Accounting for water in active ownership: integrating assessments of water risks and impacts into equity portfolio management

This report explores the linkages between water risks, water impacts, and financial markets. It showcases how water risk and impact analysis at portfolio and security level could be conducted and proposes recommendations for financial institutions on how to engage with water risks moving forward. This report examines three equity portfolios of differing size and nature. They are analysed using a specifically developed three-step methodology to narrow down a shortlist of companies belonging to high risk/high impact sub-industries.