Water scarcity is impacting the vitality of communities around the world. For businesses, it’s a significant constraint to growth. That’s why Ecolab, St. Paul, Minn., and Trucost Plc, New York, developed the Water Risk Monetizer, what is said to be the industry’s first financial modeling tool that enables businesses to factor water into decisions to for better and more responsible water use. The Water Risk Monetizer provides actionable information to help businesses understand the impact of water scarcity to their operations and quantify those risks in financial terms.
Free to businesses via a secure login site, the Water Risk Monetizer helps bridge the gap between market price and risk (based on scarcity) by quantifying the potential impact of water scarcity on a facility in monetary terms by calculating a risk-adjusted price comprising forecasted future water costs, risk-based premium and the potential cost or impact of water risks on a business. The model correlates local water scarcity for a specific facility based on economic variance, purchasing power, population and GDP forecast.