CDP Global Water Report 2014

68% of Businesses Report Exposure to Water Risk which Could Generate a Substantive Change in their Business, Operations or Revenue

Water insecurity is already presenting parts ofthe corporate world with serious challenges.

Growing demand for water, driven by urbanization,industrialization and economic growth, coupled withimpacts on supply caused by climate change, will onlycompound these challenges.

CDP's water program is designed to guide corporationsthrough challenges while helping investors andcompanies with large supply chains better understandhow their portfolio companies and suppliers areaddressing their water impacts.

It is used by investorscollectively managing more than US$60 trillion and bymultinational companies with combined procurementspend of US$126 billion.This year, more than 2,200 firms were askedto disclose informationrelating to water, double thenumber in 2013. Responses were received from 1,064,- up 79% compared with 2013, generating an unrivalleddatabase of self-reported corporate water risk and themitigating actions being taken.

CDP acknowledges the hard work and dedication ofmany of the world's corporations in measuring andreporting these important data, particularly those thathave consistently disclosed through CDP since water program began in 2010.

This report analyses the disclosures from 174 Global500 companies in sectors with high water vulnerabilitiesand impacts.

Its key findings are:

Water insecurity is likely to constrain growth

Almost one quarter (22%) of responding companiesreport that issues around water could limit the growthof their business. Of these, one-third expects thatconstraint to be felt in the next 12 months. Existingexposures may put substantial corporate value at risk.

Water risk assessments are often falling short

However, just 38% of respondents are assessing waterrisks in both direct operations and supply chains, only40% include local communities and other water users inwater risk assessments, and less than one third (28%)conduct an assessment at the river basin level. Sixtypercent of respondents do not require key suppliersdisclose water risks they may face.

Awareness of risk is rising and consensus isforming around corporate water stewardship

There is evidence of progress on key indicators ofwater risk monitoring and management, such as boardoversight, target setting, investment, and recognitionof the opportunities presented by sophisticated watermanagement. There is also growing consensus aroundthe concept of corporate water stewardship, and agrowing suite of best practice case studies highlightinghow companies are successfully putting theory intopractice.

The C-Suite is now required to lead

Nonetheless, the responses to this year's waterquestionnaire show that companies need to takecomprehensive view of their water vulnerabilitiesand impacts and how they might be managed.

Corporate leadership is required to drive the necessaryinvestment, strategic oversight, and innovation neededto move towards improved corporate water stewardshipand greater water security.

Source: CDP

Read More Related Content On This Topic - Click Here

Media

Taxonomy

• Risk Assessment
• Finance and Markets