The ethical issue of water allocation has far-reaching consequences. According to the Department of Agriculture, Fisheries and Forestry, over 74% of Australia’s water is used in agriculture, yet much of this water is wasted due to inefficient irrigation systems. This not only intensifies drought conditions but also affects the health of rivers and wetlands, leading to biodiversity loss. Additionally, water scarcity directly impacts Indigenous communities, who rely on natural water sources for their cultural and traditional practices.

One organization that has faced significant challenges in water management is Cubbie Station, Australia’s largest cotton farm. Cubbie has been criticized for its excessive water use, which has strained local water systems. The farm’s allocation of water rights allows it to hold vast quantities of water, leaving little for smaller farmers and environmental flows. (Burton & Morris, 2019)

On the other hand, Sydney Water, a government-owned corporation, has been working proactively to address the ethical issue of water scarcity. Through initiatives like water recycling, desalination, and water efficiency campaigns. Sydney Water is committed to building a sustainable future for the Greater Sydney Region. With a focus on infrastructure development to accommodate the growing population, securing water supply regardless of rainfall, and harnessing innovation to adapt to climate change. (Sydney Water)

Agribusinesses and mining corporations are among the largest contributors to water depletion. For example, mining operations like Adani’s Carmichael coal mine have been criticized for extracting significant amounts of groundwater, which negatively impacts local water systems and communities. This overuse of water has ripple effects on ecosystems and biodiversity. (Hasler, O., 2020).  

The consequences of this unethical conduct are severe. Water scarcity affects not only agriculture and industry but also local communities, particularly Indigenous groups. Reduced access to clean water exacerbates health issues, increases costs for households, and creates social inequalities. Additionally, the environmental impact of unsustainable water use leads to the degradation of wetlands and waterways, which are essential for biodiversity and ecosystem services.

• Target 6.1: Achieve universal and equitable access to safe and affordable drinking water for all.

• Target 6.4: Substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals of freshwater to address water scarcity.

From a business perspective, water scarcity presents a significant risk. Companies that rely heavily on water for production, such as those in agriculture and mining, are particularly vulnerable. As water resources become scarcer, businesses face increased costs, supply chain disruptions, and reputational risks. Moreover, companies that fail to manage water resources sustainably risk losing social licenses to operate.

Over time, the ethical issue of water use has become more pronounced as climate change intensifies droughts and water shortages. To address this, businesses need to invest in water-efficient technologies, adopt sustainable irrigation practices, and implement water recycling systems.