Free Tool Quantifies Water Scarcity Risks for Businesses
In a time when we’re experiencing an increasingly drier climate, with a booming population and growing demand on water supplies, water scarcity is a very real risk, not only to individuals and communities, but also to businesses that require water in their operations.
Water is all too often undervalued and the market price is very different from its true costs, especially for businesses. Because of this, the forecasted financial risks to businesses that depend on regular access to clean water may not be accurately accounted for, as the potential impacts of water scarcity could be much higher than thought. To enable businesses to make better decisions when it comes to water-related risks, Ecolab and Trucost have developed a free online tool that quantifies those risks by calculating risk-adjusted prices for future water costs.
The Water Risk Monetizer, which is said to be the first modeling tool of its kind that allows businesses to factor water scarcity into their operations by quantifying them into financial terms. The scientific model used for the tool takes into consideration a number of variables that can impact a facility’s water risk, including local water scarcity, and returns a financial assessment of water risks, calculated for 3-, 5-, and 10-year projections, thereby helping to identify the ‘real value’ of water to their operations.
“The Water Risk Monetizer provides companies with a robust, but easy-to-use way to put a price on their use of water which reflects its true value to sustaining natural capital. Companies can then take focused action at a strategic and operational level to reduce risks through more informed water efficiency, procurement processes and site location decisions.” – Richard Mattison, CEO of Trucost.