How can companies help to mitigate water conflicts?

Palsa & Pulk
Jun 3
12 min read

An overview of how companies can reduce conflict by protecting water and respecting Indigenous Peoples' rights.

This edition of “The Just Transition Newsletter” by Palsa & Pulk was written by Krisna Baghouzian and Christine Nikander.

Why is water becoming scarcer?

We live on a blue planet with water scarcity. How is that possible? About 75% of Earth’s surface is covered by water. Yet, less than 3% of the water on Earth is fresh water. Of this fresh water, less than 1% is accessible, as it is mostly held in groundwater.[i] We use this water for consumption, agriculture, and industry. This supply has abruptly dropped since a number of droughts in 2014 and has not recovered.[ii] Less frequent but more intense rainfall due to climate change causes soil to become dry and not able to retain water which runs off with extreme precipitation.[iii] Furthermore, the increased risk of flooding and rising sea levels can contaminate water resources with saltwater and (faecal) contaminants.

Other causes for water scarcity are the increased use and demand for water by industry and consumers. Water intensive lifestyles include indirect use of water “such as greater consumption of water intensive foods such as meat, as well as through increased demand for goods that require large quantities of water to produce, such as cars, electronics, clothing, and larger homes”.[iv] This is exacerbated by poor wastewater management. “Globally about 80 percent of industrial and municipal wastewaters are discharged untreated into waterways that communities use for drinking, bathing, and agriculture”.[v] Deforestation further decreases the water-retaining capabilities by trees and other plants further exacerbating the scarcity of water.

Plants and (aquatic) animals rely on fresh water to survive and change in water availability and subsequent surrounding temperatures affect the species able to survive in new environments. People also depend on water, production of food, and the species that depend on water. The 2023 UNICEF report, titled “The Climate Changed Child”, shows that 1 in 3 children are exposed to high water scarcity.[vi] This affects their growth and development and increases the risk for illnesses. Water scarcity also affects the ability to engage in other activities, like going to school, as water needs to be collected — and this is often done by women and children.[vii] Overall, it is expected that “some 700 million people could be displaced by intense water scarcity by 2030”.[viii]

What causes water injustices?

Amongst others, climate change “has affected the availability of water resources, including drinking water for human consumption and water for basic needs for irrigation or livestock”.[ix] The UN’s Human Rights Council has held “that the adverse effects of climate change have a disproportionate impact on populations in situations of vulnerability, such as indigenous peoples”.[x] This is “due to their direct dependence on aquatic ecosystems, the lack of protection of their self-governance rights and adequate infrastructure”.[xi]

Indigenous Peoples are affected strongly by climate change because of “[t]heir geographical location in areas that are particularly susceptible to its effects”.[xii] Indigenous Peoples “have endured centuries of colonization, violence and domination, often relegated to live in marginal territories, in harsh conditions”.[xiii] The areas where Indigenous Peoples now live are largely vulnerable “to drought, flooding and other risks especially when their aquatic ecosystems are degraded or affected by megaprojects or aggressive developments”.[xiv]

Power dynamics from colonial history often dominate who has the right to water infrastructure. In Hawaii, for example, despite the closing of the last sugar plantation, descendants of plantations “still control vast tracts of land and the water infrastructure”.[xv] Litigations to grant the public access to water still continue in Hawaii. In 2024, there was a notable ruling in Maui by the Hawaii Supreme Court “to return more stream flows to Nā Wai ʻEhā after the closure of the former Hawaiian Commercial & Sugar (HC&S) plantation in 2016”.[xvi]

Another issue that can cause water injustices is the lack of transparent governance. For example, “the lack of enforced water regulation and environmental laws and limited wastewater treatment” led to the decline of Lake Urmia in Iran.[xvii] This concretely happened because no one was held accountable for the excessive consumption for irrigation in the basin.

