Importance of Improved Water Risk Metrics in Sustainability Reporting

The increasing scarcity and quality concerns of freshwater are emerging as significant risks for industries heavily reliant on this vital resource. Investors must be aware that disruptions in freshwater availability can have substantial financial implications.

Despite these challenges, the lack of standardized data hampers effective risk assessment. To address this, Calvert has developed a proprietary approach to evaluate water-related risks across sectors and companies.

They also advocate for unified corporate efforts to establish comprehensive water reporting standards akin to those used for Greenhouse Gas emissions, promoting better transparency and informed investment decisions.