Unde rs
Understand
nd ta
Steps 1. Understand basin water security 2. Identify high risk industries 3. Identify low and moderate performers within those industries
Step 1: Understand basin water security Company water risks are a combination of both site water management factors and external water basin factors. For example, even if a company is highly water efficient (site-level water management), it may still run into costly operational interruptions if the basin experiences regional groundwater or surface water shortages (external basin risk factors). While most companies have site-level efficiency measures in place, they
hardly address the root causes of the water crisis at the basin level. As a corporate water steward, this is a critical shift – moving from conventional site water management to contributing to basin water security through proactive measures. A responsible investor understands this and further enables this shift. These types of actions that are focused on addressing shared water challenges and driving action on a local level informed by the context of the basin contribute to SDG 6.
Investors’ conventional water engagement
Site
• Focusing on water policy-setting, risk mitigation and site water efficiency
Investors’ new state-of-the-art engagement
Basin
• Focusing on root causes of water risks • Improving the state of water resources in a basin – striving towards basin water security • Sustainably reducing water risks for investees and aligning with SDG 6 by addressing basin water risks
Water Alignment • Guide | 7
