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An unquenchable thirst

EOS Insight
5 November 2024 |
Competition for water is already a flashpoint in certain regions, and this is likely to intensify as the world warms and city populations grow. Joanne Beatty and George Watson explain how we engage with companies about their use of water, particularly in areas of scarcity.
An unquenchable thirst

Water is critical for life on earth. It supports biodiversity by sustaining habitats, enables agricultural and industrial processes, and is a critical resource for human consumption and sanitation. But treating water as if it were an infinite resource can drain ancient aquifers dry and reduce rivers to little more than a trickle, hurting communities and farmers downstream. This can create tensions between companies and communities, or even between nation states.

Companies face risks related to water withdrawal, consumption, and discharge. These include physical risks, regulatory risks and reputational risks, which all create financial risk for companies and investors. The sectors most impacted by these risks include food and beverage, apparel, chemicals, mining and industrial companies.

We believe that companies must adopt and accelerate their water stewardship plans to manage and conserve water responsibly. Given the urgency of the global water crisis, EOS is intensifying its engagement on water with companies, pressing them to identify their impacts and dependencies on water and to mitigate related risks, to ensure long-term business success and provide value to investors.

Our approach to water aims to improve the protection of water systems and is informed by frameworks including the Ceres Valuing Water Finance Initiative, the UN Global Compact’s CEO Water Mandate and the UN Sustainable Development Goals, covering aspects such as water quantity, water quality, ecosystem protection, access to water and sanitation, board oversight and public policy engagement.

Read the full article in our Q3 2024 Public Engagement Report.

An unquenchable thirst

EOS001320

An unquenchable thirst

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