By Sarah George

Copyright edie

CDP has this week confirmed that some 8,500 large companies disclosed water-related information for 2024 through its platform – a 100% year-on-year increase.

These companies collectively foresee around $339bn in negative financial impacts from water-related risks through to 2030. These include droughts, pollution and water shortages due to over-abstraction.

Seven in 10 of these companies have already started mapping water across their value chains.

But only one-quarter have begun mapping suppliers beyond Tier 1 – direct suppliers.

Moreover, only one-fifth disclose that they have begun directly engaging with their suppliers on water issues.

CDP is warning that this leaves substantial vulnerabilities hidden in global value chains, particularly in water-intensive industries such as agriculture and semiconductors.

It is urging businesses to enhance their water risk mapping and supplier relationships. Another intervention it is advocating is the use of internal water pricing. Only 5% of the companies disclosing through CDP took this approach in 2024, and around 40% simply applied the external tariff.

“Internal water pricing is not a silver bullet, but it is a key piece of the puzzle,” said CDP’s head of water, Joe Ray.

“Combined with risk assessment, supply chain engagement and oversight of water issues at Board level, it helps businesses to close the price-value gap and unlock new opportunities. Water must be seen not as a cheap commodity, but as a critical resource essential to business resilience.”

Lessons from fashion and beverage manufacturing

Hosted in Stockholm under the theme of ‘Water for Climate Action’, August 2025’s ‘World Water Week’ convened policymakers, water professionals, researchers, businesses and water systems experts to respond to the most pressing climate-related water challenges.

edie’s latest Sustainability Uncovered podcast provides a flavour of World Water Week in brief, focusing on the ways in which businesses in industries highly exposed to water risks are planning ahead and taking action today.

The podcast includes insights from Kering’s head of sustainable sourcing and nature initiatives, Rachel Kolbe Semhoun.

Kering, the French multinational luxury house behind iconic fashion and lifestyle brands including Gucci and Yves Saint Laurent, recently published a sweeping new water strategy.

The new strategy goes beyond improving water efficiency and focuses on regeneration and replenishment. It envisions a future in which Kering delivers a net-positive impact on water systems by 2050.

This edie podcast also includes insights on water-efficient beverage manufacturing and grain supply chains, from Carlsberg Britvic and Fielden, Whiskey of England.