New water risk study
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Water, or the lack of it, can directly affect companies’ profitability and, in turn, investor confidence. In the worst cases, poor water management can force closure or relocation of business operations.
Yet, when it comes to dealing with water issues, many companies don’t know where to start. This tool helps companies and investors ask the right questions about water. It allows you to assess risks and offers guidance on what to do in response.
It’s too easy NOT to use. More than 1,500 organizations from 32 industry sectors have assessed facilities located in almost all of the 405 largest river basins, as well as in hundreds of smaller basins all over the world. You can look at specific facilities or agricultural commodities, each with an automated basin assessment and questionnaire to evaluate direct operations.
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Frequently asked questions
The Water Risk Filter combines the functionality of some of the existing tools into one tool, and provides input for other tools. For example, it uses the detailed river scarcity data from WFN, while providing answers to <80% of the questions of the CDP Water questionnaire.When should I use the Water Risk Filter?
For a company, the Water Risk Filter can be used to assess water related risks for your own operations, suppliers or growth plans. Regular re-assessments (annually) can show positive or negative trends. Also, it can be used to make strategic (long term) choices on your supply chain. The results of the risk assessment and the provided possible mitigation responses will provide you with guidance on where to focus on, including actions and programmes that can be initiated with suppliers, or other companies. For an investor or creditor, a risk assessment can help identify potentially significant risks for your client and therefore your return on investment. This can be done at both the due diligence phase as well as once the client company is part of the portfolio. This information can lead to technical advice to clients on how to better manage waster risk as well as pre-conditions for loans and investments and improvements for less risky investments.Why should I use the Water Risk Filter?
It’s too easy not to do. Designed for non-water experts, this tool provides a highly structured set of risk indicators with very limited information needed from you. The Water Risk Filter covers all relevant elements of water risks, all industries (standard classifications) and all countries of the world. It interprets the best available scientific data for you and translates it into risk numbers based on the questionnaire. Then, you can map your assessed facilities or investments on numerous water related map overlays. Finally, a structured set of responses and up-to-date case studies will give you a flying start in mitigating risk and developing a water stewardship strategy.What is the connection with the Alliance for Water Stewardship?
Water stewardship is founded upon the idea that water is a shared risk and opportunity. The Water Risk Filter and the Alliance for Water Stewardship provide complementary pieces of the water stewardship puzzle. The Water Risk Filter provides a company with awareness and an understanding of their water risks, as well as a collection of mitigation activities. Conversely, the Alliance for Water Stewardship Standard provides a company with a systematic approach to address the identified risks, and if desired, an auditing system that can verify risk reduction. Thus while the Water Risk Filter identifies a number of tools and reports to mitigate risk, only the AWS Standard provides a comprehensive approach to reduce all forms of water riskWhat is the difference with other water tools?
Comparison with other water tools Knowledge BaseWill it take much of my time?
No. In a couple of seconds you provide three parameters in the Quick View to perform a high level risk assessment: the name of the facility, the industry (from a list) and the location. To make the assessment facility specific, a questionnaire needs to filled in, which can be send in a secured way to facility managers if necessary.Has the Water Risk Filter been tested?
Yes, thoroughly. It has been reviewed a number of times during the 20 month development process, by peer reviews of water experts, by risk management experts from financial institutions and consultancies, and the early Excel model and online tool have been tested with more than 10 financial institutions and businesses.Are the risk methodology and the used underlying data sources sound?
Yes. The risk methodology has been tested by risk management experts from financial institutions and consultancies. It is based on a multiple-choice system with simple 1-5 scorings and tailored weightings. The underlying data is the best available global data source for each single risk indicator.Does the Water Risk Filter assess business risks for the user, or risks for the ecosystem?
The risk indicators cover all elements of water related risks that can have a financial impact on the user. The idea is that because of the direct relationship between most companies and water, helping companies better understand water risks and provide them with guidance for action will ultimately help improve freshwater ecosystems.Is my data secured? Is WWF or DEG able to use your data?
We take data security very serious, as this is vital for the users of the Risk Filter. WWF will administer the Water Risk Filter. Once your data is input, only you can view the results and outputs. DEG will only be able to see data related to their own inputs and clients. WWF will be able to monitor the use of the tool and the results of assessments, but not able to use this or any company input data unless specifically agreed by that company. The security of the servers on which the Water Risk Filter is hosted is of the highest level.Is long term maintenance of the Water Risk Filter secured?
Yes. DEG and WWF have arranged the financial support of the maintenance of the content of the underlying model and databases, and of the IT infrastructure and highly secured hosting. There are multiple ideas to perform further research some aspects of water related risks, such as local regulatory frameworks and enforcement, agricultural supply chain risks, and improvement of the industry specific weightings.