Half Full or Half Empty?: A Set of Indicative Guidelines for Water-Related Risks and an Overview of Emerging Opportunities for Financial Institutions

These Guidelines are intended to support FIs in integrating WRR into their risk management processes by developing procedures to identify, assess and mitigate the material and reputational risks associated with water. The Guidelines aim to be: an indicative tool for FIs to review their portfolio exposure to water-related risks through ■■their clients and investments; a source of guidance for practitioners on sector breakdowns of likely water risks and ■■opportunities; a methodology for integrating the guidelines into existing due diligence processes;■■ a review of existing practice for FIs faced with water risks and opportunities and a ■■demonstration of how this can be improved. The Guidelines are a guide to FIs seeking to understand and mitigate their exposure to WRR when undertaking a transaction, rather than a comprehensive manual of the risks themselves. Similarly, the coverage of opportunities provides an overview of sectors and types of companies that are likely to benefit from growing demand, without providing an exhaustive list of areas of opportunity. New products and services are appearing in the sector constantly.

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Bibliographic Details
Main Author: United Nations Environment Programme
Other Authors: Economy Division
Format: Manuals, Guides and Toolkits biblioteca
Language:English
Published: 2007
Subjects:WATER, FINANCIAL INSTITUTIONS, AGRICULTURE, MINING, METALS, TOURISM, TRANSPORT INFRASTRUCTURE, OIL AND GAS LEASES, MANUFACTURING,
Online Access:https://wedocs.unep.org/20.500.11822/33562
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Description
Summary:These Guidelines are intended to support FIs in integrating WRR into their risk management processes by developing procedures to identify, assess and mitigate the material and reputational risks associated with water. The Guidelines aim to be: an indicative tool for FIs to review their portfolio exposure to water-related risks through ■■their clients and investments; a source of guidance for practitioners on sector breakdowns of likely water risks and ■■opportunities; a methodology for integrating the guidelines into existing due diligence processes;■■ a review of existing practice for FIs faced with water risks and opportunities and a ■■demonstration of how this can be improved. The Guidelines are a guide to FIs seeking to understand and mitigate their exposure to WRR when undertaking a transaction, rather than a comprehensive manual of the risks themselves. Similarly, the coverage of opportunities provides an overview of sectors and types of companies that are likely to benefit from growing demand, without providing an exhaustive list of areas of opportunity. New products and services are appearing in the sector constantly.