Investor brief examines water risk associated with the cotton supply chain

Water scarcity is an urgent global issue being exacerbated by climate change and a growing population. By 2030, the world will face a 40% deficit in water supply under business-as-usual scenario predictions. Climate change-related weather patterns, growing populations and rising water demands from competing users all contribute to this escalating large-scale challenge.

Although water scarcity is widely acknowledged as a concern, few businesses have made significant progress in tackling the issue of supply chain water risk. On the occasion of World Water Day, SHARE is releasing its newest investor brief, examining water risk associated with the cotton supply chain. The report draws attention to potential negative environmental impacts associated with cotton as a supply chain input, including depletion of water availability and pollution of water resources.

Companies that rely on a stable supply of cotton as a primary input to their products must get serious about addressing supply chain water risk. Water scarcity and declining water quality can impact the price and availability of cotton at each stage of the supply chain, which can in turn affect the business bottom line for the retail sector. SHARE’s report outlines how companies can better understand water usage and impact in their supply chain as well as take steps in order to manage these risks.

Download the full report here.

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