Internal Water Pricing Unlocks Resilience and Long-term Growth, Reveals New CDP Insights
New data highlights untapped potential for valuing water in corporate planning
US $339bn in water risks reported globally with US $58.7bn needed to mitigate them
Early movers are paving the way with 21% of companies now engaging suppliers on water issues
London, September 17, 2025: Companies are standing at the edge of a trillion-dollar opportunity: by accurately valuing water to support corporate decision-making, they can safeguard against billions in risks while unlocking long-term growth. CDP, the world’s largest independent environmental disclosure platform, saw a 100% increase in water disclosures in 2024, showing how rapidly awareness is building. Yet the data reveals that companies are undervaluing water in internal pricing models: a missed opportunity to invest in supply chain resilience, innovation, and future prosperity.
Companies are reporting US$339 billion in potential financial impacts linked to water-related risks, highlighting the need for greater preparedness and long-term security. These risks are intensifying: UN data shows that by 2030, global demand for freshwater is expected to outstrip supply by 40%.
Despite mounting evidence of the business case, the adoption of internal water pricing, where businesses assign a financial value to water to support decision-making, remains low. From over 8,500 companies disclosing on water in 2024, just 426 (5%) reported having an internal water price, and only 290 (3%) of these went beyond simply applying the external tariff. By comparison, 2,097 companies already use an internal carbon price, highlighting a significant gap in how water risks and opportunities are factored into financial planning compared with carbon.
This shortfall in valuing water comes at a significant cost. The estimated US$339 billion impact of water-related risks could be mitigated with US$58.7 billion in expenditures, a six-to-one return on investment.
Gaps in supply chain visibility are another challenge. While 70% of companies disclosing on water are taking steps to map their value chain, 73% of these only map Tier 1 or direct suppliers. That leaves substantial vulnerabilities hidden in global value chains, particularly in water-intensive industries such as food and agriculture, textiles, and semiconductors, where water is a fundamental input but often embedded deep in supply chains. Closing these gaps would unlock enormous upside. Companies reporting through CDP have identified US$1.4 trillion in water-related opportunities, showing that tackling risks also unlocks returns across the value chain.
Just 21% of companies engage with their suppliers on water issues, but these early movers are setting the benchmark. They go beyond mapping by working with suppliers to set water-related KPIs in contracts, build capacity, and even introduce financial incentives for strong performance.
Supply chain blind spots can pose significant challenges as demand for water accelerates. The rapid expansion of AI-driven data centres alone could consume up to 1,200 billion litres of water annually by 2030. Already 27% of companies disclosing on water report withdrawing from water-stressed areas, showing how scarcity is shaping corporate strategy.
Sectors most exposed to water-related risks and with the greatest potential upside from action include manufacturing, materials, and food, beverage & agriculture. These industries reported US$204 billion in combined opportunities, tied to water efficiency, reuse technologies, and resilient supply chains.
“The gap between the cost of water and its true value to business does not match the expectations for growth. Carbon pricing has already helped companies understand risks and opportunities; now we need the same clarity for water,” said Sherry Madera, CEO of CDP. “By harnessing Earth-positive data, businesses can unlock insights that build competitive advantage, strengthen resilience, and get ahead of emerging challenges. This is not just about risk management. It is about creating value that benefits companies, society, and the planet.”
Joe Ray, Head of Water, CDP added: “Internal water pricing is not a silver bullet, but it is a key piece of the puzzle. Combined with risk assessment, supply chain engagement and oversight of water issues at Board level, it helps businesses to close the price-value gap and unlock new opportunities. Water must be seen not as a cheap commodity, but as a critical resource essential to business resilience.”
The findings come ahead of Climate Week NYC 2025, where CDP will host a flagship event on accelerating AI and its implications for water and resilience. CDP and Watermarq will also release a technical paper highlighting the state of the market when it comes to internal water pricing methodologies.
With nearly 25,000 companies representing two-thirds of global market capitalisation now disclosing through CDP, the evidence is clear: businesses that use data to measure and manage their water risks are better placed to secure returns, safeguard resources, and unlock long-term value.
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Notes to Editors
An internal water price is a metric that reflects the economic value of water to an organization, beyond the market price paid to water utilities. It is intended to help address the cost-value gap of water for business, where water consumption costs are low but the value dependent on that water is high. It accounts for various costs associated with water use, such as environmental costs, and helps companies make informed decisions regarding water management, investment in water-saving technologies, and understanding risks related to water scarcity and quality.
About CDP
CDP is a global non-profit that runs the world’s only independent environmental disclosure system. As the founder of environmental reporting, we believe in transparency and the power of data to drive change. Partnering with leaders in enterprise, capital, policy and science, we surface the information needed to enable Earth-positive decisions.
We helped more than 24,800 companies and almost 1,000 cities, states and regions disclose their environmental impacts in 2024. Financial institutions with more than a quarter of the world’s institutional assets use CDP data to help inform investment and lending decisions. Aligned with the ISSB’s climate standard, IFRS S2, as its foundational baseline, CDP integrates best practice reporting standards and frameworks in one place.
Our team is truly global, united by our shared desire to build a world where people, planet and profit are truly balanced.
For more information, or to arrange interviews, please contact:
Samika Meshram-Jasinski (samika.meshram@cdp.net)
George Bush (george.bush@cdp.net)