Water-related risks and opportunities are becoming increasingly important for our investments and is one of our focus areas. The water supply crisis has been identified as the greatest risk to society over the next decade. From California to China, competition for scarce water resources is already causing business disruption, brand damage and, in the worst cases, loss of the license to operate.

 

Disclosing and sharing information enables companies and investors to better understand the risk exposure of a company

As part of our stewardship activities Nordea is an active member of CDP, a global disclosure system that encourages companies and cities worldwide to manage their environmental impact by measuring and disclosing their climate change, water and forest-risk data.

Disclosing and sharing information enables companies and investors to better understand the risk exposure of a company and the right level of the management and governance responses to these and also increase resiliency to water challenges and value destruction.

CDP brings together 655 institutional investors and purchasers with a combined asset holding of more than USD 100 trillion. In 2016, over 5,600 companies responded to CDP’s climate change, water, forests and supply chain questionnaire.

A wide collection of data

We use this database information – the most comprehensive collection of self-reported environmental data in the world – in our ESG analysis and investment decision-making.

We joined the CDP’s Water Advisory Council in 2015. We have also been involved in collaborative company engagements together with CDP and other investors.

You can read more in the World Economic Forum's 2016 Global Risk Report.