Responsible Asset Owners Global Symposium

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High and Dry: How Water Issues Are Stranding Assets

Water insecurity is already impacting companies through the stranding of assets. Our groundbreaking report with Planet Tracker presents new research which highlights the deep implications for the global financial sector.

This report from CDP and Planet Tracker details how water risks are already leading to stranded assets across key industrial sectors and shows how financial institutions are exposed to these risks. It looks at four case studies across the coal, electric utilities, metals & mining, and oil & gas sectors.

Key Findings

  • US$15.5 billion has already been stranded or is at risk at four major infrastructure projects due to water issues. This is just the tip of the iceberg.

  • The top 20 known financial institutions have provided US$2.5 trillion in financing to the world’s most water-impactful companies over the past 10 years.

  • One-third of listed financial institutions are still not assessing exposure of their activities to water issues. They need to assess risks, disclose data, and manage impacts now.

  • 69% of companies reporting to CDP are exposed to water risks which could have a substantive impact on their business. These risks could lead to US$225bn in financial losses.

  • Investors need to act now by disclosing these risks.