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In this tutorial you will learn: 

About the Water Risk Indicators

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Aqueduct Water Risk Indicators

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The Aqueduct Water Risk Atlas assesses water risk across 3 categories—quantity, quality, and reputational risk—using 13 indicators. These indicators, like "Water Stress" or "Water Depletion," are scored on a scale of 0-5, with higher scores indicating greater risk. By understanding these indicators and their scores, you can build a comprehensive picture of water risk in a specific location.

Read more about the indicators and the scores used in Aqueduct

 

Preset Industry Weightings

The Aqueduct Water Risk Atlas offers pre-defined weighting schemes for nine industry sectors (Agriculture, Electric Power, Semiconductor, Oil and Gas, Chemical, Mining, Food and Beverage, Construction Materials, Textile). These weightings reflect the relative importance of each water risk indicator for a specific industry.  For example, the "Food and Beverage" weighting scheme might prioritize water quality indicators more highly compared to the "Energy" sector.

Benefits of Using Industry Weightings:

  • Quick Industry-Specific Assessment: They provide a fast and reliable way to get a water risk overview curated for your industry.
  • Expert Insights: The weightings are developed using input from industry experts, ensuring they consider the most relevant water risk factors for your industry.
Figure showing indicator weights per industry.

 

Example Using the “Food and Beverage” Weighting Scheme:

So, for example, when you select "Food and Beverage" from the available industry options, the tool will automatically apply a pre-defined weighting scheme to all 13 water risk indicators. This pre-defined scheme reflects the judgment of water experts and industry representatives on the relative importance of each water risk factor for the sector.

Here's an example breakdown of the weights applied within the "Food and Beverage" setting:

  • Water Quantity Risk (67%): This signifies that issues around water scarcity, such as droughts and competition for water,  are considered the most significant risk factors for the Food and Beverage industry according to the pre-set weights.
  • Water Quality Risk (16%) & Regulatory and Reputational Risk (16%): These receive a lower weighting compared to water quantity, indicating they are still important but potentially less critical than water availability for the industry overall.

Here's how you, as a Food and Beverage user exploring this feature, can interpret this information:

  • Focus on Water Quantity Management: Since water quantity is the biggest risk factor, you should prioritize strategies to conserve water in your operations. This could involve exploring water-efficient technologies, reusing process water, or identifying alternative water sources.
  • Monitor Water Quality: While the overall water quality risk is moderate, it's crucial to monitor local conditions and minimize your contribution. Solutions such as implementing water quality testing and treatment processes and investing in buffer zones around farmland are critical.
  • Stay Informed on Regulations: Even though regulatory risk appears lower, be aware of potential changes in water use regulations or environmental policies that might impact your business.

Explore the "Food and Beverage" weighting scheme within the Aqueduct Water Risk Atlas to see the full breakdown and get a quick industry-specific water risk assessment for your location.

 

Customizing Weightings for Your Needs

The default weighting scheme assigns importance to each indicator, but you can tailor it to your specific needs. Here's how:

  1. Access the Custom Weighting Feature: Locate the "Change Indicators and Weightings" section within the Aqueduct Water Risk Atlas baseline interface.
  2. Select “Change” and “Custom”: Choose the indicators you want to include in your assessment. You can include all 13 or select specific ones based on your needs.
  3. Assign Custom Weights: For each chosen indicator, assign a weight from the available options. These weights reflect the relative importance of each indicator to your specific situation. Consider factors like:
    1. Industry Specificity: Prioritize indicators that directly impact your water needs. For instance, a beverage company might value water quality indicators more than water stress indicators.
    2. Local Context: Think about the specific location you're analyzing. Water scarcity might be a bigger concern in arid regions, while regulatory risks might be more prominent in areas with stricter water management policies.

GIF of custom weightings.

 

Visualizing Results with Custom Weightings

Once you've defined your custom weights, the Aqueduct Water Risk Atlas will show the results on the map and risk scores based on your chosen indicators and their assigned importance. This allows you to:

  • See Geographically Specific Risks: The map will highlight areas with higher or lower water risk based on your custom settings.
  • Prioritize Based on Your Needs: The risk scores will reflect the water risk factors you deem most important.

By customizing the indicators and weights, you gain a more nuanced understanding of water risk tailored to your industry, location, or project. This empowers you to:

  • Make Informed Decisions: Prioritize water management strategies that address the most critical risk factors for your business.
  • Focus Resources Effectively: Allocate resources towards mitigating the water risks that pose the greatest threat to your operations.
  • Gain a Competitive Advantage: Proactive water risk management can enhance your company's sustainability profile and resilience.

Remember, the chosen indicators and weights significantly impact your water risk assessment results. Take advantage of the Aqueduct Water Risk Atlas's customization features to gain deeper water risk insights and make informed decisions for a sustainable water future.

 

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