Violence due to water

Sadly, “[v]iolence over water is on the rise globally”.[xviii] The “number of conflicts [that] erupted in 2023” set a new record.[xix] It “far surpass[es] the [...] conflicts recorded in 2022 and [is] continuing a rising trend that has persisted over the last decade.”[xx] Amongst others, conflicts can arise “where water or water systems have been a trigger of violence; have been used as a “weapon”; or have been targeted and become a “casualty” of violence.”[xxi] Data from the global water think tank, the Pacific Institute “show that water-related disputes — ranging from quarrels over water sources to protests over lack of clean water — have erupted into violence with alarming frequency, and that water systems have increasingly been targeted in conflicts.”[xxii]

“The upsurge in violence [over water globally] reflects continuing disputes over control and access to scarce water resources, growing pressures on supplies driven by population growth and climate change, and ongoing attacks on water infrastructure where war and violence are widespread, especially in the Middle East and Ukraine”. For example, “[i]n Pakistan, two groups of farmers started arguing in the fields and attacked each other with axes, clubs and bricks in a bloody fight over water”. As another example, “[i]n South Africa, hundreds of people protesting a water shortage blocked roads with burning tires and hurled rocks at police”. Moreover, “Russian attacks on infrastructure left a city of nearly 1 million people without water” in Ukraine.[xxiii]

The “threats against environmental human rights defenders” and killings of Indigenous Peoples for defending their water rights have unfortunately increased over the past years. An “indigenous woman defender of water and rivers” was, for example, murdered In Honduras in 2016 “for opposing the Agua Zarca dam”. Several “indigenous leaders have been murdered” in Colombia. Moreover, “over 5,000 indigenous Papuans, who face a lack of access to food, water and sanitation”, have been displaced from “the provinces of Papua and West Papua, Indonesia” after killings occurred and excessive force was used.[xxiv]

What could water justice look like?

Overall, “[p]olicymakers face multiple challenges regarding water management and must grapple with both an uncertain future and competing interests, while also ensuring there is enough water for people, cities, agriculture and ecosystems".[xxv] Yet, “[a]ccess to water is the greatest risk to global prosperity and addressing the [UN Sustainable Development Goals]".[xxvi]

The fact that many countries “deny the very existence of their indigenous peoples, turning a blind eye on international agreements” is a major barrier to Indigenous Peoples’ access to water.[xxvii] Governments are notably under an obligation to uphold Indigenous Peoples’ rights to self-determination, to “free and well-informed consultations”, as well as to “consent prior to any intervention in their territories”.[xxviii] Yet, the failure to protect these rights is not uncommon.

There are, however, also examples of rights being granted and upheld. For example, “[i]n North America, the Yinka Dene’ Uza’hné (hereditary chiefs) of the Nadleh Wut’en and Stellat’en First Nation developed its own water management policy and successfully advocated for their implementation in their traditional territories”.[xxix] Moreover, “[t]he Government of Canada reached a settlement with First Nations communities on prolonged drinking-water advisories on their reserves across the country”.[xxx] Additionally, “[t]he Inter-American Court of Human Rights has issued landmark decisions favouring the Yakye Axa, Sawhoyamaxa and Xákmok kásek indigenous peoples, ordering the Government of Paraguay to provide a sufficient supply of drinking water and to build latrines”.[xxxi] Similarly, “[t]he Court ruled against the Government of Ecuador for having granted an oil exploration and exploitation licence without the required prior consultation with the Kichwa indigenous people of Sarayaku”.[xxxii]

Potential solutions companies can contribute to

In their “Water Beyond Boundaries” initiative, the Stockholm Environment Institute (SEI) summarizes three pillars for sustainable water planning. Under these pillars: (1) “Sustainable water management should reach beyond the watershed, with participatory processes based not only on place but also on impact”, (2) “Ecosystems should be considered from the beginning (Early stages) in the water management and planning processes”, and (3) “Water management should involve the people affected by decisions, recognizing and addressing power imbalances across scales”.[xxxiii] In this context, it is worth noting that the protection of wetlands and riverine systems is “central to any hopes of tackling the climate emergency facing our planet” and to protecting biodiversity globally.[xxxiv]

