Aqueduct Alliance to Map Global Water Risk

The Coca-Cola Company has also agreed to work with the group to make previously proprietary water risk data available to support the work of the Aqueduct Alliance.

Kirsty Jenkinson, director of WRI's markets and enterprise program, said that the aim of the new project is to provide "accurate, high-quality information, together with a platform for businesses and governments to address water risks beyond physical water scarcity, including regulatory and socio-economic risks".

Specifically, the group plans to produce a global database of water risk information that will provide companies, governments and other institutions with the information they need to create highly detailed water risk maps. The maps are expected to feature hydrological data detailing flood and drought risks, but will also include socio-economic information that may impact the level of water risk faced by companies and communities in an area.

The blue chip companies involved in the project said that accurate water risk data was increasingly important for making effective long-term investment decisions that minimise the risk of environmental damage and business disruption.

A recent survey of 150 listed companies undertaken by the Carbon Disclosure Project found that around 40% had already experienced disruption as a result of water-related issues. "Water risk is emerging as one of the greatest threats to long-term economic and environmental sustainability", said Jeff Fulgham, chief sustainability officer at GE Power & Water, one of the other founding partners in the Aqueduct project. "Our customers around the world are addressing physical, operational, regulatory, social and reputational and financial risks all relative to water. Aqueduct will enable us to help our customers better assess and proactively address these risks."

His comments were echoed by Kyung-Ah Park, managing director for the Goldman Sachs Environmental Markets Group, who predicted the new map would provide an invaluable resource to investors. "Water risk is becoming an increasingly critical global issue, but one that is inherently local and not yet fully considered in business and investment decisions", she said. "Aqueduct will work to facilitate better management of water risk and help identify market opportunities that drive more sustainable economic development."

The WRI said it had developed a working prototype of the database and risk-mapping tool for the Yellow River Basin in northern China, and will soon launch a new website providing risk data for strategic water basins around the world. For more information, visit http://projects.wri.org/aqueduct/atlas.