Mar 29, 2010

The Largest Companies are Falling Short in Managing and Disclosing Water Scarcity Risks

GreenEconomyPost Ceres has released the first comprehensive assessment and ranking of water disclosure practices of 100 publicly-traded companies in eight key sectors exposed to water-related risks: beverage, chemicals, electric power, food, homebuilding, mining, oil and gas, and semiconductors. The report highlights best practices, key gaps and trends in water reporting and lays out a set of recommendations for companies and investors.

Despite growing water-scarcity risks in many parts of the world, the vast majority of leading companies in water-intensive industries have weak management and disclosure of water-related risks and opportunities, according to a first-ever report issued recently by the Ceres investor coalition, the financial services firm UBS and financial data provider Bloomberg.

Water Use Graphic

The report evaluates and ranks water disclosure practices of 100 publicly traded companies in eight key sectors exposed to water-related risks. The report shows that many companies are not including material water risks and performance data in their financial filings, nor are they providing local-level water data, particularly in the context of facilities in water-stressed regions.

"Water is integral to the global economy. Whether you're in California or China, clean potable water is an absolute must for sustaining communities and sustaining economic growth," said Jack Ehnes, chief executive officer of the California State Teachers Retirement System (CalSTRS). "This report makes clear that companies are not providing investors with the kind of information they need to understand the risks and opportunities posed by water scarcity."

Please read full at: GreenEconomyPost and download The full report: Murky Waters? Corporate Reporting on Water Risk.