KEY TAKEAWAYS

• Freshwater is a scarce resource. Major world events have recently driven home the implications of climate change for both water scarcity and also water-related disasters.
• Investors are increasingly taking notice of the risks that water scarcity pose for investments in a number of sectors, as highlighted by the recent announcement of the Ceres-backed Valuing Water Finance Initiative.
• When looking at water risks in their portfolios, investors are able to consider both the risk to an investee’s business and the risks to water supplies arising from the business’ operations.
• With the launch of the new Water Risk Rating, ISS ESG clients have access to thorough coverage of how companies in their portfolios depend on or affect freshwater resources. This coverage can help them with their investments, from asset selection and retention through engagement and active ownership practices.