China’s water crisis is a pressing issue for both the country and its investors. The Chinese Ministry of Water Resources announced this week that the country spent over $148 billion on managing water resources last year.¹

Despite this significant investment, water scarcity remains a major concern. Over the summer, factories in southwest China had to suspend operations as rivers dried up. China uses around 600 billion cubic meters of water per year, which is 120 billion more than the US and 160 billion less than India.

Investors must be aware of the risks of lost production, as well as of fines and rising tariffs for water withdrawal, especially in water scarce areas.

GIST Impact tracks environmental data beyond carbon to form a complete picture of the environmental risks of a company’s operations. We calculate our models for water usage have 85% accuracy compared to just 3% for a model using revenue and sector, which is the industry-standard modelling method.

If you would like to know more about water usage at the company level and about our modelling of undisclosed environmental metrics, contact us today. Alternatively follow us on LinkedIn to stay updated on the latest insights in impact measurement and sustainability: GIST Impact: Overview | LinkedIn

1. Don’t Forget About Water in 2023 – Geopolitical Futures: https://geopoliticalfutures.com/dont-forget-about-water-in-2023/