November 28, 2025
Martin Carlsson, Tetra Pak’s Nature Manager, remembers the moment he first came across the ‘diamond–water paradox’. Why are diamonds more expensive than water, the thing we literally can’t live without?
It’s a paradox that feels even sharper today. The UN warns that by 2030, global demand for freshwater will outstrip supply by 40%. Already, more than 2 billion people live under water stress*. Industries that depend on reliable supply – including food and beverage, which depends on water at every step of its value chain – are also feeling the impact.
“Water is so critical for people,” Martin reflects. “For communities, for ecosystems, and for businesses that depend on it to operate. Yet we treat it as though it will always be there.”
It’s time to bring water to the forefront
For decades, water sat in the backdrop of sustainability debates, often overshadowed by carbon or energy. Yet, safe access to clean water is central to shaping a future where future generations have safe and widespread access to nutrition without placing an unsustainable strain on the planet’s resources.
For Martin, the turning point came in 2022 when Tetra Pak carried out its first full water footprint assessment. “It was a wake-up call,” he says. “You expect water risk in some regions. But when you see it mapped in red across so many countries where we source, operate and serve customers, you realise this isn’t a distant issue.”
Making water stewardship part of everyday practice
Water stewardship often starts with awareness about daily habits and choices. “In many of our factories, especially in water-stressed regions, you’ll see campaigns reminding people to ‘be water smart’. This mindset expands to the way Tetra Pak manages water consumption across its operations.
Tetra Pak’s efforts to enhance water security are guided by its Approach to Nature, launched in 2024, which sets a target to reduce freshwater withdrawal by 50% in best-practice food processing lines by 2030 (compared to 2019). The framework outlines a clear ambition for the reduction of freshwater use across Tetra Pak’s value chain – through close engagement with suppliers, direct actions on its own operations, and the development of more water-efficient products.
“Most of our impact comes from outside our direct operations – further upstream or downstream in the value chain. This underscores the importance of reaching out to suppliers, customers and other stakeholders to reduce overall water usage and reliance on freshwater supply” continues Martin.
Keeping the whole value chain in mind, Tetra Pak requires suppliers with significant water usage to report on their water use and quality.
Customers are also paying heightened attention to water management, Martin adds “Here, the conversation has shifted significantly in just a few years. Our customers are keenly aware that managing water efficiently is crucial to strengthening resilience, boosting competitiveness and minimising downtime. Their increased focus is revealing growing areas of overlap where we can drive synergies and collaborate to enhance efficiency across the value chain.”
"Our customers are keenly aware that managing water efficiently is crucial to strengthening resilience, boosting competitiveness and minimising downtime."
Collaboration is, of course, central to making progress. For example, in Thailand Tetra Pak has worked with Dairy Plus, a regional leader in dairy products, to cut water use by 40%, easing strain on wastewater systems while creating room for future growth. In New Zealand, a project with Fonterra is seeding a new wastewater treatment system that avoids costly plant expansions and improves resilience.
“These cases show how water connects us more deeply with our customers’ challenges,” Martin explains. “We’re helping them process food more efficiently, and in some cases, we’re also helping manage water systems more sustainably. That creates value for the customer, for local communities and for us as a learning partner.”
“We’re helping customers process food more efficiently, and in some cases, we’re also helping manage water systems more sustainably. That creates value for the customer, for local communities and for us as a learning partner.”
One reason stewardship matters is its ability to create multiple benefits at once – a true ripple effect.
“Water doesn’t exist in a vacuum,” Martin explains. “If you restore forests, you capture carbon, but you also improve water quality and reduce flood risks. If you develop energy-efficient equipment, you often find it saves water too. These connections are becoming clearer all the time.”
This interconnectedness shows up in Tetra Pak’s own data as well. Since 2019, overall water intensity, measured as cubic metres per million euros of revenue, has dropped by 22%. Much of this progress comes from projects originally designed to cut energy use or streamline production. The gains spill over into water, showing how solutions aimed at one challenge can have a beneficial effect on others.
Guided by science for credible action
Science-based frameworks are also giving businesses clearer guidance. The CDP introduced its first water disclosure questionnaire in 2023, with Tetra Pak achieving an A– rating for two years running. Standards such as the Science Based Targets Network (SBTN) and the Taskforce on Nature-related Financial Disclosures (TNFD) are also gaining traction and helping a growing number of companies set credible, comparable goals.
“For us, science provides the foundation for credible action,” Martin says. “The frameworks are still developing, especially for water because it’s so local and context-specific. But once the science settles, we want to be ready to commit. That’s what will make stewardship credible in the long term.”
“For us, science provides the foundation for credible action. The frameworks are still developing, especially for water because it’s so local and context-specific. But that’s what will make stewardship credible in the long term.”
Scaling up efforts is the key to achieve tangible results. “Optimisation here and there isn’t enough to bend the curve yet, which is still downward. We need to scale up. Much more, and much faster.”
Some regions are moving quickly, especially where water stress and financial resources overlap. Southern Europe and parts of the US are investing heavily in water-efficient technologies, driven by regulation and market demand. These early movers show what’s possible, and their progress helps raise ambition elsewhere.
The tougher challenge lies in regions with water scarcity but fewer resources. “That’s where collaboration matters most. It’s important to bring together finance, technology and knowledge to scale solutions everywhere, not just where it’s easiest,” Martin says.
The diamond–water paradox that struck Martin years ago underlines why water stewardship sits at the heart of resilient food systems, communities and businesses alike.
*UN Water, 2023 SDG Progress Report.
