November 8, 2013 — Are businesses responding appropriately to risk brought about by future water uncertainty? Yes and no, according to a new report from CDP and Deloitte. The CDP Global Water Report 2013 finds that although more companies are recognizing risks to their bottom line due to water stress, scarcity, quality, price and other reasons, their response is lacking, focusing too often on reducing use and reuse.

The report, titled “A need for a step change in water risk management,” is based on responses from 180 companies, including General Motors, Wal-Mart and General Electric. Recommending water stewardship as a road to water security, the report sees shortcomings between the amount of risk certain business sectors face and the response they have in place to address that risk. Take the energy sector, for example: Although 82 percent of respondents recognize risk to their direct operations due to water uncertainties, “only half of respondents report having board-level oversight of water issues and set concrete targets or goals.”

In a foreword to the report CDP CEO Paul Simpson draws a line between those companies that recognize risk and put in place concrete plans to address it and those that don’t, writing, “Investors and companies that understand the complexities of water and devise and implement a strategy that drives water stewardship will be the long term winners in an increasingly water stressed world.” Photo by pdorsey (Flickr | Creative Commons)