Corporations in the Colorado River basin see water scarcity as a significant risk, according to the nonprofit CDP.
CDP surveys large corporations and cities to see how they’re protecting themselves from the consequences of climate change. The data is then shared with investors. In an analysis out this month, the firm looked at responses in key states, including Arizona and Colorado.
The roughly 25 responders in the Colorado River basin think water scarcity is a big risk to their bottom lines, but water quality doesn’t rate as high.
“Worse water quality combined with water scarcity leads to even more extreme water insecurity,” said Sara Law, a vice president at CDP. “Most companies are only seeing half of that equation at the moment.”
This matters now because the Trump administration is considering rolling back clean water protections for some wetlands and streams.
Law said companies might not fully account for the risk this poses to their own financial health. But those days are over.
“We’re not really in an age anymore where companies can say that they don’t understand how water scarcity, in terms of quantity and quality, can impact their bottom line,” Law said.