US-based sustainability non-profit group Ceres has found 50% of four major global indices are exposed to medium to high water risks, as it launches an online water risk toolkit for investors.
Using ‘water footprinting’, Ceres has assessed water risk exposure of the S&P 500, MSCI World, MSCI Emerging Markets and Russell 3000. Water footprinting has many methods including assessing volumetric use of water by companies or assessing water risk by geography.
In this instance, Ceres has used SASB’s materiality maps to identify sectors and industries for which water and wastewater management is assessed as likely or not likely to be material. Each constituent in the indices is assigned a water risk exposure score of low, medium or high.
The analysis found that more that 50% of the components of the four indices are exposed to medium to high water risks. The MSCI Emerging Markets has the highest exposure to water risk.
Ceres also studi…