Using water responsibly to strengthen resilience across the value chain
Water is a critical input for Sika’s production and value chain. Increasing water scarcity and water-related risks in many regions of the world may affect business continuity and reputation. In regions with limited freshwater availability, companies may face water shortages, declining water quality, price volatility, and stricter regulatory requirements.
Recognizing the close link between water use, environmental impacts and dependencies, and business resilience, Sika has identified water as a strategic topic and set a clear ambition to reduce water discharge as part of Strategy 2028.
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Water use across the value chain
Water is used throughout Sika’s value chain in different ways. It is an input material for some water-based products, such as concrete admixtures, coatings, and adhesives. In operations, water is used for production processes, cooling, and cleaning. Water is also used indirectly by suppliers and by customers during products’ application, for example as a mixing component or for cleaning tools.
Depending on local water basin conditions, these uses may contribute to pressure on water availability and quality. Although Sika’s production is less water-intensive than that of many chemical companies, the company takes responsibility for minimizing its impact on water resources across the value chain.
Water efficiency in own operations
As part of Strategy 2028, Sika has set a target to reduce water discharge per ton sold by 15%, reflecting its commitment to improving water efficiency and limiting impacts on local water resources. Since 2024, the compensation scheme of Group Management and Sika Senior Managers has been linked to the performance regarding water discharge per ton sold.
Water initiatives and implementation
Sika drives water efficiency through a structured approach based on three key levers:
- Avoid: Prevent water-related impacts by designing processes and products that minimize water use from the outset.
- Reduce: Lower water consumption through process optimization, closed-loop systems, improved cooling processes, leakage detection, flow control devices, and efficient cleaning procedures.
- Reuse: Treat and reuse water wherever feasible, including recycling process water, reusing treated wastewater, and capturing rainwater for non-potable applications. Some production sites operate their own wastewater treatment facilities, enabling the reuse of treated water for production, cooling, cleaning, or sanitary purposes and reducing reliance on freshwater sources.
Sika products and solutions for water efficiency
To support the sustainable use of water during the products use-phase and align with evolving market and regulatory trends, Sika is developing solutions to enhance water efficiency and quality and to improve water retention.
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Water risk management
Water-related risks are systematically assessed across Sika’s operations. Based on the World Resources Institute (WRI) Aqueduct tool, several manufacturing sites are in areas with high or extremely high-water stress. As part of Strategy 2028, Sika will prioritize these locations through detailed water risk assessments and targeted mitigation measures.
Water stress and other water-related physical risks are integrated into Sika’s broader climate and risk management processes.
Upstream value chain
Water-related risks are assessed for high-impact raw materials and supplier locations, with a focus on water stress, water use, and impacts on water availability and quality.
In 2025, to deepen its understanding of upstream water risks, Sika conducted a case study on selected high-impact commodities in the upstream supply chain. Using the Science Based Targets Network (SBTN) High Impact Commodity List and ENCORE, the company identified raw and value-added materials with a range of environmental impacts, including water use and freshwater pollution, which are key drivers of water stress as they affect the availability and quality of water resources. For this preliminary analysis, two commodities, cement and sand, were selected from Sika’s raw material portfolio, focusing on tier 1 suppliers in the United States.
Building on these insights, Sika plans to further assess water-related risks across additional raw materials and geographies, considering both commodity-specific and location-based factors. This will support risk-based supplier engagement, targeted mitigation actions, and the ongoing integration of water considerations into broader climate and supply chain risk management.