Water shortages are an increasing threat to businesses warns a new report from WWF and Lloyd’s, one of the world’s leading insurers. This is especially true as populations increase and climate change takes hold.
The report notes that there is a real risk to company reputations, as businesses could be accused for overusing scarce resources at the expense of the environment or domestic users.
For producers and service sector businesses the report identifies two separate strategies to manage water risk:
- Producers should follow the ‘3 Ms’:
- measure their water risk,
- mitigate it,
- market themselves as leaders in water management
- Service sector business should follow the ‘3 Is’:
- consider water risks when identifying suppliers,
- influence suppliers to mitigate water use or meet set standards,
- consider water risks when making investment decisions.
‘Getting water management right underpins our ability to tackle many of the great challenges of the 21st century: economic growth, food security, energy security, reducing poverty, and adapting to a changing climate,’ WWF’s head of freshwater programmes, Dr. David Tickner, said.