Industries most exposed to water-related risks

AXA XL, a subsidiary of the AXA Group specializing in large corporate risks, has conducted a study that identified the main sectors most exposed to water-related risks:

These include the following seven areas of activity:

• Food, beverage and agriculture
• Apparel and textiles
• Utilities
• Manufacturing
• Technology and electronics
• Healthcare and pharmaceuticals
• Transport and logistics

These industries can be impacted by three types of water-related risks. They are mainly:

• physical risk: water scarcity, climate change, poor water quality, flooding, pollution and poor water resource management,
• regulatory risk: rising water prices, regulation of the quantity and quality of effluents, legal limits on water withdrawal, etc.
• reputational risk: negative media coverage, public scrutiny, loss of market shares due to litigation and brand damage.

In order to support and help companies manage these risks, the AXA XL report suggests several solutions. These include defining targets for reducing water consumption and pollution as well as planning for future scenarios.