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What is the difference between Water consumption and Water scarcity?

Understand the nuances between these two concepts

The easiest way to understand the difference is to think about money.

  • Water consumption is the amount of money you spend (e.g., €100). It’s a simple, absolute figure.
  • Water scarcity is the impact of that spending. Spending €100 has a much bigger impact if your monthly budget is €500 than if it’s €50,000.

In the same way, Water consumption is the amount of water used, while Water scarcity is the environmental impact of using that water in a specific location.

Water consumption: The amount

This is an inventory indicator. It provides the raw data.

  • What it is: A direct measurement of the total volume of fresh water (from rivers, lakes, and groundwater, also called “blue water”) used to make a product.
  • Unit: Liters (L).
  • Key takeaway: It’s easy to understand but doesn’t tell the whole environmental story, as it treats all water as equal, whether it’s taken from a desert or a rainforest.

Water scarcity: The impact

This is an impact indicator. It provides the environmental context.

  • What it is: An assessment of the environmental stress caused by consuming water in a specific location, considering the local water availability versus the demand from humans and ecosystems.
  • Unit: Cubic meters of water equivalent (m3 water eq.).
  • How it’s calculated: We take the Water consumption (the liters used) and multiply it by a regional “water stress factor” (using the AWARE methodology). This factor is high in arid places like Egypt and low in water-rich places like Norway. This calculation reveals the true severity of the impact.
  • Key takeaway: It shows the real environmental consequences of water use, which is why this approach is recommended by the European Commission.

Why you need both

You need both indicators for a complete understanding.

Water consumption gives you the basic, factual data. Water scarcity gives you the critical environmental context. Together, they provide a powerful and honest assessment of a product’s true water footprint.

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