BOSTON, MA — Although many consider water to be "free," its growing scarcity promises to carry a hefty price tag for the world's businesses and for those who have invested in them.

Unfortunately, the vast majority of large publicly traded companies are failing to adequately manage and disclose the risks they face from water scarcity, an issue that will likely become more acute as the world's population increases and the future impacts of climate change come to pass, according to new Ceres research.  

The nonprofit investor advocacy group released a report today evaluating the corporate water disclosure practices of 100 large companies, while also offering a roadmap for reporting water data in a way that is useful for investors and stakeholders.

"This report makes clear that companies are not providing investors with the information we need to understand risk and opportunities from water scarcity," Jack Ehnes, CEO of the California State Teachers Retirement System (CalSTRS), the nation's second largest public pension fund, said Thursday during a press conference to launch the report.

Ceres published "Murky Waters? Corporate Reporting on Water Risk" on the heels of guidance released by the U.S. Securities and Exchange Commission on how public companies disclose climate change risks. The SEC specifically refers to water issues, saying, "Changes in the availability or quality of water … can have materials effects on companies."

Many have begun referring to water as the "new carbon" because of its anticipated prominence as an emerging business risk. In response to increasing investor concerns over water, the Carbon Disclosure Project, which solicits greenhouse gas emissions data from companies on behalf of institutional investors, recently launched CDP Water Disclosure, adding to the growing list of impacts companies are being asked to report on. Coincidentally, the first Forest Footprint Disclosure report was released this week, evaluating how global companies are managing their forest impacts.

The new Ceres report found that some of the sectors most vulnerable to water stress were also the most advanced reporters. For example, the mining and beverage industry's received the highest overall points. As a whole, the homebuilding sector lagged.