Navigating corporate challenges in freshwater stewardship: Insights from the Mississippi River Basin

The “Stakeholder Engagement for Freshwater Target Setting in the Mississippi River Basin” initiative, led by the World Wildlife Fund (WWF), the Science Based Targets Network (SBTN), and Environmental Initiative, addresses implementation barriers for corporate freshwater stewardship within a critical ecosystem. The Mississippi River Basin, supporting $400 billion in commercial activity and providing drinking water to 20 million people, is a high-priority area for corporate water stewardship.

This initiative facilitates corporate engagement in pre-competitive learning spaces to understand and mitigate barriers to implementing science-based freshwater targets. By addressing water quality and quantity challenges for both surface and ground water, the project aims to advance actionable corporate commitments to nature-based solutions.

Corporate motivations and barriers for freshwater stewardship

Risk emerged as both a motivator and a deterrent in corporate decision-making. While some corporations recognize water risks’ impact on operational continuity and supply chains, the complexity of setting robust freshwater targets deters others from formal commitments. Corporations highlighted challenges such as data gaps, supplier engagement, and the uncertainty of regulatory landscapes.

To manage freshwater resources, corporations invest in regenerative agriculture and localized water management programs. Four of six corporations interviewed focus on rice as a key commodity for water stewardship in the basin. NGOs are key in these activities by providing essential technical support and stakeholder connections for localized efforts. Corporations reported difficulty engaging suppliers on water stewardship due to disparities in resources, priorities, and data transparency. This issue mirrors challenges in addressing Scope 3 climate targets. The need for clear incentives and support mechanisms for suppliers is critical, particularly in sectors reliant on water as a key input to production.

Hydrological data scarcity and variability hinder accurate target setting for corporations and particularly for corporations in the agricultural sector. Corporations expressed caution about setting targets based on generalized or incomplete data, as they seek assurance in the data’s validity and applicability. The context-dependent nature of water impacts necessitates a localized approach, complicating the assessment of individual contributions to basin-level water stress. Corporations find it difficult to justify investments without broader participation from other corporate stakeholders.

Fears of greenwashing allegations and failure to meet publicly stated targets deter corporations from formal commitments. Similarly, setting rigid, all encompassing targets without flexibility increases perceived risk. Corporations struggle to align existing water stewardship frameworks (e.g., AWS, CDP) with SBTN processes. This lack of interoperability adds to the reporting burden, limiting corporate confidence in adopting science-based targets.

Opportunities for corporate engagement and action

A compelling business case highlighting the tangible benefits of science-based freshwater targets— such as risk mitigation, operational resilience, and aligning action for nature and climate goals—is vital. Corporations emphasized the need for location-specific targets reflecting their operational dependencies within the Mississippi River Basin. Shared data platforms and streamlined tools could enhance collaboration among stakeholders and contextualize corporate contributions to watershed sustainability. Initiatives like the Mississippi River Watershed Partnership provide a model for coordinated place-based action that aligns individual corporate efforts with broader regional goals.

Clarifying that SBTN frameworks allow phased or modular approaches could address concerns about rigidity. Highlighting success stories of gradual implementation could further reduce perceived risks and encourage broader participation. Engaging local plant managers and community stakeholders in decision-making processes can bridge gaps between corporate goals and ground-level action. This approach aligns with principles of environmental justice and fosters trust and collaboration.

Key takeaways

• Corporations find it difficult to justify investments without broader participation from other corporate stakeholders.
• Interviewees told us they need assurance in the strength of available data to make their targets realistic, actionable, and achievable.
• Fears of greenwashing allegations and failure to meet publicly stated targets deter corporations from formal commitments.

Methodology and findings

Environmental Initiative conducted in-depth interviews and background research with six corporations operating within the Mississippi River Basin to identify barriers, motivations, and readiness for freshwater target setting. Corporations universally recognize freshwater as material to their operations and prioritize action in high-risk areas. Common tools like WRI’s Aqueduct and WWF’s Water Risk Filter guided these prioritizations. While corporations are implementing site-level water management practices, most favor immediate, actionable projects over long-term, formal target-setting frameworks.

Conclusion

This initiative highlights the complex interplay of risks, opportunities, and barriers facing corporations as they seek to align freshwater stewardship with business priorities.

By fostering pre-competitive collaboration, addressing data and framework challenges, and demonstrating the business value of localized, actionable freshwater targets, the project provides insight on what needs to be true for a “target-ready” basin. Such an environment would empower businesses to adopt meaningful, science-based freshwater targets, driving collective progress for nature and society in the Mississippi River Basin.

Join the conversation

The Science Based Targets Network and World Wildlife Fund are exploring how the Mississippi River basin can become “target-ready” for freshwater target setting. Environmental Initiative conducted interviews and research to uncover corporate motivations and barriers. On Jan. 23, the team will share key findings and facilitate conversations to shape freshwater target setting with corporate sustainability professionals in a virtual, pre-competitive space.

Contact Britta Dornfeld for more information about the Jan. 23 opportunity.