When we talk about climate resilience in agriculture, water often remains in the background. Carbon has become a central focus, with clear markets and pricing mechanisms, but water, arguably just as critical, is still too often treated as an endless, low-cost resource. The reality is different: water scarcity, quality, and competition are becoming defining risks for farmers, businesses, and communities alike. This was widely discussed at the World Agri-Tech Innovation Summit, London, Sept 22–23, 2025.

Why Water Belongs at the Center of Climate Strategies

A holistic approach to climate resilience must tackle multiple challenges at once, and water is at the core of many of them. Managing water effectively impacts not just crop health and yields, but also soil quality, biodiversity, and the long-term resilience of farming systems. Partnerships are emerging to test solutions in practice. For example, pilots with U.S. cotton growers are comparing outcomes across different management approaches, helping to identify strategies that conserve water while sustaining productivity.

The Hidden Price of Water

Unlike carbon, **water is rarely factored into business plans ** as a finite, costly resource. Yet this assumption is becoming increasingly risky. Water scarcity will inevitably push costs up, and businesses that fail to anticipate this shift may find themselves exposed. The criteria for assessing water risks are clear:

• Quality: water free from pollution.
• Availability: reliable access over time.
• Competition: balancing agricultural needs with those of communities, ecosystems, and other industries. Framing water only as a cost misses the point. Beyond pricing, water must be understood as a risk factor and, in some cases, as an opportunity for businesses to differentiate themselves through stewardship.

From Carbon to Broader Environmental Frameworks

Many companies are already building environmental frameworks that go beyond carbon, incorporating biodiversity, forest use, and land management. Increasingly, **water-positive frameworks ** are being discussed, aiming to balance consumption with offsetting or replenishment. However, effective water stewardship requires looking beyond the boundaries of individual companies. Water scarcity and quality affect multiple stakeholders across the value chain, as well as local communities. Any meaningful framework must therefore be collaborative, balancing different priorities and trade-offs.

The Role of Metrics and Standards

A sticking point remains: measurement. Just as the carbon market needed clear methodologies, water stewardship will require robust and practical KPIs. Biodiversity metrics are still being figured out, often combining existing indicators with tailored approaches. Soil health is one obvious inclusion, but other parameters depend on the context and the audience, what is relevant for farmers may differ from what investors or regulators want to see. While standardization would help, it must be grounded in the realities of specific environments. One-size-fits-all frameworks will not work for water. Instead, flexibility will be needed, combined with a shared understanding of core principles.

Future-Proofing Agriculture Through Water Stewardship

Climate resilience and water management go hand in hand. Water is not just another input cost: it is a strategic factor shaping the future of agriculture. By integrating water into climate strategies, alongside carbon, biodiversity, and land use, businesses can better anticipate risks, build stronger partnerships, and unlock opportunities for resilience and differentiation. The shift is already underway. The question is not whether water will become central to agricultural investment and planning, but how quickly stakeholders can move from pilots and fragmented frameworks to scalable, standardized practices.