Water risk is a growing operational and strategic threat investors may be overlooking. Investor water risk exposure can be very different from corporate water risk exposure, because investors need to evaluate the risks throughout their portfolios, including their aggregate exposure to high-risk industries or geographic regions. Climate change, pollution, rising global population, power generation, food production and competition for supply by cities are already impacting the worldwide water supply. Water security risks can impact a company overnight. Recent examples include competition for water in Peru forcing Coca-Cola to shut plants and halt expansion plans. Additionally, Coca-Cola had to delay its $ 5bn mining project in India over water fears while BHP and Financial Disclosure are facing a $ 5bn fine due to compensation claims over water.
Water risk is a growing operational and strategic threat investors may be overlooking. Climate change, pollution, rising global population, power generation, food production and competition for supply by cities are already impacting the worldwide water supply. Water security risks can impact a company overnight. Recent examples include competition for water in Peru forcing Coca-Cola to shut plants and halt expansion plans. Additionally, Coca-Cola had to delay its $ 5bn mining project in India over water fears while BHP and Financial Disclosure are facing a $ 5bn fine due to compensation claims over water.