{"id":236669,"date":"2023-10-25T10:00:00","date_gmt":"2023-10-25T10:00:00","guid":{"rendered":"https:\/\/news.republicofgreen.com\/companies-are-making-progress-on-water-management\/"},"modified":"2023-10-25T10:00:00","modified_gmt":"2023-10-25T10:00:00","slug":"companies-are-making-progress-on-water-management","status":"publish","type":"post","link":"https:\/\/news.republicofgreen.com\/companies-are-making-progress-on-water-management\/","title":{"rendered":"Companies Are Making Progress on Water Management"},"content":{"rendered":"
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\t\t\tFirst-of-its-kind Ceres benchmark assesses the water stewardship practices of the Valuing Water Finance Initiative\u2019s 72 focus companies
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October 25, 2023 \/3BL\/ – A new benchmark analysis of 72 companies from four water-intensive industries\u2014apparel, beverage, food, and high-tech\u2014shows encouraging progress on corporate water management, but underscores collectively, the companies have a long way to go in meeting the necessary ambition to reduce their demands and impacts on freshwater resources.<\/p>\n
“As the global water crisis escalates, so do the financial risks facing businesses and their investors,\u201d said Kirsten James, senior program director of water at Ceres and co-author of the report<\/strong>. \u201cWhile some companies are demonstrating a variety of leading practices, we need to see more companies excelling on all aspects of water stewardship in order to ensure sustainable water supplies for businesses, communities and the environment.\u201d<\/p>\n Ceres\u2019 report evaluates how companies of focus identified by the Valuing Water Finance Initiative are performing against the six Corporate Expectations for Valuing Water, which serve as the ambition around the full range of water issues that large companies should meet by 2030. This timeline is critical to slowing the pace of deteriorating water resources threatening communities, ecosystems, and economies across the globe and meeting the United Nations 2030 Sustainable Development Goal for Water (SDG6). More than 30% of global GDP will be exposed to high water stress by 2050, according to data released by the World Resources Institute in August. Already, 50% of stocks in each of four major U.S. stock indexes are in industries with medium-to-high water risk.<\/p>\n The report, developed using publicly available company disclosures, provides a unique and comprehensive view of companies\u2019 vulnerabilities, opportunities, and strengths when it comes to managing water. While results vary by company and industry, broadly, notable findings have emerged, including:<\/p>\n \u201cCompanies must adapt their approach to water management to the changing state of water resources. Our benchmark provides a much-needed line of sight into where companies are on their water journey and what they need to do to accelerate and broaden their efforts to protect water supplies their operations and supply chains depend on,\u201d said Shama Perveen, director of water research at Ceres and report co-author<\/strong>. \u201cWe highlight opportunities for all companies to learn from their peers within and across the four industries to raise their ambitions and reduce their water risk by implementing impactful solutions and collaborating with others to scale impact. For example, we found that more companies are engaging in water strategies <\/strong>that bring together a diverse array of stakeholders including businesses, communities, tribes, governments, and organizations to tackle urgent and shared challenges within specific basins. These collective water efforts can yield significant financial advantages and maximize impact benefiting all stakeholders.\u201d<\/p>\n The report adds to Ceres\u2019 extensive research base supporting investors in the Valuing Water Finance Initiative who are making the business case for and encouraging scaled corporate action on water risk. Currently, 94 investors, who collectively represent more than $17 trillion in assets, have committed to engage with the 72 focus companies through the initiative. Benchmark results will inform these engagements, providing investors insights into financial risk and opportunities, such as where companies\u2019 efforts are leading or lacking, and showcasing opportunities for companies to learn from and collaborate with peers and stakeholders to accelerate or broaden their water stewardship efforts.<\/p>\n In highlighting key findings and leading practices, the report can be a resource for all companies working to develop or evolve holistic water stewardship strategies addressing water impacts and dependencies throughout their value chains.<\/p>\n \u201cCeres\u2019 report is a critical resource for investors who are working with companies on how to address the increasing material financial risks posed by the water crisis unfolding across the globe,\u201d said Sophia Cheng, chief investment officer, Cathay Financial Holdings.<\/strong> \u201cIt will help us meet companies where they are in their water stewardship efforts, allowing for meaningful engagements more likely to result in companies making progress on sustainable water management.\u201d<\/p>\n \u201cFrom record-setting droughts and shrinking groundwater aquifers to polluted drinking water supplies and deteriorating wetlands, our future when it comes to water is increasingly uncertain,” said Brian Rice, a portfolio manager for the California State Teachers\u2019 Retirement System<\/strong>. \u201cInsights into how companies are responding helps build the context we need to effectively engage with them on water risk while also making decisions to optimize portfolio investments.\u201d<\/p>\n “It\u2019s difficult to find data sets with contextual information on water that give us as investors insights on water scarcity, quality, and access. The Ceres benchmark will help with that,\u201d said Greta Fearman, stewardship lead, Cardano Asset Managemen<\/strong>t. \u201cWith a focus on high water footprint companies, the report looks at freshwater use for agricultural and industrial processes in water scarce areas, water pollution, and progress towards water neutrality throughout their value chains. Cardano will be using this benchmark as a source of information to encourage companies to address the associated systemic risks and get us back where we need to be – in the safe zone of freshwater use.”<\/p>\n \u201cWe believe Cargill has an important leadership role to play in working across our operations, supply chains and in our communities to develop and accelerate solutions that protect and enhance water resources. But we can\u2019t do this work alone and need others to help elevate the challenge of global water stress to the top of the corporate agenda,\u201d said Heather Tansey, VP environmental sustainability at Cargill<\/strong>. \u201cThis benchmark report provides valuable insights and context around corporate water stewardship, aiding our efforts to strengthen and improve strategies that protect and preserve water resources while contributing to global water goals.\u201d<\/p>\n \u201cGeneral Mills and the food sector at large are inherently dependent on the earth and its natural resources, especially water,\u201d said Mary Jane Melendez, chief sustainability and global impact officer at General Mills<\/strong>. \u201cWith increased risks on the quality and availability of water, and with the majority of General Mills\u2019 water impact upstream in agriculture, General Mills is focused on championing the regeneration of water resources in key areas where we source ingredients and manufacture our products. Continuing to invest in water stewardship resilience remains a top priority for us to ensure a thriving future for people, planet, and our business.\u201d<\/p>\n Editor\u2019s note:<\/strong> Ceres will host a webinar Nov. 7 at 11:00 a.m. ET reviewing key findings from the benchmark report and featuring perspectives from the report authors, companies and investors. It is open to the media. Register here.<\/p>\n About Ceres\u00a0<\/strong><\/em>\n
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world\u2019s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.<\/em><\/p>\n