1 in 5 companies face supply chain water risks: CDP Report The 2023 CDP Global Water Report has highlighted an important issue: 1 in 5 companies have identified water-related risks in their supply chains that could significantly impact their business operations. 💧 623 companies report a combined $77 billion threatened by water-related supply chain risks, highlighting the growing vulnerability of global businesses. 💧 Companies engaging their suppliers on water issues are 7x more likely to identify and manage these risks. 💧 118 global brands like Coca-Cola and L’Oréal are tying executive remuneration to water targets, driving action across supply chains. 💧 As climate change accelerates water scarcity, flooding, and pollution, the report calls for stronger regulations, mandatory disclosures, and systemic changes to secure a sustainable water future. With global temperatures rising and freshwater availability declining, immediate and concerted efforts are necessary to protect both the economy and the environment from escalating water crises Interested in more news like this? Give us a follow. #Sustainability #WaterRisks #SupplyChain #CDPReport
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Vice President at Produced Water Society 💧 Licensed Contract Auctioneer 🔨 Dealmaker & Capital Connector 🤝 Focused on the nexus of Tech, Energy, and Resource Development ♻️
“First, businesses must understand where their most valuable operations and sourcing regions are to prioritize the most effective actions. Once they identify which locations matter most, they must take stock of the infrastructure there and what water risks could cause the most damage. Agriculture could be most at risk from water stress or poor water quality, manufacturing could suffer from water unavailability and real estate could face rising sea level issues. Different areas face various risks: Some might be drought-prone, whereas others are susceptible to climate change-fueled storms. The key is knowing which locations face which risks—and what those locations are relied upon for. For instance, denim production is (perhaps surprisingly) water-intensive, from the cotton field to the production line. Companies like Levi Strauss & Co. utilize tools like the World Resources Institute’s (WRI) Aqueduct Water Risk Atlas to identify water-stressed locations in their supply chain. The company’s approach to a water-stressed cotton-sourcing area would differ from its approach to a water-stressed area that's home to manufacturing facilities. For instance, it implemented water recycling methods in jeans production but converted its Epping factory in South Africa to 100% recycled water sourced from wastewater treatment facilities. Once companies are aware of their water risk, they should devise a strategic response. This involves assessing the ongoing and future impact of climate change on water availability and quality. Tools like WRI's Risk Atlas can help, but often, more granular insights are needed.”
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Circular Economy | Leadership for Better World | Project Portfolio Management Executive |Program Director | Risk Management | Asset Management | Major Infrastructure Delivery | Water Professional | Eng Executive |
We can't afford to ignore water risks. Future wars will happen for water and not for land or petrol. Without a doubt, Australia is the driest continent on the planet Earth and hence we must conserve and protect our natural water resources. #waterrisks #drought #challenges #watercontamination #insights #potablewater #starvation #commodity #waterpollution #conserve #driest #australia Engineers Australia Australian Water Association International Water Association Project Management Institute Australian Institute of Company Directors
Solving water and wastewater treatment problems to maximize sustainability and compliance | Decentralized wastewater, re-use & PFAS solutions enthusiast
60% of U.S. companies believed water-related issues would negatively impact them. That’s the key insight from a 2014 report by Pacific Institute and VOX Global. Yet, despite these concerns, most companies had no clear strategies to address water risks. Even more telling, 80% expected water challenges to influence future site locations—a significant jump from just 20% in 2009. It’s easy to see why this gap existed. The U.S. has historically operated with the assumption that water is abundant, leaving businesses with little urgency to plan ahead. Today, that complacency is no longer affordable. Ceres’ 2023 benchmark report shows that while companies have made progress—75% now have time-bound goals for reducing water use—critical gaps remain. Only 17% of these companies are addressing water quality, even though pollution in already strained freshwater resources is increasing. The financial impact of inaction is growing. Water-related disruptions, such as droughts and polluted sources, caused companies to lose $38.5 billion globally in 2018, and stranded assets in industries like energy, coal, and mining reached $13.5 billion by 2022. The consumer staples sector, reliant on agriculture, could face losses of up to $200 billion as water scarcity drives crop failures and price volatility. It’s not just operational risk businesses need to consider; the reputational stakes are high. Companies operating in water-stressed regions are under intense scrutiny from both consumers and local communities. In a future where 1.6 billion people may lack safely managed drinking water, failing to align with sustainable water management could render certain products undesirable in key markets. Water risks go hand-in-hand with other environmental challenges, such as climate change and biodiversity loss. Managing water effectively isn’t just about reducing consumption—it’s part of a broader strategy to protect ecosystems and secure long-term resilience. Apple is one example, focusing water management efforts on specific high-risk areas. Still, fewer than 35% of companies fully integrate local watershed conditions into their planning, suggesting that many are falling behind. Global water demand is projected to exceed supply by 56% by 2030. The cost of ignoring these risks? Eighteen times higher than taking proactive measures today. The companies that act now will gain a competitive edge.
