By 2030 global demand for water will exceed supply by 40%. What does this mean for business and climate action? Find out more in CDP’s Thirsty business report.

Now in its seventh year, CDP’s water program acts on behalf of 643 institutional investors, representing US$67 trillion in assets. These investors use CDP water data to engage with portfolio companies, inform investment decisions and catalyze change. 

 

On behalf of our investor signatories, this year we asked 1,252 of the largest global companies, an increase on the 1,073 companies approached last year, to provide data about their efforts to manage and govern freshwater resources. We selected these companies from the MSCI All Country World Index, based on economic and environmental criteria. In total 607 companies, or 48% of those targeted, responded to our investor-backed request for data – up from 405 (38%), last year. 

 

This report summarizes and analyzes the disclosures made through the 2016 information request. It is aimed at companies facing water risks and opportunities, and investors seeking to better understand how water issues might impact their portfolios. 

 

In particular, this year’s report and the underlying data analysis aim to shine a light on the linkages between water, energy and private sector efforts to reduce carbon emissions. Many of the most serious impacts of climate change will be felt through water scarcity or flooding from extreme weather events or sea-level rise. Further, a stable supply of water is vital for many of the technologies that will help to dramatically reduce emissions. Water stewardship is an imperative not only for its own sake, but also to enable an effective response to climate change.