the year 2020, parts of Sweden have already suffered from water scarcity, leading to the Gotland region imposing a ban on irrigation on several parts of the island on the 1st of April, 2020 (Region Gotland, 2020).

Simultaneously, as the supply of water might decrease, the demand for water is increasing, leading to excess demand for water (Friedler, 200; Roson & Damania, 2017). According to KPMG (2012), there will be a 40% excess demand for water in 2030. Businesses are demanding more water. For instance, in 2050, the manufacturing industry is stated to have increased their water demand by 400% (WWF, 2015).

Currently, technological solutions to meet parts of the increased demand for water are available (WWF, 2015), but according to WWF, “challenges go beyond technical solutions” (WWF, 2015, p. 6). Therefore, it is necessary to find new approaches in order to tackle the issues at hand. The Water Footprint Network (n.d.) states that businesses have begun to understand that the mismanagement of water resources can lead to unacceptable consequences. SMHI (2019) emphasizes the vitality to adapt to manage changes in water access and the importance of water resource planning. It is crucial to be mindful of how water is handled and consumed, as water is a closed cycle (SGU, n.d.). Therefore, it is of importance for companies to prepare for future water scarcity issues (EY, 2012).

Figure 1, Swedish waterbodies, April 29th, 2020 (SMHI, 2020)

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1.3 Problem discussion

This thesis discusses water scarcity and how companies work with strategic water management to mitigate the issues. Water scarcity is, as previously stated, an issue predicted to grow in the future. The uncertainty could be to what extent and where the problem will be most critical. Even though this is possible to predict, one can never precisely know to what degree individual companies will be affected. Water-dependent companies which are exposed to water scarcity will therefore need to be prepared in order to meet this situation (EY, 2012). If they are not, their business operations could be severely affected. Some companies might not even be able to operate in a water scarcity situation.

Another plausible consequence of a water-dependent company not being prepared for water scarcity is that, in an emergency, they would feel the need to claim the little water available in order to uphold their business. In a case like this, the public could be left without any water which would have severe consequences, which can severely damage a company's reputation (Pittock & Lankford, 2010). A strategy to lessen this issue could be to compensate the volume of water consumed by the company but to do so would be a major shift in daily operations.

Existing literature provides guidelines for ideas of actions which could minimize the amount of water a company uses and consumption assessment. However, there is a gap in the knowledge between what literature says one can do and how actual companies work in practice. Operating in times which are uncertain calls for strategic management practices which fit the needs of the specific company and their operation processes (Lambooy, 2011). The situation might very well be that companies are not as up to date on new research as would be optimal to meet future challenges. The strategies they then present could be entirely different from those proposed by research and thereby creating a major gap. This is partially what will be investigated in this study.

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1.4 Purpose

The aim of this research is firstly to find out whether or not companies have strategies to address future scenarios of water scarcity. The focus is not to declare whether or not there is a risk for water scarcity and, if so, the extent of it. Instead, the focus is to discuss how prepared companies are and define their awareness of present and future water scarcity. Therefore, it is of importance to find out what they are doing to mitigate the issues they already have or will encounter in the future. Secondly, motivational drivers who have affected their decision-making are necessary to list and discuss in order to understand the process of working with water scarcity fully.

1.5 Research questions

To provide a structure for the research and to meet the purpose, the research team has proposed two research questions:

• How are water-dependent companies using strategic water resource management to prepare for present and future water scarcity issues?

• What are their motivational drivers?

1.6 Use of Research

This research is intended to be used as a guideline for companies striving to develop their strategic management of water resources. With this, other companies can see how the companies in the study which are similar to them have done and what issues they have met. Following this, they can create strategies to manage water resources of their own. As stated before, water scarcity is an issue in many places and the issue will grow. With this in mind, having research which points out what can be done to mitigate the issues for the business will certainly be beneficial.

An additional use is a foundation for future research. Since water scarcity has, as stated in the background, become an ever rising problem in many of the world’s countries, the issue is highly relevant and will most probably be researched more eagerly in the future. For this to be possible, a base is necessary to then be able to elaborate on. As this study in meant to focus on countries

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not experiencing water scarcity to a wide extent at present but might in the future, Sweden is a suitable country to have chosen to then be applicable to other countries with similar circumstances.

1.7 Terminology

This research is done primarily for business administration professionals and those working with sustainability issues such as water resources. Below, a list of terminology has been assembled for the findings of the research to be entirely understandable.

Water scarcity = a lack in available supply or excess demand of freshwater

Water crisis = when water scarcity is significant enough to affect businesses and communities

critically

Water-dependent companies = companies whose production and business operations are

reliant of a steady supply of water

Strategic Water Resource Management = sustainable management of resources to make sure

the company can handle water scarcity in the future

Crisis Management = managing issue in a crisis

Motivational Drivers = factors within water scarcity that motivate or pressure a company to

act

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2. Frame of Reference

This section presents the method of the frame of reference. This is followed by a presentation of the current situation, consumption assessment, management, and water resource management strategies.

2.1 Method

The frame of reference aims to present the existing literature by considering four main themes. Firstly, the current situation of water as a resource, water scarcity, and water scarcity and businesses are discussed. Secondly, several tools for assessing water consumption are introduced, such as Water Footprint, Global Reporting Initiative, and International Organization for Standardization. Then, literature connected to crisis management and decision-making. Lastly, the literature containing strategies possible for businesses to implement are presented, namely, reuse of wastewater, water efficiency, Integrated Water Resource Management, and education for business in of water scarcity.

