More companies are citing water scarcity as a financial risk in regulatory filings

As climate change stokes extreme weather events like droughts, flooding and wildfire, another concern is emerging for companies and their investors: the cost and dwindling supply of water.

More companies are listing water security and scarcity among risk factors in regulatory filings and investor calls. Globally, firms cited water 43% more in 2020 than in 2019, a June report from investment bank Barclays found, citing comments gleaned from thousands of transcripts. "It's a concern that is becoming an area of focus for many of our clients," said Michael Littenberg, a partner at the law firm Ropes & Gray who advises companies on Environmental, Social and Governance issues, known as ESG.