Water is essential for life, but it is also a scarce and vulnerable resource that faces multiple threats from climate change, pollution, overexploitation and mismanagement. As the article by Gabrielle See highlights, water-related risks are not only a concern for the environment and society, but also for the bottom line and reputation of businesses across various sectors. 

In Asia, where water stress and variability are projected to worsen in the coming decades, water-related disclosures are becoming a growing priority for listed companies, especially in the booming semiconductor and data center industries that rely heavily on water for cooling.  Regulators, investors and customers are increasingly demanding more transparency and accountability from businesses on how they manage their water impacts and dependencies, both within their direct operations and along their value chains. 

However, as the article points out, the current state of water-related reporting in the region is still patchy, with many gaps in data quality, scope and alignment with international standards. While some leading companies have set measurable targets and disclosed their water performance, many others have yet to catch up with the rising expectations and best practices.

This is a missed opportunity, as water-related disclosures can provide valuable insights and benefits for both businesses and investors. For businesses, disclosing water-related risks and opportunities can help them identify and address potential sources of disruption, inefficiency and liability, as well as enhance their resilience and competitiveness. For investors, disclosing water-related information can help them assess and compare the financial and environmental performance of companies, as well as integrate water-related factors into their decision-making and engagement strategies. 

Given the looming threat of water scarcity in the region, more businesses in Asia should be encouraged to assess their water risks and prepare water-related disclosures. By doing so, they will not only comply with regulatory requirements and meet stakeholder demands but also contribute to the sustainable management and stewardship of this precious and limited resource.