The found literature was systematically reviewed to create an overview of the chosen topic. To find literature suitable for the frame of reference, the online database, Primo, was the source of peer-reviewed articles. Additionally, reports were found by searching in the Google search engine for informational reports conducted by water authorities and organizations. The time baseline for both articles and reports was narrowed to 10 years, but in cases where timeless information was found, exceptions were made. Articles were only accepted if they were from peer-reviewed journals. A selection of the search words used to find articles to the literature are as follows: strategic water management, water AND strategy, assessing water risk, reuse of wastewater, profit maximization AND sustainability, water efficiency, crisis experience, crisis management, water AND business, and consumption assessment. Additional ways to find literature were to scan the reference lists of those articles previously found through the stated method.

From the many articles found in Primo, 70 of those were identified as potentially relevant to the chosen research topic. Each abstract was read carefully to narrow down the number of articles. Next, 54 articles were still considered applicable and thoroughly read. Finally, a total

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of 37 articles were identified as being of high value for the research topic and thereby used in the frame of reference.

2.2 Current Situation

2.2.1 Water as a Resource

When it comes to water as a resource, there are no objections in the literature that water is a necessity without a substitute and essential to all life on earth (GRI, 2018; Hofste, R et al., 2019; WWF, 2016). Even though two-thirds of the globe is covered by water, only 2.5% is freshwater, and out of that, only about 1% is available for ecosystem consumption (PwC, 2013). The total amount of supplied freshwater will never decline or decrease since water is a closed cycle. However, increased demand for freshwater could make it appear as if supply was decreasing (Friedler, 2001; Roson & Damania, 2017). This is especially true when the water supplied is used irresponsibly or with an inefficient strategy (WWF, 2016).

2.2.2 Water Scarcity

In contrast to the supply, demand is constantly changing and on a steady rise without exceptions to decline (PwC, 2013). However, an increasing demand is not solely connected to population growth. The increase in demand is more rapid than the pace of the population (2030 Water Resource Group, 2013). WWF (2015) refers to the underlying reasons as an overall increased purchasing power, resulting in a so-called thirsty population, where the demand for water-dependent products is higher than for a population with a low purchasing power.

When demand increases while available supply decreases, there is an excess demand for water, meaning there is not enough water to support all needs or wants (Friedler, 2001). This phenomenon is called water scarcity (EY, 2012; Garcia & Pargament, 2015; WWF, 2015). A repeating statement throughout the literature is that water scarcity is severe and should be considered a crisis. WEF (2019), for example, states that water scarcity is of high impact and with high likelihood when it comes to what might cause a crisis. Literature also states that one of the most critical challenges of the 21st century is reliable access to water (Podimata & Yannopoulos, 2015). An article by Lambooy (2011), states that, by 2011, water scarcity was already affecting one-third of the people in every continent. In contrary to what one might think,

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this also includes what the author of the article calls Western society. Despite the potable tap systems, unlimited access to freshwater should not be taken for granted.

The urgency of water scarcity and a potential water crisis is shown in the UN Sustainable Development Goals. One of the declared goals, known as goal 6, states, “Ensure availability and sustainable management of water and sanitation for all,” and determines that available water resources are a human right (GRI, 2018; IPCC, 2019; UN 2018b). Furthermore, the UN (2018b) report expresses that the time to act upon goal 6 is now, while we still have time. Due to the critical state of the water scarcity, not only people but also businesses are at risk (EY, 2012). The high significance of having effective water management is strengthened when presented in the UN Sustainable Development Goals as a crucial part of solving an upcoming water crisis (GRI, 2018; UN, 2018b). Also, water management frameworks have always had high importance, but its presence is even more essential because of the emerging water crisis (Organisation for Economic Cooperation and Development [OECD], 2008).

2.2.3 Water Scarcity and Business

As briefly discussed in the previous paragraph, managing water scarcity should be of interest to businesses. Lambooy (2011) presents four corporate drivers to reduce water use. Firstly, a company’s self-interest, where water becomes more scarce than before, it also becomes more valuable and thereby more likely to increase in price. Secondly, if a company’s operations are dependent on a constant flow of water, it should be a matter of course, to protect the resource. Thirdly, Lambooy means that it is suitable for businesses to be mindful since acting in an irresponsible matter can damage a company’s reputation. Lastly, it is beneficial for companies to be prepared in advance if, or when, the government decides to pressure for change. Similarly, Pittock and Lankford (2010) identify reasons why water risk is of importance for businesses and does not differ much from the previously mentioned drivers. These reasons are financial risk, operational risk, product risk, reputational risk, and regulatory risk.

Not to forget, businesses private citizens are competing users of water (Lambooy, 2011). Therefore, a lack of water can be a susceptible question. This is especially demonstrated in literature through the agreed reputational risks deriving from the subject. The companies that contribute to water scarcity risk a bad reputation (Hofste et al., 2019; Lambooy, 2011; Pittock & Lankford, 2010; WWF, 2015). Moreover, to create a credible business reputation in times of

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crisis, forthrightness in communications is a vital factor (Greyser, 2009). Further, (Bernett & Pollock, 2012) mention that reputation is correlated with the economic performance of the business and that a bad reputation can lead to fewer profits.

