This research analyzes the private sector's role in sustainable water management and the development of more resilient production systems, linking water security, climate change, production systems, and competitiveness. Climate projections for the Mediterranean indicate worsening risks of drought and water stress, alongside increased exposure to extreme weather events and flooding. The study therefore examines the role of businesses in risk assessment, governance, and investment, while also gathering corporate experiences and practices.
The findings highlight two key messages:
1) Water is becoming increasingly important to businesses, yet it is not yet fully integrated into economic decision-making: among the more than 8,500 companies reporting to CDP Water, only 5% assign a monetary value to water in their decision-making processes, compared to nearly one in four for carbon;
2) Water security is closely linked to competitiveness and the transformation of production systems. The growth of sectors strategic to the energy and digital transitions—including semiconductors, data centers, hydrogen, renewables, and batteries—will drive up water demand, making it essential to integrate water-related risks into investment planning and corporate strategies.