CDP has published an analysis of water disclosures from more than 6,500 companies, identifying USD 397 billion in anticipated financial impacts from disruption, regulatory risks and capital expenditure requirements. Companies reported a further USD 1.4 billion in current impacts, but only one-fifth quantified their exposure and more than one-third lack a systematic process to assess and manage water risks. Supply chains account for USD 45 billion of the anticipated impacts. Among companies headquartered in the Global North, about 60% of upstream water risks are located in the Global South, creating exposure to water-stressed regions beyond companies’ direct control. CDP cautioned that reshoring and nearshoring could replace geopolitical dependencies with water-related vulnerabilities if resource availability is not incorporated into location and sourcing decisions. Companies also reported USD 35 billion in water-related opportunities already producing substantive financial or strategic effects and a further USD 925 billion anticipated. Capital markets’ assessment of these issues remains limited, with 54% of financial institutions evaluating portfolio exposure to water-related risks and opportunities in 2025.

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