For many companies, water issues have recently migrated from corporations’ social responsibility departments to finance and risk management departments. Companies have been reporting a growing exposure to water-related risks like flooding and pollution, and many have already started to experience water-related business impacts.
This trend prompted WRI’s Markets and Enterprise Program to build a tool to help companies and investors identify water-related risks across their operations or portfolios. The tool, named the Aqueduct Water Risk Atlas, is based on an indicator framework that quantifies and maps different drivers of water risk, otherwise known as the Water Risk Framework. After testing this framework in various regions, WRI recently released its revised version. This updated framework will eventually be used to assess water risks in every part of the world.