Financial Sector Water Action Platform
Financial institutions (FIs) including banks, insurers, asset owners and asset managers hold a key to positive change because of their reach, power and influence. To address global challenges of the scale and magnitude of the water crisis, we must transform how financiers assess and mitigate water impacts and risks.
The 2023 UN Water Conference marked a turning point for improving the political will for ambitious water action from governments. As part of this, with support from the Valuing Water Initiative, CDP has initiated the ‘Water Action Agenda for Finance’ with the goal of aligning financial flows to achieve a water-secure world.
Launched in 2022 and based on CDP financial sector’s unique water-related disclosure, this open platform showcases that action is already underway amongst private sector financial institutions. This tool is a means to understand and consistently monitor annual progress against a set of indicators based on the Finance Water Action Pathway. It aims to provide the evidence for policymakers and regulators to support the creation of more effective policy responses.
Disclosed information on the selected set of indicators indicates progress from 2022. However, despite the encouraging rates, organizations in the finance sector need to step up and use their power to address the water crisis by leveraging water-conscious investment, insurance, lending and underwriting practices to drive fair water use and incentivize action across boundaries.