Water is the lifeblood of the global economy. In 2012 CDP Global Water Report calls for action to understand the business risk from water related issues and implement strategic plans to help mitigate these risks and emphasizes the role companies should play in mitigating risks.

There is a sharp rise in company reports of detrimental impacts from drought and other water-related issues, yet little change in the number of companies with board level oversight of water strategies and no increase in the number of corporations providing transparent water-related risk assessments to investors. These are some of the key findings from global analysis of the largest listed companies released today by the Carbon Disclosure Project (CDP).

However, despite increased awareness and activity among some respondents, the Global 500 response rate is static at 60% (191 companies); disappointing given the weight of investor interest in this issue and the increasing proportion of companies reporting water-related impacts, risks and opportunities. The Health Care sector has the highest response rate (77%) while Energy lags for the 2nd year running at just 44%; surprising considering this sector reports the highest exposure to risk.

This report is based on analysis of 185 responses received by August 6, 2012 and investigates how companies are using collaborative approaches to solving some of the most complex water-related problems.

This year’s respondents indicate that collective action will continue to be featured prominently in companies’ water strategies and, in turn, overall business strategies. As the strategic importance of water-related issues grows it is anticipated that more Global 500 companies will leverage collective action in response.

CDP Global Water Report is available to download from here.