Stewardship at the Source - Driving water action across supply chains

CDP’s Global Water Report 2023: Stewardship at the Source makes a clear case that water risk is already a supply chain issue, not only an operational one.

Based on disclosures from 3,163 large listed companies, CDP finds 623 companies reporting supply chain water risks, with an estimated US$77 billion in potential financial impact—yet many firms still fail to integrate suppliers into assessments.

The report highlights that companies including suppliers in water risk assessments are seven times more likely to identify supply chain risks, and that about half of large buyers engage suppliers on water.

However, ambition lags execution: only 4% set global supply chain water targets, and just 5% offer supplier incentives, even though mitigation is significantly cheaper than the cost of impact.

The message is practical: stronger procurement requirements, better data, and supplier collaboration are now central to resilience.