Risks of Water Scarcity: A Business Risk for Financial Institutions

This report notes that the potential risks associated with water scarcity “have become an emerging risk of strategic importance to businesses and their financial backers around the world. This is becoming even more important with rapid globalization within the business supply chain. Therefore, a business case for strategically addressing water challenges is getting stronger.”

The report acknowledges that “While each organization must relate to water in its own capacity, the business case for the financial sector will come from acknowledging the potential risks associated with water scarcity and its potential effects on how they do business, thus encouraging them to seek innovative solutions for mitigating these risks.”