As mentioned earlier, respecting water scarcity and the connected risks is essential for everyone. Nevertheless, companies in sectors with intensive water use are naturally more at risk. These sectors are, according to (EY, 2012), most commonly mining, agriculture, high-tech, power suppliers, forestry, food and drink, and pharmaceuticals. Additionally, Pittock & Lankford (2010) agrees with this but has also identified manufacturing and oil and gas as water-intensive sectors. Furthermore, irrigation in agriculture is emphasized as the most intense usage of water (OECD, 2008; Podimata & Yannopoulos, 2015; Roson & Damania, 2017).

2.3 Consumption Assessment

When assessing the current situation for businesses, there are some tools and frameworks available. Assessing the amount of water used by a company in their production is essential before making any strategic decisions, and allows the business to understand their impact on water scarcity (Assumpcao, Cohen, Kligerman, & Piccoli, 2016; EY, 2012), establish benchmarks (EY, 2012), and set a base for making better decisions (Pittock & Lankford, 2010). Below, four water accounting systems found in the literature are presented.

2.3.1 Water Footprint

The first water accounting system presented is Water Footprint (WF), which interlinks water withdrawn for production with consumption. The WF connected to production includes all direct and indirect water withdrawal for production from regional sources where a lower WF means higher water efficiency. The WF connected to consumption includes all water withdrawal used in the production of products consumed by those living in a particular region. It urges the company to think of the whole supply chain instead of only internal operations in production and thereby supports managers in the decision-making process (Mekonnen & Hoekstra, 2014; Pittock & Lankford, 2010; Vanham, 2018).

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The WF gives an understanding of the impacts a company or a product has on water scarcity; however, it gives no suggestions of action to mitigate the risks. According to Chapagain and Tickner (2012), this is a way to raise awareness of water scarcity and how water is used unsustainably. They further state that when applying the WF to assess consumption can lead to a greater understanding of water use, economics, business operations, societal, and environmental risks.

2.3.2 Global Reporting Initiative

Global Reporting Initiative (GRI) is an organization which offers guidelines that businesses can use when reporting sustainability in their processes. The framework combines principles and indicators for measuring their environmental, social, and economic work and also promote wise decision-making (EY, 2012; GRI, 2018).

The indicator GRI 303 is specific for Water and Effluents and acknowledges requirements, recommendations, and guidance, which are necessary for the intended outcomes of the reporting system. The idea is to stimulate a collective understanding of their water impact within the organization and spur them to prioritize water in their sustainability actions and develop effective management of water. The company is required to disclose all procedures related to water withdrawal and water use, as well as how issues are reported to stakeholders (GRI, 2018).

2.3.3 International Organization for Standardization

International Organization for Standardization (ISO) is used to create a general agreement on best practices involved in water management ranging from pipes to irrigation to sanitation. Specifically, ISO 14046 allows the business to see their impact and aids them to develop their strategies (ISO, 2017).

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2.4 Management

2.4.1 Crisis Management

When discussing crisis management, it is of high importance to assess the seriousness of the crisis, the likely impact of the crisis, and the strength of the initiatives implemented to fight the crisis (Greyser, 2009). Furthermore, the literature has several contradicting opinions when it comes to how crisis experience affects preparedness for future crises. On the one hand, Hede (2011) finds the experience of crises to be beneficial. However, she also means to say that there can be flaws in managers’ readiness. Crisis experience could actually lead to over-learning (Stern, 1997), and increasing the complexity of the situation, which is not favorable (Weick & Sutcliffe, 2001). On the other hand, crisis experience can have positive effects in terms of increased motivation for learning (Boin, Hart, Stern & Sundelius, 2006), and managers understand the true scope of a situation (Weick & Sutcliffe, 2001). Crisis experience can, to a greater extent, make managers more proactive (Hede, 2011), and if businesses are to learn at all, crisis experience is a necessity (Deverell, 2009). Greyser (2009) strengthens this and agrees that past and present corporate behavior is vital when dealing with crisis management.

2.4.2 Strategic Decision-Making in Business

Sufficient collaboration between scientists and decision-makers is important in order to gain aspects from both researchers about sustainability and real-world decision-making (Pahl-Wostl, 2009). The main goal of these actors can vary, but when discussing why, Menzel (2009) talks about how individuals compare costs and benefits. She continues by saying that behavior which can be interpreted as unsustainable can often stem from times where the sustainable option is not preferred if considering profitability. This goes to show that it is not optimal to have only one group of specialists present. Koch, Nafziger, and Nielsen (2015) follows this statement and implicates that emotions play a big role when decisions are made, and state that emotions very well could affect the outcome.

In order to further secure water availability for all, collaborations between governments and corporations are essential when it comes to water resource management. The government can pose as a regulator to restrict the consumption of certain sources because they are especially

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endangered. Combining the approach of both businesses and governments will, therefore, give the best result (Lambooy, 2011).

It is also stated by Banerjee (2014) that it is important for the management of businesses to not only focus on profit maximization since it can lead to a lower involvement in other issues such as social or environmental. Stubbs (2017) discusses that those corporations that have governance focusing on using business profit as a tool to do something good are more likely to succeed rather than those businesses that only focus on creating profits, implementing environmental and social goals into the core of the business.

It is also worth mentioning that more knowledge within the area of climate systems can lead to higher uncertainty, which makes the process yet more challenging (Menzel, 2009). Although knowledge and education are important, how much money to actually invest in internal education regarding water scarcity is a critical decision (Koch et al., 2015). Businesses that focus more on people, rather than profit, are said to be more prepared in crises; that is, corporate culture matters (Fearn-Banks, 2010).

