- Water stress is already hitting operating costs, supply chains and infrastructure across European industry
- Water shortages now rank as high as cyber-attacks and supply chain disruption for industrial business continuity
- Nearly 60% of leaders admit to not installing the technology they know could cut water risk
PARIS, Oct. 20, 2026
uncertain
they → hit → risk
Schneider Electric, a global energy technology leader, today released The Water Crunch Report, new research revealing that water is now one of the biggest risks to industrial business continuity across the UK and Europe, ranking as highly as cyber-attacks and supply chain disruption.
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water → release → attacks
This echoes last year’s US-focused research from Schneider Electric, where over half (56%) of business leaders said water-related risks will grow faster than other infrastructure risks in the coming years.
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risks → echo → years
The Water Crunch Report surveyed senior leaders at industrial companies and decision-makers at water utilities and municipalities across Europe.
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Report → survey → Europe
In the past two years, industrial leaders say water stress has already pushed up their operating costs (44%), strained infrastructure and maintenance budgets (38%), and disrupted supply chains (30%).
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stress → say → costs
If a serious water supply disruption hits tomorrow, 44% of businesses believe their operations would start to suffer within 24 hours.
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operations → hit → hours
On average, over half (52%) of industrial leaders expect water quality or availability to become a serious barrier to their organization’s growth within the next five years, by 2031, and 1 in 7 (14%) say it already is a barrier to their operations or growth today.
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it → expect → operations
The findings land against the backdrop of Europe’s most severe drought conditions in decades, with the knock-on effects on the freight, energy and agriculture sectors providing a stark reminder that these pressures are no longer hypothetical.
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pressures → land → reminder
“Europe cannot afford to treat water as an environmental issue alone.
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Europe → afford → issue
It is now a competitiveness issue,” said Gwenaelle Huet, Executive Vice President, Industrial Automation, Schneider Electric.
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Huet → say → ?
“Just as the energy transition reshaped industrial strategy over the past decade, water efficiency will shape the next one.
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efficiency → reshape → one
AI-powered industrial intelligence gives companies unprecedented visibility into how water is used, wasted and recycled.
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water → power → visibility
The challenge is no longer understanding the problem, but acting at the pace required to secure Europe’s industrial future.”
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challenge → understand → future
“It’s easy to write off this summer’s droughts and impact on industry as a one-off, but this is now a structural feature of operating in Europe,” said Sophie Borgne, Water & Environment Segment President of Schneider Electric.
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Borgne → ’ → Electric
“Right now, around half of the EU and UK are under some level of drought, according to the EU’s European Drought Observatory.
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half → accord → Observatory
Reusing water can reduce our dependence on rivers and reservoirs already under strain, yet only 2.4% of treated urban wastewater is reused across the EU today.
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% → reuse → EU
The organizations investing in smart water technology are turning water efficiency into a competitive advantage.”
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organizations → invest → advantage
Awareness vs. adoption
Smart water technology is widely recognized as a solution to water management, but implementation is not keeping up with awareness.
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implementation → recognize → awareness
Belief in these tools is close to universal: 86% of industrial leaders and 98% of water utilities say smart water technology can cut operating costs, and over 80% say it protects business continuity and strengthens sustainability performance.
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it → say → performance
Despite this, industrial leaders show particularly high awareness of technologies they haven’t yet deployed: 58% are aware of digital twins or network modelling tools but have not installed them, while 57% of water utilities say the same of predictive analytics or AI-enabled water management.
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% → show → analytics
The encouraging news is that industry isn’t waiting for the problem to worsen.
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problem → wait → ?
Nearly all organizations surveyed (100% of water utilities and 98% of industrial leaders) say water availability or quality has already shaped major decisions, from increased investment in water efficiency (47%) to formal board-level reviews of water risk (43%).
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availability → survey → risk
More than half of industrial leaders surveyed have installed automated controls (56%) and smart meters (55%); smart meter adoption climbs even higher among water utilities, to 76%.
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adoption → survey → %
Cybersecurity is climbing up the agenda too, with over half of both industrial leaders and water utilities naming it among the top risks to manage as water systems become more connected and digital.
But there is clear headroom for growth: many leaders are aware of technologies designed to optimize operations but haven’t yet installed them, meaning the biggest gains may still be ahead.
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gains → climb → them
For European business leaders, the takeaway is straightforward: water risk now needs the same active management as energy or cybersecurity.
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risk → need → energy
Closing this gap is likely to matter most for the industries already feeling the cost of water stress.
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Closing → close → stress
“For nearly two decades, water has been overlooked in the climate conversation, attracting a fraction of the investment given to energy or carbon.
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water → overlook → energy
With Europe warming more than twice as fast as the rest of the world, pressure on water supply is intensifying, and The Water Crunch report confirms the mindset is shifting: 47% of industry leaders have already increased investment in water efficiency, and 43% have taken water risk to board level.
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% → warm → level
Water security is finally being treated as a business priority, not an afterthought,” said Tom Freyberg, independent water and environment expert.
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Freyberg → treat → priority
Forward-thinking utilities are leveraging existing technologies to minimize impact on their customers.
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utilities → think → customers
To ensure the supply security of its water network, the Danish utility, Aarhus Vand, relies on the forecasting capabilities of a digital twin.
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utility → ensure → twin
Schneider Electric’s EcoStruxure™ Water Advisor – Water Simulation was deployed to help the utility remotely monitor its water supply network to easily and precisely identify potential leaks and supply fluctuations.
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utility → deploy → leaks
Using data from points on the network, Water Simulation anticipates the impact of planned and unplanned events so Aarhus Vand can take the best actions to address them quickly, minimizing waste and providing a reliable supply of high-quality water for its customers.
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Vand → use → customers
The provider also benefits from lower energy use and costs thanks to improved efficiency.
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provider → benefit → efficiency
Notes to Editors:
Schneider Electric is helping cities and businesses digitalize water infrastructure, transforming it from a hidden risk into a strategic advantage.
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cities → help → advantage
From real-time leak detection to digital twins that simulate and optimize water flow, Schneider’s smart water solutions reduce losses, improve reliability, and strengthen operational performance.
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solutions → simulate → performance
More information on Schneider Electric’s Water and Wastewater solutions can be found here.
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information → find → solutions
The research was commissioned by Schneider Electric and conducted by Censuswide, with the survey questions designed in collaboration with independent water industry journalist and analyst Tom Freyberg, Founder of Atlantean Media.
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questions → commission → Media
It explores how industrial leaders and water system decision-makers across the UK and Europe are experiencing water stress today, the strategic priorities related to water management and infrastructure, and the gap between recognizing water risk and acting on it.
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leaders → explore → it
The research was conducted in the UK, Ireland, Italy, France, Spain, Germany and the Nordics (Sweden and Denmark) in June 2026 and surveyed a total of 340 leaders comprised of two key groups:
- 210 industrial business leaders (Director-level and above) from large enterprises (1,000+ employees) across key industries including Energy & Chemicals, Manufacturing, Life Sciences & Pharmaceuticals, Industrial Machinery & Equipment, Semiconductors & Electronics, Construction and Food & Beverage.
- 130 water system decision-makers from utilities, municipalities/local government and public water infrastructure providers.
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research → conduct → utilities
…and 7 more, not listed.
The Aporia