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Water risk can lead to financial consequences for businesses, but there are proactive measures they can take to mitigate short-term and long-term risks. In this article for Forbes, our CEO, Himanshu Gupta, outlines strategic considerations businesses can take to navigate their way through water risk and resilience. 🌐 Tackling water scarcity by assessing operational and sourcing regions 📈 Using predictive analytics to anticipate availability and manage resources effectively 🤝 Taking collective action for sustainable water management and corporate policy 💧 Adopting climate resilience tools for proactive planning and implementation of water conservation measures, risk mitigation strategies, and sustainable practices 🏆 Leading with water stewardship and emerging as a sustainability champion For more information on how your business can take action today: https://lnkd.in/eZeedwKS #ClimateAi #WaterScarcity #ClimateResilience #Sustainabiliy #Adaptation
Council Post: A Thirst For Change: Navigating Businesses Through Water Risk And Resilience
forbes.com
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Solving water and wastewater treatment problems to maximize sustainability and compliance | Decentralized wastewater, re-use & PFAS solutions enthusiast
60% of U.S. companies believed water-related issues would negatively impact them. That’s the key insight from a 2014 report by Pacific Institute and VOX Global. Yet, despite these concerns, most companies had no clear strategies to address water risks. Even more telling, 80% expected water challenges to influence future site locations—a significant jump from just 20% in 2009. It’s easy to see why this gap existed. The U.S. has historically operated with the assumption that water is abundant, leaving businesses with little urgency to plan ahead. Today, that complacency is no longer affordable. Ceres’ 2023 benchmark report shows that while companies have made progress—75% now have time-bound goals for reducing water use—critical gaps remain. Only 17% of these companies are addressing water quality, even though pollution in already strained freshwater resources is increasing. The financial impact of inaction is growing. Water-related disruptions, such as droughts and polluted sources, caused companies to lose $38.5 billion globally in 2018, and stranded assets in industries like energy, coal, and mining reached $13.5 billion by 2022. The consumer staples sector, reliant on agriculture, could face losses of up to $200 billion as water scarcity drives crop failures and price volatility. It’s not just operational risk businesses need to consider; the reputational stakes are high. Companies operating in water-stressed regions are under intense scrutiny from both consumers and local communities. In a future where 1.6 billion people may lack safely managed drinking water, failing to align with sustainable water management could render certain products undesirable in key markets. Water risks go hand-in-hand with other environmental challenges, such as climate change and biodiversity loss. Managing water effectively isn’t just about reducing consumption—it’s part of a broader strategy to protect ecosystems and secure long-term resilience. Apple is one example, focusing water management efforts on specific high-risk areas. Still, fewer than 35% of companies fully integrate local watershed conditions into their planning, suggesting that many are falling behind. Global water demand is projected to exceed supply by 56% by 2030. The cost of ignoring these risks? Eighteen times higher than taking proactive measures today. The companies that act now will gain a competitive edge.
