@Risk

In the second annual Carbon Disclosure Project (CDP) Water Disclosure Global Report released last week, more than half (59 percent) of the companies surveyed said they are exposed to water-related risks such as flooding, scarcity and reputational damage.

What’s more, almost four in 10 (38 percent) already have experienced water-related business impacts, including disruption to operations from severe weather events (e.g., flooding) and water shortages.

And companies described most of their water risks as near- term. Nearly two-thirds (66 percent) of risks in the supply chain and 64 percent of risks in direct operations were identified as occurring between now and 2016.

But even so, the report also found that only 57 percent of the 190 publicly listed organizations that participated in the survey implement board-level oversight of water policies, strategies or plans. By comparison, a report released by CDP in September 2011 showed that 94 percent of Global 500 companies report board-level oversight of climate change.

Why the gap? While it’s encouraging to see that awareness about water risks is on the rise, it’s also clear that companies need to strengthen their oversight of water-related issues –particularly in the supply chain. The CDP report revealed that more than one-third of companies (38 percent) are unaware of whether they are exposed to water risk in their supply chains. In the Consumer Discretionary sector, which is dominated by industries that are particularly exposed to supply chain risk (e.g., retailers, hotels, resorts, and automobile manufacturers), that percentage rose to 41 percent.

The report also found that: (more…)

Water is one of our most important natural resources, and it is quickly becoming a significant business growth and development risk. Climate change, population growth and increasing living standards are the culprits, each contributing to rising pressure on already scarce water resources.

Investors are beginning to take note, as it becomes more and more clear that sustainable water management is needed to mitigate business risks and help ensure access to sufficient quality and quantity of water supplies.

A new report by WWF and German development bank DEG contains some sobering news. According to DEG and WWF, 191 out of 319 companies studied as part of the report showed high potential business risks related to freshwater. These risks break down into three broad, inter-related categories: (more…)

Companies throughout the world are becoming increasingly concerned about the quality and quantity of the water resources that support their business processes. So, it’s no surprise that we are starting to hear more and more about ways that organizations are working to mitigate water risks in their supply chains.

Just last week, San Francisco-based Climate Earth launched what it calls “the first cradle-to-gate solution for managing direct and indirect water usage.” According to the company, this environmental business intelligence system provides: (more…)

Changing weather patterns are becoming increasingly relevant to corporate risk assessments, and yet a newly released study found that the current availability of, and access to, climate change information remains insufficient, both in format and quality.

The report, sponsored by the German Federal Ministry of Education and Research, presents the results of an international survey undertaken by the Climate Change Working Group (CCWG) of the United Nations Environment Programme Finance Initiative (UNEP FI) and the Sustainable Business Institute (SBI), Germany. All told, 60 institutions –from both developed and developing countries across six continents –were polled.

The survey focused on financial service providers because these institutions have expressed a need for more and better climate change information so that they can enhance risk management within their industry. In addition, financial service providers also play a key role in accelerating the implementation of adaptation measures by the private sector more broadly.

Only one-third of those polled felt “sufficiently informed” about climate change, and more than 80 percent said what they need most is interpretation of the quality of climate predictions.

According to SBI, the gaps in the availability of information that were identified in the survey can be closed by: (more…)

Rare earth elements are essential for the manufacture of a variety of today’s new technologies, ranging from computer hard drives and precision-guided munitions to critical components of the clean energy economy.

These days, clean energy technologies –such as hybrid-electric batteries, wind turbines, solar cells and energy-efficient lighting –constitute about 20 percent of global consumption of rare earths. However, as these technologies become increasingly popular, their share of global consumption will continue to grow.  As a result, it’s no surprise that the US Department of Energy is keeping a careful eye on the global supply of rare earths.

Last week, the DOE released its Critical Materials Strategy, a report that analyzes fourteen elements and identifies five rare earth metals (dysprosium, neodymium, terbium, europium and yttrium), as well as indium, as the most critical based on importance to clean energy technologies and supply risk.

The report also explores eight policy and program areas that could help reduce vulnerabilities and address critical material needs. According to DOE, these areas include: (more…)