Water Is a Key Feature of the Climate Crisis, Posing Risks for InvestorsThat’s why water and climate adaptation will be one of the key subject...Water Is a Key Feature of the Climate Crisis, Posing Risks for Investors
That’s why water and climate adaptation will be one of the key subjects for the COP27 climate summit, which runs through Nov. 18 in Sharm el-Sheikh, Egypt.
“Water plays a key role in meeting the goals of the Paris Agreement and in supporting science-based global climate action,” says Kata Molnar, a water expert with Sustainalytics, a Morningstar company that provides sustainability research. To forestall the worst effects of climate change, the world is aiming to slash the carbon emissions that cause global warming to net zero by 2050. Yet the world isn’t anywhere close to net zero, and even a 2-degree global temperature increase could result in physical water scarcity for 3 billion people, according to the Intergovernmental Panel on Climate Change.
“We’ve all come to a realization of how inextricably linked water and climate are,” said Betty Yee, California’s State Controller, at a Ceres webinar this year. “Water risk manifests in water scarcity, affecting livelihoods and the entire economy.”