Water risk scenarios: TCFD-aligned scenarios to help companies and investors turn risk into resilience

The aim of this brief is to provide an overview of the new WWF Water Risk Filter scenarios and guidance on how scenario analysis can help companies and investors to understand future water risks and build resilience in an uncertain future. 

With water stress increasing due to climate change and soaring demand for water from expanding populations, urbanisation and economic development, companies and investors are increasingly concerned about how water risks may potentially impact their operations, supply chains and investments – now and in the future.

Key recommendations on the use of scenarios:

•  Understand the assumptions behind scenarios
• Context matters -- understand the drivers of risk change
• Identify the challenges for adaptation 
• Risk exposure is only half of the story –- evaluate resilience to inform planning and strategy
• Hope for the best, prepare for the worst
• Scenario analysis is not a stand-alone excercise
• Build resilience with Nature-based Solutions and collective action