When considering the impact of (poorly) managed watersheds, one should not fail to understand the diverse ways in which people interact and value waterbodies.[xxxv] In line with this, strengthening Indigenous and water rights is one potential solution to mitigating conflict. As aforementioned, Indigenous Peoples' rights to self-determination should be upheld, with “free and well-informed consultations”, as well as to “consent prior to any intervention in their territories”.[xxxvi] As an effective example of this, “in New Zealand, the Government and the Ngati Maniapoto Maori have secured co-governance agreements to co-manage the Waipa River”.[xxxvii]

At international platforms, it is often the voices of environmental leaders including Indigenous leaders who “point out the gaps between what the government is committing on the international stage and what is between the fine lines”.[xxxviii] Therefore, “[t]here is [also] a pressing need for different stakeholders to come together to protect environmental defenders and build a safe space for dialogue.”[xxxix]

In all of this, coordination between “government agencies, the private sector, and civil society” is crucial to properly manage and allocate water resources.[xl] The Murray-Darling Basin in Australia, for example, suffered from a lack of coordination between different states and territories sharing the river system. A lot of the water was allocated to the private irrigation sector — predominantly for cotton, pasture, and rice.[xli] The ecological health of the basin — as well as the “spiritual, physical and economic relationship with their land and water” that First Nation People have[xlii] — was largely overlooked in the face of competing interests — such as private irrigation, mining, the cooling of hydroelectric power generation, and other businesses requiring water for their daily operations.

Key measures that can improve the management of water basins include “limits on water use, improved compliance measures and significant improvements in water metering, monitoring and accounting”.[xliii] Some concrete actions to limit water use include regreening initiatives for water retention and greening, decrease consumption of water-heavy products, and engaging in smart water-retention and usage.

The next newsletter will explore ways to protect biodiversity in agriculture. If you want to be notified when it comes out, please subscribe to our mailing list.

About the authors

Krisna Baghouzian is a freelance sustainability consultant at Palsa & Pulk. She has a background in governance and past experience in working on sustainability at a local government with a people-centered approach. In her work, Krisna likes to take a holistic view of sustainability — by touching on different aspects of sustainability and their impact on our Earth and its inhabitants.

Christine Nikander is the founder of the environmental and social sustainability consultancy, Palsa & Pulk. She frequently speaks and writes about the environmental and human rights issues that arise through global supply chains and the energy transition. Christine studied law at the universities of Columbia (New York), Edinburgh (Scotland), and Leiden (the Netherlands). She has been writing The E-Waste Column weekly since 2022.

About Palsa & Pulk

Palsa & Pulk is an environmental and social sustainability consultancy. It provides compliance, governance, policy, and strategic advice to its clients. The consultancy’s work is mostly focused on supply chain governance, the just transition, circular economy, and human rights.

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[i] WorldAtlas, What Percentage of the Earth's Water Is Drinkable? https://www.worldatlas.com/articles/what-percentage-of-the-earth-s-water-is-drinkable.html

[ii] NASA, Global Freshwater Abruptly Declines. https://earthobservatory.nasa.gov/images/153608/global-freshwater-abruptly-declines (29.05.2025).

[iii] NASA, Global Freshwater Abruptly Declines. https://earthobservatory.nasa.gov/images/153608/global-freshwater-abruptly-declines (29.05.2025).

[iv] U.S. Office of the Director of National Intelligence, The Future of Water: Water Insecurity Threatening Global Economic Growth, Political Stability. https://www.dni.gov/index.php/gt2040-home/gt2040-deeper-looks/future-of-water (29.05.2025).

[v] U.S. Office of the Director of National Intelligence, The Future of Water: Water Insecurity Threatening Global Economic Growth, Political Stability. https://www.dni.gov/index.php/gt2040-home/gt2040-deeper-looks/future-of-water (29.05.2025).