2.5 Water Resource Management Strategies

Companies that have resource management strategies and are aware of challenges tied to them are much better prepared for future issues (EY, 2012). Therefore, establishing strategies today and taking upon these could possibly be a comparative advantage in the future (Lambooy, 2011; WWF, 2015). The demand for water is increasing while the available supply can be perceived to be more scarce (2030 Water Research Group, 2013; Friedler, 2001; Hofste et al., 2019; Mekonnen & Hoekstra, 2011; WWF, 2016;). Therefore, companies need to implement new strategies to manage their use of water (EY, 2012). Additionally, a clear strategy is necessary in order to facilitate business responses and implement them. However, depending on the purpose of the company, it is essential to keep in mind that the most appropriate strategy will alter (EY, 2012).

The literature identifies five main water resource management strategies. These are (1) reuse of wastewater, (2) water efficiency, (3) integrated water resource management (IWRM), and (4) education for business in water scarcity.

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2.5.1 Reuse of Wastewater

Beginning with reuse of wastewater, it is a favorable solution, not only because it is a potential source of water but also because it is a good option when potable water is not necessary (Garcia & Pargament, 2015; Mekonnen & Hoekstra, 2011). Initially, the primary use of wastewater was irrigation, but at present, there are ways to treat wastewater to make it feasible for human consumption (Garcia & Pargament, 2015). In this context, it can help relieve the strain on existing water systems, hence minimizing scarcity (Friedler, 2001).

As mentioned in the literature, there are mainly three types of water reuse; (1) direct wastewater reuse, (2) natural water body argumentation, and (3) indirect wastewater reuse. Direct wastewater reuse is concerned with the direct use of effluent, drinkable water for non-potable use, for example, in irrigation or industrial use. Natural water body argumentation is when wastewater is disposed into larger bodies of water, after having made sure that the quality meets all standards. Finally, indirect wastewater reuse is when wastewater is treated through a groundwater process, often following a natural water body augmentation (Garcia & Pargament, 2015).

Issues related to the reuse of wastewater are mainly concerned with regulations and distribution, environmental and public health, and acceptability. While the technology for this exists today, investing in it requires large amounts of financial resources as it is vital to have the correct storage in order to separate the distribution of potable and effluent water. At first, wastewater might be contaminated with pesticides, heavy metals, fertilizers, sanitary conflicts, and other substances, which could be of harm to humans, animals, or the environment. Acceptability from the public is the greatest obstacle for reuse of wastewater, as can be understood by the previous addition. However, the public might be pushed to accept the reuse of wastewater when exposed to environmental change (Garcia & Pargament, 2015).

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2.5.2 Water Efficiency

Water efficiency is a resource management strategy with the aim of minimizing the volume of water used for a specific purpose. Possible approaches, when considering production, are more efficient irrigation systems, choice of crops, and limiting numbers of livestock (WEF, 2019). Vanham (2018) adds that consumer behavior, energy use, food consumption, and buying of resource-intense products are worth considering when looking at the issue of increased demand for water. Additionally, it is argued that the previous strategy, reuse of wastewater, is a water efficiency approach too.

In addition, PwC (2013) has developed a water strategy regarding efficiency. They argue that water issues impact all users, not only businesses in the water sector. Their strategy framework firstly includes companies quantifying their water usage. Next, they analyze the environmental, social, and economic impacts of their water usage. Later, the companies implement risk management strategies and examine water-related opportunities since they now have an understanding of their impact. Finally, the companies report their water-related impact and defend the stability of their new strategy.

2.5.3 Integrated Water Resource Management

Assumpcao et al. (2016) make it clear that even though employees are able to take initiatives on their own, one should not make decisions alone, for others or allow others to make decisions for oneself, but instead work together to achieve goals. This is an important aspect that encourages an integrated collaboration between several levels in an organization. Integrated Water Resource Management (IWRM) makes sure that a strategic decision is integrated throughout the whole organization and that costs and benefits from all perspectives are included (Garcia & Paragament, 2015). Not to mention, the UN (2018b) acknowledge IWRM as a key strategy in achieving the Sustainable Development Goal number 6, which was presented earlier.

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2.5.4 Education for Business in Water Scarcity

Education prepares for good decision-making by giving tools and encouraging partnerships among key stakeholders. In order to fully understand the impact on water scarcity and engage the organization as a collective, all members need to understand two main perspectives. The first is the urgency of the matter of water scarcity. The second is the current state of the company’s processes. (Assumpcao et al., 2016; WWF, 2015). Another view is understanding the necessity of water and the projections of future water scarcity, such as how it will affect your company, both in onshore and offshore production (Assumpcao et al., 2016).

Employees who are educated can take action on their own without depending on instructions from leaders. In the business environment, employees are able to evaluate processes and operations and thereby participate in the development of water resource management strategies (Assumpcao et al., 2016). Some companies have taken actions to mitigate water scarcity with risk assessment, establishing policies, and interconnected education between stakeholders (Chaplain & Tickner, 2012). Water is a shared resource, and just because one business does not overexploit, it does not ensure that another one will not do so. For this reason, it is important that everybody involved in decision-making is educated in the area and understands the impacts their actions have on ecosystems and water scarcity. This underlines the significance of involving stakeholders, such as suppliers, local communities, and competitors (WWF, 2016).

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3. Methodology

This section presents the research methodology together with a description of how the research was conducted. This includes research paradigm, research approach, research design, data collection, data analysis, and delimitations.

