Water risk is a growing operational and strategic threat investors may be overlooking. The water crisis in the United States has been brewing for decades, but it took on new urgency after Hurricane Katrina devastated New Orleans in 2005. Water resources, already at risk in a more climate volatile world, are also under growing threat from pollution, a rising global population, and skyrocketing water competition from growing cities, power generation and food production needs. Water security risks can impact a company overnight. Recent examples include competition for water in India forcing Coca-Cola to shut plants and halt expansion plans. Additionally, Newmont had to delay its $5bn mining project in Peru over water fears while BHP and Vale are facing a $48bn fine due to compensation claims over water.
Water risk is a growing operational and strategic threat investors may be overlooking. The water crisis in the United States has been brewing for decades, but it took on new urgency after Hurricane Katrina devastated New Orleans in 2005. Water security risks can impact a company overnight. Recent examples include competition for water in India forcing Coca-Cola to shut plants and halt expansion plans. Additionally, Newmont had to delay its $5bn mining project in Peru over water fears while BHP and Vale are facing a $48bn fine due to compensation claims over water.