[vi] UNICEF, 1 in 3 children exposed to severe water scarcity. https://www.unicef.org/press-releases/1-3-children-exposed-severe-water-scarcity-unicef (29.05.2025).

[vii] UNICEF, Water scarcity: Addressing the growing lack of available water to meet children’s needs. https://www.unicef.org/wash/water-scarcity (29.05.2025).

[viii] UNICEF, Water scarcity: Addressing the growing lack of available water to meet children’s needs. https://www.unicef.org/wash/water-scarcity (29.05.2025).

[ix] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.9. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[x] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.9. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xi] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.9. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xii] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.9. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xiii] Office of the United Nations High Commissioner for Human Rights, Indigenous peoples face growing challenges to access safe water. https://www.ohchr.org/en/stories/2022/10/indigenous-peoples-face-growing-challenges-access-safe-water (19.03.2025).

[xiv] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.9. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xv] D. Kapuaʻala Sproat, From Wai to Waiwai (2020). In The Value of Hawaiʻi 3: Hulihia, the Turning (eds. Noelani Goodyear-Ka‘ōpua, Craig Howes, Jonathan Kay Kamakawiwo‘ole Osorio, Aiko Yamashiro). https://www.degruyter.com/document/doi/10.1515/9780824889159-026/pdf?licenseType=restricted (29.05.2025).

[xvi] Earthjustice, Hawai‘i’s High Court Issues Another Historic Ruling in Maui “Four Waters” Case. https://earthjustice.org/press/2024/hawaiis-high-court-issues-another-historic-ruling-in-maui-four-waters-case (29.05.2025).

[xvii] U.S. Office of the Director of National Intelligence, The Future of Water: Water Insecurity Threatening Global Economic Growth, Political Stability, https://www.dni.gov/index.php/gt2040-home/gt2040-deeper-looks/future-of-water (29.05.2025).

[xviii] Ian James, Violence over water is on the rise globally. A record number of conflicts erupted in 2023. https://www.latimes.com/environment/newsletter/2024-08-22/boiling-point-water-conflicts-increasing-boiling-point (25.04.2025).

[xix] Ian James, Violence over water is on the rise globally. A record number of conflicts erupted in 2023. https://www.latimes.com/environment/newsletter/2024-08-22/boiling-point-water-conflicts-increasing-boiling-point (25.04.2025).

[xx] Ian James, Violence over water is on the rise globally. A record number of conflicts erupted in 2023. https://www.latimes.com/environment/newsletter/2024-08-22/boiling-point-water-conflicts-increasing-boiling-point (25.04.2025).

[xxi] Ian James, Violence over water is on the rise globally. A record number of conflicts erupted in 2023. https://www.latimes.com/environment/newsletter/2024-08-22/boiling-point-water-conflicts-increasing-boiling-point (25.04.2025).

[xxii] Ian James, Violence over water is on the rise globally. A record number of conflicts erupted in 2023. https://www.latimes.com/environment/newsletter/2024-08-22/boiling-point-water-conflicts-increasing-boiling-point (25.04.2025).

[xxiii] Ian James, Violence over water is on the rise globally. A record number of conflicts erupted in 2023. https://www.latimes.com/environment/newsletter/2024-08-22/boiling-point-water-conflicts-increasing-boiling-point (25.04.2025).

[xxiv] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.11. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xxv] Stockholm Environment Institute, SEI Initiative on Water Beyond Boundaries. https://www.sei.org/projects/water-beyond-boundaries/ (29.05.2025).

[xxvi] Stockholm Environment Institute, SEI Initiative on Water Beyond Boundaries. https://www.sei.org/projects/water-beyond-boundaries/ (29.05.2025).

[xxvii] Office of the United Nations High Commissioner for Human Rights, Indigenous peoples face growing challenges to access safe water. https://www.ohchr.org/en/stories/2022/10/indigenous-peoples-face-growing-challenges-access-safe-water (19.03.2025).

