Financial Sector
Throughout the world, water risks have become high profile issues. Climate change, extreme weather events , access to clean drinking water and water shortages are some of the water risks populations face. As these risks are being realised as more frequent, investors are beginning to ask questions about water risks impact their investments and how corporate water strategies could be used to manage risks.
WaterSMART works with investment houses and banks to identify, understand and quantify the water risks facing the companies they invest in or those they are considering adding to their portfolios. We accomplish this by:
- Conducting water strategy reviews, market assessments and water technology assessments.
- Assigning investment risk scores and monetary values to each of the assessed water risks to create a full understanding of the true value of water to both the organization and the investor.
- Providing feedback on existing approaches to water management and the achievement of water goals.
- Developing methodologies and standards for water strategy reporting.
- Determining mechanisms to make changes to meet water goals.
- Providing a framework for how to assess water investment risks.
We also work with financial institutions to determine the financing strategies and metrics they need to have in place in order to comply with Goal Six of the United Nations’ Sustainable Development Plan. This water goal calls for access to safe water and sanitation and sound management of freshwater ecosystems by 2026.
Featured Financial Sector Projects
Seven Generations Energy
WaterSMART worked with Seven Generations Energy to help them achieve their goal to be an industry leader in water sustainability and management. The focus of the project was the development of a robust, multi-component corporate water strategy that received endorsement from senior leadership and buy-in from operational staff. Our efforts also included the development and operationalization of water metrics that Seven Generations utilized to monitor and improve operational performance and for external Environmental, Social and Governance (ESG) reporting. Key outcomes included:
- Developed a corporate water strategy for internal and external use and that was included in their sustainability report.
- Prepared context-based water metrics to monitor operational performance against strategic targets.
- Developed and implemented operational and management protocols to prepare and use the metrics for continuous improvement and for internal and external reporting.
- Built a software tool and protocol to operationalize a context-based water metric that measures their impacts on the watersheds where they operate.
JWN Energy
WaterSMART worked with JWN Energy to develop and facilitate an online course for sustainability leaders in the oil and gas sector. It acknowledges that practical approaches are needed to manage challenging scenarios such as water scarcity and growing regulatory focus on freshwater use. Ultimately, the course helps participants understand crucial components for building a corporate water strategy. The course had the following objectives:
- Connect water risks with opportunities for business.
- Discuss the process for developing a water strategy.
- Utilize course tools and metrics to integrate in example business cases.
- Relate business cases to ESG reporting and stakeholder engagement initiatives.
