Companies fail to see supply chain risks of water constraints

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Almost half of big companies are unaware of the risks that water availability could pose to their supply chains, according to a report by CDP Water Disclosure, a new programme from the Carbon Disclosure Project.

Some 150 of the world’s largest companies responded to a questionnaire by CDP on the impact of water constraints to big business, and the subsequent report was prepared by Environmental Resource Management.

It found that just 53 per cent of companies surveyed were able to identify whether or not they are exposed to water risks in their supply chains.

However, 96 per cent were able to identify whether they are exposed to water risk within their own operations.

The report cites figures that demand for water has risen and is now projected to outstrip supply by up to 40 per cent by 2030, and found that more than half of businesses reporting risks classified them as current or near-term, 1-5 years.

It concludes that as global climates change, assuring water security will increasingly present demands for new infrastructure, products and services. But it will also bring risks including physical disruptions to operations and supply chains.

Gregory Wade, global chief supply chain officer for brewer Molson Coors, a lead sponsor of CDP Water Disclosure, said: “As we move forward, companies must accept the responsibility for their own transparency and join in this effort to help advance what will hopefully emerge as a common water reporting standard benefiting all stakeholders.”


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