[xxviii] Office of the United Nations High Commissioner for Human Rights, A/HRC/51/24: Human rights to safe drinking water and sanitation of indigenous peoples: state of affairs and lessons from ancestral cultures. https://www.ohchr.org/en/documents/thematic-reports/ahrc5124-human-rights-safe-drinking-water-and-sanitation-indigenous (19.03.2025).

[xxix] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.6. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xxx] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.6. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xxxi] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.6. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xxxii] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation, p.6. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xxxiii] Stockholm Environment Institute, SEI Initiative on Water Beyond Boundaries, https://www.sei.org/projects/water-beyond-boundaries/ (29.05.2025).

[xxxiv] Wetlands International, Call for an ambitious Global Biodiversity Framework on World Wetlands Day 2020. https://www.wetlands.org/call-for-an-ambitious-global-biodiversity-framework-on-world-wetlands-day-2020/ (20.02.2025); Wetlands International, Call for an ambitious Global Biodiversity Framework on World Wetlands Day 2020. https://www.wetlands.org/call-for-an-ambitious-global-biodiversity-framework-on-world-wetlands-day-2020/ (20.02.2025).

[xxxv] Cherie J Campbell et al., More Than a Service: Values of Rivers, Wetlands and Floodplains Are Informed by Both Function and Felling, https://link.springer.com/content/pdf/10.1007/s00267-023-01900-2.pdf (29.05.2025).

[xxxvi] Office of the United Nations High Commissioner for Human Rights, A/HRC/51/24: Human rights to safe drinking water and sanitation of indigenous peoples: state of affairs and lessons from ancestral cultures. https://www.ohchr.org/en/documents/thematic-reports/ahrc5124-human-rights-safe-drinking-water-and-sanitation-indigenous (19.03.2025).

[xxxvii] Pedro Arrojo Agudo, Human rights to safe drinking water and sanitation of indigenous peoples: State of affairs and lessons from ancestral cultures. Report of the Special Rapporteur on the human rights to safe drinking water and sanitation. https://www.ohchr.org/sites/default/files/documents/issues/water/2022-11-04/A-HRC-51-24-Friendly-version-EN.pdf (19.03.2025).

[xxxviii] International Rivers, COP28: River Protectors highlight the critical intersection of climate, biodiversity and human rights. https://www.internationalrivers.org/news/cop28-river-protectors-highlight-the-importance-of-the-intersection-of-climate-biodiversity-and-human-rights/ (29.05.2025).

[xxxix] International Rivers, COP28: River Protectors highlight the critical intersection of climate, biodiversity and human rights. https://www.internationalrivers.org/news/cop28-river-protectors-highlight-the-importance-of-the-intersection-of-climate-biodiversity-and-human-rights/ (29.05.2025).

[xl] U.S. Office of the Director of National Intelligence, The Future of Water: Water Insecurity Threatening Global Economic Growth, Political Stability. https://www.dni.gov/index.php/gt2040-home/gt2040-deeper-looks/future-of-water (29.05.2025).

[xli] Australian Bureau of Statistics, Water and the Murray-Darling Basin - A Statistical Profile, 2000-01 to 2005-06, https://www.abs.gov.au/AUSSTATS/abs@.nsf/0/BF549EC0A50783E3CA2574A50014D0B0?opendocument (29.05.2025).

[xlii] Australian Government, Department of Climate Change, Energy, the Environment and Water, The Murray-Darling Rivers: Pumping life through our nation -to our farms, communities and the environment, https://www.dcceew.gov.au/campaign/murraydarling/first-nations (29.05.2025).

[xliii] Australian Government, 2020 Basin Plan Evaluation, https://www.mdba.gov.au/water-management/basin-plan/basin-plan-evaluations/2020-basin-plan-evaluation (29.05.2025).