This presentation takes a close look at the data and methodology behind WRI’s brand new Aqueduct water risk mapping tool which includes 12 new indicators of water-related risk.
At the World Economic Forum in Davos two weeks ago, I was struck by how often the issue of water risk was raised by business executives. As the global economic turmoil is receding, many CEOs and global leaders are turning to other threats—and water is high on the list. For the second year in a row, water crises were named among the top four global risks at the WEF.
It’s easy to see why. More than 1.2 billion people already face water scarcity. By 2025, two-thirds of the world population will experience water stress. That’s largely due to population increase and climate change, but also behavior patterns: Water use grew twice as fast as population growth in the 20th century. The “food-water-energy nexus” was one of the top four megatrends to watch in the recently released Global Trends 2030 report by the U.S. National Intelligence Council.
CEOs increasingly recognize that water is essential for their business models and economic growth. Disrupted availability of affordable, clean water leads to business interruptions, increased commodity costs, and reduced earnings. The extreme drought gripping much of the United States is likely to cost up to one percent of GDP, potentially making it the costliest natural disaster in U.S. history.
Some people say that water is the oil of the 21st Century. If only water were that simple.
Water is very complicated. It’s affected by large-scale issues like climate change and globalization. International commerce moves virtual water (the water it takes to grow or produce a product) from farms in Brazil to grocery stores in China and Egypt.
But water is also inherently local, impacted by site-specific weather, geography, and other environmental and land use conditions. Managing and using water, then, requires understanding it in its full geographic context.
Today, WRI is launching its new Aqueduct mapping tool to do just that. Aqueduct provides businesses, governments, and other decision makers with the highest-resolution, most up-to-date data on water risk across the globe. Armed with this information, these decision-makers can better understand how water risk impacts them—and hopefully, take actions to improve water security.
This piece originally appeared on The Guardian's Sustainable Business website.
As another year begins, big business will continue falling well short of taking the leadership role on the sustainability the world urgently needs. While many chief executives now publicly identify sustainability as a key issue for their companies, walking the talk is proving more elusive.
Successful bosses do not procrastinate. So why are boardrooms dragging their feet as sustainability challenges that have an impact on the private sector mount? As an observer of business trends for two decades, I see two interlinked problems hindering progress: first, corporate failure to embed sustainability into core business strategy, treating it instead as a standalone issue. And second, the lack of tools that allow corporations to make this leap in their day-to-day operations.
This post originally appeared on Forbes.com.
Two-hundred page policy reports don’t normally sit on a CEO’s bedside table. But the U.S. National Intelligence Council’s (NIC) wide-ranging new assessment of what the world will look like in 2030 is essential reading for smart, forward-looking corporate leaders.
Most international media attention around Global Trends 2030, produced every four years, has focused on its geopolitical analysis—rising China, plateauing United States, and potential failing states. But the private sector should pay careful attention to the megatrends the report highlights. Many relate to the profound sustainability challenges facing a warming world that will house around 8 billion people in 2030.
Below is my take on how four of these trends—resource scarcity, a booming global middle class, the rural-to-urban transition, and transformative information and communications technology—will impact businesses, and why corporate leaders should start preparing today.
When it comes to overseas development finance, China is definitely a country to watch. Due to the country’s unprecedented economic growth, China’s overseas investments have increased exponentially in recent years.
Sarah Cohen, an intern with WRI's Markets and Enterprise Program, also contributed to this blog post.
Do you have colleagues who roll their eyes when they hear the words “environment” or “sustainability?” The sad truth is that environmental issues are not always a passion for everyone at every organization. However, climate change and other environmental challenges are shaping tomorrow’s markets—so how do you draw connections between sustainability and business value for those who may not see it right away?
Today, WRI is releasing a guide to address this question and many more related to corporate sustainability. The guide—which was road-tested this summer by a dozen major companies like Target, Method, and Staples—adds a sustainability component to the traditional Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis that corporations have relied on for more than 50 years. Our sustainability SWOT, or “sSWOT,” is designed to help corporate sustainability champions engage colleagues, customers, suppliers, and even competitors to identify links to business risks and brainstorm new business opportunities.
This story is part of the “Aqueduct Sneak Peek” series. Aqueduct Sneak Peek provides an early look at the Aqueduct team’s updated global water risk maps, which will be released in January 2013.
New reports and articles are increasingly pointing to water risk as one of the biggest issues associated with climate change, energy production, food security, and human health. In an effort to better understand how and where these water risks are emerging, WRI published the first-ever Aqueduct water risk map two years ago.
Today, the need for better information on where and how water can create risks for companies, investors, and communities is more apparent than ever. To address this need, the Aqueduct team has been working with our hydrological modeling partner, ISciences, on producing a brand new set of global maps of water risk.
We’ll make this new data available in January 2013. A few of the improvements and refinements that make these new Aqueduct global maps the best available picture of water risk around the world include:
Superstorm Sandy and the subsequent Nor’easter were the biggest news this week and last. The combination of two powerful forces resulted in unprecedented and widespread damage. Our thoughts are with those who have been impacted.
I can’t help but draw the connection between our recent extreme weather and businesses today—corporations are increasingly recognizing that they, too, are navigating two powerful forces. One force demands financial results, while the other requires increasingly sophisticated techniques to respond to climate, energy, resource scarcity, and other sustainability risks. The ways businesses navigate both these forces will determine whether they are truly viable over the long-term.
3 Pioneering Businesses Focused on Profits and Environmental Stewardship
On the eve of Hurricane Sandy, I moderated a Net Impact conference panel titled “Driving Bolder Investments in Sustainability.” This panel brought together representatives from Waste Management, Intel, and Pepsi to discuss how sustainability is no longer an add-on, but is becoming core to business planning. These three companies are incorporating environmental initiatives in order to shield themselves from business risk and boost their profits.
At last week’s Net Impact conference, WRI challenged teams of attendees to come up with what was essentially a “mashup” of megatrends and environmental challenges. The teams then engaged in a friendly competition to see who could create the most innovative corporate sustainability strategies for a hypothetical company modeled after LEGO.
The teams began by looking at global environmental challenges (like clean energy, climate change, and waste removal); then connected these hurdles to other big trends (such as urbanization and social inequality); and finally, assessed strategic actions for the model company. The result was a handful of very clever corporate sustainability strategies. One team suggested that 3D-printing and materials science could enable the company to produce toys in growing markets using bio-based plastics, thereby reducing shipping costs and greenhouse gas emissions. Another team thought that creating visual instruction guides could help overcome language barriers and promote affordable green building design and construction. And the winning team proposed partnering with companies like Coca-Cola and non-profit organizations like 5 Gyres to reuse plastic waste in the world’s oceans (similar to what Method and United by Blue are currently doing).
The proposals varied greatly, but all the teams had one thing in common: They used WRI’s new Sustainability SWOT (sSWOT) as a guiding framework to shape and communicate their strategies.