Why Water Risks Could Disrupt the Energy Transition
As global investment in low-carbon technologies accelerates, a critical constraint is emerging: water scarcity. Many of the technologies central to the transition, including green hydrogen and critical minerals, rely heavily on water across their value chains. Yet most companies are not disclosing enough about how water stress could affect their operations, supply chains, or long-term resilience. Our analysis of 524 companies active in water-intensive, low-carbon technologies shows that fewer than half report water-related risks, and only 26% link disclosure with mitigation actions and measurable targets.
This gap has direct implications for investors. Incomplete or inconsistent reporting can mask exposure to operational disruptions, supply-chain volatility, and location-specific water stress. At the same time, the data shows that when companies acknowledge water risks, they are far more likely to take action. This offers investors a clearer path to assessing corporate resilience and identifying potential blind spots. This report, produced in partnership with CDP, breaks down where disclosure is progressing, where it is lagging, and what it means for capital allocation in the next decade.
What you’ll learn:
- How water scarcity is becoming a material constraint for low-carbon technologies.
- Which technologies and regions show the largest gaps in water-risk disclosure.
- Why only 26% of companies achieve “best practice” water reporting — and what that means for investors.
- How risk awareness correlates with mitigation actions and water-related target-setting.
- Where upstream water risks, especially in critical minerals and EV supply chains, remain widely underreported.
- Practical steps investors can take to integrate water-risk insights into portfolio decisions and corporate engagement.
Download the report now and get a clearer view of how water scarcity could impact your portfolios.