Water risks are complex to assess. Such difficulty stems from the paradoxical nature of water: it is plentiful to many, yet its scarcity affects hundreds of millions of people, it is both fossil and renewable, it is freely supplied by nature but its treatment, distribution and wastage have a cost.
The majority of water risks represent externalities which are not yet properly priced or assessed by most businesses. This results in a global lack of preparation.
This AGCS ESG Risk Briefing summarizes selected key findings of the position paper published by the Chief Risk Officers Forum on water risks in November 2016.