Water

Water is a finite and shared resource. As well as being a basic human right and fundamental to healthy ecosystems, water is vital to the functioning of the global economy. However, increasing demand and competition, climate change and pollution are putting pressure on global water resources, creating risks for business and society. This in turn generates risks and opportunities for investors.

Water risk in agricultural supply chains

Climate impacts and competition for water affect agriculture, the world’s largest user of water. Consequently, companies with direct operations and supply chains that are dependent on agriculture are exposed to water risks.

Those companies that appropriately mitigate these risks and demonstrate good water stewardship characteristics will create value for their shareholders.

growing water risk2

Growing water risk resilience: An investor guide on agricultural supply chains

Global investor portfolios are increasingly exposed to water-related risk.

Collaborative engagement

The PRI coordinated an engagement with investors representing nearly US$6 trillion to have global, listed companies better disclose and manage water risks in their agricultural supply chains.

Investors focused on the food, retail, beverage and textile sectors, which rely on agricultural inputs from water-scarce regions.

More information on the engagement and research conducted on agricultural supply chain water risk can be found here.

A summary of the results can be found here.

water risks

Water risks in agricultural supply chains

2014-07-01T14:41:00+01:00

Global fresh water supplies have become increasingly exposed to risk as a result of both growing demand, and pressures on supply, including those linked to climate change.

The PRI launched phase two of the collaborative engagement on water risks in agricultural supply chains, focusing on the laggard companies identified in phase one.

Engagement framework

water engagement framework

An engagement framework for water risks in agricultural supply chains

In partnership with WWF, the PRI developed an engagement framework to facilitate investor dialogue with companies on managing their agricultural supply chain water risk.

Investor collaboration to engage on water risks in agricultural supply chains

2018-03-08T11:40:00+00:00

Case study by Kristel Verhoef, ACTIAM; Nadira Narine, Interfaith Center on Corporate Responsibility; Peter van der Werf, Robeco; and Mary Beth Gallagher, Tri-State Coalition for Responsible Investment

Long-term engagement on water risk management in the supply chain

2018-03-08T11:37:00+00:00

Case study by Constantina Bichta, Boston Common Asset Management

Applying the Corporate Credit Water Risk Tool

2018-03-08T11:31:00+00:00

Case study by Peter van der Werf, Robeco

Managing water risks to mitigate community concerns

2018-03-08T11:16:00+00:00

Case study by Jeff Marsh and Rob Wilson, MFS Investment Management

Podcasts logo

Why should investors care about WASH?

2018-06-07T15:44:00+01:00

Marc Robert (Water Asset Management & Chair of WaterAid America) and Michael Alexander (Diageo) join the PRI’s Gemma James to explore how water, sanitation and hygiene (WASH) issues in company operations and supply chains affect investors and why investors should engage on the topic.