This report examines the role of companies in building a water-secure world. The cost of water risks to business could be over five times greater than the cost of taking action now to address those risks, according to a new report by CDP, a non-profit that runs the world’s environmental disclosure platform. The report finds that the companies disclosing through CDP’s water security questionnaire in 2020 risk losing up to a combined US$301 billion in business value if they do not address water risks, and estimate the total cost of addressing these risks at US$55 billion – less than one fifth of the amount.
Further key finds of the report include:
- The cost of inaction is over five times the cost of action.
- A water-secure world requires companies to rethink their strategies and transform their business models.
- Almost two-thirds of responding companies are now reducing or at least maintaining their water withdrawals.
- Despite the pandemic, in 2020 we saw a 20% increase in corporate disclosure through CDP’s water security questionnaire.