Water-related business risks stem from the nature and efficiency of a company’s operations, as well as the hydrologic, environmental, social, and political conditions of the watershed in which the operations are located. Click below to learn more about each of these two different sources of risk:
- Company: How much water does a company use and how clean does it need to be used as an input? How much (potential) pollution and environmental impact can the company’s operation create?
- Basin: Where are the company’s operations located? Some watersheds are more sensitive than others.
Companies that are high volume users or high potential polluters located in sensitive watersheds obviously need to be more concerned about water risks than low volume users operating in areas of plentiful water supply and low environmental risks. However, companies with very efficient and clean operations may still be at risk depending on the conditions of the watershed around them.