3.1 Research Paradigm

The chosen research paradigm is interpretivism. This is because the research questions focus on understanding the complexity of social reality, rather than to measure the social reality (Collis & Hussey, 2014). When deciding on how the research should be conducted and what techniques to use, it was recognized that multiple interpretations exist on how the companies operate. There will most likely be different answers to the questions depending on whom in a company is asked. This, since the research, is affected by personal opinions, experiences, and feelings, and thus might be value-laden and biased. Hence, the research subjective rather than objective (Collis & Hussey, 2014).

Moreover, all companies will probably have unique ways of preparing themselves for present and future water resource scarcity, since each company is organized in different ways and because unique individuals govern each company. This makes it difficult to measure the phenomena or provide mathematical justifications as to why the companies are doing what they are doing, which is connected to the positivistic approach. What is possible, though, is to categorize the different approaches each company has chosen to prepare themselves, since the approaches most likely have similarities such as time duration, management structures, or technical solutions. This would make it possible to collect statistical data connected to each category. However, to have a positivistic approach might impose constraints on the findings (Collis & Hussey, 2014). How water-dependent companies use strategic water resource management to prepare for present and future water resource scarcity is a subjective issue. With this in mind, it is considered most appropriate to follow the interpretivistic paradigm.

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3.2 Research Approach

The process of this research is qualitative and analyzed using interpretative methods. When identifying the research paradigm, it is recognized that interpretivism cannot be measured using statistics. Accordingly, interpretivism is associated with using data in a simple form - qualitative data - and therefore, the research approach is qualitative (Collis & Hussey, 2014). The research aims to investigate how water-dependent companies are using strategic water resource management to prepare for present and future water resource scarcity, thus the meaning rather than the measurement of the phenomena. Therefore, the data collected in the research is descriptive rather than numerical. Moreover, since this is qualitative research, and the aim is to generate theory from data, it is most appropriate to use an inductive approach (Goddard & Melville, 2004). This statement is further motivated since the data firstly will be observed and hence connected to theories from previous literature, which is in line with inductive research (Collis & Hussey, 2014).

Further, the research is exploratory, rather than analytical, descriptive, or predictive. The reason is that the research question aims to investigate a relatively new phenomenon in terms of that there is little knowledge within the subject of how water-dependent companies are using strategic water resource management to prepare for present and future scarcity. The choice is also based on that one goal of the research is to gain insights within the subject. The research does not aim at describing any characteristics of the phenomena, measuring causal relations, or exploring the likelihood of something happening again. It is instead to develop propositions about the phenomena or find patterns relevant to society and future research (Collis & Hussey, 2014).

The outcome of the research is basic, instead of applied. This reason is that the objective of the research is to expand knowledge within the subject rather than an applied outcome; to solve a particular problem. Furthermore, the findings tend to become universal since they are not necessarily limited to the specific case companies (Collis & Hussey, 2014). Additionally, the research will act as a foundation for future research.

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3.3 Research Design

Based on that the paradigm is inductive, the research approach is qualitative, and one of the purposes of the research is to lay grounds for future research, the most appropriate way to conduct this research is through a multiple case study (Collis and Hussey, 2014). This statement is additionally advocated when understanding that the goal is to obtain in-depth knowledge about how different companies view and experience present and future water resource scarcity. Furthermore, when taking the essence of the research question into account - where the aim is to identify how companies are working, as well as describing the justifications to why and the decision-making process behind it - the most appropriate type of multiple case study is a descriptive case study. This conclusion can be drawn from the understanding that such a study promotes and restricts the research into describing current practices (Collis and Hussey, 2014), which is in line with the purpose of the thesis. With regards to the findings not being known before the investigations, there is a chance that the research may shift to or be combined with those of an illustrative case study, where the research instead demonstrates and explains new and innovative strategies used by the case companies (Collis and Hussey, 2014).

As discussed in the previous paragraph, the research is based on a multiple case study. Since the research investigates how water-dependent companies are preparing for present and future water resource scarcity, information from the case companies about the actions, thoughts, and feelings of company employees are required to reach the requested in-depth knowledge. Hence, a suitable method is to conduct interviews, since studies with an interpretivist paradigm benefits form interviews (Collis and Hussey, 2014).

Furthermore, due to the interpretivist nature of the research, the authors chose between a structured interview or a semi-structured interview. Although, since the case companies operate and manage water in various ways, and the researchers aim for an in-depth understanding of the topic in order to collect relevant and meaningful findings, the most appropriate option is semi-structured interviews. This allows the researchers to prepare some of the interview questions in advance, which will improve the relevance to the topic, but also enables supplementary questions on the given answers (Collis and Hussey, 2014). Besides, semi-structured interviews traditionally tend to focus on three types of questions; (1) open, (2) probing, and (3) specific or closed (Saunders, Lewis & Thornhill, 2016). A combination of the three types of questions will help achieve detailed and direct findings, which, in turn, will help

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answer the research question. Therefore, semi-structured interviews are considered the best option for this research.

3.4 Data Collection

As previously mentioned, the primary source of data collection will be based on findings from interviews with the case companies. Since the study follows an interpretivist paradigm, the research will not be analyzed statistically, and therefore, the case companies do not have to be randomly selected (Collis & Hussey, 2014). As the research aims to investigate the strategies water-dependent companies, this is the population from where the sample will be selected. Furthermore, the chosen sampling method for this study is purposive sampling, where the researchers used their judgment to determine which companies to interview (Collis & Hussey, 2014). The chosen criteria were that the companies should operate within Sweden, and the companies would have to operate within different sectors. The firstly mentioned criterium was chosen due to the authors’ intentions to study companies operating in a country that has yet to experience the issues connected to water scarcity. This is further beneficial for the study with the purpose of the research in mind; to find out what companies are doing, or planning to do, to mitigate future water scarcity.

