A group of 64 investment firms collectively managing almost $10 trillion in assets on Aug. 16 launched the Valuing Water Finance Initiative VWFI to push companies with a high water footprint to value the resource properly, to understand its potential to pose a financial risk and to adapt their strategy accordingly.
Among the 64 founding members of the VWFI are Fidelity International, Franklin Templeton, DWS, AustralianSuper and the California Public Employees’ Retirement System. The group is initially targeting 72 companies in the food, beverage, apparel and technology sectors, including Coca Cola, Anheuser-Busch InBev, Adidas, Lululemon Athletica, Apple, Alphabet, Kraft Heinz and Unilever.
The initiative, which was spearheaded by U.S.-based climate nonprofit Ceres and the Government of the Netherlands, is based on six major targets for companies. These encompass: water quantity and quality; ecosystem protection; universal and equitable access to water and sanitation; proper board oversight; and ensuring policy lobbying is aligned with sustainable water resource management.