Friends Fiduciary Calls For Increased Corporate Water Disclosure And Stewardship

May 1, 2014

Friends Fiduciary has co-signed letters sent to 25 companies that have either declined to participate in or failed to respond to the Carbon Disclosure Project’s (CDP) water questionnaire for 2013. CDP’s water program has become the pre-eminent platform for corporate water disclosure, and a completed questionnaire enables businesses and investors to better understand the risks and opportunities associated with water scarcity and other water-related issues. Global population growth, climate change, agricultural and industrial demands and point source water pollution are exacerbating water scarcity. As a scarce and valuable resource, water is increasingly subject to regulation, commoditization and ownership conflict. According to the CDP, current “business as usual” water management practices will put approximately $63 trillion, or 45% of projected global GDP, at risk in 2050. Businesses should take a proactive approach to water stewardship in favor of sustained growth, and investors should be privy to risks and how businesses plan to manage and mitigate these risks. In 2013, 530 institutional investors representing $57 trillion called for greater transparency on corporate water issues from over 1000 companies worldwide. Currently, over 767 institutional investors representing over $92 trillion use the global and standardized CDP data to understand how companies manage climate change and natural resource risks. As socially-responsible and long-term investors, we recognize that water resource management is of critical importance socially, environmentally and for the sustained success for many businesses. The companies receiving our letters should take the opportunity to respond to the CDP’s 2014 Water Information Request. It is in their interest, and their investors’ interests, to do so.