S&P Global – Big Picture Sustainability, 2024

The introduction highlights the increasing problem of water stress and its impact on policymakers and businesses. It states that recent extreme climate events have emphasized the importance of water as a global resource. The article predicts that severe weather patterns will continue to affect populations, economies, and industries reliant on water. It also mentions that the El Niño climate pattern will significantly impact the world in 2024. Several regions, including Mexico, southern Argentina, India, the Middle East and North Africa, southern Africa, Spain, Italy, and Australia, are projected to experience pronounced water stress. The management of water stress is expected to become increasingly important for policymakers and the private sector in the next decade. It may lead to environmental activism, disruption in operational and supply chains, and legal action against heavy water consumers and polluters. Companies will need to be prepared for increased scrutiny of their water use, not only from regulators but also from local communities. The article also highlights that water stress will play a crucial role in business investment decisions, particularly in manufacturing and countries' plans to diversify their economies.