One of the most important aspects of effective water disclosure relates to a company’s ability to make connections among the information areas (the sections and subsections) within the Disclosure Framework. In some instances the connections are inherent and are made automatically. For instance, it is not possible for a company to meaningfully convey business risks or opportunities without linking back to the company’s water performance and operating context. In other instances, making the connections adds relevance and meaning to the information provided. For instance, response strategies should explicitly address the water-related risks, impacts, and opportunities the company has identified as material. The tables below labeled Connected Reporting provide examples of how a company might demonstrate how different types of water-related information relate to one another. Connected reporting tables Linking Internal Actions to Current State and Implications CURRENT STATE IMPLICATIONS Description of Impact Geographic/Geopolitical Area Parameters Exceeded Causes Fines and Penalties Description of Impact Violation Resolution Linking Water-Related Business Risks to a Company’s Current State and Response Geographic or Geopolitical Area Risk Category and Driver Consequence for Business Time-frame Company Response Reporting the Causes of, and Appropriate Responses to, Harmful External Impacts Geographic or Geopolitical Area Impactful Action Relationship to Impact Impact Type Description of Impact Company Response Setting Goals and Targets in the Context of Risks, Opportunities, and Impacts Geographic or Geopolitical Area Parameter / Metric Baseline Performance Current Performance Risks & Impacts Managed Target Progress Status Linking Internal Actions to Current State and Implications Parameter / Metric Baseline Risk or Impact Addressed Company Action Percent of Facilities Implementing Resulting Change in Performance Connected reporting for each subsection Context Assessments of water scarcity and water stress are included within some Performance metrics Understanding basin conditions is an essential aspect of assessing business risks, opportunities, and external impacts Performance Assessments of water scarcity and water stress (as described under Context) are included within some Performance metrics Understanding company and value chain water-related performance informs a company’s understanding of its business risks and external impacts Compliance Understanding company and value chain compliance informs a company’s understanding of its business risks and external impacts Business risks An assessment of business risks is based on the performance, context, and compliance data discussed under Current State Response strategies should react and respond to the specific risks a company faces, among other things Business opportunities An assessment of business opportunities is based on the performance and context data discussed under Current State Response strategies ideally react and respond to specific opportunities presented to a company, among other things External impacts External impacts typically result in business risks related to a company’s reputation Policies, governance, and targets A company’s overarching water strategy, and the policies and targets that underpin it, should address and manage the company’s water-related risks, opportunities, and impacts where possible Internal actions Internal actions should advance a company’s water strategies and seek to make progress toward established targets (which themselves should address the company’s risks, opportunities, and impacts) External engagement External engagements should advance a company’s water strategies. External engagement should seek to manage the company’s risks and impacts which cannot be adequately addressed by means of internal actions