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Friday, March 20, 2009

Environment - "Corporations’ “water footprint” — assessing their water use and pollution — should be disclosed in SEC financial reports"

Barry B. Burr reported in Pensions & Investments on Feb. 26th that:

Corporations’ “water footprint” — assessing their water use and pollution — should be disclosed in SEC financial reports along with companies’ strategies for dealing with expected growth in water-related costs, according a report by Ceres and the Pacific Institute.

“Investors also have a significant interest and role” in encouraging companies “to look more closely at their potential risk exposure to water-related challenges,” according to the 60-page report issued today. Investors should be aware of potential financial, regulatory and reputational risks corporations face related to water usage and availability that could drive up costs, the report said.

“Companies should publicly report management activities and key metrics on their water use and impacts, and track how their performance changes over time” to help shareholders assess how companies address water risks as well as business opportunities in the area, the report said.

The “era of cheap and easy access to water is ending, posing a potentially greater threat to businesses than the loss of any other natural resource” because “there is no substitute for water,” the report said.

From an AP story by Garance Burke:
FRESNO, Calif. (AP) — As more companies become conscious of their carbon footprint, a new movement is urging corporations to track their "water footprint" as well, or risk financial losses as freshwater supplies dry up around the globe.

Major corporations such as Coca-Cola Co. now disclose the amount of water they use in financial reports, in an attempt to show investors they can confront threats to their water supply, according to a study released Thursday by the nonprofit Pacific Institute.

But dozens of high-tech companies, farms and soda bottlers have lost millions because they didn't forsee the risks posed by droughts and floods tied to global warming, researchers found in a survey of 121 companies in water-intensive industries.

Here is the Pacific Institute report:
"Water Scarcity and Climate Change: Growing Risks for Businesses and Investors" identifies water-related risks specific to eight key industries, including electric power, high-tech, beverage, agriculture, apparel, biotechnology/pharmaceutical, forest products, and metals/mining firms.
Water Footprint is the name of an international site with extensive information on the globalization of water.

NPR's Morning Edition this morning had this story by Greg Allen headed "Florida Debates Water Tax On Bottlers":

Each day more than five million gallons of spring water is bottled in Florida, and companies pay almost nothing for local water permits. Florida is considering joining other states that have imposed "severance fees" on commercially bottled spring water. It would charge six cents for every gallon taken from springs or aquifers.
See also these ILB entries from Oct. 22, 2007 and Aug. 29, 2008.

Posted by Marcia Oddi on March 20, 2009 09:02 AM
Posted to Environment