BSR Insight | Companies Report on Water-Related Risks and Opportunities
The Carbon Disclosure Project's (CDP) latest report summarizes the results of its first annual water disclosure questionnaire that was distributed to 302 of the world’s 500 largest companies in the FTSE Global Equity Index Series. The survey asked companies for information about their water strategies and management plans, water-related risks and opportunities, and water use within the context of local scarcity or abundance.
Highlights from the report include:
- Water-related risk remains an urgent challenge for business. More than half of the physical, regulatory, or other risks identified were classified as either current or near-term (one to five years), and 39 percent of companies have already experienced operational disruptions such as drought or flooding, declining water quality, higher water prices, and fines and litigation related to pollution incidents.
- While 96 percent of respondents are aware of their own operational water risks, only 53 percent could identify risks in their supply chains.
- Sixty-two percent of respondents identified significant water-related business opportunities: improving water-management practices to reduce operating costs, and meeting the growing demand for water infrastructure to support growing populations and to adapt to climate change.
For information related to reporting on water-related risks, read our session summary from the BSR Conference 2010, or contact Linda Hwang.
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