Water Scarcity: A Global Crisis

Water scarcity affects almost every continent and more than 40 percent of the people on our planet. Water scarcity, or lack of fresh-water access is beginning to impact every sector of business and industry.

1

By 2025, 1.8 billion people will be living in countries or regions with absolute water scarcity, and two-thirds of the world’s population could be living under water stressed conditions.

2

Water risks are rapidly materializing for business: Disclosing companies reported US $14 billion in water-related impacts this year, a five-fold increase from last year.1

3

Over a quarter of companies have experienced detrimental impacts from water, and companies expect over half (54%) of the 4,416 water risks they identified to materialize within the next six years.2

1Information Provided by United Nations research on water.
22016 CDP Survey: 1,252 of the largest companies (on the MSCI All Country World Index) on behalf of 643 investors representing $67T assets.

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In 2020, the World Economic Forum indicated water scarcity risks were as dangerous as Weapons of Mass Destruction, but more probable.*

Greatest Threat 2016 2017 2018 2019 2020
1st Climate Action Failure Weapons of Mass Destruction Weapons of Mass Destruction Weapons of Mass Destruction Climate Action Failure
2nd Weapons of Mass Destruction Extreme Weather Extreme Weather Climate Action Failure Weapons of Mass Destruction
3rd Water Crisis Water Crisis Natural Disasters Extreme Weather Biodiversity Loss
4th Involuntary Migration Natural Disasters Cliamte Action Failure Water Crisis Extreme Weather
5th Energy Price Shock Cliamte Action Failure Water Crisis Natural Disasters Water Crisis

*www.weforum.org/reports/the-global-risks-report-2020

“Water as an asset class, in my view, will eventually become the single most important physical commodity – dwarfing oil, copper, agricultural commodities, and precious metals.”

– Willem Buiter, Chief Economist, Citigroup

By 2050, the world will need to feed an estimated two billion additional people.

As water becomes increasingly regulated and scarce – some estimates indicate industrial and residential water will become a $3.0 Trillion (USD) industry.

The National Geographic Society

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