Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2015
10

'Detrimental impacts' from water risk exposure cost firms $2.5bn

Open-access content Tuesday 27th October 2015 — updated 5.50pm, Wednesday 29th April 2020

Almost two thirds (65%) of companies report exposure to water risk and experience “detrimental impacts” costing $2.5bn (£1.64bn), according to a survey.

2

Sustainability organisation CDP said respondents identified exposure to eight water risks  - on average -  that could change business, revenue or operations. 

These included increased water scarcity and regulatory risk such as higher water prices.

Based on data from 405 firms who responded to CDP, a total of 2,413 individual risks were reported in direct operations and 788 in supply chains, with almost half (44%) falling within the next three years.

CDP, which conducted the research on behalf of a group of investors, said overall more than half (53%) of companies were failing to conduct a comprehensive risk assessment.

The organisation said such an assessment was a "basic first step" for any company seeking to ensure business resilience against water issues such as scarcity, accessibility and poor water quality.

The report found the oil and gas sector was the least transparent in providing information about their water management practices, with only 22% of energy firms disclosing their strategies.

CDP described this lack of transparency as "concerning" because more than two thirds of oil and gas firms (65%) said their business was vulnerable to substantive water risks.

Moreover, the report said almost half (43%) of energy companies experienced "detrimental water-related" impacts in the past year - among the highest of the eight sectors featured in the report and "much higher" than the cross-sector average of 27%.

Cate Lamb, head of water at CDP, says: "Just as oil was to the 20th century, water is fast becoming the defining resource of the 21st century.  Unfortunately however, unlike oil, there is no replacement for water."

This article appeared in our October 2015 issue of The Actuary.
Click here to view this issue
Filed in
10
Topics
Environment

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