Water Risk

Water - use it wisely
May 23, 2012
New research from KPMG AZSA Sustainability and data and insight company Trucost has found that the growing dependence of Japanese companies on manufacturing in parts of Asia is increasing their exposure to water shortages. Their joint study found that outsourcing to water-stressed countries including China can increase business risks from water scarcity have implications for companies globally. Water came to the fore of supply chain risk management for companies in industries such as Consumer Electronics and Automobiles & Parts after floods in Thailand disrupted supplies in 2011.
Maplecroft 2012 water threat index map
May 15, 2012
The viability of water supplies throughout key regions of China, India, Pakistan, South Africa and the US are under threat from unsustainable domestic, agricultural and industrial demands, according to a new study that maps water use down to 10km² worldwide.  The growth economies of China and India, and the world’s largest economy USA are identified by risk analysis company Maplecroft, in its newly released Water Stress Index, as having vast geographical regions and sector areas where unsustainable water use is outstripping supply.
A new online tool unveiled by the WWF and German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG) allows companies to identify water risk within their supply chains and provides steps to mitigate that risk, which is becoming a major concern for companies operating in China and the rest of the Asian region.