Overview
The Water area of the Good On You methodology evaluates a brand's commitment to responsible water stewardship across its entire value chain. Water is a critical and frequently mismanaged sustainability issue.
Unlike issues such as climate change, water management is about context. The value and impact of one megalitre of water vary significantly depending on its local source. Consequently, the methodology assesses not only the volume of water used but also where it is sourced, how wastewater is treated, and the degree of engagement with local stakeholders in water-stressed regions.
Industry verticals: Fashion, Beauty, Services
Applicable for: small and large brands
What is assessed?
The assessment of water stewardship is generalised across several core items, though the specific focus (eg supply chain v direct operations) varies by vertical.
Local impact and stakeholder engagement
Because water issues are inherently local, brands are rewarded for identifying whether their suppliers are located in water-stressed basins (ie regions facing scarcity or pollution). Assessment includes the brand's engagement with local NGOs, communities, and policy-makers to address these shared water challenges.
Water measurement and reporting
Measurement is considered the foundational step in managing water impact. Brands are assessed on whether they measure and publicly report their total water consumption and the volume of wastewater produced in their supply chain.
Water reduction initiatives
This item evaluates proactive measures taken to reduce water use. High-performing brands implement specific technologies or process changes, such as closed-loop systems, designed to minimise freshwater withdrawal.
Wastewater management
Wastewater management focuses on the treatment and discharge of water used in production or operations. The methodology looks for initiatives that ensure wastewater is treated to high standards to prevent pollution and ecosystem damage in surrounding areas.
Water targets
The methodology distinguishes between different types of goals:
Quantitative targets: Specific, time-bound goals for reducing water use or improving wastewater quality
Context-based water targets: A more advanced scientific approach that aligns targets with the unique needs of the local water basin. While very rare, these represent industry best practices
Assessments in industry verticals
Fashion and Beauty
In the fashion vertical, the assessment focuses heavily on the supply chain, particularly high-impact stages like mills and laundries. Brands specialising in water-intensive products (eg denim) are scrutinised more closely for their management of water-stressed basins. Beauty brands are assessed on how ingredients are sourced and the water footprint associated with product formulation and manufacturing.
Services
The Services vertical primarily focuses on direct operations rather than the supply chain.
Water is only assessed for service brands where delivery involves daily water use as a key input (eg hairdressers, spas, car washes, and laundromats). For these brands, the assessment centres on reduction initiatives and wastewater management within their own retail spaces or facilities
Retailers
Retailers are not currently assessed on their water practices.
Conditional assessments
For large brands that have been asked to respond to CDP Water, their CDP score will stand in place of their Good On You water score.
In the Services vertical, water questions only trigger if the brand's core service involves daily water use (eg a car wash). An accounting firm, for example, would not be assessed on water management.
Disclosure and data sources
Good On You primarily relies on a brand’s public website and sustainability, CSR, or ESG reports. In addition, for water we reference:
CDP disclosure. Brands that are asked to respond to CDP Water are verified against CDP’s latest disclosure scores
Relevance for different brands
The assessment criteria for water vary significantly based on a brand’s size.
Small brands
The assessment focuses more on the presence of practical initiatives to reduce water use and wastewater impacts, rather than exhaustive measurement and disclosure. Small brands are not expected to conduct full water assessments, determine whether they operate in water-stressed basins, or set formal water reduction targets. Instead, they are assessed on actions such as choosing suppliers with water reduction initiatives in place, using lower-impact materials or ingredients, and influencing lower-water consumer use practices.
Large brands
Larger brands are expected to measure and monitor their water and wastewater use, including assessing whether they operate in water-stressed basins. They are also assessed on whether they have clear and credible water targets or goals, and whether they engage with suppliers and other stakeholders to address water-related impacts in stressed regions.
Other practices that contribute to the score
Some practices assessed in other sections of the methodology score points within this area. These reflect actions such as certifications or broader business practices that have sustainability implications beyond just this area.
The exact practices that score in this area vary by industry vertical and are described in the articles linked below:
Best practice and common pitfalls
Best practices
Setting strategies that are aligned with the CEO Water Mandate
Moving beyond global"water intensity reductions to target initiatives in regions that are actually experiencing water stress
Brands should state if they use recognised water-risk tools, such as the WRI Aqueduct Water Risk Atlas, to identify their basin-level impacts
Targeting areas of the value chain that are the most water-intensive, such as the agricultural level
Working with stakeholders at the basin level for collective water action
Common pitfalls
A common error is claiming credit for a water reduction initiative based solely on the choice of organic cotton or Tencel. These materials already receive credit in the methodology’s resources and waste section; to receive a score for water, the brand must implement a specific initiative that goes beyond standard material production
Brands often use phrases such as “aiming to reduce water use”, without providing specific details
Reporting measurement of water consumption in direct operations (eg head office) but incorrectly claiming credit for measuring water in the supply chain
Claims of using a closed-loop system must be supported by evidence that it is a brand-led initiative rather than a standard property of a purchased material