The world’s biggest companies are failing to adequately manage the substantial water risks they face, according to a new study from EIRIS, an independent research firm specializing in environmental, social and governance (ESG) performance of companies around the world.
Of 2,000 global companies included in a recent survey, 54% are exposed to water risks, however, only 0.22% have sufficient management policies in place.
The majority of global firms are woefully unprepared to face the water challenges of the future, particularly in the oil & gas, mining, semi-conductor and agriculture industries.
Water demand is estimated to outrun supply by 40% by the year 2030, which will only make these problems worse.
“The era of cheap and easy access to water is coming to an end for companies,” said Randeep Sanghera, lead water analyst at EIRIS. “This poses a potentially far greater threat to business than the loss of other natural resources, including oil, yet the majority of companies and investors remain unaware of the risks they face.”