The Business Case

1. Reputation and collaboration

Adopting this commitment helps to give stakeholders confidence that the company understands its exposure to water and climate risks and is taking action to mitigate these. Signatory companies can learn from peers and showcase their own progress using the case studies on the BAFWAC website. BAFWAC also offers a range of speaking opportunities to signatories throughout the year, including at the annual UNFCCC COPs.

The global economy will favor businesses that take a proactive approach to water stewardship.”Eurizon Capital

2. Identifying opportunities and mitigating risks

Conducting thorough risk assessments allows companies and investors to identify and understand their water risk, and the impacts that these risks could have on their operations. Robust risk assessments can uncover opportunities, too. Over two thirds (68%) of CDP respondents report that they have identified water-related opportunities for their business – but only 42% have strategies in place to realize them.

Water issues such as droughts are more likely to lead to changing supply patterns, increasing cost volatility, and shifting of demands to available materials.”Colgate Palmolive

3. Supply chain engagement

To understand the full range of possible impacts, companies must actively engage their value chain on water issues. By engaging and encouraging suppliers, buyers and other key partners to increase their understanding of risks, companies can improve their resilience to water and climate impacts.

After experiencing supply chain disruption due to drought and unprecedented heat in the Breede-Gouritz (South Africa), Woolworths has engaged with public policy makers, other stakeholders in the river basin, and suppliers to replicate learnings in other water-stressed areas to make farmers more resilient to future climate shocks.”Woolworth Holdings