# European industrial and systemic water scarcity risks

> Live situation record from CLSTR: https://clstr.news/situations/european-industrial-and-systemic-water-scarcity-risks
> Updated: 2026-10-25T08:28:00.000Z. Sources: 20. Developments: 3.

A Schneider Electric report, ‘The Water Crunch Report’, indicates that water supply risks in Europe and the United Kingdom have become as significant to industrial operations as cyberattacks or supply chain disruptions. The study found that water shortages have already increased operating costs for 44% of respondents and caused supply chain disruptions for 30%. In Central and Eastern Europe, research involving 115 companies highlighted a lack of preparedness, with 53% of companies lacking a dedicated water strategy and only 7% feeling highly prepared to manage these risks.

Following these findings, the European Economic and Social Committee (EESC) issued a warning to the European Union regarding the urgent need to protect and restore water resources. The EESC stated that climate change, unsustainable water use, and land-use changes are disrupting the hydrological cycle, threatening food security, economic stability, and international security. The Committee also highlighted the threat to ‘green water’—moisture stored in soil—and called for intensified cross-border cooperation and joint management of water resources.

Recent data from Schneider Electric suggests that more than half of industrial leaders expect water shortages to hinder company growth by 2031. While 86% of managers believe smart technologies can reduce costs, the adoption of tools like digital twins and AI-driven predictive analytics remains slow. Furthermore, 44% of companies believe their operations would be affected within 24 hours in the event of a severe water supply disruption. Gwenaelle Huet, Executive Vice President for Industrial Automation at Schneider Electric, stated that water management will shape the next decade of industry, much like the energy transition did for the last.

## Timeline

### 2026-10-25: Water scarcity poses major risk to European industry

A Schneider Electric survey warns that water scarcity is a major industrial risk in Europe, potentially hindering growth through 2031 and impacting operations within 24 hours of a severe shortage.

5 sources. https://clstr.news/cluster/schneider-electric-survey-water-scarcity-threatens-european-industry

### 2026-10-24: European Economic and Social Committee warns of global water crisis

The EESC warns that climate change and unsustainable water use are disrupting the hydrological cycle, threatening global food security, economic stability, and increasing the risk of migration and conflict.

13 sources. https://clstr.news/cluster/european-economic-and-social-committee-urges-eu-water-resource-protection

### 2026-10-23: Schneider Electric report warns of water scarcity risks for European industry

A Schneider Electric report warns that water scarcity poses a major industrial risk in Europe, comparable to cyberattacks, with many companies lacking adequate water management strategies.

2 sources. https://clstr.news/cluster/schneider-electric-report-warns-of-water-scarcity-risks-for-european-industry

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Cite as: European industrial and systemic water scarcity risks. CLSTR, https://clstr.news/situations/european-industrial-and-systemic-water-scarcity-risks