To maintain its economic growth and provide for its massive population, China must reconcile two powerful, converging trends: energy demand and resource scarcity. One prime example of this tension is the country’s coal use and water supply.
Measuring, mapping and understanding water risks around the globe.
A new study from the United States Geological Survey (USGS) reveals troubling news: The aquifers that millions of Americans rely on for freshwater are being depleted at an accelerating rate. In fact, aquifer depletion in the years between 2004 and 2008 was nearly triple the historical average.
Population growth and increasing demand—in particular for irrigating crops—are straining these underground freshwater sources. In many cases, aquifers have accumulated over the course of millions of years.
There are two lessons we take away from this USGS study:
- Growing demand is increasingly coming into conflict with our finite global water supply. Even in places that are historically water-abundant, growth in water demand is outstripping available supply. (That’s why WRI’s Aqueduct project focuses on water stress – the ratio of water supply and demand – more than measures of water quantity.)
Investors need to understand a wide variety of business and market risks facing the companies in which they invest. In the 21st century, that includes water risks.
An increasing number of companies are experiencing detrimental water-related business impacts, including operational or supply chain disruptions and property damage from flooding, to name a few. These impacts can be costly--in 2011 they cost some companies up to $200 million--and have caught the attention of investors around the world.
As a result, the movement toward increased Corporate Water Disclosure is gaining speed. The deadline for companies to respond to the CDP 2013 Water Disclosure Questionnaire is six weeks away. To make the reporting process easier, WRI has aligned our Aqueduct Water Risk Atlas with CDP’s water questionnaire. Together, we are providing step-by-step guidance on how to measure and report exposure to water-related risks.
This webinar – co-hosted by WRI and CDP – takes a close look at how companies can use Aqueduct and respond to the 2013 CDP Water Questionnaire.
A new report from CERES draws a connection between water risk and hydraulic fracturing in the United States. The report adds an important dimension to the conversation about how energy use and water stress will play out in the years ahead.
The report, Hydraulic Fracturing & Water Stress: Growing Competitive Pressures for Water, brings together Aqueduct’s high-resolution water stress maps with FracFocus.org data on the location and water use of U.S. shale oil and gas wells. The complete map (see below) shows where potentially water-intense hydraulic fracturing is happening in water-stressed areas.
The results of the study are eye-opening: Almost half of the more than 25,000 oil and gas wells mapped by Ceres are in water basins with either high or extremely high water stress.
Water scarcity is one of the defining issues of the 21st century. In its Global Risks 2013 report, the World Economic Forum identified water supply crises as one of the highest impact and most likely risks facing the planet.