Around the world, businesses are experiencing adverse physical effects of climate change, from increased operational costs and disrupted production to social unrest in communities in which they operate. These impacts are most prominently expressed through changes in the water cycle, including precipitation shifts and extreme drought.

To build resilience to a changing climate and thrive into the future, businesses will need to adequately consider, mitigate, and adapt to the water-related risks of climate change to their core operations, their local communities, supply chains, and broader networks. Towards this end, this discussion paper summarizes the existing literature on the physical water-related risks of climate change to businesses, and provides actionable examples of how businesses can address these risks and create corporate water adaption and resilience.

The paper was produced by the Pacific Institute, in partnership with the UN Global Compact’s CEO Water Mandate, which the Pacific Institute serves as Co-Secretariat for, along with CDP, Suez, and WBCSD.