“Let’s use a hypothetical example. You run an apparel company, and the areas where the majority of the world’s cotton is grown are experiencing droughts; several problems may arise. The price of cotton could rise, the amount of cotton you can source may be limited, or your main source of cotton may no longer be available because farmers can’t plant their crop. What happens to your company if it can no longer find enough cotton, or to your profit margins if the price of cotton rises dramatically? Cotton as a crop is highly susceptible to water shortages and yet most of the production occurs in water scarce regions of the world: China, U.S. (primarily Texas and California), India, and Pakistan. If the governments in countries where cotton production occurs, decide they need the water for food production instead, your company will have suffered the next type of water related risk.”

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think water scarcity isn’t a risk for your company?

think again.