A key 2017 report by Ceres highlighted the industry’s water risks while identifying how investors can push companies toward better water-management strategies.
“Feeding Ourselves Thirsty: Tracking Food Company Progress toward a Water-Smart Future” analyzed how 42 major food and beverage companies are addressing water risk.
Meanwhile, $198 billion is considered subject to the effects of climate change on crop production.
What Is Water Risk?
With agriculture accounting for roughly 70 percent of global freshwater withdrawal, these factors pose serious material risk to food companies’ financial performance.
A group of investors with a collective $1 trillion in assets – all members of the Ceres investor network – issued joint letters to four of the meat industry’s largest producers, pressing the companies to address the water-related risk associated with feeding, slaughtering and processing livestock.
We couldn’t just say, ‘We should have a water-reduction target.’” Instead, ACTIAM has focused on setting goals regionally.
“Find a way that you can integrate that locality of the issue into your strategy.” Addressing Risk at the Local Level Matt Howard, director of the Alliance for Water Stewardship North America, said local solutions are important.
He said the food and beverage industry’s complex global supply chains are one key challenge.
Roberts said Ceres will also publish another update to the report in 2019 to track progress and identify where gaps remain.