Water Scarcity and Resource Conflicts
Published on Tuesday, January 14, 2025
The wildfires currently affecting Los Angeles are a stark example of what can happen when water is in high demand and in short supply. Water scarcity is emerging as a critical global risk, with droughts affecting over two billion people worldwide. Major industries like agriculture, textiles, and manufacturing face production halts due to restricted water access, particularly in regions like South Asia, Africa, and the western United States.
Corporate leaders face mounting pressure to address their water footprints. Investors increasingly demand water management disclosures, while consumers advocate for sustainable practices. Companies are implementing water recycling systems and partnering with NGOs to improve local water access.
Resource conflicts are also escalating, with disputes over transboundary rivers affecting international relations. Businesses operating in water-stressed regions face reputational risks and operational challenges.
This situation emphasizes the importance of integrating water stewardship into ESG strategies. As global temperatures continue to rise, organizations recognize the need for safeguarding water resources to ensure long-term business resilience.
Depending on its business sector and the nature of its activities, your organization may be impacted, directly or indirectly, by this global risk over the coming years.
Whether you are a director, an executive or a manager, you may be wondering if your company is exposed to this global risk or other potential events. And if so, are you and your organization ready to face these challenges?
Should you need advice on the appropriate risk governance and enterprise risk management approach for your organization, please contact us.
Baldwin Global is an independent advisory group offering professional services, education and training in risk governance and enterprise risk management. We help our clients’ boards of directors and management teams attain their objectives by embedding sound risk oversight and management practices into their decision-making process to have a significant positive impact on their business.