Ecolab, along with London-based environmental data firm Trucost, has devised an algorithm to tackle this challenge. Available free of charge, the Water Risk Monetizer asks users to enter their location, the amount of water they use, the amount they expect to use over the next three years, and the price they currently pay. For manufacturing facilities, the location's productivity is also entered.
The program then uses this information and looks at a region's water scarcity, the role the watershed plays in the local community and environment, and the potential for changes in the area's gross domestic product. These factors, taken together, are used to determine a premium: a number businesses can add to the base price of water to get a figure that more accurately represents the true cost – and the true risk – of their water use.