1. Is water a global risk?

2. Is water an obvious risk?

3. US Baseline Water Stress and Power Plants

4. Change in US Water Stress by 2025 and Power Plants

5. 47% of fracked wells were found to be in river basins with high or extremely high risk of water stress

6. South East Asia Baseline Water Stress and Power Plants

7. South East Asia Change in Water Stress to 2025 and Power Plants

8. The Water / Coal Relationship in China

9. Water-Food Global Risks Agriculture often uses 70%+ of blue water, but with a low contribution to GDP – the economic competition for blue water will consequently increase: we will need much more crop with many less drops By 2025, annual grain losses due to water stress could be equivalent to 30% of global cereal consumption

10. Global Baseline Water Stress c. 2000

11. Global Water Stress 2025

13. Infrastructure Investment Gap: the biggest chunk is blue Water Infrastructure is the largest “green growth” Investment requirement This is just for investment in water and wastewater services When risks are looked at more holistically, can water systems for agriculture, energy and cities be smartly re-imagined? Is there a major market to make? Qatar placing 2-3% of its GDP into R&D in this space

14. Financial Risk and Financial Opportunity A Financial Risk A choke point on economic growth for some countries A resource risk for some sectors in some countries: agriculture, energy An infrastructure risk for potential investors A material and political risk to the operations of key clients who are large water users A public governance risk – who is on top of the issue in a given jurisdiction? A corporate governance risk – who is on top of the issue in the enterprise? An irrational risk – water is emotive and unlikely to be ever rationally priced A dynamic risk – trends of climate change or overuse will make matters worse A Financial Opportunity All activities need water – it is a non-transferable, non-substitutable resource More water will be needed: growing economies are thirsty There will be location specific demands and challenges There are proven technologies Key clients of banks and investors are acting, but seek support especially for the long term The initiative A BANKING WATER INTIATIVE to help meet the demands of large water using clients

15. Contact Dominic Waughray World Economic Forum dominic.waughray@weforum.org World Economic Forum 15