Companies Must Increase Transparency on Water-Related Risks
23 October 2012
There is a sharp rise in company reports of detrimental impacts from drought and other water-related issues, yet little change in the number of companies with board level oversight of water strategies and no increase in the number of corporations providing transparent water-related risk assessments to investors. These are some of the key findings in the 2012 CDP Water Disclosure report published today.
As a lead sponsor of CDP Water Disclosure and an investor in more than 7,000 companies worldwide, many of which rely on water, Norges Bank Investment Management (NBIM) expects companies to disclose information on how they manage water-related risks.
“Companies should disclose metrics that show their exposure to water-related risks and opportunities, and that measure the performance of their water management strategy,” says Jan Thomsen, Chief Risk Officer at NBIM. “This will provide important information for investors seeking to manage water-related risks and opportunities in their portfolios.”