New Ceres Report Aims to Improve Investor Practices on Global Water Risks
New York, NY, March 10, 2015 /3BL Media/ - Amid growing concerns about water scarcity and other global sustainability risks, the nonprofit group Ceres today released a new report designed to help global investors improve their analysis and decision-making on such issues. The report was announced at a water-risk investor event hosted by Bloomberg.
The report, based on interviews with dozens of institutional investors and water experts around the world, summarizes existing practices for integrating environment, social and governance (ESG) issues – and water issues, in particular – into mainstream investment strategies. Its biggest focus is on water-related investment practices and includes specific recommendations for how the global investors can factor water into investment policies, portfolio management, strategic planning and client relationship building.
"Global water risks are a growing threat to companies, bond issuers, infrastructure and the broader economy, but most investors aren’t yet rigorously evaluating how these issues could affect their portfolios," said Monika Freyman, CFA and water expert at Ceres who authored the report, An Investor Handbook for Water Risk Integration. "By mapping out steps for broader and deeper consideration of these issues, this report aims to both help investors and contribute to more sustainable water practices that will ensure a vibrant economy for future generations."
"Although there have been many reports raising awareness of material sustainability risks, few reports outline in such detail steps investors can take to influence the management of these risks and opportunities," said Michael McCauley, senior officer of Investment Programs & Governance at the Florida State Board of Administration, which manages more than $180 billion of assets for Florida’s retirees, who wrote the report foreword.
The report makes clear that water risks are tangible and growing. Citing population growth, too many competing demands and climate change impacts, the World Economic Forum recently ranked water availability as the world's "top global risk."
The fact that more than one billion people already live in water-stressed regions - and that this number is expected to double or triple by 2025 - is just one dimension of this global threat. Droughts across the U.S. Midwest, California, Brazil and China are impacting not only corporate activities, but also entire economies.
To download the full report, see www.ceres.org/investorwaterhandbook
To view the water risk infographic, see www.ceres.org/issues/water/water-and-esg-risk/ceres-sector-water-cheat-sheet
About Ceres
Ceres is an advocate for sustainability leadership. Ceres mobilizes a powerful coalition of investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 100 institutional investors with collective assets totaling more than $13 trillion. Ceres also directs Business for Innovative Climate and Energy Policy (BICEP), an advocacy coalition of more than 30 businesses committed to working with policy makers to pass meaningful energy and climate legislation. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
