The lack of strategic sustainability orientation in German water companies

Marlen Arnold

Ecological Economics, 2015, vol. 117, issue C, 39-52

Abstract: Water-supply and distribution companies (WSC) are dealing with one of the most crucial natural resources. That is why the German national sustainability strategy highlights water as one of the priority fields of action. In Germany, WSC show characteristics of natural monopoly. The distinct separation between public institutions and the private sector as well as municipal operators being responsible for practicing special functions is characteristic for the German water economy. From an evolutionary perspective it is of interest how German WSC implement sustainability strategically. Therefore, strategic concepts and tools facing sustainability (e.g. ISO 14001, Reporting, and Balanced Scorecard etc.) were analysed and evaluated in the context of the water industry. Using literature studies and web analysis the relevant data of 110 German WSC was put together. A cross-sectional design was used in order to find patterns. Possible gaps are highlighted and ongoing steps to foster sustainability are stressed. This study points out a sustainable management is just marginally implemented. The results obviously show that there are differences between large companies and SMEs facing sustainability requirements. WSC having own regenerative power generation and an integrative thinking of farming and water supply, are part of good practice.

Keywords: Sustainability tools; Sustainability principles; Monopoly; Contingency analysis; Cross-sectional design; Strategic thinking (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:117:y:2015:i:c:p:39-52

DOI: 10.1016/j.ecolecon.2015.06.014

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