CDP, the global non-profit group running the disclosure system that shows how companies manage their environmental impacts, published the first global assessment of corporate efforts in tackling water security on October 22.
The new global water report, ‘Accelerating action’, highlights the companies achieving an A rating for their actions to address water security.
Over 400 companies operating in the most water dependent or vulnerable industry sectors have been evaluated on their disclosed water management practices by CDP and South Pole Group.
Drawing on the most comprehensive dataset of publicly available corporate water information collected on behalf of investors, the evaluation has considered each company’s water risk assessments and response strategies, and how these are factored into business planning.
According to the report, more than half (53 per cent) of companies are failing to conduct a comprehensive risk assessment – a basic first step for any company seeking to ensure business resilience against water issues. The industries most exposed to water risk are consumer staples (82 per cent) and utilities (75 per cent) - also due to the close links between water and climate change. Other sectors evaluated in the report included consumer discretionary, energy, healthcare, industrials, information technology and materials.
“Acting as CDP’s scoring partner has offered us unique insights to the current global state of corporate water management”, says Renat Heuberger, CEO at South Pole Group.
“Building on both our long-standing knowledge in climate change mitigation interventions and close work with CDP, we can firmly conclude that a water stewardship approach offers clear benefits to companies, especially to those most at risk. It is now up to companies to capitalise on these opportunities and get ready for a water-scarce future.”
CDP has included eight businesses from four sectors in the CDP Water A List based on their approach to water management. The A List emphasises those companies that are making progress to manage water resources in a sustainable way. These eight companies take action to mitigate corporate water risk and realise opportunities in ways that not only reduce their own impacts, but critically improve water security for the environment and other water users.
The report highlights how businesses pursuing robust water stewardship are able to identify and mitigate water risks, whether they are physical, regulatory or reputational. No fewer than 73 per cent of the responding companies outlined that water offers operational, strategic, and/or market opportunities, with many sectors showing significant business opportunities to be realised in the next three years.
This dataset and CDP’s global water report can be found here.
The eight companies on the CDP Water A List in 2015 are:
- Asahi Group Holdings, Ltd (Japan)
- Colgate Palmolive, (US)
- Ford Motor Company, (US)
- Harmony Gold Mining Co.Ltd, (South Africa)
- Kumba Iron Ore, (South Africa)
- Metsä Board, (Finland)
- Rohm Co., Ltd, (Japan)
- Toyota Motor Corporation, (Japan)
About South Pole Group
The Zurich-based South Pole Group began as a project-driven company focused on developing and selling high-quality carbon credits. Today, it is the world’s leading provider of climate solutions. No other firm in the world has developed as many successful emission reduction projects. No other company offers as rich a suite of services and solutions. South Pole Group helps public and private sector organisations develop climate proven policies and strategies. Areas of expertise cover every key sustainability-related area of climate change, including but not limited to: forests & land use, water, sustainable cities & buildings, as well as renewable energy and energy efficiency. For more information, visitwww.thesouthpolegroup.com or follow the company@southpolegroup.
Dr. Thomas Schroder, Director Marketing and Communications, South Pole Group
+612 9356 3600