Awareness around the physical, regulatory, and reputational risks that water can pose to companies and their investors is on the rise. We need robust, comparable, and comprehensive indicators to help assess these water-related risks.
In response to this demand, WRI developed the Aqueduct Water Risk Framework, including 12 indicators grouped into three categories of water risk. Companies can use this information to prioritize actions; investors can use it to leverage financial interest to improve water management; and governments can utilize the data to engage with the private sector to seek solutions for more equitable and sustainable water governance.
This working paper describes the Aqueduct Water Risk Framework, the indicators it includes, and the methodology used to combine them into aggregated, comprehensive risk scores. The Aqueduct Water Risk Framework includes indicators of water quantity, water variability, water quality, public awareness of water issues, access to water, and ecosystem vulnerability.