Water Benchmarking is here...

Water, water everywhere but (you know the rest)…

Fun fact: while many folks generally think of Building Performance Standards in the context of energy, by definition, a performance standard can apply to any aspect that can be measured.

Photo by manu schwendener on Unsplash

This includes: water. And if you don’t want to believe us, Harvard Law School’s Forum on Corporate Governance, outlined the Top 15 Anticipated ESG-Related Considerations that Will Influence ESG Strategy in 2023. And what did they have to say about water?

"Water metrics will quickly become an incredibly close second to emissions-related disclosures."

That timeline has recently accelerated, and as sub-metering technology has improved, and become more of an expected standard in the context of energy use, it’s just common sense risk management to start thinking about, and preparing for, a water performance standard in your jurisdiction.

What is the current status?

Major cities in the Midwest seem to be taking the lead on water benchmarking. For example, Detroit recently joined a growing number of cities that have implemented a water benchmarking ordinance. Other cities include Ann Arbor, Michigan (GO BLUE); Chicago, Illinois; Minneapolis, Minnesota; and Columbus, Ohio.

What’s the significance of benchmarking? Limits - or performance standards - will quickly follow. This is a common legislative cadence: benchmark and then set standards based on the feasibility data received from benchmarking. This is how we moved from energy benchmarking and disclosure ordinances to building performance standards that are increasing in prevalence throughout the country. The same will happen with water, and in some jurisdictions, it already is.

So what should you do?

Start planning - now. The water crisis is quickly intersecting with the climate and clean energy crises. Identify potential opportunities to increase building scale water efficiency (landscaping, low flow fixtures, etc.).

Plan for sub-metering requirements and prepare to set a water budget. Revise lease language to include reciprocal data sharing with respect to water use.

Commercial leases last much longer than the pace of change of climate-driven legislation. Both owners and tenants will want clear language that also allows for some flexibility to accommodate this rapid change.