Corporate Water Use Measured For the First Time
New tool emerging for investors to gage long-term viability of investments
TORONTO Water is emerging as a long-term investment risk and opportunity for corporations according to a new UK study, Carbon Disclosure Project Water Disclosure.
The study measures water-use similar to the way carbon emissions have been measured over recent years. The findings allow investors to compare water data between global corporations to identify risks and opportunities in the marketplace.
An investment risk that the CDP Disclosure has uncovered, for example, is that only 53 per cent of the world’s 150 largest companies were able to identify if their supply chains are exposed to water uncertainty. In an increasingly globalized and water scarce world, many companies will be affected by water regulations and shortages far beyond their own facilities.
CDP Water Disclosure also highlights emerging corporate prospects. Sixty-two per cent of respondents identified significant water-related opportunities, including an expanded market for water treatment technologies and a growing demand for water infrastructure.
“Canadian investors need to recognize that the investment climate is shifting and is becoming increasingly impacted by changing environmental metrics,” said Anthony Watanabe, CEO and founder of The Innovolve Group and the annual Canadian Water Summit. “Being equipped with the tools to understand water risk and the knowledge to recognize burgeoning water opportunities will be a competitive advantage for investors in the next decade.”
Making data available to enable investors to direct the flow of capital away from risks and toward sustainable solutions is the key goal of CDP Water Disclosure. As water supplies around the world become uncertain, measuring and managing water risk will become critical.
CDP Water Disclosure will bring its message to Canada for the first time at the Candian Water Summit on June 14th, where corporate and government delegates will have the opportunity to learn more about measuring and managing water risk.