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"Supply Chain Management"
Supply chains face disruption as water levels fall, report claims
Supply chains across the world could be disrupted by a scarce supply of clean water, a new report has claimed.
The JP Morgan Chase study also warns that assessing the risk posed by the problem is near-impossible due to a lack of adequate information.
“The politics around water are inseparable from the economic issues,” Marc Levinson, one of the analysts leading the report, told the Financial Times.
“Companies could get permits revoked, or lose access to water in other ways. Yet the appropriate disclosures are not available. What is published, usually in environmental reports, is often not at all relevant to determining these risks to companies.”
Projections from the World Resources Institute indicate that river basins in the US, Mexico, western Europe and China will face severe problems by 2025, with the shortages felt most keenly in South Africa, northwestern India and north China.
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