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SDG 6 - Ensure availability and sustainable management of water and sanitation for all. Access to water enables health, and safety. In many parts of the world, access to water or sanitation facilities is not safe. For those of us, privileged to have safe access to water, let's focus on reducing water consumption. What is your organisation doing to manage water consumption effectively and efficiently? How about risks of waste water? Reach out if you want to explore ESG solutions to enable your organisation to be planet friendly. #esg #grc #water
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Drowning Supply Chains : A Warning Tale Strewn with Irony Try dipping threads of a fabric in a large container of water. The threads will spread apart. This is exactly a real risk that the fabric of complex global supply chains is susceptible to. According to a recent CDP report, at least $77 billion is vulnerable to water-related supply chain risks. In their study of over 3000 large companies with a revenue exceeding $250 million, they warn that about $7 billion is at an immediate risk of water-related losses. If we scale it in lieu of the fact that the demand for water is estimated to rise 30% by 2050, we can see the large-scale trouble facing the global economy. Despite this, half of large corporations are still not working with suppliers to address worsening water scarcity. Patricia Calderon, CDP's global head of water, said, “The data is telling us our water supplies are becoming ever more fragile and the financial toll is mounting up. It's down to large companies with the biggest water impacts to take immediate action, working with their suppliers to stem the tide of water risk.” An immediate paradigm shift in existing economic perception and governance measures of water as a vital and scarce resource is the need of the hour. And this needs to come from the large corporations. Incentivizing suppliers for water positive behavior and water stewardship practices needs to become a part of the corporate culture and we at AqVerium are helping build this ecosystem. Without such measures, the global supply chains will drown, only because of the absence of water! Head over to https://lnkd.in/dXXbfUFh to read more about this crisis. #EarthDay #ClimateAction #Sustainability #corporatesforclimate #watercrisis Dr.Subramanya Kusnur | Vinay Rao | Sridhar C | Shravan Shetty| Shailesh Haribhakti [GCB.D] | Ramanan Ramanathan | Rajdeepak das | Ayshwarya Sharma | Ajay Bhan Singh | AquaKraft Ventures
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Advancing Corporate Sustainability, CSR and ESG Integration - through Science-Based Solutions, Partnership Eco-Systems and Policy Transformations
💧 Water Risk is the New Bottom Line: Can Your Supply Chain Keep Up? 💧 Water risks are becoming critical business risks, and companies can no longer afford to overlook them. The 2024 CDP report emphasises the need for proactive water management in supply chains to avoid disruptions and missed opportunities. However, most companies are still failing to take meaningful action, with a significant gap between acknowledging risks and implementing solutions. To create resilient supply chains and safeguard the future, more robust policies and supplier incentives are essential to drive real change across industries. Browse through and take in the insights from 3000+ companies. #WaterRisk #Sustainability #SupplyChain #ClimateAction
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The United Nations predicts that 5 billion people may experience water shortage by 2050. With rising demands, diminishing water quality, and the effects of climate change, managing freshwater sustainably is more crucial than ever. In tackling this crisis, it is vital to take an integrated, sustainable approach by considering the world's water cycle, managing water efficiently and focusing on achieving net water positivity. In collaboration with global stakeholders, TÜV SÜD led the technical development of international standards for off-grid sanitation and now provides unique expertise in helping sanitation innovators ensure their technologies are safe, efficient, effective, and market-ready. The set of standards along with a company partnership provide an actionable step towards SDG 6, achieving clean water and sanitation for all. Today, we aim to drive Net Positive Water Impact (NPWI) through integrated water management solutions, building water-resilient value chains, supporting our customers' organisational values and achieving their sustainability goals. Let’s work together towards a healthier, more sustainable future for all. 💙 #WorldWaterDay #SustainableFuture #tuvsud
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With $77 billion under threat due to water risk in supply chains, it's time large companies start engaging with their supply chains on water risks 💸 The CDP is calling for major companies to take immediate action on water issues in their supply chain to assess risks, set targets, incentivize executive action, and include water in supplier requirements. This risk is due to urgent water scarcity, food, regulatory and reputational issues 💧 What can you do to minimize risk to your supply chain? Follow the CDP's recommendations to include water management not only within your own organization, but across your supply chain. ➡️ For more details, check out the full report here: https://hubs.ly/Q02vKtzv0 #waterrisk #supplychains #watermanagement #aquacycl
Water now a major risk for world’s supply chains, reports CDP - CDP
cdp.net
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