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CDP Issues 2nd Annual Water Disclosure Report

Grayson_Lynn_COLORBy E. Lynn Grayson


The Carbon Disclosure Project (CDP) launched its second annual Water Disclosure Global Report on Friday, November 16th. It is based upon a questionnaire sent to 315 companies on the Global 500 Index identified as operating in the most water-stressed locations or industry sectors. The CDP report shows some improvement by reporting companies on water management issues but overall, the report concludes that more board-level attention is required to address this critical concern.

The following are some key findings from the process and the report:

  1. 190 companies or 60% of identified companies responded to the questionnaire – a 10% increase over last year.
  2. Over half (59%) of companies responding reported exposure to water-related risks such as flooding, scarcity and reputational damage.
  3. One third (38%) of companies already have experienced water-related business impacts, such as disruption to operations from severe weather events or water shortages.
  4. 63% of companies believe that water presents commercial opportunities and commonly identified opportunities relate to increased water efficiency, among others.
  5. 72% of companies understood the linkages or tradeoffs between water and carbon emissions.
  6. 41% of companies confirm that the biggest water risk facing their businesses is water stress or scarcity.

CDP Water Disclosure collects data annually on water use, strategies, and risks and opportunities from companies on behalf of 354 investors representing US$43 trillion in assets. The Carbon Disclosure Project is an independent not-for-profit organization providing a transformative global system for companies and cities to measure, disclose, manage, and share climate change and water information.

The 2011 CDP Water Disclosure Report is available at