How Businesses And Investors Assess Water Risk

9 Jul 2020 by Staff - Water Diplomat
Edinburgh, Scotland

OOSKAnews Talks Video Conversation HERE.

Businesses face physical, reputational and regulatory risks driven by water, which will only increase with climate change. Understanding these risks and incorporating them into the business strategy is critical for companies to secure their license to operate as well as ensure business profitability. Business risk related to water is also critical for investors to make sound investment decisions. Companies and investors are increasingly concerned about the water risks faced by their operations, supply chains and investments – and looking for tools to help to assess these risks; a number are deployed and used, causing some confusion around both the concept of water risk assessment and the differences/similarities among these water tools.
 

OOSKAnews' David Duncan talked to the co-authors of a new report that describes options available to decision-makers, and seeks to clarify possible confusion.

Right tool for the right job: Tools & Approaches for Companies and Investors to Assess Water Risks & Shared Water Challenges compares the three leading corporate water tools – WBCSD’s India Water Tool, WWF’s Water Risk Filter, and the World Resources Institute (WRI) Aqueduct – and offers guidance on the approaches companies and investors should adopt to assess water risks and shared water challenges.

The report explores the specifics of three water tools and provides guidance to companies on the use of the various tools in relation to their needs and priorities. In addition, the report offers recommendations on what constitutes a robust water risk assessment and understanding of water challenges.

The report’s authors discuss the emergence and growing awareness in business and investment of “water” as being more than a CSR exercise, but being a bottom-line consideration, and benefit to the river basins where they operate; differences in how this awareness has emerged (some geographies faster than others; some sectors faster than others); patterns of buy-in to the necessity of assessing water risk; overlaps and differences among the tools available to decision-makers, and look to the future.

Deepa Maggo is Manager, Water at the World Business Council for Sustainable Development (WBCSD). She works with the member companies of the Council in India for collective business-led action on water. She has been working on key topics like water stewardship, water-smart agriculture and circular water management where industry has been playing an important role in advancing knowledge and solutions in India.

Ariane Laporte-Bisquit is the WWF Water Risk Filter Project Manager since 2018. She is responsible for overseeing the ongoing evolution of the WWF Water Risk Filter tool’s development and strategy. She also engages with investors and corporate users of the tool, in collaboration with the wider WWF network, to drive water stewardship awareness and action.