The second criterion was applied so that the findings would cover many different types of water use, and subsequently, many different types of water resource management strategies. This was determined to be useful in the analysis, for it to be diverse and relevant to the broadly chosen topic. Besides, collecting findings from several different sectors to the study could help enable continued future research on a larger scale.

The participating case companies were, as mentioned in the previous paragraph, chosen through purposive sampling. In this study, the authors began to identify potential participating companies that fit the given criteria. Consequently, eleven companies were contacted, and from them, five companies agreed to an interview, as opposed to four who answered that they were not interested in participating, while the remaining two companies did not answer at all. The participating companies are presented in Appendix 1 (see Appendix 1). Appendix 2 (see Appendix 2) includes information about the length of interviews, the company sector, and the interviewees’ names and positions. Since the interviews were semi-structured, there was a

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predetermined script with mandatory questions for all participants (see Appendix 3). The participants for the interviews were chosen based on their positions in the companies. When contacting the companies, the researchers presented their research proposal and then asked to be connected with whoever at the company that would fit the description best. For four out of five companies, one interviewee was present. For the fifth, Jönköping Energi, two interviewees were present instead. This is because the company felt this was a better alternative and that they would be able to provide better information.

Furthermore, the interviews were held both in online video-calls and face-to-face. Under an interpretivist study, there are multiple appropriate methods for interviews where some are preferred more than others. According to Collis and Hussey (2014), the preferable method for an interview is face-to-face, as the participant is more likely to share sensitive or detailed information. Where possible, the research team has chosen this, however, because of the vast geographical spread - LKAB in Kiruna and Cementa on Gotland - and due to the Covid-19 outbreak, they could not realistically or practically travel to meet the interviewees. Online video-call interviews offer equal opportunities to collect data, but only in the assumption that everyone has access to internet and video-call software (Collis & Hussey, 2014). With this in mind, the researchers determined that both online video-calls and face-to-face were appropriate methods, and thereby let the participating companies choose which option they preferred.

3.5 Data Analysis

The first step of the data analysis was data reduction. This process was done by creating a new document for each transcribed interview, with a copy of each transcript, and removing all excess words which lacked meaning to the interview. Examples of such words are “Mmm” or “I see” from the interviewers, conversation before the start of the interview, or “Do you mind if we get back to you about follow-up questions?” at the end. These were not considered meaningful for the interview context and removed for the analysis to be thorough and time-efficient.

However, the researchers were careful not to remove anything which could bring meaning to the data analysis, such as “Mmm” from the interviewee or “Hmm, I am not sure, let me think” from the interviewee. During this process, the questions and answers were sectioned into blocks so that they would stay on the same pages, reducing confusion at a later time.

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The documents were printed and marked with a specific color per company in the margin, so that there would not be a problem to identify to which case company whom the data belonged. Then, to further ease the process of identifying questions, each transcript was divided into different sections. The sections consisted of pairs of questions and answers. Finally, each section was given a number and then cut out. These cutouts were placed in categories, as shown in table 1. Water Water dependency Water in production Effect of water reduction

Withdrawal After use

Water scarcity 2018 Risk of water scarcity Motivational drivers

Environmental Social Economical

Current strategy Reuse of wastewater Water efficiency

Education IWRM Water

Stewardship Unspecified Future strategy Reuse of wastewater Water efficiency

Education IWRM Water

Stewardship

Unspecified

Other Geography Authorities Consumption

assessment

3.6 Delimitations

As stated before, the research focuses on water scarcity in companies rather than industries. The case companies are, however, from different sectors and geographical locations within Sweden in order to get as broad a base as possible. This is to receive a generic result that can act as a foundation for future research on the topic of how companies act when resources become scarce. As the study aims to look at cases where a shortage of water would be detrimental to business operations, companies that the research team did not consider water-dependent were excluded from the sampling process.

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The research location has been limited to Sweden due to the intention to study companies in a country where water scarcity is not yet an issue. Since the purpose of the research is to understand how water-dependent companies use strategic water resource management to prepare for present and future water resource scarcity, it is optimal to study a geographical location that is not suffering from the issue at the time being.

The chosen number of case companies is somewhat small, but this does not need to be a negative point. As the authors strive to compare and contrast the strategies used by the case companies, it would be too complicated to have many more sources of data. This does, to some extent, affect the credibility of the research. However, since the idea is to gain a base of general information, the authors are satisfied with the level of credibility.

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4. Empirical Findings

The following section presents all empirical findings collected from the interviews. They are divided into the following themes: experience of water scarcity, geographic position, environmental motivation, economic motivation, social motivation, impact from authorities, consumption assessment, decision-making, current strategy, and future strategy.

4.1 Experience of Water Scarcity

The only company which state that they were negatively affected by the summer of 2018 were Lantmännen. They also said that the 2018 harvest was further worsened because of the fall of 2017 since it was excessively wet. These two components together caused a negative outcome for Lantmännen. As a result, the company was forced to significantly increase its raw material imports to uphold production; in previous years, they had been able to export. However, all farmers did not suffer the consequences because of widespread geographic locations throughout Sweden. Lantmännen are not worried about water scarcity in the future. The reason for this is, when analyzing rainfall throughout the whole years, there has not been a significant decrease but rather an uncertainty of when and in what quantities the water will come, resulting in drought or flood. They do, however, agree that water scarcity, periodically, will be a frequently recurring issue in Sweden in the future.

