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Input-output analysis has become a widely established method in sustainability sciences. It is primarily used in macroeconomic footprint analyses for allocating an economy’s externalities among the agents in that economy based on the agents’ input-output interdependencies. However, databases for input-output analyses are commonly compiled by aggregating data. Aggregation of input-output data inevitably leads to a loss of information and in some instances can lead to misinformed decision-making. The goal of this paper is to provide a simple hands-on numerical introduction to input-output analysis including the potential implications of data aggregation in an original manner. First, the calculation of production-based and consumption-based inventories is introduced based on a dummy 2 × 2 input-output table. Next, the inventories of the 2 × 2 input-output table are compared with the production-based and consumption-based inventories of a corresponding non-aggregated 4 × 4 input-output table. A comparison of the inventories of both dummy input-output tables allows for an exemplary demonstration of inaccurate allocation as a result of data aggregation and to conclude on potential implications for decision-making. Overall, this work offers a succinct and numerically substantiated introductory review of input-output analysis for practitioners in sustainability sciences including the potential implications of aggregation of input-output data. Its simplistic approach sets this work apart from other publications on aggregation in input-output analysis that are founded in economics or econometrics.

Freshwater is a vital resource for humans and ecosystems but is scarce in many regions around the world. Organizations measure and manage direct water use at their premises but usually neglect the indirect water use associated with global supply chains – even though the latter can be higher by several orders of magnitude. As of 2015, there was no standardized life-cycle-based approach for analysing the water consumption of an organization. Against this background, the BMBF funded research project “Water Footprint for Organizations – Local Measures in Global Supply Chains (WELLE)” has been launched by TU Berlin, Evonik, German Copper Institute, Neoperl, thinkstep and Volkswagen. The project aims to support organizations in determining their complete Organizational Water Footprint, identifying local hotspots in global supply chains and taking action to reduce their water use and mitigate water stress at critical basins. Within the WELLE project a method for analysing an Organizational Water Footprint has been developed, which analyses an organization’s water use and resulting local impacts throughout its entire value chain. In other words, the Organizational Water Footprint considers not only the direct water use at production facilities, but also the water used indirectly for energy generation and raw material production (upstream in the supply chain) as well as water use during the use and end-of-life phases of products (downstream). The Organizational Water Footprint method builds on two environmental assessment frameworks which have been identified as suitable for the purpose of this project: Water Footprint (ISO 14046, 2014 and Organizational Life Cycle Assessment (UNEP 2015). To support stakeholders in conducting Organizational Water Footprint studies, this guidance document was developed, which presents the method in a clear and concise way by illustrating each step with a practical example. By analysing their Water Footprints, organizations can determine water use and resulting local impacts at premises and “beyond the fence” along global supply chains. In this way they can reduce water risks and contribute to a more sustainable use of the world’s limited freshwater resources., Süßwasser ist eine lebenswichtige Ressource für Menschen und Ökosysteme, ist aber in vielen Regionen der Welt knapp. Organisationen messen und managen den direkten Wasserverbrauch an ihrem Standort, vernachlässigen aber in der Regel den indirekten Wasserverbrauch, der mit globalen Lieferketten verbunden ist - obwohl Letzterer um mehrere Größenordnungen höher sein kann. Bis 2015 gab es keinen standardisierten lebenszyklusbasierten Ansatz, um den Wasserverbrauch einer Organisation zu analysieren. Vor diesem Hintergrund wurde das vom BMBF geförderte Forschungsprojekt "Water Footprint for Organizations - Local Measures in Global Supply Chains (WELLE)" von der TU Berlin, Evonik, dem Deutschen Kupferinstitut, Neoperl, thinkstep und Volkswagen gestartet. Das Projekt zielt darauf ab, Unternehmen dabei zu unterstützen, ihren kompletten organisatorischen Wasserfußabdruck zu bestimmen, lokale Hotspots in globalen Lieferketten zu identifizieren und Maßnahmen zu ergreifen, um ihren Wasserverbrauch zu reduzieren und den Wasserstress in wasserknappen Einzugsgebieten zu mindern. Im Rahmen des WELLE-Projekts wurde eine Methode zur Analyse eines Organisationsbezogenen Wasser Fußabdrucks entwickelt, die den Wasserverbrauch einer Organisation und die daraus resultierenden lokalen Auswirkungen entlang der gesamten Wertschöpfungskette analysiert. Das heißt, der organisationsbezogene Wasser Fußabdruck berücksichtigt nicht nur den direkten Wasserverbrauch in den Produktionsstätten, sondern auch den indirekten Wasserverbrauch für die Energieerzeugung und die Rohstoffproduktion (vorgelagert in der Lieferkette) sowie den Wasserverbrauch während der Nutzungs- und End-of-Life-Phase der Produktion (nachgelagert). Die Methode des organisationsbezogenen Wasser Fußabdrucks baut auf zwei Umweltbewertungsrichtlinien auf, die für den Zweck dieses Projekts als geeignet identifiziert wurden: Wasser Fußabdruck (ISO 14046, 2014) und organisationsbezogene Ökobilanzierung (UNEP 2015). Um Akteure bei der Durchführung von organisationsbezogenen Wasser Fußabdruck Studien zu unterstützen, wurde dieser Leitfaden entwickelt, der die Methode klar und übersichtlich darstellt und indem jeder Schritt mit einem praktischen Beispiel illustriert wird. Durch die Analyse ihres Wasser-Fußabdrucks können Organisationen den Wasserverbrauch und die daraus resultierenden lokalen Auswirkungen am Standort und entlang globaler Lieferketten ermitteln. Auf diese Weise können sie Wasserrisiken reduzieren und zu einem nachhaltigeren Umgang mit den begrenzten Süßwasserressourcen der Welt beitragen.

With water scarcity representing an increasing threat to humans, the environment and the economy, companies are interested in exploring how their operations and supply chains affect water resources globally. To allow for systematically compiling the water footprint at the company level, the organizational water footprint method based on ISO 14046 and ISO/TS 14072 was developed. This paper presents the first complete organizational water scarcity footprint case study carried out for Neoperl GmbH, a German company that offers innovative solutions regarding drinking water for the plumbing industry. The cradle-to-gate assessment for one year includes, besides facility-based production activities, purchased materials, electricity and fuels, and supporting activities, such as company vehicles and infrastructure. Neoperl’s total freshwater consumption amounts to approximately 110,000 m3, 96% thereof being attributable to the supply chain, with freshwater consumption through purchased metals playing the predominant role. Metals (mainly stainless steel and brass) are major hotspots, also when considering the water scarcity-related local impacts resulting from freshwater consumption, which mainly affect China and Chile. These results can be used to improve the company’s supply chain water use in cooperation with internal and external stakeholders by means of, e.g., sustainable purchase strategies or eco-design options to substitute water intensive materials.