The Carbon Disclosure Project (CDP) has issued its first water-related information request to 302 of the world's largest companies in sectors that are water intensive or face particular water risks. Since 2003, the CDP has issued carbon and climate change information requests on behalf of investors. With the launch of the CDP Water Disclosure in late 2009, the organization acknowledged that much of the impact of climate change will be manifested through increasingly scarce water resources and that these possible water risks needed to be better understood by investors.
Water is the world's most critical resource and global water scarcity is an emerging risk that all companies must fully evaluate. It is often said that what is measured matters. For Ceres, CDP and their supporting financial institutions, water risks should be not only measured but disclosed.
The CDP 2010 Water Disclosure is discussed in greater detail in a recently published article titled Managing Water Risks: Carbon Disclosure Project's Water Disclosure. 2010 Emerging Issues 5256 (LexisNexis Aug. 2010).