In January of 2019, WaterSMART brought together investment and asset companies to discuss the disconnect between the two groups regarding reporting metrics for water risks. The goals of the workshop were to develop a shared understanding of investor-driven reporting requirements, to understand the metrics important for assessing risks and opportunities aligned with water strategies and goals, and to identify opportunities for collaboration between the two groups.
One of the conclusions arising from the workshop was that despite significant efforts, no one has successfully bridged the gap between investors and industry in terms of effective reporting metrics. Despite this hurdle, participants acknowledged that evaluating and effectively addressing water risks is highly desirable from both industry and investor perspectives, and that any system or tool for reporting is better than not reporting at all. This is because simply reporting demonstrates awareness of and active management of risks and enables controlling the narrative.
Although no shared standard has been set, momentum for collaboration in this area is growing. The metrics and frameworks of the future are being developed now and WaterSMART intends to continue being an integral part of this conversation!