by Mark Grant, Griffith University and WSAP Board Member
With mandatory climate reporting one of the biggest sustainability topics right now in Australia, I’ve been having a lot more conversations about ESG disclosure, AASB S1 and S2, and what this actually means in practice.
The early focus has understandably been on carbon, but in my conversations one thing has become increasingly clear to me — water risk is still flying under the radar. And that’s a problem.
Water availability, scarcity, drought, flooding and rising costs all translate very directly into financial and operational risk. Under AASB S1 and S2, if those risks are material, they need to be clearly understood, governed and disclosed as part of your sustainability reporting.
So, the question isn’t whether water matters — it’s whether you’ve done enough to properly assess and articulate that risk.
ESG is not just compliance — it is value creation
This shift is not only about compliance. It reflects a broader trend in how organisations view ESG.
The global consulting firm McKinsey & Company identifies five pathways through which ESG creates value:
- driving top-line growth
- reducing costs
- minimising regulatory and legal risks
- improving productivity
- optimising investment and capital allocation
I’d argue that water sits central to all of these:
- Water efficiency reduces operating costs
- Strong water governance supports regulatory compliance
- Resilient water strategies secure operations under drought or disruption
- Transparent water disclosure builds investor and stakeholder confidence
In this context, organisations that proactively manage water risks are not just meeting reporting requirements — they are strengthening business resilience and unlocking value.
From water management to ESG narrative
One of the challenges I see from my professional exposure with AASB disclosure preparation is not a lack of data — it’s a lack of a clear, defensible narrative and systems. The AASB standards require organisations to describe governance, strategy, risk management, and metrics and targets in a consistent and connected way.
That’s not something you can pull together at the last minute. It requires a structured understanding of your risks and how they link to business outcomes. It takes a year or more of preparation.
This is where tools like the Water Stewardship Asia Pacific WSAP Water RoadMap really add value.
It’s not just a technical assessment. It’s a strategic diagnostic that helps translate water issues into something that can be used at an executive and board level — aligning with ESG priorities and corporate strategy.
How WSAP’s Water RoadMap supports ESG reporting
The Water RoadMap is a structured diagnostic tool that provides a strategic analysis, scorecard and performance improvement plan for water and wastewater management.
Delivered through a facilitated workshop with senior leaders and operational teams, it enables organisations to rapidly assess their exposure, performance and priorities.
The process provides:
- A strategic assessment of water-related risks and opportunities
- A scored baseline across performance indicators
- Immediate identification of priority actions
- Benchmarking against industry and international good practice
- A structured improvement plan linked to ESG objectives and corporate strategy
Importantly, the Water RoadMap is designed to integrate water management with broader ESG and business strategy, supporting organisations to translate operational insights into governance, strategy, risk management, and metrics — the core pillars required under AASB S1 and S2.
My experience at Griffith University — and why it’s just the start
Griffith University is a WSAP member and in 2025 we completed a Water RoadMap as part of a broader effort to better understand our water and climate risks.
What it gave us wasn’t surprises, but clarity — a shared view of where we’re strong, where the gaps are, and what to prioritise next. Bringing the right people together helped connect operational knowledge with strategy, which is critical for ESG and climate reporting.
The outputs were practical: a clear view of our water risks, a benchmark of current performance, and a prioritised set of actions to guide future investment. That’s been especially valuable as we’re also doing parallel work to identify climate-related gaps and develop a roadmap to address them. We’re taking this seriously and actively getting ready for the new reporting environment.
The RoadMap has also been an important first step in our broader water stewardship journey. We’re now pursuing recognition through the WSAP Water Stewardship Verification Program. While the RoadMap doesn’t determine the outcome, it establishes a strong baseline, benchmarks our performance, and helps prepare us for verification — giving our team confidence in what comes next.
A WSAP RoadMap is a practical starting point
If you’re starting to think about water risk in the context of ESG and climate reporting, my advice is simple: don’t wait until reporting deadlines are looming.
The WSAP Water RoadMap is a really practical way to get started in the water space. It gives you a clear, defensible baseline and helps connect the dots between operations, strategy and reporting.
From my experience at Griffith, it’s been a valuable step in taking steps to move from “we have water data” to “we understand our water risk and what to do about it.”
And that’s ultimately what AASB S1 and S2 are asking us to demonstrate.