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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.

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This working paper provides data sources, methodology, and maps for Aqueduct’s Water Risk Atlas of 12 global indicators grouped into three categories of risk and overall risk.

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Prior to the creation of the global Aqueduct Water Risk Atlas, indicators were developed and tested in a number of river basins worldwide. The results of the Mekong River Basin Study helped inform and shape the global Aqueduct Water Risk Framework.

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The days leading up to Hurricane Sandy’s landfall were a testament to the power of global data systems in helping to understand and manage risks that natural phenomena can create. A vast, worldwide network of weather monitoring stations and sophisticated remote sensing allowed meteorologists to track and predict Sandy’s progress—and give ample warning to those of us in the hurricane’s path.

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The Yellow River has played a critical role in the growth and prosperity of Chinese civilization for thousands of years. But today, the Yellow and the people who depend on it face severe challenges. Stress of limited water resources, pollution, and flooding pose significant risks to communities and businesses that rely on the river. As these stresses grow, China’s water managers and users face the daunting challenge of implementing policies that balance economy, ecology, and community.

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“To tell the story of the corporation is to tell the story of a grand bargain gone awry,” says Pavan Sukhdev in his new book, Corporation 2020: Transforming Business for Tomorrow’s World. It’s a bold statement, but he backs up his claim persuasively. While many companies are reaching record profits, they’ve oftentimes come at the expense of ecological degradation, rising greenhouse gas emissions, unemployment, spikes in food and fuel costs, and social inequalities.

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As much of the United States continues to suffer through what the National Oceanic and Atmospheric Administration (NOAA) has called the country’s most extensive drought in more than 50 years, there is growing concern over how broad and severe the impacts may be. Events like this drought—which are projected to become increasingly common should climate change continue unabated—provide a sharp reminder of how heavily communities and global economies rely on water.

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Last weekend, Jessica Yu's new water documentary "Last Call at the Oasis" took us on tour of the impacts water scarcity is creating around the globe, from the parched pastures of Australia's farmlands to the sewage-polluted banks of the Jordan River. This film shines a much-needed light on the various water challenges we all now face at a critical time. The numbers alone are eye-opening.

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Let me ‘fess up. The state of the environment sometimes gets me down. But to be fair, Earth’s vital signs would drive any respectable emergency room doctor into a state of utter panic. Globally, two thirds of ecosystem services, such as freshwater, pollination, natural hazard regulation, have been degraded in the past 50 years. Annual rates of growth in yields of many basic crops have declined over the past 20 years. The effects of global climate change are already being felt around the world.

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Around the world and throughout every sector of the economy, companies and investors are increasingly aware of risks associated with their dependence on fresh water. For example, a recent report by the Carbon Disclosure Project’s Water Disclosure branch looked at water-stressed South Africa and revealed that 85% of water-intensive companies in the country are exposed to water risks, with 70% expecting to face water impacts to their operations within the next five years.

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This edition of the Aqueduct News Roundup looks at recent articles and some wrap-up from World Water Day as well as the 6th World Water Forum in Marseille, France. The last several weeks have been exciting for Aqueduct, which introduced a streamlined new water risk mapping interface and comprehensive water risk maps for southern Africa’s Orange-Senqu basin,which are available online.

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It’s rare for water to make waves at the World Economic Forum’s annual gathering of business leaders and finance ministers. But the most recent Davos summit was an exception. A new eye-opening report ranked water supply among the top five global risks in terms of impact– on par with systemic financial failure and fiscal imbalances.

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The Aqueduct project is an effort to measure and map water related risks being developed by the World Resources Institute with the support of an alliance founded by General Electric and Goldman Sachs. As part of this effort, the Aqueduct team convened its hydrological modeling partner ISciences and experts from The Coca-Cola Company to develop and analyze a set of maps for the Bonn2011 Nexus conference that illustrate the complex relationships between water, food, and energy worldwide (see below).

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For the last five months, a severe drought in central China has brought water levels in the Yangtze River to near-record lows. The drought’s impacts -- from threatened drinking water supplies to disruptions in manufacturing -- have rippled through the population and economy of China. They are a reminder of the diverse and complicated ways in which water, or the lack thereof, can pose risks for companies, investors and policy makers.

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