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.
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.
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.
In partnership with WWF, the PRI developed an engagement framework to facilitate investor dialogue with companies on managing their agricultural supply chain water risk.
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
Case study by Constantina Bichta, Boston Common Asset Management
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.