Birmingham Water Works Board (BWWB) of Birmingham, Ala., has consistently achieved the rating of the number-five water system in the United States...
The report indicates 64% of companies expect water risks to impact their business within five years
The CDP Global Water Report 2013 indicates that a misguided approach to water-related risk management has become business as usual at the world’s largest global companies. According to the report, corporate focus is too often directed at reducing water use, which is an inadequate response to increasingly immediate substantive water risks, threatening shareholder value.
Water stewardship is the solution to achieving water security, one of the most pressing issues facing the world today. A significant step change, however, is required if stewardship is to be achieved. CDP, formerly known as the Carbon Disclosure Project, is calling on investors to take a leading role in guiding companies on this issue.
This new report, written by Deloitte, is based on data provided to CDP by 180 companies listed on the FTSE Global 500 Equity Index at the request of 530 investors representing $57 trillion. Companies that use CDP’s water program for reducing risks and capitalizing on opportunities relating to water and are analyzed as part of the report include BP, Bayer, Lockheed Martin, General Motors, Nestle, Wal-Mart and Unilever.
Key findings of the report, titled, “A Need for a Step Change in Water Risk Management,” are:
“Although we are seeing great strides in corporate ability to identify water-related risks, the approach to managing those risks is misguided. If businesses are to become truly resilient to the growing threats that water poses, they must strive for stewardship,” Cate Lamb, head of CDP’s water program. “A 60% annual increase in companies using our water program is promising. The resultant data we have published today will provide unparalleled insight to investors aiming to seize a leadership position by educating their portfolio companies on this issue.”
The full report can be accessed on the CDP website.