Treading water: Corporate responses to rising water challenges

In 2018, 4,969 high impact companies were asked to provide data about their efforts to manage and govern freshwater resources through CDP. In total 2,114 companies responded, up from 1,432 in 2016.

This data is used by 650 institutional investors, representing US$87 trillion in assets to engage with portfolio companies, inform investment decisions and catalyze change. In addition, 44 purchasing organizations, with a combined spend of US$2 trillion, use CDP water security data to drive greater insight, accountability and action throughout their global supply chains.

This report presents analysis of the response data from a sample of 783 of the world’s largest publicly listed companies. The report is aimed at companies and investors seeking to understand how they can play their part in delivering a water secure world. This year, CDP analyzed a group of 296 companies who have been consistently responding to us over the last four years. Of this group, 75% now report water risk exposure, compared to 70% in 2015. The majority of risk reported are physical (76%), relating to water scarcity and declining water quality. Yet, despite almost a doubling of the number of companies setting targets to reduce water withdrawals over the four years, there has also been an almost 50% rise in the number of corporates reporting higher water withdrawals. This worrying trend holds true both for company wide withdrawals but also for those at sites facing substantial risks.