The water crisis threatens global supply chains as never before, according to new research from CDP, the global non-profit that runs the world’s environmental disclosure system.

The findings come from the most extensive ever analysis on how companies are responding to water security, based on record-high disclosure numbers.

The report focuses on 3,163 large companies with an annual revenue of more than EUR/ US$250 million. These companies disclosed to CDP’s annual water security questionnaire in response to a request from investors, in 2023.

A total of 1,542 companies – 50% – responded that they are engaging their supply chain on water risks. This includes inserting water requirements into supplier contracts, collecting water data, raising awareness of water issues, or collaborating on innovation.

Key findings:

• At least US$77 billion under threat due to water risk in supply chains.Almost US$7 billion at immediate risk.
• 50% of large corporate buyers now engaging their supply chain on water issues.
• 118 global brands offer financial incentives to chief procurement officers to act on water.