Singapore, 27 November 2025 – A study by Kering and the National University of Singapore (NUS) Business School’s Centre for Governance and Sustainability (CGS) found that while Asia-Pacific companies are improving their efforts to enhance water efficiency, they fall short on broader corporate water stewardship, with gaps in addressing water risks across supply chains and shared catchment areas.
Water is a cornerstone of sustainability and a critical link between climate, biodiversity, and human livelihoods. Although the total volume of water on Earth is immense, only 0.3 per cent of the Earth’s freshwater is accessible for human use, making it an increasingly scarce resource according to the World Meteorological Organization. As climate change and economic expansion intensify, this finite resource faces mounting stress. This escalating pressure is evident globally, with the number of people living under high or critical water stress rising from 721 million in 2015 to over 791 million in 2021 (FAO and UN-Water, 2024). Despite its importance, water remains one of the most under-addressed areas in corporate environmental, social, and governance (ESG) strategies.
To bridge the gap, the new study titled Corporate Water Stewardship: Strategies and Practices in Asia Pacific, examines how leading companies in the region are managing and safeguarding this vital resource. It is the second study under a research collaboration between Kering and CGS, established in 2024 to develop benchmarks for corporate climate and nature-related strategies in Asia Pacific.
“It is essential to understand how companies engage with water and to evaluate the practices that support responsible water management. This means looking closely at their dependencies and impacts, while also identifying the risks and opportunities that arise from the way they use and manage this vital resource. Following our first joint report on nature-related corporate strategies in the Asia-Pacific region, we are pleased to release this new case study, which highlights the importance of advancing water stewardship – a critical issue that still does not receive the attention it deserves,” said Marie-Claire Daveu, Chief Sustainability and Institutional Affairs Officer, Kering.
“Mere compliance with water regulations is insufficient to tackle the growing range of water-related challenges. Much like climate action, effective water stewardship demands collaboration among corporations, suppliers, consumers, communities, and local governments. Water lies at the heart of the Water–Nature–Climate Nexus, meaning that threats to water inevitably affect other interconnected systems. Just as with climate, companies must act swiftly and collectively to address water challenges,” said Professor Lawrence Loh, Director, Centre for Governance and Sustainability, NUS Business School.
Water strategies remain focused within corporate boundaries
The study reviewed the self-reported practices of six major Asia-Pacific corporations: Fonterra, Olam Group, Youngone, Shiseido, Central Pattana (CPN), and Link REIT. These companies represent the agriculture, fashion and beauty, and real estate sectors, which are among the region’s most water-intensive industries. Using an Economic, Environmental, Social and Governance (EESG) lens, the report explores how governance is at the centre of water stewardship and provides insight into corporate best practices for water initiatives.
Across all sectors, companies generally begin their water journey by focusing on internal management, such as measuring usage, improving efficiency, controlling pollution, and ensuring regulatory compliance. For example, Shiseido achieves 100 per cent water data coverage across all production sites and sets measurable performance targets. In agriculture, Fonterra and Olam Group enhance efficiency through precision irrigation and wastewater reuse, reducing freshwater withdrawal while maintaining productivity. In the real estate sector, CPN and Link REIT have implemented water-saving and monitoring measures such as installing water-efficient fixtures, adopting rainwater harvesting systems, and investing in advanced technologies to detect leaks and prevent overflow.
While these measures strengthen operational sustainability, the study finds that most corporate water strategies remain confined within company boundaries. While some companies have begun extending water initiatives beyond their internal operations, such efforts are still far from being mainstream industry practice. Key gaps include limited water investments and disclosure of financial risks and metrics on water issues, minimal collaboration on sustainable material sourcing within the supply chain, a lack of engagement with consumers on water conservation as well as context-based water targets. To achieve genuine stewardship, companies must assess their nature-related dependencies and impacts across the full value chain, particularly in upstream sourcing and raw material extraction.
From efficiency to stewardship
The study calls for a transition from efficiency-driven internal water management to wider corporate water stewardship, defined as water use that is socially equitable, environmentally sustainable, and economically beneficial. It recommends that companies adopt science-based and context-specific water targets aligned with local river basin conditions. Frameworks such as the Science Based Targets Network (SBTN) and the Taskforce on Nature-related Financial Disclosures (TNFD) provide structured approaches for setting these goals and integrating water management with climate and biodiversity considerations.
As major water impacts often occur beyond direct operations, the study highlights the importance of engaging suppliers through training, technical and financial support. Strong leadership and governance are also critical to ensuring alignment, accountability, and the integration of water goals into business strategies and executive performance metrics.
About Kering
Kering is a global, family-led luxury group, home to people whose passion and expertise nurture creative Houses across couture and ready-to-wear, leather goods, jewelry, eyewear and beauty: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté. Inspired by their creative heritage, Kering Houses design and craft exceptional products and experiences that reflect the Group’s commitment to excellence, sustainability and culture. This vision is expressed in our signature: Creativity is our Legacy. In 2024, Kering employed 47,000 people and generated revenue of €17.2 billion.
About National University of Singapore (NUS)
The National University of Singapore (NUS) is Singapore’s flagship university, which offers a global approach to education, research and entrepreneurship, with a focus on Asian perspectives and expertise. We have 15 colleges, faculties and schools across three campuses in Singapore, with more than 40,000 students from 100 countries enriching our vibrant and diverse campus community. We have also established more than 20 NUS Overseas Colleges entrepreneurial hubs around the world.
Our multidisciplinary and real-world approach to education, research and entrepreneurship enables us to work closely with industry, governments and academia to address crucial and complex issues relevant to Asia and the world. Researchers in our faculties, research centres of excellence, corporate labs and more than 30 university-level research institutes focus on themes that include energy; environmental and urban sustainability; treatment and prevention of diseases; active ageing; advanced materials; risk management and resilience of financial systems; Asian studies; and Smart Nation capabilities such as artificial intelligence, data science, operations research and cybersecurity.
For more information on NUS, please visit nus.edu.sg.
About NUS Business School
The National University of Singapore (NUS) Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.
The school has consistently ranked first in Asia by independent publications and agencies, such as The Financial Times, and Quacquarelli Symonds, in recognition of the quality of its programmes, faculty research and graduates.
The school is accredited by AACSB International (Association to Advance Collegiate Schools of Business) and EQUIS (European Quality Improvement System), endorsements that the school has met the highest standards for business education.
Established in 2010, the Centre for Governance and Sustainability (CGS) is part of the NUS Business School. Its mission is to spearhead high-impact research on corporate governance and sustainability in Singapore and the Asia-Pacific and serves as the national assessor for the corporate sustainability and governance performance of listed companies in Singapore.
In tandem with growing demands from consumers and investors that financial returns are achieved with integrity, backed with environmental and social considerations, CGS has a slew of research focusing on sustainability reporting in Asia Pacific, sustainable banking, nature reporting, and climate reporting in ASEAN.
More information about CGS can be accessed at https://bschool.nus.edu.sg/cgs/.
For media enquiries, please contact:
Natalie LAW Assistant Manager, Corporate Communications NUS Business School National University of Singapore Tel: +65 6601-1206 Email: natalielaw@nus.edu.sg
Kering:
Errial Chiu APAC office Email: errial.chiu@kering.com
Emmanuelle Picard-Deyme HQ office Email: emmanuelle.picard-deyme@kering.com