A new report released today by non-profits CDP and Planet Tracker reveals how financial institutions are exposed to significant risks posed by depleted and contaminated water supplies.

  • US$2.5 trillion pumped into water-intensive companies over past decade.
  • One-third of listed financial institutions not assessing exposure of their activities to water issues.
  • New report highlights US$13.5 billion already stranded and over US$2 billion at risk on major infrastructure projects.

The analysis, the first-of-its-kind, shows how global companies in key industries are already losing billions as a result of the global water crisis.

By focusing on four sectors, oil & gas, electric utilities, coal, and metals & mining, the report found that US$13.5 billion in assets are already stranded and US$2 billion at risk due to water issues.

Changes in water-related regulations, high levels of pollution, and community opposition were all cited as drivers for these stranded assets. The United Nations has predicted a 40% global shortfall in water supply by 2030 on current trends.

Analysis of data from CDP’s 2021 water security corporate dataset found that while the four sectors are largely factoring in water risk, the oil & gas industry stood out by providing fewer responses to the problem.

The full report can be read here.

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