Gustavo Bernal Torres
High and Dry: How Water Issues Are Stranding Assets
Water insecurity is already impacting companies through the stranding of assets. CDP's report with Planet Tracker presents new research which highlights the deep implications for the global financial sector.
Global companies in key industries are already losing billions as a result of the global water crisis. The research shows how US$15.5 billion has been stranded, or is at risk. The report focuses on four case studies taken from key sectors with high levels of water usage: oil & gas, electric utilities, coal, and metals & mining.
Financial institutions are exposed to these risks through shareholding and lending activities. The new analysis shows the top 20 financial firms have provided US$2.5 trillion in bond, loan, and equity financing to some of the world's most water-impactful companies over the past decade. But many institutions are still unaware of the problem, with one-third reporting not to be assessing the exposure of their activities to water issues.