Summary
Explore how Metalsa drives water stewardship by implementing context-based water targets for 2030 and 2050. By collaborating with Waterplan, Metalsa addresses the challenges of water data collection and centralization, understanding local water risks, and setting achievable yet ambitious local water targets, all while simplifying sustainability reporting processes. This partnership has already demonstrated positive outcomes, including reducing the time needed to collect and analyze water risk data, aligning the company on decision-making, and making reporting processes more efficient. Dive into this case study to see how innovative technology drives meaningful progress in Metalsa's global water sustainability initiatives.
Introduction
Ricardo Garcia Guerra is the Head of Sustainability at Metalsa, a global leading manufacturer of automotive components specializing in chassis structures for light and commercial vehicles. Ricardo leads global initiatives to achieve a more sustainable future at the company, one of which is leading Metalsa’s water stewardship strategy.
Metalsa’s headquarters are in Monterrey, Mexico, where water scarcity issues have been significantly increasing. These issues affect the local community and in the long term, business. Most of the Metalsa production processes do not require a significant amount of water, except for the final steps, which make water a crucial element for the company. A reduction or interruption in water supply could influence the production processes.
"I am committed to advancing water sustainability because it’s the right thing to do. From a corporate standpoint, our decision to develop a comprehensive water strategy stems from our dedication to mitigating water-related risks and upholding our position as a sustainable business committed to delivering optimal solutions for our customers." - Ricardo Garcia Guerra, Head of Sustainability, Metalsa.
Moreover, Metalsa has issued sustainability-linked bonds tied to ESG emission reductions, including water sustainability.
Technology solutions for real-world water challenges
Metalsa partnered with Waterplan to tackle challenges in gathering and centralizing water data from various data sources, analyzing local water risks in-depth, establishing water targets and a plan to achieve them, and streamlining sustainability reporting processes.
Gathering & centralizing multiple water data sources
Local water risk data availability and reliability are essential for making informed decisions and setting appropriate targets. Gathering this data locally requires multiple data sources, the engagement of multiple stakeholders, and time. Additionally, specific water expertise is required to interpret the data in the business and the local watershed context. Metalsa recognized the critical need for robust technology, comprehensive data, and water expertise to effectively gather, centralize, and assess water risks.
Waterplan provided a centralized platform capable of gathering, consolidating, and tracking various dimensions of external water risks as well as Metalsa’s vulnerability to risks in each location. By integrating external information on water availability, quality, flooding, infrastructure, reputational and regulatory dynamics within a region, and Metalsa’s internal data, such as water consumption, discharges, etc., Waterplan enabled Metalsa to conduct in-depth local water risk assessments. This integrated approach enhanced the data's accuracy and reliability and streamlined the process of analyzing and interpreting complex water risk factors.
“Waterplan’s technology saved us significant time in gathering, centralizing, and analyzing both external local water risk data and the current situation of our manufacturing sites.” - Ricardo Garcia Guerra, Head of Sustainability, Metalsa.
Establishing a water strategy through the understanding of local water risks
Waterplan’s water risk framework enabled a local in-depth assessment of water risks across Metalsa’s manufacturing sites. Insights from this analysis and Waterplan’s expertise were used as the starting point to establish appropriate water targets for each location where Metalsa operates, setting the correct context and awareness per site. Context-Based Water Targets are differentiated based on the specific situation of the site, the local watershed, and the social and regulatory dynamics, focusing not only on quantitative targets related to reduction of consumption and impact on the environment but also on mitigation of the identified risks.
As a result, Metalsa has established water targets for 2030 and 2050. The company aims to reduce at least 30% of water withdrawals by 2030, taking 2021 as a baseline. Moreover, the company’s aspiration is to achieve water positivity by 2050. All sites also have their own water goals related to the physical risks in order to improve their maturity in terms of water stewardship and become more resilient in the future.
"We aspire to achieve water positivity globally by 2050, a goal achievable through collaborative efforts. Water is essential for life and business productivity, and we cannot take its availability for granted in the future. Failing to plan for changing water conditions will inevitably lead to water issues in the future." - Ricardo Garcia Guerra, Head of Sustainability, Metalsa.
Stakeholder alignment
Aligning the company and different teams on the importance of water sustainability and the need to invest in the area is crucial to ensure success, but it can be challenging. Often, water is not seen as a material resource for the business and is usually perceived as "cheap." Additionally, different teams might have conflicting priorities, potentially jeopardizing water-focused initiatives.
Waterplan's data-driven insights and transparent approach helped Metalsa navigate these challenges. Waterplan helped showcase how water risks can evolve, their potential impact on the business and the community, and the interconnectedness between water usage and operational outcomes. This facilitated discussions that led to a unified understanding across teams and fostered support for Metalsa's water sustainability projects.
"Waterplan's platform is accessible to all company members, promoting transparency and ensuring everyone stays informed. Moreover, it is a centralized hub for water data, our targets, and the projects designed to attain them." - Ricardo Garcia Guerra, Head of Sustainability, Metalsa.
Streamlining sustainability reporting processes
Gathering water data from multiple stakeholders, consolidating it, and structuring it to fit the format of various sustainability reports is a time-intensive process that demands meticulous attention to detail. Coordinating with different teams or organizations to collect relevant data points can be challenging due to varying data formats, reporting standards, and timelines.
“Managing multiple sustainability reports such as CDP and EcoVadis can be cumbersome and time-consuming. However, with Waterplan, consolidating all our water data in one centralized location saves considerable time and guarantees the accuracy and reliability of the information we report." - Ricardo Garcia Guerra, Head of Sustainability, Metalsa.
Takeaways
The strategic collaboration between Metalsa and Waterplan represents an innovative approach to water stewardship, leveraging technology to measure local water risks effectively, establish appropriate local water targets, and align the company on the water sustainability strategy to address water challenges. By leveraging advanced water data management and analytics, Metalsa progresses towards its 2030 and 2050 goals and sets a compelling example for others in sustainable water management.
"Be patient as you develop a robust business case for water, seek guidance from water experts to establish appropriate targets, and steadily progress with your water agenda. Initiating with a single site and expanding gradually is a prudent approach that yields sustainable results over time." - Ricardo Garcia Guerra, Head of Sustainability, Metalsa.
We leveraged Waterplan’s technology, data, and water expertise to establish local water targets and an action plan to achieve them, prioritizing the sites with the highest water risk exposure. We feel confident that our water strategy and associated water targets will set Metalsa for success and benefit our operations, the surrounding communities, and the environment.
Ricardo García Guerra
Head of Sustainability, Metalsa
