Value of water changed from a connotation of only a human’ basic needs to ‘a capacity’ which has a power as index’ determinator. Now, it speaks about certain price through listed index at wall street.
Anne Simpson who is Global Head of Sustainability at Franklin Templeton, also serves on Board of Directors for Ceres and is a founding member of the Climate Action 100+ Steering Committee writes in her article ‘Water Risk is Financial Risk’ published at Sustainable Brands says: ‘Water is a primary goods for a living. Since 1756, Benjamin Franklin has noted what is now evident to many investors: “When the well is dry, we know the worth of water.” The scale and increasing severity risk is real. ‘
Anne also reminds the ‘capital power mobilization’, the initiative which bringing together 700 investors responsible for $68 trillion in assets. This is to ensure company boards to develop strategies and set targets ensuring a transition to a net-zero emissions economy. More importantly that disclosure is the foundation to that work; and role of investors in calling for mandatory disclosure in US and international markets has been a formidable force to ensure corporate reporting fully captures the drivers of sustainable, risk-adjusted returns on behalf of the people whose money they invest.
It is highly requested that all players to response the Paris protocols targets. Related impact on companies through water risk needs to be fully assessed and disclosed. Water-scarcity risks are estimated to cost food and beverage companies alone as much as $200 billion – roughly three times more than carbon-related risks. Climate-related water risks such as California’s drought and New Mexico’s wildfires continue to impact communities daily as drought extends across sub-Saharan Africa, northern China, and vulnerable areas of Latin America.
For this amicably reason, I would like to join Anne, her emphasized solid demand on above matter not only to concentrate on food and beverage sectors however, specially to all wealth/capital management (company) who operates and/or holds shares on property’s companies in Indonesia whereby their real estate are almost sold out. Speaking about Indonesia’ case who lays around the equator lane. Though, in relation to heating temperature issue, comparing to all other places as mentioned in this article; our local problem is still at controllable measure. However, it tends at serious up spiking trend.
At controversially local people are introduced to wet natural disaster scaling from local (housing complex only) to neighborhood level after living peacefully for almost 20 years. New fact showed houses were flooded, drainage was over capacity and could not drain the water. Not to mention streets changed their function becoming temporary rivers. At this stage, all facts are really irritated as it’s at repeating basis. Logically, all destruction costs must be adding up at each time of happening.
The innocent question now, who holds those responsibilities to this matter?
#TogetherWeCan make a real impact.
- Original version of full article of Water Risk is a Financial Risk written by Anne Simpson as published at Sustainable Brands https://sustainablebrands.com/read/finance-investment/water-risk-is-a-financial-risk-companies-will-soon-have-the-tools-to-calculate-disclose-and-mitigate-it/?utm_source=newsletter&utm_medium=email&utm_campaign=nl_220707