The four other case companies saw the drought in the summer as an awakening and as a preparation for years to come. When asking the companies if they believe there will be more droughts similar to 2018, Skara Sommarland, Lantmännen, Cementa, and Jönköping Energi say that they think it will be, while LKAB is not worried about this. Changing the perspective to whether there will be water scarcity in Sweden, Lantmännen agree. Simultaneously, Jönköping Energi say there most probably will not be water scarcity in the near future in Sweden. Furthermore, Skara Sommarland debate that Sweden’s location is too far north to be drastically affected, and LKAB do not believe this to be a risk either. Cementa are indecisive on the matter and state that since there have been alterations previously in history, it is hard to know how the future will be.

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4.2 Geographic Position

Both LKAB and Cementa spoke of their and each other’s respective geographical locations, saying that if they had had the other’s location, circumstances would be different. LKAB were sure that had they been placed on Gotland instead of in Norrland, they would need to be more aware of their water use as there is a degree of water scarcity during some seasons on Gotland. Cementa discussed that they had been subject to fewer regulations had they been placed in Norrland. Further, LKAB can be affected by wind or temperature because of their geographic position, which could freeze their water beds.

As previously mentioned, Lantmännen’s farmers are spread across the country and, therefore, do not have a specific geographic location. Nevertheless, suppliers are individually responsible for preparing their facilities, and due to some problematic years, readiness has increased. These farmers require individual support from Lantmännen, such as instruments to handle excess water or special reservoirs to supply the farmer with water when there is a shortage.

According to Skara Sommarland, there is less rainfall in Skara, where they are geographically positioned, than in other parts of Sweden. This is positive for Skara Sommarland because there is an increase in the number of visitors to the amusement park when the weather is good, not raining. Moreover, if water suddenly becomes a scarce resource for them in their geographic position, they would be under much pressure. There are outdated sources that could be used in emergencies, but they could not supply the necessary volume of water. Jönköping Energi did not comment much about their geographic location other than that they are close to Vättern - a large lake - and the potable water they use is from this source. They did, however, point out that they would not be prepared for immediate water scarcity in where they are located today.

4.3 Environmental Motivation

All case companies see environmental degradation as a potential motivation to mitigate water scarcity. Skara Sommarland believe that they have a responsibility to think about their water usage because, in other places, it is a scarce resource. As for now, they do not believe that they are experiencing water scarcity. Jönköping Energi agree with Skara Sommarland that they feel a responsibility to lower their water use due to the global water scarcity situation. They aim to

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become water neutral by using the water that is a byproduct of their production processes. Furthermore, they claim that there is a genuine environmental interest within the company.

LKAB say that the continuous development of effective strategies is a sustainable responsibility, but at the same time claim that, since they have a water surplus, they might as well use the water available to them. Lantmännen consider it a long-term investment to take care of the environment. They also point out that the environment is an uncontrollable factor, and it is beneficial to be prepared for what inevitably could happen. Cementa mention that they can see an issue regarding water, especially during the summer when Gotland has many tourists and summer guests, causing consumption to increase but that they are prepared for fluctuations in supply throughout the year.

4.4 Economic Motivation

Not all case companies experience an economic motivation to mitigate water scarcity. Cementa and LKAB do not believe that investing in strategies that reduce their water use could save them any money. LKAB do not have any costs for water; they rely entirely on natural sources of water. Cementa say that since the price of water is low, there is no real reason for them to decrease the amount of water they use. Skara Sommarland are, on the contrary, willing to consider and invest in improvements in water resource strategies if they economically gain from it.

Jönköping Energi express that if water were more expensive than today, they would benefit from reducing their water use. According to them, economic motivation plays a significant role in investments, and they claim that sustainability investments for the environment are rarely anything they benefit from economically. If water became more expensive than it is, Jönköping Energi would be more likely to succeed with their goal of becoming water neutral - it would trigger them to act faster. Further, Skara Sommarland state that an increase in the price of water would affect, but that the total effect of the increase in price is not substantial.

Lantmännen’s interest from an economic point of view is seemingly different from the other case companies. From a value chain perspective, they depend on a stable environment when it comes to rain and water access. They also say that if they do not have water, it will cost them

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money. Therefore, they state that if there is a possibility to reduce the risk of water scarcity through investments, it is worth it.

4.5 Social Motivation

Many of the companies claim that pressure from society, customers, and others can motivate them to change their water operations. Cementa mention that due to their geographic position on Gotland, everyone living on the island is affected by water shortage. Thus, they feel a social responsibility to manage their water consumption carefully. At the same time, the company clarify that motivation to reduce their water consumption is both internal as well as external. Cementa recognize that the public is generally against businesses such as Cementa and businesses involved in mining because the business idea is not sustainable. Still, many of the critics consume the products made by these kinds of companies. LKAB experience much pressure from seasonal residents nearby concerning their use and general management of water. Despite this, LKAB do not experience it to be a pressing matter when having an open dialogue with those permanently living close by. Also, they experience that the public knowledge of water issues is low.

