Study Reveals Critical Water Dependence Risks for German Companies Near Rivers

A recent study conducted by NABU and BDO highlights substantial water dependence among German companies located near rivers, exposing significant operational and sustainability risks. The analysis of 160 publicly listed companies found that over one-third are closely situated to rivers, with about 60% relying heavily on water for their business models. However, a concerning 'materiality gap' exists as around 34% of these companies fail to recognize water as a critical issue in their sustainability reporting.

This discrepancy points to insufficient awareness around water-related risks, which can jeopardize operations, supply chains, and long-term viability, especially in sectors such as chemicals and consumer goods where water is essential. The study stresses that water should not only be seen as an environmental concern but also as a key production factor and financial risk. Integrating water considerations into risk management allows companies to better mitigate impacts from climate-induced extreme weather and supply disruptions.

Moreover, the report advocates for natural, cost-effective solutions such as river and floodplain restoration to manage flooding and water risks effectively. It emphasizes collaboration between businesses and conservation organizations to protect river ecosystems and support sustainable industrial activity. This research underscores the urgent need for companies to close their reporting gaps and incorporate sustainable water management for resilience in an increasingly water-stressed environment.