Diminishing water supplies and water quality could negatively impact a company’s cost effectiveness, disrupt operations, and threaten a companies’ license to operate. Reputation and brand value are also increasingly at risk especially as civil society see global brands as a platform for local concerns.
Companies will need to continue to make social responsibility as part of core strategy. In this way, corporations maintain the public’s trust, are given a license to operate and can gain a competitive advantage by implementing environmental strategies which will impact their bottom line positively.
Social Risk = Threat (Issue & Stakeholder Awareness) x Vulnerability
The Global Water Fund advices the business sector on risk analysis for business development and investment; corporate social responsibility strategies; water foot printing through supply chain; extensive market research on natural resources and emerging needs in new markets; emerging government regulations; competitor analysis; impact on local populations and environment; new partnerships with local communities; and the link between the food/energy/water nexus.