Skara Sommarland do not feel experience any social motivation in their opinion as of now. However, they make it clear that if Skara Sommarland’s customer base was to value a reduction in water use, so would they. Jönköping Energi, on the other hand, consider that engagement in sustainability questions help their image and see it beneficial to become a role model for other people and companies as this active engagement looks good for the company. Lantmännen’s social motivation comes from the fact that the availability of food is a public social interest. No food available results in public stress, and having strategies for all types of situations is therefore essential.

4.6 Impact from Authorities

All companies but Lantmännen are affected by the County Administrative Board (Länsstyrelsen). Lantmännen state that they are not affected by authorities at all. However, Lantmännen agree that there most probably will be stronger regulations in the future. Apart from working with the County Administrative Board, Skara Sommarland also work closely

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with the municipality. They and the municipality together agree on a price level for water, and Länsstyrelsen allows them to take the water from Vättern.

LKAB have a close relationship with several authorities, which in turn affects the way they work. Those are the Swedish Agency for Marine and Water Management (Havs- och Vattenmyndigheten), the County Administrative Board, the Water Authorities (Vattenmyndigheterna), and the Swedish Environmental Protection Agency (Naturvårdsverket). Their impression of many authorities is that they are not fully competent to make some decisions. Some may hinder LKAB in their work for sustainability rather than encourage it. An example is the installation of a new purification facility LKAB were told to use. Such installation would require a significant amount of time and high costs, not allowing them to work on projects which could make a greater difference for the use of water and other sustainability projects.

Cementa work with the Swedish Environmental Protection Agency, the County Administrative Board, and the Land- and Environmental Court. The latter makes final decisions about appeals that primarily come from private persons and non-profit organizations. These take a sufficient amount of time and can be about whether or not Cementa have calculated its effect on the environment correctly or simply citizens who are worried about the effects of various projects.

Jönköping Energi have signed agreements with authorities that are expected to be followed by both parties, and they foresee that there will be harder restrictions in the future. Also, they respond that as the facilities are in constant need of maintenance and eventually are outdated, the process of updating to new standards comes naturally.

4.7 Consumption Assessment

Skara Sommarland are a part of a certification program called GreenKey, which spurs them to measure their water consumption at their camping, although not in their water park. Neither LKAB, Cementa, nor Jönköping Energi consider that they have a problem with retaining water for their production. They have not stated any existing or upcoming plans to initiate consumption assessment. Lantmännen do not conduct a consumption assessment, but every

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year, they conduct a risk screening to get an aggregated documentation of what amount of water is used and from where it is withdrawn.

4.8 Decision-Making

All five companies say the size of the decision determines who makes the final decision. Most companies say their decisions are affected by government restrictions, while Lantmännen say they are not. Skara Sommarland emphasize that they make many decisions together in the management team at the company level and in the board of directors at the corporate level, who are in charge of all larger decisions. When they have made a decision, Skara Sommarland then decide the strategic way of how to put it in action.

At Cementa, some decisions are made at a company level while others are made at a corporate level. The largest decisions at Jönköping Energi are made by the management team if not by the plant owner. Both Jönköping Energi and LKAB say it depends on who has the best competence in the field. Furthermore, LKAB's decisions are taken either by the management team at the company level, by the management team at the corporate level, or by the board of directors. Where the decision lies depends on the amount of money involved in the investment. Lantmännen say that the strategic decisions are taken by management, which first is greatly influenced by the farmers of Lantmännen. At the same time, those concerning business are made more solely by top management.

4.9 Current Strategy

Both LKAB and Cementa withdraw the water they use from their open pits. These are continuously filled with groundwater as they dig, and with additional rainwater, which supply the two companies with more than enough freshwater. LKAB state that lighter water flow would only be positive for them as they need to discharge parts of the water they receive. The water from natural sources is first filtered through sand beds but might need to be diluted with clean water to ensure quality. The water quality is vital to LKAB because if the water does not hold a certain standard, their instruments and machines can be destroyed. The water LKAB discharge is cleaner than drinking water because of the heavy regulations which are in place to avoid any harm to the biological environment, such as plants and animals.

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Cementa have since long used ocean water but have recently decided to change the source because of issues regarding the quality of the final product, cement. As a substitute, they have shifted to use a higher percentage of potable water, which ensures the quality, but negatively affects Gotland's society. Cementa have initiated a strategy to recover the potable water back to the community. By cleaning the water form their open pits, they can replace the potable water and thus lessen the strain on society. To do this was an internal initiative rather than an external pressure from authorities and the community on Gotland.

Skara Sommarland have water in reservoirs, which are continuously filled up as the water evaporates. Also, they use the same reservoirs for pools and water attractions, where possible. During the time the water attraction is running, the water level in the pool connected to the attraction is two centimeters lower. That water is instead used to run the attraction. By doing this, Skara Sommarland do not need to have two separate reservoirs, but one combined. Skara Sommarland use the same water throughout the season and dispose of it in the drain when the season ends. Much water evaporates during the season, and this is compensated by filling the pools again.

To produce energy, Jönköping Energi use boilers, which create flue gas condensate, with water as a byproduct of their production processes. Currently, the majority of this water is discharged in Munksjön, a local lake in Jönköping. However, they have considered the possibility of instead using this water in their production processes. By doing this, the company could become water neutral and therefore be self-sufficient. Though, the fact that this would be an expensive investment hinders them from taking action.

Lantmännen have a foundation that provides money to support education and innovation in farming and food science. This is considered an advantage in the long-term, since there, according to Lantmännen, are many unexplored or undeveloped solutions where research investments can bring new knowledge.