Ecolab and Trucost today launched a free tool to help businesses assess water-related risks in financial terms and enable more informed decision-making.
The partners say the Water Risk Monetizer is a first-of-its-kind tool and the information it provides can help businesses around the world better understand water risks and the potential implications of water scarcity for a particular facility.
Insufficient access to clean water can significantly disrupt operations, increase costs and curtail growth. Failure to manage water-related risks can result in reduced revenues, higher operating costs, stranded assets and lower investor confidence that can restrict access to capital, or result in higher financing rates or higher insurance premiums.
The disconnect between market price and risk makes it hard for businesses to justify investments in effective strategies to protect against water-related business challenges, Ecolab and Trucost say.
Most companies (60 percent) say water will negatively affect business growth and profitability within five years, while more than 80 percent say it will affect their decision on where to locate facilities, according to a survey of major US corporations by the Pacific Institute and VOX Global published in May.
In June Ecolab, working with the World Wildlife Fund, signed on as a founding partner of the Alliance for Water Stewardship to support the launch and implementation of the International Water Stewardship Standard, a global framework to promote sustainable water use.