IBA Annual Conference Copenhagen 2026

4 Oct - 9 Oct 2026

Session information

The dry tap liability: why failing to recycle water is a new D&O crisis

Wednesday 7 October (1430 - 1545)

Committee(s)

Negligence and Damages Committee (Lead)
Water Law Committee

Description

The paradigm for water management has fundamentally shifted. Once considered a limitless utility, reliable water access is now one of the most critical vulnerabilities for both public and private enterprises in the face of persistent drought, climate volatility and population growth.

For sanitation companies and water utilities, the 'dry tap' scenario — the point at which supply can no longer meet demand — has moved from a hypothetical worst case to a foreseeable business reality.

In this new reality, water recycling and reuse are no longer innovative options; they are essential components of climate adaptation and business continuity.

This session confronts the profound legal exposure for directors and officers who fail to act. We will explore how the decision to delay, defer, or reject capital investment in proven water reuse technologies is being reframed as a critical failure of oversight and a direct breach of fiduciary duty.

When a utility fails, or a corporation's operations halt due to a predictable water shortage, stakeholders — from investors to regulators to the public — will not ask if the board knew about water recycling, but why they failed to implement it.