@Risk

Over the next few decades, US water resources are likely to be severely strained by the combined impacts of population growth, increases in power generation and climate change.

In fact, more than one in three of the 3,100+ counties in the US could face a “high” or “extreme” risk of water shortages by the middle of the 21st century, according to a new study in ACS’s Journal of Environmental Science & Technology.

The research also found that seven out of ten of the US counties could face “some” risk of shortages of fresh water for drinking, farming and other uses.

The study, Projecting Water Withdrawal and Supply for Future Decades in the U.S. under Climate Change Scenarios,  features a “water supply sustainability risk index” that includes water withdrawal, projected growth, susceptibility to drought, projected climate change and other factors in individual US counties for the year 2050. It also takes into account renewable water supply through precipitation using the most recent downscaled climate change projections and estimates future withdrawals for various human uses.

By using this water index, the research team was able to conclude that climate change could foster an “extreme” risk of water shortages that may develop in 412 counties in southern and southwestern states, as well as in southern Great Plains states. (more…)

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…)

Less than one in five companies see biodiversity as an important business issue, and only two out of the world’s largest 100 companies manage it as a strategic risk.

Yet, a new analysis by PricewaterhouseCoopers concludes that no sector or business in the economy will escape unaffected by changes to the availability of environmental resources for business and consumers.

The research, which was conducted as part of a landmark study by the UN Environment Programme (UNEP), puts the economic impact of biodiversity loss at between $2-4.5 trillion annually and says this impact will be felt in product pricing, availability of products and financing, and supply chain disruptions for consumers, business and government. For example, the study lists water used in food and drink production, timber for packaging, furniture and paper, productive land for fruit and vegetables, and fibers for clothes, as just some of the biodiversity and ecosystem ‘services’ whose economic value and protection are currently at risk. (more…)