Assessing water-related risks and impacts

Oct 3, 2023 | 1:00 PM - 2:15 PM
Conference Room CC12

There is growing recognition that the financial sector is materially exposed to water-related physical risks and this exposure is not fully captured by current risk-assessment tools. This leaves the financial system exposed to water-related risks, whilst at the same time, missing out on water-related investment opportunities. Water is at the heart of both climate change impacts and nature crises. In order to effectively address these crises, the financial system’s understanding of water-related risks needs to be strengthened. Moreover, it is becoming clearer that nature related risks, including water, have potentially significant macroeconomic implications, and that failure to account for, mitigate, and adapt to these implications is a source of financial stability risk. The aim of this session is to raise awareness on water-related risks, impacts and opportunities for investors. This session will include a discussion on the business case to investors for assessing water dependencies and impacts, recent developments in risk assessments tools used by financial institutions and rating agencies, and finally supervisory guidance on assessing water-related risks.