Economists See Water Crises As Greater Risk Than Weapons, War, Disease

Economic experts say water crises would have the most harmful impact on global stability compared to any other type of threat, including wars, infectious diseases, and weapons of mass destruction.

That's according to the World Economic Forum's (WEF) Global Risk Assessment for 2015. "In looking at global risks in terms of their potential impact, the nearly 900 experts that took part in the Global Risk Perception Survey rated water crises as the greatest risk facing the world," the forum announced.

These risks are not news to the business sector. "Recent events have concentrated investors' attention on the problems that water scarcity could pose to companies and portfolios. From California to Asia and South America, many regions of the world are suffering serious droughts," Institutional Investor recently reported.

According to Piet Klop, a senior adviser at Dutch pension fund manager PGGM, water risk "has definitely moved from what used to be an NGO concern to something that is now about ready for prime time and mainstream investor interest."

Investors want companies to release more data about their exposure to water risk.

"Klop points out that few companies are willing to even disclose the exact locations of their production facilities or those of their main suppliers, which would allow investors to begin mapping corporate water security risks. He believes identifying a company's or a portfolio's risk level must start with lobbying businesses to be more transparent about water use," the report said.

A growing number of businesses have released broad information about water risk exposure in recent years. Environmental think tank CDP published a survey that showed "two thirds of the world’s largest companies — including Merck, Unilever and H&M — are reporting exposure to water risks, some of which have potential to limit growth, according to CDP’s latest annual global water report," Environmental Leader reported.