ABSTRACT
Water is a resource everyone needs, but even in the face of scarcity few companies or investors have adequately valued water or planned for limited access. Limited or no access to water was once a distant concept to businesses; it has now become reality for many and a near-term challenge globally. The impacts of water stresses reach across sectors – all companies may face physical, regulatory, or reputational risks if they operate or rely on operations in any water-stressed area. Yet managed risks can become opportunities. Preparing for the reality of water stresses can position companies to reduce vulnerabilities and outperform competitors. When companies measure their water footprints and disclose this information, both companies and investors benefit. Companies can benchmark against their peers while providing material information to investors. Investors can make informed decisions that maximize returns by incorporating water risks and opportunities into their valuation methods.
