Waterproofing Exposure

With China and the US agreeing to ratify the Paris Agreement at the G20 summit this month, climate and water risks have come of age. In China, regulations have also made them more tangible and immediate. Banks with longer term investment horizons are exposed, but where is the financial community on waterproofing their portfolios/investments from such exposure? Check out who’s doing what on this front in banking and see what 70+ investors from 50+ financial institutions and funds have to say about our recent water risk valuation work. Challenges remain in disclosure and measurement and Biswas, Tortajada & Chandler expand on why we must work together to set common goals. Water risks are not going away, if anything they are intensifying. Urgent water resources issues pervade from  high up in our mountains to deep underground. Glaciologist Inglis explores the threat to the Yangtze’s headwaters while Earth Securities Group CEO Litovsky & researcher Hill Clarvis explain the urgency behind depleted aquifers. The call for united action was echoed in this year’s World Water Week where efforts were made to start aligning the interests and aims of bankers, investors and corporates with the SDGs, in particular SDG 6 on water. There are multiple challenges. We can start by directing capital responsibly and protecting capital by reducing exposure to rising water risks. Building resilience for either water infrastructure or loan/investment portfolios will be costly, but the cost of inaction will be much greater. Surely it’s time to start investing in waterproofing your exposure.