CorpComms Magazine

The world's biggest publicly quoted companies are disclosing more information on water risk than ever before but there are still gaps in water reporting, according to the latest Water Disclosure Global Report 2011 released today by the Carbon Disclosure Project (CDP).

The report's authors claim that water is already affecting global businesses, yet it remains lower down the corporate agenda than climate change. Far fewer boards of directors have oversight of water-related issues compared to those for climate change, says the report.

Slightly more companies view water as a business opportunity (63 per cent) than a risk (59 per cent). The opportunities range from the savings achieved by using less water to launching potential new product lines and services. Nearly 80 per cent of those asked think those opportunities will impact their business in the next five years.

Many companies say they have little visibility into their supply chains for water risk. Nearly 40 per cent can't say whether their supply chains have any exposure to water-related risks. One quarter of respondents disclose supply chain risks, compared to 55 per cent who disclose risks in their direct operations.

'The companies that succeed will be those that consider water with the strategic importance it deserves and take steps to transform their business now,' commented Paul Simpson, chief executive of the CDP.

The information was acquired by way of information requests from the CDP's membership of more than 350 institutional investors sent to their portfolio companies.

Nearly two thirds of the companies in the CDP's Global 500 responded to the disclosure information request, up from 50 per cent in 2010.

The 2030 Water Resources Group predicts that the demand for water will outstrip supply by 40 per cent by 2030 and that closing this gap could cost as much as $50 to $60 billion (£30 to £40 billion) a year for twenty years.

share me: del.icio.us | digg | reddit | Tweet