Axa XL report highlights water security risks

Axa XL has today published an insights report highlighting the underappreciated risk of water security.

According to the international non-profit CDP, the cost to businesses of inaction on water risks is five times higher than the cost of action, yet water security is currently under-represented in the public debate on climate change.

The report focuses on seven sectors within Axa XL’s client-base and with high exposure to water risks and presents how those sectors may be impacted by three types of water risk:

• Physical – including water scarcity; climate change and threats to ecosystems; poor water quality and pollution of water resources; flooding; and poor management of water resources.

• Regulatory – including higher water prices; regulation of effluent quantity and quality; statutory water withdrawal limits; and regulatory uncertainty.

• Reputational – including negative media coverage and public scrutiny, changes in consumer loyalty and loss of market share due to litigation and damage to brand.

Suzanne Scatliffe, global sustainability director, Axa XL, said: “Creating a water-secure world requires water resources to be protected and properly managed, which is why it’s more essential than ever that water is at the forefront of corporate climate strategies.

“Axa XL is committed to helping organisations to improve their understanding of water-related risks and how they impact business operations. This new report aims to support businesses of all sizes to understand different types of sector-specific water risks and catalyse action with a series of recommended solutions and tools.”

The report, which is designed to be used both by businesses and public, outlines five recommendations – including setting water consumption and pollution reduction targets and carrying out scenario planning.

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