New research from Mitie shows UK organisations unprepared for rising water risk and regulation

Water risk is rising up the business agenda as two-thirds of organisations face disruption, with many unprepared for the oncoming wave of regulation.

New research from Mitie reveals senior leaders at more than half of organisations (53 per cent) consider water a significant risk to their business. Rising water costs (50 per cent), leakage (47 per cent) and operational disruption (31 per cent) emerged as the greatest concerns. With over two in five organisations (42 per cent) worried about water-related risks in the near term, concern rises sharply to three in five (60 per cent) over the longer term.

The survey of 500 UK senior decision makers found that while four in five (80 per cent) leaders say they are confident in managing water systems, around four in 10 (39 per cent) lack access to accurate, real-time water data. Additionally, fewer than three in five (57 per cent) factor water into strategic decision-making, and just one in six (15 per cent) discuss it at a senior level.

Water-related challenges are already disrupting two-thirds (64 per cent) of UK organisations, losing an estimated £67,000 each year through ineffective water use.

Supply interruptions, leaks and system failures are causing increased operating costs (29 per cent), reduced productivity and downtime (22 per cent), and supply chain disruption (21 per cent).

According to the findings, Mitie says most organisations expect water-related risks to intensify, just under a third (29 per cent) say they are unprepared to manage water scarcity, ageing infrastructure and climate-related pressures.

More than half (54 per cent) of organisations have also experienced a water-related compliance breach, underlining how quickly operational issues can escalate into regulatory risk. With new regulatory requirements under AMP8, the UK’s regulatory framework for water investment and performance, alongside evolving DEFRA policy, organisations will be under greater expectations to monitor usage, report transparently and actively reduce consumption.

The findings highlight the need to turn the tide on how organisations approach water use, moving beyond a reactive mindset and embedding water within risk management and strategic decision-making. Taking greater control over how water is monitored, managed and prioritised will be key to improving resilience, reducing costs and avoiding disruption.

Geoff Smith, Director of Managed Water Services, Mitie, said: “Many organisations still view water as a facilities issue rather than a business-critical risk. Our research shows that’s no longer the reality.

“Water-related disruption is already affecting organisations so those that take control now will be better positioned to manage rising costs, increasing regulatory scrutiny and growing pressure on operations and infrastructure. Those that don’t factor water risk into their strategic thinking are likely to be caught out by these increasing challenges.”

In response to these challenges, Mitie has launched Total Water as part of its Total Compliance offering, providing an end‑to‑end solution to help organisations better manage water-related risk. Bringing together water supply, usage, treatment and compliance into a single, joined‑up approach, Mitie says Total Water gives organisations greater visibility and control across their estates.