Water Security
Through CDP, companies and capital markets can measure this impact to manage these risks and opportunities, report on progress with transparency, and commit to proactive action.
The world faces a water crisis which is already impacting the stability of the global economy. This crisis is a major financial risk to companies although it also serves as a significant opportunity. Acting on water can create new business models, products and services that bring future commercial value
The global context
of all water on earth is available for human use.
of the water used to produce goods and crops for the Global North is unsustainable.
shortfall of the available global water supply is expected by 2030, according to the United Nations. In many regions, companies can no longer rely on a stable supply of good-quality water to grow their business.
of the water, from rivers and aquifers, used within the external water footprints of high-income economies is unsustainable, driving resource depletion, ecosystem degradation, conflict and climate vulnerability.
The risks
countries are at risk of having unsustainable water resource usage by 2050, according to a 2021 Global Water Security & Sanitation Partnership report.
As competition for water intensifies, the World Bank predicts a growth rate decline equivalent to 6% of GDP by 2050.
is at risk according to companies disclosing water data through CDP in 2022.
The opportunities
A large, growing number of Capital Markets Signatories are expecting companies to respond and adapt.
To remain competitive, companies must learn how to do more with less and collaborate.
Companies can drive change faster than governments and it's in their direct business interest to act.
How does CDP help?
Financial Sector Water Knowledge Hub
Pulling together information and resources to support financial institutions (FIs) in assessing water risks and opportunities in their sustainability journey. This includes our latest briefing on why directors of FIs need to care about the water crisis.
CDP Water Watch
Water Watch is a first-of-its kind tool which ranks over 200 industrial activities within 13 industry sectors, according to their potential impact on water resources – both in terms of water quantity and water quality. This is the only analysis of this granularity that exists for assessing the relative impact of different industrial activities from companies’ direct operations, supply chain and product use on the world’s water resources.